MKT 365 Exam 2 Questions

Public warehousing is always a more cost-efficient option than private warehousing because of a large initial investment.

False

Transactional relationships typically requires a higher level of integration and collaboration than strategic relationships

False

When you have "Bottleneck" suppliers, you can typically have a greater purchasing power as a buyer

False

Information based 3PL providers help customers with monetary issues and financial flows in the supply chain such as freight rating, freight bill auditing, and accounting.

False This describes FINANCIAL based 3PL providers, NOT INFORMATION based 3PL providers.

Asset-based 3PLs tend to be more flexible and unbiased in decision making but lack significant internal capability for customer requirements

False This is a characteristic of NONasset-based 3PL providers

As the number of warehouses increases, cost of lost sales is likely to decrease.

True

It is more beneficial to build a transactional relationship with a supplier that provides standardized products such as stationaries used to maintain basic operations.

True

Product characteristics and product flow requirements of supply chains drive the design of distribution processes.

True

While collaborative relationships can improve responsiveness to customers' needs, conflicting business objectives can be a barrier in forming collaborative relationships.

True

What are the TWO major factors (criteria) used for supplier segmentation in the Kraljic Matrix? a. Risk b. Profitability c. Quality d. Reliability

a. Risk b. Profitability

Which of the following is an example of "facilitators" in decision to form relationships? a. corporate compatibility b. cost efficiency c. customer service d. profit growth

a. corporate compatibility

When you decide to form a relationship with an external provider of logistics services, which of the following primary competencies should be considered? Select all that apply. a. expertise b. strategic fit c. firm size d. ability to invest e. management philosophy

a. expertise b. strategic fit d. ability to invest

Which of the following describes characteristics of centralized inventory positioning? Select all that apply. a. greater control over the inventory b. distance to customers is longer c. more facilities are needed d. average inventory levels rise due to safety stock

a. greater control over the inventory b. distance to customers is longer

Which of the following is statements is NOT TRUE about 3PLs and 4PLs? a. 4PL provides logistics and management services provided by 3PL b. 3PLs typically take on more risk than 4PLs due to the scope of the services c. 4PLS manage multiple 3PL companies as a control tower d. 4PL companies are more strategically involved with customers than 3PLs

b. 3PLs typically take on more risk than 4PLs due to the scope of the services

Which of the following explains "Leverage" items in the Kraljic Matrix? a. Low profitability, low supply risk b. High profitability, low supply risk c. Low profitability, high supply risk d. High profitability, high supply risk

b. High profitability, low supply risk

Which of the following is NOT TRUE about supplier selection criteria? a. Locations of key suppliers and cultural compatibility can impact evaluating desirable qualities in supplier selection b. Sustainability is important but does not affect supplier selection decisions c. On-time deliveries and order fulfillment indicate reliability of suppliers d. Production and technical capabilities should be considered for supplier evaluation

b. Sustainability is important but does not affect supplier selection decisions

When should an organization NOT use 3PLs? Select all that apply. a. When the company is expanding to unfamiliar markets b. When there are issues related to security of shipments c. When outsourcing is not a corporate philosophy d. When logistics is not a core competency of the company

b. When there are issues related to security of shipments c. When outsourcing is not a corporate philosophy

Among the factors that create a gap in expectations between customers and 3PL providers, which of the following is appropriate as one of the 3PL providers' expectations of customers? a. capable information technologies to support the relationship b. access to useful data to design solutions c. service offerings aligned with customer strategy d. solution innovation and executive level support

b. access to useful data to design solutions

Which of the following statements is INCORRECT about facility considerations? a. the more facilities in the distribution network, the smaller the size of each facility needs to be b. the items with larger total cubic space requirements should be located near the shipping area and those with smaller space requirements should be located far from the shipping area c. using a one-story facility can provide more usable space per investment dollar d. high volume (popular) items should be located near the shipping area and the low volume (unpopular) items away from the shipping area

b. the items with larger total cubic space requirements should be located near the shipping area and those with smaller space requirements should be located far from the shipping area

In which of the following statements would 3PL distribution be (typically) preferred over private distribution? a. when demand is stable b. when security requirements are lower c. when market density is higher d. when throughput volume is higher

b. when security requirements are lower

Which of the following statements is NOT TRUE as reasons for using 3PL services? a. Using 3PLs can be an opportunity for cost reductions b. By using 3PLs, an organization can gain access to emerging technology c. Especially when logistics is a core competency of an organization, organization are more likely to use 3PLs to improve firm performance d. 3PLs can be helpful when an organization is trying to expand to unfamiliar markets

c. Especially when logistics is a core competency of an organization, organization are more likely to use 3PLs to improve firm performance

"____________________" 3PL providers are freight forwarders, brokers, agents that facilitate the flow of goods on behalf of customers such as C.H. Robinson. a. Financial based b. Information based c. Forwarder based d. Transportation based e. Distribution based

c. Forwarder based

Which of the following methods is NOT appropriate as a way to improve issues of integrating supply and demand in the supply chains? a. Use Pull data b. Implement a vendor managed inventory system c. Make larger lots for warehousing d. Adopt collaborative planning, forecasting, and replenishment (CPFR) system

c. Make larger lots for warehousing

Which of the following statements is NOT TRUE about aligning supply chains? a. increased complexity due to globalized supply chain network creates challenges in aligning supply chains b. supply chains should be aligned with organizational strategies c. local optimization of warehouses or distribution centers helps to create a more integrated supply chain d. supply chain risks such as environmental regulations and economic uncertainty negatively affect sustaining an integrated supply chain

c. local optimization of warehouses or distribution centers helps to create a more integrated supply chain

Which of the following statements is NOT TRUE about warehousing management systems (WMS)? a. WMS can monitor employee productivity and labor quality b. It automates data collection in a distribution facility c. Order cycle time is increased by using WMS d. WMS improves order picking quality and inventory accuracy

c. order cycle time is increased by using WMS

Which of the following metrics measures customer service aspects of distribution performance? a. distribution efficiency b. capacity utilization c. perfect order index (POI) d. labor productivity

c. perfect order index (POI)

Which of the following questions is appropriate to evaluate "Scalability" of 3PLs? a. Does the 3PL have a deep talent pool with industry-specific supply chain knowledge? b. Does the 3PL have an established and verifiable track record of highly effective and efficient service? c. Does the 3PL deploy integrated planning and execution tools that meet your needs for shipment visibility, process optimization, and remote data access? d. Does the 3PL have the flexibility to handle your seasonal demand patterns, geographic expansion, and new fulfillment channels?

d. Does the 3PL have the flexibility to handle your seasonal demand patterns, geographic expansion, and new fulfillment channels?

Among the four primary functions of distribution facilities, ____________ involves the assembly of customer orders for multiple SKUs and avoids expenses related to placing numerous orders and having them shipped from a variety of locations. a. accumulation b. sortation c. allocation d. assortment

d. assortment

Which of the following product handling functions also focuses on storage activities of a distribution facility? a. order picking b. receiving c. replenishment d. shipping e. put-away

e. put-away

According to the process model, in which step should the following components be considered to build and sustain successful supply chain relationships? - Scope of governance of relationship - Leadership roles - Risk/reward sharing - Financial investment and responsibilities a. performing strategic assessment b. decision to form relationship c. evaluating alternatives d. selecting partners e. structuring operating model f. implementation and continuous improvement

e. structuring operating model