SC

What are major challenges faced by transportation managers in the current environment?

1) Capacity constraints. 2) Globalization = complexity/cost. 3) Rising rates. 4) Impacted by gov. requirements that affect cost and service capabilities. 5) Regulation is growing where potential to impact quality of life, safety of citizens, and growth of commerce.

Dimensions of a Project

1) Defined scope: project overview, start/end points, agreed-upon tasks, responsibilities, deliverables, and costs. 2) Defined success: attainment of objectives, minimal modifications/distruptions, and stakeholder satisfaction

What is the role of transportation in the supply chain?

1) Links geographically separated partners and facilities. 2) Creates time and place utility. 3) Involves physical movement of goods. 4) Major economic impact on financial performance. 5) plays a key role in SC: design, strategy development, and total cost management.

Examples of positive/negative impacts of transportation on supply chain.

1) if efficient the supply chain will be competitive. 2) must match transportation capacity to customer demand to avoid customer service failures. 3) can create SC flexibility.

Project

A project is a series of tasks with: -specific objectives, defined start and stop dates -limited resources, time, personnel, and budgets

Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition? A. accessibility B. pricing C. performance D. service

A. accessibility

In the Item Procurement Importance Matrix, what describes high risk, high value? a. Generics b. Commodities c. Criticals d. Distinctives

C

There are several classifications of purchased items. Which of the following is NOT one of those? a. commodity b. generics c. collaborative d. critical

C

Which is not a form of purchasing? a. purchasing b. procurement c. process improvement d. sourcing

C

Security legislation A. has not had much impact on transportation carriers. B. has caused some firms to stop offshore sourcing. C. has caused expense issues for carriers. D. has created unnecessary restrictions of legitimate trade.

C. has caused expense issues for carriers.

Which one is not one of the four requirements for cognitive systems?

Conducive

D

Corporate leaders a. already understand the importance of supply chain excellence. b. are seeking to reduce corporate assets which could have serious implications for supply chain managers. c. are managing on a quarterly results because of Wall Street expectations. d. do not clearly understand the importance of supply chain excellence.

The distances in today's global supply chains produce A. higher cost. B. longer transit times. C. more disruptions. D. all of these.

D. all of these.

Transportation efficiency promotes __________ in the supply chain. A. intermodal demand B. KPIs C. capacity D. competition

D. competition

With all of the new technology and game changing ideas, the future of omni-channel does not look like it will take off.

False

Inventory as an asset on the balance sheet and a __________ on the income statement.

Variable expense

The key financial consideration in choosing between private and 3PL distribution options is

Volume of product being moved.

The primary facility operations focus is:

on the movement and storage of product.

What are the drivers of sustainable practice in supply chains

optimization synchronization adaptability velocity profitability

In the context of supply chains, what is velocity

the speed of which end to end flow occur in the supply chain. It encompasses speed-to-market for new product introduction and execution when conditions are rapidly changing.

"Batching economies" and "cycle stocks" are the same. t/f

true

Phantom demand is created by over-ordering during peak demand t/f

true

The growth of outsourcing has created transportation challenges. t/f

true

outbound-to-customer logistics systems are also referred to as physical distribution. t/f

true

Quality Function Deployment (QFD)

Called the house of quality. Customers wants and desires are translated in product characteristics using the following steps: 1. What's needed - customer requirements 2. Why it matters - planning matrix 3. How accomplished - technical requirements 4. Where it affects -inter-relationships 5. Where it relates - roof 6. Importance - targets

External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand. t/f

false

Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized. t/f

false

For the best service, all products should be available at all levels regardless of cost. t/f

false

Forecasting has become extremely accurate, especially since the development of the S&OP process. t/f

false

Intermodal growth has been flat.t/f

false

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory. t/f

false

JIT was developed in the U.S. and copied by the Japanese. t/f

false

KPI is another term for a shipping document. t/f

false

MRPII will not allow an organization to integrate financial planning with operations and logistics. t/f

false

Most organizations employ all six definitions of customer service in their order management process.t/f

false

Purchase economies and transportation economies are not complementary. t/f

false

Setting safety stock levels for an organization is now a science. t/f

false

Storage space costs are not variable. t/f

false

Technology and data are already very well integrated into supply chain management.

false

The buyer and seller look at order time from the same perspective. t/f

false

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.

participants

___________ is/are a major barrier to the effective use of information technology.

people

what are the foundation elements in supply chain formation

people processess technology

Oversupply is created by

phantom demand

Customer service can be viewed in three different ways. Waht are there

philosophy performance measures activity

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 ABC analysis is based on Pareto's Law. t/f

true

Reverse flows in logistics have decreased

False

The first principle of supply chain management is to segment customers based on profit.

False

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

False

In the Item Procurement Importance Matrix, what item is described as low risk, low value? a. Generics b. Commodities c. Criticals d. Distinctives

A

The reorder point depends on the orders in-house at that time

False

D

Distribution facilities can provide numerous services, depending on the requirements of the supply chain. Which does not belong? a. assortment b. accumulation c. allocation d. activity

A

Economic deregulation sparked several things. Which one does not belong? a. safety issues b. pricing c. performance d. services

"It has been said that information is the lifeline of business, driving effective decisions and action. Quality of information is less and less important, given advances in technology."

False

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

False

Contract warehousing is different than 3PL warehousing.

False

Corporate executives are already well aware of the impact supply chain management can have on their businesses.

False

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

False

Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention.

False

IoT is unconnected technology with sensors, on/off switches, and internet linkages that allow supply chain managers to intelligently link people, processes, data and things.

False

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory.

False

MRP II will not allow an organization to integrate financial planning with operations and logistics.

False

Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations.

False

Purchase economies and transportation economies are not complementary.

False

C

Green laws have a. started reverse flows. b. only recently been enacted. c. had a major impact on firms. d. are still being evaluated.

A

In the short run, the firm's network is ____ while in the long run it is ____. a. fixed, variable b. adoptable, reversible c. variable, reversible d. reversible, fixed

Which one of the choices below is NOT one of the various stages and levels of sophistication and robustness that is associated with the supply chain analytics?

Indicative

C

Information and ____ are important dimensions in reverse logistics. a. loops b. flow c. financials d. direction

A

One important interaction that must be considered is the tradeoff between distribution and ____. a. transportation b. finance c. marketing d. services

D

The reverse direction of flow is seen as a a. cost center. b. cost center and a waste stream. c. necessary evil d. cost center, a waste stream, but a necessary evil.

B

Reverse flows have exited in a. manufacturing. b. transportation. c. outsourcing. d. sales strategies.

C

Security issues a. have not had much impact. b. caused some firms to stop off shore sourcing. c. caused expense issues for carriers. d. are not impacted by KPIs.

D

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

The distances in today's supply chains produce a. higher cost. b. longer transit times. c. more disruptions and higher costs. d. higher costs, longer transit times, and more disruptions.

D

The primary tradeoffs and relationships include the following a. Space vs. equipment b. Equipment vs. people c. People vs. space d. All of these answers

D

Transportation efficiency promotes ____ in the supply chain. a. competition b. KPIs c. capacity d. competition

A successful approach in overcoming organizational resistance is to effectuate collaboration in the supply chain.

True

All modes of transportation provide the same basic service.

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

Motor carrier cost is highly variable.

True

One of the primary tradeoffs at the facility level is space versus equipment

True

Railroads have accessibility limitations

True

Supply chain information technologies can provide timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers.

True

The ABC analysis is based on Pareto's Law.

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

The fourth principle of supply chain management is to differentiate products closer to the customer.

True

The seven principles of supply chain management have stood the test of time very well.

True

Transportation plays a key role in supply chain design, strategy development, and total cost management.

True

B

What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network? a. change in customer service requirements b. change in corporate ownership c. cost pressures and competitive capabilities d. shifting locations of customer and/or supply markets

B

When a firm "customizes" their supply chain, it is a. trying to improve asset utilization. b. tailoring the chain to be responsive to the needs of individual customer. c. responding to competitive situations. d. revising its supply chain in light of current economic conditions.

A

When a firm "sources strategically," it is a. working together with customers and suppliers in a creative, positive way. b. seeking least cost vendors. c. matching product and raw material flows to minimize transportation costs. d. reacting to current competitive situations.

C

Which is not true regarding logistics network design? a. the logistics network reengineering team is responsible for all elements of the logistics network design process. b. the logistics audit provides members of the reengineering team with a comprehensive perspective on the firm's logistics process. c. subsequent "what-if" types of analysis do not need to be conducted to test the sensitivity of recommended network designs d. the implementation plan serves as a useful road map for moving from the current logistics network to the desired one

Procuring inexpensive transportation is the major goal of supply chain managers. t/f

false

What are the requirements for an effective information flow in supply chain?

accessible relevant accurate timely transferable

ton-miles

an output measurement combining weight and distance, or tonage multiplied by miles transported. (Trucking dominates the US transportation market in terms of value of goods moved, followed by multimodal transportation)

CBP is now enforcing the "48 Hour Rule". t/f

false

Customer relationship management is a new concept only recently receiving attention. t/f

false

Given the availability of information, transportation buying has become comparatively easy. t/f

false

Inventory and the GDP grew at the same rate from 1994 through 2010. t/f

false

Inventory management is not as important as it once was due to other factors that have come into play. t/f

false

Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention. t/f

false

Materials management and physical supply are terms that cannot be used interchangeably. t/f

false

JIT is a _______ system.

pull

What is optimization and how does technology help in this context

the alignment of global supply chain resources - both tangible and intangible, down or outsources - to facilitate the success of supply chain members A variety of software is available to help maximize supply chain performance. Optimization tools analyze all possible options to find the best solution to a supply chain problem, such as finding the most cost-efficient delivery routes within a set of delivery requirement contraints

Project Management

the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.

What are typical supply management projects?

○ Developing new products within / across organizations . ○ Supplier development / improvement ○ New internal systems (e.g. information technology) ○ Developing sourcing / category strategy ○ Define requirements

Distributive Bargaining Approach

"Adversaries" divide fixed resources to maximize their share: - Competitive, zero-sum, win-lose - Focus is on the present, not the future - Critical opening offer, then counter-offers move toward a mid-point

Describe the types of pricing mechanisms in contracts

(buyer risk, BR low to high, Supplier risk SR, high to low) -firm fixed price (BR low, SR HIGH) -fixed price with escalation/de-escalation -fixed price with re-determination -fixed price with incentives (BR high, SR, low)

Bottleneck Spend Categories

*Characteristics* ○ Complex specifications requiring complex manufacturing/service ○ Few alternate sources of supply ○ Big impact on operations ○ New technology or unleaded processes *Strategy* ○ Ensure supply continuity (ensure supplier capacity) ○ Decrease uniqueness of suppliers (don't leave yourself exposed) ○ Manage supply

Critical Spend Categories (Strategic Supplier)

*Characteristics* ○ Critical to profitability and operations ○ Few qualified sources of supply ○ Large expenditures ○ Design and quality are critical ○ Complex and/or rigid specifications *Strategy* ○ Form partnership with suppliers (have engineers working at their facility, communication is high ○ Increase role of selected supplier

Leverage Spend Categories

*Characteristics* ○ High expenditures- high value, lots of $$$ ○ Large marketplace capacity with ample inventories ○ Many alternate products/services ○ Many qualified sources of supply ○ Market/price sensitive *Strategy* ○ Maximize commercial advantage (ex: quantity discounts) ○ Concentrate business ○ Maintain competition

Routine Spend Categories

*Characteristics* ○ Many alternative products and services ○ Many sources of supply ○ Low value, small individual transactions ○ Everyday use, unspecified items ○ Anyone could buy it *Strategy* ○ Simplify acquisition process ○ Increase role of systems ○ Reduce buying effort ○ Possibly do reverse auction

In-Sourcing Concerns and Strategies

*Concerns* - Realistic cost/benefit - Adequate knowledge & capabilities - Capacity & integration with existing processes - Reaction of current suppliers *Strategies* - Knowledge management - Business continuity management - Stakeholder management - Relationship management

Boilerplate elements (i.e. Expectations and Contingencies)

*Expectations* - Intellectual property, Assignment and contracting ? - Most favored customer, Statistics, - Confidentiality - Third-party rights, Free trade areas - Minority- or women-owned business enterprises - Governing law *Contingencies* - Key performance indicators and compensation - Force majeure, Technology improvements - Notices, Severability

SWOT Analysis

*Internal* Strengths: broad customer base, established range of products and distribution channels. Weaknesses: Low product innovation, traditional, unionized business processes, and low patent protection *External* Opportunities: emergences of other uses and markets for products and overseas markets, and high barriers to entry Threats: Emerging overseas suppliers, new product development costs are high, and environmental regulations.

PEST Analysis

*Political Trends* - Government programs (e.g. infrastructure) - Predict laws / enforcement in future *Economic Trends* - Stability of economic indicators (PPI, etc) - Currency or credit availability trends *Social Trends* - Changing norms and attitudes - Demographic trends (e.g. age, education) *Technological Trends:* - Upcoming research or patent changes. - Differing availability / access to technology

Spend Category

- A convenient grouping of like-spend items. - Commodities are categories with limited differentiation (ex: office supplies). - We categorize to structure, simplify, relate, and to understand entities, but also to improve control.

Program evaluation and review technique (PERT) definitions

- Early start (ES) - Earliest date task can begin - Early finish (EF) - Earliest date task can finish (ES + task time) - Late finish (LF) - Latest date task can finish without delaying entire project -Late start (LS) - Latest date a task can begin without delaying entire project (LF - task time)

Common Bargaining Tactics

- Extreme (high or low) opening offers - Claiming limited authority - Emotional outbursts - Offering few concessions - Resisting deadlines

Preliminary elements

- Introduction of the contracting parties - Definitions - Scope of agreement - Effective date and termination

In-sourcing considerations within a category strategy

- Is quality/innovation in the category becoming critical? - Are competitors struggling with failures for this strategy? - Are new processes being developed?

Cost Analysis

- Is the process of analyzing each individual cost elements and drivers (material, labor hours/rates, etc) that together add up to the final price. - Ideally identifies actual cost to produce an item so parties can determine a fair price and future cost reductions. - Looks at the unique and critical product quadrants - Cost is often higher, can be impacted.

Who are the stakeholders to a category strategy?

- Presence of a "burning platform" that has driven senior management's interest. Drivers might include: major problem, change, or opportunity. - The more important a the commodity, the more likely that cross-functional teams and user groups will be involved.

Market-Based Price Models

- Price-volume (quantity discounts) - Market-share - Market-skimming - Revenue pricing - Promotional pricing (printers/ink) - Competition pricing - Cash discount

Transaction elements

- Purchase orders, Supply and delivery - Specifications, quality, and health, safety, and environment - Payment, Liability, Warranties

Seller Pricing Strategies

- Seller price may be set at a level comparable to, or based on, the competition. - Pricing strategies are often based on other factors important to seller besides actual cost. - Two categories: market-driven models and cost-based models.

Problems with Outsourcing

- When the description of the service function is unclear - When the ability to measure performance is difficult - Predicting your needs over the lifespan of a contract is hard

What are the ways to summarize spend?

1) spend by category 2) supplier count by category 3) spend per supplier by commodity 4) percentage of total spend by category

Air Carries (advantages vs. disadvantages)

1) used to ship small quantities of high-value, low-weight semi-finished and finished goods. 2)time sensitive, superior protection 3) cost issues, competition, security challenges

The first facility consideration is to determine the size of each operation within the network

True

____ exist for basic raw materials such as grain, oil, and sugar. a. price lists b. commodity markets c. negotiations d. price quotes

B

What does a purchase contract do and why is it important?

-Establishes the terms and conditions by which the parties agree to conduct business. -Defines the type of relationship -Provides a way for the parties to obtain mutual benefits -Represents the legal understanding of the parties

The fourth principle of supply chain management is to differentiate products closer to the customer.

True

Contingency Elements

-Initial Price - Set at a level that will be beneficial for the buyer yet motivate the seller to perform. -Price-Adjustment Mechanisms - Select appropriate index to gauge price adjustments. -Supplier Performance Improvements - Can be an incentive for suppliers to improve over time. But must be a benefit (shared savings) -Evergreen, Penalty, and Escape Clauses - These elements in contracts can ensure longevity as well as termination when desired.

Transportation Metrics

1. claim-free delivery is a primary freight protection KPI. 2. freight bill accuracy KPI. 3. on-time delivery KPIs. 4. delivery consistency metrics compare average origin-destination transit time of shipments. 6. Equipment utilization KPI

Work Breakdown Structure (WBS)

-Is the summation of activities and resources required. - Broken down into tasks, subtasks, responsibilities, precedents, and costs. -Like a BOM

Common Negotiation Tactics

-Low Ball -Honesty -High Ball -Silence -Price increase -Best and Final Offer

What are some cost analysis techniques ?

-TCO Model -Break Even Analysis - Reverse Price Analysis - 3 Cost Based Pricing Models: -Rate Of Return Pricing Model -Margin Pricing Model -Cost Markup Pricing Model

How would a transportation manager monitor the quality of service provided by the carriers used?

1. maintain in-transit visibility to provide location and status of shipments, monitor product flowing across the supply chain

Bill of Lading

1. originates the shipment 2. provides all the information the carrier needs 3. stipulates the contract terms, including carrier's liability for loss and damage  4. acts as a receipt for the goods the shipper tenders to the carrier 5. shows certificate of title to the goods

What are the methods of settling contract disputes?

1) legal action 2) Arbitration 3) Mediation 4) Minitrial 5) Dispute Prevention 6) Rent-a-Judge

What are the 3 primary ways rail loads can moved?

1) manifest trains: mixture of equipment and freight for multiple customers. 2) unit trains: move an entire block of railcars carrying a single commodity from the origin to a single destination. 3) intermodal trains: focus on the long distance or line haul movement of intermodal containers.

The growth of outsourcing has created transportation challenges.

True

Demand Analysis

-understand supply requirements -analyze volume trends -assess future capabilities of category supply base

Common negotiating tactics

-use category strategy (objectives) -consider other's strategy -understand contracting -practice

What are the benefits with long-term contracts?

1) Assurance 2) Access to cost information 3) Volume Leverage 4) Better information 5) Access to supplier technology

Step 5: Supplier Relationship Management (category strategy development)

1) Assure "purchasing efficacy" - ability to achieve goals. Including continuous monitoring of : the strategy, the supplier, and the supplier's performance on key goals and objectives 2) Supplier scorecard should be used quarterly and results should be reviewed with the supplier.

Integrative strategy development (Evolution of corporate strategy to category strategy)

1) Corporate strategy defines corporate objectives, which evolve from mission statement. 2) The strategies are crafted based on stakeholder engagement: direct input from both business unit executives and corporate supply management executives during the development of corporate strategy, . As wells as, market factors.

Water Carries (advantages vs. disadvantages)

1) move large quantities cost effectively, can handle a wide variety of goods 2) capacity shortages, environmental concerns, security

Railroads (advantages vs. disadvantages)

1) perceptions of being slow, inflexible, and inconsistent. 2) primarily used for the long-distance movement of low-value raw materials and manufactured products. 3) can move liquid, gas, slurry or solid, hazardous, or harmless. 4) future capacity concerns, no changes to track infrastructure.

Process Map of Supplier Development

1) Identify critical commodities for development. 2) Identify critical suppliers for development. 3) Form cross-functional development team 4) Meet with supplier's top management team 5) Identify opportunities and probability for improvement. 6) Define key metrics and cost-sharing mechanisms 7) Reach agreement on key projects and joint resource requirements. 8) Monitor status of projects and modify strategies as appropriate.

Rules for Constructing a CPM Network

1) Identify each unique activity. 2) "Arc" is relationship, "node" is an activity. 3) Connect arcs and nodes by precedence. 4) Arcs show progression. 5) Networks generally start and stop at single node.

What actions are typically taken after spends analysis?

1) Identify high spend categories for more savings opportunity/ROI, ensure you're receiving specified quality. 2) Rationalize supply base based on number of suppliers and supplier spend, look for opportunities to increase or decrease. 3) Acknowledge any variance from expectations: contracted price vs. PO/procure-to-pay and contract enforceability. 4) Inform how to change category supply elements.

Step 1: Build the Team and Project the Charter (category strategy development)

1) Identify key cross-functional team members. 2) Define the scope of the category strategy. 3) Publish a team charter. 4) Develop and communicate the plan.

Map of stakeholder interests and involvement to meet their needs:

1) Identify success criteria for each stakeholder. 2) Understand perceptions of each stakeholder. 3) Ensure criteria are well-defined and feasible. 4) Reconcile gaps and differences. 5) Continue to monitor/amend criteria.

Using the PPI

1) Identify the suppliers standard industrial code (SIC) 2) Look at the price index for the SIC and product that you are interest in 3) Convert suppliers price increases paid from quarter to quarter into percentage increases and compare changes to the PPI

What are the sources of power?

1) Informational: Facts and data (ex:) 2) Reward: Something of perceived value 3) Coercive: Punishment 4) Legitimate: Position, approval authority 5) Expert: Specialized knowledge 6) Referent: Charisma, charm

Give the basic elements of category demand

1) Needs for category strategy: prime motivation for strategy and people who will be impacted by decision. 2) Neeeds for category organization: scope of use, various uses, and how category meets needs.

What are the 4 basic elements (and sub-elements) of a contract?

1) Preliminaries 2) Transaction 3) Boilerplate 4) Signatures and Appendices (schedules)

What are the risks with long-term contracts?

1) Selecting Wrong Supplier 2) Buyer/supplier is unreasonable 3) Supplier Opportunism 4) Supplier volume uncertainty 5) Supplier forgoes other business

What are some concerns for supply-base performance?

1) Supplier performance is critical to the category management 2) Suppliers naturally improve, but the learning rate can be influenced 3) Measurement systems like "report cards" to monitor progress & collaborate 4) Goal is to continually "optimize" a category's supply base

Porter's 5 Forces Analysis

1) Supply Market Internal Competition: speed of industry growth, capacity utilization, exit barriers, diversity of suppliers 2) Threat of New Entrants: Access to capital markets, skilled workers, critical technologies, inputs, or distribution, product life cycles, brand/customer loyalty, gov. deregulation. 3) Pressure from Substitutes: relative price , switching costs, buyer propensity to switch 4) Bargaining Power of Buyers: buyer: concentration, volume, switching costs, price sensitivity, brand identity, profits, availability of substitutes 5) Supplier Bargaining Power: price of major inputs, ability to pass on price increases, Availability of key technologies or other resources, Threat of forward/backward integration, Industry capacity utilization, concentration, importance of volume

Step 2: Conduct Market Research (category strategy development)

1) Understand Focus: purchase requirements relative to BU objectives and identify internal users/current suppliers. 2) Collect Data: supply marketplace, external market, total annual purchases, and interviews with stakeholders. 3) Interpret: SWOT, Porter's 5 forces, PEST, and establish benchmarks through industry data, where practical.

What are the two dimensions of a portfolio analysis/matrix?

1) Value Potential (VP) - The category's impact on profits now and in the future - High volume & percent of total spend, means large effect on quality & business growth 2) Risk/Complexity (RC) - The difficulty in creating and maintaining appropriate category supply - High RC means low availability & number of suppliers --> high demand competition & technical dynamics, leaves few substitutions & "make"opportunities

Pipelines (advantages vs. disadvantages)

1) equipment is fixed in place and product moves through in high volumes. Provide the most economical form of transport with the lowest cost per ton of any mode. 2) issues with safety, environmental and security.

Modal Selection Factors Supply Side

1. Accessibility 2. Transit Time 3. Reliability 4. Product Safety 5. Cost

Power of influence

1. Reciprocation 2. Scarcity 3. Authority 4. Consistency 5. Liking 6. Consensus (social proof)

Transportation Management Systems (TMS) Critical applications include the following:

1. Routing and scheduling: proper planning of delivery routes has a major impact on customer satisfaction, supply chain performance, and organizational success 2. Load planning: effective preparation of safe, efficient deliveries 3. Load tendering 4. Status tracking 5. Event management 6. Appointment scheduling

Modal Selection Factors Demand Side

1. The nature of a product—size, durability, and value 3. Durability 4. Product value 5. Shipment characteristics—size, route, and required speed 6. corporate transportation routing guide 7. last minute ??, cost saving decisions

Freight Bill

1. carrier's invoice for carrier charges 2 lists: shipment, origin and destination consignee, items, total weight, total charges

Motor Carries (advantages vs. disadvantages)

1. choice for high value, time sensitive goods. 2.accessibility to virtually all freight shipping/receiving locations. 3. rising costs, labor issues, and competition are disadvantages that are growing.

The order cycle for a product has an average of 10 days and range 5 to 15 days. A company uses 100 units daily. How much stock should it have on hand.

100 x 15 = 1500

What vendor selection criteria is described by production capability, labor relations, and operating controls? a. capability b. quality c. reliability d. financial

A

Which is not a mode of transportation?

3PL

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a a. committee. b. a list of vendors. c. a decision as whether to make or buy. d. a list of criticals.

A

What is an amalgam of catalogs from vendors available via the Internet within a market called? a. electronic marketplace b. buy-side system c. sell-side system d. on-line trading community

A

C

A 4PL is a. a 3PL owned by transportation related firm. b. a firm used to implement Facility Utilization and Equipment Utilization Strategies. c. looked to for sustaining successful supply chain relationships. d. a group of 3PLs owned by the company.

B

A closed loop system deals with a. green laws. b. both forward and reverse flows. c. waste flow. d. recycling.

What is modal selection? What are the key determinants in choosing a mode?

A critical transportation management issue is modal selection; it affects how quickly and efficiently products will flow across portions of the supply chain. If an organization has determined that controlling the transportation process and using external service providers (for-hire carriers or 3PLs) are in its best interest, it must then determine which mode(s) of transportation to use. Choosing among the six modal options is a function of three factors—modal capabilities, product characteristics, and modal freight pricing. All modes provide the same basic service of moving freight from point to point in the supply chain. However, the modes serve different customer requirements and goods in terms of value, tonnage, and ton-miles. The reason for the different uses is that each mode has unique attributes and capabilities that impact its ability to serve specific customer requirements. Numerous studies have been conducted over the years to identify the most important performance capabilities in modal selection. These studies commonly identify accessibility, transit time, reliability, and product safety as the key determinants in choosing a mode. Of course, cost is another critical consideration in modal selection. key to choosing them: accessibility, transit time, reliability, product safety, and cost

Category strategy development (strategic sourcing)

A decision process used to identify which suppliers should provide a group of products/services, the form of the contract, the performance measures used to measure supplier performance, and the appropriate level of price, quality, and delivery arrangements that should be negotiated. The steps include: 1) build the team. 2) market research. 3) strategy development. 4) contract negotiation. 5) supplier relationship management.

B

A downside of direct delivery 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 lead itself to this method.

A

A major challenge is ____ of total cost of the return flow processes. a. the estimation b. the management c. the tracking d. the control

Describe the characteristics of negotiations

A process of communication where 2+ actors collectively seek mutual agreement on an issue(s). Successes requires: - interdependence - common goals -flexibility -decision-making ability

B

A situation where a garage returns worn tires for recapping and receives them back is called a a. reverse logistics system. b. closed-loop system. c. waste stream. d. value added system.

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 sparked competition among carriers in several areas. Which of these is not an area of competition?

Accessibility

Which management area in an organization does not normally have transportation responsibility?

manufacturing

A

Air carriers were looked on as a. emergency only carriers. b. having equipment shortages. c. a fringe participant. d. insignificant.

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

What is it called when consumers can place with Amazon for groceries?

Amazon Fresh

Spend analysis techniques

Analysis should simplify & increase your understanding of "realized" value of inputs ... and potential savings. Spreadsheet tools useful, but key is getting accurate data. Pareto charting is an analysis technique

B

Application of the grid technique to the location of a city warehouse a. is no different from applying it in any other situation. b. incorporates a blanket rate structure that applies the same rate from an origin to any point within the city zone. c. leads to consideration of the costs of moving raw materials into the facility, and finished goods to the customers. d. enables the decision maker to disregard highway access to the specific site because this factor is accounted for in the technique.

The Critical Path Method (CPM)

Apply to projects where there is a single known time for each activity with no variance.

C

Asset utilization is a very important aspect of a. KPIs. b. 3PL distribution facilities. c. commercial distribution facilities. d. private distribution facilities.

Companies with 10,000 purchase transactions or more per year should consider a. strategic sourcing solutions. b. transactional procurement solutions. c. business-to-business transactions. d. e-procurement.

B

In the Execute Sourcing Strategy step, the most important thing is to a. appoint the sourcing committee members from the affected groups. b. choose a supplier or suppliers, depending on the objectives of the sourcing decision. c. verify which vendors are either TQM or ISO 9000. d. determine which vendors have the lowest prices.

B

What vendor selection criteria are described by price and financial stability? a. capability b. financial c. quality d. reliability

B

A closed loop system manages:

Both forward and reverse flows

Supplier Collaboration

Buyer and supplier working together cooperatively to realize shared goals. Both treated as equal partners in a venture. Understanding & change occurs with both. Common collaborative activities are: -Product/service design. -Solving supply problems. Should improve learning rate of supplier.

In the Assess Supply Market step, the firm a. determines which are the least cost vendors. b. decides which vendors are located closet to the firm's plant to insure timely delivery. c. identifies all possible suppliers that might be able to satisfy the user's needs. d. determines which vendors can supply more than one class of product.

C

Which is not a mode of transportation? A. truck B. air C. 3PL D. pipeline

C. 3PL

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.

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.

CEO perspective of SCM initiatives is consistent with the growth perspective that CEOS favor? you agree?

CEOS want top line growth but they see SCM as cost reduction so they do not agree.

B

CEOs view SCM initiatives a. as an area which can be left to second tier executives. b. being primarily focused on cost reduction. c. being primarily focused on top line growth. d. being more of a financial concern.

Discuss the elements of carrier selection, and how it differs from mode selection.

Carrier selection is a specialized purchasing decision that typically will be made by a logistics, transportation, or traffic manager who has expertise and experience in the purchase of transportation services. After the modal decision has been made, attention turns to selecting the individual transportation service providers within the mode. Like the modal decision, carrier selection is based on a variety of shipment criteria and carrier capabilities: transit time average and reliability, equipment availability and capacity, geographic coverage, product protection, and freight rates. A major difference between modal and carrier selection is the number of options. Modal selection involves six primary options, but the carrier selection may involve fewer or many more alternatives. In the case of rail transportation, many markets are only served by a single carrier and the choice is limited. At the other extreme is truckload transportation where dozens of carriers serve a particular market. Another difference is the frequency of the decision. Carrier selection requires more active and frequent engagement of the transportation buyer than does the more long range modal selection decision. This engagement does not focus on choosing a new carrier for each freight move; it focuses more on the transportation buyer remaining vigilant and managing the performance of chosen carriers. It is critical to monitor each carrier's service level and freight rates on an ongoing basis. Should carrier performance deteriorate, it may be necessary to select new service providers. The type of service provided within a mode impacts carrier selection. Most carriers have their roots in one of two types of service—direct service or indirect service—between which customers must choose. Within a mode, most carriers have the capabilities to provide a similar level of service, but these service levels can and do vary greatly from one transportation company to another. Also, since the cost structures are essentially the same for carriers in a given mode, their rates tend to be aligned for a given movement. Given this similarity, transportation rates tend not to be the most important criterion in carrier selection. Service performance is the key determinant for this decision. Carrier selection research suggests that reliability of on-time delivery and on-time pickup, technical capabilities, carrier response to emergencies, information sharing, freight damage experience, carrier financial stability, and total transit time are among the most important criteria to transportation service buyers. Carrier selection strategy commonly focuses on concentrating the transportation buy with a limited number of carriers. Using a small group of carriers helps the organization leverage its purchasing dollars for lower overall rates, build relationships with service providers who gain a better understanding of freight flows and requirements over time, and effectively monitor performance of the carrier base. In many cases, the core carriers become an indispensable extension of the organization's transportation management team; they are able to manage freight flows across the supply chain with limited direction or oversight. The ability to rely on the transportation expertise of trusted core carriers also allows the organization to focus its attention on other supply chain issues

A

Certain raw materials can be stored a. outside. b. only in a 3PL facility. c. upside down. d. anywhere.

D

Challenges for the trucking industry include a. driver shortages. b. competition. c. air freight. d. driver shortages and competition

B

Collaboration means a. a firm seeks advantages by sourcing with critical partners. b. companies leverage each other on an operational basis so that together they perform better than they did separately. c. that many logistics or supply chain improvements can be made within one firm by eliminating "stovepipes". d. that senior executives are insisting on this to improve their firms' financials.

Transportation efficiency promotes __________ in the supply chain.

Competition

There are four steps in the Managing Sourcing and Procurement Processes. Which does not belong? a. Determine the type of purchase b. Determine the necessary levels of investment c. Evaluate the effectiveness of the strategic sourcing process d. Examine off shore and e-procurement suppliers

D

Total procurement price includes a. product price. b. product price and transaction costs. c. product price and transportation costs. d. product price, transaction costs, and transportation costs.

D

KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant date.

False

In the Item Procurement Importance Matrix, what describes high risk, low value? a. Generics b. Commodities c. Criticals d. Distinctives

D

MRPII will not allow an organization to integrate financial planning with operations and logistics

False

What vendor selection criteria are described by vendor attitude, tracing aids, packaging, vendor location, and repair service? a. quality b. financial c. reliability d. desirable qualities

D

Which of the following is NOT a source of price? a. negotiation b. price quotation c. price lists d. wholesale price index

D

Spend Data

Datasets contain info on general classification or commodity, primary supplier of that category, and the dollar amount spent with that supplier in that commodity. -Well organized, relational data. -Transaction files with actual costs to suppliers are itemized so to associate with categories -Expected costs & quality issues by item

As the number of picks per order picker decreases on a given tour, his/her total time out_________ and the time per pick________.

Decreases, Increases

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?

Demand

Step 4: Contract Negotiation (category strategy development)

Designing relationship to match strategy: 1) Identify tasks and time lines 2) Assigning responsibility and process ownership 3) Ensure adequate resources available 4) Communicate strategy to all stakeholders and obtain buy-in (Tools include: Price quote analysis, Preferred supplier lists, Suppliers segmented, competitive bidding, and negotiation)

Which of the following does not belong in the list of the seven principles of supply chain management?

Develop Outsourcing Strategy to Maximize Asset Utilization

C

Disability refers to a. carrier failures. b. KPIs. c. characterics that influence mode selection. d. a carrier's inability to serve a potential customer.

The least-frequently used IT-based services by customers of 3PLs are:

strategic and customer-related

Seasonal stocks are not influenced by

EOQ

Seasonal Stocks are not influenced by

EQQ

what is Enterprise reosource planning

ERP systems are multi module application software platforms that help organizations manage the important parts of their business they branch out to include supplier relationship management, customer relationship management, and other supply chain components, the connections between scis and erp grow stronger erp systems provides mechanism for supply chian members to efficiently share info

It is not difficult to find and train high-quality personnel for DC operations.

False

A

Environmental challenges a. are often related to regulatory policy at the local, state, and federal levels. b. have led to waste steams being managed by 3PLs. c. require the review of the feasibility of the materials requirement plan. d. have led to green laws.

JIT was developed in the U.S. and copied by the Japanese

False

Triangulate

Explore, compare, and contrast data from multiple sources before you can validate it.

In the event of a "stockout" one of the things that could happen is

Extra shipping cost may be incurred

What are the 8 categories of products/materials in a reverse flow?

FOURPRRS products that have failed: are unwanted, damaged, or defective, but can still repaired or remanufactured products that are old: obsolete, or near the end of their life but have some salvage value products that are unsold from retailers: usually referred to as overstocks that have resale value products being recalled: due to tsafety or quality defect that may be repaired or salvaged products needing "pull and replace repair" before being put back into service products that can be recycled such as pallets, containers, compute inkjet cartridges products or parts that can be remanufactured scrap metal that can be recovered and used as a raw material for further manufacturing

A

Facility Utilization and Equipment Utilization Strategies are a. complementary. b. contradictory. c. unrelated. d. difficult to put in place without effective collaboration.

3PL's are asset-based logistics providers that physically move product through the supply chain

False

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

False

A carrier is never excused from a claim.

False

A financial based 3PL is a firm that takes a financial interest in an organization in order to underwrite the outsourcing of that firm's logistics.

False

After the layout of the operations is determined, attention shifts to the facility size of the operations within the distribution operation.

False

Asset utilization is very important in the 3PL warehouse.

False

Business intelligence applications are being used to gather information on competitors and their suppliers.

False

Companies have discovered that there is no revenue opportunities to offset the costs in sustainability practices.

False

Companies have discovered that there is no revenue opportunities to offset the costs in sustainability practices.

False

Corporate executives are already well aware of the impact supply chain management can have on their businesses.

False

Cross-docks typically increase transportation costs.

False

Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation.

False

EOQ can only be used for "push" inventory.

False

EOQ can only be used to "push" inventory.

False

Efficiency of distribution facilities and networks is not nearly as critical as their speed.

False

Following the trends in deregulation of most transportation modes, freight rate negotiations are being decentralized.

False

Given the availability of information, transportation buying has become comparatively easy.

False

IBM Watson is a prescriptive analytics system that can help to understand data, learn from it, and reason through it.

False

IBM Watson is a prescriptive analytics system that can help to understand data, learn from it, and reason through it.

False

Intermodal growth has been flat.

False

Inventory management is not as important as it once was due to other factors that have come into play.

False

Inventory management is not as important as it once was due to other factors that have come to play.

False

Nike uses active sensors in high-value merchandise that send out telemetry data, tracking the package's traveling speed and conditions. Applying analytics to this data has the potential to largely reduce supply chain reaction times to avoid delays in shipments

False

Nike uses active sensors in high-value merchandise that send out telemetry data, tracking the package's traveling speed and conditions. Applying analytics to this data has the potential to largely reduce supply chain reaction times to avoid delays in shipments.

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

Order accuracy and order completeness are the same.

False

Predictive analytics is the level that incorporates available data to answer questions such as what, where, and when certain supply chain activities, processes, or events are happening.

False

Predictive analytics is the level that incorporates available data to answer questions such as what, where, and when certain supply chain actives, processes, or events are happening.

False

RFID applications have been widely embraced due to their low cost and high reliability.

False

Rail is the mode of transportation that is the fastest shipment traveling over 800 miles

False

Reverse flows in logistics have decreased.

False

SCIS software selection is relatively straightforward as the choices have been simplified.

False

Seamless order entry is not that important to the success of omni-channel retailing.

False

Spreadsheets and database software no longer have a place in SCIS as newer tools have supplanted them.

False

Storage space costs are not variable.

False

Technological capabilities ultimately determine the success or failure of SCIS, rather than the technology users.

False

The "IT gap" refers to the difference between the internal IT capabilities of 3PL users and the IT expertise of the 3PL providers.

False

The main strategy behind routing guides is to maintain very tight control of transportation costs

False

The railroads have not shared in the growth in transportation and so do not have any capacity issues.

False

The reason retailers are so successful with the Omni-channel is because the channels provide so many different views of the customer.

False

The reason retailers are so successful with the Omni-channel is because the channels provide so many different views of the customer.

False

The reorder point depends on the orders in-house at that time.

False

The responsibility for transportation management is typically not assigned to any one management discipline in an organization.

False

The term supply chain information system (SCIS) is well defined and commonly understood.

False

Vertical relationships more than horizontal relationships have been identified as highly useful to the achievement of long-term supply chain objectives.

False

With all of the new technology and game changing ideas, the future of omni-channel does not look like it will take off.

False

Freight Claims Bill

Filed with the carrier to recoup monetary losses resulting if carrier fails to protect the shipment. Carriers are not liable if: Natural disaster, Military attack, Gov. seizure of freight, Failure to adequately package the freight or other negligent, Extreme fragility, perishability

A

Financial vs. Non-financial Benefits of Collaboration include a. whether collaboration "pays for itself." b. making sure that each firm uses the same type of accounting systems and fiscal year reporting. c. that KPIs for involved parties should be widely distributed among the partners. d. a reason for undertaking this task, as it is quite difficult.

Define FOB terms and discuss the various areas they cover.

Free-on-board (FOB) terms of sale specify when the ownership and title of the goods pass from a seller to a buyer in a domestic transaction. Wise selection of FOB terms determines control over mode and carrier selection, transportation rate negotiation, and other key decisions. Another important aspect of terms of sale is the determination of in-transit freight accountability. FOB terms determine where the buyer's responsibilities begin and where the seller's responsibilities end. If the terms are FOB origin, title (ownership) to the goods changes hands at the origin—usually the shipping point or seller's distribution center loading dock. From that point on, the goods belong to the buyer, and any loss or damage is the responsibility of the buyer. If the terms are FOB destination, the title transfers at the destination—typically the buyer's unloading dock. The seller has total responsibility for the goods until they are delivered to the buyer. A related issue is the responsibility for carrier payment. In general the seller pays the carrier for the transportation service cost under FOB destination terms, while the buyer pays the carrier under FOB origin terms. However, exceptions to these guidelines do occur. The option for Freight Prepaid or Freight Collect should be specified with the FOB terms. In cases where the seller has more clout with carriers, it is wise to have the seller negotiate transportation rates under the Freight Prepaid option. Freight Collect is typically used when the buyer has more power with carriers.

B

Heuristic models a. do not provide an optimum solution. b. are able to accommodate broad problem definitions. c. have fallen from use because of SAILS. d. are unable to incorporate certain rules into the decision-making process.

What are the aspects of planning for contract negotiations?

Gather relevant information and objectives Recognize their needs Develop Strategies Practice Negotiation BATNA and bargaining zone

What are the five major global strategies for SCM

Global Rebalancing productivity imperative global grid pricing the planet market state

BATNA (Best Alternative to a Negotiated Agreement)

How to determine 1) If the other party withdrew from negotiations today, what are your alternatives? 2) Place an estimated value on all the economic variables such as price, timing, warranty, options, etc. 3) How important is your long-term relationship with the other party? Can you assign a dollar value to it? Does it override other factors? 4) Can you improve your BATNA by seeking new alternatives to no agreement?

What does x% learning curve mean, and how is it calculated?

Improvement rate with experience. The Proportion x% of previously needed resources as activity (production) doubles E.g. 85% rate is a cost decline of 15% Calculate by finding the difference between the new output minus the old output divided by the new output.

large orders are always more expensive to pick and ship. Do you agree

In ABC we see that small orders are actually more expensive to pack and ship than a large order

Back-Sourcing

In-sourcing again what was once internally done but had been out-sourced. Common reasons include: -contract problems -internal changes (merger) -external changes (customer, capabilities)

As a products susceptibility to loss and damage increases, its transportation cost:

Increases

There are three principle supply chain information requirements that support effective decision-making. Which of the following is NOT one of the three?

Information must be in the form of real-time data

Which one of the choices below is NOT one of the various stages and levels of sophistication and robustness that is associated with supply chain analytics:?

Indicative

Intermodal Transportation

Intermodal transportation service refers to the use of two or more carriers of different modes in the origin-to-destination movement of freight. The primary benefits of intermodalism include the greater accessibility that can be created by linking the individual modes; the overall cost efficiency that can be achieved without sacrificing service quality or accessibility; and the fact that intermodal transportation facilitates global trade. There is strong evidence that intermodal transportation has grown in importance and volume. The number of containers flowing around the world from U.S. ports has increased from 15.5 million TEUs in 1990 to 37.2 million TEUs in 2009. Experts predict that this trend will continue as the global economy recovers. Domestic flows of intermodal freight have also risen over the same 20-year period. For example, the U.S. rail system moved 8.2 million containers and 1.6 million trailers in 2009. Much of this intermodal growth can be attributed to the development of standardized containers that are compatible with multiple modes. Other factors that have contributed to the growth of intermodal transportation include better information systems to track freight as it moves through the supply chain, development of intermodal terminals to facilitate efficient freight transfers between modes, and new generations of ocean vessels, railcars, and truck trailers that handle greater quantities of intermodal freight with greater ease. A recurring issue in the intermodal transportation market is congestion. Transfer points are not as flexible and can get clogged with freight. Equipment shortages, transfer facility congestion, and labor issues create delivery delays and supply chain disruptions. Infrastructure investment, equipment purchases, and operator hiring will be needed to prepare for the anticipated growth of intermodal transportation. (Pages

What are Incoterms, and what terms of sale decisions do they help to clarify?

International terms of sale are covered by International Commercial Terms (Incoterms). International transactions often present greater challenges, and parties to the transaction must understand how these terms of sale can impact transportation decision making. Even a relatively straightforward international transaction involves long distances, multiple modes of transportation and logistics intermediaries, duties and tariffs, government inspections, and significant opportunity for damage or delay. Thus, transportation managers must be extremely concerned about when and where the title to the goods will change hands. Incoterms facilitate efficient freight flows between countries. As described by the International Chamber of Commerce, Incoterms are international rules that are accepted by governments, legal authorities, and practitioners worldwide for the interpretation of the most commonly used terms in international trade. They address matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold. These terms of sale decisions help to clarify the following questions: • Who will be responsible for control and care of the goods while in transit? • Who will be responsible for carrier selection, transfers, and related product "flow" issues? • Who will bear various costs - freight, insurance, taxes, duties, and forwarding fees? • Who will handle documentation, problem resolution, and other related issues? The most recent update, known as Incoterms 2010, is an effort to simplify these trade terms. The number of Incoterms options has been reduced from 13 to 11, seven of which apply to all modes of transportation and four of which apply only to water transportation. Among other changes, Incoterms 2010 have been clarified so that they can apply to both international and domestic freight. Taking control of freight through Incoterms allows organizations to leverage their purchasing power with specific carriers to achieve lower rates, coordinate inbound and outbound flows, and consolidate freight to achieve greater efficiencies. Other potential benefits include the ability to manage risk, achieve greater freight visibility, and ensure available equipment capacity

Portfolio Analysis

Is a tool to structure and segment the supply base, and is used as a means of classifying suppliers into one of four types: critical, routine, leverage and bottleneck.

Capital cost focuses on the cost of capital tied up in ________and the resulting lost opportunity from investing that capital elsewhere.

Inventory

Process D1: Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC cycle model. t/f

true

Supplier Development

Is an activity undertaken by a buyer to improve a supplier's performance or capabilities to meet the buyer's short- and long-term supply needs. Organizations rely on activities to improve supplier performance, including sharing technology, providing incentives to suppliers for improved performance, promoting competition among suppliers, providing necessary capital, etc.

Producer Price Index (PPI)

Is an index Published by U.S. Bureau of Labor Statistics for tracking price quarterly. - Price increases from suppliers can be compared to increases in the PPI to determine if they are reasonable. - Especially applicable to commodities -Use for relative benchmarking and for understanding trends (Some buyers expect the supplier to consistently reduce their price inflation so that they outperform the PPI.)

Value Chain Analysis

Is used to help identify the cost savings opportunities that exist within the supply chain. Reveal actors in the network.

The two largest cost centers in a DC are:

Labor, space

What are the two carrier types and what are the different specilized ships.

Liner services and charter services. containerships, bulk carriers, tankers, general cargo ships, and roll-on roll off (RO-RO) vessels.

D

Which is not a support function? a. inventory control b. safety, maintenance, and sanitation c. information technology d. movement and storage

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

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

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

This mode of transportation is the one most often used intermodal shipments.

Motor Carrier

motor carriers (primary mode of transportation)

Motor carriage is the most widely used mode of transportation in the domestic supply chain, ranging from the smallest delivery van to the largest tractor-trailer combination. The sophisticated U.S. highway network permits trucks to reach all points of the country. This accessibility combined with the industry's excellent service capabilities, has made trucking the mode of choice for high-value, time-sensitive goods. The trucking industry is highly competitive and made up of 502,000 private, for hire, and other U.S. interstate motor carriers. There are no significant cost economies of scale that make it impossible for small carriers to compete. Most expenses are incurred as the result of moving freight; thus, trucking is a high-variable-cost, low-fixed-cost business. Much of the freight moved by the trucking industry is regional in nature, moving within a 500-mile radius of the origin. The trucking industry is comprised of for-hire and private fleet operations. Private fleets primarily transport freight that is owned by the organization that is operating the trucks. Motor carriers face daunting challenges in the future—rising costs, labor issues, and competition. Trucking companies are able to pass along rising fuel and insurance costs during economic expansions, but cannot always do so if capacity exceeds demand. A shortage of truck drivers will only become more serious as current drivers retire. Finally, competition will remain fierce, with customers expecting near-perfect performance.

When comparing order cycles, the average order cycle is always the most important?

No, the last day in the range is the most important. The supplier wants to guarentee delivery within that amount with no stock-outs in its manufacturing process. Absolute length of the order cycle influences demand inventory

Product value is an important factor in modal selection. t/f

true

What are some typical cost reduction opportunities?

Overall, trying to rationalize resources expended for value gained *Buy-side* - Customizing (ie, specs) increases product costs - Standardize parts/processes if can -Supply management efficiency (PO size, freq) *Supply-side* - Plant utilization & Process capability (fixed/unit) - Learning curve effect -Supplier's workforce & management

Integrative Bargaining Approach

Parties integrate their interests toward a final agreement: - Collaborative, "expand-the-pie", win-win - Focus is on creating & then claiming value - Critical knowing reason for positions, then give-and-take based on priorities

pipeline (primary mode of transportation)

Pipelines handle 5.2 percent of U.S. freight tonnage. This is a unique mode of transportation as the equipment is fixed in place and the product moves through it in high volume. Pipelines effectively protect the product from contamination and also provide a warehousing function. Pipelines provide the most economical form of transportation with the lowest cost per ton of any mode. The U.S. has the largest network of energy pipelines of any nation in the world. Pipeline costs are predominantly fixed. Pipeline operators must build their own right-of-way, which is a rather expensive proposition. Variable costs in the industry are very low as little labor is required to operate the pipelines and limited fuel is needed to run pumps. The construction of a pipeline becomes cost effective when product flows continuously, allowing the fixed costs to be spread over a high volume of goods. The vast majority of products moved by pipeline are liquids and gases, the economically feasible products to flow via this mode. The pipeline industry is comprised of for-hire and private carriers that maintain their own infrastructures. For-hire carriers of liquid products can move different products through their system at the same time, separated by a batching plug that maintains the integrity of individual products. Private carriers include petroleum and natural gas companies that use pipelines to move product to and from their refineries, processing plants, and storage facilities. The ongoing issues for the pipeline industry are safety and security. Compared to other modes, pipelines have enviable safety and environmental records with spills amounting to only one gallon per million barrel-miles. However, vigilance is critical because pipeline accidents can quickly become catastrophic events. Pipeline operators must also be cognizant of security risks and should maintain contingency plans to deal with hurricanes or terrorist attacks.

C

Potential labor problems for distribution centers are because of a. Low pay and long hours b. Competition from nearby firms c. The graying of America d. Awareness of these job opportunities

Which one of the various stages of sophistication and robustness associated with supply chain analytics focuses on questions such as what is likely to happen, what are the likely trens, and what are the results if certain events occur?

Predictive

Railroad's length of haul is longer than that of motor carriers. t/f

true

Value partitioning and price

Price partitions value between buyers and suppliers (their profit or yours?)

Railroads have accessibility limitations. t/f

true

Linehaul freight carriers

Provide service between major markets. Move freight in container, carload, and unit train quantities.

JIT is a ___________ system.

Pull

Which of the following modes of transportation is considered the most "capable"?

Rail

C

Railroads fall into a group called a. class 1 carriers. b. intermodal operators. c. natural monopolies. d. service challenged carriers.

railroads (primary mode of transportation)

Railroads transport more than 1.9 billion tons of freight annually despite a lack of direct accessibility to all parts of the supply chain. Rail service is perceived as being a slow, inflexible, and inconsistent mode. The industry is dominated by seven Class I railroads (revenues in excess of $379 million). None of these major rail carriers services the entire country by itself; they work together via interline agreements to provide coast-to-coast rail service. This mode requires a large investment in terminals, equipment, and trackage to begin operation; the accompanying huge capacity allows railroads to be a decreasing cost industry. As output (ton-miles) increases, the average per-unit production cost decreases. Rail transportation is primarily used for the long-distance movement of low value raw materials and manufactured products but they also handle some high-value goods, primarily automobiles and intermodal containers filled with imported finished goods. In fact, intermodal volume is rising faster on a percentage basis than traditional rail freight. The rail industry faces a number of challenges moving forward. Capacity is an ongoing concern. With the track infrastructure remaining largely unchanged, additional freight, crews, and equipment cannot dramatically impact system delays.

Category (Interchangeable with the term commodity.)

Refers to a specific family of products or services that are used in delivering value to the end customer. Grouped by: -Inherent characteristics. -Sourcing location (LCGs) or process. -Volume or value. -Use.

Price Analysis

Refers to the process of: - Comparing supplier prices against external price benchmarks, without direct knowledge of supplier's costs. - Assessing common seller pricing strategies in a given market. - Identifying the primary external forces that cause prices to increase or decrease - Understanding supply-demand & competition Looks at commodities and generics quadrants.

Learning curves

Refers to the reduced direct-labor hours to specific items or projects. Establishes rate of improvement due to learning as producers realize direct-labor cost improvements as production volumes increase. Two factors include: workforce and process change.

A

Retailers lose, on average ____ percent of sales due to returns. a. 3−5 b. 4 c. 20 d. 30

This type of inventory is influence by the reliability of demand and lead time

Right Answer: B A) Cycle stock B) WIP C) Safety stock D) Seasonal stock

Capital cost focuses on the cost of capital tied up in __________ and the resulting lost opportunity from investing that capital elsewhere.

Right Answer: B A) Plants B) inventory C) distribution centers D) WIP

WIP inventories

Right Answer: B A) not included on the balance sheet B) are associated with manufacturing C) are the same as VMI inventories D) are not impacted by EQQ

What is it called when consumers can place with Amazon for groceries?

Right Answer: B A)Amazon Effect B)Amazon Fresh C)Amazon Flex D)Amazon Food E) None of the above

Which one of the various stages of sophistication and robustness associated with supply chain analytics focuses on questions such as what likely to happen, what are the likely trens, and what are the results if certain events occur?

Right Answer: B A)Descriptive B) Predictive C)Prescriptive D) Cognitive

A closed loop system manages:

Right Answer: C A) Green Laws B) Waste Flow C) Both forward and reverse flows D) Recycling E) None of the above

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.

Right Answer: C A) Kan Ban B) VMI/Consignment C) MRP D) JIT

Which of the following does not belong in the list of the even principles of supply chain management?

Right Answer: C A)Segment customers based on service needs B) Differentiate Products Closer to the customer C) Develop outsourcing Strategy to Maximize Asset Utilization D) Adopt Channel-Spanning Performance Measures

Which is not one of the seven principles of supply chain management?

Right Answer: D A) Source strategically B) Customize the logistics network C) Segment customers based on service needs D) Standardize where feasible E) None of the Above

Dependent demand relates to

Right answer: A A) demand for another inventory item or product B) the spare parts needed to fill the order C) VMI inventories D) the cost of capital for the firm

As Q decreases for EQQ, the cost per order:

Right answer: C A) increases B) decreases C) stays the same D) can't be determined

product safety

Safety is critical to the achievement of customer service, cost control, and supply chain effectiveness. From a safety standpoint, goods must arrive at the destination in the same condition they were in when tendered for shipment at the origin. Proper precautions must be taken to protect freight from loss due to external theft, internal pilferage, and misplacement, as well as damage due to poor freight-handling techniques, poor ride quality, and accidents. Safety is often pursued through substantial protective packing. • Safety advantage: Air transportation and motor carriage have the best reputations for product security. Their equipment provides excellent ride quality and protection from the elements. Faster transit times also reduce the opportunity for theft and other mishaps. • Safety disadvantage: Rail and water face significant challenges to maintaining product integrity. Goods moving via rail encounter a great deal of vibration, swaying, and jarring. Water transportation often exposes goods to the elements, excessive movement, and rough handling during the loading and unloading processes.

This type of inventory is influenced by the reliability of demand and lead time.

Safety stock

D

Simulation models are designed to a. produce optimum solutions. b. incorporate relatively comprehensive and detailed problem descriptions. c. generate SAILS reports. d. produce feasible network design alternatives.

Define and discuss Transportation Management Systems (TMS)

Software tools related to the movement of goods across the supply chain are lumped together in a general category called transportation management systems (TMS). TMS is defined as information technologies used to plan, optimize, and execute transportation operations. This simple definition captures the essence of TMS, presenting it as a melting pot of applications used to assist managers in nearly every aspect of transportation from basic load configuration to complex transportation network optimization. The planning capabilities of TMS assist transportation buyers and managers with the key pre-shipment decisions discussed earlier. These individuals cannot adequately evaluate the thousands of potential lane/mode/carrier/service/price combinations in their supply chains without technological help. TMS tools allow organizations to consider a vast array of transportation options in a matter of minutes versus hours or days of manual design activity. In addition, freight planning tools can be linked to order management systems, warehouse management systems, and supply chain planning tools to gain timelier, more comprehensive information. With this knowledge, better supply chain decisions and tradeoffs can be made. • Critical TMS planning applications include routing and scheduling, and load planning. TMS execution tools help transportation managers streamline some of their shipment activities. With multiple shipments needing delivery each day, manual processes are susceptible to errors, missed deadlines, and customer service failures. Various TMS capabilities automate repetitive activities to reduce labor costs and accuracy problems. For example, standardized templates can be used to ensure that complete and accurate shipment data are provided in transportation documents. Other tools post detailed shipment information to a shared network or a Web site to promote shipment visibility and provide greater freight control. • Three of the key execution tools include load tendering, status tracking, and appointment scheduling. TMS analytical tools provide organizations with the ability to make postshipment evaluations of carrier performance, customer service, and network cost. The data required for analysis can be spread across the entire supply chain in a variety of documents and information systems. It is critical to collect these data in a timely fashion so that the KPIs can be measured, performance assessed and benchmarked, and corrective action taken. TMS help organizations assemble and make sense of the vast array of transportation data that are generated by freight movement. • Two useful analytical applications are performance reporting and scorecarding, and freight bill auditing

Category Strategy

Specifies how a group tasked with developing the strategy for the specific commodity being purchased will achieve goals that in turn will support the supply management-, business unit, and ultimately corporate-level strategies.

Which is not one of the seven principles of supply chain management?

Standardize where feasible

Step 3: Strategy Development (category strategy development)

Strategic plan to convert data into meaningful knowledge and apply tools to structure info to render an effective decision for how to design: 1) Organization: Managerial structure. 2) Supply Base: Portfolio Analysis of suppliers. 3) Quality 4) Costing: Pricing & total cost of ownership. 5) Contracts 6) Processing: Procure-to-pay method.

Spend Analysis

Summarization of purchases across or within spend categories. The purpose is to understand values and patterns in supply, reveal strengths & weaknesses, and identify spend categories requiring strategic plans.

A

Terms of sale establish a. when ownership and title passes. b. what must be shown on the bill of lading. c. which mode must be used. d. INCO terms.

The drawback of centralized inventory is:

That it extends lead times and results in higher transportation costs.

Air carriers (primary mode of transportation)

The advent of e-commerce, the growth of global supply chains, and initiatives to reduce inventory and order cycle time have contributed to a sustained increase in demand for air transportation. While air cargo transportation remains a small and specialized mode in terms of tonnage, U.S. spending was $33 billion in 2010. Worldwide, air cargo industry revenues are approaching $594 billion, and freight traffic is projected to grow at an annual rate of 6.1 percent over the next 20 years. The FAA activity report identifies 88 carriers that are engaged in air cargo, 22 of which are considered major carriers. The air carrier cost structure consists of high variable costs in proportion to fixed costs, somewhat akin to the motor carrier cost structure. Like motor and water carriers, air carriers do not invest heavily in facility infrastructure or byways. The government builds terminals and provides traffic control of the airways. Air carriers pay variable lease payments and landing fees for their use. Equipment costs, though quite high, are still a small part of the total cost. Air transportation is used to ship small quantities of high-value, low-weight, semi-finished, and finished goods. The air cargo industry faces numerous obstacles to profitable growth, including cost issues, competition, and security challenges. The rising cost of fuel directly impacts the success of the industry. The growth of next-day trucking services is putting pressure on the domestic air cargo industry. Air carriers may find it difficult to pass along increased costs in the face of this growing competition. Finally, the industry is under pressure from costly security mandates, which are estimated to have an annual impact of more than $4 billion on the industry.

A

The classic objective of a network design model has been a. to establish the number, location, and size of finished goods distribution centers and associated product flows. b. to find the best location for a forward facing warehouse. c. to examine the finished goods flow. d. to measuring and control site locations.

cost

The cost of transportation is an important consideration in the modal selection decision, especially when a low-value commodity needs to be moved. Transportation costs include the rate for moving freight from origin to destination plus any accessorial and terminal fees for additional services provided. Examples of these additional costs include inside delivery to a retailer located inside a mall, packing freight in crates for international delivery, or setting up a delivery of furniture in a residential location. A number of factors are taken into consideration when freight rates are developed, including weight of the shipment, distance from origin to destination, nature and value of the product, and the speed required. • Cost advantage: The cost of transportation service varies greatly between and within the modes. In general, pipeline, water, and rail service are low cost transportation methods. The tradeoff, of course, is slow speed, which forces a company to hold a greater level of inventory to meet demand during these longer transit times. • Cost disadvantage: Motor carriage and air transportation are high-cost modes compared to the others. On average, motor carriage is about 10 times more expensive than rail, and air service is more than twice the cost of motor carriage. Given the varying capabilities and cost of each transportation mode, it is obvious that modal selection is not a quick and easy process.

B

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 produces longer lead times and higher transportation costs.

B

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.

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing. t/f

true

B

The grid approach a. is a variation of SAILS. b. assumes that the raw materials sources and finished goods markets are fixed. c. assumes that the raw materials sources and finished goods markets are variable. d. deals with multiple locations.

D

The grid approach is used to determine a fixed facility location that is the least cost center for moving both raw materials and finished goods within a geographic grid. This least cost center is also referred to as a. a zero point. b. a source point. c. grid zero. d. a center of gravity.

A

The location selection team formed for the facility location decision process a. must be aware of the firm's overall business and corporate strategies and the supply chain. b. makes broad recommendations on the location decision. c. includes workers from divisional levels only. d. is usually senior level officers who can make decisions.

C

The most compelling financial strategy is a. profit improvement. b. cash to cash cycle management. c. operational efficiency. d. inventory productivity.

A

The optimization model is based on a. precise mathematical procedures. b. subsequent what-if types of analyses. c. complex model structures. d. operations.

A

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.

What is involved in supply-base optimizing?

The process of determining the right mix and number of suppliers to maintain. 1) Identify top-level (i.e. world-class) versus minimum performance expectations 2) Strive for the ideal number and mix of supplier capabilities 3) helps determine with whom to collaborate, develop, or eliminate

Make-Buy Analysis

The process of objectively determining quality and cost differences between alternative products that can be made on-site or purchased from one or more suppliers.

The first facility consideration is to determine

The size of each operation within the network.

C

The strategy behind routing guides is to a. maintain exact control. b. comply with or enforce FOB terms. c. promote supply chain excellence. d. select mode.

How can firms align their supply management and enterprise objectives?

The strategy development process is integrative, because the strategy is drafted by (or has significant input from) the people responsible for the implementation. Corporate strategic plans funnel or cascade into specific supply management and commodity goals, through a series of iterative planning stages.

A

There are ____ high-priority areas in which it is important to develop effective logistics and supply chain strategies a. five b. six c. seven d. four

Describe the purpose and value of freight documentation.

They spell out details of the shipment: the product, destination, ownership, and more. Its needed to facilitate the uninterrupted flow of goods through the supply chain.

A

Time based strategies could affect a. cash to cash cycle management. b. location selections. c. CEOs' understanding of supply chain management. d. the seven principles.

A

Time-Reduction Logistics Initiatives a. could change push to pull. b. could change pull to push. c. require a total re-evaluation of supply chain strategies. d. have not found as much interest as other strategies.

A

Total life cycle considerations (TLC) a. are figuring more prominently into reverse logistics programs. b. are being considered by manufacturing. c. can be critical to product differential. d. mean the analysis of a waste stream.

Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation. t/f

false

A

Trade imbalances affect a. water carriers. b. motor carriers. c. railroads. d. pipelines.

Both reverse and closed-loop systems are important strategies that impact sustainability in a positive manner.

True

Capital cost is also called interest or opportunity cost.

True

Dependability is not as important to a buyer as is absolute length of lead time. t/f

false

one important interaction that must be considered is the tradeoff between distribution and_______________

Transportation

What role does information technology play in the management of transportation planning, execution, and analysis?

Transportation management systems are widely used information technologies. Emerging tools such as event management and RFID have the potential to improve supply chain visibility and dynamic response to potential challenges.

B

Transportation may account for as much as ____ percent of the cost of reverse flow. a. 20 b. 35 c. 30 d. 35

Transportation plays a key role in supply chain design, strategy development, and total cost management in three areas.

Transportation service availability, capacity, and costs influence decisions regarding the number and location of supply chain facilities. For example, many organizations attempt to avoid locating distribution facilities in the state of Florida due to transportation costs. Transportation capabilities must align with the company's goals. In its 2009 annual report, Amazon.com states that it seeks to be Earth's most customer-centric company and strives to provide easy-to-use functionality, fast and reliable fulfillment, and timely customer service. To hit the targets, Amazon.com needs to partner with carriers that deliver customer orders consistently and quickly, provide shipment visibility, and charge reasonable shipping rates. Intentional tradeoffs should be made between transportation and related activities (e.g., procurement, production, and inventory management) to optimize supply chain efficiency. For example, retailers can hold lower safety stock levels if the cost of more frequent, faster deliveries does not exceed the inventory carrying cost savings. Similarly, manufacturers can employ lean production strategies if lot sizes can be minimized without creating excessive transportation costs.

"Batching economies" and "cycle stocks" are the same.

True

4PL providers not only provide a broader scope of services to their clients and customers, but typically may be more strategically involved.

True

A bill of lading is nonnegotiable.

True

A common productivity is measured as the ratio of real output to real input.

True

A key Requirement for service quality monitoring is information.

True

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply.

True

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negitavely impact the source of supply.

True

A successful approach in overcoming organizational resistance is to effectuate collaboration in the supply chain.

True

An analysis of the benefits of a reverse or return flows program is dependent upon the development of the true costs associated with such a program and comparing them to a realistic measure of the benefits.

True

An analysis of the benefits of a reverse or return flows program is dependent upon the development of the true costs associated with such a program and comparing them to a realistic measure of the benefits.

True

Both reverse and closed-loop systems are important strategies that impact sustainability in a positive manner.

True

Central to an understanding of supply chain analytics is to recognize that one of the highest priorities at many organizations today is to take a giant leap from data to information, and then from information to understanding.

True

Central to an understanding of supply chain analytics is to recognize that one of the highest priorities at many organizations today is to take a giant leap from data to information, and then from information to understanding.

True

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

True

ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses.

True

Event management systems monitor the supply chain for events that are out of tolerance, such as a shortage of parts at a manufacturing location or the breakdown of a truck delivering an important order.

True

For an omni-channel retailer, the critical issue is not where inventory is positioned within the network but whether it is available to fill an order, regardless of its origin.

True

For an omni-channel retailer, the critical issue is not where inventory is positioned within the network but whether it is available to fill an order, regardless of its origin

True

In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels.

True

In comparison with the basic EQQ approach, the fixed interval model does not require close surveillance of inventory levels.

True

Individual supply chain applications must work together to provide a holistic view of all relevant processes, and must also link effectively to supply chain partners.

True

Information is useful only if it can drive effective decision making

True

JIT, MRP, and MRP II all incorporate some version of the basic EOQ model into their philosophies.

True

JIT, MRP, and MRP II all incorporate some version of the basic EQQ model into their philosophies.

True

Liner offers is a global ocean freight transportation scheduled departures and arrivals between major ports

True

Nonintegrated air carriers do not supply door-to-door service

True

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself

True

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.

True

Organizations may benefit substantially from the establishment of one or several-warehouses to reduce transportation cost.

True

Outsourcing and contract logistics are terms sometimes used to describe third-party logistics.

True

Outsourcing transportation is a "buy" decision

True

Pipeline costs are predominantly fixed.

True

Product handling functions include both receiving and shipping.

True

Product value is an important factor in modal selection.

True

Proper product slotting can improve labor productivity and generate other advantages for the organization and its customers.

True

Railroad's length is longer than that of motor carriers.

True

Shippers see more strategic and IT based processes such as supply chain planning and network modeling and optimization, as great areas of opportunity to leverage big date.

True

Shippers see more strategic and IT-based processes such as supply chain planning and network modeling and optimization, as great areas of opportunity to leverage big data.

True

Slotting is defined as the placement of product in a facility for the purpose of optimizing materials handling and space efficiency.

True

Software tools related to the movement of goods across the supply chain are lumped together in a general category called transportation management systems (TMS)

True

Some European countries have passed green laws, which means that companies doing business in these countries must be cognizant of regulations and policies regarding sustainability.

True

Some European countries have passed green laws, which means that companies doing business in these countries must be cognizant of regulations and policies regarding sustainability.

True

Supply chain software is now available over the Internet. These applications are collectively known as on-demand software.

True

The drawback of centralized inventory is the long distance to customer, which typically extends lead times and results higher transportation cost.

True

The promise of driverless vehicles is a long-range prospect as much more testing and proof of concept will be needed to gain regulatory and public acceptance of truly driverless vehicles.

True

The seven principles of supply chain management have stood for the test of time very well.

True

There are three principle supply chain information requirements that support effective decision-making. First, the information in a system must meet quality standards to support fact-based decision making. Second, the information must readily flow within and between organizations. Third, the information must support multiple types of supply chain decisions.

True

There is a strong feeling among some supply chain experts that the mitigation of risk is the best driver of sustainability initiatives.

True

There is a strong feeling among some supply chain experts that the mitigation of risk is the best driver of sustainability initiatives.

True

Vertical integration refers to collaboration typically among buyers and sellers in the supply chain.

True

WMS is more than a simple database that provides stock location information.

True

Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level.

True

When establishing a distribution strategy, the first and most obvious consideration is the product.

True

upside deliver adaptability upside deliver flexibility downside deliver adaptability

Upside Deliver Adaptability: is the maximum sustainable percentage increase in quantities delivered that can be achieved in 30 days with the assumption of unconstrained finished good availability Upside deliver flexibility: is the total elapsed days between the occurrence of unplanned event and the achievement of sustained delivery performance Downside deliver adaptability: is the max percentage reduction in delivered quantities that your business entitiy can sustain at 30 days prior to delivery with no inventory or cost penalties

Total cost of ownership (TCO) - beyond specific supplier

Use net present value for distant future to identify all costs to possess/use: 1) Purchase price: Invoice amount paid to supplier 2) Acquisition: Costs of bringing product to buyer 3) Usage: Costs of conversion / support 4) Opportunity costs: difference vs next best alternative (cycle time, resources) 5) End-of-life: Salvage costs/value

Perpetual inventory systems are required for any EQQ model having__________ demand while periodic inventory systems are used for EQQ models having ____________ demand

Variable, constant

EOQ can only be used for "push" inventory. t/f

false

Gantt Chart

Visually displays tasks and times associated with a project. A horizontal bar chart with activities listed vertically and times/dates displayed horizontally. Relatively inexpensive to use/develop, can convey a great deal of info. Hard to keep up to date for larger projects.

water (primary mode of transportation)

Water transportation is a major facilitator of international trade. $115 billion worth of freight and 4.7 percent of the total ton-miles annually is moved via water transportation. Globally, water carriers dominate all other modes, garnering approximately half of the international freight revenue and handling nearly all tonnage. Although very slow and limited by the natural infrastructure, domestic water carriers offer tremendous capacity per vessel, efficient fuel consumption, and low cost. The economics of water transportation is similar to that of airlines as these carriers require no investment for the right-of-way and government entities known as port authorities provide unloading and loading services, storage areas, and freight transfer facilities. The water carriers pay user fees for these port services only when used. Large oceangoing ships require significant capital investments, but cost is spread over a large volume of freight transported during the lengthy life span of most ships. The domestic carriers compete vigorously with railroads for long-distance movement of low-value, high-density, bulk cargoes that mechanical devices can easily load and unload. However, water carriers handle a wider variety of goods. Every conceivable type of cargo is transported via international water carrier, from low-value commodities to imported automobiles. The major challenges faced by carriers in international water transportation relate to capacity, trade imbalances, environmental concerns, and security. Capacity shortages can be a problem when the global economy is growing, but the problem shifted to excess capacity during the global recession. Also, the imbalance of international trade between export-dominant Asian countries and import-dominant North America can create equipment availability problems at the origin and port congestion problems at the destination. The industry must also work to reduce carbon dioxide emissions as ships burning low-grade fuel account for 4.5 percent of all global emissions of this greenhouse gas. Security is a multifaceted challenge that must be addressed. Piracy is a growing problem.

A

What advantage does the transit privilege give to shippers located at intermediate locations? a. a lower, long-distance through rate charged for the shipment b. Freight All Kinds (FAK) rates charged for the shipment c. not having to pay terminal charges for each intermediate stop d. the right to change consignees

C

What is the effect of tapering rates on facility location? a. pushes the raw materials sources toward the location b. pulls the facility toward the location c. pulls the location toward the source or the market d. makes the optimum location at the midpoint between raw material sources and the marketplace

B

When a blanket rate structure is used, which factor is eliminated as a locational determinant? a. inventory costs b. transportation rate c. raw material sources d. market sources

When to use cost analysis?

When you want to review opportunities to reduce cost and shifting focus towards cost management.

A

Which does not belong as a freight document? a. routing guide b. bill of lading c. freight bill d. freght claim form

A

Which does not belong in the recommendations of the Reverse Logistics Educational Council? a. manufacturing b. gate keeping c. zero returns d. information systems

B

Which is an advantage of the grid technique for facility location? a. it establishes the final determination of the best site b. computationally, it is relatively easy to use c. it is a dynamic approach with solution remaining optimum over many time periods d. topographic conditions are considered in choosing the optimum location

A

Which is correct regarding tapering rates? a. the principle is based on the carrier's ability to spread certain fixed cost over a greater number of miles b. transportation rates increase with distance directly in proportion to the distance c. in a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market d. Tapering rates are overexaggerated.

C

Which is correct regarding the transit privilege? a. application of the concept results in only an end point, either an origin or destination, being the optimum location b. allows the rates quoted to a particular city to also apply to various shipping points in the surrounding area c. the shipper is permitted to stop the shipment in transit and physically alter the product d. is normally available for nearly all locations and commodities

C

Which is not a mode of transportation? a. Short line carriers b. Direct air carrier c. 3PL d. Distribution pipeline

D

Which is not a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location? a. cross-docking b. use of third-party suppliers c. direct, plant-to-customer shipments d. decentralized facilities

A

Which is true regarding optimization models? a. Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution. b. Optimization models do not always provide an optimum solution, but are able to accommodate broad problem definitions. c. The Grid Technique is an approach to optimization modeling. d. Optimization models will guarantee increased profits.

B

Which is true regarding the facility location decision? a. the facility's impact on other functional areas should be considered, but it is not as important b. should be coordinated closely with the identification and implementation of key corporate and overall business strategies c. business conditions anticipated two or three years in the future have the greatest weight in selection d. generally, qualitative criteria are considered first

C

Which major locational determinant considers locating near the competition? a. labor climate b. quality of life c. company preference d. supplier networks

B

Which management area does not normally have transportation responsibility? a. marketing b. manufacturing c. procurement d. logistics

C

Which of the following does not belong in the list of the seven principles of supply chain management? a. Segment Customers Based on Service Needs b. Differentiate Products Closer to the Customer c. Develop an outsourcing strategy to maximize asset utilization d. Adopt Channel-Spanning Performance Measures

C

Which of the following is not part of how world class collaboration skills are developed? a. Define the benefits of collaboration b. Make the investment c. Determine how the benefits will be shared d. Dedicate "A" players

One type of demand fluctuation is caused by random variation. What is random variation?

a development that cannot normally be anticipated

The weighted moving average method assigns

a weight to each previous period

Air carriers were historically looked upon as a. emergency only carriers. b. having equipment shortages. C. a fringe participant. D. insignificant.

a. emergency only carriers.

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

Trade imbalances affect a. water carriers. b. motor carriers. c. railroads. d. pipelines.

a. water carriers

Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition?

accessibility

The SCOR model provides suggested metrics

across multiple dimensions for each of the five level one process

Exponential smoothing can use constants higher than 1, but not more than 5. t/f

false

Demand management includes -flows of products, -services -capital

all

Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are -quick response (QR) -vendor-managed inventory (VMI) -efficient consumer response (ECR)

all

The distances in today's global supply chains produce

all of the above

The distances in today's global supply chains produce

all of these -higher cost. -longer transit times. -more disruptions.

Managers have several options for software development and implementation. They include

all of these answers

Supply Chain software includes technologies that

all of these answers

The primary tradeoffs and relationships between resources include the following

all the above

Define cloud computing

allows companies to focus on core competence while allowing a third party expert to manage technical elements at a competitive price at its most basic, it is an extension of on demand computing. The next level enables economies through shared resources. At the highest allows the automation of hundreds of processes throughout the supply chain

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.

Touchpoint

any point of contact between the organization offering service or product and the customer

Customer service can be defined as

anything that touches the customer

WIP inventories.

are associated w manufacturing

WIP inventories

are associated with manufacturing

What are the five factors that should be considered when managing reverse flows?

avoidance - producing high quality products and developing processes to minimize or eliminate returns gatekeeping - checking and screening merchandise at the entry point into the reverse flows process to eliminate unnecessary returns or minimize handling reducing reverse cycle times - analyzing processes to enable and facilitate compression of time for returns to enhance value recapture information systems - developing effective information systems to improve product visibility, reduce uncertainty, and maximize economies of scale returns centers - developing optimum locations and facility layouts for returns centers to facilitate network flow asset recovery pricing - negotiating the best price for products being return and resold outsourcing zero returns financial management

Which management area in an organization does not normally have transportation responsibility? a. marketing b. manufacturing c. procurement d. logistics

b. manufacturing

The roles of the distribution center include ___________

balancing supply and demand, protecting uncertainty, and promoting transportation economies.

What are the three types of freight documentation? Discuss how each is used

bill of lading, freight bill, freight claim forms

Full collaboration is the dynamic combination of

both vertical and horizontal collaboration.

What are the four categories of scm software

business intelligence supply chain execution supply chain planning supply chain event managmenet

Horizontal collaboration refers to a relationship that is ___________ and/or ____________.

buyer to buyer and/or seller to seller

Order management system represents the principal means by which

buyers and sellers communicate info relating to individual orders of products

Railroads fall into a group called a. nonintegrated carriers. b. intermodal operators. c. natural monopolies. d. service challenged carriers.

c. natural monopolies.

Activity Based Costing

can be combined with customer segmentation

A downside of direct shipping is?

can create higher transportation changes

Desirability refers to

characteristics that influence modal selection

Vertical collaboration refers to

collaboration among buyers and sellers in the supply chain.

Challenges for the trucking industry include

competition

Transportation efficiency promotes____________ in the supply chain.

competition

Which is NOT part of dependability?

consistent pricing

Which department does not have any impact on inventory

corporate governance

The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions

customer demand

Many organizations are working more closely with

customers, suppliers, and various types of logistics suppliers.

Challenges for the trucking industry include a. lack of flexibility. b. limited equipment options. c. oversupply of qualified drivers. d. competition.

d. competition.

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

data synchronization tools

As Q decreases for EOQ, the cost per order:

decreases

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source

demand

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 is a closed loop supply chain

designed and managed to explicitly consider both forward and reverse flows activities in a supply chain

accessibility

determines whether a particular mode can physically perform the transport service required. Accessibility considers the mode's ability to reach origin and destination facilities and provide service over the specified route in question. The geographic limits of a mode's infrastructure or network and the operating scope that governmental regulatory agencies authorize also affect accessibility. Accessibility problems often eliminate a mode from consideration during the selection process. • Accessibility advantage: Given the road networks in most countries, motor carriage is more accessible to sellers and buyers than any other mode for domestic transportation. • Accessibility disadvantage: Air, rail, and water. All face accessibility limitations due to infrastructure issues. Still, all three modes serve virtually every major market thanks to intermodalism.

Inventory and the GDP grew by ______ amounts between 1994 and 2010.

different

Ordering cost refers to the expense of placing an order and

does not include the costs of the product

Air carriers were historically looked upon as

emergency only carriers

Four types of forecast error measures can be used. Which one of the following is not one of the four types? a. cumulative sum of forecast errors b. exponential smoothing for trends c. mean squared error d. mean absolute deviation

exponential smoothing for trends

In the event of a "stockout" one of the things that could happen is

extra shipping cost may be incurred

"Order to cash" and "replenishment cycle" are the same. t/f

false

15. Some companies like PepsiCo have chosen to move freight on company operated equipment, despite the fact that these private fleets cost more than for-hire carriers. t/f

false

A carrier is never excused from a claim. t.f

false

A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow. t/f

false

A stockout always results in a back order. t/f

false

Activity-based costing works well in warehouse-type environments but does not work for customer service applications. t/f

false

The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks t/f

false

The identification of the product/service package for each customer segment is one of the easier activities in the CRM process. t/f

false

The main strategy behind routing guides is to maintain very tight control of transportation costs. t/f

false

The railroads have not shared in the growth in transportation and so do not have any capacity issues. t/f

false

The reorder point depends on the orders in-house at that time. t/f

false

The responsibly for transportation management is typically not assigned to any one management discipline in an organization. t/f

false

There are four types of communications that exist between a buyer and a seller t/f

false

There are ten principal activities to the OTC model. t/f

false

integrated fulfillment is preferred to dedicated fulfillment. t/f

false

A

firm would investigate external distribution services if a. they want network flexabilty. b. they do not feel that they have the core competency to operate a facility. c. the product is too difficult to handle. d. they do not own a warehouse.

What is reverse flow?

goods and materials moving upstream in the supply chain traditionally ignored, but regulation and economics have increase attention on them

Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.

gross sales

Security legislation

has caused expense issues for carriers.

ERP systems

have information elements needed by SCIS applications.

what are the dif ways in which the actions of a customer affect cost

how they order how much they order what they order when they order and order

Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to

increase the velocity of cash back to the selling org.

What are the three major components of order management and customer service

influencing the order order execution customer service

The term supply chain information system (SCIS) is defined as

information systems that automate the flow of information between a firm and its suppliers.

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

What is "1/7 net 15"

invoice can be paid within 7 days with a 1% discount and must be paid in full within 15 days

reliability

is a critical issue. Many companies feel that transit time reliability is more important than speed as it impacts their ability to plan supply chain activities. Reliability refers to the consistency of the transit time provided by a transportation mode. It is easier to forecast inventory needs, schedule production, and determine safety stock levels if it is known with some certainty when goods will arrive. Reliability is measured by the statistical variation in transit time. Modal reliability is impacted by a variety of factors including equipment and labor availability, weather, traffic congestion, freight-handling requirements, number of terminal stops involved, and other factors. Internationally, reliability is impacted by distance, port congestion issues, security requirements, and border crossings, especially when the two countries do not have a proactive trade agreement. • Reliability advantage: Motor carriers and air carriers, as they are the most reliable (variability relevant to average transit time). • Reliability disadvantage: Water carriers and rail carriers. With capacity and congestion challenges, they have become less consistent. As a result, some customers have reduced their use of these modes when possible.

freight claims form

is a document that the transportation buyer files with the carrier to recoup monetary losses resulting from the carrier's failure to properly protect the freight. The shipper must file in writing freight claims with the carrier within a timeframe specified in the contract. Freight claims can be filed for visible damage or shortages that are detected when the product is received and inspected, for concealed losses that are not discovered until packages are opened, or for financial losses due to unreasonable delays. Carrier liability is limited if the shipper elected to send the goods under a released value in exchange for lower freight rates. Carriers are not liable for freight claims if the damage is attributable to some uncontrollable factor, such as a natural disaster, military attack, extreme fragility, etc

Exponential smoothing

is one of the most commonly used techniques

bill of lading

is probably the single most important transportation document. It originates the shipment, provides all the information the carrier needs to accomplish the move, stipulates the transportation contract terms including the scope of the carrier's liability for loss and damage, acts as a receipt for the goods the shipper tenders to the carrier, and in some cases shows certificate of title to the goods. The bill of lading is created by the shipper of the goods and is either negotiable or nonnegotiable. A straight bill of lading is nonnegotiable, and the carrier must deliver the goods only to the specific receiving organization and destination in return for freight charge payment. An order bill of lading is negotiable and serves as a title to the goods listed on the document. The owner of the goods has the right to transfer title to the goods to another party and reroute the shipment to a location other than the one listed on the bill of lading. Bills of lading also differ by type of move and whether the transportation is domestic or international.

customer relationship management

is the art an science of strategically positioning customers to improve the profitability of the organization and enhance its relationships with its customer base

freight bill

is the carrier's invoice for the fees the carrier charges to move a given shipment. The freight bill lists the shipment, origin and destination, consignee, items, total weight, and total charges. The freight bill differs from the bill of lading in that the freight bill sets forth the charges applicable to the shipment while the bill of lading sets forth the terms of the shipment and is a document of title.

transit time

is the total elapsed time that it takes to move goods from the point of origin to the destination (i.e., door to door). This includes the time required for pickup activities, terminal handling, linehaul movement, and customer delivery. Companies typically monitor average transit time for their service providers. Transit time is impacted by the speed of the mode and the ability of the mode to handle pickup and delivery responsibilities. • Transit time advantage: Air transportation is very fast for the linehaul move but loses some velocity as pickup and delivery activities must be handled by truck. Motor carriage is also relatively fast because it can provide more direct movement from origin to destination far more often than any other mode. • Transit time disadvantage: Rail, water, and pipeline are extremely slow with average transit speeds of 22 miles per hour, 5-9 miles per hour, and 3-4 miles per hour, respectively.

The term functional silos refers to:

lack of coordination between departments

Which management area in an organization does not normally have transportation responsibility?

manufactoring

What is activity based costing and how is it different from traditional costing

measures the cost and performance of activities, resources, and cost object. resources are assigned to activities then activities are assigned to cost objects based on their use. traditional cost accounting is well suited to situations where an output and an allocation process are highly correlated not very effective in situations where the output is not correlated with the allocation base

There are five primary modes of transportation and an intermodal transportation model

motor carriers, railroads, air carriers, water, pipeline

Railroads fall into a group called

natural monopolies

Railroads fall into a group called.

natural monopolies.

What are the four steps in supply chain technology implementation

needs assessment software selection technical issues asking the right questions

Shoudl an organization always have 100% service level?

no, because sometimes a large cash flow lost once you pass the break even point. Roi decreases after the break even point towards 100%

Define order cycle, replenishment cycle, and order to cash

order cycle- all activities that occur from when an order is receive until the product is received replenishment cycle - refers to the acquisition of additional inventory, one firms order cycle is another replenishment cycle order to cash- thirteen principles: d1.1-d1.7 represent info flows, d1.8-d1.12 represent product flows and d1.13 represent cash flow

what are the five measures of customer service performance

orders received on time orders received complete orders received damage free orders filled accurately orders billed accurately

The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix

place

Customer relationship management is the art and science of

positioning customers to improve the profitability of the org.

What is sustainability

practices value harmony between the industrial system and nature?

what are the common barriers to implementing a reverse flow program

priority relative to other issues and potential projects or programs in the organization inattention or lack of buy in from top level management in the org financial resources necessary for operations and asset infrastructure personnel resources required to develop and implement the reverse flows program adequacy of material and information systems to support the returns program

What are the steps in the information flow of an order

process inquiry and quote receive, enter, and validate order reserve inventory and determine delivery date consolidate orders plan and build loads route shipments select carriers and rate shipments

An organization selling its products FOB destination holds the title to the goods until

product reach the customers facility

The main strategy behind routing guides is to

promote supply chain excellence

The main strategy behind routing guides is to

promote supply chain excellence.

Identify the four classes of customers in the matrix and explain each

protect zone - those who fall into this are the most profitable danger zone - customers here are the least profitable and incur a loss build zone - these have a low cost to serve and build net sales value to help drive the customer into the protect cost engineer - have high net sales value and high cost to serve

draw the customer segmentation matrix

protect, cost engineer, build, danger zone Y-high, low (net sales value of customer) X - low, high (cost to serve)

Shortline Carriers

provide local & regional links between customers and national rail network. serve smaller markets, handel local delivery service, and facilitate the interline process.

what is stock-out? what are the ways in which a customer responds to a stock-out?

stockout occurs when quantities are not available. Respond: backorders, lost sales, lost customers

JIT is a _______ system

pull

Which of the below is not part of the seven Rs of logistics?

quality

What is RFID and its use

radio frequency identification - an automatic identification method that tags consist of a microchip and a printed antenna that can be packaged into many forms, such as a label, or imbedded in between the cardboard layers in a carton or product packaging.

what are the steps in the product flow of an order

receive product at warehouse pick product load vehicle, generate shipping documents, verify credit, and ship receive and verify product at customer site install product

what is one of the priorities of sustainability?

reducing the carbon footprint is a sustainability priority for logistics

Intermodal Transportation (advantages vs. disadvantages)

refers to the use of two or more carriers of different modes in the origin-to-destination movement of freight. greater accessibility, overall cost efficiency, facilitates global trade. recurring issue is congestion.

Four R's sustainability

reuse remanufacture refurbishing recycling

Which of these is not a freight document

routing guide

Which of these is not a freight document?

routing guide

What are the steps in the CRM process?

segment customer base, identify service/package, then measure service and improve

what are the seven principles of supply chain management

segment customer based on needs customize logistics network listen to market signal and plan accordingly differentiate products closer to customers source strategically develop supply chain technology strategy adopt channel - spanning measures

The fixed order interval EOQ model is best used for SKUs with

stable demand

The fixed order interval EQQ model is best used for SKUs with

stable demand

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

Approximately two-thirds of 3PL customers think their providers supply

tactical or operational services.

The term replenishment cycle refers to

the acquisition of additional inventory

Dependent demand relates to

the amount of good requested

Those customers who are in the "Danger Zone" segment are

the least profitable

what is reverse logistics

the process of moving or transporting goods from their final destination for the purpose of caputirng value or for porper disposal

How does the variance in the order cycle affect costs

time and variability affects not only the customers satisfaction but also their inventories which directly affects cost.

"Order to cash" and "order cycle" are the same. t/f

true

5. Motor carrier cost is highly variable. t/f

true

A bill of lading can be either straight or order. t/f

true

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory. t/f

true

A key requirement for service quality monitoring is information. t/f

true

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply. t/f

true

A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute. t/f

true

A weighted moving average assigns higher weights to more recent periods. t/f

true

Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast. t/f

true

All modes of transportation provide the same basic service. t/f

true

An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs. t/f

true

Capital cost is also called interest or opportunity cost. t/f

true

Customer service is anything that touches the customer. t/f

true

Customer service is of equal importance to both logistics and marketing. t/f

true

Demand management might be defined as focused efforts to estimate and manage customers' demand, with the intention of using this information to shape operating decisions t/f

true

Dependent demand is directly influenced by independent demand. t/f

true

Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers based on the specific costs of servicing a customer's orders relative to how, how much, what, and when a customer orders. t/f

true

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer. t/f

true

In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels. t/f

true

JIT, MRP, MRP II, and DRP all incorporate some version of the basic EOQ model into their philosophies. t/f

true

MRP has been known for some time but lacked interest until recently. t/f

true

Many companies can make a case for using a formal logistics organization to help resolve inventory objective conflicts. t/f

true

Most organizations would not operate under conditions of certainty for a variety of reasons. t/f

true

Nonintegrated air carriers do not supply door-to-door service. t/f

true

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself. t/f

true

Outsourcing transportation is a "buy" decision. t/f

true

Pipeline costs are predominantly fixed. t/f

true

There are five logistics performance metrics from the buyer's point of view. t/f

true

While there are four types of forecast error measures that can be used, none are foolproof. t/f

true

With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability. t/f

true

While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on

variability or consistency of this process

Inventory as an asset on the balance sheet and a __________ on the income statement.

variable expense

Inventory as an asset on the balance sheet and a ____________ on the income statement.

variable expense

Perpetual inventory systems are required for ant EOQ model having _________ demand while periodic inventory systems are used for EOQ models having _____ demand

variable, constant

What are the challenges posed by information technology

viewed as a solution rather than a facilitating tool people do not understand or use it properly scm practices not changed to match new technological capability patchwork quilt of technologies poor planning and operation

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.

visibility

what differentiating capabilities should supply chain technology provide?

visibility tools provide seamless flow of timely important info exception management to detect problems and alert organizations enabling rapid corrective action automated decision making are in the future but will take input from exception management systems and develop the optimal response

what is the most frequent application of scm software

warehouse manamgement system (WMS)

Trade imbalances affect

water carriers

Terms of sale establish

when ownership and title of the goods passes from seller to buyer.