ASSIGNMENT FOR

NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)

BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)

1. What is transport?
 The action of carrying or taking people or goods from one place to another
 It is the easiest way of movement of humans, animals and goods from one location to
another.

2. Define the term logistics?

 Logistics refer to the process of coordinating and moving resources – people, materials,
inventory, and equipment – from one location to storage at the desired destination.
 According to the Council of Logistics Management (CLM) “Logistics is the process of
planning, implementing and controlling the efficient and effective flow of goods,
services and related information from point of origin to point of consumption in order to
meet customer requirements”.

3. What is warehousing?
 A warehouse is a building for storing goods. 
 Warehousing is the storing of physical goods before they are sold
 The main function of a warehouse is to store products or goods before moving them to
another location.

4. What is materials management?

 Material management is a scientific technique, concerned with Planning, Organizing
&Control of flow of materials, from their initial purchase to destination
 The goal of materials management is to provide an unbroken chain of components for
production to manufacture goods on time for customers

5. Write any there advantages of transporting product via pipeline?

1. Pipelines are ideally suited to transport the liquids and gases.
2. It involves very low energy consumption.
3. It needs very little maintenance
4. Pipelines arc safe, accident-free and environmental friendly

6. What is stocking policy?

 It is a policy to decide:
a) What service level you want to provide your customers.
b) What kind of replenishment or order cycle you want to use.

7. Name any two animals used for terrestrial transportation

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NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)
BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)
 Elephant - Elephants are used to trek through the dense forests
 Camel - Since very old times, camels have been one of the most useful modes
of transport.

8. Define packaging
 It refers to use of all the materials (boxes, bags, paper, etc.) that are used to cover or
protect goods before they are sold
 Packaging means the wrapping or bottling of products to make them safe from damages
during transportation and storage.

9. What is containerization?
 Containerization is a method of transporting freight by placing it in large containers.
 Containerization is the practice of carrying goods in containers of uniform shape and
size for shipping

10. Define the term supply chain management

 Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products.
 Supply chain management is the integrated process of planning and control of the flow
of goods, information and money across the entire value and supply chain from the
customer to the raw material supplier.

11. What is an EOQ?

 Economic Order Quantity (EOQ) is the ideal order quantity a company should purchase
to minimize inventory costs such as holding costs, shortage costs, and order costs.

12. What is an inventory?

 Inventory or stock is the term for the goods available for sale and raw materials used to
produce goods available for sale

13. Explain the concepts of logistics

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NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)
BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)

Logistics involves the range of activities related to the production and distribution of goods for
consumption; it is composed of two separate but integrated branches; 
A. Materials Management 
 Material management involves all the activities related to the production of parts and
finished goods, including their packaging and eventual recycling or reusing.
B. Physical Distribution
 Physical distribution involves all the activities related to making parts and finished goods
available for consumption, particularly transportation and warehousing.

14. What are the advantages and drawbacks of containerization?

Advantages Drawbacks
 It can be handled anywhere in the  Needs large consumer of terminal
world space
 It can be used to carry a wide variety  It needs handling infrastructures
of goods and equipment
 Container transportation offers lower  Create additional costs and time for
transport costs  terminal operators
 Operations are minimal and rapid  Container takes the same amount of
space
 The container is its own warehouse  Possibility of theft and losses
 Container takes the same amount of  Container takes the same amount of
space space

15. What is the importance of warehousing in a logistics system?

1. Inventory Control: A warehouse helps manage a large amount of inventory for a business. It

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NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)
BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)
assists in matching the supply with the demand of a rapidly changing environment.
2. Centralization of Goods: Since all the goods are stored in a central location, it becomes
easier to receive, store and distribute the products.
3. Value Adding Operation: The warehousing system helps in increasing the utility value of the
goods, as the products are available at the right place at the right time.
4. Economic Benefit: Through efficient operations, a warehouse offers a wide range of
economic benefits to the businesses. Various costs including outbound delivery costs,
shipping costs, transportation costs etc. are cut down.
5. Social Benefit: A warehouse also serves a wide range of social benefits to the clients, it
helps them keep a safety stocking for the time of emergency, such as delay in the
transportation and shipment having defective goods etc.
Cross- docking: It is a process of moving the goods directly from receiving the shipping with
little or no inventory. It is a way to move the products more efficiently and effectively.

16. List out different types of warehouses

1. Public Warehouses: Public warehouses are owned by governmental bodies and made
available to private sector companies
2. Private Warehouses: A private warehouse is a warehouse which is privately owned by
wholesalers, distributors or manufacturers.
3. Bonded Warehouses: A bonded warehouse is a type of warehouse that can store imported
goods before customs duties are required to be paid on them.
4. Smart Warehouses: A smart warehouse is a type of warehouse where the storage,
fulfillment process and management is automated with AI.
5. Consolidated Warehouses: A consolidated warehouse is another type of warehouse that
takes small shipments from different suppliers and groups them together into larger
shipments before distributing them to buyers.
6. Cooperative Warehouses: A cooperative warehouse is a warehouse which is owned and run
by cooperative organizations like a farmer or winery co-op.
7. Government Warehouses: These warehouses are directly owned and controlled by the
government, such as seaport storage facilities.
8. Distribution Centers: A distribution center is a storage space which is usually built with
specific requirements in mind.

17. What are the advantages & disadvantages of railway transport?

Advantages Disadvantages

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NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)
BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)
1. Dependable 1. Huge Capital Outlay
2. Better Organized 2. Lack of Flexibility
3. High Speed over Long Distances 3. Lack of Door to Door Service
4. Suitable for Bulky and Heavy Goods 4. Monopoly
5. Cheaper Transport 5. Unsuitable for Short Distance and
6. Safety Small Loads
7. Larger Capacity 6. Booking Formalities
8. Public Welfare 7. No Rural Service
9. Administrative Facilities of 8. Under-utilized Capacity
Government 9. Centralized Administration
10. Employment Opportunities

18. What are the unique characteristics of air transportation?

1. Unbroken Journey: Air transport provides unbroken journey over land and sea. It is the
fastest and quickest means of transport.
2. Rapidity: Air transport had the highest speed among all the modes of transport.
3. Expensive: Air transport is the most expensive means of transport. There is huge
investment in purchasing aero planes and constructing of aerodromes.
4. Special Preparations: Air transport requires special preparations like wheelers links,
meteorological stations, flood lights, searchlights etc.
5. High Speed: The supreme advantage of air transport is its high speed. It is the fastest
mode of transport and thus it is the most suitable mean where time is an important
factor.
6. Comfortable and Quick Services: It provides a regular, comfortable, efficient and quick
service.
7. No Investment in Construction of Track: It does not require huge capital investment in
the construction and maintenance of surface track.
8. No Physical Barriers: It follows the shortest and direct route as seas, mountains or
forests do not come in the way of air transport.

19. What are the objectives of packaging?

1. Physical Protection – from shock, vibration, compression, temperature, etc of the

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ASSIGNMENT FOR
NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)
BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)
objects enclosed in the package.
Barrier Protection – protecting as a barrier from oxygen, water vapor, dust, etc
Containment or Agglomeration - Small objects are generally grouped together in one
package for transport and handling efficiency. Alternatively, bulk commodities (such as
salt) can be divided into packages that are a more suitable size for individual households
Information transmission - Information on how to use the product, its contents, recycle,
or dispose of the package or product is given on the package or label.
Reducing theft - Packaging that cannot be re-closed or gets physically damaged with
signs of opening aids in the prevention of theft.
Convenience – includes features which add convenience in distribution, handling,
display, sale, opening, re-closing, use, and re-use.
Marketing - The packaging and labels can be used by marketers to encourage potential
buyers to purchase the product.

20. Briefly discuss the objectives of logistics

1. Increased Efficiency
 Increasing efficiency for both inbound and outbound logistics and transportation should
always be a top priority for every logistics organization. 

2. Rapid Response
 Similar to efficiency, customer satisfaction plays a crucial role in the overall success of a
logistics company. 

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BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)

3. Fewer Unexpected Events

 Unexpected events can happen with every aspect of logistic operations. An unexpected
disruption during manufacturing, goods arriving damaged at their final destination,
delays with the customer order receipt, or wrong delivery, can all result in wasted time
and resources.  

4. Minimum Inventory
 While on the topic of minimums and unexpected events, inventory management is
critical. In the end, aiming to keep these events at a minimum will also involve asset
commitment and relative turn velocity.

5. Reduced Transportation Cost

 One of the major costs associated with logistics is transportation. Lowering the cost of
transportation requires movement consolidation. 

6. Quality Improvement
 Another goal that needs to be taken seriously is long-term quality improvement,
increasing sales and boosting customer satisfaction. 

21. Explain the five elements of logistics in details

1. Supply
 Consider the supply of materials that you have as this would help meet your self-
imposed quota for the company to profit.
2. Transportation
 This is where logistics management applies. A company should have the transportation
services needed to move the products and deliver them in a timely and efficient manner
to the customers.
3. Facilities
 Different companies employ different services according to their needs. Each of them
has a different facility which helps produce the products and services which they

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NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)
BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)
eventually offer to customers. These facilities should be tailor-made and fit the client's
and customer's specifications.

4. Services
 From customer service, to delivering an order on time, to resolving order-related
problems, a company should employ a logistics management service provider which will
provide all of these services.
5. Management and Administration
 This is an aspect of logistics management which is common to all organizations. A well-
balanced and knowledgeable staff and leaders make for a better, service-oriented
company.

22. Discuss the relative advantages and disadvantages of Air & Waterways modes of
transportation
Air Transportation
Advantages Disadvantages
1. High Speed 1. Risky
2. Quick Service 2. Very Costly
3. No Infrastructure Investment 3. Small Carrying Capacity
4. Easy Access 4. Unreliable
5. No Physical Barrier 5. Huge Investment
6. Natural Route
7. National defense

Waterways Transport
Advantages Disadvantages
1. Less Maintenance Cost 1. Slow Speed
2. Cheap 2. More Risky
3. Useful for Bulky Goods 3. Limited Area of Operation
4. Useful During Natural Calamities 4. Seasonal Character
5. Helpful in Defense 5. Unreliable
6. Important for Foreign Trade 6. Unsuitable for Small Business

23. What are the basic principles in good product packaging design?

Principle 1: Packaging design is “the face” of a brand
 Packaging is the face of the brand and the golden key to connect your business with the
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NON – MAJOR ELECTIVE PAPER (I - B.COM CA - 2020 – 21 Batches)
BASIC ELEMENTS OF LOGISTICS MANAGEMENT (BCS-NME1A)
customers, so the first and most important rule in product packaging design is to ensure
it transfer the brand’s message, to ensure that your products are not to be confused
with other competitors.
Principle 2: Packaging design should be consumer-friendly
 When it comes to packaging design, a designer must understand that it should be
friendly to consumers. It should be made for the consumers.
Principle 3: Creative packaging design
 Creativity is the principle required to have a beautiful, impressive packaging design.
Product packaging with an innovative design will surely attract consumers, and make
them outstanding from thousands of other products displayed on the same shelf
Principle 4: Packaging design should be multi-purpose
 A packaging design should also be convenient for consumers to use. In product
packaging design, designers should not only focus on the packaging of products, but also
care about what customers will use this packaging for later
Principle 5: Pay attention to product packaging material
 The last element that makes up a perfect packaging design is the material. The material
will also confirms that the enterprise is dedicated and focused on its products.

24. What is the importance of inventory policy?

1. Inventory policy is an integral part of inventory management.
2. It helps manage stock flow in a better manner. Inventory control systems take an
accurate measure of the current assets, inventory in reserve, and provide a better idea
about the financial condition.
3. Inventory policy is also essential to maintain a proper balance of different types of
inventory in storage.
4. Insufficient stock can cause a manufacturing halt. Further issues can create a negative
impact on the customers.
5. A sound inventory policy will ensure a business has enough raw materials to smoothly
run the manufacturing and supply of finished products.
6. Inventory policy also plays a crucial role to avoid over-accumulation.
7. Various inventory management techniques ensure products do not sit idle in
warehouses. Also, certain businesses may integrate disposal methodology to replace
overstocked products by means of disassembly and refurbishments.