TRL4864 – Integrated Logistics Management Exam Prep (Feb 2020)
PLEASE TAKE NOTE OF THE FOLLOWING:
** Textbook used: Bowersox, DJ, Closs, DJ, Cooper, MB & Bowersox, JC. 2010. Supply chain logistics
management. 3th edition. New York: McGraw-Hill.
**The following are comprehensive summaries and covers all chapters in the textbook based on the
Examination Questions (Part 1 – 4) posted by TRL4864 lecturer.
**Covers all questions in the MOCK EXAMS section as well
EXAMINATION QUESTIONS PART 1
CHAPTER 1
1. Discuss the 4 levels of supply chain information systems (SCIS) functionality (16)
SCIS are the threadlinking logistics activities into an integrated process. The integration builds on
four levels of functionality
a) Transaction systems
b) Management control
c) Decision analysis
d) Strategic planning
(see figure 5.1 – information functionality on page 97)
a) Transaction System
- Characterized by formalized rules procedures and standardized communications
- A large volume of transactions
- And an operational, day-to-day focus
The combination of structured processes and large transaction volumes places a major
emphasis on info system efficiency. Transaction systems initiate and record individual
logistics activities and their outcomes. Typical transaction functionality includes order entry,
inventory assignment, order selection, shipping, pricing, invoicing and customer inquiry.
b) Management Control
Focuses on performance measurement and reporting.
Performance measurement is necessary to provide feedback regarding SC performance and
resource utilization. Common performance dimensions include cost, customer service,
productivity, quality, and asset management measures. It is important for the system to
identify operational exceptions – its useful to highlight potential customer or operational
problems. It should also identify potential transportation, warehouse or labor constraints.
c) Decision Analysis
Focuses on software tools to assist managers in identifying, evaluating, and comparing
strategic and tactical alternatives to improve effectiveness.
Justin Gous TRL4864 BCOM Hons. Logistics
, Typical analyses incl, SC design, inventory management, resource allocation, transportation
routing, and segmental profitability.
Should incl, data maintenance, modeling, analysis and reporting.
d) Strategic Planning
Organizes and synthesizes transaction data into a relational database that assists in strategic
evaluation.
Focuses on info to evaluate and refine SC and logistics strategy.
2. The importance of Enterprise Resource Planning (ERP) for logistics and supply chain
operations and planning (4)
- ERP systems are the backbone of most firms’ logistics info and monitoring system
- The backbone maintains current and historical data and processes to initiate and
monitor performances
- ERP systems facilitate integrated operations and reporting to initiate, monitor and track
critical activities such as order fulfillment and replenishment
- ERP systems incorporate an integrated corporatewide database – referred to as a data
warehouse along with transactions to facilitate SC & planning operations
- ERP systems include financial, accounting and HR capability.
3. The specific SCIS modules needed for day-to-day SC operations (Enterprise Operation
Modules) (5)
a) Customer Accommodation
Facilitates the exchange of relevant and accurate info regarding order history, status and
demand generation info between a firm and its customers.
Major system components incl, 1. Customer relationship management (CRM), 2.
Forecasting, and 3. Order management
b) Logistics
The logistics processes required for customer order fulfillment and to coordinate receipt of
purchase orders are 1. Order processing, 2. Order assignment, 3. Warehouse operations, 4.
Transportation, 5. Yard management and 6. Purchasing
c) Manufacturing
Manufacturing systems form the info system foundation to plan and control manufacturing,
planning, and operation. The manufacturing model includes 1. Manufacturing Resources
Planning II (MRP II), 2. Capacity requirement planning (CRP), 3. Master production
scheduling (MPS), 4. Shop floor control, and 5. Quality management.
Justin Gous TRL4864 BCOM Hons. Logistics
, i. MRP II – the system that time-phases manufacturing schrdules ith procurement
requirements.
ii. CRP – Maps the schedule developed by the MRP II system to a daily production
schedule while considering equipment and personnel capacity constraints.
iii. MPS – Maps the capacity constrained schedule developed by CRP to specific
requirement sequences and timing.
iv. Production shop floor control and quality systems control the production
equipment and processes to monitor equipment operations or effective
operations and quality
d) Purchasing
Manages purchase order (PO) preparation, modification, and release and tracks vendor
performance and compliance.
Specific elements of purchasing system incl. administering Pos, sharing materials
requirements with suppliers and managing the overall supplier relationship.
For integrated SCM, purchasing must track and coordinate receiving and shipping activities
to optimize facility, transport, and personnel scheduling
e) Inventory Deployment
Represents one of the major enterprise integrators of sales, marketing, and financial goals.
Process must incl. both long and short-term elements. The LT element focuses on annual
and quarterly plans with the objective of coordinating the marketing and financial plans to
achieve enterprise goals.
Key objective – an integrated inventory plan through what is increasingly being termed an
Advanced Planning and Scheduling (APS) system.
[25 marks]
CHAPTER 1
1. Compare and contrast traditional (push) or anticipatory business practices with the emerging
time-based responsive (pull) business models (10)
Anticipatory Business Model
- What customers will demand in the future
- Business operations were driven by forecasts because info concerning purchase
behavior was not readily available and firms loosely linked together in a channel of
distribution did not feel compelled to share their plans
- The typical manufacturer produced based upon a market-forecast
See figure 1.2 (Anticipatory Business Model) on page 12
Figure illustrates the typical stages – forecast, purchase materials, manufacture,
warehouse, sell and then deliver.
Justin Gous TRL4864 BCOM Hons. Logistics
, - In nonmanufacturing firms, operations involved anticipatory purchase of inventory
assortments to accommodate expected sales
- Highly likely to misgauge customer requirements
- Each firm in the distribution channel duplicates the process
Responsive Business Model
- The fundamental difference in push and pull SC Arrangement is timing
- Responsive model seeks to reduce or eliminate forecast reliance by joint planning and
rapid exchange of info between SC participants
- Availability of low-cost info has created time-based competition.
- Managers are increasingly sharing info to improve both the speed and accuracy of SC
logistics
See figure 1.3 (Responsive Business Model) page 13
Managers share info to improve forecasting accuracy or even eliminate forecasts in an
effort to reduce anticipatory inventory deployment. Managers have the info technology
to rapidly obtain and share accurate sales data and exercise improved operational
control. When all members of SC synchronize their operations, opportunities exist to
reduce overall inventory and eliminate costly duplicate practices.
Figure 1.3 – a model that manufactures or assembles products to customer order.
Fundamental difference in responsive models is the sequence of events that drive business
practice.
Figure 1.2 has fewer steps required to complete the responsive process. Fewer steps = less cost
and less elapsed time from order commitment to delivery
2. Analyse 2 types of postponement that are common in responsiveness SC operations (10)
Manufacturing Postponement (MP) & Geographic Postponement (GP)
MP (or Form Postponement)
Vision – one of products being manufactured one order at a time with no preparoty work or
component procurement until exact customer specifications are fully known and purchase
confirmation is received.
Manufacturing lot size reduction requires a trade-off between line setup, switchover, and
associated procurement expense balanced against cost and risk associated with stockpiling
finished inventory.
Ideally to manufacture a standard or base product in sufficient quantities to realize economy of
scale while deferring finalization of features, such as color or accessories, until customer
comment is received.
Justin Gous TRL4864 BCOM Hons. Logistics
