LCSM 3960
Using Wilson's EOQ formula, what will happen to the average inventory level (Q*/2) if unit cost is DECREASED by 4.1% and annual demand is INCREASED by 4.1% at the same time? A. (Q*/2) will increase. B. (Q*/2) will decrease. C. (Q*/2) will remain the same.
A. (Q*/2) will increase.
Please read the following statements: Statement I. Most logistics budgets are static. Statement II. Most logistics costs are dynamic. A. Both statements are true. B. The first statement is true, the second is false. C. The first statement is false, the second statement is true. D. Both statements are false.
A. Both statements are true.
Seasonal stocks are NOT influenced by A. EOQ B. weather C. transportation D. holidays
A. EOQ
There are four steps in the Managing Sourcing and Procurement Processes. Which does not belong? A. Examine off shore and e-procurement suppliers B. Evaluate the effectiveness of the strategic sourcing process C. Determine the necessary levels of investment D. Determine the type of purchase
A. Examine off shore and e-procurement suppliers
In the Item Procurement Importance Matrix, what item is described as low risk, low value? A. Generics B. Commodities C. Criticals D. Distinctives
A. Generics
A DRP system is usually coupled with a _______ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods. A. MRP B. JIT C. Kan Ban D. VMI/ Consignment
A. MRP
One of the major challenges of supply chain management is A. Maintaining the visibility of inventory. B. Forward buying. C. Building safety-stock inventory. D. Pushing inventory back to vendors.
A. Maintaining the visibility of inventory.
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. E. Optimization models will guarantee increased profits.
A. Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation.
Gross margin equals A. Sales minus COGS B. COGS - Taxes C. Sales + Taxes - COGS D. COGS - Sales
A. Sales minus COGS
If a firm concentrates on reducing the individual costs of each separate logistics function or activity, overall logistics costs may NOT reduce. A. True B. False
A. True
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. a lower, long-distance through rate charged for the shipment
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 offshore.
A. allowing specialization of tasks.
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 offshore.
A. allowing specialization of tasks.
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. are often related to regulatory policy at the local, state, and federal levels
The macro approach that locates a warehouse or distribution center at a point that minimizes transportation costs for products moving between a manufacturing plant and the markets, and is relatively simplistic: A. center of gravity approach B. Hoover's model C. Von Thunen's model D. Weber's model E. none of these are macro location approaches
A. center of gravity approach
Packaging is A. critical to logistics B. critical to manufacturing C. critical to product differential D. a factor in outsourcing
A. critical to logistics
Dependent demand relates to A. demand for another inventory item or product B. the spare parts needed to fill the order C. VMI inventories D. the cost of capital for the firm
A. demand for another inventory item or product
Which of the following is the "marketing mix"? A. distribution, price, product, promotion B. price, finance, management, customer service C. product, engineering, research, and design D. profit, accounting, distribution, retailing E. promotion, wholesaling, warehousing, purchasing
A. distribution, price, product, promotion
Air carriers were historically looked upon as A. emergency only carriers B. having equipment shortages C. a fringe participant D. insignificant
A. emergency only carriers
In the short run, the firm's network is _________ while in the long run it is ________. A. fixed, variable B. reversible, fixed C. adoptable, reversible D. variable, reversible
A. fixed, variable
Which type of strategic global logistics channel intermediary provides expert advice to small international shippers, consolidates small shipments, and performs routine actions that shipments require? A. foreign freight forwarder B. NVOCC C. customs house broker D. export packer
A. foreign freight forwarder
Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtracts the cost of goods sold. A. gross sales B. back orders C. the forecast D. gross margin
A. gross sales
Resource requirements planning (RRP) A. is a long-run, macro-level planning tool B. checks the feasibility of the master production schedule C. checks the feasibility of the materials requirement plan D. is a long-range materials plan that translates annual business plans
A. is a long-run, macro-level planning tool
What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse? A. materials handling B. physical distribution C. business logistics D. order fulfillment
A. materials handling
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. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates
What are fixed established spatial points where goods stop for storage or processing? A. nodes B. links C. cost centers D. fulfillment centers
A. nodes
In selecting a transport mode or carrier, the most important factor for most shippers would be: A. on-time pickups and deliveries B. carrier reputation C. quality of carrier sales force D. lowest freight rate E. satisfactory insurance coverage
A. on-time pickups and deliveries
Oversupply is created by: A. phantom demand B. returns and cancellations C. forecasting failures D. poor channel selection
A. phantom demand
An inbound-to-operations logistics system is also referred to as A. physical supply. B. physical distribution. C. dedicated fulfillment. D. demand management.
A. physical supply.
Lean production relies on A. pull-based systems B. push-based systems C. the Toyota production system (TPS) D. just-in-time system
A. pull-based systems
Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a A. steering committee B. list of vendors C. decision as whether to make or buy D. list of criticals
A. steering committee
Approximately two-thirds of 3PL customers think their providers supply A. tactical or operational services. B. strategic or integrative services. C. trucking and warehouse services. D. a firm that can supply a competency that is not core to the firm.
A. tactical or operational services.
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. to establish the number, location, and size of finished goods distribution centers and associated product flows.
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. water and air
Trade imbalances affect A. water carriers B. motor carriers C. railroads D. pipeline
A. water carriers
Transportation 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. when ownership and title of the goods passes from seller to buyer
Questions regarding financial vs. non-financial benefits of collaboration include A. whether collaboration pays for itself B. making sure that each firm uses the same type of accounting systems and fiscal year reporting C. that KPIs for involved parties should be widely distributed among the partners D. a reason for undertaking this task, as it is quite difficult
A. whether collaboration pays for itself
When a firm "sources strategically," it is A. working together with customers and suppliers in a creative, positive way B. seeking least cost vendors C. matching product and raw material flows to minimize transportation costs D. reacting to current competitive situations
A. working together with customers and suppliers in a creative, positive way
Each of following is an inventory holding cost EXCEPT: A. Warehouse cost. B. Accounting cost. C. Obsolescence. D. Interest opportunity cost. E. Inventory shrinkage.
B. Accounting cost.
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. Asia
Assuming the cost to place an order is constant, all other things remaining the same, DECREASING the order quantity (Q*) causes total ANNUAL ordering costs to: A. Decrease. B. Increase. C. Remain the same. D. Cannot be determined.
B. Increase.
The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is: A. Cycle stock. B. Safety stock. C. Promotional stock. D. Speculative stock. E. Transit stock.
B. Safety stock.
A project layout is: A. a floor plan of the production facility B. a fixed location layout where the product remains in place for the duration of production C. a product-focused layout in which machines and workers are arranged according to the progressive sequence of operations D. a process-focused layout that groups together similar equipment or functions
B. a fixed location layout where the product remains in place for the duration of production
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 pull system
A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called: A. just-in-time inventory B. adaptive manufacturing C. machine flexibility D. capacity requirements planning
B. adaptive manufacturing
The decision to alter the supply chain process is essentially ___________ issue. A. management B. an optimization C. a supply chain D. a customer satisfaction
B. an optimization
WIP inventories are A. NOT included on the balance sheet B. associated with manufacturing C. the same as VMI inventories D. NOT impacted by EOQ
B. associated with manufacturing
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. assumes that the raw materials sources and finished goods markets are fixed
Activity Based Costing A. is useful for distributions centers but not customers. B. can be combined with customer segmentation. C. is too sophisticated for many applications. D. is a very new management science.
B. can be combined with customer segmentation.
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. closed-loop system
If demand and lead time are constant, only___________ is necessary. A. associated stock B. cycle stock C. safety stock D. speculative stock E. seasonal stock
B. cycle stock
Which is NOT a manufacturing method? A. make to stock B. delayed differentiation C. build to order D. assemble to order
B. delayed differentiation
Which of these is NOT a production method? A. make-to-stock B. delayed differentiation C. build to order D. assemble to order
B. delayed differentiation
Inventory and the GDP grew by ______ amounts between 1994 and 2010. A. the same B. different C. inversely proportional D. exponential
B. different
Processes that can produce a range of products are said to have A. economies of scale B. economies of scope C. routing flexibility D. work centers
B. economies of scope
While available evidence supports the fact that the president or CEO and the finance executive are often involved with the identification of the need for logistic services, A. customers are demanding a change. B. executives from other areas in the firms are also aware of such needs but to a lesser degree. C. a 4PL will suggest greater collaboration. D. off shore sourcing will point to greater need.
B. executives from other areas in the firms are also aware of such needs but to a lesser degree.
Each of the following functional areas would typically be included within logistics EXCEPT: A. customer service B. human resources/personnel management C. order processing D. transportation E. warehousing and storage
B. human resources/personnel management
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. incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone.
Capital cost focuses on the cost of capital tied up in ________ and the resulting lost opportunity from investing that capital elsewhere. A. plants B. inventory C. distribution centers D. WIP
B. inventory
For most firms, the MOST important measure of customer service is: A. profitability of the particular channel of distribution B. inventory availability within a specified order cycle time C. the length of the order cycle D. the number of decentralized transactions within a business cycle E. the ability to backorder
B. inventory availability within a specified order cycle time
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 firs
B. it should be coordinated closely with the corporate and overall business strategies that may be in place
Which of the following would NOT be a typical transportation management function? A. selecting the best modes of transportation B. keeping track of inventory in the warehouse(s) C. auditing freight bills D. negotiating rates with carriers E. choosing specific carriers
B. keeping track of inventory in the warehouse(s)
Which management area in an organization does not normally have transportation responsibility? A. marketing B. manufacturing C. procurement D. logistics
B. manufacturing
The demographics of our society has changed because A. the "Baby Boom" generation is now turning 60. B. of the increase in two-career families and single-parent households. C. of immigration. D. birth rates have changed.
B. of the increase in two-career families and single-parent
The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix A. price B. place C. product D. promotion
B. place
Customer relationship management is the art and science of A. demand management. B. positioning customers to improve the profitability of the organization. C. management discipline. D. customer profitability.
B. positioning customers to improve the profitability of the organization.
An organization selling its products FOB destination holds the title to the goods until: A. picked up by the trucker B. products reach the customer's facility C. the customer is invoiced D. the customer receives the goods into their inventory system
B. products reach the customer's facility
An important sustainability issue that has received much more scrutiny in recent years is the: A. focus on adequate inventory levels B. reduction in packaging waste by using alternate materials C. effort to move warehouse storage closer to consumers D. emphasis on materials handling and warehouse design
B. reduction in packaging waste by using alternate materials
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. tailoring the chain to be responsive to the needs of individual customer segments
All the following are inventory risk costs EXCEPT: A. obsolescence B. taxes C. damage D. shrinkage E. relocation costs
B. taxes
Companies with 10,000 purchase transactions or more per year should consider A. strategic sourcing solutions B. transactional procurement solutions C. business-to-business transactions D. collaboration tools
B. transactional procurement solutions
Which is NOT a mode of transportation? A. truck B. air C. 3PL D. pipeline
C. 3PL
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. Determine how the benefits will be shared
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 an outsourcing strategy to maximize asset utilization D. Adopt Channel-Spanning Performance Measures
C. Develop an outsourcing strategy to maximize asset utilization
The biggest and best known example of a regional trade agreement (RTA): 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. European Union (EU)
____________, is a set of international standards that establish the minimum requirements for all organization's quality system. A. Deming Award B. Malcolm Baldrige National Quality Award C. ISO 9000 D. ISO 14000 E. Supplier Certification Award Program
C. ISO 9000
Full collaboration is the dynamic combination of A. buyers, sellers, retailers, and 3PLs B. buyers, sellers, retailers, 3PLs, and appropriate government agencies. C. both vertical and horizontal collaboration. D. buyers and sellers only
C. both vertical and horizontal collaboration.
Another driving influence for supply chain reexamination has been the desire of organizations to change their supply chain focus from a __________ to an "investment" center. A. warehouse system B. logistics-oriented system C. cost center D. value neutral
C. cost center
The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions. A. channel orders B. vendors and suppliers C. customer demand D. SO&P processes
C. customer demand
Ordering cost refers to the expense of placing an order and A. includes the cost of capital. B. relates to the material management concept. C. does not include the cost of the product. D. not receiving it.
C. does not include the cost of the product.
Which of the following would be considered a nontraditional service being offered by carriers? A. claims handling B. contract carriage C. facility location analysis D. pickup and delivery E. rating (pricing)
C. facility location analysis
Information and __________ are important dimensions in reverse logistics and closed loop supply chains. A. transportation B. flow C. financials D. direction
C. financials
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. had a major impact on firms
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. has caused expense issues for carriers
The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is NOT included? A. complexity B. inventory deployment C. inventory carrying costs D. technology
C. inventory carrying costs
A(n) _______ relationship generally exists between the cost of lost sales and inventory cost. A. reverse B. proportional C. inverse D. non linear
C. inverse
ALL of the following represent savings associated with volume buying EXCEPT A. reduction in purchase price B. reduction in administrative costs C. lower capital costs associated with the inventory investment D. supports JIT purchasing E. 3. and 4.
C. lower capital costs associated with the inventory investment
Outsourcing involves A. moving company facilities away from the home office B. hiring foreign nationals to manage parts of the business C. obtaining materials, parts, and products from other companies D. building a factory in another country
C. obtaining materials, parts, and products from other companies
Which of these is NOT a form of purchasing? A. purchasing B. procurement C. process improvement D. sourcing
C. process improvement
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. promote supply chain excellence
Which of the following is NOT a reactive capability strategy? A. machine flexibility B. routing flexibility C. resource requirements planning D. offshoring
C. resource requirements planning
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. seeking materials and goods not available in their own land
The term replenishment cycle refers to A. orders for raw material B. material management C. the acquisition of additional D. inventory inventory and material management
C. the acquisition of additional
Assemble-to-order production A. customer orders are filled from finished goods inventories, and production orders are used to replenish finished goods inventories B. the finished product is a combination of standard and custom-designed components that meet unique needs of a specific customer C. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer D. highly tailored products are created for the customer whose specifications require unique engineering design or significant customization
C. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer
Those customers who are in the "Danger Zone" segment are A. likely to switch to a competitor B. have been a customer for less than a year C. the least profitable. D. are using ABC to drive down the price
C. the least profitable.
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 significant increase in volume of reverse flows
Piggyback is a form of intermodal transportation that primarily involves the following two transport modes: A. air and rail B. water and pipeline C. truck and rail D. air and water
C. truck and rail
Reasons for engaging in forward buying include: A. delay the impact of rising costs B. decreases the firm's average cost of capital in the short run C. provides protection against future anticipated shortages D. A. and C. only E. A., B., and C.
D. A. and C. only
Demand management includes A. Flows of products. B. Flows of services. C. Information about capital. D. All of these answers.
D. All of these answers.
One of the four supply chain flows in Figure 1 - 7 that has received increased attention from supply chain managers due to the growth in technology is: A. Product flow B. Information flow C. Cash flow D. Demand flow
D. Demand flow
Which of the following is NOT a supply chain decision area regarding ROA improvement? A. Channel Structure Management B. Inventory Management C. Order Management D. Information Management
D. Information Management
Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors. A. This is still true and has not changed. B. Computerization has greatly increased the flow of information from the source. C. The "Big Box" stores have developed their own sources. D. None of these answers.
D. None of these answers.
ALL of the following have affected international logistics EXCEPT: A. Currency fluctuations. B. Deregulation of the U.S. ocean liner industry. C. Trade policies. D. The passage of the Sarbanes-Oxley Act by the United Nations. E. Intermodalism.
D. The passage of the Sarbanes-Oxley Act by the United Nations.
Pareto Analysis may be used to classify parts, customers, or activities. When determining the Pareto segments to classify parts, you should: A. Identify 80% of the total value of all the parts as these will represent exactly 20% of the part numbers. B. Identify 20% of the inventory value as this will represent exactly 80% of the part numbers. C. Identify 80% of the number of parts as these will represent exactly 20% of the inventory value. D. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds. E. Identify 20% of the part numbers as these will represent exactly 80% of the inventory value.
D. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds
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. all of these
Effective order management can have an impact on A. reducing supply chain costs B. increasing revenues C. improving ROA D. all of these answers
D. all of these answers
Simulation models are designed to A. gurantee 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. allow the decision maker to test the effects of alternative locations
A third-party logistics firm may be defined as A. an outsource service. B. a firm that owns trucks and warehouses. C. a firm that owns trucks and warehouses and provides computer support. D. an external supplier that performs or manages all or part of a company's logistics functions.
D. an external supplier that performs or manages all or part of a company's logistics functions.
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. are figuring more prominently into reverse logistics programs
A closed loop system deals with A. green laws. B. recycling. C. waste flow. D. both forward and reverse flows.
D. both forward and reverse flows.
Which is NOT part of dependability? A. cycle time B. safe delivery C. correct orders D. consistent pricing
D. consistent pricing
All of the following are advantages of containers in international distribution EXCEPT: A. costs due to loss or damage are reduced B. labor costs in freight handling are reduced C. containers are more easily stored and transported than other types of shipments D. containers are available in only one size E. containers are able to serve as temporary storage facilities at ports and terminals
D. containers are available in only one size
Many organizations are working more closely with A. customers B. customers and suppliers C. third-party logistics firms D. customers, suppliers, and various types of logistics suppliers
D. customers, suppliers, and various types of logistics suppliers
Batching economies or cycle stocks usually arise from three sources. Which of these is NOT a source? A. procurement B. transportation C. production D. demand
D. demand
What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service? A. quality B. financial considerations C. reliability D. desirable capabilities
D. desirable capabilities
The Supply Chain Concept A. is very new and considered cutting edge technology B. is highly dependent of computerization C. is not always well understood by senior managers D. developed from the previous Physical Distribution concept.
D. developed from the previous Physical Distribution concept.
In the event of a "stockout" at your location, one of the things that could happen is A. the vendor's plant shuts down B. the cost of capital is increased C. the SCOR process would come into play D. extra shipping cost may be incurred
D. extra shipping cost may be incurred
The term functional silos refers to: A. product storage for physical supply. B. the non communication between customers and vendors. C. a technique to secure corporate marketing strategies. D. lack of coordination between departments.
D. lack of coordination between departments.
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/products, information, financials, and demand.
D. manage materials/products, information, financials, and demand.
An outbound-to-customer logistics system is also referred to as A. integrated fulfillment. B. dedicated fulfillment. C. store fulfillment. D. physical distribution.
D. physical distribution.
JIT is a _______ system. A. push B. Pareto's Law C. MRP D. pull
D. pull
There are four major categories with examples that provide a useful way for examining logistics and supply chain performance: They are time, ______, cost, and supporting metrics. A. delivery B. KPIs C. competition D. quality
D. quality
What technology has helped make the physical inventory-taking process more efficient and effective? A. advances in forecasting B. transportation management systems C. just-in-time inventory D. scanning of bar-coded RFID tags
D. scanning of bar-coded RFID tags
Form utility drives the need for A. supply chain capabilities only B. time utility and place utility C. place utility only D. supply chain capabilities, time utility, and place utility
D. supply chain capabilities, time utility, and place utility
Which of the answers below is an example of the creation of form utility by a LOGISTICS ACTIVITY? A. when lumber is cut and made into a chair B. when a firm's finance manager approves customer purchases on a credit basis C. when Dell combines components with software to produce a computer to a customer's specifications D. the breaking bulk and repackaging at a distribution center
D. the breaking bulk and repackaging at a distribution center
Capacity is A. determined by lean manufacturing B. the maximum amount of square footage available for inventory storage in a facility C. determined by raw materials flows D. the maximum amount of work that an organization is capable of completing in a given period of time
D. the maximum amount of work that an organization is capable of completing in a given period of time
A critical outcome of the supply chain is to deliver A. on management's expectations. B. profits. C. cost/value. D. the right product to the right place.
D. the right product to the right place.
The transportation activity adds _______ utility to products. A. form and place B. possession C. time D. time and place E. all of the above utilities would be added by transportation
D. time and place
Inventory is an ASSET on the balance sheet and a(n) __________ on the income statement. A. liability B. footnote C. statement D. variable expense
D. variable expense
Companies do not know their true costs for all of the following reasons EXCEPT: A. In standard cost systems, fixed costs are often treated the same as variable costs. B. Accounting costs are computed to provide historical records. C. Allocation of business costs common to multiple segments tend to be subjective and arbitrary. D. Accounting systems tend to report in aggregate. E. All of the above are valid reasons.
E. All of the above are valid reasons.
Other things being equal, HIGH inventory carrying costs will tend to lead to: A. use of a slower mode of transportation, such as railroads B. reducing customer service levels by lowering safety stock C. use of a more expensive mode of transportation such as motor carriers or airlines D. ordering more frequently E. B., C. and D.
E. B., C. and D.
Which of the following statements about just-in-time (JIT) is FALSE? A. JIT helps to reduce manufacturing cycle times. B. JIT has been defined as a philosophy that centers on the elimination of waste in the manufacturing process. C. JIT seeks to eliminate non-value-added activities. D. JIT helps a firm to reduce its overall material costs. E. JIT programs usually do not impact inventory turnover rates.
E. JIT programs usually do not impact inventory turnover rates.
Which of the following is NOT a principle reason for holding finished goods inventory? A. Production economies of scale. B. Speculative investments in perishable raw materials. C. Improvement of customer service. D. Transportation economies. E. Prevention of production shutdowns due to parts shortages.
E. Prevention of production shutdowns due to parts shortages.
If demand DECREASES by 13% and the value of each unit DECREASES by 13%, what will happen to the EOQ? (Assume that everything else remains the same). A. the EOQ will increase by 13%. B. the EOQ will increase by 26%. C. the EOQ will decrease by 13%. D. the EOQ will decrease by 26%. E. the EOQ will remain the same.
E. the EOQ will remain the same.
Increasing inventory turns from 10 to 15 has a greater impact than increasing inventory turns from 1 to 2. True False
False
Most customers place more value on speed of delivery in filling orders than on order reliability and/or order consistency. True False
False
When a traffic manager reduces the number of carriers used, market power is decreased. True. False.
False
By using the latest information technology it is possible to substitute information for inventory and other logistics expenses. True False
True
Decreasing inventory turnover may lead to increased profitability. True. False.
True
EOQ models exist that include adjustments for volume transportation rates and for quantity discounts. True False
True
For most shippers, in the selection of a specific transport mode or carrier, consistency of service is much more important than time-in-transit. True False
True
The "cost-of-service" pricing approach establishes a lower limit of transportation prices or rates. True. False.
True
The terms purchasing and procurement can often be used interchangeably, however procurement has a broader meaning, and includes purchasing, traffic, warehousing, and receiving inbound materials. True. False.
True