Thursday, July 12, 2012


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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

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• 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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