Supply Chain logistics mid term

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

Bada Bing Bada Boom Candy, Inc. supplies the milk chocolate to candy makers throughout the mid-western states. After tracking your customers' behaviors, you find that 43% of these companies like your chocolate enough that they will wait until you can fill the order--even if it means a delay. Twenty-nine percent need the chocolate for immediate production and will make a one-time buy somewhere else. They realize that your product is superior and will come back. However, 28% of your customers get put off by not having the product and will permanently switch to another supplier. • The added processes and delivery fees to get late deliveries out run around $500 per incident.• An average chocolate order is about 200 lbs. You charge $22 per pound. Your profit margin is 13%.• The lifetime stream of profits for a customer who permanently defects is estimated to be $254,096. What is the expected cost per stockout, rounded to the nearest dollar? a. $71,528 b. $78,768 c. $75,344 d. $66,997 e. None of the above

A

Because product returns are typically much higher with online sales than with in-store sales, online retailers should: A. understand why customers return products to develop strategies for reducing the number of returns B. limit returns for online items or charge hefty restocking fees C. find ways to drive customers into shopping at bricks-and-mortar stores D. all of the above

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

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

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 considering the eight wastes, which of the following is an example of overproduction? a. Giving the customer more product than ordered b. Holding excess inventory c. Cleaning more frequently than needed d. None 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 logistics, processing deals primarily with which of the following? A the flow of information and the visibility of shipments during movement and storage B the processing of payments quickly to improve cash flow C reducing waste D managing paperwork E non 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

In the 5 S's, which of the following is another way to say simplify? a. There is a place for everything, and everything in its place b. Eliminate the things that are not being used c. Standardize and develop repeatable processes d. Eliminate unnecessary movement waste

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

Menu pricing refers to which of the following? a. Paying only for the space and service that you use. b. Ordering lunch from the warehouse cafeteria. c. Ordering warehousing services over the Internet. d. Intensely competitive negotiations designed to get the lowest price possible from a warehouser.

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

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

Some companies resolve service failures so successfully that customer satisfaction actually increases following a disruption. What is this known as? a. Service recovery paradox b. Emergency relief system c. Customer satisfaction paradigm d. Efficiency planning

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 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

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 are the Four "P's" of marketing? a. Product, price, promotion, and place b. People, promotion, products, and profit c. Promotion, paper, press, and prestige d. Product, promotion, profit, and payment e. Places, people, promotion, and passion

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

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 has improved logistics done for India? A. raised the standard of living for rural farmers B. virtually eliminated poverty C. eliminated hunger D. all of the above

A

What is a Kaizen event? a. An event you hold to introduce lean principles in order to improve processes b. A specific methodology used to introduce the idea of the eight wastes c. An important method for improving organizational sustainability d. All of the above

A

What is the key to fulfilling current customer needs while maximizing long-term value co-creation? a. Defining the appropriate relationship intensity b. Avoiding companies such as military equipment manufacturers and firms that harm the environment c. Launching hostile takeovers of companies with undervalued assets d. Reduce unit costs that arise from an increase in production

A

What is the largest category of spending within logistics costs in the U.S. today? a. Inventory carrying cost b. Trucking cost c. Air freight cost d. Administrative costs

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 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

When considering logistics tradeoffs and what type of service level to emphasize, your company should consider which of the following? a. What are the most important service characteristics to its customers b. How to be competitive based on price c. There are really no such thing as tradeoffs d. None of the above

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

Which kind of warehouse arrangement is likely to have the greatest fixed cost for a company? a. Building a private automated warehouse b. Leasing a warehouse c. Long-term public warehousing d. Long-term contract warehousing e. Building a private warehouse to support manual operations

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 one of the seven rights of logistics? A. right transportation B right place C right cost D right time E none of the above, they are all part of the seven rights

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

Which reason below justifies the use of contract warehousing? a. It allows the company a degree of control yet is less expensive than private warehousing. b. It requires more in-depth negotiations than public warehousing to secure. c. It provides the warehouse customer with greater control than private warehousing. d. It demonstrates a greater commitment to customers than buying a private warehouse. e. The risks of inventory loss and damage are minimal in contract warehousing.

A

Which warehouse activity involves the selection of particular stock items needed to fulfill a customer order? a. Order picking b. Stockpiling c. Storage placement d. Warehouse shopping e. Cross-docking

A

Which warehouse operation supports the mass customization of products in distribution centers once a customer order is placed? Customized packaging of water bottles with private labels is one example of this kind of operation. a. Form postponement b. Accumulating c. Containerization of freight d. Contract warehousing e. Materials handling

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 a possession utility. A. marketing B. getting things where they are needed C. Logistics D. supply chain management

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.

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 company's risk-mitigation plan should be ________________________________. a. done by distribution channels b. performed on a location-by-location basis c. left up to each part of your supply chain d. based on industry standards

B

A cross-dock operation that receives truckload volumes of finished goods from a variety of consumer goods manufacturers and ships truckload volumes of assorted products to nearby retailers would be an example of a warehouse facility that serves which two purposes for the manufacturers? a. Supply mixing and inbound consolidation b. Product mixing and outbound consolidation c. Supply mixing and product mixing d. Product mixing and long-term storage e. Inbound consolidation and equipment utilization

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

Because of government regulations, a standardized trailer can weigh up to no more than 40,000 lbs. What type of trade off does this regulation affect? a. Logistics vs. the value of an item b. Logistics vs. Weight Density c. Logistics vs. Susceptibility to loss and damage d. All of the above

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

Events that have no history, yet they are considered possible and, with some speculation, can be assessed in terms of likelihood and potential impact might be called: a. Known-known b. Known-unknown c. Unknown-unknown d. Unknown-known e. "Freak events"

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

How does warehousing enable you to take advantage of production economies? a. Warehouses require large buildings. b. Warehouses allow you to produce in large quantities and store the product until it is sold. c. Warehouses enable you to ship in full truckload quantities. d. All of the above e. Only A and C

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

Many of the common metrics used in order fulfillment performance in warehousing are also used in what other area? a. Cross-dock performance b. Customer service performance c. Warehouse productivity performance d. All of the above e. None of the above

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

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 earthquake in 2011 that hit the coast of Japan caused some major problems for Toyota's production system allowing GM to regain the crown of being the number one car seller by volume. Which of the following was the lesson learned from this disaster? a. Toyota needs to focus on the customer value approach focusing on what people value b. Managers must balance lean operations with resiliency c. The control of activities to eliminate waste and improve cost drivers is critical d. Toyota needs to focus on the distribution routes, from raw materials through consumption

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

What are service logistics? a. The basis for customer service, which is the heart of logistics b. Focused on all the people, facilities, and supplies in place to effectively deliver services to customers c. The resources (facilities, people, and infrastructures) used to organized, deliver, and execute an event from initial schedule through teardown and clean-up d. All of the above

B

What do we call the mathematical expression that predicts the relationship between the number of warehouses and the amount of safety stock inventory that a company can expect to maintain? a. Portfolio Effect b. Square Root of N Rule c. Center-of-Gravity Effect d. Pareto Rule e. Greenhut Effect

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

What is the most efficient way a company can grow top-line profitably? a. Acquire new customers b. Retain and increase sales to existing customers c. Create new products d. Assess whether the economy is actually growing e. All 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 business functions combine to form a company's supply chain strategy? a. Marketing, production, and sales b. Logistics, production, and supply management c. Finance, accounting, and marketing d. Sales, logistics, and marketing e. New product development, forecasting, and logistics

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 company served as the inspiration of lean principles ? a. Procter & Gamble b. Toyota c. IBM d. Samsung e. Motorola

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 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

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 does not describe transportation waste? a. Moving things by a more expensive mode than the customer needs. b. Excess movement done by people c. Transshipping orders d. Buying things from distant locations instead of locally e. All of the above f. Only A, C, and D

B

Which of the following is NOT a classic warehouse layout principle? a. Minimize distance b. Maximize aisle space c. Create a smooth flow d. Use a single story e. None of the above; that is, they are all classic principles of warehouse design.

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 primary role of a breakbulk warehouse? a. Create easy flow through of inventory through the warehouse. b. Receive large-volume truckload (TL) shipments and break them down for shipping to different customers. c. Perform value-added services like labeling and final assembly. d. Help companies avoid paying customs duties on imported products.

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 not one of the 5 S's? a. Sustain b. Source c. Sort d. Sweep

B

Which of the following is not one of the eight wastes? a. Not utilizing staff talents b. Kaizen events c. Inventory d. Defects

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

Why is the determination of the appropriate size of a private warehouse so important? a. It is impossible to change the capacity of a warehouse. b. It is a decision that you will probably live with for many years. c. Public warehouse space is almost impossible to find in most areas. d. You can never lease your excess capacity. e. Property taxes as a function of square footage are negligible (very low).

B

The amount of money that is spent on logistics in the U.S economy in dollar terms is which of the following? A. Is flat B. has increased over time C. has decreased over time D. not enough information to answer this question

B.

"Supermarket supply" refers to which of the following? a. The inventory of grocery items stocked at a distribution center b. Discounts that salespeople issue to buyers of merchandise c. The assortment of goods that are pre-positioned in a supply chain d. The incentives used in supply chains to balance demand over the course of the year e. The weekly replenishment perishables in durable goods supply chains

C

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

Bada Bing Bada Boom Candy, Inc. supplies the milk chocolate to candy makers throughout the mid-western states. After tracking your customers' behaviors, you find that 43% of these companies like your chocolate enough that they will wait until you can fill the order--even if it means a delay. Twenty-nine percent need the chocolate for immediate production and will make a one-time buy somewhere else. They realize that your product is superior and will come back. However, 28% of your customers get put off by not having the product and will permanently switch to another supplier. • The added processes and delivery fees to get late deliveries out run around $500 per incident.• An average chocolate order is about 200 lbs. You charge $22 per pound. Your profit margin is 13%.• The lifetime stream of profits for a customer who permanently defects is estimated to be $254,096. Given the information above, what is the expected cost for a customer who decides to make a one-time buy eleswhere? a. $215 b. $400 c. $165.88 d. $193.37 e. None of the above

C

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

Highly automated warehouses tend to be . . .? a. Located in remote locations b. Highly seasonal facilities c. High volume facilities d. Low overhead cost e. All of the above

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 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

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

Moving groups of people and suppliers, setting up camps, replenishing supplies and people, breaking camp and moving out describes which type of logistics? a. Event logistics b. Passenger logistics c. Military logistics d. Service logistics e. Humanitarian logistics

C

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

C

Referring to timely delivery, what does "speed" refer to? a. How fast the trucks get from one destination to the other b. It is the acronym for self-programmed electronic equation delineator c. The length of the order cycle d. The rapidity of the operation e. All of the above

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 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

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 humanitarian logistics involves? a. Moving groups of people and supplies, setting up camps, replenishing supplies and people, breaking camp down again, and moving it out b. Focusing on B2B issues c. Planning the effective flow and storage of goods as well as the exchange of information to alleviate the suffering of people d. All of the above

C

What does order transparency improve? a. Planning, evaluation, and disregard b. Execution, planning, and neglect c. Planning, execution, and evaluation d. Evaluation, disregard, and neglect e. None of the above

C

What information drives supply chain execution in a planning based supply chain? a. Customer orders b. Supplier capacity c. Sales forecasts d. Cost advantages e. Promotional strategies

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 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 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

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 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 kind of warehouse arrangement is likely to have the highest variable cost for a company? a. Building a private automated warehouse b. Leasing a warehouse c. Short-term public warehousing d. Long-term contract warehousing e. Building a private warehouse to support manual operations

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 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 activity costs tends to decrease as we add warehouses to a distribution network and, then, increases such that it forms a "U" shape? a. Warehouse costs b. Inventory costs c. Transportation costs d. Cost of lost sales e. Order processing costs

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 describes event logistics? a. The management of logistics to deliver relief after a disaster b. Focused on all the people, facilities, and supplies in place to effectively deliver services to customers c. The resources (facilities, people, and infrastructures) used to organize, deliver and execute an event from initial schedule through tear down and clean-up d. Very predictable because every event is vastly different

C

Which of the following describes more developed economies? a. Rely on rail as a primary means of freight transportation b. Spend more on logistics because their products tend to be imported and shipped greater distance c. Spend less on logistics costs because their logistics systems are more efficient d. Logistics costs are unrelated to an economy's stage of development

C

Which of the following is NOT a traditional warehouse activity? a. Receiving b. Putaway c. Mass transit d. Consolidating and staging e. Loading and shipping

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 true regarding how a product's value influences logistics costs? a. Warehousing cost is unaffected by the value as warehousing depends on the space something takes up b. Transportation is unaffected by value as it is based on space and weight c. Inventory costs go up because more valuable products tie up more cash 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 is true regarding the trade off between transportation costs and service? a. Companies should use whatever transportation is required to achieve the customer's desired service level. b. Companies should make the customer pay for transportation costs. c. As the money we spend on transportation goes up, the companies cost of lost sales generally goes down. d. It is always a good investment to spend more money on transport to achieve higher service levels.

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

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

Bada Bing Bada Boom Candy, Inc. supplies the milk chocolate to candy makers throughout the mid-western states. After tracking your customers' behaviors, you find that 43% of these companies like your chocolate enough that they will wait until you can fill the order--even if it means a delay. Twenty-nine percent need the chocolate for immediate production and will make a one-time buy somewhere else. They realize that your product is superior and will come back. However, 28% of your customers get put off by not having the product and will permanently switch to another supplier. • The added processes and delivery fees to get late deliveries out run around $500 per incident.• An average chocolate order is about 200 lbs. You charge $22 per pound. Your profit margin is 13%.• The lifetime stream of profits for a customer who permanently defects is estimated to be $254,096. If Bada Bing Bada Boom Candy, Inc. stocks out of milk chocolate seven times a year, how much can you justify investing to eliminate stockouts through improved logistics, rounded to the nearest dollar? a. $782,950 b. $467,890 c. $753,440 d. $500,696 e. None of the above

D

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

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

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

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

In a risk classification matrix, risks are mapped according to likelihood and impact, Where are the risks that need immediate attention positioned on the matrix? a. Lower right corner b. In the center c. Lower left corner d. Upper right corner e. Upper left corner

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

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

The primary purpose a breakbulk facility is to: a. Perform value-added processing to products in-transit b. To reduce the time of shipping from the supplier to customers c. To reduce the amount of product handling from supplier to customers d. To reduce the summed cost of transportation and warehousing e. All of the above

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 abo

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

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 are the three types of distribution strategies? a. Intensive, relaxed, and laissez-faire b. Store, on-line, and home delivery c. Intensive, retentive, and shared d. Selective, intensive, and exclusive e. Exclusive, retentive, and inclusive

D

What do we know about service failures? a. Statistics show that out-of-stock occurrences have reduced retailer's overall sales by four percent b. Costs of stockouts are not shared equally among members of the supply chain c. Calculating the true cost of a stockout is very difficult d. All of the above

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

What is the waste of motion? a. Movement of materials or information that does not add value b. Paying for a more expensive mode of transport than your customer needs c. Moving goods multiple times d. Movement of people that does not add value e. All of the above

D

What is true about the 5 S's? a. They are an independent system to organize tools b. They tell us there is no such thing as being too lean c. They were invented by Subaru as part of the Subaru philosophy d. They remind us that resiliency matters e. All of the above

D

What kind of warehouse facility performs very differently from a conventional warehouse by receiving inventory and shipping it out in the same day? a. Rapid-flow warehouse b. Product mixing facility c. Mix-and-match warehouse d. Cross-dock e. High-rise warehouse

D

When considering product fragility, which of the following is not true? a. As fragility increases, so does transportation costs b. As fragility increases, so does packaging cost c. As fragility increases, so does warehousing cost d. As fragility increases, so does pilferage cost

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

When thinking about the various types of logistics, which of the following is true? a. There is very little in common from one type to the other b. They are all virtually identical--only the names are changed c. The book focuses on service logistics d. Many of the key logistics principles discussed are applicable to all of the various types of logistics

D

Which business strategy tends to drive (influence) all others? a. Logistics b. Production c. New product development d. Corporate e. Marketing

D

Which distribution strategy seeks to achieve the greatest reach in the market such that the product could be accessed by the most people possible? a. Exclusive distribution b. Exhaustive distribution c. Central distribution d. Intensive distribution e. Selective distribution

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 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 happens when you add additional warehouses to your distribution network? a. You cancel out the portfolio effect at individual warehouses b. You increase your total network safety stock c. You decrease the safety stock at each distribution center d. All of the above e. Only A and B

D

Which of the following is a key tool for performing customer profitability analysis? a. Automatic data processing b. Return on investment c. After receipt of order d. Activity-based costing e. Economic order quantity

D

Which of the following is a popular value-added service performed in modern warehousing? a. Mass customization b. Final Assembly c. Repair d. All of the above e. Only A and B

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 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

Which step in the risk management process involves actions taken to reduce or eliminate the risk factor? a. Risk identification b. Risk assessment c. Risk prioritization d. Risk mitigation e. Risk extension

D

Which type of product is most likely to use a leagile supply chain? a. A standard product that does not vary across customers b. A product that is unique from the ground up c. A product that customers insist be in-stock and immediately available d. A product that has small, yet important differences on the surface e. A product the customers regard as "commodity" and purchase is based on low cost

D

Why would your company pursue a selective distribution strategy? a. Resource limitations b. Market constraints c. Product is only popular in specific geographic areas d. All of the above

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

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

Cross-docking can achieve which of the following? a. Reduced warehousing cost b. Reduced inventory investment c. Improved inventory flow and velocity d. Improved synchronization between supply and demand e. All of the above

E

Good customer service leads to customer satisfaction and loyalty. What are the operational targets your logistics system needs to provide? a. Product availability b. Timely delivery c. Transparency d. Protection against disruption e. All of the above

E

How does an agile supply chain seek to out-compete rivals that use other supply chain strategies? a. Through low cost b. Through speed to market c. By providing a limited assortment of supply with minimal inventory investment d. By producing products on a regional basis to meet local needs e. By accommodating customers' specific preferences in product characteristics

E

Listening to employee suggestions for improvement is an example of which 5S methodology for eliminating waste? a. Sort b. Simplify c. Sweep d. Standardize e. Sustain

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

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

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

The warehouse activity that converts generic products into a wide assortment of unique items is called: a. Form postponement b. Mass customization c. Delayed gratification d. Order selection e. Only A and B

E

What does activity-based costing do for organizations? a. Gives accurate view of the costs of service b. Enables companies to build individual customer P&L statements c. Creates a synergy between customers and suppliers d. Develops a history of transactions for the customer e. Both A and B

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

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 are steps in ABC classification (i.e., applying Pareto's Law)? a. Classify companies by sales b. Provide stewardship for each customer c. Modify classifications based on strategic issues d. Restructure companies based on size e. Both A and C

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 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 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 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 major step in risk management? a. Risk identification b. Assessment c. Prioritization d. Mitigation 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 about transactional relationships? a. They are cost driven and arm's length b. They are vital to profitability c. They need and expect efficient service d. They do not have resources to waste with inefficient transactions, processes, processes, or partners e. All of the above

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

Which of the following technologies would you likely find in a modern warehouse? a. AS/RS system b. Radio frequency system c. Pick-to-light systems d. Conveyor belts e. All of the above f. Only B and D

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

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

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

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

Customer alliances are built upon which of the following? a. Long-term focus b. Senior leadership involvement c. Cross-organizational teams are widely employed d. Shared risks and rewards e. Open communication and linked information systems f. All of the above

F

How does warehousing enable you to take advantage of transportation economies? a. Warehousing lets you ship in less-than-truckload quantities. b. Warehouses enable you to receive full inbound shipments, which can be broken down and stored. c. Warehouses allow you to consolidate outbound shipments, helping you ship in full truckload quantities. d. Warehouses let you produce in large quantities. e. All of the above f. Only B and C

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

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

Once a company knows that a customer is no longer profitable, which of the folloiwng are appropriate options? a. Collaborate to reduce costs of service b. Raise prices c. Fire the customer d. Keep the status quo e. All of the above f. Only A, B, and C

F

Segmentation involves classifying customers based on their importance. Which tools are used to classify customers? a. ABC classification (Pareto's Law) b. Customer profitability analysis c. Balanced investment strategy d. Customer loyalty program e. None of the above f. Only A and B

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

What are some data management tools to assure product availability? a. Point of sales information b. Integrated business planning c. Predictive analytics d. ERP systems e. All of the above f. Only A, B, and C

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

What are the possible costs of a service failure? a. Back orders b. Lost suppliers c. Lost sales d. Lost customers e. All of the above f. Only A, C, and D

F

What role does radio frequency technology play in warehouse operations? a. Help pickers identify the right product to select to fill an order b. Help verify stocking location during putaway c. Communicate to warehouse workers when it is time to take a break d. Communicate to customers when an order is shipped e. All of the above f. Only A and B

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 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 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 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

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

A Red Tag Initiative is a lean activity that is designed to prioritize resources. You simply invite every member of your team to go through the facility and apply a red tag to the activities or resources that are most important to effective warehouse operations. True/False

False

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

False

According to the text, WalMart has may little effort or progress in reducing its GHG emissions. True/False

False

Activity-based cost management enables you to identify customers future growth potential. True/False

False

Activity-based costing is always a more appropriate tool than ABC classification. TRUE OR FALSE

False

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. True/False

False

All of the top five shipping ports in the U.S. are found on the nation's west coast to accommodate Trans-Pacific trade. True/False

False

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. TRUE OR FALSE

False

Breakbulk warehouses enable you to maximize the total ton-miles you ship by much less expensive LTL transportation. True/False

False

Case-pick and pallet-pick warehouses will have the same layout and flow of inventory. True/False

False

Each of the different kind of fill rate metrics provides the same insight into your order fulfillment capabilities and performance. Therefore, it doesn't matter which fill-rate metric you use. True/False

False

Economic globalization and technology diffusion has led to the homogenization of warehousing practices in countries like Argentina, India, and the U.S.

False

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

False

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

False

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. True/False

False

Just like in the movies, warehouses tend to be dark, dingy, and cavernous places to work. True/False

False

Logistics is typically evaluated as a profit center. True/False

False

Logistics performance affects costs, but not revenues. True/False

False

Measurement is a very straight forward process that few organizations struggle with. True/False

False

Only about 20% of all relationships are transctational in nature.True/False

False

Quantitative forecasting approaches are driven by experience and expertise rather than by data. True/False

False

Supply chain strategy usually drives a company's marketing and corporate strategies. True/False

False

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

False

The sustainability Consortium is part of the U.S. Environmental Protection Agency True/False

False

Warehousing is a niche logistics activity. That is, warehousing is NOT big business in industrialized countries. True/False

False

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

False

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

False

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

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

A Walmart flow-through DC is more than one million square feet in size (approximately 18 football fields under one roof) and uses 5-12 miles of conveyor belts to move hundreds of thousands of cases through the facility every day. True/False

True

A comprehensive warehouse management system (WMS) can provide decision support for activities performed throughout the warehouse, from the point of receiving, to put-away, picking, and shipping. True/False

True

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. True/False

True

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

True

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. True/False

True

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

True

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

True

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). TRUE OR FALSE

True

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

True

Grain silos and chemical storage tanks represent forms of warehousing. True/False

True

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

True

If your demand shifts are temporary and non-representative, you should place minimal weight on your previous period's actual demand. True/False

True

Inventory that is left overnight in a cross-dock is often called "Frustrated Freight." True/False

True

Logistics metrics often fail to resonate or be meaningful to top management. True/False

True

Most distribution centers contribute to a company's greenhouse gas emissions through the use of electricity to run the distribution center. True/False

True

Most products will be transported by truck at some point in their distribution. True/False

True

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. True/False

True

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. True/False

True

Not all customers are created equal. Nor is every transaction equally important True/False

True

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." True/False

True

The lower your firm's operating margin, the greater the impact of logistics cost reduction vis-a-vis that of additional sales. True/False

True

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

True

Trade-offs are an important consideration in sustainability issues. True/False

True

Variability in transit times can be a major contributor to variation in order lead times. True/False

True

Warehouses let you separate production from consumption, enabling you to take advantage of Production Economies of scale.

True

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

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 tool commonly used to identify, evaluate, and prioritize mistakes and problems that can occur in a business is called: a. Failure mode effects analysis b. Hotspot identification c. Radar mapping d. Risk projection analysis e. 5S analysis

A