pro & sup management

Give 3 types of warehouses

Public Warehouse, Private Warehouse, Distribution Center (DC)

Give 5 abbreviations

EDI, WMS, VMI, MRP, ERP

Give 3 Factors Determining Transport Mode

Cost per unit, Speed/Transit time, Reliability & safety

Give 3 Transportation Challenges

Rising fuel costs, Driver/capacity shortages, Environmental regulations

3 Transport Optimization

Route planning & load consolidation, Mode shifting, Backhauling

What is VAL / Explain what VAL is + examples

VAL = Value-Added Logistics. Examples: Labeling, kitting, final assembly, quality control

What is VAS + examples

VAS = Value-Added Services. Examples: Gift wrapping, installation at delivery, reverse logistics processing

Circle of Supply Chain and explain how it goes

Supplier → Manufacturer → Distributor → Retailer → Customer → (returns) → Supplier. A loop where demand drives production and returns restart the cycle.

Difference between supply chains and logistics

Logistics = movement & storage. Supply Chain = logistics + sourcing, procurement, production, demand planning, collaboration.

4 different flows in supply chain

Product flow, Information flow, Financial flow, Reverse flow

Stakeholders for road transport

Driver, fleet manager, shipper, consignee, toll authorities

Stakeholders for rail transport

Rail operator, train crew, yard manager, shipper, infrastructure owner

Stakeholders for air transport

Airline cargo staff, ground handler, freight forwarder, customs, airport authority

Stakeholders for sea transport

Carrier, port authority, freight forwarder, customs broker, container lessor

Stakeholders for pipeline transport

Pipeline operator, energy company, regulator, maintenance crew, terminal manager

Difference between supply and demand management

Supply management = ensuring availability. Demand management = forecasting and influencing customer demand.

Difference between effectiveness and efficiency

Effectiveness = doing the right things. Efficiency = doing things right (min cost/time).

Difference between types of CODP

MTS (finished goods), ATO (assembly), MTO (production start), ETO (design stage). Earlier CODP = longer lead time; later CODP = more inventory risk.

4 consequences linked to CODP

Inventory level (high MTS / low ETO), Lead time (short MTS / long ETO), Customization (low MTS / high ETO), Forecast accuracy needed (high MTS / low ETO)

Why are companies outsourcing?

Cost reduction, focus on core competencies, access to expertise, scalability

Difference between 1PL,2PL,3PL,4PL,5PL

1PL=self, 2PL=asset carrier, 3PL=outsourced multi-service, 4PL=integrator, 5PL=digital platform

What is KPI and why important

Key Performance Indicator. Importance: measure goals, identify problems, enable data decisions

Difference between primary and secondary activities

Primary = direct value creation. Secondary = support primary activities.

3 examples of VAL and VAS

VAL: labeling, repacking, quality inspection. VAS: installation, returns handling, payment collection on delivery

3 or 4 Inventory process steps

Receive goods, put-away, pick & pack, ship

3 important rules of Demand Forecasting

Forecast always wrong, aggregate is more accurate, short-term more accurate than long-term

Explain Holding Inventory Cost

Capital cost + storage cost + obsolescence/damage/theft + insurance & taxes

The 3 Rs

Reduce, Reuse, Recycle

Explain cost of no sales

Lost profit from not having product when customer wants to buy (lost margin, lost customer, brand damage)

Explain Bullwhip + consequences + solutions

Demand amplification upstream. Consequences: excess inventory, stockouts. Solutions: share data, reduce lead times, VMI.

Give 5 warehouse types

Private, Public, Bonded, Automated, Cross-dock facility

Give 4 functions of a warehouse

Storage, Consolidation, Cross-docking, Value-added services

Give 5 phases in a warehouse

Receiving, Put-away, Storage, Order picking, Shipping

Give 4 Internal Transport Equipment

Forklift, Pallet jack, Conveyor belt, AGV

Give 4 Storage Systems (just name)

Pallet racking, Drive-in racks, Cantilever racks, Shelving/bins

Give 5 processes where WMS helps a DC

Inventory tracking, Put-away optimization, Order picking routing, Replenishment, Labor management

3 advantages & disadvantages of WMS

Adv: Accuracy, speed, space utilization. Disadv: Cost, implementation time, training.

What is VMI + 3 advantages & 3 disadvantages

VMI = Vendor Managed Inventory. Adv: fewer stockouts, lower buyer admin, visibility. Disadv: supplier risk, buyer dependency, trust needed.

Why is procurement changing?

Digitalization, sustainability, disruptions, focus on value over cost

3 levels of procurement

Operational (ordering), Tactical (negotiation), Strategic (long-term sourcing)

4 levels of procurement activities

Sourcing, Negotiation & contracting, Ordering & expediting, Supplier performance management

6 steps in Van Weele + explain

1.Specification, 2.Select supplier, 3.Contract, 4.Ordering, 5.Expediting, 6.Evaluation

4 different procurement situations

Routine (low risk/value), Leverage (high value/low risk), Bottleneck (low value/high risk), Strategic (high value/high risk)

3 things you decide in procurement strategy

Supplier selection criteria, Make-or-buy decision, Contract type

Explain Kraljic Matrix + 4 quadrants

Profit impact vs supply risk. Strategic (partner), Leverage (bid), Bottleneck (secure), Non-critical (simplify)

What is BOM + explain

Bill of Materials – list of all components/quantities to make one finished product

Serial, Parallel, Convergent, Divergent Production + example

Serial: A→B→C (assembly line). Parallel: two bottling lines. Convergent: inputs→one output (car assembly). Divergent: one input→multiple outputs (crude oil refining)

What is MRP I

Material Requirements Planning – calculates materials timing/quantity from MPS and BOM

What is MRP II

Manufacturing Resource Planning – MRP I + capacity, labor, machines, finance

What is ERP

Enterprise Resource Planning – integrated software for all business processes

What is PDCA, TPS, LEAN vs AGILE

PDCA=Plan-Do-Check-Act. TPS=Toyota Production System. LEAN=eliminate waste. AGILE=respond quickly to demand changes.

What is SIX SIGMA (steps)

DMAIC: Define, Measure, Analyze, Improve, Control

What is Commercial Distribution

Process from producer to consumer via wholesalers, retailers, e-commerce

5 functions in a DC

Receiving, Put-away, Storage, Order picking, Shipping

Difference between Reverse & Green Logistics + common

Reverse = returns. Green = eco-friendly forward logistics. Common = reduce waste & improve sustainability.

Who takes initiative to Return Goods

Customer, Retailer, Manufacturer, Regulator

Return strategies (why each didn't work)

Full refund no return (abuse). Restocking fee (dissatisfaction). Store only (inconvenient). Free returns no limit (high cost).

4 reasons for Packaging

Protection, information, branding, unitization

Why do we need packaging (difference)

Logistics packaging = protective. Consumer packaging = convenience/display.

3 or 4 reasons packaging must comply with

Safety regulations, environmental laws, transport rules, labeling laws

Steps to avoid waste

Reduce, Reuse, Recycle, Right-size packaging, Accurate forecasting

Definition of Supply Chain Management (SCM)

SCM includes planning and managing sourcing and procurement, production/conversion, and all logistics activities. It also includes coordination and collaboration with suppliers, third

Definition of Logistics

Logistics is part of SCM. It focuses on planning, implementing, and controlling the efficient and effective forward flow, reverse flow, storage of goods, services, and information from the point of origin to the point of consumption. Example: Transporting products from a factory to the customer, while also managing returns and storage.

Trade

Offs (Effectiveness vs Efficiency)

efficiency means achieving goals with as little waste/resources as possible. Example: Offering 24

hour delivery improves effectiveness, while delivering 98.6% on time in the correct quantity and without damage reflects efficiency/reliability.

Core SCM Flow Diagram

The core SCM diagram shows the main flows in the chain: product flow, cash flow, information flow, and return flow. These connect suppliers, logistics management, and customers, together with purchase, production, distribution, warehousing, and transportation. Example: A supplier sends goods (product flow), the customer pays (cash flow), order data is exchanged (information flow), and returns may go back (return flow).

5 Logistics Stakeholders for Sea Freight

Manufacturer, Freight Forwarder (FF), Trucking Company / Rail Operator, Distribution Center, Terminal Handling

5 Logistics Stakeholders for Air Freight

Manufacturer, Freight Forwarder (FF), Trucking company, Airlines, Ground handler (GHA)

5 Logistics Stakeholders for Road Freight

Manufacturer, Freight Forwarder (FF), Trucking company, Customs, Warehouse (WHS)

Difference between Supply and Demand

Supply is linked to the inbound side of the chain and the availability of goods/resources. Demand is linked to the outbound side and what customers need or order. The slides also connect supply management to the push model and demand management to the pull model. Example: A manufacturer planning inventory before customer orders is working from supply/forecast, while actual customer orders trigger demand

Push Model vs. Pull Model

Push model = Supply Management. Production and inventory are based on forecasts, and the customer buys what is available. Pull model = Demand Management. Production is based on customer orders, and inventory is replenished automatically based on actual demand. Example: Push: a retailer stocks products in advance based on expected sales. Pull: a product is produced only after the customer places the order.

Purpose and goals of logistics

The purpose of logistics is to improve the service level and reduce total costs. Main logistics goals are reduction of lead time, improvement of delivery reliability, and increase in flexibility. Example: Faster order handling and more reliable deliveries improve service while lowering total logistics costs.

Definition of Lead Time

Lead time is the time that passes between the moment an order is received and the moment the order is fully completed or delivered. Example: If an order is received on Monday and delivered on Friday, the lead time is the time between Monday and Friday.

Difference between Efficiency and Effectiveness

Efficiency is about achieving a goal with as little waste of resources as possible. Effectiveness is about achieving the goal as well as possible. Example: Delivering packages quickly is linked to efficiency, while delivering the right package to the right place is linked to effectiveness.

Customer Order Decoupling Point (CODP) definition

The CODP indicates how far upstream in the supply chain a customer order penetrates into the production or distribution process. Before the CODP, activities are not customer

after the CODP, production becomes customer

oriented. Example: In a make

CODP 1

Make to Stock (Local)

CODP 2

Make to Stock (Central)

CODP 3

Assemble to Order

CODP 4

Make to Order

CODP 5

Purchase & Make to Order

Consequences of CODP 1 and CODP 5

CODP 1 has the highest average inventory, shortest delivery time, more standardized products, and more generalist work. CODP 5 has no inventory, longer lead times, needs more specialized employees, and requires high process flexibility. Example: CODP 1 fits stocked consumer goods in supermarkets

CODP 5 fits highly customized products built only after the order is received.

Reasons why a company chooses to outsource logistics activities

Reasons include focus on core activities, less investment, better insight into logistics costs, expertise of the logistics service provider, risk reduction, and making costs variable. Example: A company outsources warehousing and transport to a logistics specialist instead of investing in its own warehouse and fleet.

1PL

First Party Logistics

2PL

Second Party Logistics

3PL

Third Party Logistics

4PL

Fourth Party Logistics

5PL

Fifth Party Logistics

Return on Investment (ROI) and formula

ROI means Return on Investment. Formula: ROI = (Investment revenue

The 4 levels/levers of the DuPont Analysis

Logistics contribute to profitability through 4 levers: market expansion, cost reduction, inventory turnover, and outsourcing logistics activities. Example: Stricter inventory management lowers average inventory and increases turnover ratio.

Value Added Logistics (VAL) vs. Value Added Services (VAS)

Chapter 2

Key Performance Indicators (KPIs) definition

A KPI is a measurable value that shows how effectively a company or logistics partner is achieving its objectives. Example: Examples are on

Michael Porter's Value Chain: Primary activities vs. Secondary support activities

Primary activities: inbound logistics, operations, outbound logistics, marketing and sales, and service. Secondary/support activities: infrastructure, human resource management, technology development, and procurement/purchasing processes. Example: Outbound logistics is a primary activity, while HRM is a support activity.

Inventory (Inventory by process)

On order, Inspection, Raw materials, Components, Pipeline inventory.

Inventory (Inventory by type)

Strategic, Speculative, Buffer inventory, Cycle inventory, Safety stock.

Inventory (Theoretical/business

economic inventory)

Demand Forecasting

Demand forecasting is the starting point of every inventory

3 important rules of forecasting

1) A demand forecast is by definition incorrect, so reliability matters. 2) An aggregated forecast is more accurate than a detailed one. 3) The further into the future you predict, the less reliable the forecast becomes. Example: Forecasting next month's demand for a product family is usually more reliable than forecasting one exact SKU far into the future.

Qualitative forecasting method

Qualitative forecasting: Delphi method, where experts independently estimate demand, receive anonymous feedback, and refine their forecasts over several rounds. Example: Estimating demand for a new electric bicycle with no historical sales data.