Bill Gates of Microsoft



Chapter 1

Q / Bill Gates of Microsoft describes the 2000s as ‘business @ the speed of thought’. Discuss the importance of speed in the supply chain. How can speed be increased within the supply chain?


Q / Suggest logistics performance priorities for the following, explaining why you have come to your conclusions: a low fare airline such as Ryanair; b a fast food chain such as McDonald’s; c an overnight parcels service such as DHL.


Chapter 3

Q / Why are processes important in terms of managing logistics? Suggest how the processes of plan, source, make, deliver and return might differ in the case of the two factories Simple and Complex described in section 3.3.


Q / What are the advantages of cutting the ‘total cost cube’ in different ways? Summarize the different perspectives on logistics costs provided by fixed/variable, direct/indirect and engineered/discretionary costs, and by activity-based costing.

Chapter 4

Q / What are the benefits and limitations of international logistics? Illustrate your response by referring to sourcing of standard shirts and fashion blouses (shown in Table 1.1 in Chapter 1) from manufacturers in the Far East. Also, refer to the time v cost trade-off illustrated in Case study 4.4.

Table 1.1 in Chapter 1) from manufacturers in the Far East.
Table 1.1 Different product ranges have different logistics performance objectives
Classic shirts Fashion blouses
Product range Narrow: few colours, standard
sizes Wide: many colours, choice of
styles, designer labels
Design changes Occasional Frequent (at least every season)
Price Everyday low price Premium prices
Quality Consistency, conformance to
(basic) spec High grades of material, high
standards of workmanship
Sales volumes Consistent sales over time Sales peak for given fashion season
Order winners Price Time-to-market
Order qualifiers Quality
Availability Price
Logistics priorities Cost
Quality Speed




Q / What is meant by the term ‘corporate social responsibility’ as it applies to international logistics? Illustrate your answer by referring to the Probo Koala disaster and the issue of child labour in the Sialkot soccer ball industry described in section 4.7.


Chapter 5

Q / Why is time important to competitive advantage? Identify and explain six key contributions that speed can make to logistics strategy.


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