Chapter 2 International Supply Chain Management

"Time-defined" deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable. T/F

False

Insurance issues in international logistics are thankfully similar in complexity to insurance issues in domestic logistics. T/F

False

International logistics includes activities that are not part of domestic logistics. T/F

False

Inventory reduction was a major goal of companies in the 1980s; this change was due to the increasing costs of oil and of products manufactured with oil. T/F

False

Logistics cost ( transportation and inventory cost) represent about 15 percent of the United States gross domestic product (GDP). T/F

False

MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the time that goods spend in transit). T/F

False

The globalization of markets is a recent phenomenon. T/F

False

The modern term "logistics" is based upon a French word meaning "military train." T/F

False

Which of the following group of countries is more likely to lag in terms of green practices, according to the IBM study mentioned in the text? a. North America d. All are at about the same level b. Western Europe e. None of the above c. Asia Pacific

a. North America

Another name for sea-going containers is a. boxes. b. cans. c. tubs. d. tins. e. None of the above

a. boxes.

The city of Curitiba, in Brazil, solved two problems at once; its recycling efforts have reduced pollution and landfill usage, while employing very-low-income residents. T/F

True

The cost of air cargo shipments decreased after the deregulation of the 1980s. T/F

True

The country of Germany has implemented a secondary refuse collection system, specifically targeted at packaging materials, that is funded entirely by industry. T/F

True

The person responsible for the creation of containers in 1956 was named Malcom McLean. T/F

True

The single most important development in international ocean shipping was the creation of containers. T/F

True

Transportation decisions are more complicated in international logistics than they are in domestic logistics. T/F

True

The costs of domestic logistics (transportation and inventory) represent approximately ____________________ of the GDP of the United States.

10 percent

The costs of international logistics are higher than the costs of domestic logistics. They are estimated as ____________________ of the total value of international trade.

15 percent

"Reverse logistics" deals with the activities involved in the return of products to the manufacturer, including the return of used packaging. T/F

True

"Supply chain management" is now considered to include not only the management of all of the activities that are part of "logistics," but also the management of the relationships of a company with its suppliers and customers. T/F

True

According to the authors, "supply chain management" includes both domestic and international logistics activities; there is no practical way of distinguishing between domestic supply chain management and international supply chain management. T/F

True

Battaglia sees logistics as the merger of materials management and physical distribution, and supply chain management as the merger of logistics with marketing, sales, information technology, and, most importantly, strategic planning. T/F

True

Customer service became the primary focus of logistics in the 2000s. T/F

True

Early logisticians were international traders, and, although they used different techniques andmeans of transportation, they were concerned with the same issues that present-day logisticians are concerned about. T/F

True

International logistics costs (transportation and inventory costs) represent about 15 percent of the total word-wide volume of trade. T/F

True

Logistics cost have generally steadily declined over the past 50 years, when expressed as a percentage of the GDP of the United States. T/F

True

Logistics is often defined as the activities that deal with the physical aspects of the movement of goods. T/F

True

MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their inventory levels. T/F

True

North American firms are lagging their European counterparts in the implementation of "green practices" in manufacturing and other supply chain activities. T/F

True

In the 1980s, companies started to manage their inventories much more closely than they had in the 1960s and 1970s. This was due to an increase in a. interest rates. b. the value of inventories in general. c. the value of the goods held in inventory d. the creation of just-in-time inventory management systems. e. None of the above

a. interest rates

Which of the following is an emerging element of international logistics, according to the authors, although it is fully part of domestic logistics, according to the CSCMP? a. reverse logistics. d. the management of paperwork b. the management of transportation. e. None of the above c. the management of inventories.

a. reverse logistics.

The individuals who are handling goods in the ports, loading and unloading merchandise, are called a. stevedores. d. julinators. b. marksmen. e. None of the above c. mercadores.

a. stevedores.

Who was the person who popularized the idea of sea-going containers that could be loaded directly onto a ship, a truck, or a railroad car? a. Peter Maersk b. Malcom McLean c. Joseph Battaglia d. Hapag Lloyd e. None of the above

b. Malcom McLean

A German corporation is involved in the Grüne Punkt program and recycles its final consumer packaging after the consumer has used the product. How are these types of activities called? a. cycling logistics d. return logistics b. reverse logistics e. None of the above c. recycling logistics

b. reverse logistics

The increased usage of air transport for international trade has had which consequence? a. decreased shipping costs d. increased shipping delays b. increased insurance claims e. All of the above c. increased probability of a company being selected as a supplier, by reducing delivery times

c. increased probability of a company being selected as a supplier, by reducing delivery times

Which of the following is NOT among the challenges of international logistics? a. infrastructure differences d. paperwork requirements b. insurance complexities e. None of the above c. superstructure differences

c. superstructure differences

It is generally accepted that a. logistics management encompasses activities that are distinct and separate from the activities included in supply chain management. d. some of the activities of logistics management and some of the activities of supply chain management are similar, but both include distinct and separate activities. b. logistics management encompasses activities that are broader than those of supply chain management. e. None of the above c. supply chain management encompasses activities that are broader than those of logistics management.

c. supply chain management encompasses activities that are broader than those of logistics management.

International logistics involves activities that are more ____________________ than the activities of domestic logistics.

complex, difficult

Logisticians' concerns have shifted from an emphasis on "slow, reliable deliveries," to one on "speed" and ____________________.

consumer satisfaction

The most significant change in the past fifty years in ocean transportation was the creation of ____________________ by Malcom McLean

containers

Some companies are implementing a reverse logistics program in which they design products so that they can be used or remanufactured again and again. Such a program is called a "cradle to ____________________" design.

cradle

DRP (Distribution Requirements Planning) is a system that allows manufacturers, wholesalers, and retailers of consumer products to manage their inventory "just-in-time:" DPR works as a a. "draw" system. d. "pull" system. b. "push" system. e. None of the above c. "elastic" system.

d. "pull" system.

The definition of "international supply chain management" is the same as the definition of "supply chain management," except that it makes explicit the fact that SCM a. is global. d. All of the above b. is international. e. None of the above c. includes international activities.

d. All of the above

Which one was NOT one of the characteristics of the "early days" of logistics? a. an emphasis on making sure that the goods arrived in good condition b. an emphasis on low-cost transportation c. long transit time d. an emphasis on customer satisfaction e. None of the above

d. an emphasis on customer satisfaction

It is not unusual for companies shipping to large manufacturers and retail chains to be penalized financially (not receiving the full invoice amount) for not a. shipping the correct goods. d. delivering the goods on the day and at the time promised. b. shipping the goods in the right quantity. e. None of the above c. shipping the entire order at once.

d. delivering the goods on the day and at the time promised.

The change in government policies that allowed FedEx and other air carriers to purchase larger aircrafts and compete with other airlines was called ____________________.

deregulation

Companies increasingly are designing products so that they can gain a competitive advantage through reverse logistics. Returned products are a. refurbished for resale in secondary markets. d. discarded. b. reused (packaging or containers). e. All of the above c. remanufactured (restored to their original performance standards).

e. All of the above

The fact that there are different languages, cultures, currencies, and laws in foreign countries illustrates the idea that the international logistician operates in a more challenging ____________________.

environment

Logistics management encompasses ____________________ activities than does supply chain management.

fewer, less

Most firms either purchase goods from abroad or sell goods abroad. If they do not, their suppliers and customers do. This situation illustrates that supply chain management is inherently ____________________.

global

Manufacturers have adopted MRP systems so that they can reduce their inventory and manufacture ____________________.

just-in-time

The people whose responsibilities include loading and unloading ships are called ____________________.

longshoremen

The fact that there is a greater number of intermediaries in international logistics (banks, insurance companies, Customs, and so on) also makes that there is an abundance of ____________________.

paperwork, paper requirements

Caterpillar operates 14 plants worldwide where it disassembles used heavy equipment received from its customers, with the goal of ____________________ the machines.

remanufacturing

Reverse logistics activities are similar to the traditional activities of logistics, but occur after the product has been ____________________.

sold/consumed