Logistics management is important to an organization because:

A. Typically, 50 percent to 75 percent of an organization’s costs are attributed to logistics.
B. Logistics affects customer service.
C. Offshoring of services is increasing.
D. Its primary role is managing inbound logistics.

ANSWER: B. Logistics affects customer service.

Explanation:
Logistics management affects customer service.


Logistics outsourcing refers to a practice in which third-party logistics providers (3PL) manage some of the ______.

A. logistics functions
B. manufacturing functions
C. marketing functions
D. human resources functions

ANSWER: A. logistics functions


Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner. This is a

a. definition from an inventory perspective.
b. general definition.
c. definition offered by the Society of Logistics Engineers.
d. a definition provided by the Council of Logistics Management.

ANSWER: b. general definition.