Expanded Tertiary Education Equivalency and Accreditation Program

(ETEEAP)
Logistics Management

NAME: Cristopher R. Danlog DATE: January 19, 2020

PROGRAM: BSBA - Operations PROF.: Mr. Brandy I. Valdez
Management

Instruction: Answer each question in a clear and organized paragraph. Cite examples
applicable to your workplace.

1. Explain the concept of logistics

Answer : The concept of logistics is based on the system approach. The flow
of material from a supplier to a manufacturing plant and finally to the end customer
is viewed as a single chain, ensuring efficiency and effectiveness in sequential
activities to achieve the objective of customer satisfaction at a reduced cost.

Logistics recognizes that all the activities of material movement across the business
process are interdependent and need close coordination. These activities are to be
managed as a system and not as functional silos.

The objective of logistics is to facilitate the flow of material across the supply chain
of an enterprise so as to cost-effectively make available the right product at the right
place at the right time.

Logistics has to achieve the two polemic goals of customer satisfaction and the least
cost. This is possible only when all the logistics functions are working as a unified
system to achieve a common goal.

Examples : The best example I can give that applies in my current workplace
is the distribution of company assets (laptop, headsets, monitors).
(Source: https://scmwizard.com/concept-of-logistics/)

2. Describe the logistics as a process

Answer : In a manufacturing enterprise, the business process starts with the
flow of material from the suppliers to the manufacturing plant and then to the
customer through the distribution channel.

Traditionally in the functional organization, the business process consists of

discrete activities such as procurement, manufacturing, and distribution under the
control of the respective departments. The departments may excel in their
respective functions, but as an organization, their performance may be dismal.

Examples : Our company provided us laptop for our Work from home set up.
I believe they chose Asus as their suppliers. And for the distribution of assets, Chase
has its own delivery team.

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 (Source: https://scmwizard.com/concept-of-logistics/)

3. Define the objectives of logistics

Answer : The objective of logistics is to facilitate the flow of material across
the supply chain of an enterprise so as to cost-effectively make available the right
product at the right place at the right time.

Examples : Our company provided us laptop for our Work from home set up.
I believe they chose Asus as their suppliers. And for the distribution of assets, Chase
has its own delivery team.

(Source: https://scmwizard.com/concept-of-logistics/)

4. Explain the logistics activities

Answer : Logistics management activities typically include inbound and
outbound transportation management, fleet management, warehousing, materials
handling, order fulfillment, logistics network design, inventory management,
supply/demand planning, and management of third party logistics services
providers. To varying degrees, the logistics function also includes sourcing and
procurement, production planning and scheduling, packaging and assembly, and
customer service. It is involved in all levels of planning and execution--strategic,
operational and tactical. Logistics management is an integrating function, which
coordinates and optimizes all logistics activities, as well as integrates logistics
activities with other functions including marketing, sales manufacturing, finance,
and information technology.

Examples : one of the examples I could give is the process of getting pure
foods ham from the direct supplier and distributing it to each employee.
(Source
https://cscmp.org/CSCMP/Educate/SCM_Definitions_and_Glossary_of_Terms.as
px#:~:text=Logistics%20management%20activities%20typically%20include,thir
d%20party%20logistics%20services%20providers.)

5. Describe the role of logistics in the economy

Answer : The roles of logistics feature transportation/delivery, storage,
packaging, cargo handling, distribution processing, and information processing,
and many systems have been put in place to deliver products from the production
location or factory to the consumer quickly and on time.

Examples : Ham distribution to each employee and assets deployment during

Work from home set up
(Source: https://www.keyence.com/ss/products/auto_id/logistics/role/)

6. Describe the role of logistics in an organization

Answer : Logistics actually has many roles. The most well known role of
logistics is sales logistics that moves products from the producer to the consumer.

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 In addition to sales logistics, logistics can also be split into four other roles
depending on the field. These are procurement logistics, production logistics,
recovery logistics, and recycling logistics.
The roles of logistics feature transportation/delivery, storage, packaging, cargo
handling, distribution processing, and information processing, and many systems
have been put in place to deliver products from the production location or factory
to the consumer quickly and on time.

Examples : Ham distribution to each employee and assets deployment during

Work from home set up
(Source: https://www.keyence.com/ss/products/auto_id/logistics/role/)

7. Explain the transportation

Answer : Shipping and management of that work is an important part of
transportation, delivery, and truck freight. This is because products must be shipped
correctly, on time, and as detailed in the order information supplied from the
customer.

Examples : Ham distribution to each employee and assets deployment during

Work from home set up.

(Source: https://www.keyence.com/ss/products/auto_id/logistics/role/function-
shipping.jsp)

8. Discuss about the effects of transportation on logistics activities

Answer : The operation of transportation determines the efficiency of
moving products. The
progress in techniques and management principles improves the moving load,
delivery
speed, service quality, operation costs, the usage of facilities and energy saving.
Transportation takes a crucial part in the manipulation of logistic. Reviewing the
current
condition, a strong system needs a clear frame of logistics and a proper transport
implements and techniques to link the producing procedures. Transportation
occupies one-third of the amount in the logistics costs
and transportation systems influence the performance of logistics system hugely.
Transporting is required in the whole production procedures, from manufacturing
to
delivery to the final consumers and returns

Examples : Delayed delivery of the company assets will surely affect the
productivity of the employee as well as the performance of the whole company.
(Source: https://archive.siam.org/journals/plagiary/1814.pdf)

9. Describe the role of transportation in service quality

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 Answer : The role that transportation plays in logistics system is more
complex than carrying goods for the proprietors. Its complexity can take effect only
through highly quality management. By means of well-handled transport system,
goods could be sent to the right place at right time in order to satisfy customers’
demands. It brings efficacy, and also it builds a bridge between producers and
consumers. Therefore, transportation is the base of efficiency and economy in
business logistics and expands other functions of logistics system. In addition, a
good transport system performing in logistics activities brings benefits not only to
service quality but also to company competitiveness.
Without well-developed transportation systems, logistics could not bring its
advantages into full play. A good transport system in logistics activities could
provide better logistics efficiency, reduce operation cost, and promote service
quality. The improvement of transportation systems needs the effort from both
public and private sectors. A well-operated logistics system could increase both the
competitiveness of the government and enterprises

Examples : Delivering of Ham in a timely manner will cause the satisfaction

of employees, hence could give them reason to appreciate their company.
(Source: https://www.insightssuccess.in/role-transportation-service-quality/)

10. Explain the concept of materials management

Answer : It is concerned with planning, organizing and controlling the flow
of materials from their initial purchase through internal operations to the service
point through distribution.
It is a scientific technique, concerned with Planning, Organizing &Control of flow
of materials, from their initial purchase to destination.

Examples : The process of making sure that Work from home assets are being
delivered to the employee with no damages and on time.
(Source: https://www.yourarticlelibrary.com/material-management/essay-on-
material-management-meaning-concept-and-scope/74229)

11. Define the materials requirements planning

Answer : Material Requirements Planning (MRP) is a standard supply

planning system to help businesses, primarily product-based manufacturers,
understand inventory requirements while balancing supply and demand. Businesses
use MRP systems to efficiently manage inventory, schedule production and deliver
the right product—on time and at optimal cost.

Examples : Best example is the deployment of laptops. Chase needs to

understand the inventory, the number of active employees who needs it and when
is the earliest time they can deliver the items to them. That way they will avoid
having shortage of products.

4|Page
 (Source: https://www.netsuite.com/portal/resource/articles/inventory-
management/material-requirements-planning-
mrp.shtml#:~:text=Material%20Requirements%20Planning%20(MRP)%20is,whi
le%20balancing%20supply%20and%20demand.)

12. Define the materials planning

Answer : Materials Planning has been defined as the scientific way of

determining the requirements of raw materials, components and other items needed
for production within the economic investment policies. It is rather a sub system in
the overall planning activity.

Examples : Best example is the deployment of laptops. Chase needs to

understand the inventory, the number of active employees who needs it and when
is the earliest time they can deliver the items to them. That way they will avoid
having shortage of products
(Source: https://www.yourarticlelibrary.com/material-management/materials-
planning-meaning-and-its-techniques/74245)

13. Explain the meaning of classification and codification

Answer : Classification and codification of materials are steps in maintaining

stores in a systematic way. Materials are classified in such way that storing, issuing
and identifying of materials become easy. Generally, materials are classified on the
basis of their nature. Materials can also be classified on the basis of quality and
utility. For example, materials may be classified as raw materials, consumable
stores, components, spares and tools. Thus classifying materials on different bases
such as nature, quality and utility is called classification of materials.

Examples : sorting of documents. from public to confidential

(Source: https://accountlearning.blogspot.com/2010/05/clasification-and-
codification-
of.html#:~:text=Classification%20and%20codification%20of%20materials%20a
re%20steps%20in%20maintaining%20stores,the%20basis%20of%20their%20nat
ure.)

14. Describe the quantity planning

Answer : Quantity planning takes account of periods for which delivery to a

point of sale (such as a newsstand, bookstore, or supermarket) is not possible. If the
delivery date of a media issue is in the suspension period for the point of sale, the
system locks the corresponding delivery quantity in the quantity plan.

Examples : Number of laptops and headset to be delivered to a certain period

of time.

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 (Source: https://help.sap.com/doc/2276ce53118d4308e10000000a174cb4/3.6/en-
US/7c72ce53118d4308e10000000a174cb4.html#:~:text=Quantity%20planning%
20takes%20account%20of,quantity%20in%20the%20quantity%20plan.)

15. Define the scheduling and capacity requirements planning

Answer : Capacity requirements planning (CRP) is the process of discerning

a firm's available production capacity and whether it can meet its production goals.
The CRP method first assesses the company's planned manufacturing schedule.
Then, capacity requirements planning weighs this schedule against the company's
actual production capabilities to see if the current capacity can successfully meet
the existing production schedule.

Examples : The number of company assets that can be provide and delivered
to employees.
(Source: https://www.investopedia.com/terms/c/capacity-requirements-
planning.asp#:~:text=Capacity%20requirements%20planning%20(CRP)%20is,t
he%20company's%20planned%20manufacturing%20schedule.)

16. Describe the importance of distribution

Answer : Distribution is one of the important mix among marketing mixes.

Delivery of satisfaction, standard of living, value addition, communication,
employment, efficiency and finance are the major role and importance of
distribution. It mix plays an important role to increase the value of the products
through delivery of goods in right quantity, at right place and right time.
Distribution serves as link between producers and consumers.
Examples : Delivering complete and working assets to employees on time will
definitely have a positive impact to both the employees and the firm.
(Source: https://marketinglord.blogspot.com/2012/06/importance-of-
distribution.html)

17. Describe the functions of distribution channels

Answer : Distribution channels are well organized arrangements that

perform all the necessary tasks to assist exchange transactions. The basic function
of a distribution channel is to provide a link between production and consumption
and to create time, place and possession utilities which constitute the added value
of distribution.

Examples : For example, a leather handbag manufacturer who prepares

handbags and sells it directly to the customer
(Source: https://www.yourarticlelibrary.com/retailing/distribution-channel-
functions-and-levels-with-diagram/48299)

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 18. Explain the E-logistics
Answer : E-logistics is defined to be the mechanism of automating logistics
processes and providing an integrated, end-to-end fulfillment and
supply chain management services to the players of logistics
processes. Those logistics processes that are automated by elogistics provide supply
chain visibility and can be part of existing
e-Commerce or Workflow systems in an enterprise.

Examples : Best example I could give is online purchase. e.g., Lazada and
Shopee where customer places order online then merchant packages goods & prints
label then merchant sends the ordered item to its logistics center then merchant
warehouse receives the goods, sorts and print receipt and deliver it to the customer.
(Source: https://researcher.watson.ibm.com/researcher/files/us-bth/zhang.pdf)

19. Explain the logistics activities

Answer : They are basically 6 functions of logistics or Logistics activities:

1.Order processing - commercial team accepts the order from the customer and
places the order to the warehouse.

2. Materials handling - is the movement of goods within the warehouse

3. Warehousing - The important point in warehousing is that the warehouse should

be nearby to the dealer or the distributors’ place and it should facilitate the easy
delivery of goods

4. Inventory control - is one of the most important functions of logistics especially

after the adoption of various production techniques such as Just in time
manufacturing, lean manufacturing or other manufacturing processes where the
cost of inventory management is brought down.

5. Transportation - involves the physical delivery of goods from the company to the
distributor or dealer and from the dealer to the end customer.

6. Packaging - One which the customer sees on the shelf of supermarkets or

hypermarkets where the package appears attractive and makes the customer buy the
packages. The other is transport packaging where the products are packed in bulk
so as to avoid any breakage or spillage and yet allow them to transfer huge volumes
of the product safely from one place to another.

Examples : Best example I could give is online purchase. e.g., Lazada and
Shopee where customer places order online then merchant packages goods & prints
label then merchant sends the ordered item to its logistics center then merchant
warehouse receives the goods, sorts and print receipt and deliver it to the customer.

7|Page
 (Source: https://www.marketing91.com/logistics-activities/)

20. Discuss the material requirements planning (MRP)

Answer : Is a standard supply planning system to help businesses, primarily

product-based manufacturers, understand inventory requirements while balancing
supply and demand. Businesses use MRP systems to efficiently manage inventory,
schedule production and deliver the right product—on time and at optimal cost.

Examples : If product includes wrong manufacturing or purchasing lead times,

MRP will recommend starting production on a wrong date, and that can result in
product being produced later than the customer demands it.
(Source: https://www.netsuite.com/portal/resource/articles/inventory-
management/material-requirements-planning-
mrp.shtml#:~:text=Material%20Requirements%20Planning%20(MRP)%20is,whi
le%20balancing%20supply%20and%20demand.)

21. Explain the just in time (JIT) concept

Answer : Is a management strategy that aligns raw-material orders from
suppliers directly with production schedules. Companies employ this inventory
strategy to increase efficiency and decrease waste by receiving goods only as they
need them for the production process, which reduces inventory costs. This method
requires producers to forecast demand accurately.

Examples : One example of a JIT inventory system is a car manufacturer that

operates with low inventory levels but heavily relies on its supply chain to deliver
the parts it requires to build cars, on an as-needed basis. Consequently, the
manufacturer orders the parts required to assemble the cars, only after an order is
received.
(Source: https://www.investopedia.com/terms/j/jit.asp)

22. Discuss the push and pull systems

Answer : In a push-based supply chain, products are pushed through the
channel from production up to the retailers. This means that production happens
based on demand forecast.

In a pull-based supply chain, procurement, production, and distribution are

demand-driven rather than based on predictions. Goods are produced in the amount
and time needed

Examples : Buying or ordering laptops from the retailer without knowing the
actual number of employees who needs it.
(Source: https://tulip.co/blog/manufacturing/push-vs-pull-
system/#:~:text=In%20a%20push%2Dbased%20supply,production%20up%20to

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 %20the%20retailers.&text=In%20a%20pull%2Dbased%20supply,the%20amoun
t%20and%20time%20needed.)

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