LSCM 3960

Complexity in the supply chain is caused by

1. the number of SKUs. 2. locations of customers and suppliers. 3. transportation requirements.

Soft issues such as social and cultural concerns should not present a challenge for supply chain managers, whose role is to focus on the physical side of supply chain execution.

False

Supply and demand has become less volatile as managers become more adept at controlling the elements.

False

Supply chain managers no longer need to worry about suboptimization in light of today's technology

False

The North American Free Trade Agreement has removed all trade barriers between the U.S., Canada, and Mexico

False

The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2

False

The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis

False

The range of relationships with 3PLs ranges from being a vendor to being a vertical supplier

False

The utility created through the basic marketing activities is known as place utility

False

The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily.

False

To hold down distribution cost, the lowest cost carrier should always be used

False

A maquiladora plant is

a US plant performing manufacturing, processing, or assembly activity in Mexico

The global logistics channel intermediary that supervises the movement of goods through customs and ensures that the documentation accompanying a shipment is complete and accurate is known as

a customs house broker

A demand-driven system is also known as

a pull system

What technology has helped make the physical inventory-taking process more efficient and effective?

scanning of bar-coded RFID tags

Globalization was initially driven by countries

seeking materials and goods not available in their own land

When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called

short run analysis

Materials handling is concerned with

short-distance movement

Which of the following is not part of the Supply Chain network?

stores

A critical ingredient for the Third Era of globalization is

technological advances, especially in information technology and communications

Which of the answers below is an example of the creation of form utility by a logistics activity?

the breaking bulk and repackaging at a distribution center

Cost/Value refers to

the importance of cost and value at the very end of the supply chain

A critical outcome of the supply chain is to deliver

the right product to the right place

Which condition must be present before motor carriers and rail carriers can be used for international shipments?

the shipment must be between adjacent countries

Most retailers are essentially supply chain companies since

they buy products produced by others

Which is the main advantage of international air transport?

transit times

What is often the largest component of logistics costs?

transportation costs

Which are the major modes of international transportation?

water and air

Some individuals describe the current consumer as the "click here" generation because

we no longer wait for information to be "pushed out" to us.

Focused production is

a strategy in which a given plant produces one or two items of the company's total product line

Time utility depends on

having product available when the user wants it

Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury pontoon boats for customers on the East coast of the United States. Each boat requires thousands of parts purchased from over 1,000 vendors. A number of boats are in production at any one time, so a large number of parts constantly arrive and are stored. Once a boat is finished, it is sailed up the coast to a convenient port for customer delivery. Which type of logistics system does Water Cruisers use?

heavy inbound

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?

inventory carrying costs

A(n) _______ relationship exists between the cost of lost sales and inventory cost

inverse

Which category of ocean shipping offers set schedules over specified sea routes?

liner service

Performance measurement is important because

lower-level metrics in an organization must connect directly to the high-level performance to achieve goals

One of the major challenges of supply chain management is

maintaining the visibility of inventory

The Supply Chain should

manage materials and products, information, financials, and demand

All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:

marketing

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?

materials handling

What are fixed spatial points where goods stop for storage or processing?

nodes

Outsourcing involves

obtaining materials, parts, and products from other companies

The demographics of our society has changed because

of the increase in two-career families and single-parent households

The biggest and best known example of a regional trade agreement (RTA) is the

European Union (EU)

A Foreign Freight Forwarder is unregulated by the government

False

Operating globally has become harder to accomplish for individuals and small companies

False

Outsourcing is a fairly new concept.

False

A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services

False

A firm using air transportation cannot use the same packaging for international shipping as for domestic shipping because many cargo aircraft are not pressurized

False

A horizontal relationship refers to firms on the same level in the supply chain

False

A maquiladora plant can be located anywhere in South America

False

Customs Trade Partnership Against Terrorism (C-TPAT) is a mandatory program in which importers must participate

False

Drivers and facilitators are internal issues that an organization must address before seeking a 3PL

False

Export Trading Companies and Export Management Companies are essentially the same

False

Globalization has had little effect on consumers.

False

Globalization is not considered to be one of the external factors driving change in logistics.

False

In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement

False

Once a 3PL provider is chosen, it is not necessary for an organization to seek continuous improvements as the 3PL will handle that function

False

It is expected that some or all of the BRIC countries (Brazil, Russia, India & china) will replace the so-called VISTA countries (Vietnam, Indonesia, S. Africa, Turkey and Argentina) as low cost producers of various products and services.

False

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 ________ ?

Asia

America's ports are a key component of its global commerce. U.S. ports also play a vital role for the cruise industry. Which of these is not one of the top three departure ports for the cruise industry?

Cape Liberty, New Jersey

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

Computerization has greatly increased the flow of information from the source

One of the four supply chain flows in Figure 1 - 8 that has received increased attention from supply chain managers due to the growth in technology is

Demand flow

Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape?

Environmental concerns

It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfers

True

Many organizations have directed significant attention toward working more closely with supply chain partners, including not only customers and suppliers but also various types of logistics suppliers

True

Ocean transportation offsets slower service with lower rates than other modes

True

SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.

True

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.

True

The first stage in the process model for forming and sustaining supply chain relationships involves the process by which a manufacturer becomes fully aware of its logistics and supply chain needs

True

Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer at the right cost, is which definition of logistics?

Seven R's

The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect

True

The supply chain should manage four important flows, namely, materials and products, information, financials, and demand

True

The terms of a demise charter transfers full control of the chartered vessel to the charterer

True

The third era of globalization is said to have begun around the year 2000. The significant characteristic of this era is that it is being powered by individuals and smaller organizations in contrast to the countries of the first era and the large companies of the second era

True

Transportation is the physical movement or flow of goods

True

A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.

True

Acme Battery distributes its batteries to warehouses, where they are stored until ordered by a retailer. The warehouses are located close by the retail markets served. This is the logistics channel approach to logistics

True

An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow

True

An importer can store goods in a bonded warehouse for up to three years without paying duty.

True

Collaboration is usually defined as a "business practice that encourages individual organizations to share information and resources for the benefit of all".

True

During the 1990s and 2000s, logistics costs as a percentage of gross national product declined

True

Even though there are references to supply chain management in the 1980s, SCM did not capture the attention of senior-level management until the 1990s

True

In his book "The Wealth of Nations", Adam Smith stated that economies and companies could improve their wealth by

allowing specialization of tasks

These are designated by the U.S. secretary of the treasury for the purpose of storing, repacking, sorting or cleaning imported merchandise entered for warehousing without paying import duties while the goods are in storage.

bonded warehouses

Which is a major category of ocean shipping?

charter vessels

Logistics, in its simplest form,

combines inbound logistics with the outbound logistics of physical distribution

Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics?

customer service

The Supply Chain Concept

developed from the previous Physical Distribution concept

A ______ analysis examines a logistics system over a long time period or range of output

dynamic

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

export trading company

It can be argued that ____ is the second language of logistics and supply chain management

finance

Goods can be stored in a bonded warehouse

for up to 3 years

Which type of global logistics channel intermediary enables goods to move through customs more easily by consolidating small shipments into more economical sizes?

foreign freight forwarder

The value that is added to goods through a manufacturing or assembly process is:

form utility

Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner. This is a

general definition

The utility that is created by moving goods from production points to market points where demand exists is referred to as

place

The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs?

promotional costs

Logistics creates which utility through production forecasting, production scheduling and inventory control?

quantity utility

An important sustainability issue that has received much more scrutiny in recent years is the:

reduction in packaging waste by using alternate materials