Logistics Ch 8+
One estimate suggests that only approximately ____ percent of a facility's cubic capacity is actually occupied by product.
10
Truckload carriers focus on shipments of greater than ____ pounds.
10,000
According to the Occupational Safety and Health Administration, approximately ____ employees are killed each year while operating forklifts in warehousing facilities.
100
Turnover rates for expatriate workers current run between ____ percent.
20 and 40
What container size is often used to rank water ports and measure containership capacity?
20 foot container
Narrow aisles can store ____ to ____ percent more product than conventional width aisles.
20; 25
With respect to contract warehousing, ___ to ____ year contracts appear to allow sufficient time for the warehousing provider to learn the client's business while allowing the client some flexibility in case the agreement fails to produce acceptable results.
3;5
____ distinct international methods of payment exist.
4
____ is the most popular location for near-sourcing among companies that do business in North America.
Mexico
What is the time limitation within which a freight claim must be filed?
Nine months from delivery date
____ refers to materials used for the containment, protection, handling, delivery, and presentation of goods.
Packaging
____ is the most reliable form of transportation.
Pipeline
____ warehousing is owned by the firm using them.
Private
U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars.
48, 24
The Worker Adjustment and Retraining Notification (WARN) Act mandates that employers give ____ days' notice about plant closings and mass layoffs.
60
Approximately ____ of cross-border shipments move by water transportation.
60%
ABC analysis of inventory:
Recognizes that inventories are not of equal value to a firm
The cost of sending a shipment by air transportation from China to the United States can be ____ times more expensive than sending a shipment by water transportation between the two countries.
8-10
What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with the applicable terms and conditions of the particular transaction?
A letter of credit
____ involves bringing together similar stocks from different sources
Accumulating
____ and ____ refer to adjustments associated with the quantity of product.
Accumulating; allocating
____ refers to the net advantages which can be gained by a sharing of common locations by various enterprises.
Agglomeration
____ is generally the fastest form of transportation for shipments exceeding 600 miles.
Air
____ refers to building up a variety of different products for resale to particular customers.
Assorting
What do we call a system of accounts that records a country's international financial transactions?
Balance of payments
The economic order quantity (EOQ) deals with calculating the proper order size with respect to ____ costs and ____ costs.
Carrying; Ordering
What two countries account for approximately one-third of the world's population?
China and India
Substitute Products
Refer to products that customers view as being able to fill the same need or want as another product.
A locavore strategy:
Refers to purchasing locally grown or produced foods
What is considered to be the biggest drawback to public warehousing?
Lack of control by the user
___ refer to major ports where thousands of containers arrive and depart each week.
Load centers
___ plants, which are located just south of the U.S.-Mexican border, provide much needed jobs to Mexican workers and allow for low-cost, duty-free production so long as all the goods are exported from Mexico.
Maquiladora
Inventory
Refers to stock goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns
High levels of Inventory
Results in in High inventory carrying costs and low stockout costs
A ____ is used in areas in which dockworkers cannot read but need a method to keep documents and shipments together.
Shipper's mark
With respect to U.S. economic regulation, the ____ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers and some jurisdiction over motor carriers, domestic water transportation, and pipelines.
Surface Transportation Board
An invoice submitted by the carrier requesting to be paid is ____.
a freight bill
A(n) ____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service.
amodal shipper
Throughput refers to:
amount of product entering and leaving a facility in a given time period
A free trade zone refers to:
an area in which products can be stored, exhibited, or processed without being subjected to duties and quotas unless they enter the customs territory of the zone country
Right-to-work laws refer to a situation where:
an individual cannot be compelled to join a union as a condition of employment
A dry bulk material's ____ is important for determining the quantity that can be stored in a given location.
angle of repose
A "box-maker's certificate":
assures railroads and motor carriers that boxes are sufficiently sturdy to meet their handling requirements
____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
intermodal
From a business perspective, ____ taxes are analogous to the personal property taxes paid by individuals.
inventory
Which international logistics service provider is often confused with the international freight forwarder?
non-vessel operating common carrier
Less-than-truckload (LTL) carriers:
operate through a series of terminals
Integrated air carriers:
own all their vehicles as well as pick up and delivery facilities
The building blocks concept is associated with which logistics function?
packaging
What has been described as the "last frontier" of logistics savings opportunities?
packaging inefficiencies
Firms that specialize in carrying packages that weigh up to 150 pounds are called:
parcel carriers
One of the best pieces of advice with respect to the design of warehousing facilities is to ____.
use common sense
Labor force ____ are a key locational determinant as supply chains become more global in nature.
wage rates
A major drawback to metal and plastic pallets is their ____.
price
Demurrage charges are collected by railroads, ____, and ____.
water carriers, pipelines
Warehouses emphasize ____ and their primary purpose is to maximize____.
product storage; usage of available storage space
It is important that the materials handling equipment be aligned with an organization's objectives, customers, and ____.
products
Multiclient warehousing mixes attributes of ____ and ____ warehousing.
public; contract
Small shipments are defined as those that:
weigh more than 150 pounds but less than 500 pounds
Product density refers to a product's ____.
weight per volume
An order bill of lading is used:
when a shipment is started before the buyer is known
An expatriate refers to a person:
who is sent to work in other countries for extended periods of time
Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare the modes?
railroads
Distribution centers emphasize ____ and their primary purpose is to maximize____.
rapid movement of product; throughput
Which of the following is not an environmentally-friendly packaging strategy that firms might adopt?
reduce the amount of packing materials used use more environmentally-friendly packaging materials use reusable containers retain or support services that collect the used package and recycle it ALL OF THE ABOVE
The general trend in recent years has been for companies to do what with their distribution networks?
reduce the number of facilities
The primary advantage to land bridge service is ____.
reduced transit time
Complementary Items
refer to those that are used or distributed together.
The initial focus in facility location is on a____.
region
Cargo preference rules ____.
require a certain percentage of traffic to move on a nation's flag vessels
Each of the following is a shipping hazard that a package may be exposed to except ____.
retraction
____ can be defined as the process of determining how a shipment will be moved between origin and destination.
routing
An ____ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself.
export packer
There are ____________ modes of transportation.
five
The primary advantage for motor carriers is ____.
flexibility
Shippers' associations:
function in a manner similar to freight forwarders
The existence of transportation competition, whether intermodal or intramodal, tends to:
have both cost and service benefits to users
With respect to commodity flows, logisticians are especially interested in ____ and ____.
how much is being produced; where it is being shipped
Inventory flow diagrams illustrate that safety stock can prevent two problem areas, ____ and ____.
increased rate of demand; longer-than-normal replenishment
A key advantage of variable slot locations in a warehouse is:
increased space utilization
Warehousing and ____ are substitutes for each other.
transportation
Private transportation is most prevalent in the ____ industry.
trucking
A(n) ____ rate simplifies each of the three primary rate factors—product, weight, and distance.
Class
____ systems consider the reverse flow of products, their reuse, and the marketing and distribution of recovered products.
Closed-loop
With respect to density, a vessel loaded with ____ is most likely to cube out (cubic capacity is filled before reaching its weight capacity).
Coal
___ refers to a process where a product is received in a facility, occasionally married with product going to the same destination, and then shipped at the earliest time, without going into longer-term storage.
Cross-docking
The European Union's expansion into Central and Eastern European countries has resulted in Poland and ____ becoming favored distribution sites because of their relatively central location.
Czech Republic
____ refers to how heavy a product is in relation to its size.
Density
The U.S. ____ is the federal government body with primary responsibility for transportation safety regulation.
Department of Transportation
A materials safety data sheet (MSDS) is required for:
Each hazardous product to be stored in a facility
Short-sea shipping is widely accepted and practiced in ____.
Europe
Incoterms have traditionally been revised approximately ____.
Every 10 years
____ refers to rapidly moving a shipment through a carrier's system.
Expediting
____ act as the export sales department for a manufacturer.
Export management companies
In general, warehousing security can be enhanced by focusing on people, ____, and ____.
Facilities, processes
___ pounds is the approximate weight at which there is a noticeable increase in injuries, particularly back injuries, from manual handling.
Fifty (50)
Freight rates in the United States are often expressed in dollars or cents per:
Hundredweight
Concerning the EOQ model, if demand or annual usage increases by 10%, then the EOQ will:
Increase
The ____ has established six international pallet size standards.
International Standards Organization
One-Third
Inventory costs in the US in the 21 century represent approximately how much of total logistics costs?
Pipeline Stock
Inventory that is en route between various nodes in a logistics system
Speculative Stock
Inventory that is held for several reasons, to include seasonal demand, projected price increases, and potential shortages of product
Buffer Stock
Inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time
Base Stock
Inventory that is needed to satisfy normal demand during the course of an order cycle
Consular documents ____.
Involve obtaining permission from the importing country for the goods to enter
When one country's currency is weak relative to other currencies, ____.
It becomes more costly to import products, but exports often surge
____ are taxes that governments place on the importation of certain items.
Tariffs
Suppose that a particular item is Class 200 according to the National Motor Freight Classification. What is the relationship between this item's rate and the rate for an item in Class 100?
The Class 200 rate is higher than the Class 100 rate
Inventory Shrinkage
The fact that more items are recorded entering than leaving warehousing facilities
With FOB destination, freight prepaid:
The seller pays the freight charges, and also owns the goods in transit
How many countries in the world do not currently use the metric system of measurement?
Three
The prime rate of interest
Traditionally provided a convenient starting point when estimating the interest charges associated with maintaining inventory
_________ is the actual, physical movement of goods and people between two points.
Transportation
____ refers to the buying and controlling of transportation services by either a shipper or consignee.
Transportation management
Dead inventory (dead stock) refers to product for which there is no sales during a ____ month period.
Twelve
The Globally Harmonized System of Classification and Labeling of Chemicals (GHS) was developed by the:
United Nations
What is the largest transportation company (by revenues) in the United States?
United Parcel Service
Psychic Stock
Used to stimulate demand
Under ____, the size and timing of replenishment orders are the responsibility of the manufacturer.
Vendor-Managed Inventory
Warehousing labor safety practices in the United States are monitored by which federal government agency?
Warehousing Safety Administration Department of Commerce Food and Drug Administration Homeland Security NONE OF THE ABOVE
The Logistics Performance Index:
Was created in recognition of the importance of logistics in global trade
9; 24
What percents do Inventory carrying costs in the United States range between
Over 80% of customers view packaging as ____.
a major environmental issue
The basic unit in unit loading is:
a pallet
A "brownfield" is:
a property for which use and redevelopment is complicated by past use
All of the following are suggestions for dealing with dead stock (inventory), except ____.
aggressive marketing donate to charities make to order throw it away ALL OF THE ABOVE ARE SUGGESTIONS
Over the past quarter century, discussion of natural resources and facility location has increasingly factored in ____ considerations.
environmental
Under conditions of certainty, a reorder point is equal to:
average daily demand in units times the length of the replenishment cycle
The most important single transportation document is the:
bill of lading
Which of the following statements is false?
carriers may be reluctant to accept small shipments because they require a high degree of manual labor some carriers believe they lose money on small shipments consolidating small shipments into larger ones could result in poorer service to the final customer consolidating small shipments into larger ones likely results in higher inventory carrying costs ALL OF THE ABOVE
Shipping conferences refer to ____.
cartels of ocean vessel operators operating between certain trade areas
A ____ specifies the country (ies) in which a product is manufactured and can be required by governments for control purposes or by an exporter to verify the location of manufacture.
certificate of origin
A ____ is similar in nature to a domestic bill of lading and summarizes the entire transaction.
commercial invoice
A(n) ____ rate refers to a specific rate for every possible combination of product, weight, and distance.
commodity
Dimensional weight ____.
considers a shipment's density
Freight forwarders:
consolidate the shipments of several shippers
A unit load involves:
consolidation of several units into larger units to improve efficiency in handling and to reduce shipping costs
Which of following is not a possible quality of life consideration in facility location?
cost of living crime rate educational opportunities the weather All of the above are quality of life considerations
____ refers to the interaction between workers and workplace conditions.
ergonomics
As one builds higher, building costs____, while warehousing equipment costs tend to ____.
decrease; increase
Which of the following is not one of the three primary factors that transportation rates are based upon?
density
The center-of-gravity approach to location analysis minimizes:
distance to existing facilities
Inventory turnover can be calculated by:
dividing the cost of goods sold by average inventory
As a general rule, labeling requirements and enforcement tend to be more stringent in ____ countries than in ____ countries.
economically developed; economically developing
Which of the following is not a political restriction on international trade?
embargoes import quotas barring certain types of shipments ALL OF THE ABOVE
Which of the following is not a legal classification of carriers?
exempt contract common ALL OF THE ABOVE
A 3,047 meter (10,000 foot) runway is significant because it ____.
is generally viewed as adequate for accommodating existing wide body aircraft
A pure material:
is one that loses no weight in manufacturing and/or processing
A key advantage of fixed slot locations in a warehouse is:
knowledge of where specific products are located
Which of the following is not a characteristic of plastic packaging?
lack of versatility
The total cost of ownership is associated with which of the 10 materials handling principles?
life cycle cost principle
Which of the following is not one of the common causes of warehousing fires?
lightning strikes
A transportation broker:
looks to match a shipper's freight with a carrier to transport it
With respect to a commodity's freight classification, shippers tend to prefer a ____ classification number and carriers tend to prefer a ____ classification number.
lower, higher
What is dunnage?
material that is used to block and brace products inside carrier equipment
What do we call the short distance movement that usually takes place within the confines of a building such as a plant or DC and between a building and a transportation service provider:
materials handling
The major advantage of the unit load is
mechanical devices can be substituted for manual labor
Tradeoffs must be among space, labor, and ____ with respect to warehousing design
mechanization
Inland waterways should be dredged to a depth of ____ feet, which tends to be the minimum depth required for most barges.
nine
A ____ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred carriers, and a list of which carrier or carriers to use for shipments moving between two points.
routing guide
Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ____.
safety concerns
A ____ often serves as the basis for a company's official export statistics.
shipper's export declaration
The processing point for a weight-losing raw material:
should be near its source
The processing point for a weight-gaining raw material:
should be near the final market
Concerning the EOQ model, if the ordering costs increase by 10% and the product value increases by 10%, then the EOQ will:
stay unchanged
____ refers to how easy a commodity is to pack into a load.
stowability
Incoterms refer to:
terms of sale for international shipments
Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ____.
the ability to offer shippers a broader service network
Which of the following situations is likely the most damaging (costly) with respect to a stockout?
the customer goes to a competitor for this purchase
Rail gauge refers to ____.
the distance between the inner sides of two parallel rail tracks
The EOQ determines:
the point at which carrying costs equal ordering costs
How does the weighted center-of-gravity approach to location analysis differ from the center-of-gravity approach to location analysis?
the weighted approach considers shipment volume
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive:
the wholesale price, plus freight if previously paid
____ refers to determining a shipment's location during the course of its move.
tracking
In general terms, ____ accounts for about 6% of U.S. Gross Domestic Product.
transportation
