Chapter 11 Questions
- What is procurement? What is its relevance to logistics?
Procurement refers to the raw materials, component parts, and supplies bought from outside organizations to support a company’s operations. It is closely related to logistics since acquired goods and services must be entered into the supply chain in the exact quantities and at the precise time they are needed.
3. Discuss three potential procurement objectives.
The text provides five potential procurement objectives that could be discussed. They are supporting organizational goals and objectives; managing the purchasing process effectively and efficiently; managing the supply base; developing strong relationships with other functional groups; supporting operational requirements.
10. Discuss the Malcolm Baldrige National Quality Award.
The Malcolm Baldrige National Quality Award was established in the 1980s to recognize U.S. organizations for their achievements in quality and performance. The Baldrige Quality Awards, which are restricted to organizations headquartered in the United States, require interested parties to submit a formal application that is evaluated by a committee largely made up of private sector experts in business and quality. Seven categories are evaluated: business results; customer and market focus; human resource focus; leadership; measurement, analysis, and knowledge management; process management; and strategic planning.
Chapter 12 Question
2. Discuss some of the challenges associated with international logistics.
Economic changes, such as changes in the relative value of currencies, have a profound affect on international trade patterns. When one country’s currency is weak relative to other countries, it becomes costly to import products but exports often surge; when one country’s currency is strong relative to other currencies, the opposite occurs.
Differences in regulations, laws, and legal systems also add to the challenges of international logistics and the degree of enforcement of existing regulations and laws is not uniform from country to country. Cultural considerations, such as differences in language, also contribute to international logistics challenges. Moreover, for goods moving in cross-border trade, it is not safe to assume that cargo handlers can read English and it would not be unusual for some cargo handlers to be illiterate.
12. What are the two primary purposes of export packing?
One function is to allow goods to move easily through customs. For a country assessing duties on the weight of both the item and its container, this means selecting lightweight packing materials. The second purpose of export packing is to protect products in what almost always is a more difficult journey than they would experience if they were destined for domestic consignees.