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Question 42 - CSCP discussion

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The value that logistics provides within the supply chain can best be summarized as:

A.
satisfying customer expectations about availability and delivery at an acceptable total cost.
Answers
A.
satisfying customer expectations about availability and delivery at an acceptable total cost.
B.
meeting promised location and on-time delivery goals with minimal use of expediting.
Answers
B.
meeting promised location and on-time delivery goals with minimal use of expediting.
C.
establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives.
Answers
C.
establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives.
D.
providing accurate in-transit and delivery information to customers and salespeople.
Answers
D.
providing accurate in-transit and delivery information to customers and salespeople.
Suggested answer: A

Explanation:

Logistics plays a crucial role in the supply chain by ensuring that products are available and delivered to customers as expected. Here's a detailed explanation:

Customer Satisfaction: Logistics focuses on meeting customer expectations regarding product availability and delivery timelines, ensuring that customers receive what they want, when they want it.

Cost Management: Achieving these goals while maintaining an acceptable total cost is essential. This involves optimizing transportation, warehousing, and inventory management to balance service levels and costs.

Efficiency: Effective logistics minimizes delays and inefficiencies, ensuring a smooth flow of goods from suppliers to end customers.

Reliability: Consistent performance in meeting delivery promises builds trust and reliability with customers.

Logistics thus provides value by balancing customer service and cost efficiency, ensuring the right products are available at the right time and place.

Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2017). Supply Chain Management: A Logistics Perspective. Cengage Learning.

asked 16/09/2024
Bianca Duizer
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