Question 1:

1. How has transportation cost as a percentage of total logistics cost tracked since 1980, when transportation was deregulated? How do you explain this trend?

2. Why is least total cost performance not always what a customer prefers? Illustrate a situation that supports your answer.

3. What could be gained by "stapling yourself to an order"? Be specific and illustrate your answer.

4. What is the potential negative or downside to the long-term Starbucks-OHL collabora¬tion? Identify what you consider to be three major potential problems in such long-term relationships and suggest how these potential problems can be avoided or turned into a positive.

Question 2:

1. Illustrate a common trade-off that occurs between the functional areas of logistics.

2. Discuss and elaborate on the following statement: "The selection of a superior location network can create substantial competitive advantage."

3. Why are customer relationship operations typically more erratic than manufacturing support and procurement operations?

4. Describe the logistics value proposition. Be specific regarding specific customer rela¬tionships and cost.

5. Describe the fundamental similarities and differences between procurement, manu¬facturing, and customer relationship management performance cycles as they relate to logistical control.

6. Discuss uncertainty as it relates to the overall logistical performance cycle. Discuss and illustrate how performance cycle variance can be controlled.