LSCM 3960 Final
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.
Transportation may account for as much as ____ percent of the cost of reverse flow.
25
Retailers lose, on average _____ percent of sales due to returns.
3-5
The CBL Exam Company is attempting to locate a new plant to serve the Midwest. The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the grid VERTICAL coordinate of:
3.95
The CBL Exam Company is attempting to locate a new plant to serve the Midwest. The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the grid HORIZONTAL coordinate of:
7.11
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
Each of following is an inventory holding cost EXCEPT:
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 ________?
Asia
What vendor selection criteria are described by production capability, labor relations, and operating controls?
Capability
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:
Center of gravity approach
DECREASING the number of warehouses will __________ the warehousing and inventory costs, but may __________ transportation costs.
Decrease, increase
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:
Decrease.
Reasons for engaging in forward buying include:
Delay the impact of rising costs and provides provides protection against future anticipated shortages
Which of the following does not belong in the list of the seven principles of supply chain management?
Develop an outsourcing strategy to maximize asset utilization
There are four steps in the Managing Sourcing and Procurement Processes. Which does not belong?
Examine off shore and e-procurement suppliers
Both economic and safety regulation of the US transportation industry have been declining since the onset of deregulation in the late 1970s.
False
Management will automatically achieve least total cost logistics by minimizing inventory carrying costs.
False
Most customers place more value on speed of delivery in filling orders than on order reliability and/or order consistency.
False
The grid technique determines the highest cost facility location in an area
False
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
It can be argued that _ is the second language of logistics and supply chain management.
Finance
What vendor selection criteria are described by price and financial stability?
Financial
____________, is a set of international standards that establish the minimum requirements for all organization's quality system.
ISO 9000
The objective of inventory management is to:
Increase corporate profitability
All of the following are reasons for holding inventory EXCEPT:
Inventories eliminate the variation in supply and demand.
A(n) _______ relationship generally exists between the cost of lost sales and inventory cost.
Inverse
Resource requirements planning (RRP)
Is a long-run, macro-level planning tool
Which of the following statements about just-in-time (JIT) is FALSE?
JIT programs usually do not impact inventory turnover rates.
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.
MRP
Which management area in an organization does not normally have transportation responsibility?
Manufacturing
All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:
Marketing
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.
Ordering Cost.
Which of the following is NOT a principle reason for holding finished goods inventory?
Prevention of production shutdowns due to parts shortages.
Which of these is NOT a form of purchasing?
Process improvement. Are: Sourcing, process improvement, purchasing
The product's dollar value typically affects the cost of logistics activities. Which is NOT one of these costs?
Promotion costs
The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is:
Safety stock.
Gross margin equals
Sales minus COGS
Logisticians seek cost trade-offs. A "positive" cost trade-off is a situation where:
Some costs increase, some decrease, and the net effect is that total costs decrease.
A warehouseperson may offer HIGHER rates to the user of a public warehouse if the user:
Stores higher valued goods.
All the following are inventory risk costs EXCEPT:
Taxes
Please read the following statements:Statement I. All logistics budgets are dynamic.Statement II. Some logistics costs are static.
The first statement is false, the second statement is true.
A push-based strategy works well for supply chains that focus on
The immediate delivery of off-the-shelf, low-cost, standardized goods
Pareto Analysis may be used to classify parts, customers, or activities. When determining the Pareto segments to classify parts, you should:
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 hold.
Pareto Analysis (also known as the 80/20 rule) may be used to classify parts, customers, or activities. Which is the BEST measurement to use when classifying customers with Pareto Analysis:
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 is often the largest component of logistics costs?
Transportation costs
Cross-docking bypasses the storage activity by transferring items directly from the receiving dock to the shipping dock.
True
EOQ models exist that include adjustments for volume transportation rates and for quantity discounts.
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
The "value-of-service" pricing approach establishes an upper limit of transportation prices or rates.
True
The most vital ingredient or component of a decision support system (DSS) is the quality of the data used as input.
True
When a traffic manager increases the number of carriers used, market power is decreased.
True
When a traffic manager reduces the number of carriers used, market power is increased.
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.
On a "PER UNIT" basis:
Variable costs are fixed with volume and fixed costs vary with volume.
Trade imbalances affect
Water Carriers
Which are the major modes of international transportation
Water and Air
A maquiladora plant is:
a U.S. plant performing manufacturing, processing, or assembly activity in Mexico.
The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as
a center of gravity
A project layout is:
a fixed location layout where the product remains in place for the duration of production
What advantage does the transit privilege give to shippers located at intermediate locations?
a lower, long-distance through rate charged for the shipment
A demand-driven system is also known as:
a pull system
The distances in today's global supply chains produce
a. higher cost b. longer transit time c. more disruptions
Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition?
accessibility
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:
all of these
Complexity in the supply chain is caused by
all of these answerers:transportation requirements.locations of customers and suppliers.the number of SKUs.
Effective order management can have an impact on
all of these answers, reducing supply chain costs, increasing revenues, improving ROA
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
an advanced planning solution
A third-party logistics firm may be defined as
an external supplier that performs or manages all or part of a company's logistics functions
The decision to alter the supply chain process is essentially ___________issue.
an optimization
Heuristic models
are able to accommodate broad problem definitions.
Total life cycle considerations (TLC)
are figuring more prominently into reverse logistics programs
WIP inventories are
associated with manufacturing
The grid technique
assumes that the raw materials sources and finished goods markets are fixed
A closed loop system deals with
both forward and reverse flows
Activity Based Costing
can be combined with customer segmentation
There are several classifications of purchased items. Which of the following is NOT one of those?
cash cows. Are: criticals, commodity, generics
Vertical collaboration refers to
collaboration among buyers and sellers in the supply chain.
Collaboration occurs when
companies leverage each other on an operational basis so that together they perform better than they did separately
Challenges for the trucking industry include
competition.
Which is NOT part of dependability?
consistent pricing
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.
cost center
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
Each of the following functional areas would typically be included within logistics:
customer service, order processing, transportation, warehousing, and storage
Many organizations are working more closely with
customers
If demand and lead time are constant, only___________ is necessary.
cycle stock
Which of these is NOT a production method?
delated differentiation
Batching economies or cycle stocks usually arise from three sources. Which of these is NOT a source?
demand
Dependent demand relates to
demand for another inventory item or product
What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service?
desirable capabilites
The Supply Chain Concept
developed from the previous Physical Distribution concept.
Maquiladoras exist because:
differences in Mexican and US wages and pollution controls
Inventory and the GDP grew by ______ amounts between 1994 and 2010.
different
Which of the following is the "marketing mix"?
distribution, price, product, promotion
Corporate leaders
do not clearly understand the importance of supply chain excellence
Ordering cost refers to the expense of placing an order and
does not include the cost of the product.
Processes that can produce a range of products are said to have
economies of scope
Air carriers were historically looked upon as
emergency only carriers.
Customs regulations raise revenue through the collection of import duties. Which is NOT a means of determining the duty owed?
exchange rates
The drawback of centralized inventory is:
extends lead times and results in higher transportation costs
In the event of a "stockout" at your location, one of the things that could happen is
extra shipping cost may be incurred
Which of the following would be considered a nontraditional service being offered by carriers?
facility location analysis
In the short run, the firm's network is _________ while in the long run it is ________.
fixed, variable
Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtracts the cost of goods sold.
gross sales
Security legislation
has caused expense issues for carriers
ERP systems
have information elements needed by SCIS applications.
Each of the following functional areas would typically be included within logistics EXCEPT
human resources/personnel management
INCREASING the number of warehouses will __________ the warehousing and inventory costs, but may __________ transportation costs
increase, decrease
Methods of decreasing inventory related costs include all of the following measures EXCEPT:
increasing the number of expedited orders
Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure.
information systems
Capital cost focuses on the cost of capital tied up in ________and the resulting lost opportunity from investing that capital elsewhere.
inventory
The internal balancing method deals with
inventory and production flexibility
For most firms, the MOST important measure of customer service is:
inventory availability within a specified order cycle time
Exponential smoothing
is one of the most commonly used techniques
The term functional silos refers to:
lack of coordination between departments
ALL of the following represent savings associated with volume buying EXCEPT
lower capital costs associated with the inventory investment
Performance measurement is important because
lower-level metrics in an organization must connect directly to the high-level performance to achieve goals
The Supply Chain should
manage materials/products, information, financials, and demand.
Quick response (QR) systems are usually implemented between __________ and __________ in a typical channel of distribution.
manufacturer; retailer
Which of these does NOT belong in the recommendations of the Reverse Logistics Educational Council?
manufacturing
Scorecard and key performance indicators (KPIs) refer to
metrics to manage logistics operations
Which of these is NOT a Distribution support function?
movement and storage
The logistics/supply chain network transformation team
must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates
Outsourcing involves
obtaining materials, parts, and products from other companies
The primary facility operations focus is
on the movement and storage of product.
In selecting a transport mode or carrier, the most important factor for most shippers would be:
on-time pickups and deliveries
The most compelling financial strategy is
operational efficiency
Which of the following is NOT an element of Order Management?
optimizing mode mix
Oversupply is created by:
phantom demand
An outbound-to-customer logistics system is also referred to as
physical distribution
An inbound-to-operations logistics system is also referred to as
physical supply
The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix
place
The utility that is created by moving goods from production points to market points where demand exists is referred to as
place
Asset utilization is a very important aspect of
private distribution facilities.
The main strategy behind routing guides is to
promoting supply chain excellence
Lean production relies on
pull-based systems
What is the effect of tapering rates on facility location?
pulls the location toward the source or the market
Which of these is NOT a freight document?
routing guide
Globalization was initially driven by countries
seeking materials and goods not available in their own land.
What are the steps in the CRM process?
segment customer base, identify service/package, then measure service and improve
Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a
steering committee
A warehouseperson may offer REDUCED rates to the user of a public warehouse if the user:
stores goods regularly
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
supply chain software suites that combine planning, execution, event management,and related capabilities
From a business and supply chain perspective, ______________ are usually based upon a recognition that industrial systems need to be in harmony with nature by not depleting resources beyond their replacement or regeneration rate.
sustainability practices
Approximately two-thirds of 3PL customers think their providers supply
tactical or operational services.
When a firm "customizes" their supply chain, it is
tailoring the chain to be responsive to the needs of individual customer segments
A critical ingredient for the Third Era of globalization is:
technological advances, especially in information technology and communications
The term replenishment cycle refers to
the acquisition of addition inventory
The order cycle time is the time that elapses between:
the customer's order placement and the time the customer receives the product
A major challenge is ___________ of total cost of the return flow processes
the estimation
Assemble-to-order production
the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer.
Capacity is
the maximum amount of work that an organization is capable of completing in a given period of time
All of the following are criteria for an expert system EXCEPT:
there is no variability in people's ability to perform the task
Most retailers are essentially supply chain companies since
they buy products produced by others
The transportation activity adds _______ utility to products.
time and place
Data synchronization focuses
timely and accurate updates
The classic objective of a network design model has been
to establish the number, location, and size of finished goods distribution centersand associated product flow
Companies with 10,000 purchase transactions or more per year should consider
transactional procurement solutions
By using the latest information technology it is possible to substitute information for inventory and other logistics expenses.
true
Some individuals describe the current consumer as the "click here" generation because
we no longer wait for information to be "pushed out" to us.
Transportation terms of sale establish
when ownership and title of the goods passes from seller to buyer
Questions regarding financial vs. non-financial benefits of collaboration include
whether collaboration pays for itself