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CHAPTER 2: PURCHASING AND SUPPLY IN BUSINESS ENVIRONMENT (Q2. What is the…
CHAPTER 2: PURCHASING AND SUPPLY IN BUSINESS ENVIRONMENT
Q1. What is the business environment in logistics?
Meaning
the combination of internal and external factors that influence a company's operating situation.
Consist of
Micro environment
Market environment
Macro environment
Q2. What is the difference between internal and external business environment in logistics?
Influence
Internal business environment
Directly and regularly
External business environment
Indirectly and distantly
Element
External business environment
population, economic, cultural, political, technologies.
Internal business environment
competitor, organization, supplier, market intermediaries, customer.
Controllable
Internal business environment
Yes
External business environment
No
Alternatively know as
External business environment
macro environment
Internal business environment
Micro environment
Meaning
Internal business environment
Nearby environment, under which the firm operates.
External business environment
General environment that affect the working of all business enterprise.
Q3. Briefly explain the internal elements of the business environment in logistics?
supplier
market intermediates
customer
competitors
public
Q4. Briefly explain the market environment in logistics?
~ is part of external element that consist customer, supplier, competitors, civil society, industry regulator and strategic alliances.
Q5. Explain the macro factors for business environment in logistics?.
demographic
technological
political
cultural
economic
Q6. What is the supply chain umbrella? Draw the diagram and explain.
~encompasses activities that are part of network supporting efficient and effective flow of goods and information across the supply chain.
inbound transportation
order processing
production planning, scheduling and control
outbound transportation
material/ inventory control
receiving, material handling and storage
shipping
warehouse/ distribution
Q7. Is the supply chain different from supply management?
yes.
supply chain entire network of entities, directly or indirectly interlinked and interdependent in serving the same customer
supply management is the process of obtaining and managing product and services needed to operate business.
Q8. Explain the different between inbound and outbound transportation in supply chain umbrella.
inbound transportation
the cost incurred in bringing material into a facility
outbound transportation
the cost of sending material out of a facilities.
Q9. What are the 5 rights of purchasing? Briefly explain.
right quality
right quantity
right price
right time
right sources
