SCM Multiple Choice (Final)

A major challenge is ___________ of total cost of the return flow processes. a. the estimation b. the management c. the tracking d. the control

a

Air carriers were historically looked upon as a. emergency only carriers. b. having equipment shortages. c. a fringe participant. d. insignificant.

a

Certain raw materials can be stored a. outside. b. only in a 3PL facility. c. upside down. d. anywhere.

a

Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition? a. accessibility b. pricing c. performance d. services

a

In his book "The Wealth of Nations", Adam Smith stated that economies and companies could improve their wealth by a. allowing specialization of tasks. b. ensuring that logistics is used to gain advantage in the marketplace. c. becoming multi-national. d.moving production off shore.

a

In the short run, the firm's network is _________ while in the long run it is ________. a. fixed, variable b. adoptable, reversible c. variable, reversible d. reversible, fixed

a

One important interaction that must be considered is the tradeoff between distribution and ________ a. transportation. b. finance. c. marketing. d. services.

a

Recycling and environmental concerns a. are often related to regulatory policy at the local, state, and federal levels. b. have led to waste steams being managed by 3PLs. c. require the review of the feasibility of the materials requirement plan. d. have led to green laws.

a

Retailers lose, on average _____ percent of gross sales due to returns. a. 3-5 b. 4 c. 20 d. 30

a

Terms of sale establish a. when ownership and title of the goods passes from seller to buyer. b. what must be shown on the bill of lading. c. which transportation mode must be used. d. who handles freight claims.

a

The _________ of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses. a. visibility b. availability c. accuracy d. accountability

a

The classic objective of a network design model has been a. to establish the number, location, and size of finished goods distribution centers and associated product flows. b. to find the best location for a forward facing warehouse. c. to examine the finished goods flow from the warehouse to the customer. d. to measure and control site locations.

a

The logistics/supply chain network transformation team a. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates. b. will not consider the potential involvement of third-party logistics suppliers as part of their responsibilities. c. includes workers from divisional levels only. d. should not include outside consultants.

a

The optimization model is based on a. precise mathematical procedures. b. sampling experiments. c. broad problem definitions. d. rule of thumb approaches.

a

The primary facility operations focus is a. on the movement and storage of product. b. inventory control and personnel issues. c. making sure KPIs are fulfilled. d. the WMS system.

a

These are designated by the U.S. secretary of the treasury for the purpose of storing, repacking, sorting or cleaning imported merchandise entered for warehousing without paying import duties while the goods are in storage. a. Bonded warehouses b. Hold-on-dock storage c. In-transit storage areas d. Transit sheds

a

Trade imbalances affect a. water carriers. b. motor carriers. c. railroads. d. pipelines.

a

What advantage does the transit privilege give to shippers located at intermediate locations? a. a lower, long-distance through rate charged for the shipment b. allows importers to enter a product and hold it without paying duties c. avoidance of terminal charges for each intermediate stop d. the right to change consignees during shipment

a

When a firm "sources strategically," it is a) working together with customers and suppliers in a creative, positive way. a) seeking least cost vendors. b) matching product and raw material flows to minimize transportation costs. c) reacting to current competitive situations.

a

Which are the major modes of international transportation? a. water and air b. water and rail c. rail and motor d. rail and air

a

Which category of ocean shipping offers set schedules over specified sea routes? a. liner service b. charter vessels c. private vessels d. demise charter vessels

a

Which is correct regarding tapering rates? a. the principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles b. transportation rates increase with distance directly in proportion to the distance c. in a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market d. uses transportation simplifications to recommend facility locations

a

Which is true regarding optimization models? a. Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation. b. Optimization models are able to accommodate broad problem definitions, rather than provide an optimum solution. c. The Grid Technique is a powerful optimization model. d. Optimization models will guarantee increased profits.

a

Which of these does NOT belong in the recommendations of the Reverse Logistics Educational Council? a. manufacturing b. gatekeeping c. zero returns d. information systems

a

Which of these is not a freight document? a. routing guide b. bill of lading c. freight bill d. freight claims form

a

Goods can be stored in a bonded warehouse a. for up to 3 years. b. until next year. c. Indefinitely. d. until the next shipment of the same product arrives.

a.

A closed loop system deals with a. green laws. b. both forward and reverse flows. c. waste flow. d. recycling.

b

A critical ingredient for the Third Era of globalization is: a. the global emphasis on tailoring products and marketing strategies to meet perceived local needs b. technological advances, especially in information technology and communications c. the global emphasis on profits and efficiency d. the global emphasis on the marketing mix and marketing functions

b

A demand-driven system is also known as a. a supply chain. b. a pull system. c. a marketing system. d. a multi-echelon system.

b

A downside of direct shipping is a. that it takes product flow away from the distribution center. b. can create higher transportation charges. c. that customer may not like this method. d. the product may not lend itself to this method.

b

A situation where a garage returns worn tires for retreading and receives them back is called a a. reverse logistics system. b. closed-loop system. c. waste stream. d. value added system.

b

America's ports are a key component of its global commerce. U.S. ports also play a vital role for the cruise industry. Which of these is not one of the top three departure ports for the cruise industry? a. Port Canaveral, Florida b. Cape Liberty, New Jersey c. Miami, Florida d. Ft. Lauderdale, Florida

b

Application of the grid technique to the location of a city warehouse a. is no different from applying it in any other situation. b. incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone. c. considers the costs of moving raw materials into the facility, and moving finished goods to the customers. d. accounts for information like highway access and facility availability within the grid coordinates.

b

As market forces continue to exert pressure on companies to improve profitability, the quest for lower-cost manufacturing has been a factor in the relocation of manufacturing from Mexico to ________ ? a. South America b. Asia c. Russia d. Canada

b

CEOs view SCM initiatives a. as an area which can be left to second tier executives. b. being primarily focused on cost reduction. c. being primarily focused on top line growth. d. being more of a financial concern.

b

Due to mergers and acquisitions in the software industry and ERP vendors moving into the supply chain applications market space, it is possible to purchase a. best of breed solutions from leading providers in each category b. supply chain software suites that combine planning, execution, event management, and related capabilities c. spreadsheet software with expanded capabilities d. event management tools that monitor the supply chain for events that are out of tolerance

b

ERP systems a. are taking the place of SCIS systems. b. have information elements needed by SCIS applications. c. require RFID to be fully functional. d. focus primarily on manufacturing issues

b

Green procurement strategies usually require collaboration with _____________. a. senior executives b. suppliers or vendors c. legal departments d. green laws

b

Heuristic models a. provide an optimum solution. b. are able to accommodate broad problem definitions. c. have fallen from use because of SAILS. d. are typically "seat of the pants" solutions.

b

The first facility consideration is to determine a. how close to source it should be. b. the size of each operation within the network. c. how close to the customer it should be. d. where competitors are located.

b

The grid technique a. is a variation of SAILS. b. assumes that the raw materials sources and finished goods markets are fixed. c. assumes that the raw materials sources and finished goods markets are variable. d. assumes non-linear transportation rates.

b

Transportation may account for as much as ____ percent of the cost of reverse flow. a. 20 b. 25 c. 30 d. 35

b

When a blanket rate structure is used, which factor is eliminated as a locational determinant? a. labor rate b. transportation rate c. raw material sources d. market sources

b

When a firm "customizes" their supply chain, it is a) trying to improve asset utilization. b) tailoring the chain to be responsive to the needs of individual customer segments. c) responding to competitive situations. d) revising its supply chain in light of current economic conditions.

b

Which condition must be present before motor carriers and rail carriers can be used for international shipments? a. shipments must be in volume and in bulk b. the shipment must be between adjacent countries c. no customs barriers can be imposed d. the shipment cannot pass through adjacent countries

b

Which is an advantage of the grid technique for facility location? a. it establishes the final determination of the best site b. computationally, it is relatively easy to use c. it is a dynamic approach with solutions remaining optimum over many time periods d. it considers topographic conditions in choosing the optimum location

b

Which is true regarding the facility/supply chain network design decision? a. the facility's impact on other functional areas should be considered, but it is not as important b. it should be coordinated closely with the corporate and overall business strategies that may be in place c. global locations should not be considered d. generally, qualitative criteria are considered first

b

Which management area in an organization does not normally have transportation responsibility? a. marketing b. manufacturing c. procurement d. logistics

b

___________ is/are a major barrier to the effective use of information technology. a. cost b. people c. effective applications d. management support

b

A maquiladora plant is a. a new type of flower. b. an entity created under NAFTA c. a U.S. plant performing manufacturing, processing, or assembly activity in Mexico. d. a factory owned by the Maquiladora Corporation.

c

Desirability refers to a. performance reporting and scorecarding. b. attractive packaging choices. c. characteristics that influence modal selection. d. ride quality.

c

Focused production is a. a strategic decision to make only what the market desires. b. used by those firms not sure of the market demands. c. a strategy in which a given plant produces one or two items of the company's total product line. d. a trend in the electronics industry with manufacturing in China.

c

From a business and supply chain perspective, ______________ are usually based upon a recognition that industrial systems need to be in harmony with nature by not depleting resources beyond their replacement or regeneration rate. a. life cycle practices b. ecological practices c. sustainability practices d. reverse logistics practices

c

Gemini products wishes to enter foreign markets but lacks the resources to do so. They evaluate their alternatives and approach Overseas Traders, LLC, a company that specializes in the foreign distribution of products of the type which Gemini manufacturers. Overseas purchases $50,000 of Gemini's products for sale on the international market. Overseas is which type of global logistics channel intermediary? a. NVOCC b. export packer c. export trading company d. customs house broker

c

Globalization was initially driven by countries a. seeking new territories. b. outside the U.S. seeking to establish plants in the U.S. c. seeking materials and goods not available in their own land. d. sponsoring trading missions.

c

Green laws have a. started reverse flows. b. only recently been enacted. c. had a major impact on firms. d. are still being evaluated.

c

Information and __________ are important dimensions of reverse logistics and closed-loop supply chains. a. transportation b. flow c. financials d. direction

c

Potential labor problems for distribution centers may be the result of a. low pay and long hours. b. competition from nearby firms. c. the graying of America. d. awareness of these job opportunities.

c

Railroads fall into a group called a. nonintegrated carriers. b. intermodal operators. c. natural monopolies. d. service challenged carriers.

c

Security legislation a. has not had much impact on transportation carriers. b. has caused some firms to stop offshore sourcing. c. has caused expense issues for carriers. d. has created unnecessary restrictions of legitimate trade.

c

The biggest and best known example of a regional trade agreement (RTA) is the: a. World Trade Organization (WTO) b. General Agreement on Tariffs and Trade (GATT) c. European Union (EU) d. Customs Trade Partnership Against Terrorism (C-TPAT)

c

The global logistics channel intermediary that supervises the movement of goods through customs and ensures that the documentation accompanying a shipment is complete and accurate is known as a. a foreign freight forwarder. b. an export packer. c. a customs house broker. d. a foreign trade specialist.

c

The key financial consideration in choosing between private and 3PL distribution options is a. warehouse location(s). b. competency of in-house staff. c. volume of product being moved. d. type of product being handled.

c

The main strategy behind routing guides is to a. maintain exact control. b. comply with or enforce FOB terms. c. promote supply chain excellence. d. select between modes.

c

The recent increased focus on reverse flows is attributable to a. pressure from environmental groups. b. increases in the price of oil. c. the significant increase in volume of reverse flows. d. new environmental legislation.

c

The term supply chain information system (SCIS) is defined as a. software that manages the supply chain. b. technology that has enhanced the ability of companies to pay more attention to customers. c. information systems that automate the flow of information between a firm and its suppliers. d. process management software that may or may not use ASP applications.

c

The textbook provides an example of how SanDisk improved forecast accuracy by 25%, and achieved higher inventory turns and a lower cost structure as a result of implementing a. a new supply chain execution tool b. business intelligence tools c. an advanced planning solution d. new ERP systems

c

What is the effect of tapering rates on facility location? a. pushes the raw materials sources toward the location b. pulls the facility toward the location c. pulls the location toward the source or the market d. makes the optimum location at the midpoint between raw material sources and the marketplace

c

Which is NOT true regarding logistics network design? a. the logistics/supply chain network transformation team is responsible for all elements of the logistics network design process. b. the logistics audit provides members of the transformation team with a comprehensive perspective on the firm's logistics process. c. "what-if" types of analysis can be conducted later, after the final network design has been established. d. the implementation plan serves as a useful road map for moving from the current logistics network to the desired one.

c

Which is correct regarding the transit privilege? a. it results in only an end point, either an origin or destination, being the optimum location b. it magnifies those geographic disadvantages that companies associate with a producer's location c. it permits the shipper to stop the shipment in transit and physically change the product's characteristic d. it is normally available for any location and commodity

c

Which is not a mode of transportation? a. truck b. air c. 3PL d. pipeline

c

Which is the main advantage of international air transport? a. freight rates b. flexibility c. transit times d. accessibility

c

Which major locational determinant considers locating near the competition? a. labor climate b. quality of life c. company preference d. supplier networks

c

Which of the below is not part of the seven Rs of logistics? a. information b. cost c. quality d. place

c

Which of the following does not belong in the list of the seven principles of supply chain management? a. Segment Customers Based on Service Needs b. Differentiate Products Closer to the Customer c. Develop Outsourcing Strategy to Maximize Asset Utilization d. Adopt Channel-Spanning Performance Measures

c

Which of the following is not part of how world class collaboration skills are developed? a. Define the benefits of collaboration b. Make the investment c. Determine how the benefits will be shared d. Dedicate "A" players

c

Asset utilization is a very important aspect of a. KPIs. b. 3PL distribution facilities. c. commercial distribution facilities. d. private distribution facilities.

d

Challenges for the trucking industry include a. lack of flexibility. b. limited equipment options. c. oversupply of qualified drivers. d. competition.

d

Corporate leaders a. already understand the importance of supply chain excellence. b. are seeking to reduce corporate assets which could have serious implications for supply chain managers. c. are managing on a quarterly results because of Wall Street expectations. d. do not clearly understand the importance of supply chain excellence.

d

Distribution facilities can provide numerous services, depending on the requirements of the supply chain. Which of these is not a typical service? a. assortment b. accumulation c. allocation d. activity

d

Managers have several options for software development and implementation. They include a. internal development. b. third party logistics firms. c. external software vendors. d. all of these answers

d

On-demand supply chain software that is not installed on a company computer is gaining in popularity. An issue to be addressed with this purchase option is a. Functionality may not be as robust as traditional software b. Data control is an issue c. Total cost of ownership could exceed purchase cost over the long run d. All of these

d

Simulation models a. guarantee optimum solutions. b. generate SAILS reports. c. search directly for the best warehouse configuration d. allow the decision maker to test the effects of alternative locations.

d

Supply Chain software includes technologies that a. address virtually every function and task that occurs in the supply chain. b. help organizations plan, execute, and control supply chain activities in real time. c. help to maintain visibility of inventory d. all of these answers

d

Supply chain software that provides a platform for manufacturers, distributors, and retailers to aggregate and organize item-related data such as item number, price, description, and weight is called a. business intelligence tools b. supply chain collaboration tools c. spreadsheets and database tools d. data synchronization tools

d

The Supply Chain should a.manage all aspects of transportation, selecting the least cost when possible. b.seek to maximize profits. c.use the same techniques internationally that it uses domestically. d.manage materials and products, information, financials, and demand.

d

The distances in today's global supply chains produce a. higher cost. b. longer transit times. c. more disruptions. d. all of these.

d

The drawback of centralized inventory is: a. that it undercuts the dispersed distribution concept. b. that it increases the amount of inventory required. c. strains the ability of the carrier network. d. that it extends lead times and results in higher transportation costs.

d

The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as a. a zero point. b. a source point. c. a breakeven point. d. a center of gravity.

d

The primary tradeoffs and relationships between resources include the following a. space vs. equipment b. equipment vs. people c. people vs. space d. all of the above

d

The reverse direction of flow has often been regarded as a a. cost center. b. cost center and a waste stream. c. necessary evil d. cost center, a waste stream, but a necessary evil.

d

The roles of the distribution center include __________ a. balancing supply and demand. b. protecting against uncertainty and promoting transportation economies. c. promoting transportation economies. d. balancing supply and demand, protecting against uncertainty, and promoting transportation economies.

d

Total life cycle considerations (TLC) a. mean the analysis of a waste stream. b. are being considered by manufacturing. c. can be critical to product differential. d. are figuring more prominently into reverse logistics programs.

d

Transportation efficiency promotes __________ in the supply chain. a. intermodal demand b. KPIs c. capacity d. competition

d

What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network? a. change in customer service requirements b. change in corporate ownership c. shifting locations of customer and/or supply markets d. all of these

d

Which is a major category of ocean shipping? a. passenger travel b. common carriers c. exempt carriers d. charter vessels

d

Which of the following is NOT one of the five drivers of sustainable supply chain management practice? a. adaptability b. synchronization c. velocity d. execution

d

Which of these is NOT a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location? a. strategically located cross-docking facilities b. use of third-party logistics services c. customer-direct delivery d. addition of many wholesaler/distributor operations

d

Which of these is not a support function? a. inventory control b. safety, maintenance, and sanitation c. information technology d. movement and storage

d

Which type of global logistics channel intermediary enables goods to move through customs more easily by consolidating small shipments into more economical sizes? a. customs house broker b. NVOCC c. export trader d. foreign freight forwarder

d