Logistics Measurement System: Key Components of Income Statement and Strategic Profit Model

1  Question 3 - What are the two key components of an income statement?

2  Question 5 - What are the key components of the strategic profit model? How can it be used to examine the affect of logistics decisions?

3  Question 9 - Do you agree or disagree that return on assets is a good way to examine operational efficiency? Why?

4  Question 10 - How does logistics strategy connect to overall corporate strategy? Is it a one-way or two-way connection?

5  Question 14 - Do you think corporate cultures are relevant for designing a logistics measurement system? Why or why not?

6  Question 19 - Do you agree or disagree with the sentiment that logistics measurement systems need to include both financial and nonfinancial

measures? Why?

Chapter 4:

1  Question 1 - Discuss several issues that influence the organization of logistics activities within a firm.

2  Question 4 - Describe the hierarchical and matrix organizational design. 

3  Question 5 - From a logistics perspective, how is network organizational design manifested in terms of relevancy, responsiveness,and flexibility?

4  Question 13 - Describe some potential logistics social responsibility dimensions.

5  Question 17 - What are some ways in which the Transportation Security Administration is attempting to improve the security of the U.S. transportation system?

6  Question 18 - In what ways is the legislation requiring 100 percent scanning of U.S.-bound containers likely to be disruptive to international trade?

Question 20 - What are some types of complexity that are affecting logistics activities in a firm?

Income statement components in logistics management

1) The two components of an income statement are:-

a) Income – Cash inward, particularly on a usual source, in the course of investment or work.
b) Expenses – Money goes out for some particular operations by a company.

2) The two components of strategic profit model are:-

a)    Profit Margin – Total earnings separated by total revenues is known as profit margin.
b)    Asset Turnover – It is a gauge which shows how a firm deploy the company’s assets.

3) Return on assets is defined as total earning by a company divided by total assets of the company. Shareholder can put in interest cost back interested in total profit when performing computation.

4) The connection of logistic strategy to corporate strategy is it shows the marketing background of a company as well as manufacturing conditions of the product which the company sells in the market. It is a two way connection.

5)    Yes, corporate cultures are relevant for designing a logistics measurement system by
a)    Choosing the right strategy
b)    Beware of misalignment
c)    Identify the right change agents
d)    Gain executive and management support.

6) The logistic measurement system needs to include both financial and non financial measures because a logistic measurement measures how to achieve the consumer’s requirement in the course of control and proper plan. It reduces the cost of the firm. So, it can be conclude that the logistic measurement thinks about the company’s financial issue as well as customer’s satisfaction.

Chapter:- 4

1) The influence of the organisation of logistics activities within a firm are:-

a) Logistic planning- Logistic planning is the part of the logistics management which plans for the company that how the entity can controls and how to give a better services to the customer and controls the Goods of the entity.
b) Quality control – Logistic activities also reins the quality of the product so that the consumer gets satisfied by having the company’s product.

2) Hierarchical structure means the chain of demand looks as a pyramid. The workers are of large number than the supervisor. Above the supervisor stands the ranking officer. Above all stands the company’s president.

Matrix structure means the management of company’s growth by drawing the company’s workers as a team without removing them from their positions.

3) Relevancy means to satisfy the present and rising consumer’s requirement by developing a good relationship with their consumer. Responsiveness shows the company to accommodate the consumer’s needs. Flexibility of a company means how the firm can plan to serve their consumers at any situation.

4) Some potential logistics social responsibility dimensions are:-
a) Warehousing – keeping in control of the products, materials of the company.
b) Purchasing – controlling the purchase of the material, products of the company.
c) Transportation – transporting the products to the warehouse and to the customers.

5) The Transportation Security Administration is attempting to improve the security of the U.S. transportation system by screening the luggage’s very well. They checked the luggage’s lock system very carefully so that no one can put anything inside the baggage. They have also improved in data security.