Essay and short Q answer

Short Answer questions: 5 points each

1. Warehouses have been described as market extenders through enhancement of transportation capabilities. Describe how this can be true.

2. Describe shortly some fundamental issues that must be addressed when joining a Supply Chain Management partnership as a second tier vendor.

3. Explain how Value Pricing in transportation can help both carriers and shippers

4. Why should safety stocks be considered a form of "insurance?"

5. Why does a transporter think in terms of keeping equipment moving?

Essay Question (45 points) This answer should be a complete essay that draws from all of the various sources of information that you have gained during this course. DO NOT MAKE THIS A SHORT ANSWER.

Your electronics manufacturing company has undergone a huge growth process, but now is facing severe competition from similar enterprises. As a means of cutting costs, your boss is thinking of hiring out its logistics operations to a third person logistics firm. What would you advise him to consider as he makes his decision. (In point of fact, DOD is farming out a lot of logistics problems to private industry. So, like the question above, why would a DOD manager consider doing so. If you want to answer this question from a DOD perspective, feel free to do so.)

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