Logistics Test 1 T/F
Stockouts refer to a situation where a company is out of an item at the same time that there is demand for that item.
True
Superior logistics is an essential component of corporate strategies for many big-box retailers.
True
The current definition of logistics, as promulgated by the Council of Supply Chain Management Professionals, suggests that logistics is part of the supply chain process.
True
The financing channel handles a company's credit and payment for goods.
True
The key to the total cost approach is that all relevant cost items are considered simultaneously when making a decision.
True
The most significant contribution that the logistics channel makes to the overall channel process is the sorting function.
True
The ownership channel is the one where buy and sell agreements are reached.
True
The sorting function has four steps.
True
The systems approach indicates that a company's objectives can be realize by recognizing the mutual interdependence of the major functional areas of a firm.
True
Transportation represents the most costly logistics activity in many organizations.
True
U.S. News & World Report has highlighted logistician as one of the 50 best careers.
True
A broker is a type of intermediary often associated with the negotiations channel.
True
A commonly used logistical intermediary is the freight forwarder.
True
Absolute and relative logistics costs in relation to Gross Domestic Product vary from country to country.
True
Disintermediation refers the removal of intermediaries between producer and consumer.
True
Humanitarian logistics represents an emerging application of logistics to not-for-profit organizations.
True
Logistics offers many companies important route for creating marketing superiority.
True
Long production runs sometimes result in excessive inventory of products with limited demand for them.
True
Many promotional decisions, such as pricing campaigns that lower the price of certain items, require close coordination between marketing and logistics.
True
Packaging can have both a marketing and logistical dimension.
True
Postponement is the delay of value-added activities such as assembly, production, and packaging to the latest possible time.
True
Reductions in economic regulation allowed individual transportation companies flexibility in pricing and service.
True
Demand forecasting is not considered to be a logistics-related activity.
False
Dual distribution refers to an alliance that allows customers to purchase products from two or more name-brand retailers at one store location.
False
In mass logistics, groups of customers with similar logical needs and wants are provided with logistics services appropriate to those wants and needs.
False
Interfunctional logistics attempts to coordinate materials management and physical distribution in a cost efficient manner that supports an organization's customer service objectives.
False
Intermediaries assume ownership of goods while they're in the marketing channel.
False
It is better for a logistics manager to be a generalist rather than a specialist.
False
Landed costs refer to the price of a product at its source.
False
Logistical decisions tend not to be impacted by marketers' growing emphasis on offering sustainable products.
False
Logistics clearly contributes to time and form utility.
False
Logistics has played a minor role in the growth of global trade.
False
Logistics is only concerned with forward flows, that is, those directed towards the point of consumption.
False
Market demassification suggests that the customer desires a product offering that is highly tailed to her/his exact preference.
False
Physical distribution is synonymous with materials management.
False
The finance department tends to measure inventory in terms of units while logistics tends to measure inventory in terms of cost / value.
False
The four general types of economic utility are production, possession, time and place.
False
The purpose of logistics is to maximize customer service.
False
The sorting function takes place between retailers and the consumer.
False
There is no linkage between the promotions and logistics channels.
False