lscm 3960 exam 2
Seasonal stocks are NOT influenced by a. EOQ b. transportation c. holidays d. weather
a. EOQ
A downside of direct shipping is a. that it takes product flow away from the distribution center. b. can create higher transportation charges. c. that customer may not like this method. d. the product may not lend itself to this method.
b. can create higher transportation charges.
Vertical collaboration refers to a. collaboration with competitors. b. collaboration among buyers and sellers in the supply chain. c. collaboration that moves up the supply chain. d. collaboration among carriers and shippers.
b. collaboration among buyers and sellers in the supply chain.
Inventory and the GDP grew by ______ amounts between 1994 and 2010. a. the same b. different c. inversely proportional d. exponential
b. different
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. extra shipping cost may be incurred c. the cost of capital is increased d. the SCOR process would come into play
b. extra shipping cost may be incurred
Which management area in an organization does not normally have transportation responsibility? a. marketing b. manufacturing c. procurement d. logistics
b. manufacturing
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
The first facility consideration is to determine a. how close to source it should be. b. the size of each operation within the network. c. how close to the customer it should be. d. where competitors are located.
b. the size of each operation within the network.
Which of the following is NOT one of the five drivers of sustainable supply chain management practice? a. adaptability b. synchronization c. execution d. velocity
c. execution
Data synchronization focuses a. collaboration and RFID applications. b. on insuring that all elements are synchronized. c. timely and accurate updates. d. on having identical fields and characters so the message is received correctly.
c. timely and accurate updates.
The key financial consideration in choosing between private and 3PL distribution options is a. warehouse location(s). b. competency of in-house staff. c. volume of product being moved. d. type of product being handled.
c. volume of product being moved.
Which of these is NOT a distribution support function? a. safety, maintenance, and sanitation b. inventory control c. movement and storage d. information technology
c.Movement and storage
A(n) _______ relationship exists between the cost of lost sales and inventory cost. a. reverse b. proportional c. inverse d. non linear
c.inverse
How do carrying costs and order costs vary in the simple EOQ model? a. According to the time and year of the seasonal data b. Directly c. Inversely d. Not at all
c.inversely
As a carrier, you can charge more to ship 950 pounds of grandfather clocks than you can charge to ship 950 pounds of sand because:
the relative price of grandfather clocks is more elastic.
Managers have several options for software development and implementation. They include: a. internal development b. third party logistics firms c. external software vendors. d. all of these answers
d. all of these answers
Many organizations are working more closely with a. customers b. customers, suppliers, and various types of logistics suppliers c. third-party logistics firms d. customers and suppliers
b. customers, suppliers, and various types of logistics suppliers
Security legislation a. has created unnecessary restrictions of legitimate trade b. has not had much impact on transportation carriers c. has caused expense issues for carriers d. has caused some firms to stop offshore sourcing
c. has caused expense issues for carriers
Both economic and safety regulation of the US transportation industry have been declining since the onset of deregulation in the late 1970s. 1. True 2. False
false
In selecting a transport mode or carrier, the most important factor for most shippers would be: 1. quality of carrier sales force 2. on-time pickups and deliveries 3. satisfactory insurance coverage 4. carrier reputation 5. lowest freight rate
2. on-time pickups and deliveries
Increasing inventory turns from 10 to 15 has a greater impact than increasing inventory turns from 1 to 2. 1. True 2. False
2. False
The objective of inventory management is to: 1. Eliminate all overage inventory. 2. Increase corporate profitability. 3. Stockpile all types of inventory. 4. Minimize all types of inventory. 5. Maximize all types of inventory.
2. Increase corporate profitability.
Piggyback is a form of intermodal transportation that primarily involves the following two transport modes: 1. air and water 2. truck and rail 3. air and rail 4. water and pipeline
2. truck and rail
Increasing inventory turns from 10 to 15 has a greater impact than increasing inventory turns from 1 to 2. 1. True 2. False
2.False
Management will automatically achieve least total cost logistics by minimizing inventory carrying costs. 1. True 2.False
2.False
The "cost-of-service" pricing approach establishes a upper limit of transportation prices or rates. 1.true 2.false
2.false
When a traffic manager increases the number of carriers used, market power is increased. 1.true 2.false
2.false
EXCESSIVE inventory levels will always lower corporate return on net worth by: 1 Increasing out-of-pocket costs associated with research and design activities. 2 Increasing sales. 3 Tying up cash that could be used for other investment opportunities and/or reducing debt. 4 Increasing asset turnover.
3 Tying up cash that could be used for other investment opportunities and/or reducing debt.
Given that inventory valued at full cost equals $19.9 million, variable cost of the inventory is 60.8% of the full cost, and the inventory carrying cost is 28.1%, then the cost of carrying the inventory investment for one year is (your answer must be accurate to the nearest dollar):
3,399,875 ± 1,000
You have an annual demand of 600,000 units, inventory carrying cost of 30%, unit cost of $118, and an ordering cost of $43. Calculate Q* 1. 13,953 units 2. 180,000 units 3. 120.7 units 4. 1,207 units 5. 12,075 units
4. 1,207 units
Hasty Manufacturing orders 4,800 units annually. They order 4 times a year. They hold 112 units in safety stock. On average, the number of units Hasty Manufacturing holds is 1. 600 units 2. 112 units 3. 1312 units 4. 712 units 5. 1200 units
4. 712 units
Assuming the cost to place an order is constant, all other things remaining the same, INCREASING the order quantity (Q*) causes total ANNUAL ordering costs to: 1. Remain the same. 2. Increase. 3. Cannot be determined. 4. Decrease.
4. Decrease.
Which of the following is NOT a principle reason for holding finished goods inventory? 1. Transportation economies. 2. Production economies of scale. 3. Speculative investments in perishable raw materials. 4. Prevention of production shutdowns due to parts shortages. 5. Improvement of customer service.
4. Prevention of production shutdowns due to parts shortages.
The "value-of-service" pricing approach establishes an upper limit of transportation prices or rates.
True
When a traffic manager increases the number of carriers used, market power is decreased. 1.true 2.false
true
Private warehouses are generally advantageous when: (A) demand does not fluctuate; (B) greater control is necessary; (C) throughput is low and sporadic; (D) investment capital is scarce; (E) promotional items need to be stored.
(A) demand does not fluctuate & (B) Greater control is necessary
Which is NOT a mode of transportation? truck air distances 3PL pipeline
3PL
Decreasing inventory turnover may lead to increased profitability. 1. True. 2. False.
1. True.
JIT, MRP, MRP II, and DRP incorporate some version of the basic EOQ model into their philosophies true false
True
The most vital ingredient or component of a decision support system (DSS) is the quality of the data used as input. 1. True 2. False
true
Assume that a company has sales of $17.8 million (measured at cost, not sales price). Also assume that the firm's inventory turn is equal to 2 and the inventory carrying costs are equal to 33%. If inventory turns are increased from 2 to 5, this would result in decreasing inventory carrying costs by (your answer must be accurate to the nearest dollar):
1,762,200 ± 1,000 If you know the amount of sales AND the turnover then you can determine the amount of inventory held to support sales by dividing sales by turnover. Once you determine how much inventory you hold, you can determine the care and feeding of that inventory by multiplying this amount by the ICC. This represents youtr annual cost to hold the inventory. Assume your turnover changes but sales stay the same. (This is a good thing and a goal most firms strive for) You will hold less inventory to support the same amount of sales. Use the same method to calculate your new cost to xcarry inventory. Then, determine the difference.
Assume that a company has sales of $10.1 million (measured at cost, not sales price). Also assume that the firm's inventory turn is equal to 2 and the inventory carrying costs are equal to 32%. If inventory turns are increased from 2 to 6, this would result in decreasing inventory carrying costs by (your answer must be accurate to the nearest dollar):
1,077,333 ± 1,000
Assume that a company has sales of $11.7 million (measured at cost, not sales price). Also assume that the firm's inventory turn is equal to 2 and the inventory carrying costs are equal to 34.8%. If inventory turns are increased from 2 to 5, this would result in decreasing inventory carrying costs by (your answer must be accurate to the nearest dollar):
1,221,480 ± 1,000 If you know the amount of sales AND the turnover then you can determine the amount of inventory held to support sales by dividing sales by turnover. Once you determine how much inventory you hold, you can determine the care and feeding of that inventory by multiplying this amount by the ICC. This represents youtr annual cost to hold the inventory. Assume your turnover changes but sales stay the same. (This is a good thing and a goal most firms strive for) You will hold less inventory to support the same amount of sales. Use the same method to calculate your new cost to xcarry inventory. Then, determine the difference.
Assume that a company has sales of $17.2 million (measured at cost, not sales price). Also assume that the firm's inventory turn is equal to 2 and the inventory carrying costs are equal to 30%. If inventory turns are increased from 2 to 6, this would result in decreasing inventory carrying costs by (your answer must be accurate to the nearest dollar):
1,720,000 ± 1,000 If you know the amount of sales AND the turnover then you can determine the amount of inventory held to support sales by dividing sales by turnover. Once you determine how much inventory you hold, you can determine the care and feeding of that inventory by multiplying this amount by the ICC. This represents youtr annual cost to hold the inventory. Assume your turnover changes but sales stay the same. (This is a good thing and a goal most firms strive for) You will hold less inventory to support the same amount of sales. Use the same method to calculate your new cost to xcarry inventory. Then, determine the difference.
Using Wilson's EOQ formula, what will happen to the average inventory level (Q*/2) if unit cost is INCREASED by 4.1% and annual demand is DECREASED by 4.1% at the same time? 1. (Q*/2) will decrease. 2. (Q*/2) will increase. 3. (Q*/2) will remain the same.
1. (Q*/2) will decrease.
All of the following are criteria for an expert system EXCEPT: 1. There is no variability in people's ability to perform the task 2. The task primarily needs symbolic reasoning instead of numerical computation 3. The task requires use of decisions based on uncertain information 4. The task is neither too easy nor too difficult 5. The task requires use of human knowledge, judgment, and experience
1. There is no variability in people's ability to perform the task
The order cycle time is the time that elapses between: 1. the customer's order placement and the time the customer receives the product 2. the company receiving the order and the time the customer receives the product 3. the customer's order placement and the time the company ships the product 4. the company receiving the order and the time the company ships the product 5. none of the above
1. the customer's order placement and the time the customer receives the product
You have an annual demand of 600,000 units, inventory carrying cost of 30%, unit cost of $118, and an ordering cost of $43. Calculate Q* 1. 1,207 units 2. 13,953 units 3. 180,000 units 4. 120.7 units 5. 12,075 units
1. 1,207 units
To calculate inventory turnover: 1. Divide COGS (Income Statement) by Inventory (Balance Sheet). 2. Multiply Profit (Income Statement) times Current Assets (Balance Sheet). 3. Divide Revenues at cost (Income Statement) by Current Assets (Balance Sheet). 4. Multiply Inventory (Balance Sheet) times Return on Sales (Income Statement).
1. Divide COGS (Income Statement) by Inventory (Balance Sheet).
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: 1. Increase. 2. Cannot be determined. 3. Remain the same. 4. Decrease.
1. Increase.
If you were to "manage" Wilson's EOQ as a means of reducing your company inventories, which variable of Wilson's EOQ would make the most sense to change. 1. Ordering Cost. 2. Inventory Carrying Cost. 3. Annual Demand. 4. Unit Price.
1. Ordering Cost.
Cross-docking bypasses the storage activity by transferring items directly from the receiving dock to the shipping dock. 1. True 2. False
1. True
Methods of decreasing inventory related costs include all of the following measures EXCEPT: 1. increasing the number of expedited orders 2. reduction of transshipments of inventory 3. purging obsolete stock from the system 4. improving accuracy of forecasts 5. decreasing the number of back orders
1. increasing the number of expedited orders
If demand INCREASES by 13% and the value of each unit INCREASES by 13%, what will happen to the EOQ? (Assume that everything else remains the same). 1. the EOQ will remain the same. 2. the EOQ will increase by 26%. 3. the EOQ will decrease by 13%. 4. the EOQ will increase by 13%. 5. the EOQ will decrease by 26%.
1. the EOQ will remain the same.
Automated storage and retrieval systems (AS/RS) have many advantages, BUT a disadvantage of such systems is: 1. initial capital costs 2. actual increase in space required (rather than a decrease) 3. lessened control over inventory 4. increases in manpower required 5. higher operating costs
1.Initial capital costs
A warehouseperson may offer REDUCED rates to the user of a public warehouse if the user: 1. Stores goods regularly. 2. Stores higher valued goods. 3. Stores goods with low density. 4. Reduces the amount of packaging on fragile goods. 5. All of the above.
1.Store goods regularly
EOQ models exist that include adjustments for volume transportation rates and for quantity discounts. 1.True 2.False
1.True
The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is: 1. safety stock 2.cycle stock 3.promotional stock 4.transit stock 5.speculative stock
1.safety stock
For most shippers, in the selection of a specific transport mode or carrier, consistency of service is much more important than time-in-transit. 1.true 2.false
1.true
The "cost-of-service" pricing approach establishes a lower limit of transportation prices or rates. 1.true 2.false
1.true
When a traffic manager reduces the number of carriers used, market power is increased. 1.true 2.false
1.true
Assume that a company has sales of $19.6 million (measured at cost, not sales price). Also assume that the firm's inventory turn is equal to 2 and the inventory carrying costs are equal to 33.1%. If inventory turns are increased from 2 to 6, this would result in decreasing inventory carrying costs by (your answer must be accurate to the nearest dollar):
2,162,533 ± 1,000 If you know the amount of sales AND the turnover then you can determine the amount of inventory held to support sales by dividing sales by turnover. Once you determine how much inventory you hold, you can determine the care and feeding of that inventory by multiplying this amount by the ICC. This represents youtr annual cost to hold the inventory. Assume your turnover changes but sales stay the same. (This is a good thing and a goal most firms strive for) You will hold less inventory to support the same amount of sales. Use the same method to calculate your new cost to xcarry inventory. Then, determine the difference.
Given that inventory valued at full cost equals $10.3 million, variable cost of the inventory is 70.6% of the full cost, and the inventory carrying cost is 30%, then the cost of carrying the inventory investment for one year is (your answer must be accurate to the nearest dollar):
2,181,540 ± 1,000
A warehouseperson may offer HIGHER rates to the user of a public warehouse if the user: 1. Stores goods regularly. 2. Stores higher valued goods. 3. Increases the amount of packaging on fragile goods. 4. Stores goods with high density.
2. Stores higher valued goods.
Which of the following would NOT be a typical transportation management function? 1. auditing freight bills 2. choosing specific carriers 3. keeping track of inventory in the warehouse(s) 4. selecting the best modes of transportation 5. negotiating rates with carriers
3. keeping track of inventory in the warehouse(s)
Which of the following would NOT be a typical transportation management function? 1. auditing freight bills 2. choosing specific carriers 3. keeping track of inventory in the warehouse(s) 4. selecting the best modes of transportation 5. negotiating rates with carriers
3. keeping track of inventory in the warehouse(s)
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? 1. (Q*/2) will remain the same. 2. (Q*/2) will decrease. 3. (Q*/2) will increase.
3. (Q*/2) will increase.
All of the following are reasons for holding inventory EXCEPT: 1. Inventories enable specialization in manufacturing. 2. Inventories provide protection from uncertainties in demand in the order cycle. 3. Inventories eliminate the variation in supply and demand. 4. Inventories act as a buffer between critical interfaces within the channel of distribution. 5. Inventories enable the firm to achieve economies of scale.
3. Inventories eliminate the variation in supply and demand.
Which of the following statements about just-in-time (JIT) is FALSE? 1. JIT seeks to eliminate non-value-added activities. 2. JIT has been defined as a philosophy that centers on the elimination of waste in the manufacturing process. 3. JIT programs usually do not impact inventory turnover rates. 4. JIT helps a firm to reduce its overall material costs. 5. JIT helps to reduce manufacturing cycle times.
3. JIT programs usually do not impact inventory turnover rates.
Benefits to a carrier of improved routing and scheduling include all of the following EXCEPT: 1. reduced capital investment in equipment 2. higher levels of customer service 3. lessening of competition 4. lower transportation costs 5. greater vehicle utilization
3. lessening of competition
DECREASING the number of warehosue will ________ the warehousing and inventory costs, but may _____ transportation costs. 1. increase, increase 2. decrease, decrease 3. decrease, increase 4. increase, decrease
3.Decrease; Increase
Which of the following industries would be MOST likely to utilize automated storage and retrieval systems (AS/RS)? 1. building materials and lumber products 2. large machinery 3. non-refrigerated food items 4. carpeting 5. household furniture
3.Non-refrigerated food items
As the number of warehouses INCREASES: 1. Transport cost, inventory costs, and cost of lost sales will all decrease 2. Transport costs and inventory costs will decrease; cost of lost sales will increase 3. Transport costs and cost of lost sales will decrease; inventory costs will increase 4. Transport costs and cost of lost sales will increase; inventory costs will decrease 5. Transport costs will decrease; inventory costs and costs of lost sales will increase
3.Transport costs and cost of lost sales will decrease; inventory costs will increase
Given that inventory valued at full cost equals $21.2 million, variable cost of the inventory is 73.1% of the full cost, and the inventory carrying cost is 26.9%, then the cost of carrying the inventory investment for one year is (your answer must be accurate to the nearest dollar):
4,168,747 ± 1,000 The readings indicate you should calculate inventory carrying cost using the variable cost of the inventory (if known). First calculate the variable amount of inventory (Full_Cost x variable%) and then multiply by the ICC.
Given that inventory valued at full cost equals $21.1 million, variable cost of the inventory is 72.5% of the full cost, and the inventory carrying cost is 30.8%, then the cost of carrying the inventory investment for one year is (your answer must be accurate to the nearest dollar):
4,711,630 ± 1,000 The readings indicate you should calculate inventory carrying cost using the variable cost of the inventory (if known). First calculate the variable amount of inventory (Full_Cost x variable%) and then multiply by the ICC.
INCREASING the number of warehouses will __________ the warehousing and inventory costs, but may __________ transportation costs 1. decrease, increase 2. increase, increase 3. decrease, decrease 4. Increase, decrease
4. Increase, decrease
Which of the following would be considered a nontraditional service being offered by carriers? 1. pickup and delivery 2. claims handling 3. contract carriage 4. facility location analysis 5. rating (pricing)
4. facility location analysis
Quick response (QR)systems are usually implemented between __________ and __________ in a typical channel of distribution. 1. retailer; consumer (i.e., final customer) 2. manufacturer; consumer (i.e., final customer) 3. manufacturer; wholesaler 4. manufacturer; retailer 5. wholesaler; retailer
4. manufacturer; retailer
Which of the following is NOT a result (directly or indirectly) of the Motor Carrier Act of 1980? 1. increasing competition 2. overall number of TL motor carriers has increased 3. the number of negotiated shipper-carrier agreements has increased 4. service levels provided by carriers have declined 5. the influence of rate bureaus on carrier pricing has declined
4. service levels provided by carriers have declined
The transportation activity adds _______ utility to products. 1. form and place 2. possession 3. time 4. time and place 5. all of the above utilities would be added by transportation
4. time and place
Pareto Analysis may be used to classify parts, customers, or activities. When determining the Pareto segments to classify parts, you should: 1. Identify 80% of the total value of all the parts as these will represent exactly 20% of the part numbers. 2. Identify 20% of the part numbers as these will represent exactly 80% of the inventory value. 3. Identify 20% of the inventory value as this will represent exactly 80% of the part numbers. 4. 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. 5. Identify 80% of the number of parts as these will represent exactly 20% of the inventory value.
4. 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.
If demand and lead time are constant, only___________ is necessary. 1. associated stock 2. seasonal stock 3. speculative stock 4. cycle stock
4. cycle stock
Given that inventory valued at full cost equals $19.2 million, variable cost of the inventory is 81.4% of the full cost, and the inventory carrying cost is 34.4%, then the cost of carrying the inventory investment for one year is (your answer must be accurate to the nearest dollar):
5,376,307 ± 1,000
Which of the following is an example of the technology that supports integrated logistics systems? 1. bar coding 2. point of sale 3. electronics funds transfer 4. EDI 5. all of the above
5. all of the above
Efficient Consumer Response (ECR) would include: 1. continuous replenishment of inventory and flow through distribution 2. cooperative relationships between manufacturers, distributors, suppliers, and customers 3. greater use of point-of-sale data obtained by greater and more accurate use of bar coding 4. implementation of electronic data interchange (EDI) up and down the supply chain 5. all of the above answers are correct
5. all of the above answers are correct
Each of following is an inventory holding cost EXCEPT: 1. Inventory shrinkage. 2. Interest opportunity cost. 3. Obsolescence. 4. Warehouse cost. 5. Accounting cost.
5. Accounting cost.
All the following are inventory risk costs EXCEPT: 1. obsolescence 2. shrinkage 3. relocation costs 4. damage 5. taxes
5. taxes
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). 1. the EOQ will decrease by 26%. 2. the EOQ will increase by 13%. 3. the EOQ will increase by 26%. 4. the EOQ will decrease by 13%. 5. the EOQ will remain the same.
5. the EOQ will remain the same.
As the number of warehouses DECREASES: 1. Transport costs and inventory costs will decrease; cost of lost sales will increase 2. Transport costs will decrease; inventory costs and costs of lost sales will increase 3. Transport costs and cost of lost sales will decrease; inventory costs will increase 4. Transport cost, inventory costs, and cost of lost sales will all decrease 5. Transport costs and cost of lost sales will increase; inventory costs will decrease
5.Transportation costs & cost of lost sales will increase, inventory costs will decrease
Given that inventory valued at full cost equals $25.2 million, variable cost of the inventory is 83.9% of the full cost, and the inventory carrying cost is 29.3%, then the cost of carrying the inventory investment for one year is (your answer must be accurate to the nearest dollar):
6,194,840 ± 1,000 The readings indicate you should calculate inventory carrying cost using the variable cost of the inventory (if known). First calculate the variable amount of inventory (Full_Cost x variable%) and then multiply by the ICC.
Jim Bob Airlines has one 63 seat plan. On its last five flights it had 45 passengers from MSY to DFW, 35 passengers from DFW to OKL, 35 passengers from OKL to TUL, 42 passengers from TUL to FWB, and 48 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)
65.1 ± 0%
Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition? a. services b. accessibility c. pricing d. performance
b. accessibility
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 distances in today's global supply chains produce a. higher cost b. longer transit time c. more disruptions d. all of these
d. all of these
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.
The authors of your textbook would agree _____ would usually be the most optimal in terms of domestic shipment for receiving inbound materials.
FOB origin
INCREASING inventory turnover always will lead to INCREASED profitability. true false
False
T/F: The manufacturer must lead the channel design process regardless of the relative market power and financial strength of the members of the supply chain.
False
What are the typical characteristics of commodities transported by air carriage?
High value to weight relationship
INCREASING the number of warehouses will __________ the warehousing and inventory costs, but may __________ transportation costs.
Increase, decrease
Jiffy company buys 500 cases of paper cups from The Paper Cup Company, under the terms FOB origin. The cups are damaged in transit. Who is responsible to submit the damage claim for insurance settlement.
Jiffy Company
Your road atlas falls on the floor and opens to page 14. The map indicates the intersection of Federal Interstates I-85 and I-24. The corner of the page which normally indicates the state or providence associated with this map has been chewed off by your dieting room mate. If you were standing at the intersection of these Federal Interstates, which region of the United States are you in
Southeastern
Which of the following applies to the "value of service" pricing model?
The Model considers the ability of the transported product to withstand the transportation costs.
By using the latest information technology it is possible to substitute information for inventory and other logistics expenses. 1. True 2. False
True
Which applies when rates are based upon the "cost of service" pricing model?
The supply side of pricing is considered.
Which of the following is NOT among the underpinnings of the JIT approach?
Zero Inventories
Full collaboration is the dynamic combination of a. both vertical and horizontal collaboration. b. buyers, sellers, retailers, 3PLs, and appropriate government agencies. c. buyers, sellers, retailers, and 3PLs d. buyers and sellers only
a. both vertical and horizontal collaboration.
The term supply chain information system (SCIS) is defined as: a. information systems that automate the flow of information between a firm and its suppliers. b. software that manages the supply chain. c. process management software that may or may not use ASP applications. d. technology that has enhanced the ability of companies to pay more attention to customers.
a. information systems that automate the flow of information between a firm and its suppliers.
Transportation terms of sale establish a. when ownership and title of the goods passes from seller to buyer b. which transportation mode must be used c. who handles freight claims d. what must be shown on the bill of lading.
a. when ownership and title of the goods passes from seller to buyer
A third-party logistics firm may be defined as a. an external supplier that performs or manages all or part of a company's logistics functions. b. a firm that owns trucks and warehouses and provides computer support. c. a firm that owns trucks and warehouses. d. an outsource service.
a. an external supplier that performs or manages all or part of a company's logistics functions.
Batching economies or cycle stocks usually arise from three sources. Which of these is NOT a source? a. demand b. production c. transportation d. procurement
a. demand
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. executives from other areas in the firms are also aware of such needs but to a lesser degree. b. off shore sourcing will point to greater need. c. customers are demanding a change. d. a 4PL will suggest greater collaboration.
a. executives from other areas in the firms are also aware of such needs but to a lesser degree.
The primary facility operations focus is a. on the movement and storage of product. b. inventory control and personnel issues. c. making sure KPIs are fulfilled. d. the WMS system.
a. on the movement and storage of product.
rtain raw materials can be stored a. outside. b. only in a 3PL facility. c. upside down. d. anywhere.
a. outside.
36. Which of these is not a freight document? a. routing guide b. bill of lading c. freight bill d. freight claims form
a. routing guide
One important interaction that must be considered is the tradeoff between distribution and ________ a. transportation. b. finance. c. marketing. d. services.
a. transportation
Inventory is an ASSET on the balance sheet and a(n) __________ on the income statement. a. variable expense b. statement c. liability d. footnote
a. variable expense
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.
Economic deregulation of transportation sparked several things. Which one does not belong? a. Decrease regulation of safety issues b. More competitive pricing c. Increase emphasis on performance d. Extension of service
a.Decreased regulation of safety issues.
The textbook provides an example of how SanDisk improved forecast accuracy by 25%, and achieved higher inventory turns and a lower cost structure as a result of implementing a. new ERP systems b. an advanced planning solution c. business intelligence tools d. a new supply chain execution tool
b. an advanced planning solution
Supply chain software that provides a platform for manufacturers, distributors, and retailers to aggregate and organize item-related data such as item number, price, description, and weight is called a. business intelligence tools b. data synchronization tools c. spreadsheets and database tools d. supply chain collaboration tools
b. data synchronization tools
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
Due to mergers and acquisitions in the software industry and ERP vendors moving into the supply chain applications market space, it is possible to purchase a. best of breed solutions from leading providers in each category b. supply chain software suites that combine planning, execution, event management, and related capabilities c. event management tools that monitor the supply chain for events that are out of tolerance d. spreadsheet software with expanded capabilities
b. supply chain software suites that combine planning, execution, event management, and related capabilities
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. Kan Ban b. MRP c. JIT d. VMI/ Consignment
b. MRP
The _________ of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses. a. availibility b. accuracy c. visibility d. accountability
c. visibility
Horizontal collaboration refers to a relationship that is ___________ and/or ____________. a. collaboration with horizontal and/or vertical competitors b. 3PLs to 3PLs and/or service provider to service provider c. buyer to buyer and/or seller to seller d. flat across the chain and/or involving partners equal in size
c. buyer to buyer and/or seller to seller
Desirability refers to a. performance reporting and scorecarding. b. attractive packaging choices. c. characteristics that influence modal selection. d. ride quality.
c. characteristics that influence modal selection
Challenges for the trucking industry include a. lack of flexibility b. oversupply of qualified drivers c. competition. d. limited equipment options
c. competition
Transportation efficiency promotes __________ in the supply chain. a. intermodal demand b. capacity c. competition d. KPIs
c. competition
Which department does not have any impact on inventory? a. finance b. manufacturing c. corporate governance d. marketing
c. corporate governance
Dependent demand relates to a. the spare parts needed to fill the order b. VMI inventories c. demand for another inventory item or product d. the cost of capital for the firm
c. demand for another inventory item or product
Ordering cost refers to the expense of placing an order and a. relates to the material management concept. b. not receiving it. c. does not include the cost of the product. d. includes the cost of capital.
c. does not include the cost of the product.
Air carriers were historically looked upon as a. a fringe participant b. having equipment shortages c. emergency only carriers d. insignificant
c. emergency only carriers
Whether the relationship may or may not be with a provider of logistics services, today's supply chain relationships are MOST EFFECTIVE when collaboration occurs among the ____________ who are involved. a. suppliers b. customers c. participants d. third party logistics providers
c. participants
35. 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.
JIT is a _______ system. a. push b. Pareto's Law c. pull d. MRP
c. pull
The least-frequently used IT-based services by customers of 3PLs are: a. global trade management and transport sourcing b. transportation management (execution) c. strategic and customer-related d. warehouse/distribution management
c. strategic and customer-related
Potential labor problems for distribution centers may be the result of a. low pay and long hours. b. competition from nearby firms. c. the graying of America. d. awareness of these job opportunities.
c. the graying of America.
Many 3PLs are using the technology area to distinguish themselves from
competitors
On-demand supply chain software that is not installed on a company computer is gaining in popularity. An issue to be addressed with this purchase option is: a. Functionality may not be as robust as traditional software b. Data control is an issue c. Total cost of ownership could exceed purchase cost over the long run d. All of these
d. All of these
Supply Chain software includes technologies that a. address virtually every function and task that occurs in the supply chain. b. help organizations plan, execute, and control supply chain activities in real time. c. help to maintain visibility of inventory d. all of these answers
d. all of these answers
ERP systems a. are taking the place of SCIS systems. b. require RFID to be fully functional. c. focus primarily on manufacturing issues d. have information elements needed by SCIS applications.
d. have information elements needed by SCIS applications.
Which of the below is NOT part of the seven Rs of logistics the? a. information b. cost c. place d. quality
d. quality
Trade imbalances affect a. railroads b. motor carriers c. pipeline d. water carriers
d. water carriers
Distribution facilities can provide numerous services, depending on the requirements of the supply chain. Which of these is not a typical service? a. assortment b. accumulation c. allocation d. activity
d. activity
The primary tradeoffs and relationships between resources include the following a. space vs. equipment b. equipment vs. people c. people vs. space d. all of the above
d. all of the above
The roles of the distribution center include __________ a. balancing supply and demand. b. protecting against uncertainty and promoting transportation economies. c. promoting transportation economies. d. balancing supply and demand, protecting against uncertainty, and promoting transportation economies.
d. balancing supply and demand, protecting against uncertainty, and promoting transportation economies.
Which of these is not a support function? a. inventory control b. safety, maintenance, and sanitation c. information technology d. movement and storage
d. movement and storage
Railroads fall into a group called a. service challenged carriers b. intermodal operators c. nonintegrated carriers d. natural monopolies
d. natural monopolies
___________ is/are a major barrier to the effective use of information technology. a. Effective applications b. Cost c. Management support d. People
d. people
Asset utilization is a very important aspect of a. KPIs. b. 3PL distribution facilities. c. commercial distribution facilities. d. private distribution facilities.
d. private distribution facilities.
Approximately two-thirds of 3PL customers think their providers supply a. strategic or integrative services. b. a firm that can supply a competency that is not core to the firm. c. trucking and warehouse services. d. tactical or operational services.
d. tactical or operational services.
The drawback of centralized inventory is: a. that it undercuts the dispersed distribution concept. b. that it increases the amount of inventory required. c. strains the ability of the carrier network. d. that it extends lead times and results in higher transportation costs.
d. that it extends lead times and results in higher transportation costs.
Currently the biggest challenge for the trucking industry include: a. Economic regulation b. Teen age truck drivers c. Air freight d. Driver shortage and competition
d.Driver shortages and competition
When a traffic manager reduces the number of carriers used, market power is decreased.
false
