chapter 1 staffing

Forecasts are based on what two things? a. What has happened in the past and knowledge regarding how a system works b. Performance measurement and program management c. Specifications and sourcing strategy d. Fulfilling orders and creating a production plan e. None of the above

A

In making an actually purchase decision, if all else is equal, most people will: a. Opt for the low-cost option b. Opt for the environmentally responsible option c. Opt for the sustainability option d. Opt for the fair labor standards option e. None of the above

A

In supply chain strategy, which of the following is true? a. "Pushes" are driven by forecast, while "pull" is driven by actual demand b. "Pushes" are driven by Marketing, while "pull" is driven by logistics c. "Pushes" are driven by Logistics, while "pull" is driven by market forecasts. d. What drives "pushes" and "pull" is driven by the specific industry. e. Only A, B and D

A

Integrated Business Planning (IBP) helps you align _______ & _______. a. Supply, demand b. Price, location c. Safety stock, inventory d. Suppliers, customers e. Cause, effect

A

Kanbans provide which of the following? a. A visual signal of consumption and the need to replenish supply b. Less time for suppliers to react to demand changes c. Financial incentives for customers to reduce inventory d. Support for economies of scale in procurement e. Salespeople with insights on the most profitable products to sell

A

Scope 1 emissions are defined as . . .? a. Direct GHG emissions from sources that are owned or controlled by the entity. b. Emissions from developed countries. c. Emissions by a company's first tier (scope 1) suppliers. d. Emissions from transporting products and people

A

The Sustainability Consortium . . .? a. Has environmental footprint calculators that companies can provide environmental profiles for many product categories. b. Is part of SmartWay. c. Focuses on transportation reduction. d. All of the above

A

The disadvantage of increasing profit through logistics cost reduction vis-à-vis increased sales is . . .? a. You aren't getting as much visibility/brand recognition as you get in the market when you sell more. b. There are no disadvantages. c. There might be fewer trucks with your name on them. d. All of the above e. None of the above

A

The level of information exchange across companies in a planning based supply chain could be described as: a. Minimal b. Frequent c. Complete d. Cross-functional e. Political

A

What does S&OP stand for? a. Sales and Operations Planning b. Sales and Operations Procedures c. Sales and Oligopoly Planning d. Services and Operations Planning e. None of the above

A

What is the term that refers to dedicated trains often of 100 or more railcars that move from an origin to a destination to serve a specific customer? a. Unit train b. Dedicated carriage c. Amtrak d. Intercity rail e. Longer combination vehicles

A

When Honda calculated its total scope 1, 2, and 3 carbon emission, it found which of the following? a. Nearly 90% of its carbon footprint came from consumers use of its product (mainly driving its cars). b. It was the least polluting automotive company in the industry. c. Recycling of batteries at the end of their life was the largest single source of GHG and associated environmental damage. d. All of the above

A

When a manufacturer bypasses intermediaries to serve retailers, it is employing what form of distribution? a. Direct distribution b. Selective distribution c. Exclusive distribution d. Express distribution e. Mass distribution

A

When thinking about supply chain strategy, the planning-based strategy . . .? a. Is the most traditional. b. Aligns with a home delivery strategy. c. Aligns with an intensive strategy. d. All of the above e. Only B and C

A

One way to improve upon the outcomes suggested by the classic trade-offs is to . . .? A)Job hop, and apply what you learn in one company to the next B)Use lean processes to reduce waste wherever possible C)Switch to e-Commerce business, where the trade-offs do not apply D)All of the above E)Only A and B

B

Over time, companies' reliance on long-term forecasting to drive replenishment has done what? a. Increased b. Decreased c. Stayed the same d. Significant reduced inventories e. Only A and D

B

Sometimes, you simply can't increase manufacturing capacity, speed up logistics, or solve a supply shortage in your efforts to meet customer needs. Your only real option is to work with marketing to persuade customers to shift their demand. What are the two levers of influence to shift that demand? a. Price, marketing b. Price, lead time c. Lead time, location d. All of the above e. None of the above

B

What does FMEA stand for? a. Final mapping effort analysis b. Failure modes effects analysis c. Final management error assessment d. Failure management easement ability e. None of the above

B

When thinking about how lean a supply chain can become, which is the following is correct? a. Lean supply chains are the leanest strategy. b. Agile supply chains aim to be even leaner than lean supply chains. c. Make to stock is leaner than make to order. d. Only A and C e. None of the above

B

Which manufacturing strategy supports an agile supply chain strategy? a. Configure to order (CTO) b. Make to order (MTO) c. Ship to stock (STS) d. Assemble to order (ATO) e. Buy to order (BTO)

B

An agile supply chain seeks to . . .? a. React first, ask questions later b. Live long and prosper c. Produce to individual preferences d. Quickly provide a standard product to customers e. Wipe out lean supply chains as we know them

C

CPFR helps trading partners work together to build a single, agreed-upon forecast. CPFR argues that someone already knows what your company's sales will be. Who is that someone? a. Upper management b. Company forecasters c. Customers d. Suppliers e. All of the above

C

The EPA SmartWay . . .? a. Is a US government regulatory body to police emissions of freight transportation and levy fines for non-compliance b. Has high annual dues, but those are usually offset by savings in fuel usage c. Is a voluntary private-public partnership between the EPA, all types of freight transportation service companies, and organizations that use the freight company's services. d. Is an on-line resource for evaluating the environmental and fuel efficiency of various transport technologies.

C

What is the relationship between logistics and corporate strategy? a. Logistics does not worry about strategy, because logistics focuses on execution b. The strategy of logistics determines the corporate strategy c. The strategy of logistics is designed to support corporate strategy d. The strategy of logistics is determined by production strategy e. None of the above

C

When comparing the idea of a carbon footprint to an ecological footprint a. are just two ways of saying the same thing b. The carbon footprint measure is more comprehensive c. The eco-footprint measure is more comprehensive d. Greenhouse gas emissions is the most comprehensive measure

C

When multiple (2 or 3) trailers are attached to a truck for more efficient transportation, this is called: a. Truckload (TL) transportation b. Unit trucking c. Longer-combination vehicles (LCVs) d. Multi-container shipping (MCS) e. Triple-E Trucking

C

When shipping by LTL carrier, which product is likely to have the highest freight classification? a. Wood furniture b. Paper c. Consumer electronics d. Bath towels e. Grocery items

C

Which mode faces intense competition from rail for dry bulk commodities and pipelines for oil and petroleum products? a. Motor b. Truck-rail intermodal c. Water d. Water-pipeline intermodal e. Air

C

Which mode of transportation is the slowest yet offers very reliable service? a. Air b. Truck c. Pipeline d. Railroad e. Water

C

Which of the following items is a product-related transportation cost factor? a. The location of markets b. The level of transportation competition c. The stowability of products d. The balance of freight traffic e. Whether a shipment is domestic or international in destination

C

Form utility is . . .? a. Related to having the right sizes available to fit a person's form. b. Can come from modifying a product to include multipacks or samples. c. Unrelated to logistics. d. Derives from marketing's product promotion.

Can come from modifying a product to include multipacks or samples.

In logistics, which of the following is the top concern related to movement? a. How to avoid movement. b. Choosing the right mode of transportation for your needs. c. Minimizing environmental damage. d. Avoiding storage

Choosing the right mode of transportation for your needs.

A company's inventory management policy influences day-to-day availability. What is the tradeoff between inventory costs and stock-out costs? a. Expensive inventory vs. lost customers b. Technological innovations vs. product attributes c. Capital vs. debt equity d. Expensive inventory vs. technological investment

a

A consistent is measure . . .? a. Allows comparison over time b. Is important c. Aligns with set priorities, not creating conflict d. Requires minimum effort to apply e. None of the above

a

A typical day in the life of a logistics manager could be described as follows: a. There is no typical day. b. Involves a lot of downtime waiting for forecast data to arrive. c. Tends to follow a very set, planned time schedule. d. All of the above e. Only B and C

a

As you get close to 100% customer service level in logistics, which of the following occurs? a. The costs of service improvements rise quickly. b. Increased sales nearly always offset the additional costs. c. You will make more money. d. All of the above e. B and C

a

Calculate the expected cost per stockout with the following information: Probability of a back order is 60%, lost sale is 20%, and the probability of a lost customer is 20%. The cost per incident of a back order is $100, lost customer is $100,000. Sales price of the item is $100 with a 20% profit margin. The average order is 100. a. $20,460 b. $22,060 c. $102,100 d. $20,400 e. None of the above

a

Frito Lay used _______ to forge contracts with the right potato farmers to lock in enough supply to keep making potato chips--even when broader shortages arose a. Weather-forecasting software b. Financial forecasting c. Managerial forecasting d. New-age accounting software e. Technical negotiation skills

a

Historically, if companies have focused on their emissions at all, the focus has been on which of the following? a. Scope 1 emissions b. Scope 2 emissions c. Scope 3 emissions d. All of the above

a

In logistics, processing deals primarily with which of the following? a. Flow of information and the visibility of shipments during movement and storage b. Processing payments quickly to improve cash flow c. Reducing waste d. Managing paperwork e. None of the above

a

In order to be effective, leagile supply chains rely on which of the following? a. Form postponement of goods b. Excellent forecast of end customer demand c. Limited product variety d. All of the above e. Only A and B

a

Inventory waste refers to which of the following? a. Excess materials that customers or manufacturing don't currently need. b. Only considers raw materials that are obsolete or poor quality. c. Goods that are stolen. d. Goods that are damaged. e. All of the above

a

Railroads require greater volumes of freight in order to be profitable because: a. Railroads must own and maintain their own rights of way, leading to very high fixed costs b. Railroads are far less fuel efficient than other modes and must charge a higher price c. Rail carriers are charged very high taxes compared to the other modes d. Railroads employ a larger labor force with high wages e. Since railroads usually only operate in one nation, they must carry more volume to be profitable

a

Supply chain wide metrics are distinguished by which of the following? a. End-to-end information sharing b. Fast and easy to implement c. Very common in practice d. All of the above

a

The key activities in logistics include . . .? a. Movement, storage and processing b. Returns, reuse and recycling c. Managing customer payments, returns and credits d. All of the above are equally important e. None of the above apply

a

Value can only be assessed from the standpoint of . . .? a. The eyes of the customer b. Shareholder value c. A company's stock price d. None of the above

a

What analysis should you perform to design the right product support requirements? a. Compare the costs of service options to the costs angering customers b. Compare the costs of angering customers to the costs of order fulfillment c. Compare the costs of service options to the costs of order fulfillment d. Compare the costs of order fulfillment to the costs of a viable reverse logistics system e. None of the above

a

What do the SMART criteria stand for? a. Specific, Measurable, Attainable, Relevant, Timeframe b. Sustainable, Measurable, Attainable, Realistic, Timeframe c. Specific, Measurable, Attainable, Realistic, Transportation d. Sustainable, Measurable, Attainable, Relevant, Transportation

a

When actual sales are greater than expected sales, this condition is called which of the following? a. An under-forecast b. Disappointing customers c. An overstock d. An over-forecast e. Discounted sales

a

Which manufacturing strategy supports a leagile supply chain strategy? a. Configure to order (CTO) b. Make to order (MTO) c. Ship to stock (STS) d. Make to stock (MTS) e. Buy to order (BTO)

a

Which mode of transportation incurs medium fixed costs with high variable costs and is experiencing rapid growth though it still represents a very small market share as measured by total tonne miles within the U.S. transportation market? a. Air b. Truck c. Pipeline d. Railroad e. Water

a

Which of the following are company supply chain metrics in terms of what they actually measure? a. The perfect order fulfillment b. Total supply chain cost c. Accounts payable d. Total landed cost

a

Which of the following are popular measures organizations take to reduce the environmental footprint of their distribution centers? a. Use of solar panels on their roofs b. Locate in very rural areas so the DC does not damage valuable land c. Desalinate waste water for drinking water d. Limit parking so that employees carpool or use public transit

a

Which of the following do NOT apply to the SCOR model? a. SCOR is used by CEVA logistics. b. SCOR was started by the Supply Chain Council. c. SCOR provides standard measurements that allow for comparison among companies. d. SCOR focuses on supply chain activities.

a

Which of the following is NOT one of the core deliverables of a logistics system? a. Excess capacity b. Timely Delivery c. Transparency d. Product availability e. Product availability

a

Which of the following is NOT one of the core deliverables of a logistics system? a. Infrastructural integrity b. Product availability c. Timely delivery d. Protection against disruption e. Operational efficiency

a

Which of the following is NOT one of the seven rights of logistics? a. Right transportation b. Right place c. Right cost d. Right time e. All of the above are part of the seven rights

a

Which of the following is not an economic utility? a. Electricity b. Time c. Place d. Possession e. Both A and D

a

Which of the following is one of the eight wastes? a. Defects b. Poor management c. Tardiness d. Sloth e. All of the above

a

Which of the following transportation modes is characterized by the greatest (best) level of availability and flexibility in movement? a. Truck b. Pipeline c. Water d. Air e. Rail

a

With respect to timely delivery, how do you achieve a dependability capability? a. Remove process variability b. Use control with functionality c. Understand business terms that may not be well defined d. Promise longer than needed lead times e. All of the above

a

__________ creates possession utility. a. Marketing b. Getting things where they are needed c. Logistics d. Supply chain management

a

A company that has a contingency plan in place to protect against an unexpected disaster is considered to be a. Lean b. Agile c. Fast d. Efficient

b

A metric is consistent when . . .? a. You measure it at the same time each time. b. The metric is used consistently over time & situations, so it is meaningful for comparison. c. It is measured in currency. d. People agree it is a good metric. e. All of the above

b

Backorders occur when you do not have inventory in stock and your customer . . . ? a. Switches to a different brand. b. Decides to keep their business with your organization and wait for the desired product. c. Cancels the order because she decides she has enough inventory all ready. d. Decides to take her future business elsewhere. e. Either A or D

b

Calculate the expected cost per stockout with the following information: Probability of a back order is 50%, lost sale is 25%, and the probability of a lost customer is 25%. The cost per incident of a back order is $150 and a lost customer is $250,000. Sales price of the item is $1,500 with a 20% profit margin. The average order is 50 units. a. $250,000 b. $66,325 c. $150 d. $15,000 e. None of the above

b

Consider the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. Sales price of the item is $12 with a 20% profit margin. The average order is 50. If you experience 12 stockouts per year, how much can you invest to eliminate stockouts? a. $7,209 b. $86,518 c. $146,544 d. $124,212 e. None of the above

b

Freight transportation accounts for which of the following? a. 80% of the CO₂ emission in the world b. 8% of the CO₂ emission in the world c. Less pollution than from distribution and materials handling d. None of the above

b

How do companies know whether it is worth creating loyalty to keep customers coming back? a. Don't overestimate your importance in the customer's life. b. Measure lifetime customer value c. Recognize the right relationships and adapt d. Be transparent

b

In FMEA, you score risks based on which of the following? a. Immediacy, location, and severity b. Severity, probability, and detection c. Immediacy, magnitude, and amplitude d. Depth, breadth, and reach e. Failure, management, and easement ability

b

In logistics, processing deals with which of the following? a. Manufacturing processes b. Information flow and visibility of inventory c. Where products are stored d. The movement of goods e. All of the above

b

Quantity utility focuses on . . .? a. Having the product arrive when it is needed b. Getting customers the right amount of product c. Having zero inventory according to lean principles d. Having the inventory where it is needed e. All of the above f. Only A and B

b

Sustainability oriented companies . . .? a. Do not ship anything by air. b. Continuously analyze how their logistics and supply chain decisions not only affect cost and revenue, but also how they affect the environment. c. Always produce locally. d. Avoid intermodal transportation. e. All of the above f. Only A, C, and D

b

The concept of continuous moves in trucking is meant to do which of the following? a. Move freight faster b. Make truck-driving jobs more attractive c. Trick regulators d. All of the above e. None of the above

b

The strategic profit model (aka, DuPont formula) . . .? a. Is another name for the profit leverage effect. b. Allows us to trace the impact of your decision on important financial indicators. c. Uses information from stock analysts to develop and analyze scenarios. d. Is a popular marketing tool.

b

The strategic profit model focuses on which ratios as outputs? a. Return on equity b. Return on assets c. Cash-to-cash cycle d. All of the above e. None of the above

b

The waste of "waiting" refers to which of the ofllowing? a. Having excess inventory that is waiting to be processed. b. Staging orders to be shipped in advance of when they are needed. c. Unloading and reloading the same shipment to improve the cube utilization instead of planning in advance. d. An order that is received early by the customer and has to wait to be used.

b

Time utility involves . . .? a. Getting things to a customer early, so they can get their projects completed sooner. b. Getting things to a customer exactly when needed. c. Reducing wasted time in the supply chain. d. All of the above

b

Which combination of modes is not likely to be a frequently used intermodal option? a. Air-truck b. Air-water c. Rail-water d. Truck-rail e. Water-truck

b

Which distribution strategy puts the greatest stress on logistics by requiring that products are found in ready supply across a very broad geographic area? a. Channel-centric distribution b. Intensive distribution c. Exclusive distribution d. Selective distribution e. Niche distribution

b

Which form of carriage refers to a shipper that owns and operates its own fleet of transportation vehicles? a. Diversified carrier b. Private carrier c. Distinguished carrier e. Common carrier f. Exempt carrier

b

Which of the following characterize lean supply chain approaches? a. They only apply to manufacturing companies b. They focus on the elimination of waste in processes c. They are used by very few manufacturers d. All of the above e. Only A and B

b

Which of the following describes a strategic decoupling point? a. A place where semi-trucks pull over on the road and either attach or detach trailers b. The point at which the inventory switches from being pushed to being pulled c. Where the company has invested so much in the item that it needs to sell at market price top achieve a profit d. Is only applicable to leagile supply chains e. Only B, C, and D

b

Which of the following is NOT a dimension of delivery that customers care about? a. Speed b. Cost c. Consistency d. Agility

b

Which of the following is a primary challenge for air cargo carriers serving the U.S.? a. Competing with passenger airlines for qualified pilots. b. Balancing the flow of freight between origin/destination locations. c. Finding sufficient equipment at a reasonable price. d. Adhering to increasingly demanding economic regulations. e. Competing for landing slots at major international airports.

b

Which of the following is a really unique practice used in Patagonia's holistic approach to sustainability? a. Patagonia recycles its products. b. Patagonia encourages its customers to buy less. c. Patagonia uses no natural fibers. d. Patagonia tries to make high quality products.

b

Which of the following is a traditional logistics customer service metric? a. Improvement in sales revenue b. On-time delivery c. Customer repeat sales d. All of the above e. Only A and C

b

Which of the following is another way to say on-shelf in-stock percentage? a. The percent of a store's shelf space that it filled. b. The percent of advertised items that are in stock. b. The percentage of time that a product is available on the shelf, rack, or wherever the customer expects to find and buy it. d. All of the above e. None of the above

b

Which of the following is one of the goals of lean? a. To increase automation, thereby reducing human error b. To eliminate waste c. Reduce top management intervention d. All of the above e. Only A and B

b

Which of the following is one of the purposes of carbon lifecycle calculators for products? a. To shift the attention for GHG emissions away from manufacturers. b. To recognize that the greatest environmental impacts from a product can occur at any time during the product lifecycle. c. To demonstrate that consumer misuse of products is the greatest source of GHG. d. All of the above

b

Which product exemplifies an agile supply chain? a. Cars produced for rental car agencies b. NikeID basketball shoes c. Grocery items d. Office supplies e. Office furniture

b

Which supply chain strategy would be best when demand is very stable, sales history provides a good indication of future sales, and products vary little? a. Stable supply chain b. Planning based supply chain c. Lean supply chain d. Agile supply chain e. Leagile supply chain

b

Why are railroad companies in the eastern U.S. expanding capacity dramatically? a. To keep up with growth in the road network . b. To carry more freight arriving in the U.S. from an expanded Panama Canal. c. To support freight arriving from the U.S. west coast. d. To accommodate the market demands for high-speed transportation. e. To provide for both freight and passenger transportation in the region.

b

Customer inquiry resolution time is a __________ because _________. a. Balanced supply chain metric; the whole supply chain affects it b. Part of the perfect order; it is a key to the customer experience c. Company supply chain metric; it focuses on the company's piece of the supply chain d. Balanced supply chain metric; the customer is the only one that adds money to the supply chain

c

Design is important to sustainability because . . .? a. If we don't design sustainable products to be pretty, people won't buy them. b. The design process can use a great deal of natural resources and generate much waste through prototyping. c. Decisions we make in the design phase affect the sustainability at all future phases of the product lifecycle. d. The design phase has no impact on logistics sustainability issues.

c

Designing for cradle to cradle is . . .? a. The same as design for cradle to grave. b. A concept that is so futuristic is has not yet been implemented. c. Designing with the thought of reusing every aspect of the product possible at the end of the product life. d. All of the above

c

Efficiency is also known as which of the following? a. Doing the right thing. b. Being effective in your activities. c. Doing things with fewer resources. d. Embracing the classic trade-offs.

c

How does logistics support a leagile supply chain strategy? a. Inventory is stored in large quantities throughout the supply chain. b. Transportation relies on rail and air modes. c. Distribution centers can perform light assembly operations. d. Transportation decisions are based solely on economies of scale. e. Emphasis is based on cost over customer service.

c

If a company decides to increase its investment in inventory, and as result must rent additional warehousing space, this decision will impact which of the following? a. Balance sheet b. Income statement c. Both d. Neither

c

If you have a major reduction in inventory and stop renting space in an outsourced distribution center, which of the following would you expect? a. Your income statement will be affected. b. Your balance sheet will be affected. c. Both your income statement and balance sheet will be affected. d. Neither your income statement or balance sheet will be affected.

c

In using DfE, BMW discovered which of the following? a. It was too expensive to be worthwhile. b. The right solution was always the most expensive solution. c. Each car project had to be assessed independently to determine the right solution. d. All of the above e. Only A and B

c

Of the four "P's" of Marketing, logistics typically addresses: a. Promotion b. Product c. Place d. Price e. Production

c

S&OP can help you smooth out the handoffs among different functions across your company. S&OP also helps you move from a traditional annual planning process to a _______ re-planning process. a. pre-determined b. current c. continuous d. marketing e. none of the above

c

The Toyota production system practices which of the following processes? a. Is a one-time improvement process anyone can try at home b. Is a process that relies on top management incentives c. Uses the "Plan, Do, Check, Act" approach to waste reduction d. Is based on the seven wastes e. All of the above

c

The three priorities for HP's design for environment initiatives include: a. Reduce, reuse, recycle b. People, plant, profit c. Energy efficiency, materials innovation and recyclability d. Packaging, transport and suppliers e. None of the above

c

What does quantity utility mean? a. Companies fill full truck loads to get the lowest transportation cost b. Customers can buy what they want from all over the world c. People can buy things in the quantities that they desire d. There is one optimal package size

c

What is believed to be the most important part of international transportation, according to many experts? a. Tracking the currency exchange rate b. Knowing customs personnel c. Accuracy in documentation d. Knowing the language of the destination country e. Hiring the right drayage company

c

When it comes to e-commerce's impact on the environment, which of the following is true? a. It is categorically worse than visiting a brick-and-mortar store. b. Delivering to the end customer's home makes it a GHG disaster. c. Early studies indicate that e-commerce actually results in a net carbon reduction. d. Returns/reverse logistics makes e-commerce very unattractive.

c

When loading the vehicle for the final physical activity of the order process. You want to make sure that the vehicle is both ______________ and _____________. a. Cleaned, invoiced b. Installed, cubed out c. Weighed, cubed out d. Weighed, invoiced

c

Which distribution strategy is likely to have the healthiest margins, but requires very high levels of customer service in logistics? a. Channel-centric distribution b. Intensive distribution c. Exclusive distribution d. Selective distribution e. Niche distribution

c

Which kind of transportation service provider provides convenient door-to-door service between two locations and is capable of carrying most any form of freight? a. Air carrier b. Pipeline carrier c. Truckload carrier d. Railroad carrier e. Less-than-truckload carrier

c

Which of the following accurately describes the role(s) of a heatmap? a. Provides early warning indicators for global warming hot-spots. b. Maps logistics design with customer service to predict high risk stock-outs. c. Maps the potential likelihood and impact of risk so that companies can prioritize their attention. d. Combines available resources and skill sets with risk issues to pinpoint the organization's expertise level in dealing with risk. e. None of the above

c

Which of the following characterizes a lean supply chain? a. Suppliers usually determine demand. b. Logistics plays a very small role, because companies rely on suppliers and customers for delivery. c. Reliable transportation is essential. d. All of the above e. Only A and C

c

Which of the following is an example of a true supply chain metric? a. Cash-to-cash cycle b. Perfect Order c. Inventory days supply d. All of the above e. Only A. and B.

c

Which of the following is one of the main reasons that transportation costs in the US have declined as a percentage of GDP? a. Most items are shipped from overseas. b. We store more inventory in more locations now, so we don't move it as far. c. Improved transportation efficiency/ leaner. d. All of the above

c

Which of the following is true regarding slow steaming? a. It eliminates the use of bunker fuel b. It involves passing slowly through the Panama Canal c. It may require companies to carry more inventory because it takes shipments longer to arrive d. All of the above e. Only A and C

c

Which of the following is true regarding the example of buying a Toyota? a. The delivery of cars to dealers is a pure make-to-stock approach. b. The delivery of cars to dealers is a pure make-to-order approach. c. The delivery of cars to dealers combines the make-to-stock and make-to -order approaches

c

Which of the following statements is true? a. There is not a strong relationship between which transportation modes are the most expensive and which are the most polluting. b. There is not a strong relationship between the modes that are fastest and those that are the most polluting. c. There is a direct relationship (correlation) between the cost of the transportation mode and the amount of GHG it emits. d. All modes are similar in their pollution per ton mile

c

Which of the following will NOT happen if transportation costs are reduced? a. Net Income Increases b. Total Operating Costs Decrease c. Return on Assets Decreases d. Transportation as % of Sales Decreases

c

With respect to order fulfillment, which of the following provides the best way to earn customer loyalty? a. Offereing the lowest costs b. Using the best transportation service despite costs c. Providing exceptional after-sales service d. Using 3-D scanners and 3-D printers

c

A $100 dollar savings in logistics costs for a firm with a contribution margin of 10% has the same impact on profit as how large of an increase in sales revenue? a. $100 b. $10 c. $10,000 d. $1,000 e. It depends

d

A company's revenue can be affected by which of the following? a. Order-fill rate b. Order cycle time c. Perfect-order delivery performance d. All of the above e. Only A and B

d

As a logistics manager, your mandate is to efficiently provide the service customers need. What is the two-step process that can help you match the customer's needs to the service offerings? a. Create new service opportunities and deliver on-time b. Execute to plan and drive economic expansion c. Develop a trust signal to raise consumer confidence and contribute to a defined contribution pension d. Identify the relevant cost service tradeoffs and run the numbers to assess the cost/benefit tradeoff

d

Calculate the expected cost per stockout with the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. Sales price of the item is $12 with a 20% profit margin. The average order is 50. a. $13,187.00 b. $10,351.50 c. $12,212.00 d. $7,209.90 e. None of the above

d

If an organization is able to reduce its warehousing costs by holding less inventory, but suffers a reduction in sales as a result, how will ROA (return on assets) be affected? a. ROA will not be affected b. ROA will go down c. ROA will go up d. We don't have enough information to determine the outcome

d

Of the company supply chain metrics, which of the following is of most interest to top management? a. Inventory Days Supply b. Perfect Order Fulfillment c. Order Fulfillment Cycle Time d. Cash-to-cash Cycle

d

Risks . . .? a. Present factors of uncertainty and vulnerability in a business. b. Should be considered in supply chain design. c. Should be considered in supply chain strategy selection. d. All of the above e. Only A and B

d

Top management is held accountable for which of the following metrics or indicators? a. Asset utilization b. Total supply chain cost c. Revenue d. Both A and C

d

Under which circumstances would you use a qualitative forecast? a. Domain knowledge is critical b. Pertinent data is scarce c. You have access to qualified key informants d. All of the above e. Only A and B

d

Using a ___________________ to achieve more optimal loads and transportation plans can help save money and time a. Third party warehousing system b. Transportation engineering services c. Third-party logistics provider d. Transportation management system

d

When it comes to storage, which of the following is true? a. Things are easier as companies move to online sales, because they can ship anywhere b. Transportation mode and storage are unrelated c. Companies try to balance inventory levels with transportation mode and customer service d. All of the above

d

Which of the following are key financial ratios included as outputs of the strategic profit model? a. Return on Equity and return on income b. Return on assets and return on liabilities c. Return on inventory and asset turnover d. Return on Equity and return on assets e. Cashflow and asset turnover

d

Which of the following are true about tradeoffs? a. They are everywhere b. They should be identified and evaluated c. They should be balanced to meet the right customer service/cost equation d. All of the above e. Only B and C

d

Which of the following is an example of using data to improve product availability? a. Walmart's use of Retail Link to share POS data with suppliers. b. Kroger's use of loyalty cards to generate customer profiles. c. Best Buy's use of weekly cadence calls to build a "single" consensus demand forecast. d. All of the above e. Only A and B

d

Which of the following was NOT an example provided in the text of ways that companies reduce customer returns? a. Follow up on orders with e-mails providing information on assembly and/or use. b. Remind customers of the size that they usually order. c. Give discounts if items are slightly damaged, rather than get a reurn. d. Provide free trial usage period for items. e. None of the above; that is, they were mentioned in the text.

d

__________ is the cheapest transportation mode per ton mile, but also the __________. a. Rail, most damaging to goods b. Ship, least damaging in terms of emissions c. Motor, most common d. Pipeline, slowest e. None of the above

d

As transportation speeds up, which of the following is true? a. The cost of lost sales decreases. b. Total costs decreases. c. The cost of transportation increases. d. All of the above e. Only A and C

e

Logistics creates value through which of the following activities? a. Storage b. Processing c. Manufacturing d. All of the above e. Only storage and processing

e

Moving more freight from trucks to rails will provide which of the following benefits: a. Faster delivery b. Reduced road congestion c. More environmentally sustainable transportation d. All of the above e. Only B and C

e

Slowsteaming . . .? a. Reduces the speed of a ship to reduce fuel consumption. b. Reduces the speed of a ship to reduce emissions. c. Reduces the amount of inventory that shippers need to carry. d. All of the above e. Only A and B

e

The ability to delay the final form (configuration) of the product until a customer order is conferred is called . . .? a. Logistics postponement b. Delayed commitment c. Mass customization d. Form postponement e. Both C and D

e

What does the profit leverage affect indicate? a. $1 saved in logistics goes right to the bottom-line b. Companies should focus on saving money more than generating additional revenue c. We can translate the cost savings from logistics into the sales equivalent required to have the same profit impact d. All of the above e. Only A and C

e

What is the term that applies to the holistic process that brings together shippers, carriers, and receivers to drive inefficiencies out of the transport planning and execution process? a. Nistevo b. National Transportation Exchange c. InterLoad d. Share the Ship e. Collaborative Transportation Management (CTM)

e

What share of overseas transportation occurs by ship, based on volume? a. Less than 10% b. 21 - 30% c. 50 - 60% d. 70 - 80% e. More than 90%

e

When you receive an order and don't have the product in stock, what are your options? a. Ship from a more-distant DC, incurring higher shipping costs. b. Wait for the product to be delivered from a supplier, and then ship the order. c. Fill a partial order with existing inventory, which increases handling costs. d. Drop ship directly from the factory e. All of the above f. Only b, c, & d

e

Which of the following are characteristics of a good measure? a. Concise b. Consistent c. Aligned d. Easy to use (i.e., minimizes effort) e. All of the above f. Only A and B

e

Which of the following are concerns related to logistics metrics? a. They may conflict with the goals of other functional areas. b. There are no standards whatsoever in terms of how they are calculated. c. They tend to be narrowly focused on operational performance rather than financial outcomes. d. All of the above e. Only A and C

e

Which of the following are good ways to reduce fuel usage? a. Installing auxiliary power units (APUs). b. Improve route planning. c. Use intermodal transportation. d. Ship full loads e. All of the above f. Only B and D

e

Which of the following are key reasons to build a strong order fulfillment (i.e., delivery) capability? a. Out-of-stock occurences are a leading cause of customer dissatisfaction b. Service failures cost retailers hundreds of billions of dollars every year c. Fixing stockouts is easy to do, offereing companies a quick and easy return on investment d. All of the above e. Only A and B

e

Which of the following are methods that containerships use to reduce GHG emissions? a. Slow steaming b. Using bigger ships c. Using more fuel efficient ships d. Using greener fuel e. All of the above f. Only C and D

e

Which of the following is NOT a step to calculate the true cost of a stockout? a. Develop a customer satisfaction survey b. Evaluate customer response c. Estimate consequence costs d. Calculate the expected stockout cost e. All of the above f. Only B, C, and D

e

Which of the following is a benefit of sharing of information in the supply chain/ a. Reduced lead time b. Less uncertainty c. Lower inventory levels d. Diminished waste e. All of the above

e

Which of the following is a reason that it is better to hold raw materials than finished goods? a. It is NOT better to hold raw material than finished goods. b. Raw material is less valuable, reducing financial risk. c. Raw materials can be combined to make a variety of items to meet demand. d. All of the above e. Only B and C

e

Which of the following is a reason you want to have multi-criteria analysis as a tool in your decision-making toolkit? a. Multi-criteria analysis is intuitive. b. Multi-criteria analysis enables you to quantitify qualitative issues. c. Multi-criteria analysis is widely applicable; that is, you can use it whenever decision-making requires comparing options. d. Multi-criteria analysis invites you to do disciplined homwork so that you make a good decision. e. All of the above f. Only A, B, and C

e

Which of the following is true of the strategic profit model? a. Is very similar to the profit leverage effect. b. Is designed specifically towards logistics and supply chain performance. c. Focuses on operating metrics (versus strategic metrics). d. All of the above e. None of the above

e

Within a transportation mode, which of the following are true? a. The fuel efficiency and emissions among carriers can vary greatly. b. The fuel efficiency and emissions among carriers are very similar. c. Intermodal transport is a good way to get the benefits of multiple modes by combining modes d. All of the above e. Only A and C

e

By linking _______ and _______, it is possible to synchronize order management across an entire supply chain. a. VMI and S&OP b. S&OP and TMS c. CPFR and TMS d. S&OP and CPFR e. VMI and S&OP

D

How does a less-than-truckload (LTL) motor operation differ primarily from a truckload (TL) operation? a. LTL carriers only provide short-distance service. b. LTL carriers do not use full-size trailers like truckload operations. c. LTL carriers usually provide service without re-handling the freight. d. LTL operations require several terminal locations for extensive coverage. e. LTL operations require shippers to drop off their loads at the carrier's terminal.

D

Leagile supply chains . . .? a. May rely on 3PLs to perform value added-services. b. May postpone final product form until the product is physically closer to the customer. c. Have few practical examples in the real-world. d. All of the above e. Only A and B

D

Of all of the transport-related infrastructure, which of the following is in the best shape in the US? a. Roads b. Bridges c. Dams d. None are in very good shape e. All are in very good shape

D

The 5 S's approach represents which of the following? a. A way to organize any process b. A way to help you find and eliminate the eight wastes c. A way to guide kaizen events d. All of the above e. Only A and B

D

Wade Miquelon, CFO at Walgreen, was "pressured to leave" the company despite shareholder return of 116% during his six-year tenure. What was the reason? a. His forecasting methods were not acceptable b. Employees complained about his leadership style c. The CEO felt threatened by his skill level d. Right decision makers were not talking to each other e. His family wanted more time with him

D

What does CPFR stand for? a. Collaborative Planning, Featuring, and Replenishment b. Collaborative Prospects, Forecasting, and Replenishment c. Coercive Planning, Forecasting, and Replenishment d. Collaborative Planning, Forecasting, and Replenishment e. Collaborative Planning, Forecasting, and Reinvestment

D

When customers prefer to buy wholly unique products, which supply chain strategy is best for supporting these needs? a. Lean b. Leagile c. Agean d. Agile e. There is no single best strategy to support these needs

D

When modifying classifications based on strategic issues, what are some possibilities that would make a customer more or less important? a. A customer may possess unique skills that will drive future market advantages. b. A customer may control a new patent that will spur sales growth. c. Intensive collaboration may uniquely improve logistics customer service. d. All of the above

D

Which of the following are ways to reduce a company's environmental footprint from transportation? a. Ship full loads (e.g., consolidate loads; mix product density). b. Reduce the weight and cube (space used) of packaging material. c. Avoid moving empty trucks back from delivery (known as dead heading). e. Use intermodal transport (e.g., slow, but sustainable mode for long haul; fast mode for final delivery). d. All of the above e. Only B and C

D

Which of the following is/are part of the five monthly review meetings for the S&OP planning process? a. Product management review b. Integrated reconciliation c. Demand review d. All of the above e. Only A and C

D

Which of the following statements is true about economies-of-scale experienced in transportation? a. Transportation cost increases but at a decreasing rate with each additional mile covered. b. Transportation cost increases but at a decreasing rate with each additional unit added to a shipment. c. Transportation cost increases but at a decreasing rate with each additional pound (unit of weight) added to a shipment. d. All of the above e. Only B and C

D

A stoppage on an automobile production line caused by a late delivery can cost up to __________________. a. $1,000-$10,000 per minute b. $10,000-$20,000 per minute c. $10,000-$20,000 per minute d. $10,000-$50,000 per minute e. $10,000-$100,000 per minute

E

Companies that join SmartWay . . .? a. Can become certified. b. May receive recognition for their improvements. c. Will substantially increase their freight costs. d. All of the above e. Only A and B f. Only A and C

E

Packaging provides more than advertising. It may also do which of the following? a. Protect a product from damage. b. Disguise a product so it is not pilfered. c. Make it more difficult to transport to decrease hijacking. d. All of the above e. Only A and B

E

Tailored logistics is where companies give. . . a. Key accounts outstanding service. b. Transactional relationships a fair, efficient service. c. Companies a menu of service offerings. d. Customers the opportunity to decide if they are willing to pay for extra services E. All of the above

E

Which of the following factors should be considered when choosing the mode, class, and carrier for a shipment? a. Service requirements of the customer b. The cost of the transportation service c. The characteristics of the product d. The transit time offered by the carrier e. All of the above

E

Which of the following is NOT a waste reduced by lean principles? a. Defects b. Waiting c. Underutilizing staff talent d. Transportation e. Staff headcount

E

Which of the following is a major step in risk management? a. Risk identification b. Assessment c. Prioritization d. Mitigation e. All of the above

E

Which questions need to be answered when tracing costs during a customer profitability analysis? a. What are your cost objects? b. What processes does each customer initiate? c. What activities comprise each process? d. What resources are used by each activity? e. All of the above

E

Why should companies invest in strategic relationships? a. Relationship stability b. Steady revenue c. Improved capacity utilization d. Lower availability e. All of the above f. Only A, B, and C

E

A fast, reliable mode of transportation will always provide the lowest total logistics cost. T/F

F

According to the text, WalMart has may little effort or progress in reducing its GHG emissions T/F

F

Activity-based cost management enables you to identify customers future growth potential. T/F

F

Activity-based costing is always a more appropriate tool than ABC classification. True/False

F

Airlines operate as either all-cargo or all-passenger in orientation. In other words, cargo airlines never carry (paying) passengers and passenger airlines never carry cargo.

F

All of the top five shipping ports in the U.S. are found on the nation's west coast to accommodate Trans-Pacific trade. T/F

F

Amazon.com has mastered the holy grail of logistics service; that is, the ability to know precisely what each customer wants and then be able to deliver exactly to each customer's expectations. T/F

F

Applying Pareto's Law via ABC classification of customers is a two step process. Which of the following are steps in the classification process? a. Sort customers based on sales (or profits) b. Sort custoemrs based on how well you get along with their buyers c. Reclassify customers based on strategic issues like access to scarce resources d. Reclassify customers based on what they buy from you e. Both B and C f. Both A and C

F

Event logistics is another name for service logistics.

F

Growing your business by increasing sales with loyal customers is five times more expensive than finding and developing new customers. T/F

F

In logistics, attention to detail is important. This means that all relationships are created equal. T/F

F

In order for a decision to be truly sustainable, it must: a. Make employees happy b. Be socially responsible c. Be environmentally responsible d. Be financially (economically) responsible e. All of the above f. Only B, C and D

F

India's logistics problems have largely been solved. T/F

F

Integrated business planning (IBP) is the new term for sales and operations planning. That is, IBP is the hot new term consultants use to sell a forecasting process that has been around for 40 years. T/F

F

Logistics is typically evaluated as a profit center. T/F

F

Logistics performance affects costs, but not revenues. T/F

F

Measurement is a very straight forward process that few organizations struggle with. T/F

F

Only about 20% of all relationships are transctational in nature. T/F

F

Quantitative forecasting approaches are driven by experience and expertise rather than by data. T/F

F

SmartWay is . . .? a. Just another name for the Sustainability Consortium. b. Geared towards reducing the environmental footprint of freight transportation. c. Free and voluntary to join. d. Under the umbrella of the U.S. Environmental Protection Agency (EPA). e. All of the above f. Only B, C, and D

F

Supply chain strategy usually drives a company's marketing and corporate strategies. T/F

F

The U.S. railroad industry currently operates more miles of track than ever before. T/F

F

The sustainability Consortium is part of the U.S. Environmental Protection Agency. T/F

F

What are the benefits of fair and efficient relationships with transactional customers? a. Customers are more forgiving of the occasional service failure b. Good relations lead to repeat business c. Transactional customers may become strategic partners d. Increase complaints and damage reputation e. All of the above f. Only A, B, and C

F

When calculating forecasts using different forecasting techniques, you should get the same forecast. T/F

F

When you use ABC costing and find out that a customer is not profitable, which of the following are legitimate options? a. Stop selling to the unprofitable customer b. Increase sales to grow the business c. Raise prices d. Collaborate with the customer to reduce the costs of doing business e. All of the above f. Only A, C, and D

F

Which of the following are qualities of good metrics? a. The firm has a large number of metrics b. They tend to be complex so that they are difficult to game c. They tend to be very broad so that they cover a lot of issues d. They are measured quarterly, so not much time is taken to gather them e. All of the above f. None of the above

F

Which of the following characteristics of transportation is generally associated with a more damaging environmental footprint? a. Greater speed b. Greater dependability c. Greater responsiveness d. Greater capacity (i.e. volume/cube) e. All of the above f. Only A, B, and C

F

Which of the following characterizes the triple bottom line? a. People, planet, and profit b. Economic, environmental, and social c. Accounting, finance, and economics d. Time, place, and form e. All of the above f. Only A and B

F

Which of the following is true regarding transactional relationships? a. They represent up to 80% of all relationships. b. They are largely unimportant. c. They are vital to profitability. d. They needed to be managed efficiently and fairly. e. Only A and D f. Only A, C, and D

F

The greatest source of GHG emissions by transport mode, from low to high are: Ship, Rail, Air and motor Rail, ship, motor, air Ship, rail, motor, air Ship, motor, rail, air None of the above are correct

Ship, rail, motor, air

Balance sheet items related to logistics include which of the following? a. Inventory b. The value of owned distribution center assets c. Revenues d. Transportation costs e. All of the above f. Only a and b

f

Which of the following best describes logistics trade-offs? a. They challenge us to think of better ways to achieve our goals. b. Are immutable laws that can't be modified. c. Drove the creation of the eight wastes. d. Are part of lean principles.

They challenge us to think of better ways to achieve our goals.

Which mode and class of transportation is most likely to be used for a 500-mile shipment of time-sensitive, fragile products weighing 20,000 pounds? Air Truck-rail intermodal Less-than-truckload truck Railroad Truckload truck

Truckload truck

Trade-offs are an important consideration in sustainability issues.

True

In working to improve its supply chain sustainability performance, which of the following did HP do? a. Required suppliers to seek environmental certification b. Increased shipment consolidation c. Switched from rail to truck, because truck has less GHG/ton mile. d. Redesigned packaging for improved shipping weight and space utilization e. All of the above f. Only B and D

f

Which of the following are types of quantitative forecasting models? a. Time series models b. Expert panels c. Correlational models d. Delphi Technique e. All of the above f. Only A and C g. Only B and D

f

Which of the following is a vital role of good measurement? a. Measurement helps managers understand how well process are performing b. Measurement keeps managers busy, giving them something to do to fill their spare time c. Communicates expectations and motivates behavior d. Measurements make life difficult for people who actually have to the work e. All of the above f. Only A and C

f

Within the S.M.A.R.T. criteria for metrics, "relevant" means that it can be clearly defined to avoid misrepresentation. T/F

f

Which of the following are true regarding lean principles? a. They help improve efficiency by reducing waste b. They help improve effectiveness by meeting customer needs c. They have been implemented by almost every manufacturing company in the world d. They were invented by the US Aerospace industry e. All of the above f. Only A, B and C g. Only A and B

g

Which of the following is true according to the Toyota Production System? a. Management should determine how to improve processes. b. Efficiency is more important than effectiveness on the road to lean. c. Perfection is an attainable goal. d. Once the system stabilizes, it should be reviewed annually. e. None of the above

none

Logistics costs as percentage of GDP in the US are currently at around . . .? a. 1% b. 10% c. 8% d. 15% e. 6%

8

A firm's logistics system consists of the network of organizations and activities engaged in managing the movement and storage of products and services as well as the flow of information from the source to the customer. T/F

T

A perfect order is one that is received, processed, picked, packed, shipped, documented, and delivered on time without damage. T/F

T

A single MSE calculation doesn't give us a whole lot of information. We have to compare it to previous MSE's or industry benchmarks. T/F

T

ABC classification relies on the Pareto principle. The Pareto principle observes that 20% of your customers drive 80% of the benefits. T/F

T

Although your forecast is almost certainly wrong, using a forecast to help make logistics decisions is better than being blind. T/F

T

As a supply chain manager, you should care about stock outs because they drive up costs and disappoint customers, potentially causing them to defect (i.e., buy elsewhere). T/F

T

As the value of product increases, packaging costs generally also increase. T/F

T

Big data (aka) predictive analytics enables the correlational analysis needed to look for hidden connections among phenomena so that you can make better forecasts. T/F

T

If you want to catch new trends quickly and you are using exponential smoothing, your alpha should be larger than .5. T/F

T

If your demand shifts are temporary and non-representative, you should place minimal weight on your previous period's actual demand. T/F

T

Improving logistics efficiency and effectiveness can result in an improved standard of living for the citizens in a country. T/F

T

Inventory can help increase a company's resiliency. T/F

T

Logistics metrics often fail to resonate or be meaningful to top management. T/F

T

Most distribution centers contribute to a company's greenhouse gas emissions through the use of electricity to run the distribution center. T/F

T

Most products will be transported by truck at some point in their distribution. T/F

T

Multi-criteria analysis is an intuitive tool that helps you select the right carrier for transporting goods. One of the strengths of multi-criteria analysis is that it enables you to "quantify" qualitative decisions. T/F

T

Multi-criteria analysis is an intuitive tool that helps you select the right carrier for transporting goods. One of the weaknesses of multi-criteria analysis is that you "quantify" qualitative decisions. T/F

T

The United Nations' Brundlant Commission defined sustainable development as ". . . development that meets the needs of current generations without compromising the ability of future generations to meet their own needs." T/F

T

The lower your firm's operating margin, the greater the impact of logistics cost reduction vis-a-vis that of additional sales. T/F

T

The main goal of the S&OP business review meeting is to align plans and decisions with overall business goals T/F

T

Variability in transit times can be a major contributor to variation in order lead times. T/F

T

While inventory is essential, it can also be one of the eight waste. T/F

T

While logistics costs as a percentage of GDP have declined in the US, total logistics costs are increasing. T/F

T