Chapter 1

Introduction to Business Logistics

Upon completion of this chapter, the learner must be able to:

1. Explain the concept of supply chain management.

2. Explain the concept of logistics management.

3. Explain the concept of reverse logistics.

4. Logistical decisions are classified into three ways. List and describe these
three ways.

5. Outline the main objectives of logistics management.

6. Name the activities in logistics management.

7. Explain the difference between inbound and outbound logistics/Explain the

difference between materials management and physical distribution
management.

8. Indicate the three main components of logistics management.

9. List the factors that need to be taken into account in a transport system.
 Chapter 2

Competitive advantage created by logistics

Upon completion of this chapter, the learner must be able to:

1. Explain how a firm can gain a competitive advantage through logistics.

2. Discuss the value-added role of logistics.

3. Name the factors that measure customer service performance in logistics.

4. Availability is based on three performance measures. List and describe these

performance measures.

5. List and describe the operational logistics service performance measures.

6. To achieve and retain competitive advantage requires that supply chain

service performance must be stated from the point of view of the customer.
Indicate the measures on which feedback from the customer is required
 Chapter 4

Tactical logistics management and supply chain integration

Upon completion of this chapter, the learner must be able to:

1. List the main tactical management objectives in a supply chain.

2. Explain the management of goods flow within a supply chain.

3. Give a description of a Master Production Schedule (MPS).

4. Give a description of the Materials Requirements Planning (MRP) system.

5. Give a drawing of the MRP system.

6. Give a description of the Bill of Material (BOM).

7. Explain the difference between a pull and a push system.

8. List the advantages of a push system.

9. List some disadvantages of a push system.

10. List the advantages of a pull-based system.

11. List the disadvantages of a pull system.

12. Describe a push-pull-based supply system.

13. Give an example of a push-pull supply chain system.

14. Explain the bullwhip effect.

15. Name the consequences of an increase in variability in demand.

16. List the causes of long production cycle and order lead times.
 Chapter 10

Inventory management

Upon completion of this chapter, the learner must be able to:

1. The functions of inventories can be classified into certain broad categories:

List these categories.

2. Explain the meaning of decoupling in inventory.

3. Buffering function of inventory involves the protection of the business or

supply chain against three types of uncertainty. Name these three types of
uncertainties and provide an example of each type of uncertainty.

4. List six possible costs attached to a stock out.

5. Name the different classifications of inventory based on its position in the

supply chain.

6. List and describe the different classifications of inventory based on its

purpose in the supply chain.

7. Indicate the reasons why firms hold speculative stock.

8. Explain the term “inventory turnover”.

9. List some of the examples of inventory-carrying costs.

10. Give three examples of inventory risk costs.

11. Indicate the main requirements for a JIT system.

 Chapter 12

Packaging and containerisation

Upon completion of this chapter, the learner must be able to:

1. List and describe the different levels of packaging.

2. Describe the impact of packaging on warehousing and materials handling.

3. Discuss the role of packaging in air transport.

4. Give an explanation of a unit load device (ULD) container.

5. Discuss the role of packaging in road and rail transport.

6. Outline the role of packaging in ocean transport.

7. Give as description of a pallet in logistics.

8. Give a description of a pallet box.

9. Indicate the legislation pertaining to packaging.

10. List the two commonly used containers in international freight movement.

11. Differentiate between one and two TEU’s.

12. List the various types of containers that are available to meet the general or
specific logistics needs.

13. Give an explanation of smart containers.

14. Indicate what a smart container can detect.

 Chapter 13

Equipment used in facilities

Upon completion of this chapter, the learner must be able to:

1. Explain the difference between a belt and roller conveyor.

2. Explain a merge system on a conveyor belt.

3. Give a brief explanation of in-line weighing and measuring on a conveyor belt.

4. Identify and explain how diverters and sorters are used on a conveyor.

5. Explain an angled roller belt.

6. Explain how spreaders and twist locks are used in moving containers.

7. Describe a reach stacker.

8. Describe a straddle carrier.

9. Give one other name for a straddle carrier.

10. Outline the use of quayside container cranes.

11. Give one other name for a quayside container crane.

 Chapter 15

Transport system

Upon completion of this chapter, the learner must be able to:

1. List the three basic forms of transportation.

2. List two advantages and disadvantages of air transport. (see table

completed in class)

3. Indicate four conditions of a commodity that makes conveying by air the most
desirable form of transport.

4. List two advantages and disadvantages of road transport. (see table

completed in class)

5. Name two advantages and disadvantages of rail transport. (see table

completed in class)

6. Give an operational overview of pipeline transport.

7. Name two advantages and disadvantages of pipeline transport. (see table

completed in class)

8. List two advantages and disadvantages of sea transport. (see table

completed in class)

9. Give a description of a terminal.

10. List some examples of terminals.

11. Indicate some of the value-adding activities of terminals.

12. List the five factors of freight that affect the transport costs.

13. List the two groups of transport service providers.

14. Explain the difference between private transport operators and professional
carriers.

15. Explain the difference between a freight forwarder and a freight broker.
 Chapter 16

Transport Cost Structures

Upon completion of this chapter, the learner must be able to:

1. List the main costs to consider when purchasing a vehicle.

2. Name the types of transport resources that need to be considered in road

transport costing.

3. Road transport costs are broken down into three main categories. List these
three main categories.

4. Indicate the key vehicle standing or fixed costs of road transport.

5. List the key vehicle running or variable costs of road transport.

6. List the two components of overhead costs in road transport.

7. Outline fleet overheads in vehicle costing.

8. Outline business overheads with regards to road freight transport.

 Chapter 17

Transport management

Upon completion of this chapter, the learner must be able to:

1. Carrier selection is a strategic management decision. Discuss the efficiency

considerations in making the decision whether to invest exclusively in private
transport or outsource the transport function to a professional carrier.

2. Explain why some firms have their own private transport function.

3. Name and briefly discuss the four broad methods for consolidating traffic in
transport management.

4. Give an explanation of a unit load.

5. List and describe the advantages of unit load.

6. Name the disadvantages of using containers.

7. Give an explanation of intermodal transport.

8. Outline the guidelines for routing and scheduling long-distance trips.

9. Outline some guidelines for routing and scheduling collection and delivery
trips.

10. Indicate the five main objectives of vehicle routing and scheduling.

11. Explain a tachograph analysis in road freight transport.

12. Explain the difference between tracking and tracing.

13. Differentiate between a demurrage and detention charge in transport
management

Chapter 19

Managing International Supply Chains

Upon completion of this chapter, the learner must be able to:

1. Give an explanation of a distribution channel in an international supply chain.

2. Name the parties that are included in distribution channels in international

supply chains.

3. Outline the following distribution channels:

a) Government department
b) Industrial Buyers
c) Wholesalers
d) Retailers

4. Explain the term export agent.

5. List the benefits of having an export agent in a global supply chain.

6. Give an explanation for a loading broker in ocean transportation.

7. Discuss the importance of customs departments in international trade.

8. Give an explanation of a packing list.

9. Give a brief description of a bill of lading.

10. List and describe the following bill of ladings:

a) Non-negotiable bill of lading
 b) Air waybill
c) Ocean bill of lading

11. Explain the use of incoterms in international trade.

12. When are incoterms included in a contract of sale?

 Chapter 20

The product returns management process and reverse logistics.

Upon completion of this chapter, the learner must be able to:

1. The returns management process includes the planning, implementation and

execution of three factors. Name these three factors.

2. Explain the term “‘avoidance” in reverse logistics.

3. Explain the term “gatekeeping” in reverse logistics.

4. Explain what is meant by the product disposition process.

5. Outline what product returns management includes.

6. Describe waste disposal in product returns management.

7. Product returns can occur at four general stages of a products movement

through the supply chain. Name these stages.

8. Products can be returned to an upstream point in the supply chain for various
reasons. List four of the most common causes.

9. Returned products and materials can move along one of various paths. Name
some of these paths.

10. Name and give an example of the four categories of waste-disposal.

11. Indicate the financial impacts of reverse logistics on various factors.

12. Discuss logistics and the environment.

13. Explain what ISO 14000 addresses in terms of the environment.

14. Explain the term carbon footprint.

15. Give an example of a strategy that can be followed by an organisation to
achieve carbon footprint reduction.

16. Describe a closed-loop supply chain.

 Chapter 21

Maritime Logistics

Upon completion of this chapter, the learner must be able to:

1. Explain the following terms:

1.1 Shipping line
1.2 Ship’s agents
1.3 Berth
1.4 Stevedoring
1.5 Line in
1.6 Line out
1.7 Stowage plan
1.8 Lost slots

2. List and describe the four main types of documentation used in maritime logistics.

3. List three other documents other than the four main types of documentation
required when transporting goods on an international basis.

4. Describe the following common ship types and their cargos:

4.1 Cellular container vessel
4.2 Break bulk freighter
4.3 Roro vessel
4.4 Oil tanker
4.5 Specialised heavy lift vessel
4.6 Bulk carrier
5. Explain the purpose of the Transnet National Ports Authority in South Africa.

6. Name the eight ports in South Africa.

7. List the four container terminals in South Africa.

8. Port infrastructure is provided for five commodity sectors. Name these five
commodity sectors.

9. What is the purpose of the Port of Ngqura?

10. Explain the term “break bulk cargo” in shipping.

11. List and describe briefly the different types of berths in shipping.