QUESTION 3 [30]

For supply chain executives the first step is to clearly understand how the enterprise chooses to compete. This is important not only for the obvious reason of working together in the same direction, but also because supply chain must enable the business strategy; it is not merely an operational department.

3.1 With an aid of a diagram, discuss the basic movements of the logistics function. (10)

3.2 Discuss how performance ratios can be used to measure the process performance.(20)