Final Exam
12. When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events, like birthdays and anniversaries, this is referred to as: a. Event-based marketing b. Segmented selling c. Personal holiday marketing d. Extreme segmentation marketing
A
13. Which of the following best describes the five S's? a. These were originally Japanese words relating to industrial housekeeping b. Five ways to reduce inventories on the shop floor c. These are five different kinds of manufacturing layouts d. Refer to methods for reducing setup times
A
16. According to the text, currently the three largest private warehouse operators in North America are: a. United Parcel Service, Wal-Mart and Sears Holding Corp. b. United Parcel Service, Target and U.S. Army c. Target, Microsoft and U.S. Army d. Wal-Mart, Ford Motor Corp. and U.S. Army
A
16. According to the text, in logistics, a "perfect order" occurs when: a. The Seven R Rule is satisfied b. A customer is successfully cross-selled c. Customer churn does not occur d. Clickstream is minimized
A
20. Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a: a. Kanban System b. Semaphore System c. Keiretsu Network d. TQM Network
A
11. The first major transportation regulation in the U.S. was which of the following: a. Interstate Commerce Act b. Motor Carrier Act c. Granger Laws d. Interstate Initiation Act
C
3. Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher. a. Offshore factory b. Server factory c. Source factory d. Outpost factory
A
4. Which of the following types of warehouses takes a large number of LTL shipments and repackages them in TL or CL quantities to a manufacturer or user-facility located in another area or region? a. Consolidation warehouse b. Private warehouse c. Breakbulk warehouse d. Public warehouse
A
5. Companies work very hard to reduce the number of their present customers which never return. This customer defection is often referred to as: a. Customer churn b. Clickstream defection c. Balking d. Revenue Exodus
A
6. What is the abbreviation for a truck trailer which is placed on a flat railcar that would then be pulled by a train engine? a. TOFC b. COFC c. NVOCC d. TTFC
A
10. The element of a CRM program involved with the use of data-mining software and customer behavior analytics is: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination
B
11. The element of a CRM program in which a customer's lifetime value is calculated is referred to as: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination
B
12. Some companies import components, use them in the production of their end items, and ultimately export them to other countries. If a company wanted to import the components duty-free, use those components in the production of their end items, and then export them to other countries, they would most likely utilize a(n): a. Duty-free Territory b. Foreign Trade Zone c. International Cross Docking Zone d. International Processing Center
B
12. Successful supply chains evolve through stages; the following stage is characterized by an emphasis on cost reduction: a. Internally Focused b. Functional Integration c. Internal Integration d. External Integration
B
While the philosophy of Six Sigma means different things to different people and is practiced differently in different companies, according to the textbook, two of the more important and agreed upon elements of Six Sigma are a. Minimizing inventories and increasing material flow b. Focusing on the customer and workforce involvement c. Rewarding employees and keeping defect rates below 2 percent d. Minimizing inventories and keeping defect rates below 1 percent
B
18. Which of the following customer service elements can be classified as examples of post-transaction elements? a. Salesperson politeness b. Customer complaint resolution c. Customer service policies d. The company's choice of organizational structure
B
10. According to the text, FOB destination pricing is typically preferred for all of the following EXCEPT: a. High-value shipments b. Buyer has little transportation expertise c. Buyer is purchasing a reoccurring order d. Small shipments
C
10. Which of the following regional trade agreements is paired with the appropriate region of the world? a. NAFTA Southeast Asian Nations b. COMESA United States, Canada, and Mexico c. MERCOSUR Argentina, Brazil, Paraguay, and Uruguay d. EU Middle East nations, not including Israel
C
11. Successful supply chains evolve through stages; the internally focused stage is characterized by all of the following EXCEPT: a. Functional silos b. Top-down management c. Long-term planning d. Internal measures used to monitor performance
C
12. Which of the following would be considered an act of deregulation? a. Reed Bullwinkle act legalized rate bureaus or conferences b. Granger law Established maximum rates, prohibited discrimination, and forbade mergers for railroads. c. Trucking Industry Regulatory Reform Act Motor carriers freed from filing rates with the Interstate Commerce Commission d. Freight Forwarders Act Allowed Interstate Commerce Commission control over freight forwarders; controlled entry, rates, and services.
C
15. Certain states in the United States have laws that secure the rights of employees to decide for themselves whether or not to join or financially support a labor union. These laws are called: a. Employee freedom acts b. Free trade laws c. Right-to-work laws d. Sanctioned union acts
C
16. All of the following are included in the seven wastes EXCEPT: a. Overproducing b. Overprocessing c. Overspending d. Waiting
C
18. Which of the following is NOT consistent with the lean philosophy? a. Cross-training employees to increase processing flexibility b. Developing a culture of continuous improvement within the organization c. Increasing batch size to take advantage of economies of scale d. Positioning WIP inventories near each processing center
C
2. The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept: a. Efficient Consumer Response b. Six Sigma c. Just-in-Time d. Cross Docking
C
23. According to the text, the ability to satisfy customer expectations can be referred to simply as: a. Reliability b. Lean Six Sigma c. Quality d. Durability
C
10. Lean production emphasizes all of the following EXCEPT: a. Continuous improvement b. Reduction of waste c. Synchronization of material flows d. Large batch sizes
D
11. The World Economic Forum creates International Competitive Rankings that are ranked on their Pillars of Competitiveness. How many Pillars of Competitiveness does the World Economic Forum have? a. Three b. Five c. Ten d. Twelve
D
13. Which of the following is a factor in choosing a location? a. Currency Stability b. Proximity to Markets c. Access to Suppliers d. All of these
D
Which of the following is an example of a person that would be considered to provide a Pure Service? a. Attorney/Lawyer b. Management Consultant c. Musical Entertainer d. All of these
D
Which of the following statements about consumer focused programs/initiatives is TRUE? a. Customers want additional support services and other offerings that add value to their initial product or service purchases b. CRM programs are simple in that they involve treating customers properly and making them feel valued c. CRM programs are complex in that they involve identifying all customers, their needs, and then creating a system geared towards completely satisfying the customer. d. All of these
D
18. A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model. SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.30 90 80 80 Currency Stability 0.40 80 85 80 Proximity to Market 0.30 80 80 80 a. Site A b. Site B c. Site C d. All sites are equally attractive
A
21. The following are all examples of lean warehousing capabilities EXCEPT: a. Decreased assembly operations b. Greater emphasis on crossdocking c. Reduced lot sizes and shipping quantities d. Increased automation
A
21. The following facility location technique uses fixed and variable costs to analyze potential locations: a. Break-even model b. Business cluster analysis model c. Weighted-factor rating model d. Mean absolute deviation model
A
23. When integrating new CRM modules, it is important that compatible CRM modules are linked to a(n): a. Data warehouse b. Data knowledge system c. Sales activity management system d. Sales force automation system
A
24. Since many companies do not have the knowledge, resources (money/people), or capability of building an infrastructure to support a CRM program, many companies have chosen to outsource this responsibility to a(n): a. ASP b. Customer Support Specialist Firm c. DSS d. Marketing Facilitator
A
24. When a number of interconnected companies and institutions from a particular field are located in a single geographic location, that location is referred to is a(n): a. Business cluster b. Metroplex c. Regional business center d. Industrial point
A
5. Modern supply chains simultaneously pursue the goals of high-quality, fast response, and low cost because customers nowadays want both high levels of quality and responsiveness. A key manufacturing philosophy that emphasizes waste elimination and minimizing inventories to expose problems is: a. Just-in-time b. Quick Response c. Efficient Consumer Response d. Total Quality Management
A
7. You work for a company that segments customers by demographic information markets specifically to those customers who are located in the Los Angeles area. This is an example of: a. Target marketing b. Cross-selling c. Geographic marketing d. Personalized customer communication
A
14. A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a: a. Sales activity management system b. Sales territory management system c. Lead management system d. Knowledge management system
B
14. The element of lean involving firms working with buyers and customers with the mutual goal of eliminating waste, improving speed, and improving quality is referred to as: a. Waste reduction b. Lean supply chain relationships c. Lean layouts d. Continuous improvement
B
15. The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as: a. Piggy backing b. Crossdocking c. Transshipping d. Customs Brokering
B
15. Which of the following is NOT one of the Seven Wastes? a. Excess inventories b. Environmental waste c. Waiting time d. Scrap and rework
B
17. Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility. LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $50,000 $10 Site B $20,000 $30 a. Site A is the desired location if the production rate is 1000 units per year b. The breakeven point for these two locations is 1500 units per year c. Site B is the desired location if the production rate is 2000 units per year d. The breakeven point for these two locations is 500 units per year
B
19. You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of: a. Customer churn b. Posttransaction customer service c. Customer management d. Pretransaction customer service
B
2. Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Segmenting customers c. Preserving a traditional sales force that communicates with the supply-chain via a traditional paper document/contract system d. All of these
B
2. Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers, minimize exchange risk, and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes. a. Offshore factory b. Server factory c. Source factory d. Outpost factory
B
20. All of the following are requirements for designing and implementing a successful CRM program EXCEPT: a. Support from the firm's top executive b. Knowledge of the tools available to aid in CRM c. Adherence to a static CRM program d. Continuous awareness of customers' changing requirements
B
23. Which of the following was NOT mentioned in the textbook as being one of the more popular logistics management software applications? a. Transportation management systems b. Freight management systems c. Warehouse management systems d. Returns management systems
B
24. Which of the following is similar to a travel agent for cargo since they provide services like documentation completion, special rate handling, and customs clearance, in addition to their consolidating of small shipments to fill entire truckloads? a. Transportation Broker b. Freight Forwarder c. Shippers' Association d. Integrated Logistics Service Provider
B
25. A company sells eggs in boxes with 12 cartons and 12 eggs in each carton, thus there are 144 eggs in each box. The organization wants to construct a P-chart to track the proportion of broken eggs in each sample. If the company used one box of eggs in each sample in the dataset, what would be the centerline, upper control limit(UCL), and lower control limit(LCL) for the appropriate P-chart? (Use z = 3.) Choose the closest answer. Sample Eggs Sample Eggs Sample Eggs 1 3 8 6 15 5 2 5 9 4 16 0 3 3 10 9 17 2 4 4 11 2 18 6 5 2 12 6 19 2 6 4 13 5 20 1 7 2 14 1 TOTAL 72 a. Centerline = 0.50, UCL = 0.625, LCL = 0.375 b. Centerline = 0.025, UCL = 0.64, LCL = 0 c. Centerline = 0.30, UCL = 0.70, LCL = 0 d. Centerline = 0.083, UCL = 0.152, LCL = 0.014
B
25. According to the textbook, which of the following statements is TRUE? a. CRM stands for customer resource management b. ASP stands for application service provider c. CRM stands for centralized resource management d. ASP stands for accelerated shipment process
B
25. The Bruntland Commission defines ____ as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. a. Lean manufacturing b. Sustainable development c. Six Sigma manufacturing d. Progressive design
B
3. Efficient Consumer Response was initially developed in the 1990's for the following industry: a. Fashion b. Grocery c. Small Electronics d. Automobile
B
3. What does LTL stand for in the transportation industry? a. Logistical Train-car Lift b. Less-Than-Truckload c. Large Truck Leasing d. Local Train Logistics carriers
B
4. According to the text, when the location of a factory is dictated by low production costs, fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n): a. Offshore factory b. Source factory c. Server factory d. Lead factory
B
6. Japanese manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called? a. Jidoka Networks b. Keiretsu Networks c. Kanban Networks d. Kaizen Networks
B
8. Real time location systems (RTLS) are used for the following type of transportation: a. Motor carriers b. Rail Carriers c. Air carriers d. Water carriers
B
8. Which company probably played the largest role in the development of the Toyota Production System? a. General Motors b. Ford c. Chrysler d. Boeing
B
8. Your company's marketing efforts allow customers to "opt-out" of receiving email advertisers. This is referred to as: a. Event-based marketing b. Relationship marketing c. Customer churn d. Customer preference marketing
B
9. Which of the following trade agreements was set up after WWII and originally consisted of six countries? a. Association of Southeast Asian Nations (ASEAN) b. European Union (EU) c. Association of African Markets (AAM) d. Southern Common Market (MERCOSUR)
B
Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination: a. Sourcing center b. Hub and spoke c. Air and ground d. LTL consolidation
B
20. According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as: a. Market positioned strategy b. Supply positioned strategy c. Product positioned strategy d. Intermediately positioned strategy
C
20. The following facility location technique uses quantitative and qualitative dimensions and is subject to interpretation and bias by the analyst: a. Break-even model b. Business cluster analysis model c. Weighted-factor rating model d. Mean absolute deviation model
C
21. Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a: a. Clickstream b. QR code c. Data warehouse d. Social media site
C
23. All of the following are considered components of variable costs EXCEPT: a. Labor b. Materials c. Property Taxes d. Utilities
C
25. Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all of the shipping arrangements and documentation preparation? a. Customs broker b. Foreign freight forwarder c. Trading company d. NVOCC
C
4. CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and or perhaps to investigate why they stopped purchasing in the first place. The CRM attribute is called: a. Customer profitability determination b. Customer base retention initiative c. Customer defection analysis d. Customer clickstream analysis
C
5. Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance? a. Air Carriers b. Rail Carriers c. Water Carriers d. Motor Carriers
C
5. Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers, the type of factory needed can be referred to as a(n): a. Offshore factory b. Source factory c. Server Factory d. Lead Factory
C
6. All of the following are required elements for the development of an effective CRM initiative EXCEPT: a. Segmenting customers b. Customer value determination c. Utilization of MRP d. Personalizing customer communications
C
7. Examples of regional trade agreements include all of the following EXCEPT: a. Association of Southeast Asian Nations (ASEAN) b. European Union (EU) c. Association of African Markets (AAM) d. Southern Common Market (MERCOSUR)
C
The supply chain management element that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements is also referred to as a. Operations b. Transportation planning c. Logistics d. Procurement
C
13. Which of the following is a method that organizations typically use in attempting to effectively manage the relationships between the organization and its customers at the customer service level? a. Reengineering and/or automating call centers based on past call center data b. Developing web sites that allow customers to access their personal accounts and/or information like hours of operation, store locations, and product information c. Utilizing CRM programs to administer personalized surveys based specific customer segments d. All of these
D
14. Which of the following would be considered a quality of life factor? a. Education b. Arts, culture, and recreation c. Community safety d. All of these
D
15. Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a: a. Sales activity management system b. Sales territory management system c. Lead management system d. Knowledge management system
D
16. Which of the following secures the right of employees to decide whether or not to join or financially support a union? a. Union shop laws b. Union planning forums c. Ethical union initiatives d. Right-to-work laws
D
17. Public warehouses can provide a wide range of services. Which of the following is NOT one of the services offered by public warehouses? a. Breakbulk b. Assembly c. Repackaging d. High security shipment
D
17. Which of the following customer service elements can be classified as examples of pre-transaction elements? a. Salesperson politeness and order processing capabilities b. Warranty repair capabilities and customer complaint resolution c. Product returns and information about the operation of the product purchased d. Customer service policies and the company's choice of organizational structure
D
17. Which of the following layouts is primarily designed to process parts, components, or jobs requiring the same or similar processing steps, saving duplication of equipment and labor: a. Work centers b. Production kanban c. Work-in-process d. Manufacturing Cells
D
18. Which of the following is NOT consistent with a decentralized warehousing system? a. Higher safety stocks required b. Shorter lead times c. Lower transportation fees d. Lower total operating costs
D
19. A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model. SCORES (Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.20 90 65 90 Currency Stability 0.50 80 90 80 Proximity to Market 0.30 80 80 80 a. Site A b. Site B c. Site C d. All sites are equally attractive
D
19. A furniture manufacturer presently owns a total of four warehouses in the following cities Sacramento, Phoenix, Cincinnati, and Atlanta. The average inventory levels for the four warehouses are 8000 units, 10,000 units, 10,000 units, and 8000 units, respectively. They plan on moving all of their inventory to one warehouse in Memphis. Using the square root rule, what will be the required average inventory level at the new central Memphis warehouse required to maintain the system's present 98% customer service level? (Choose the closest answer.) a. 9000 b. 18000 c. 20000 d. 24500
D
19. Calculate the inventory container size required given the following: Demand rate = 10 parts per hour, Safety stock required = 15% Number of containers = 14, Time to cycle through entire system = 6 hours a. 2 parts b. 3 parts c. 4 parts d. 5 parts
D
2. Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline over time. This phenomenon is called: a. Service Shrink b. Deming's Decline c. State Utility d. Baumol's Disease
D
2. Which of the following carriers typically transports goods for the company that owns the carrier, they are not subject to economic regulation, and since the fleets are rather large the cost of transport is very likely less than if the company had hired another company to provide the service? a. Common carrier b. Exempt Carrier c. Contract Carrier d. Private Carrier
D
21. Calculate the defects per million opportunities (DPMO) given the following: Blake, owner of Blakester's T-shirt Shoppe, keeps track of customer complaints. For each T-shirt sold, there are four possible complaints: T-shirt shrinks, poor quality, design wears off, and doesn't fit right. Each week, Blake calculates the rate of T-shirt "defects" per total T-shirts sold, and then uses this information to determine his company's DPMO. During the past week, his company sold 1200 T-shirts. His company received 22 customer shrinkage complaints, 16 poor quality complaints, 12 design wears off complaints, 8 doesn't fit right complaints. Calculate his firm's DPMO. a. 69,600 b. 0.193 c. 5.8 x 106 d. 12,083
D
22. A transportation intermediary used to consolidate large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates is referred to as: a. Consolidation forwarder b. Load broker c. Transportation broker d. Freight forwarder
D
22. According to the textbook, a performance measurement type for CRM would include: a. Customer loyalty b. Customer Satisfaction c. Average sales revenue per customer d. All of these
D
22. All of the following are considered components of fixed costs EXCEPT: a. Cost of land b. Equipment c. Insurance d. Utilities
D
22. Which of the following quality gurus believed that companies should strive for zero defects and that quality was, in a sense, free since quality improvement programs invariably paid for themselves? a. Juran b. Deming c. Baldrige d. Crosby
D
24. A company that produces 8 pound bags of rice gathered 5 samples of 6 bags each. The weights of each bags' contents are listed below. Bag Number Sample 1 2 3 4 5 6 1 7.98 8.34 8.02 7.94 8.44 7.68 2 8.33 8.22 8.08 8.51 8.41 8.28 3 7.89 7.77 7.91 8.04 8 7.89 4 8.24 8.18 7.83 8.05 7.9 8.16 5 7.87 8.13 7.92 7.99 8.1 7.81 What would you plot on the x-bar chart for sample 2? a. All of the following numbers: 8.33, 8.22, 8.08, 8.51, 8.41, 8.28 b. All of the following numbers: 8.34, 8.22, 7.77, 8.18, 8.13 c. Only 8.130 d. Only 8.305
D
3. The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of: a. Target marketing b. Segmented selling c. Clickstream selling d. Cross-selling
D
4. Lean thinking is a philosophy incorporating tools which seek to optimize: a. Human Resources b. Assets c. Productivity d. All of these
D
6. The type of factory which is the source of product and process innovation and competitive advantage for the entire organization is referred to as a(n): a. Offshore factory b. Source factory c. Server factory d. Lead factory
D
7. According to the textbook, the largest ocean containerships can carry how many twenty-foot containers? a. Between 3,000 and 5,000 b. Between 5,000 and 8,000 c. Between 8,000 and 10,000 d. Over 10,000
D
7. The following is a term that refers to error- or mistake proofing: a. Kaizen b. Muda c. Lean layouts d. Poka-yoke
D
8. Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of these
D
9. The use of quick response codes (QR Codes) to retrieve marketing information is a type of: a. Geographic marketing b. Target marketing c. Customer churn d. Mobile marketing
D
9. Which of the following are among the most important elements of the lean production philosophy? a. Quality inspections and a standardized product line b. Fully automated assembly lines and a large supplier base c. Large inventories and quality inspections d. Waste reduction and continuous improvement
D
9. Which of the following is NOT a characteristic of cost-of-service pricing? a. Prices are established based on fixed and variable costs of transportation b. Prices vary based on volume and distance c. Prices tend to rise as shipping distance increases d. Carriers price their services at the highest levels the markets will bear
D