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Describe the importance of system analysis in logistics?
• Planned observation of one or more segments in the logistics network
• Time motion study for incoming freight
• Can be nation wide or on a global scale
• Observation provide data that are subject to statistical analysis
What are the strength + weaknesses of system analysis as applied in logistics?
• Strength- simulating real conditions to determine how well the current systems respond to various happenings
Why are outside consultants frequently employed to analyse a firms logistics practice?
• Bring new outside viewpoints
• Broader perspectives on most problems
• More neutral than an inside person
Why is it important to specify clearly the objectives of a study?
• To establish building blocks
• Difficult to measure systems overall performance without measuring and understanding the performance of the various components?
What are system constraints?
• Involve factors in the system that cannot be changed
• Each system constraint simplifies the situation because it reduces the number of alternatives to be analysed
What is the difference between pilferage and theft?
• Pilferage internal theft
• Theft is conducted on an organised basic by outsiders for the reason of resale
Describe how the Tachograph functions?
• Recording instrument that is installed inside the vehicle for time recording of the truck, it’s speed and engine speed stand down time
Why are serial numbers and batch numbers important?
• The possibility of defective products and product recall increases the need to positively identify each product or batch at it leaves the assembling line with a batch number
• Office machine contain serial numbers, and the move through a distribution system is recorded
What kind of accounting controls are used in logistics?
• Budget are a form of control called “Accounting Control”
• Manager assemble a proposed budget to indicate how much money is needed to carry out various planned logistics tasks
• After budget has been approved it becomes a control tool
Describe the various stages through which a company may go as it develops it’s logistical organisation?
• Organisation of the study team
• Data collection
• Product audit
• Existing facilities audit
• Vendor audit
• Customer audit
• Channel audit
• Competition audit
• Environmental audit
Who is linking pin person? What opportunities and problems does this organisational alternative present?
• Individuals assigned to ensure co-ordination among logistics activities
• Linking pin belong to or more departments. Difficult to establish “Who is the boss”
What is the difference between centralised and decentralised logistics departments? Which is more desirable?
• Centralised logistics maintain a single logistics department
• Decentralised logistics decisions are made separately at the divisional group level often in different geographic regions
• Both are functional when employed by the respective logistics environment
Discuss the advantage of unified logistics department
• Combines all functional areas of logistics into one department
• Approach is best become of close coordination among traffic, warehousing, inventory control and production
What is supply chain integration?
• Having various parties enter into a carry out, long term, mutually beneficial agreement
• All this is done within the firm’s overall strategy
In what ways does international logistics differ from domestic logistics?
• More complex in regards to research, marketing, distribution ,payment guarantee, delivery time.
What are some of the documents required in international trade?
• Invoice, export license, L/C, Packing list, B/L, certificate of origin
Why is international freight forwarders needed?
• Issues docs, shipping arrangements, monitor movement, customs clearance, export clearance, arranging insurance
Why should international shipment be insured?
• Higher risk of loss plus non recovering
What function do import brokers perform?
• Customs clearance
How is L/C used in international trade?
• Guarantee for payment
Why do Government exert considerable control over international trade?
• Protect local industry
• Control non permitted items
• For revenue
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