Essay about Sclt 2362 Ch 1 End of Chapter Questions

1014 Words Sep 6th, 2013 5 Pages
Hoang Jimmy Dinh 1089188
SCLT 2362 (Online)
Prof. Kidd
September 9, 2013

Chapter 1 End Of Chapter Questions

1. It did not surprise me that logistics has an important impact on the economy because logistics is one of the biggest causes for globalization. Logistics is the movement and management of goods and that is what keeps countries involved with one another. 2. Possession utility is the efficiency of the product that the customer receives from possessing the product. Form utility is enhancing the marketability of a product by changing its physical appearance. Place utility is where the product is available when the customer needs it. Time utility is when the product is available to the customer, benefiting the consumer
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9. Many power retailers recognize superior logistics as an essential component for their corporate strategies, and because of this, their logistical practices are often viewed as a barometer for emerging logistic trends. 10. The systems approach to problem solving suggests that a company’s objectives can be realized by recognizing the mutual interdependence of the major functional areas. Decision made by one functional area can have important implications for the other functional areas. 11. Materials management is the movement and storage of materials and components within a firm. Physical distribution is the storage of finished products and movement to the customer. 12. The total cost approach is built on the idea that all relevant activities in moving and storing products should be considered as a whole and not individually. The key to the total cost approach is that all cost items are to be considered simultaneously when making a decision. 13. A cost tradeoff acknowledges that changing patterns or activities of distribution will result in some costs increasing and other costs decreasing. I believe that this concept is workable because it works like a cause and effect situation. 14. The financing department is often in charge of capital budgeting decisions that would affect logistics, like material handling

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