Logistics exam 3

Manufacturing flow management is the key process that helps balance customer demand and the firm's output capabilities.

False

A primary advantage for motor carriers is the weather.

False

A private carrier is subject to economic regulation and typically transports goods for the company owning the carrier.

False

A small LTL shipment that originates on a truck in San Francisco and is moved from San Francisco to Las Vegas where it is unloaded and put onto another truck for final shipment to Phoenix would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

False

According to the textbook, there are four key supply chain business processes: Purchasing, Manufacturing, Distribution, and Returns.

False

Air Carriers compete most favorably when the distance is long and the shipments are heavy or bulky.

False

An important initial step in the supply chain integration model is for a firm to extend process integration to 2nd tier supply chain partners and beyond

False

Foreign-trade zones (FTZs) are secure sites within the European Union under the supervision of the EU Customs and Tarriffs.

False

Generally speaking, motor carriers are less expensive than rail carriers to haul goods.

False

In a 2016 survey of 3PL usage, 70 percent of shippers and 85 percent of 3PL services said the use of 3PLs contributed to higher logistics costs.

False

One of the key supply chain business processes is order fulfillment, which seeks to forecast demand and coordinate purchasing and distribution in an effort to balance customer demand with the firm's manufacturing capacity.

False

Since the deregulation of transportation in the U.S., negotiating transportation prices has become less common among business shippers and logistics providers.

False

The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.

False

Third-party logistics (3PL) services cannot assist with customs clearance because of strict regulations.

False

In 2014, supply chain process integration was found to be the most significant predictor of firm's competitive position.

True

In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S., because European track, facilities, and equipment are newer and better maintained.

True

In many cases, reverse logistics is viewed as an unwanted activity of supply chain management.

True

International intermediaries can provide shipping, consolidation, and other import and export services. Some examples of these international intermediaries include: NVOCCs and trading companies.

True

It can be argued that transportation deregulation is good because it encourages competition and allows prices to adjust as supply, demand, and negotiations dictate.

True

Lack of internal or external collaboration will create quality, cost, delivery timing, and other customer service problems that are detrimental to supply chains.

True

Limitations of air carrier transport include cost and airport accessibility.

True

Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as: a. Silo mentality b. Balking c. Shortage gaming d. Cross-selling

A. Silo Mentality

Security activities such as; Use of security badges and guards, conducting background check on applicants and using antivirus software and passwords, would be classified as: a. Basic Initiatives b. Reactive Initiatives c. Proactive Initiatives d. Advanced Initiatives

A. Basic initiatives

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. Decreased assembly operations

____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders? a. Information visibility b. Internal quality standards c. Forward Integration d. All of the above

A. Information visibility

It is argued that transportation deregulation is good because: a. It encourages competition b. It ensures adequate transportation service throughout the country c. It protects consumers in terms of monopoly pricing d. All of the above

A. It encourages competition

Which of the following has made external integration more difficult to achieve? a. Problems with internal integration efforts b. Identifying key trading partners c. Lack of software applications to coordinate the effort d. Increased number of franchise operators

A. Problems with internal integration efforts

___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing, and distribution services to other companies. a. Public warehouses b. Private warehouses c. Breakbulk warehouses d. Consolidation warehouses

A. Public warehouses

Returns management is also known as _______. a. Reverse logistics b. Backward logistics c. Inverted logistics d. Waste reduction

A. Reverse logistics

Foreign-trade zones are: a. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes b. Secure sites in foreign countries where goods wait for clearance by importing country c. Markets in the U.S. where foreign countries set up and sell products d. Bodies of water where cargo ships are allowed to dock to deliver imported goods

A. Secure sites within the US

Which of the following is an obstacle to successful process integration? a. Passive integration b. Stockpiling c. Lack of trust d. Transaction costs

C. Lack of trust

_______________ carry the majority of the world's water-transported manufactured goods. a. Supertankers b. Containerships c. Barges d. None of the above

B. Containerships

Which of the following identifies the key customers, determines their needs, and then develops products and/or services to meet those needs? a. Collaborative Management b. Customer Relationship Management c. Product Development and Commercialization d. Demand Management

B. Customer Relationship Management

Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: a. Data warehouses b. External process integration c. Expediting d. All of the above

B. External process integration

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Consolidation forwarder b. Freight forwarder c. Transportation broker d. Load broker

B. Freight forwarder

The first major transportation regulation in the U.S. was which of the following: a. Interstate Commerce Act b. Granger Laws c. Motor Carrier Act d. Interstate Initiation Act

B. Granger Laws

The global process integration software market is expected to: a. Double by the end of 2018 b. Grow by about $100 billion from 2017 to 2021 c. Remain constant through 2018 d. Decrease slightly by the end of 2017

B. Grow about $100 billion

Due to the success of NAFTA, the U.S________________. a. Has decided to extend the agreement until 2025 b. Has free trade agreements in 20 countries c. Both A & B d. None of the above

B. Has free trade agreements in 20 countries

According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Manufacturing flow management process b. Knowledge management process c. Supplier relationship management process d. Product development and commercialization

B. Knowledge management process

Higher inventories, higher costs, longer response times, and lost customers can result from? a. Lack of trust between trading partners b. Lack of supply chain visibility c. Lack of vendor managed inventories d. Reactive initiatives

B. Lack of supply chain visibility

Information technology advances, for example, have made cyber attacks: a. Less common b. More common c. Nearly impossible d. Limited to franchises

B. More common

Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans: a. Customer relationship management process b. Order fulfillment process c. Customer demand organization process d. Supply chain synchronization process

B. Order fulfillment process

The coordination and sharing of information and resources to jointly manage a process is referred to as: a. Differentiation b. Process integration c. Simplification d. Reverse logistics

B. Process integration

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Trucking companies b. Railroad companies c. Waste management companies d. Warehouse management companies

B. Railroad Companies

Substance disposal and recycling are part of which supply chain business process: a. Customer relationship management process b. Returns management c. Customer service management process d. Product development and commercialization process

B. Returns management

Which of the following legislative acts is NOT in support of transportation deregulation? a. Railroad Revitalization and Regulatory Reform Act b. Staggers Rail Act c. FAA Authorization Act d. Reed-Bulwinkle Act

B. Staggers Rail Act

A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 6,667 b. 11,619 c. 15,492 d. 25,820

C. 15,492

The phase of the supply chain integration model concerned with identifying the important processes linking each of the supply chain partners is: a. Review and establish supply chain strategies b. Identify critical supply chain trading partners c. Align supply chain strategies with key supply chain process objectives d. Assess and improve internal integration of key supply chain processes

C. Align supply chain strategies with key supply chain process objectives

Which of the following is a direct benefit from the adoption of NAFTA? a. A reduction in illegal immigrants crossing the border from Mexico b. An increase in manufacturing job opportunities in the U.S. c. An increase in trade between U.S., Canada, and Mexico d. An increase in trade between U.S. and China

C. An increase in trade between US, Canada, and Mexico

Which of the following is important for external process integration to be successful? a. Successful internal process integration b. Willing and competent trading partners c. Both A & B d. None of these

C. Both A & B

Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of: a. Legacy MRP systems b. Score-carding systems c. Cloud-based communication systems d. Mobile Marketing

C. Cloud-based communication systems

A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes: a. Supply management process b. Demand management process c. Customer service management process d. Order fulfillment process

C. Customer service management process

Which of the following is a contributor to the bullwhip effect? a. Smaller order sizes b. Using actual demand data c. Forward buying d. Vendor managed inventory

C. Forward buying

Mapping the network of primary trading partners is something that should be done to: a. Review and establish supply chain strategies b. Obtain point-of-sale information from customers c. Help the firm decide which businesses to include in its supply chain management efforts d. Assess and improve internal integration of key supply chain processes

C. Help the firm decide

shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Remained the same b. Slowly declined c. More than quadrupled d. Decreased for the first 10 years, then increased

C. More than quadrupled

A product positioned strategy: a. Places warehouses close to customers b. Places warehouses midway between the sources of supply and the customers c. Places warehouses close to the sources of supply d. None of the above

C. Places warehouses close to the sources of supply

Which of the following can aggregate cargo and arrange for the domestic or international shipment of members' cargo at favorable volume rates? a. Transportation Broker b. Freight Forwarder c. Shippers' Associations d. Integrated Logistics Service Provider

C. Shippers' Associations

Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration? a. Risk Pooling b. Lack of trust c. Shortage Gaming d. Lack of Knowledge

C. Shortage Gaming

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Granger Laws b. The Transportation Act of 1920 c. The Shipping Act of 1984 d. The Interstate Commerce Act of 2013

C. The Shipping Act of 1984

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation? a. Customs broker b. Foreign freight forwarder c. Trading company d. NVOCC

C. Trading Company

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. Trucking Industry Regulatory Reform Act

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. Water Carriers

Supply relationship management personnel routinely communicate with: a. Production personnel to obtain feedback on supplier and purchased item performance b. Marketing personnel for customer feedback c. Suppliers for new product development and performance feedback d. All of the above

D. All of the above

Which of the following are intermodal transportation alternatives? a. Truck trailer-on-flatcar b. Roll-on-roll-off c. Piggyback service d. All of the above

D. All of the above

Which of the following is a vital element in developing a strong supply chain through the practice of process integration? a. Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners b. Partner collaborations on methods to improve processes within the supply chain c. Partnerships, which value information sharing and partner collaborations d. All of the above

D. All of the above

Which of the following would be considered a Supply Chain Risk Management activity? a. Increasing safety stock b. Diversify the supply base c. Develop a formal risk management program d. All of the above

D. All of the above

Performance measurements: a. Assist in pricing of products b. Help to eliminate non-value-creating activities c. Help identify new customer requirements d. Both B & C

D. Both B & C

Price fluctuations that are the result of special product promotions, quantity discounts, and other special pricing discounts by suppliers' result in: a. Shortage Gaming b. Quantity Batching c. Buy-Back Gaming d. Forward Buying

D. Forward buying

________________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Water Carriers b. Rail Carriers c. Air Carriers d. Motor Carriers

D. Motor Carriers

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. None of the above

D. None of the above

When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect. a. Stockpiling b. Bullwhip ordering c. Order fulfillment d. Order batching

D. Order batching

Reverse logistics can have a positive impact on the environment through activities such as? a. Data warehousing b. Reneging c. Risk pooling d. Recycling

D. Recycling

Which of the following is NOT one of the Eight Key Supply Chain Business Processes? a. Order Fulfillment b. Customer Relationship Management c. Returns Management d. Warehouse Management

D. Warehouse Management

Transportation, warehousing, marketing, and customer service play very significant roles in the logistics function.

False

According to the textbook, the five basic modes of transportation are motor, rail, air, water, and pipeline.

True

An effective reverse logistics process can create goodwill and enhance customers' perceptions of product quality.

True

Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished goods inventories, receiving shipments, breaking down shipments, repackaging, and the distribution of components.

True

External process integration can be an extremely challenging task because it can potentially cause a change in one or more organizational cultures.

True

Private warehouses refer to warehouses that are owned by the firm storing the goods.

True

Reverse logistics refers to the movement and storage of returned goods.

True

The ultimate goal in supply chain management is to create value for the services and products provided to end customers, which, in turn, will benefit the firms in the supply chain network.

True

With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination.

True