chapter 2 answers to study questions
ANSWERS TO STUDY QUESTIONS
1. Compare and contrast the four subdivisions of logistics management.
Answer: In the 21st century, Logistics should be viewed as a part of management that has four
That part of the supply chain that plans, implements, and controls the
effective, efficient forward and reverse flow and storage of goods, services, and related
information from the point of origin to the point of consumption in order to meet customer
Military logistics: The design and integration of all aspects of support for the operational
capability of the military forces [deployed or in garrison] and their equipment to ensure
readiness, reliability, and efficiency.
Event Logistics: The network of activities, facilities, and personnel required to organize,
schedule, and deploy the resources for an event to take place and to efficiently withdraw
after the event.
Service Logistics: The acquisition, scheduling, and management of the facilities/assets,
personnel, and materials to support to sustain a service operation or business. (Pages 36-38)
2. Compare and contrast logistics management with supply chain management.
Answer: The concepts of supply chain management and logistics must be compared or, more
appropriately, related to each other. Supply chain management is defined using a pipeline
analogy with the start of the pipeline representing the initial supplier and the end of the pipeline
representing the ultimate customer. In other words, it was an extended set of enterprises from the
supplier’s supplier to the customer’s customer.
Another perspective on supply chain management views it as a network of the logistics systems
and related activities of all the individual organizations that are a part of a particular supply
chain. The individual logistics systems obviously play a role in the success of the overall supply
chain. The coordination or integration of the logistics systems in a supply chain is a challenge;
no logistics system operates in a vacuum. For example, the inbound part of a manufacturer’s
logistics system interfaces with the outbound side of the supplier’s logistics system. The
outbound portion of the manufacturer’s logistics system interfaces with the inbound side of its
customer’s logistics system. (Page 40)
3. On a macro-economic basis, the ratio of inventory to sales has declined over the last 20 years.
Is this good or bad? Why? What factors have contributed to this trend? Is this trend likely to
continue in the future? Why or why not?
Answer: The overall, absolute cost of logistics on a macro basis will increase with growth in the economy. In
other words, if we produce and consume more goods and services, there will be increased total costs
associated with all of the logistical activities of each and every organization. To determine the efficiency of the
logistics system, we need to measure total logistics cost in terms of gross domestic product, which is a widely
accepted barometer or metric used to gauge the rate of growth in the economy.