logistics exam 2 end of ch. questions
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
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. Compare the costs of service options to the costs angering customers
In a DRP, ending inventory equals which of the following? a. Ending inventory of the prior period + planned receipts - forecast/usage. b. Forecast/usage + ending inventory of prior period + planned receipts. c. Planned receipts - ending inventory of prior period - forecast/usage. d. Ending inventory of the prior week + forecast/usage - planned receipts.
a. Ending inventory of the prior period + planned receipts - forecast/usage.
Greater fill rates . . .? a. Indicate better customer service b. Require longer dwell times c. Require lower in-stock rates d. None of the above
a. Indicate better customer service
__________ creates possession utility. a. Marketing b. Getting things where they are needed c. Logistics d. Supply chain management
a. Marketing
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. Opt for the low-cost option
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. Railroads must own and maintain their own rights of way, leading to very high fixed costs
Retailers worldwide lose more than $400 billion in sales annually due to which of the following? a. Stockouts b. Excessive inventory holdings c. Food waste d. Technological innovation
a. Stockouts
Integrated Business Planning (IBP) helps you align _______ & _______. a. Supply, demand b. Price, location c. Safety stock, inventory d. Suppliers, customers e. Cause, effect
a. Supply, demand
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. The eyes of the customer
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. Unit train
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. Use of solar panels on their roofs
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. Weather-forecasting software
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. What has happened in the past and knowledge regarding how a system works
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. Air-water
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. Balancing the flow of freight between origin/destination locations.
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. Patagonia encourages its customers to buy less.
Which of the following would occur if a firm chose not to hold inventory for a given product? a. Holding costs would increase b. Stockout costs would increase c. Order placement costs would increase d. None of the above
b. Stockout costs would increase
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. To carry more freight arriving in the U.S. from an expanded Panama Canal.
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. To recognize that the greatest environmental impacts from a product can occur at any time during the product lifecycle.
Consider the following lead times: a) central warehouse to regional DC1: 6 days, b) central warehouse to regional DC2: 8 days, c) regional DC1 to store A: 3 days, d) regional DC2 to store B: 2 days. The distribution manager must plan shipments from the central warehouse at least ____ days in advance. a. 8 b. 9 c. 10 d. 11 e. 19
c. 10
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. Decisions we make in the design phase affect the sustainability at all future phases of the product lifecycle.
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. Early studies indicate that e-commerce actually results in a net carbon reduction.
The key question inventory management is concerned with is a. How do you price inventory for quick sale? b. How do you move inventory faster through the supply chain? c. How much inventory do you need? d. How do you reduce inventory carrying costs?
c. How much inventory do you need?
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. Longer-combination vehicles (LCVs)
Which mode of transportation is the slowest yet offers very reliable service? a. Air b. Truck c. Pipeline d. Railroad e. Water
c. Pipeline
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. Providing exceptional after-sales service
There are 420 units of a product on hand at the beginning of Week 1. If weekly demand is 80 units, and the replenishment lead time is two weeks, the first order will need to be placed at which of the following points in time? a. The beginning of week 2 b. The beginning of week 3 c. The beginning of week 4 d. The beginning of week 5
c. The beginning of week 4
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. The stowability of products
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. Weighed, cubed out
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. continuous
A distribution system comprises 2 central distribution centers (which are both replenished from a single plant), 8 regional warehouses, and 56 stores. The replenishment lead times are as follows: plant (2 weeks), DC (1 week), regional warehouse (1 week), store (1 week). What is the minimum planning horizon? a. 1 week b. 3 weeks c. 4 weeks d. 5 weeks
d. 5 weeks
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 above e. Only A and B
d. All of the above
or a given store, ending inventory in Week 12 is 500, and demand in Week 13 is 700. When will an order need to be released (planned) and for how much in order to satisfy all demand in Week 13 if the lead time is three weeks? a. An order of 200 units will need to be released in Week 9 b. An order of 500 units will need to be released in Week 10 c. An order of 500 units will need to be released in Week 9 d. An order of 200 units will need to be released in Week 10
d. An order of 200 units will need to be released in Week 10
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. Collaborative Planning, Forecasting, and Replenishment
The acronym RFID stands for which of the following? a. Residual Factory Inventory Designation b. Random Fault Investigation Duty c. Remote Flow Inspection Design d. Radio Frequency Identification
d. Radio Frequency Identification
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. Right decision makers were not talking to each other
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. Collaborative Transportation Management (CTM)
Inventory holding costs include which of the following? a. Physical warehousing charges b. Financial carrying charges c. The cost of building storage space (e.g., warehouses) d. All of the above e. Only A and B
e. Only A and B
Excess inventory . . .? a. Leads to costly inventory writedowns. b. Incurs unnecessary physical warehousing costs. c. Causes an increase in stockout costs. d. Ties up capital in inventory that is not needed. e. All of the above f. Only A, B, and D
f. Only A, B, and D
A fast, reliable mode of transportation will always provide the lowest total logistics cost. T or F
false
A reduction in inventory holdings will always result in greater firm profitability. T or F
false
Higher dwell times suggest that inventory moves more efficiently through the supply chain. T or F
false
In any given time period, total usage at the DC-level is equal to the sum of store-level demands. T or F
false
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. T or F
true
According to the square root law of cycle stocks, the throughput volume in a warehouse quadruples (all else equal), its average inventory levels will double. T or F
true
Big data (aka) predictive analytics enables the correlational analysis needed to look for hidden connections among phenomena so that you can make better forecasts. T or F
true
If you want to catch new trends quickly and you are using exponential smoothing, your alpha should be larger than .5. T or F
true
Most products will be transported by truck at some point in their distribution. T or F
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." T or F
true
The main goal of the S&OP business review meeting is to align plans and decisions with overall business goals T or F
true
Trade-offs are an important consideration in sustainability issues. T or F
true
Variability in transit times can be a major contributor to variation in order lead times. T or F
true
