Logistics Test 3

Companies do not know their true costs for all of the following reasons EXCEPT:

All: In standard cost systems, fixed costs are often treated the same as variable costs. Accounting costs are computed to provide historical records. Accounting systems tend to report in aggregate. Allocation of business costs common to multiple segments tend to be subjective and arbitrary.

What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network?

All: change in customer service requirements, change in corporate ownership, shifting locations of customer and/or supply markets

There are four steps in Managing Sourcing and Procurement Processes. What does not belong?

Examine off shore and e-procurement supplies. DO: Determine the type of purchase, Determine the necessary level of investment, Evaluate the effectiveness of the strategic sourcing process

Creating inventory profile

Gathering cycle time info to develop a sketch cum. lead time

____, is a set of international standards that establish the minimum requirements for all organization's quality system.

ISO 9000

Geovisualization

Incorporate multiple dimensions within two dimensional map

Which of the following is NOT a supply chain decision area regarding ROA improvement?

Information Management

Which is correct regarding the transit privilege?

It permits the shipper to stop the shipment in transit and physically change the product's characteristic.

Which is true regarding the facility/supply chain network design decision?

It should be coordinated closely with the corporate and overall business strategies that may be in place.

ALL of the following are advantages of electronic procurement EXCEPT:

Lack of face-to-face contact.

The current logistics management approach is supported by which performance measurement concept?

Least total cost.

What is the best financial metric to show the profit an organization generates in relationship to assets utilized?

ROA

Statements: 1: All logistics budgets are dynamic. 2. Some logistics costs are static.

The first statement is false, the second statement is true.

T/F. The terms purchasing and procurement can often be used interchangeably, however procurement has a broader meaning, and includes purchasing, traffic, warehousing, and receiving inbound materials.

True.

Excessive inventory levels will always lower corporate return on net worth by:

Tying up cash that could be used for other investment opportunities and/or reducing debt.

The grid technique is used to determine a fixed facility location that represents the least-cost center from moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as

a center of gravity

A project layout is

a fixed location layout where the product remains in place for the duration of production

What advantage does the transit privilege give to shippers located at intermediate locations?

a lower, long-distance through rate charged for the shipment

An "executive dashboard" is

a small number (usually less than five) of KPI's.

The decision to alter the supply chain process is essentially ____ issue.

an optimization.

Total life cycle considerations (TLC)

are figuring more prominently into reverse logistics programs

Recycling and environmental concerns

are often related to regulatory policy at the local, state, and federal levels

The grid technique

assumes that the raw material sources and finished goods markets are fixed.

In the Execute Sourcing Strategy step, the most important thing is to

choose a supplier or suppliers, depending on the objective of the sourcing decision.

An index

combines two or more metrics into a single indicator.

____ exist for basic raw materials such as grain, oil, and suger

commodity markets

Collaboration occurs when

companies leverage each other on an operational basis so that together they perform better then they did separately

What is an advantage of the grid technique for facility location?

computationally, it is relatively easy to use

Another driving influence for supply chain reexamination has been the desire of organizations to change their supply chain focus from a ____ to an "investment" center.

cost center

All of the following are goals of purchasing EXCEPT:

maximize the number of public warehouses utilized in order to avoid the high fixed costs

Scorecard and key performance indicators (KPI's) refer to

metrics to manage logistics operations.

The logistics/supply chain network transformation team

must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates.

The most compelling financial strategy is

operational efficiency

Which of the following is NOT a reactive capability strategy?

resource requirements planning

In the SCOR Model that are five major categories of metrics that need to be used to measure the performance of Process of D1: reliability, ___, agility, costs, and asset management.

responsiveness

Warehouseperson offered reduced rates to user of a public ware

store goods regularly

Green procurement strategies usually require collaboration with ____.

suppliers and vendors

From a business and supply chain perspective, ____ are usually based upon a recognition that industrial systems need to be in harmony with nature by not depleting resources beyond their replacement or regeneration rate.

sustainability pracitces

When a firm "customizes" their supply chain, it is

tailoring the chain to be responsive to the needs of individual customer segments

A major challenge is ____ of total cost of the return flow processes

the estimation

A push-based strategy works well for supply chains that focus on

the immediate delivery of off-the-shelf, low-cost, standardized goods.

Time based strategies could affect

the length of the cash to cash cycle.

Capacity is

the maximum amount of work that an organization is capable of completing in a given period of time

Which is correct regarding tapering rates?

the principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles.

NOT recommendation for supply chain management

...

Retailers lose, on average ____ percent of sales due to returns.

3-5

Effective management can have an impact on

All: Reducing supply chain costs, increasing revenues, improving ROA.

Reasons for engaging in forward buying include:

Delay the impact of rising costs and provides provides protection against future anticipated shortages

Which of the following is NOT part of how world class collaboration skills are developed?

Determine the benefits will be shared

Which of the following does not belong in the list of the seven principle of supply chain management?

Develop an outsourcing strategy to maximize asset utilization

IN the Item Procurement Importance Matrix, which items is described as high risk, low value?

Distinctives

T/F. Postponement and JIT are closely linked as postponement involves delaying placing supplies orders until the last minute so they can be delivered Just-In-Time.

False.

Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____, and channel structure.

Information systems.

Which is true regarding optimization models?

Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation.

Which of these is NOT a form of purchasing?

Process improvement. Are: Sourcing, process improvement, purchasing

Gross margin equals

Sales minus COGS

This information technology is a shelf-level collaboration solution b/n consumer goods manufactures and retailers, wherein the manufacturers pull in the point-of-sale (POS) data and other data the minimizes the bullwhip effect

Warehouse technology

A 4PL is

a 3PL looked to for providing competencies related to knowledge availability, information technology, and skills in forming and sustaining supply chain relationships.

CEOs views SCM initiatives

being primarily focused on cost reduction.

A closed loop system deals with

both forward and reverse flows.

There are several classifications of purchased items. Which of the following is NOT one of those?

cash cows. Are: criticals, commodity, generics

The macro approach that locates a warehouse or distribution center at point that minimizes transportation costs for products moving b/n a manufacturing plant and the markets, and is relatively simplistic:

center of gravity approach

A situation where a garage returns worn tires for retreading and receives them back is called a

closed-loop system

Packaging is

critical to logistics

A metric requires

definition.

Which of these is NOT a production method?

delayed differentation

Which is NOT a manufacturing method?

delayed differentitation

What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service?

desirable capabilites

Corporate leaders

do not clearly understand the importance of supply chain excellence

Processes that can produce a range of products are said to have

economies of scope

What is an amalgam of catalogs from vendors within a market that is available via the INternet called?

electronic marketplace

Which is NOT a major challenge for many established manufacturers?

expanding product life cycles

Drawback of centralized inventory is

extends lead times and results in higher transportation costs

What vendor selection criteria are described by price and financial stability?

financial

Information and ____ are important dimensions in revers logistics and closed loop supply chains.

financials

There are ____ high-priority areas in which it is important to develop effective logistics and supply chain straegies

five

Green laws have

had a major impact on firms

Application of the grid technique to the location of a city warehouse

incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone.

For most firms, the MOST important measure of customer service is:

inventory availability within a specified order cycle time

Resource requirement planning (RRP)

is a long-run, macro-level planning tool

ALL of the following represent saving associated with volume buying EXCEPT

lower capital costs associated with the inventory investment

Which of the following is NOT a savings associated with volume buying?

lower capital costs associated with the inventory investment

Final step in strategy sourcing methodology

measure and improve service

Which of the following is NOT an element of Order Management?

optimizing mode mix.

Lean production relies on

pull-based systems

What is the effect of tapering rates on facility location?

pulls the location toward the source of the market

There are four major categories with examples that provide a useful way for examining logistics and supply chain performance. They are time, ____, cost, and supporting metrics.

quality.

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a

steering committee

The recent increase focus on revers flows is attributable to

the significant increase in volume of revers flows

The classic objective of a network design model has been

to establish the number, location, and size of finished goods distribution centers and associated product flows.

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called

total landed cost

Companies with 10,000 purchase transactions or more per year should consider

transactional procurement solutions

When a blanket rate structure is used, which factor is eliminated as a locational determinant?

transportation rate

Which of the following is NOT a source of price?

wholesale price index