BUSML 3380 - Midterm Exam Review - Spring 2025 - 4414

Logistics Management Midterm Exam Review

• Prepared by: Alan Pritchard

• Contact: Pritchard.266@osu.edu

Agenda

• Announcements

• Exam 1 Structure and Topics

• Recap

• Questions?

• Additional Files

Recruiting and Job Placement

• Placement Locations:

  • Most active:

    • Columbus

    • Cleveland/Cincinnati/Dayton

    • Chicago

  • Most Active Recruiters:

    • DHL

    • TQL

    • Arrive Logistics

    • PepsiCo

    • Walmart

    • Nordstrom

    • NMG Aerospace

    • NetJets

    • GEODIS

    • Target

    • Honda

    • Ulta

• Job Placement rate: 97%+ (2020-2024)

Midterm Exam Format

• Duration: 55 minutes

• Question Types:

  • ~45 multiple choice, true-false, matching, and maybe 1 short answer

• Topics will include:

  • Lecture slides and recorded videos

  • Matching quizzes (see Modules)

  • Posted CEAs (see Readings page)

  • Assigned readings 1-5 (Readings page)

Midterm Exam Procedure

• Must be taken using Respondus Lockdown Browser for Ohio State.

Assigned Readings

• CEA #1:

  • Intel

  • PepsiCo.

• CEA #2:

  • US-Bahrain FTA

  • US-Colombia TPA

• Focus on Assigned Articles 1-5

Midterm Exam Topics

• What is a supply chain?

• What is SCM? How does it differ from logistics?

• Trends in the global economy

• Strategies to combat SCM complexity (CEA #1)

• Trade agreements (CEA #2)

• Roles of logistics managers

• Supply chain network strategies and location choice (e.g., Amazon HQ2)

• Omni-channel retailing

• Articles 1-5

What is a Supply Chain?

• A linked chain from suppliers to end customers

• Stages may include:

  • Suppliers

  • Producers

  • Wholesalers

  • Retailers

  • Consumers

Basic Definition of Supply Chain

• A system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to end customer.

• SCM activities:

  • Coordination: Movement of goods, services, and funds

  • Information Sharing: Forecasts, point-of-sale data, inventory levels

  • Collaboration: Joint planning and execution of business decisions

Evolution of Supply Chain Management

• Activity fragmentation (pre-1960s) to integrated logistics (post-2000)

  • Demand forecasting

  • Purchasing

  • Requirements planning

  • Production planning

  • Distribution planning

Integrated Supply Chain – Basics

• Integrating products, information, and financials through the supply pipeline

• Flows include:

  • Product/Services Flow

  • Information Flow

  • Finance/Cash Flow

  • Demand Flow

Recap: External Forces

1. Government Policy & Regulation

2. Organizational Consolidation

3. Globalization

4. Technology

5. Empowered Consumer

Supply Chain in Global Economy

• Recent Trade Wars

• Outsourcing, Offshoring, Nearshoring, Reshoring, and Friendshoring

What Is Logistics?

• Business Logistics: Plans, implements, controls the flow of goods and services

• Military Logistics: Support for operational capability

• Event Logistics: Organizing resources for events and post-event activities

• Service Logistics: Management of resources for service operations

Value-added Roles of Logistics

• Five Principal Types of Economic Utility:

  • Time

  • Form

  • Place

  • Quantity

  • Possession

SC Network Design Steps

1. Define the SC Network Design Process

2. Perform an SC Audit

3. Examine Network Alternatives

4. Conduct Facility Location Analysis

5. Make Network and Facility Location Decisions

6. Develop an Implementation Plan

Major Locational Determinants

• Labor Climate

• Transportation Services and Infrastructure

• Proximity to Markets

• Quality of Life

• Taxes and Industrial Development Incentives

• Supplier Networks

• Land Costs and Utilities

• IT Infrastructure

• Company Preferences

Current Trends in Site Selection

• Strategic positioning of inventories

• Increased use of Third-Party Logistics (3PLs)

• Cross-docking practices

• Movement towards omni-channel retailing

Omni-Channel Network Design Examples

• Companies: Target, Walmart, Amazon

• Structure includes both online and brick-and-mortar locations

Omni-Channel Concept

• Defined as "anytime, anywhere, anyhow, and any device."

• Transition from early to omnichannel through strategic integration

Production Tradeoffs

• Volume vs. Variety

• Responsiveness vs. Efficiency

• Make vs. Buy decisions

• Cost vs. Supply Chain Cost

Volume vs. Variety in Production

• Economies of Scale: Higher production volume, lower cost per unit

• Economies of Scope: Low volume, diverse product capabilities

Responsiveness vs. Efficiency

• Facility Size: Large = flexible, Small = efficient

• Product-focused vs. Process-focused facilities

• Centralized vs. Regional production strategies

Production Execution Decisions

• Assembly Processes:

  • Make-to-Stock (MTS)

  • Make-to-Order (MTO)

  • Assemble-to-Order (ATO)

  • Build-to-Order (BTO)

  • Engineer-to-Order (ETO)

Key Questions for Make vs. Buy Decisions

• Should we continue to make it or outsource?

• Current drivers of out/in-sourcing?

• Likely logistics/SCM outsourcing areas?

Reasons to Make

• Small quantities, exacting quality, assurance of supply

• Closer coordination, preserve technology secrets, utilize unused capacity

• Avoid dependency and mitigate risks

• Market potential and shortage forecasts

Reasons to Buy

• Lack of expertise, technological leadership challenges

• Availability of capable suppliers and customer brand preferences

• Flexibility, speed to market, superior supply management

Forecasting Exercise

• Demand forecasts based on past data

• Calculations for arithmetic average and moving averages

Range of Relationship Types

• Transactional, Collaborative, Strategic

  • Examples: Starbucks & Coca-Cola, Barnes & Noble & Heinz

Collaborative Relationships

• Collaboration types: Vertical, Horizontal, Full

• Supplier and distribution network relationships

Questions? & Answers

• Open floor for discussion

Assigned Readings

1. Apple’s Supply Chain Secret

2. Key Bridge Collapse

3. Extreme Logistics Behind Formula 1

4. Colombian Roses

5. Amazon HQ2

Apple’s Supply Chain Secret

• Apple innovated supply-chain management under Steve Jobs since 1997

• Air freight investment to ensure holiday availability of products

• Strategy led to competitive advantage against rivals

Key Bridge Collapse

• Impacted logistics companies and Port of Baltimore operations

• Urgency in response to significant disruptions

Extreme Logistics Behind Formula 1

• Focus on logistical challenges across multiple international venues

Amazon HQ2 Decision Factors

• Strategic location, market influence, operational costs

Matching Quizzes

• Topics include:

  • BHFTA, CTPA, Physical Distribution, Possession Utility, Outsourcing, USMCA, Supply Chain, Materials Management, etc.

Next Steps

• Review slides, study terms and definitions, read assigned articles and posted CEAs

• Prepare for next week’s Midterm Exam

Contact Information

• Questions/Concerns?

• Dr. Alan Pritchard

• Office Hours: By appointment (email me at Pritchard.266@osu.edu)