SCM 373 Study Guide - Midterm Guide: Stok, Attai, Demand Forecasting

• School: MSU
• Department: Supply Chain Management
• Course: SCM 373
• Professor: peinkofer

Document Summary

Traffic & transportation: explain the 7r"s. Right customer: how can logistics create a competitive advantage for a company, cost leadership, differentiation, use the graph below to answer the questions that follow. Exam 1 practice questions: as the number of warehouses increases, inventory cost . Why: increases, because of increased holding costs, increased safety stock quantities as well, as the number of warehouses increases, local delivery cost . But there can be win-wins: cutting out middle-men: lower cost and greater speed: lot (cid:395)ua(cid:374)tity costs a(cid:374)d i(cid:374)ve(cid:374)to(cid:396)y ca(cid:396)(cid:396)yi(cid:374)g costs. Ordering or producing products in larger quantities decreases lot quantity costs but increases inventory carrying costs. Exam 1 practice questions: wa(cid:396)ehousi(cid:374)g costs a(cid:374)d t(cid:396)a(cid:374)spo(cid:396)tatio(cid:374) costs. On the physical distribution (downstream) side, companies serve customers who order full truckload shipments directly from manufacturing facilities, whereas customers who order less-than- truckload shipments are served from warehouses. Adding warehouses increasing warehousing costs but reduces transportation costs.