Fundamentals of Logistics Final Exam

Which of the following is not a political restriction on international trade?

All of the answers are political restrictions

____ refers to building up a variety of different products for resale to particular customers.

Assorting

With respect to supply chains, relevancy focuses on an organization's ability to respond to changes in demand with respect to volume and variety.

False

Which of the following is not a characteristic of public warehousing?

Good for companies dealing with large volumes of inventory

Which of the following is not a cultural factor that can influence international logistics?

Population

A ____ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.

Shipper's mark

Warehousing and ____ are substitutes for each other.

Transportation

Failure to comply with labeling guidelines can result in surcharges, administrative fees, or penalty charges

True

It is possible for organizations to use only one customer service metric to measure customer service.

True

Land bridge services involve the use of surface transportation—generally rail transportation—between an origin and destination port.

True

Less-than-truckload shipments range from about 150 to 10,000 pounds

True

Plastic packaging tends to be cheaper, more versatile, and more consumer-friendly than paper packaging.

True

Satisfactory service recovery tends to increase a customer's willingness to recommend the offending organization; unsatisfactory service recovery magnifies the initial failure.

True

The U.S. railroad industry is dominated by four freight carriers

True

The attractiveness of ERP systems comes from their potential for lower costs as well as increased productivity and customer satisfaction.

True

The convenience component of customer service focuses on the ease of doing business with a seller.

True

The customer service metrics that are chosen should be relevant and important from the customer's perspective.

True

The major advantage of the unit load is that it enables mechanical devices to be substituted for manual labor.

True

The nature of the product can affect the level of customer service that should be offered.

True

The physical characteristics of some goods change while they are moving in the logistics channel.

True

The primary advantage for motor carriers is flexibility (the ability to deliver the product to the customer).

True

The primary advantage of simulation is that it enables a firm to test the feasibility of proposed changes at relatively little expense.

True

The worldwide public market for cloud computing grew nearly 20 percent between 2011 and 2012.

True

Transportation companies that have implemented global positioning systems have reported increased worker productivity, reduced operating costs, and improved customer relations.

True

Transportation refers to the actual, physical movement of goods and people between two points.

True

When new products or new packaging techniques are about to be introduced, it is somewhat advisable to have the packages pretested.

True

All are characteristics of private warehousing, except ____.

feasible when demand patterns are irregular

Transit time reliability is the most important factor that shippers tend to use when selecting carriers.

False

U.S. freight railroads currently allow 24 hours of free time for unloading rail cars and 48 hours of free time for loading rail cars.

False

Volume refers to how heavy a product is in relation to its size.

False

With respect to net profit margin, the most relevant categories for logistics managers to consider are sales, costs of goods sold, and asset turnover.

False

A locavore strategy focuses on hiring local workers.

False

A process strategy refers to management of logistics activities across business units with a focus on reducing complexity for customers.

False

A pure material is one that is totally water soluble.

False

A shipper's letter of instruction contains relevant export transaction data such as the transportation mode(s), transaction participants, and description of what is being exported.

False

Actual senior management commitment to supply chain management occurs in one of every two organizations.

False

An order bill of lading specifies the consignee.

False

Coopetition refers to cooperative relationships between members of a supply chain to enhance the overall business performance of all parties.

False

Depending on the industry and product type, reverse logistics costs as a percentage of revenues can range between 2 and 4 percent.

False

Enhanced communications across organizations in a supply chain is only dependent on the technological capabilities of the organizations

False

Expediting refers to determining a shipment's location during the course of its move.

False

Intermodal competition refers to the number of carriers within a particular mode of transportation.

False

Right-to-work laws mean that every person who wants a job is guaranteed a job.

False

Shipping conferences refer to annual meetings of large international shippers.

False

Small shipments refer to those that can be handled relatively expeditiously and inexpensively by a small package carrier.

False

Strategy at a business unit level is primarily focused on the types of businesses in which the company should compete and the way the company should be managed.

False

The European Union's expansion into Central and Eastern European countries has seen Hungary become a favored distribution site because of its relatively central geographic location.

False

The balance sheet reflects the assets, liabilities, and costs of goods sold at a given point in time.

False

The two prominent supply chain management frameworks are the Supply Chain Operations Reference (SCOR) model and the Process Classification Framework (PCF).

False

Throughput refers to ____.

amount of product entering and leaving a facility in a given time period