Product Logistics Chain Overview
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ScribdTranslationsProduct Logistics Chain Overview
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ScribdTranslationsFINAL ACTIVITIES LOGISTICS TOPIC 1
TOPIC 1: PRODUCT LOGISTICS CHAIN
ACTIVITY 1.1
1. The supply channel consists of:
c) Transport raw materials to the production center warehouse.
2. The functions of logistics in service companies are:
Provision the necessary means and resources to meet customer demand.
3. The commercial distribution channel consists of:
b) Transport goods or manufactured products to the consumer's points of sale.
4. Logistics, as a business activity, is used to organize and control the
product flows in order to:
b) Achieving the service level required by the client.
5. According to the number of intermediaries involved in the distribution of goods.
consumption, we can find:
c) Level three channel: manufacturer-importer/wholesaler-retail point-consumer.
[Link] logistics activities of a commercial company are:
a) Procurement of goods and their distribution to the consumer.
7. The manufacturer who sells their products with an exclusive distribution system:
b) It reaches the consumer through intermediaries that do not sell similar products.
[Link] logistical activities of an industrial company are:
b) Procurement of raw materials, production of products, and commercial distribution.
9. According to the number of intermediaries involved in the distribution of goods
industrials, we can find:
b) Level one channel: manufacturer-distributor-end customer.
10. Warehouses, according to the logistics function, can be:
a) Central, consolidation, regional, and local.
ACTIVITY 1.2
[Link] products intended for export to reach the consumer must
go through many stages of the distribution channel. FALSE
Containers are finished products from one industry that another uses to adapt its
products to the customer's requirements. TRUE
3. Cash and carry wholesalers are full-service intermediaries. FALSE
A chain of large supermarkets can have regional warehouses and
TRUE
5. When transport agencies apply low-cost rates for a minimum route,
It is advisable to have a transit warehouse. TRUE
6. Warehouses are regulatory centers of commercial organization and distribution of
[Link]
[Link] an efficient information system on stocks is one of the main
objectives of the technical department. FALSE
8. Supply warehouses are necessary to regulate demand for
final consumer. FALSE
Distribution warehouses are necessary to regulate consumer demand.
[Link]
One of the functions of supply management is, precisely, to manage the
transport and storage of goods and other materials. TRUE
Activity 1.3
1. Logistics is the part of supply chain management responsible for
plan, implement, and control the efficient and effective flow of materials and the
production storage, as well as the information associated with consumption
objective of satisfying consumer needs.
2. Its objectives are to meet the customer's needs by providing products and
services at the time, place, and quantity that is requested, and all of this at the minimum cost.
3. Service companies focus their functions on meeting the needs of the
clients, through the services they provide.
4. It consists of selecting suppliers to supply the production center with the
raw materials that best respond to the pace and volume of production, so that they
guarantee the minimum cost.
5. The logistical process of bringing the product closer to consumption points is carried out at
through transformation, storage, and transportation activities. The activities of
transformation and transportation give rise to the physical movement of the product, while those of
Storage serves as a link and preserves the product until demand occurs.
Activity 1.4
[Link] materials: they are the materials used to manufacture another product.
Finished products: these are the ones that have completed the entire manufacturing process and are
destined for final consumption.
Merchandise: they are items that the company acquires to resell to its customers, but not
apply no changes or transformations to them.
[Link]:
Acquire the necessary products for the preparation or commercialization of the products.
Optimize purchase prices and the quality of materials delivered Just in time.
Manage a transportation and supply plan and its logistical points.
Apply warehouse management techniques that allow maintaining minimum stocks of
more suitable handling and preservation.
Control the inventories and the associated costs.
3. Disadvantages
Companies need to invest in buildings and facilities to store products.
Stored products take up space, generate maintenance costs,
manipulation and administrative management.
Goods that are stored for a long time age and become obsolete.
4
When production is done in a chain and the suppliers are far away.
When production is seasonal and demand is constant.
When production is done in chain, but demand is irregular or seasonal.
When production centers are very far from consumption points.
When should we anticipate our customers' orders.
5.
Receiving goods: It consists of entering the items sent by the
suppliers.
Storage: it consists of placing the merchandise in the most suitable area.
warehouse, in order to locate them easily.
Conservation and maintenance: it consists of keeping the merchandise in perfect condition.
during the time it remains stored.
Management and control of stocks: it consists of determining the amount that should be
store each product and calculate the frequency and quantity that will be requested for each
request to generate the minimum storage cost.
Dispatch of goods: it consists of delivering the requested goods to the
production center or the customers, distribution channel.
[Link] functions of the agents in the logistics chain are:
Retailers purchase products from the manufacturer or wholesaler, and the
sales are directed to the final consumer.
Wholesale merchants buy products directly from the manufacturer and the
resale is directed towards retail companies or points of sale to businesses
retailers.
Depending on the functions they perform, they can be:
Wholesalers:
- Full service: they offer a very wide range of products and services. They take on the
functions of storing the product, facilitating deliveries to the retailer and the payment of the
merchandise. They can be differentiated between general wholesalers (who have as a client)
retailers) and industrial distributors (who sell to manufacturers).
Limited service: they have a limited service in a reduced number of
product lines. Among them, we can distinguish: cash-and-carry wholesalers (they sell to
small retailers), distributors on the way (sell only perishable products),
chains of cooperative producers (owners of agricultural products that
they group together to sell their own products.
Agents, representatives, and brokers act as intermediaries in exchange for
a commission.
Branches and manufacturer offices are forms of wholesale distribution, they depend
from the manufacturer and sell their products exclusively.
Activity 1.5.
Wooden planks → Raw materials.
Glue stick → Auxiliary materials.
Unfinished drawers → Semi-finished products.
Doors and cut shelves → Products in progress.
Handles and embellishments → Auxiliary materials.
Hinges and screws → Auxiliary materials.
Sanders, saws, drills, etc. → Various materials.
Lacquers and varnishes → Auxiliary materials.
Unpacked furniture → Finished products.
Wood shavings without utility for the company → Waste.
Cardboards and plastics to protect furniture → Containers.
Labels, delivery note books, etc. → Office supplies.
Shelves and boards sold separately → Subproducts.
Activity 1.6
Activity 1.7
The company needs 3 warehouses:
Raw materials warehouse.
Warehouse of semi-finished products.
Finished goods warehouse.
Activity 1.8
Activity 1.9
Distribution channels of Kurhapies footwear:
Sales in Spain go through a short channel (level 1): Manufacturer → shoe store →
final consumer.
The sales channel in Europe is long (level 2): Manufacturer → Wholesaler
(distributor-importer) → → retailer (shoe store) → end consumer.
The distribution channel in America is very long (level 3): Manufacturer → importer →
wholesalers → retailers (shoe stores) → final consumer.
Activity 10