ib test chapter 8

yu

logistics

 the acquisition transportation and storage of materials from the point of origin to the point of consumption

production logistics

 logistic processes within a company usually a manufacturing business

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Business logistics

is responsible for a steady flow of needed materials and information through a network of computer terminals transportation links and storage facilities that move raw and finished materials through all parts of a business

supply chain

the sum total of all activities involved in moving the materials processed goods and finished products into an organization to reach the end consumer

an example of vertical integration

 when a business owns all or a good portion of its supply chain

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horizontal integration

 when companies expand by acquiring competitors 

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third party logistics

 when companies outsource supplier coordination and distribution functions two logistic companies that can perform these activities better or more cost effectively

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what does successful logistics do?

Get the right item to the right place at the right time in the right quantity and right price

 what does production logistics ensure?

That each machine and workstation in a plant has the right material in the right quantity and time

what is the main goal of production logistics?

 to increase efficiency and production rates maximizing a factories output while maintaining product quantity

What does production logistics focus on/place little emphasis on?

 Managing inventory and quality control with little emphasis on transportation

Why did napoleon's Russian campaigning fail?

He pursued the Russian retreating armies far beyond the reach of his supply wagons the Russian people destroy their food as they retreated so that the French couldn't use it French had to eat their own horses without horses they could not move the cannons and thousands of military gear

How has McCains described as being vertically integrated?

It bought a trucking company to transport potato from farms to its plant and frozen fries from plant to retailers

Why was George Weston lamented once described as being vertically integrated?

It once owned its full supply chain for a cloverleaf tuna fishing fleets canning factories transportation companies packing companies and retail stores controlling the entire supply chain of tuna from ocean to consumer

In what ways is George weston limited now horizontally integrated?

 Expanded its retail division under loblaw's banner when it bought provigo it acquired a competitor expanded a worldwide bakery it focused on its core business and became less vertically integrated selling businesses that were part of its supply chain like fishing and dairy division

What system does a small retail store normally have in place for inventory management?

A point-of-sale terminal

Why is inventory management for the gap of significant logistics challenge?

 It has a complex supply chain, relationship with factories in over 50 countries and over 3000 stores in the USA Great Britain Ireland Germany France and Japan, managing both of the manufacturing and retail stores inventory to ensure that each of 3000 stores has right quantity of inventory to satisfy customers is complex

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Where are the four possible locations for the storage of goods?

The place where the goods are made, a warehouse, a distribution centre and the place that receives a goods

What do just in time inventory systems require?

That supplies Make and ship what either the factory or retailer requires quickly enough so that the goods arrive at the workstation, factory floor or retail stores as they are needed, add that all links in supply chain are in constant communication with each other as well as partners in the distribution process 

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Where does Amazon store its goods?

Maintains a warehouse of books and other items

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What does cash flow management within a supply chain involve?

Negotiating payment terms, settling up the method of payment and arranging any exchange of funds across the supply chain

what is the most important consideration for a supply chain manager when dealing with cash flow?

how to either make or collect a payment

in international transaction what is the risk for the seller and buyer?

The seller may not get paid, the risk is greater for the seller

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 what financial instrument is used to minimize the risk?

A letter of credit

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What is supplier management?

Finding reliable sources for the products and services of business needs

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Outsourcing?

Contracting  out on a long term basis, major business functions previously performed internally to other businesses that specialize in that function

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Nearsourcing?

 Sourcing out business functions or services to a company in a foreign country that is relatively close in distance

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Insourcing?

When a business sets up a specific division within the company to handle function there was normally outsource

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Offshoring?

When a business transfers functions to the branch of a company to another company 

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inshoring?

When companies contract out functions to other businesses within their own country

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ideally what do all members in the supply chain need to be network on?

The same information sources

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What can information management supply each link in the supply chain with?

Daily production and distribution schedule to the other links can operate more effectively and efficiently

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What is the difference between inbound and outbound distribution?

Inbound deals with receiving goods that are sent to the company while outbound refers to arranging for the equipment of goods from the company to its consumers

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Who has the most of the responsibility for inbound distribution?

Buyer

Who might have responsibility for outbound distribution?

The seller, a distribution centre or a warehouse 

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Who is the carrier?

the company hired to transport the goods

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what is a bill of lading?

The official document that indicates that the transportation company accepts the goods for shipment

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What is containerization?

 Is the utilization of standard size reusable metal boxes to store and ship freight

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What are the advantages of containers?

There designed to fit on top of each other like toy blocks and have grooves and hooks to accommodate specialized unloading and loading devices, they are easy to handle making them more efficient an economical to ship, they are also secure, they fit on standard trucks beds and railway flatters an containers

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What kind of shipping has been made possible by containers?

Intermodal shipping 

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What is intermodal shipping?

Intermodal shipping means using more than one mode of transportation

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Which are preferable, domestic or foreign supply sources?

 Domestic because they make a simpler and shorter supply chain

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How do rising oil prices affect the prices of Oasis juices?

Prices of oil affects both domestic and foreign shipments but the distance traveled by local carriers is much shorter than international carriers, Oasis places orders for oranges months in advanced and prices it's juices the going rate for citrus fruits at that time, and an unexpected increase in the price of oranges caused by escalating oil prices would require Oasis to charge more for its juice

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What concerns are there when you supplier is from a country within unstable political climate?

A shipment might be delayed because of excessive security new government regulation new taxes which are often bribes or problems caused by armed conflict, in civil war soldiers on both sides often stop trucks and confiscate modes

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What are some places where there are unstable political climates?

Middle East Somalia Afghanistan Iran North Korea 

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What concern would Oasis have ordered oranges from South Africa?

Would pass the West Coast of Africa where there has been a significant pirate activity 

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What is the trade off for oasis if it gets a full truckload or shipload of oranges?

Lower transportation costs and increase in storage costs

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If the price of oil increases the price of coffee will?

increase due to transportation

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If the price of oil decreases the price of coffee will?

 Decrease due to transportation fees

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\n If the Canadian dollar increases in value the price of coffee will?

 It will decrease

If the Canadian dollar decreases in value the price of coffee will?

The imported coffee increases in purchase price

If the price of oil increases lumber will?

Lumber will have the higher selling price due to the price of transportation

If the oil decreases lumber will?

 Number will have a lower selling price due to less transportation fees

If the Canadian dollar increases in value lumber will?

The selling price of lumber increases

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If the Canadian dollar decreases in value lumber will?

The selling price of lumber decreases

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Grapes from a field in California to a fruit market in Winnipeg, what carrier should be used?

Refrigerated trucks will get the shipment to Winnipeg with minimum spoilage

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What carrier should be used for Honda automobiles from Tokyo Japan to a Honda dealer in Toronto?

Auto transport trucks to the port in Japan, ocean freight from Japan to Vancouver, train with autorack cars from Vancouver to Toronto, auto transport trucks from train station to Honda dealer. The product is too big to ship by air so it requires ocean freight

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when do Canadians buy most flowers?

 Valentine's Day an mothers day

Why is the supply chain so important in the distribution of flowers?

 Because flowers can bloom and fade before they reach the customer to avoid this supply chain needs to be highly efficient flowers need to be kept at proper temperature and delivered quick

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Where are the most flowers imported from?

 By country the United states and collectively from warm distant countries 

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What is floriculture?

Also known as flower farming is a section of horticulture that deals with cultivating flowers and plants for the floral industry

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What did the Canada Colombia free trade agreement change for imports of roses?

Illuminated the previous 10.5% tariff on imported roses for columbia

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Why do countries in lion America have an advantage in cultivating flowers?

They are closer to the equator and therefore have a more suitable climate for growing flowers warm days and cooler nights providing an ideal growing of our environment that Canadians can reproduce.

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What countries have experienced the greatest increase in flower exports to Canada from 2012 to 2016?

Mexico 77.6%, Taiwan 70.3%, others 55%, China 52%, Guatemala 50.9%, Colombia 31.6%, US 29%,

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Because of the costs and risks associated with storage, what does each link in the supply chain try to do

each link in the supply chain tries to pass the goods on as quickly as possible