INTLogistics: Exam 1 (BULK)
What is the objective for the use of the marketing mix?
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IBP's case is considerably important because...
... a bipartisan group of congressional representatives was urging remedial action
Containers used in air transportation...
... are not intermodal (inconvenient to use in other transportation modes).
Sony's main reason to establish an operation in Mexico was...
... because there was a requirement (protectionism) that all product's key components, including materials and labor, had to be wholly North American in origin
Given that a company can participate in multiple ecosystems at the same time, __________________ becomes a valuable organizational capability.
... building business-to-business relationships...
The problem Francisco Solis, the Mexican VP at the Sony's Nuevo Laredo plants, was...
... deal with a newly created agency under the auspices of NAFTA, particularly the U.S. National Administrative Office (NAO)
Lambert argues that...
... each element of logistics may vary from market segment to market segment, depending upon customer needs.
Inflation, increasing factory wages and longer ocean freight is...
... increasing near-shoring and re-shoring.
Lambert (1992) argues that effective, efficient marketing requires...
... management to fully integrate logistics and marketing within the firm's strategic planning process.
What the customers see is....
... primary packaging
What retailers handle is ...
... secondary packaging
To manage the efficient and effective flow of products, management needs to balance...
... speed, cost, and quality.
Outsourcing and off-shoring are making...
... supply chains to be longer
Effective and efficient logistics management results in ...
... the right materials getting to the right place at the right time in useable condition for the lowest total logistics cost
Tertiary packaging is also called...
... transportation packaging
Off-shoring means that...
...activities that were performed in a manufacturing facility are now performed at a facility in a different geographic location in a foreign country owned by the same company.
Outsourcing means that...
...activities that were performed in a manufacturing facility are now performed by a company (a supplier) either in the same country or abroad.
The 18th century economist David Ricardo explained that international trade is essential because...
...every nation has something they do best and if they trade with each other, both parties will live better.
Only a small fraction of business took advantage of the applicable FTAs in force because...
...management finds the requirements of the FTA so complex that the cost of adhering outweighed the advantages
As a result of local and regional agreements among nations, the business environment is becoming ...
...more complex and challenging
The key to unlocking the potential of future trade agreements lies in...
...reducing non-tariff barriers, frequently customs procedures.
Miller argues that a new supply chain discipline is nascent; he calls it Tariff Engineering. What is tariff engineering as Miller describes it? Tariff engineering is...
...the configuration of the global supply chain to take advantage of the lower tariffs and preferential treatments.
In addition to the agreements organized and approved by the WTO,...
...there are nations that have bilateral agreements or participate in regional groups to foster regional free trade zones.
The WTO agreements provide the legal ground rules for international commerce. As such,...
...these contracts bind governments to keep their trade policies within the agreed limits
The challenge for business people engaged in international trade is...
...to be aware of the multiple existing and proposed Free Trade Agreements because they will affect tariffs, labor costs, and local and regional legislation.
The role of the World Trade Organization is...
...to provide a global forum for governments to negotiate trade agreements and to settle trade disputes.
How many "caselets" are in the case Regarding NAFTA? (This particular case is unique because rather than one story, the main story, extending NAFTA to Mexico, splits in more than one story)
3
What is the maximum number of 40-ft containers a 10,000-TEU containership can carry?
5,000
What is an inverted tariff?
A higher rate on parts than on final products.
What of the following would you label as Breakbulk Cargo...
A piece of machinery that does not fit in a container and is heavier of the maximum weight of a container load.
Which is NOT true of access to an FTZ?
All FTZs are open to all companies
The structure of the supply chain, where each supplier, manufacturing facility and distribution center, will be located is the result of the most productive configuration of a number of critical factors. The factors Miller identifies as critical include:
All are critical factors Labor Fuel and transportation cost Location of existing suppliers The needs of key customers All are critical factors
The importance of Supply Chain Management is reflected by:
All of the Above The increasing importance of collaboration with supply chain partners SC is a critical part that needs to be adapted to changes in business environment SC capabilities are key to compete based on time-to-market SC executives sitting in the Board All of the Above
Which complexities are common for international shipping operations?
All of the above Dealing with multiple transportation modes. Shipment coordination with multiple carriers, including in foreign countries. Higher risk of product damage or delay. Complexity of customs regulations. All of the above.
Which activity is a part of logistics management?
All of the above Purchasing Transportation Packaging Materials handling All of the above
The use of a strategically located FTZ may be a good choice as ...
All of the above a sourcing location a manufacturing location a distribution location All of the above
Which activities are allowed in an FTZ?
All of the above storage assembly repairs manufacturing All of the above
Which is a potential benefit of an FTZ for a foreign company?
All of the above are benefits delay the payment of tariffs (duties) to help with cash flows and foreign currency availability. Reduce the amount of duties, including down to zero, when the product is transformed in an FTZ. For re-exporting after manufacturing or assembly, take advantage of cheap labor compared to the country of origin and country of final destination. Fix any non-compliance problems (e.g. labeling) to allow the products to enter the country legally. All of the above are benefits.
What of the following are correct?
All of the above are correct
Which of the following are true regarding carbon footprint and supply chain management?
All of the above are true The carbon footprint is part of 70% of corporate agenda. Many report green practices to contribute to increase profit. More miles, more sources, more emissions, more management required. All of the above are true.
Which is NOT true of international logistics?
All of the above statements are true. Internationally, it manages different logistics activities than domestic. It manages logistics activities in different countries. It manages logistics activities between countries. All of the above statements are true.
Why are total landed costs difficult to calculate?
All of the above.
When thinking about the customer service objectives for packaging, we should think of....
All of the answers are correct
This picture shows___________ being loaded.
Breakbulk cargo
How can a foreign company take advantage of an inverted tariff using a public FTZ?
Bring parts into an FTZ, assemble the final product and transfer it into the country.
What is a measure of the effectiveness of the logistics system?
Customer service
What is the output of the logistics function?
Customer service
In a final offer to win your business, a British supplier pledges to match the "FOB supplier dock" price of your current, Philadelphia-based supplier by offering you the same price (when converted to US dollars) for the same amount of products delivered to the Port of Philadelphia. Given what you have learned about total landed costs in the video, what should you do?
Decline the offer, because the total landed costs for the British supplier are very likely to be higher when all factors are considered
Which of the following are true about carbon footprint across the supply chain? (more than one can be true)
Environmental issues add to the complexity of supply chains and legislation about environmental issues is likely to increase complexity of supply chains
The example of selling organic cosmetics abroad is used in the video to suggest that ...
For successful sales around the world, tastes, preferences, and needs of a much wider range of customers should be studied and understood
What is the impact of international sourcing on inventory management?
Higher transportation and inventory holding costs
Which is NOT true of logistics management?
It does not deal with reverse flows of goods from the customer back to the manufacturer
What is the goal of logistics management?
It is to meet the customers' requirements
What of the following better represent Magna's strategy?
Make parts for the top seller cars
Open borders, reduced barriers, cost effective long-distance transportation and low-cost labor markets resulted in supply chains to be
More complex
In the US, FTZs function under supervision of the...
None of the above DOT FTC USITC ICC None of the above
Which part of the total landed costs should be taken into account for BOTH domestic and foreign supplier?
None of the above costs are part of the total landed costs.
Magna International ...
None of the other options are correct
Which is NOT true of a location of an FTZ?
Only a few US states do not have an FTZ.
What of the following best describes the situation in which Robert Peterson, the CEO of IBP, is in the caselet?
Peterson has a public relations issue because IBP has been regarded as manipulative, unfair, and possible even illegal
The marketing mix includes:
Product, price, promotion and place
The video suggests that in order to comply with regulations of a foreign country to sell food products there, it may be necessary to do all of the following, except to...
Remove gluten from the product
What of the following is(are) incorrect?
Sony is new to operating in Mexico
Which is true of the total landed costs?
They ban be used to support decisions in manufacturing facility location selection.
Customer service...
This is a tricky question, all of the above are right.
Having read all three caselets, what of the following are true?
This is a tricky question. Sebastian may be setting us up for takeaways from the case discussion
From Lambert's point of view, what of the following are necessary for the long-term survival of the firm?
To be both a low cost producer and a value-added supplier
To choose between a domestic supplier and a foreign supplier, the video recommends comparing...
Total landed costs
What is NOT true of the time factor in international shipping?
Transportation lead times are very consistent
When are tariffs paid?
When goods are transferred from an FTZ into the country.
What is the main differentiating characteristic of a liner?
a common carrier vessel that sails on a regular schedule and serves many customers
Which type of an ocean carrier has the video likened to a city public bus service?
a liner
Containerships
a type of general cargo vessels that carry containers
What is the main differentiating characteristic of a tramp?
a vessel that does not operate on a fixed schedule and is entirely chartered to one customer
The special status of a Foreign Trade Zone (FTZ) in the US means that ...
an FTZ is not considered part of the US territory for customs purposes.
Total landed costs refer to the total cost of a product once it has...
arrived at the buyer's door.
Which is another name for general, or packaged, cargo?
break-bulk cargo
Liquefied Natural Gas
bulk cargo
Bulk Cargo
cargo is free form with no packaging whatsoever
Which is NOT a benefit of an FTZ for the government and/or business community of the country it is located in?
competitive advantages for foreign companies over domestic competitors
Frozen poultry in a 40-ft refrigerated ("reefer") container
containerized cargo
Break-Bulk Carriers
former name for general cargo vessels that carried pallets of goods and were located by stevedores
General Cargo Vessels
generic name for ships that carry break bulk cargo of any kind
Packaging provides protection. Against what type of protection does packaging provide? 1. Mechanical damage 2. Water damage 3. Theft 4. Pilferage
i, ii, iii, and iv
Which costs will need to be taken into account for BOTH domestic and foreign supplier in a more comprehensive and sophisticated calculation of total landed costs?
inventory costs
Automobiles
neo-bulk cargo
Break-Bulk Cargo
packaged products loaded individually
Containerized Cargo
products placed in containers
Which part of the total landed costs should be taken into account for BOTH domestic and foreign supplier?
quoted price at the origin
Roll on-Roll off Vessels
ships for transportation of vehicles that drive in and out of the vessel through a ramp
Tankers
ships specialized in carrying liquid bulk cargo
LNG Vessels
ships that carry Liquified Nitrogen Gas
Ore and Bulk Ships
ships with large compartments to carry loads of ore, grain, or coal
Combination Ships
special bulk ships that carry both liquid and dry bulk
_________ and _________ utility are provided by logistics.
time, place
The video likened the calculation of the total landed costs to the calculation of ...
total logistics costs
According to the video, which costs of dealing with a foreign supplier are NOT hidden or difficult to quantify?
transportation and insurance
Neo-Bulk Cargo
unpackaged products loaded individually
Project Cargo
unusual cargo that cannot be routinely shipped