MGMT 4400 ONLINE - TEST 3

When does public warehousing makes more sense than private warehousing? -Volume is high and very predictable with little variation in demand -Volume is low with high variability in demand and significant seasonality -Customers are close to your facility and products are not seasonal -Customer service requirements are low and market density is high -Products are valuable and require high level of security

-Volume is low with high variability in demand and significant seasonality

What does the Lean principle of 5S dictate? A safe and orderly work environment is also an efficient work environment Statistics drive improvement in warehouse operations Five phases of order fulfillment operations is most efficient Japanese ways of doing business are always more efficient than American methods Warehouses must have five degrees of redundancy in operations given uncertainty in satisfying customers

A safe and orderly work environment is also an efficient work environment

If you add a new distribution point, what other activities/costs will be affected? Transportation Inventory Warehousing Order process Customer service All of the above

All of the above

Which initiative is likely to help in attracting and retaining drivers at a trucking company? Paying a higher wage Getting the driver home each day Hiring employees to load and unload trailers Equipping the trucks with the latest technologies All of the above

All of the above

Which of the following factors should be considered when choosing the mode, class, and carrier for a shipment? Service requirements of the customer The cost of the transportation service The characteristics of the product The transit time offered by the carrier All of the above

All of the above

Which of the following was a result from the partnership between Pearl Jam and UPS in developing a more environmentally friendly way to move the band's equipment? Less pollution More efficient Switched from truck to rail All of the above None of the above; that is, Pearl Jam partnered with Fed Ex

All of the above

What do we call a warehouse that uses automated forklifts that move up and down each aisle putting pallets in assigned racks? A cross dock A customs warehouse An automated warehouse A warehouse management system A flexible warehouse

An automated warehouse

What is the material handling technology that is computer controlled and often used in the reserve area of a case-pick operation? Forklift truck Palletizer Automated storage and retrieval system Electronic data interchange Warehouse management system

Automated storage and retrieval system

Which transportation document serves as a receipt for a shipment? Proof of purchase Bill of Lading Customs declaration Shipping manifest Letter of credit

Bill of Lading

What type of warehouse serves as a regional distribution point, where truckloads ship freight inbound with the local deliveries via less-than-truckload transportation? Liquidation warehouse Distribution center Customs warehouse Raw materials warehouse Breakbulk warehouse

Breakbulk warehouse

What is the tool called that is used to help identify the optimal location for a DC based on the locations and sales volumes of customers? Mix-and-match model Supply chain map Center-of-gravity model Diffusion model Centrifuge model

Center-of-gravity model

For a consumer goods company seeking to reduce the distance to U.S. population from a single location using a center-of-gravity approach, which city would offer the best choice for this facility? Cincinnati, Ohio Topeka, Kansas Dallas, Texas Buffalo, New York Denver, Colorado

Cincinnati, Ohio

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? Holistic transportation management Collaborative transportation management (CTM) Inter-load Share the ship Transportation exchange

Collaborative transportation management (CTM)

Which alternative provides value-added warehousing and logistics services by a comprehensive third-party logistics (3PL) firm? New millennium warehousing Common warehousing Private warehousing Contract warehousing Substantiated warehousing

Contract warehousing

Chapter 7 introduces several costs that influence the determination of the proper number of distribution locations a firm needs to serve its customer base. Which one of the following is an opportunity cost associated with that decision? Warehouse costs Inventory costs Transportation costs Cost of poor service Workers' compensation costs

Cost of poor service

Several costs factor into determining how many warehouses a firm needs to serve its customers. Which of the following is an opportunity cost associated with that decision? Warehouse costs Inventory costs Transportation costs Cost of poor service Workers' compensation costs

Cost of poor service

What kind of warehouse facility performs very differently from a conventional warehouse by receiving inventory and shipping it out in the same day? Mix-and-match warehouse Cross-dock High-rise warehouse Product mixing facility Rapid-flow warehouse

Cross-dock

Which kind of warehouse allows a company to keep imported merchandise for a certain period of time without paying duties or tariffs? Distribution center Duty-free shop Customs warehouse Raw materials warehouse Consolidation warehouse

Customs warehouse

Six sigma relies on what methodology to structure the problem solving in tge attempt to improve work processes? Root-cause methodology Lean methodology On-the-spot problem-solving Define-Measure-Analyze-Improve-Control (DMAIC) Lineside problem-solving

Define-Measure-Analyze-Improve-Control (DMAIC)

Which Incoterm places the most responsibility and liability for transportation with the seller? Ex works Free alongside ship Free on board Cost and freight Delivery duty paid

Delivery duty paid

Which decision supported by the TMS processes orders and manages exception alerts? Total network and lane design Mode and carrier selection Service negotiations Service evaluations Dock and mobile decisions

Dock and mobile decisions

Which Incoterm places the most responsibility and liability for transportation with the buyer? Ex works Free alongside ship Free on board Cost and freight Delivery duty paid

Ex works

(T/F) A company like De Beers would be likely to outsource its warehousing of the company's precious jewels in order to shift the liability of loss or damage to a third-party logistics company.

FALSE

(T/F) A complete FMEA usually does not include recommended actions to ensure that failure modes do not manifest themselves.

FALSE

(T/F) Economic globalization and technology diffusion has led to the homogenization of warehousing practices in countries like Argentina, India, and the U.S.

FALSE

(T/F) Line fill rate and item fill rate will always generate the same estimates of order accuracy.

FALSE

(T/F) The item fill rate for an item that is shipped complete 6 times out of 10 orders, and ships 55 units out of the 100 requested in the 10 orders, is 60 percent.

FALSE

T/F: Innovations in transportation have dramatically lowered the amount of road congestion in recent years.

FALSE

Which shipping term applies to an arrangement where a seller arranges for transportation to a buyer and pays the carrier, but then invoices the buyer for the transportation fees? FOB-origin/prepaid FOB-destination/prepaid and allowed FOB-origin/collect FOB-destination/prepaid and charged back FOB-origin/allowed

FOB-destination/prepaid and charged back

A company that chooses to arrange for the transportation of products it buys from a supplier—and to pay for these services—would elect for which shipping terms? FOB-origin/prepaid FOB-destination FOB-origin/collect FOB-destination/collect FOB-origin/allowed

FOB-origin/collect

(T/F) Cost is the only significant consideration that a company must factor into its decision to own and operate a warehouse, as opposed to hiring an outside firm.

False

Which factor below would suggest the construction of a smaller (rather than larger) warehouse? Many markets served Fewer stockkeeping units (SKUs) carried The need for economies-of-scale in warehousing and materials handling Long production lead times Higher levels of customer service expected

Fewer stockkeeping units (SKUs) carried

What inventory method rotates inventory in order to minimize your risk of owning out-of-fashion merchandise. First-in first-out (FIFO) Last-in first out (LIFO) Reverse-logistics Inside-out inventory Reverse-to-active (RTA) storage

First-in first-out (FIFO)

The concept of relay networks in trucking is meant to do which of the following? Move freight faster Make truck-driving jobs more attractive Trick regulators All of the above None of the above

Make truck-driving jobs more attractive

Which decision supported by the TMS automates carrier selections? Total network and lane design Mode and carrier selection Service negotiations Service evaluation Dock and mobile decisions

Mode and carrier selection

Which of the following companies launched Six Sigma? Motorola Panasonic Toyota Hewlett Packard Walmart

Motorola

Of all of the transport-related infrastructure in the US, which of the following is in good condition? Roads Bridges Dams None are in very good condition All are in very good condition

None are in very good condition

How good is a multi-criteria analysis? It is an average carrier selection tool It is a fool-proof analysis Only as good as the information you put in It actually is not a very good tool to use for carrier selection

Only as good as the information you put in

Which order fulfillment performance metric examines the orders picked, packed, and shipped perfectly? On-time delivery Order accuracy Order cycle time Perfect order completion Order fill rate

Order accuracy

Which order fulfillment performance metric measures the time from order placement to customer receipt of delivery? On-time delivery Order accuracy Order cycle time Perfect order completion Order fill rate

Order cycle time

Which order fulfillment performance metric measures the percentage of orders delivered without changes, damage, or invoice errors? On-time delivery Order accuracy Order cycle time Perfect order completion Customer satisfaction

Perfect order completion

Which mode of transportation is limited in the types of cargo it can carry and possesses very low door-to-door access from origin to destination, but still moves a significant share of ton-miles in the United States? Truck Pipeline Water Air Rail

Pipeline

Which mode of transportation is the slowest, most difficult to access, and limited in terms of products it can carry, though it offers the most reliable service? Truck Pipeline Water Air Rail

Pipeline

Which of the following is a principle of efficient product placement in the warehouse? Products that are common to many orders should not be placed near one another Fast moving products should be placed in remote storage areas You should use zig-zag routing for order retrieval Be sure to stack high-value, fragile products Place fast-moving items in dedicated slots

Place fast-moving items in dedicated slots

A visual signal that indicates an incorrect quantity of parts is about to be shipped to customers, allowing the operator to correct the problem before it is detected by a customer is an example of what? Kaizen Poka yoke Value stream remedy Heijunka Muda

Poka yoke

What form of warehousing is owned by the firm? Public Private Contract Multi-client Third-party

Private

Which of the following is a relatively new function performed in many warehouses? Receipt of goods Product processing for final assembly Transferring products to storage Order picking Order staging for shipment

Product processing for final assembly

Which of the following is a primary role of a breakbulk warehouse? Perform value-added services like labeling and final assembly. Help companies avoid paying customs duties on imported products. Create easy flow through of inventory through the warehouse. Receive large-volume truckload (TL) shipments and break them down for shipping to different customers.

Receive large-volume truckload (TL) shipments and break them down for shipping to different customers.

Which of the following is the least productive use of warehouses? Supply mixing Product mixing Outbound consolidation Reduce investment in labor and equipment Inbound consolidation

Reduce investment in labor and equipment

What does the Square Root of N Rule show? 80% of sales comes from 20% of customers Safety stock rises as the number of stocking locations goes up Transportation costs increase when logistics is outsourced Customer loyalty increases with additional warehouse locations Customer service levels increase with more inventory

Safety stock rises as the number of stocking locations goes up

Which decision supported by the TMS creates carrier compliance reports? Total network and lane design Mode and carrier selection Service negotiations Service evaluation Dock and mobile decisions

Service evaluation

(T/F) A "smart" WMS won't let the picker move to the next item until picking mistakes have been corrected.

TRUE

(T/F) Amazon is an example of a company that has attempted to reduce order lead time for customers by adding warehouses to the distribution network to reduce the distance between its facilities and customers.

TRUE

(T/F) FMEA allows us to brainstorm about what can go wrong and think about possible ways to prevent a failure from happening.

TRUE

(T/F) FMEA usually starts by identifying the function or process that can experience a defect.

TRUE

(T/F) For continuity planning to be effective, you have to update your mitigation/recovery plans based on what happened during and after each disruption event.

TRUE

(T/F) The goal of continuity planning is to prepare for a disruption before it strikes so that you can resume normal operation as quickly as possible.

TRUE

(T/F) The rise in online retailing is creating greater demand for warehousing.

TRUE

T/F: Transportation costs are unique because they are u-shaped.

TRUE

What must you keep in mind when determining the optimal logistics network design? That the logistics network integrates inbound and outbound shipments to achieve the lowest transportation cost That information sharing can lead to a significant reduction in order errors That outbound transportation costs exceed inbound costs as the number of warehouse facilities increase That the logistics network demonstrating the least total cost is the one that considers the tradeoffs among warehousing, inventory, and transportation costs as well as the cost of poor service That all geographic areas served by a firm should report to a single executive officer

That the logistics network demonstrating the least total cost is the one that considers the tradeoffs among warehousing, inventory, and transportation costs as well as the cost of poor service

Which scenario below would suggest building your own private warehouse as opposed to using public warehouse space in a particular location? -Space is required for product storage only and there are low customer service requirements -There are low throughput volumes and low market density -There are high customer service requirements and a need for a regional sales headquarters -There is fluctuating demand and low market density -Your products require no special materials handling and have low security needs

There are high customer service requirements and a need for a regional sales headquarters

Which term refers to the volume of material or product that moves through a warehouse facility over a given time? Supply chain quantities Throughput Transit inventory Work-in-process Finished goods

Throughput

Which of the following is not a good reason for warehousing? Allows economies-of-scale in transportation and production Enables smoother coordination of supply and demand Supports customer service requirements Allows firm to take advantage of quantity purchase discounts To keep inventories for the sake of obsolescence

To keep inventories for the sake of obsolescence

Which intermodal option combines truck and rail transportation with conventional road trailers carried atop rail flatcars for the long (line-haul) segment of the transit? Trailer Park Birdyback Container on Flatcar Trailer on Flatcar Container Shipping

Trailer on Flatcar

Which kind of transportation service provider provides convenient door-to-door service between two locations and is capable of carrying most any form of freight? Air carrier Pipeline carrier Truckload carrier Railroad carrier Less-than-truckload carrier

Truckload carrier

What is the name given to information applications that coordinate the activity within a warehouse facility? Online merchandising network Warehouse management system Ship-and-save system Quick response mechanism Enterprise resource plan

Warehouse management system

All of the following are good examples of visual managment except what? Watching customers complain about poor service Delineating where items should reside in the work environment when they are not in use Using kanban systems to signal inventory replenishment Presenting work steps through pictures Illustrating normal and abnormal outcomes to a work step

Watching customers complain about poor service

Which transportation mode typically carries bulk food, mining, and chemicals? This mode also rates highest in the capacity/capability category with its ability to carry the largest variety of goods and materials in massive quantities. Truck Pipeline Water Air Rail

Water

Which material is most common for shipping platforms called "pallets?" Wood Steel Alloys Plastic Corrugated paper

Wood

What is the most common platform used in the shipping and handling of bundled products in a supply chain? Plastic pallets Plastic totes Metal racks Wooden pallets Steel bins

Wooden pallets

What do you do after calculating results from your Multi-criteria analysis by multiplying the score for each criterion by the associated weight and adding up the results for all the criteria? You then have to subtract each of the modes together You can then begin to make decisions about which transportation carrier to use. You then need to identify the most critical criteria None of the above

You can then begin to make decisions about which transportation carrier to use.

Which of the following definitions applies to the concept of "weighing out?" You reach the maximum weight of a shipment before you fill the transportation vehicle You run out of pallets before the full order is staged for loading The transportation vehicle is too heavy for the tractor to pull it You run out of space in a transportation vehicle before you reach the weight limit The transportation vehicle cannot access the loading dock due to the obstruction of other vehicles in the dock area None of the above

You reach the maximum weight of a shipment before you fill the transportation vehicle

Which of the following definitions applies to the concept of "cubing out?" You reach the maximum weight of a shipment before completing an order You run out of pallets before the full order is staged for loading The transportation vehicle is too high to load without proper equipment You run out of space in a transportation vehicle before you reach the weight limit There is not enough space at the warehouse facility for a transportation vehicle None of the above

You run out of space in a transportation vehicle before you reach the weight limit

Just-in-time is related to which other principle? a. Lean production b. Outsourcing c. Globalization d. Greater competition e. More complex supply chains

a. Lean production

To compute the risk exposure value, you need which two indices? a. Risk consequence index and risk probability index b. Risk probability index and risk likelihood index c. Risk consequence index and risk severity index d. Risk severity index and risk likelihood index e. Risk magnitude index and risk scale index

a. Risk consequence index and risk probability index

Dividing suppliers into different groups based on the risk they pose to a company is referred to as what? a. Supplier segmentation b. Supplier selection c. Supplier monitoring d. Supplier auditing e. Supplier site visits f. Both A and D

a. Supplier segmentation

What is the primary outcome of disruption assessment? a. A clear understanding of all of the risks that might affect your operations b. A set of priorities to help you effectively use resources to mitigate risks c. A pretty heat map d. All of the above e. Only A & C

b. A set of priorities to help you effectively use resources to mitigate risks

Thomas Friedman's best-selling book The World is Flat was primarily concerned with what? a. Sustainability b. Globalization c. Innovation d. Global warming e. International conflict

b. Globalization

Risk probability addresses which of the following questions? a. How are we doing? b. How likely is the risk? c. How severe is the impact? d. What can go wrong? e. How acceptable is the risk?

b. How likely is the risk?

External spend, as a fraction of total cost, has increased for most companies. Which risk does this impact the most? a. Inventory risk b. Quality risk c. Transit loss risk d. Risk of natural disasters e. Economics risks

b. Quality risk

Which is usually the first step in a risk management process? a. Risk measurement b. Risk identification c. Risk mitigation d. Risk evaluation e. Risk assessment

b. Risk identification

Why is part standardization able to reduce risk? a. You are able to monitor quality much better b. You increase the supply options you can turn to when a disruption occurs c. Standardized parts are easier describe in an RFP/RFQ d. Standardized parts are likely much preferred by your customers e. Standardized parts can be purchased in bulk

b. You increase the supply options you can turn to when a disruption occurs

If you move a shipment from point A to point B, the subsequent movement from point B back to point A is most commonly referred to as the ____________? linehaul movement reciprocal movement flipside movement backhaul movement comeback movement

backhaul movement

When setting up a Multi-criteria analysis, why would you use the scale from 1-100 to define your scoring system? a. It gives more granularity and variability in the overall scores b. You would be able to give points without skewing results c. Both a and b d. You wouldn't—it is always better to score from 1 - 10

c. Both a and b

Which of the following statements is false? a. There is a high level of apathy toward supply risk management b. Most companies do not quantify risks when outsourcing production c. Companies are well versed in supply chain risk management d. Risk management is a challenging domain in need of more attention e. Many companies do not have a risk management plan in place

c. Companies are well versed in supply chain risk management

The risk priority number is the product of which of the following? a. Severity and likelihood of occurrence b. Detectability and likelihood of occurrence c. Likelihood of occurrence, severity, and detectability d. Likelihood of occurrence, detectability, probability of occurrence e. Risk magnitude, risk severity and detectability

c. Likelihood of occurrence, severity, and detectability

You can acquire services from Dun & Bradstreet to help do a better job with which of the following? a. Hedging b. Near-sourcing c. Supplier monitoring d. Postponement e. Contract language f. All of the above

c. Supplier monitoring

As you implement continuity planning, what questions should you ask? a. How likely is each disruption? b. What are each disruption's potential impacts? c. How prepared are you to respond to each disruption? d. All of the above e. Only A & B

d. All of the above

One strategy to reduce risks is to have a backup supplier in case your incumbent is not able to deliver. What is this strategy called? a. Inventory pooling b. Hedging c. Postponement d. Dual- or multi-sourcing e. Single-sourcing

d. Dual- or multi-sourcing

Which of the following is not true of a risk management process? a. It provides a structured approach to think about risks b. It can help us to identify risk mitigation strategies c. It offers a way to quantify risks d. It can help us eradicate all risks e. It helps us in controlling risks

d. It can help us eradicate all risks

A transportation management system (TMS) can facilitate which of the following activities? a. Network analysis decisions b. Carrier performance evaluation c. Mode and carrier selection decisions d. Load planning and dock scheduling e. All of the above f. Only a and b

e. All of the above

Which of the following is contributing to an increased emphasis on risk management? a. Globalization b. Outsourcing c. Faster clockspeeds d. Increasing customer demands e. All of the above

e. All of the above

Which of the following is true of disruption scanning? a. Proactive scanning is part science; that is, it is data driven b. Proactive scanning is part art, requiring that you ask "What if . . .?" c. Almost all disruptions are completely unforeseeable—that's why you do continuity planning d. All of the above e. Only A & B

e. Only A & B

Moving more freight from trucks to rails will provide which of the following benefits? a. Faster delivery b. Reduced road congestion c. More environmentally sustainable transportation d. All of the above e. Only b and c

e. Only b and c

Reasons for using a multi-criteria analysis for selecting a carrier include: a. It is very quick and easy b. It is quantifiable c. It provides a disciplined approach d. All of the above e. Only b and c

e. Only b and c

A risk heat map usually has the following two axes? a. Risk severity and risk magnitude b. Risk rank and risk exposure c. Risk probability and risk likelihood d. Risk impact and risk exposure e. Risk likelihood and risk impact

e. Risk likelihood and risk impact

Which of the following is not true of FMEA? a. FMEA stands for failure mode and effect analysis b. FMEA relies on a structured worksheet c. In FMEA, you think about possible defects and how you can mitigate or prevent them d. FMEA extends the risk management process by accounting for how well we are able to detect defects e. Since FMEA has been developed for detecting failures in process, it is difficult to apply in purchasing

e. Since FMEA has been developed for detecting failures in process, it is difficult to apply in purchasing

Which action is considered hedging? a. Segmenting suppliers based on risk b. Ensuring careful contract language c. It is comparable to near-sourcing d. Waiting to customize a product until the last minute e. The purchase of future contracts

e. The purchase of future contracts

If you move a shipment from point A to point B, that outbound movement is referred to as the __________? linehaul movement original movement flipside movement fronthaul movement outward movement

fronthaul movement

The lower per-mile costs enjoyed by transportation as a shipment covers greater distance is reflected in a concept referred to as the _____________? Pareto principle diminishing return concept Petrona principle tapering principle Veranzano principle

tapering principle