Essay on Assignment 1

1754 Words Oct 26th, 2015 8 Pages
Assignment #1: Chapter 1 Questions 1.1 Did it surprise you that logistics has such an important economic impact? Why or why not? I was actually not surprised at all. I have learned that shipping industry has played a major role in our economy and that foreign trade accounted for about 10% of US GPD. As of today about 90% of America’s overseas foreign trade is moved by ships and according to recent projections the foreign trade will be up to 35% of our GPD by 2020. 1.2 Distinguish between possession, form, time, and place utility. Possession utility refers to the value or usefulness that comes from a customer being able to take possession of a product and can be influenced by the relevant payment terms. Form utility refers …show more content…
Looking at this from a logistics perspective, extended store hours force retailers to address issues such as the optimal delivery ties for replenishment trucks and when to replenish merchandise. A logistical challenge with home delivery is the coordination of delivery times with the purchaser’s ability to receive the items. The ready to eat foods have different packaging requirements like reusable bags. 1.9 Explain how big-box retailers are logistical trendsetters. The logistics practices of power retailers are often viewed as barometers for emerging logistics trends. In the 1990s Wal-Mart and Warner-Lambert were the first two companies to explore collaborative planning, forecasting, and replenishment (CPFR). Power retailers have also been logistical trendsetters with respect to focusing on inventory turnover which is the number of times inventory sells in one year. Suppliers are forced to be more efficient in the sense that they should focus on providing the products that will be bought by consumers. 1.10 What is the systems approach to problem solving? How is this concept applicable to logistics management? The systems approach to problem solving suggest that a company’s objectives can be realized by recording the mutual interdependence of the major functional areas such as production, finance, marketing, and logistics.

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