IDIS 343 Quiz #1-2

Which of the following is not a geographic product pricing method?

F.o.b. pricing Zone pricing *Quantity discounts Freight Equalization

A Supply-to-Stock strategy (Efficient Supply Chain) consists of the following characteristics: excess capacity, quick changeovers, short lead times, flexible processing, premium transportation, and single order processing. T/F

False

A company will always be able to increase sales by continuing to increase logistical customer service. T/F

False

A lumpy demand has trend and seasonal elements to it. T/F

False

Buyer surveys are the best way to gather customer service information because they always give unbiased and reliable feedback. T/F

False

Collaborative forecasting is best to use when the demand is predictable and certain because multiple participants are the best way to be confident that the forecast error is reduced. T/F

False

Furniture is an example of a convenience good. T/F

False

In order to maximize your return on logistics assets you take the difference from your costs and sales and divide that by your total assets. T/F

False

Independent Demand is derived from the requirements specified for another product. T/F

False

Logistics is used in several diverse areas but was first applied in manufacturing. T/F

False

The Physical Distribution Channel refers to the time and space gap between a firm's immediate material sources and its processing points. T/F

False

The objectives of logistics strategy are to minimize cost, maximize investment, and to maximize customer service. T/F

False

The two largest cost categories in logistics systems are overhead and purchasing. T/F

False

The two largest cost categories in logistics systems are transportation and inventory but are never used as trade offs for one another. T/F

False

Transportation and Inventory are the two largest cost categories in logistics while administration and Inventory cost have the most frequent trade-off in logistics. T/F

False

When choosing an efficient supply chain strategy, a company would choose Supply-to-Order? T/F

False

When talking about the nature of a product, industrial supplies are considered to be frequently bought items that are used directly in manufacturing T/F

False

Logistics strategy consists of three objectives: cost reduction, capital growth, and service improvement. T/F

False *Capital Reduction

Which of the following topics do customer service receive the most service complaints?

Late Delivery

What is the most important common service complaint and service element?

Late delivery Product or Quality mistakes

Methods that use judgment, intuition, surveys, or comparative techniques to produce estimates about the future are:

Qualitative methods

The Product Cycle time is the time elapsed when a customer order, purchase order, or service request is placed by a customer and when it is received by that customer. T/F

True

The extended supply chain refers to those members of the supply channel beyond the firm's immediate suppliers or customers. T/F

True

The main purpose of Logistics is to get the right goods to the right place at the designated time in good condition at the lowest cost and highest return on investment. T/F

True

The most important service element is speed of delivery and most common customer complaint is late delivery. T/F

True

In a generalized logistics system with Trade-offs when determining a balance between inventory cost and transportation cost with cost on the Y axis and customer service on the X axis the lowest total cost is at what point on the graph.

Where inventory cost and transportation cost intersect

A new version of an MP3 player would be classified as a/an ____________ product and therefore would use a _____________ supply chain?

unpredictable, supply-to-order

Which of the following is NOT a category of customer goods:

*manufactured Convenience Specialty Shopping

According to the return on logistics assets equation (ROLA), which of the following are correct?

A. as assets decrease, ROLA increases C. as costs decrease, ROLA increases

Which of the following explains the value packaging?

A. facilitates storage and handling B. provides product protection C. promotes better utilization of transport equipment *D. All of the above

In the relationship among average inventory level, inventory carrying cost, lost sales cost and total cost.

A. the total cost must always be higher than inventory carrying cost & lost sales C. as inventory carrying cost increases, lost sales decreases

Which of the following is NOT considered as a part of the Order Cycle Time for a laptop purchased via Amazon.com? A. Transportation B. Product Development C. Order Transmission D. All of the above

B. Product Development

Which of the following is not a level of logistical planning? A. Strategic B. Situational C. Tactical D. Operational

B. Situational

All of the following are one of the six concepts for logistics strategy formulation except: A. Total Cost Concept B. Differential Distribution C. Cost Cutting D. Postponement

C. Cost Cutting

Customer service transaction elements include all of the following, EXCEPT: A. Ability to back-order B. Time C. Ease of theft D. System Accuracy

C. Ease of theft

Logistics is the process of all the following EXCEPT: A. Controlling B. Implementing C. Marketing D. Planning

C. Marketing

Staple food products fall under which of the following Supply Chain Strategies?

Efficient supply chain with predictable demand.

Order filling requires: A. Scheduling delivery B. Shipping Document C. Product Retrieval, production, or purchase D. All of the above

D. All of the above

Which of the following is a one of the six concepts for Logistics Strategy Formulation? A. Mixed Strategy B. Total Cost concept C. Postponement D. All of the above

D. All of the above

Which of the following is an objective of the logistics strategy? A. Minimizing cost B. Minimizing investment C. Maximizing customer service D. All of the above

D. All of the above

During which phase of the product life cycle would you more likely use a responsive supply chain?

Introduction

____is the time elapsed between when a customer purchase order is placed by a customer and when it is received by that customer.

Order Cycle Time

Which is NOT one of the most important customer Service elements?

Order Fill Rate On-time delivery Accurate documentation *Order Constraints

Business logistics splits into 2 categories. Which of the following are those two categories?

Physical supply & Physical distribution

What are the elements of customer service?

Price Product quality Service *All of the above

A rare Leonardo Da Vinci painting is an example of a:

Specialty good

_________ encompasses all activities associated with the flow and transformation of goods from the raw materials stage, through to the end user, as well as the associated information flows.

The Supply Chain

What is a primary key activity/process?

Transportation

A midrange forecast horizon is normally 1 to 3 years. T/F

True

A supply-to-stock strategy is one where the supply channel is set up for maximum efficiency. T/F

True

Lumpy demand is due to a low overall volume and a high degree of uncertainty. T/F

True

More than any other factor, the level of logistics customer service provided dramatically affects system design. T/F

True

Optimum customer service is the point where incremental profit contribution equals marginal cost. T/F

True

Setting customer service goals are a primary key activity of supply chain management. T/F

True

Technical service is part of the pre-transaction section of customer service. T/F

True

The supply chain encompasses all activities associated with the flow and transformation of goods from:

the raw materials to the end user