BM1913

PRELIM EXAMINATIONS – LOGISTICS

MANAGEMENT

Name: ABBEGAIL C. BORROMEO _ Section: BA401

Instructions: Answer the following ESSAY TYPE QUESTIONS. EXPLAIN and JUSTIFY
YOUR ANSWERS. ALL ITEMS ARE GOOD FOR 25 POINTS EACH. TOTAL is 100
ITEMS.

1. DISCUSS THREE (3) FUNCTIONS OF LOGISTICS AND SUPPLY CHAIN.

The different functions of logistic and supply chain as Myerson (2015) summarized
it are Procurement, Demand forecasting, Customer service, Order management,
Inventory, Transportation, Warehousing, and Materials handling and packaging.

Procurement involves the acquisition of goods or services from an outside external

source. Demand forecasting involves estimating the quantity of a product or service
that customers will purchase. Customer service involves maintaining long-term
and good relationship with clients. Order management involves tasks associated
with fulfilling an order for goods or services placed by a customer. Inventory
involves planning and managing finished goods and raw materials. Transportation
involves the different modes of conveying finished goods and raw materials.
Warehousing involves a public or private building used to store finished goods and
raw materials Lastly, Materials handling, and packaging involves the movement,
protection, storage, and control of materials and products using manual, semi-
automated, and automated equipment.

2. EXPLAIN THE FIVE (5) MAJOR MANAGEMENT PROCESS WITHIN THE SUPPLY
CHAIN OPERATIONS REFERENCE (SCOR) MODEL.

The five major management process within the Supply Chain Operations Reference
(SCOR) model are Plan, Make, Source, Deliver, and Return.

Plan is the alignment of resources to demand. Make is the conversion of activities

within a supply chain operation. Source is buying or acquiring materials and
services. Deliver is customer interaction, from receiving orders to final delivery and
installation and lastly, Return the processes which require backward flow of goods
and services from end consumers to the point of origin or the supply chain.

3. EXPLAIN THE FIVE (5) PRIMARY ACTIVITIES IN THE VALUE CHAIN.

The five primary activities in the value chain are Inbound logistics, Operations,

2nd Term, SY 2020 – 2021

Prelim Examination
 BM1913

Outbound logistics, Sales and marketing, and Services.

Inbound logistics is receiving, warehousing, and inventory control of input
materials. Operations. This involves transforming inputs into the final product or
service to create value. Outbound logistics is the activities that deliver the final
product to the customer, including warehousing and order fulfillment. Sales and
marketing are the activities related to buyers purchasing the product, including
advertising, pricing, and distribution channel selection. And Services is the
initiatives that maintain and improve a product’s value, including customer
support, repair, and warranty service.

4. DISCUSS TWO (2) BASIC TYPES OF UTILITY.

The Basic types of utility is form utility, time utility, place utility, possession
utility, information utility and service utility.

Form utility is a utility that performed by the manufacturers and third-party

logistics companies through value adding activities that make a product or service
more useful. Time utility is having the products and services available when
needed. Place utility is having the products and services available at the most
convenient locations for the customers. Possession utility is transfer of ownership
to the customer, including extension of credit, after purchases. Information utility.
is a two-way flow of communication between customers and manufacturers. And
last, Service utility a service during and after the sale and teaching customers how
to best use the products.

2nd Term, SY 2020 – 2021

Prelim Examination