Essay 1 What is logistics?

　　In the current business environment,logistics is generally accepted as a very important

　　element for the economic development and business growth of a region,especially a port city.

　　In reality,what does logistics mean? In which way does it operate?

　　For simple definition,logistics is a set of procedures in which commodity is delivered in an efficient manner from suppliers to customers.There are three key aspects to the concepts:

　　1.Movement of goods

　　Goods can be considered as valuable objects,such as cargo and materials that are valuable and purchasable through commercial transactions and processes.Flow can be determined as methods in which goods are moved or transferred between locations,intermediaries and merchandisers.Modes of transportation include motor,rail,water,air and pipeline.

　　2.Direction of the flow of goods

　　In the open market place,buyers and sellers represent two ends of a cormmercial transaction.Buyers are usually customers who demand the goods,while,as sellers are suppliers who provide such goods.When a transaction is agreed upon (sometimes payment is completed,other times the payment is arranged to be completed at a later stage),the suppliers have the responsibility to arrange for the goods to be delivered to the customers.

　　3.Efficient management of the flow process

　　The transportation of goods should bear low cost and ensure safety and punctuality.It should do its best to avoid wasting customers' resources.Currently,the flow of goods is generally controlled by both hardware and software.By hardware,we mean logistics facilities and equipment,such as ports,warehouses and trucks,ships,railroad,cars and airlines.By software,we mean information system,standardization and datasharing.

　　Questions:

　　51.What is logistics? ( )

　　A.It is a set of procedures in which goods are delivered from suppliers to customers in the manner of cost efficient and well service.

　　B.It is a part of a process to deliver goods and services from one place to another.

　　C.It is a process to transport and store goods.

　　D.It is the information system for goods movement.

　　52.Which of the following is a key aspect of logistics? ( )

　　A.Goods. B.Customers.

　　C.Suppliers. D.Movement of goods.

　　53.Which of the following is a transportation mode for goods delivery? ( )

　　A.Clothes. B.Services. C.Motor. D.Electricity.

　　54.When a transaction is agreed upon,does every payment need to be completed? ( )

　　A.Yes,completely.

　　B.Notneccessary.

　　C.Depend.Sometimes fully completed,sometimes at a late rstage.

　　D.Completed based on whatever suppliers need.

　　55.How is flow of goods controlled? ( )

　　A.By hardware. B.By software.

　　C.By people. D.By both hardware and software.

　　Essay 2 Transportation Decision

　　Transportation decision consists of the following parts:

　　1.Selection of the mode is determined by the consideration of distance,cargo weights,linkage,timing and other requirements.Generally speaking,rail has high fixed cost and the relatively low variable cost.It can move heavy,large quantity of cargo in the long distance.But,rail is disadvantaged because of the longer transit time and less frequent service than motor.

　　Motor carriers such as truck companies offer door-to-door service,that is,the cargo can be shipped from the shipper's warehouse to theconsignee's.Trucking fixed cost is the lowest of any carrier,because the equipment is fairly cheap and themotor carriers do not have to invest in the roads on which they run their operations.However,their variable costs are very high.Its expenses include two major components:firstly,the pick-up and delivery costs;secondly,there are gas or fuel costs,labor expenses and toll roads fees to be paid to highway and toll road operators.Therefore,motor transport is good for cargo with small quantity to be shipped within shortvdistances.

　　Water is the predominant choice of transportation as it has the capacity to take greatest quantity,travel longest distance with lowest cost.Transport by sea accounts for 80% of international trade.The major expenses for water are expenses associated with investment and maintenance of the ships and terminals.For example, a 100000- ton container ship costs US$ 200 million.Terminal associated costs include harbor fees and the cost for loading and unloading the goods.

　　Transport by air has the highest cost but it is fast with the lowest ratio of loss and damage. If you need to deliver an urgent order,there is little choice but by air.

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