Supply Chain Logistics – Chapter 1 Practice Flashcards

These question-and-answer flashcards cover key concepts, roles, processes, metrics, trends, and terminology from Chapter 1 of the MSSC Supply Chain Logistics foundational text.

What are the four basic forms in which inventory is typically held within the supply chain?

Raw materials, Work-in-Process (WIP), Finished goods, and In-transit products.

Who ultimately drives the entire supply-chain logistics process?

The customer.

Name two common entry-level frontline logistics jobs and their approximate starting salary.

Material movers or packers/freight handlers; about $35,000 and up.

Which three industry certifications are often required or helpful for entry-level logistics positions?

OSHA 10-hour Safety Card, Forklift Operator Certification, and MSSC Certified Logistics Associate/Technician (CLA/CLT).

What salary range is typical for an operations manager in logistics?

Around $70,000 per year.

List the four basic functions of a warehouse or distribution center.

Receiving, stocking, order processing, and shipping.

In receiving, what document is used to verify correct quantity and quality?

The bill of lading.

Why is the receiving function considered critical in logistics operations?

Errors made in receiving often flow through the rest of the material-handling chain, affecting accuracy and cost.

Give three best-practice guidelines for a customer-centric approach to order fulfillment.

Fill orders accurately and on time, fulfill special requirements precisely, and treat each order as if it were your own.

What is meant by ‘supply’ in logistics?

Sourcing and building product inventory to established targets based on customer needs, including supplier contracts, purchase orders, and on-time arrivals.

Define ‘stocking’ in the context of a warehouse.

Assigning products to their proper location or directly to staging (cross-docking) for quick release and shipping.

What is cross-docking?

Moving items directly from an incoming trailer or container to an outgoing one with little or no storage time.

What activity is at the core of most distribution-center designs?

Order processing (picking).

Name three common picking methods.

Full-case picking, repack picking, and bulk / pallet picking.

Who usually determines shipping methods such as carrier selection and palletization?

The customer.

Why is loading considered the ‘last chance’ to check an order?

Because the staging/loading area is the final point before the customer receives the product, making it ideal for audits.

State the five basic modes of transportation carriers in logistics.

Truck, air, rail, water, and pipeline.

What is the main role of transportation in supply-chain logistics?

To physically connect sources of supply with customers while meeting specified delivery times safely and cost-effectively.

Explain the concept of shared responsibility in the supply chain.

Each link is interdependent; a weak link at any stage affects the strength of the entire chain.

List three global or economic trends increasing the importance of supply-chain logistics.

Rising global competitiveness, adoption of advanced computer-based technologies, and growth in international trade/Internet commerce (plus rising transportation costs and higher customer expectations).

Give two reasons distribution centers are more vital than ever before.

Need to handle/store more items and perform smaller transactions more often (plus customization, value-added services, returns, and international orders).

What two simultaneous pressures do modern logistics operations face regarding order processing?

Less time to process an order and a smaller margin for error.

Why do companies measure cost and performance at every logistics stage?

To continuously reduce cost while improving service and competitiveness.

Define ‘order-cycle time.’

The time from receiving a customer order to delivering that order, a key customer-service metric.

List four common warehouse productivity metrics.

Units per hour, line items per hour, cases per hour, pallets per hour (and labor cost per case).

Provide two typical transportation productivity measures.

Cartons delivered per mile and total cost per mile (also cost per stop, cost per carton, trailer utilization, on-time delivery).

Why must quality take precedence over throughput in logistics productivity?

High productivity is meaningless if products are wrong or damaged when they reach the customer.

At what salary level might a director of distribution operate?

Approximately $150,000 per year.

What are the top two factors that Logistics Management magazine readers cited for job satisfaction in 2021?

Feeling of accomplishment (57%) and benefits (46%).

Which warehouse activity includes identifying goods, inspecting quantities, and dispatching items to storage?

Receiving.

What is the definition of ‘supply chain’ provided in the notes?

The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.

What does ‘packaging’ aim to do in logistics?

Protect items from damage during transportation; the packaging type influences the risk of damage.

Explain why distribution centers may serve as final product assembly points.

To reduce inventory via just-in-time practices, handling assembly, testing, cutting, labeling, or returns before shipping to customers.