Exam 1 short answer questions: (Monday Feb, 12th)
1. Distinguish between materials management and physical distribution.
a. Materials management: movement and storage of materials into a firm
b. Physical distribution: storage of finished products and movement to the customer
2. Compare and contrast the fragmented and unified logistical organizational structures.
a. Fragmented logistics structure: logistics activities are managed in multiple departments
throughout an organization.
b. Unified logistics structure: multiple logistics activities are combined into, and managed
as, a single department.
3. Define and explain how organizations might engage in benchmarking.
a. Benchmarking: a process that continuously identifies, understands, and adapts
outstanding processes found inside and outside an organization.
i. Organizations should engage in benchmarking to compare performance and
process. Performance benchmarking identifies gaps in a desired result while
process benchmarking provides information as to why the gaps exist.
4. Define supplier development and explain why it is becoming more prominent in some
organizations. (pg. 99)
a. Supplier development: refers to aggressive procurement involvement not typically part
of supplier section and can include a purchaser initiating contact with a supplier or a
