LSCM Exam

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

Market Research

- Ask Customers - Useful for demand & product design planning - What customers say & what they actually do may be different - Overly optimistic

Sales Force Estimates

- Each salesperson projects his or her sales - Combined locally or nationally - Sales reps know what customers want - Overly optimistic

Demand management satisfies customers by...

- Gathering/analyzing information - Identifying partners - Moving functions - Sharing useful information - Developing products/services -Creating/Executing the best distribution methods

Delphi Method

- Group process continues until consensus is met - Decision Makers, Staff & Respondents

The 4 production/assembly methods

- Make-to-stock - Assemble-to-order - build-to-order - Engineer-to-order

Executive Opinion

- Small groups, High-level Experts, Managers - Group estimates demand together - Combines managerial experience with data - Quick

Judgement

- When little data exist - New products - Involve intuition & experience

Quantitative

- When situation is stable, historical data exists - Existing products - Involves Mathematics

-----------------------CHAPTER 04/14--------------------------

-----------------CHAPTER 10--------------------------

-----------------CHAPTER 11--------------------------

-----------------CHAPTER 12--------------------------

-----------------CHAPTER 13/15--------------------------

-----------------CHAPTER 4--------------------------

-----------------CHAPTER 5--------------------------

-----------------CHAPTER 6--------------------------

-----------------CHAPTER 7--------------------------

-----------------CHAPTER 8--------------------------

-----------------CHAPTER 9--------------------------

Two Forecasting Methods:

1. Judgement 2. Quantitative

Problems in achieving demand management...

1. Lack of coordination in each department 2. Too much emphasis on forecasts and not enough on operational plans 3. Demand information used for more tactical/operational than strategic purposes

Four Judgement Forecasting Methods:

1. Salesforce Estimates 2. Executive Opinion 3. Market Research 4. Delphi Method

Buy-side system:

A buyer-controlled e-procurement or e-commerce service that is housed on the buyer's system and is administered by the buyer, who typically pre-approves the suppliers who have access to the system, and the process of the suppliers' products and services that have been prenegotiated

ISO 9000

A program started in 1987 by the International Organization for Standardization. It has an objective of making sure that companies have standard processes in place that they follow: "Document what you do and do what you document." ISO 9000 involves a third-party registration program certifying that companies are following documented processes

Electronic marketplace

A seller-operated service that consists of a number of electronic catalogs from vendors within a market

Online trading community:

A system maintained by a third-party technology vendor where multiple buyers and multiple sellers in a given market can conduct business. The online community permits the buyers and sellers to conduct business transactions.

A warehouse person may offer REDUCED rates to the user of a public warehouse if the user: A. Stores goods regularly. B. Stores higher valued goods. C. Stores goods with low density. D. Reduces the amount of packaging on fragile goods. E. All of the above.

A. Stores goods regularly.

Reasons for engaging in forward buying include: a. delay the impact of rising costs b. decreases the firm's average cost of capital in the short run c. provides protection against future anticipated shortages A. and C. only A., B., and C.

A. and C. only (Page 144 in the 10th Edition)

Which type of strategic global logistics channel intermediary provides expert advice to small international shippers, consolidates small shipments, and performs routine actions that shipments require? A. foreign freight forwarder B. NVOCC C. customs house broker D. export packer

A. foreign freight forwarder (pg 439)

INCREASING the number of warehouses will __________ the warehousing and inventory costs, but may __________ transportation costs. A. increase, decrease B. decrease, decrease C. increase, increase D. decrease, increase

A. increase, decrease

The logistics/supply chain network transformation team... A. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates B. will not consider the potential involvement of third-party logistics suppliers as part of their responsibilities C. includes workers from divisional levels only D. should not include outside consultants

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

In selecting a transport mode or carrier, the most important factor for most shippers would be: A. on-time pickups and deliveries B. carrier reputation C. quality of carrier sales force D. lowest freight rate E. satisfactory insurance coverage

A. on-time pickups and deliveries (pg 448)

Physical Distribution

All activities associated with the supply of finished product. e.g: customer service, order processing, inventory control, transportation and logistics, and packaging and materials.

Total Quality Management

Arising in the 1980s in response to Japanese competition and the teachings of Dr. W. Edwards Deming, TQM represented a strategy in which entire organizations were focused on an examination of process variability and continuous improvement. This approach, which was very popular into the mid-1990s, included a goal of improving a company's quality to only three defects per million through systematic incremental change in processes and careful statistical measurement of outcomes.

Using Wilson's EOQ formula, what will happen to the average inventory level (Q*/2) if unit cost is INCREASED by 4.1% and annual demand is DECREASED by 4.1% at the same time? A. (Q*/2) will increase. B. (Q*/2) will decrease. C. (Q*/2) will remain the same.

B. (Q*/2) will decrease.

Assuming the cost to place an order is constant, all other things remaining the same, DECREASING the order quantity (Q*) causes total ANNUAL ordering costs to: A. Decrease. B. Increase. C. Remain the same. D. Cannot be determined.

B. Increase.

On a "PER UNIT" basis: A. Variable costs vary with volume and fixed costs remain constant. B. Variable costs are fixed with volume and fixed costs vary with volume C. Both variable costs and fixed costs vary with volume D. Both variable costs and fixed costs remain constant

B. Variable costs are fixed with volume and fixed costs vary with volume

Which of these is NOT a production method? A. make-to-stock B. delayed differentiation C. build to order D. assemble to order

B. delayed differentiation

For most firms, the MOST important measure of customer service is: A. profitability of the particular channel of distribution B. inventory availability within a specified order cycle time C. the length of the order cycle D. he number of decentralized transactions within a business cycle E. the ability to backorder

B. inventory availability within a specified order cycle time

Which of the following would NOT be a typical transportation management function? A. selecting the best modes of transportation B. keeping track of inventory in the warehouse(s) C. auditing freight bills D. negotiating rates with carriers E. choosing specific carriers

B. keeping track of inventory in the warehouse(s) (pg 419-422)

All the following are goals of purchasing EXCEPT: A. provide an uninterrupted flow of materials, supplies and services required to operate the organization B. maximize the number of public warehouses utilized in order to avoid the high fixed costs of plant warehouses C. keep inventory investment and loss at a minimum D. maintain adequate quality standards E. Find or develop new and existing suppliers

B. maximize the number of public warehouses utilized in order to avoid the high fixed costs of plant warehouses (Page 142 in the 10th edition)

Customer relationship management is the art and science of A. demand management. B. positioning customers to improve the profitability of the organization. C. management discipline. D. customer profitability

B. positioning customers to improve the profitability of the organization.

An organization selling its products FOB destination holds the title to the goods until: A. picked up by the trucker B. products reach the customer's facility C. the customer is invoiced D. the customer receives the goods into their inventory system

B. products reach the customer's facility (pg 436)

In the SCOR Model there are five major categories of metrics that need to be used to measure the performance of Process D1: reliability, ______, agility, costs, and asset management. A. ROA B. responsiveness C. supply chains D. cash to cash cycle

B. responsiveness

Companies with 10,000 purchase transactions or more per year should consider A. strategic sourcing solutions B. transactional procurement solutions C. business-to-business transactions D. collaboration tools

B. transactional procurement solutions (Page 156 in the 10th Edition)

Private warehouses are generally advantageous when: (A) demand does not fluctuate; (B) greater control is necessary; (C) throughput is low and sporadic; (D) investment capital is scarce; (E) promotional items need to be stored. A. (A) and (C) B. (A),(D) and (E) C. (A) and (B) D. (A),(B) and (D) E. (B) only

C. (A) and (B)

If you were to "manage" Wilson's EOQ as a means of reducing your company inventories, which variable of Wilson's EOQ would make the most sense to change. A. Inventory Carrying Cost. B. Unit Price. C. Ordering Cost. D. Annual Deman

C. Ordering Cost

There are several classifications of purchased items. Which of the following is NOT one of those? A. commodity B. generics C. cash cows D. criticals

C. cash cows (Page 143 in the 10th Edition)

Automated storage and retrieval systems (AS/RS) have many advantages, BUT a disadvantage of such systems is: A. higher operating costs B. actual increase in space required (rather than a decrease) C. initial capital costs D. increases in manpower required E. lessened control over inventory

C. initial capital costs

Benefits to a carrier of improved routing and scheduling include all of the following EXCEPT: A. greater vehicle utilization B. higher levels of customer service C. lessening of competition D. lower transportation costs E. reduced capital investment in equipment

C. lessening of competition

ALL of the following represent savings associated with volume buying EXCEPT A. reduction in purchase price B. reduction in administrative costs C. lower capital costs associated with the inventory investment D. supports JIT purchasing E. C. and D.

C. lower capital costs associated with the inventory investment

Which of the following is NOT a savings associated with volume buying? A. reduction in purchase price B. reduction in administrative costs C. lower capital costs associated with the inventory investment D. supports JIT purchasing E. lower per unit margins to suppliers due to higher volume

C. lower capital costs associated with the inventory investment (Page 144 in the 10th edition)

Which of the following industries would be MOST likely to utilize automated storage and retrieval systems (AS/RS)? A. building materials and lumber products B. carpeting C. non-refrigerated food items D. household furniture E. large machinery

C. non-refrigerated food items

Which of the following is NOT a result (directly or indirectly) of the Motor Carrier Act of 1980? A. increasing competition B. overall number of TL motor carriers has increased C. service levels provided by carriers have declined D. the number of negotiated shipper-carrier agreements has increased E. the influence of rate bureaus on carrier pricing has declined

C. service levels provided by carriers have declined (pg 464)

Piggyback is a form of intermodal transportation that primarily involves the following two transport modes: A. air and rail B. water and pipeline C. truck and rail D. air and water

C. truck and rail (pg 432)

Which of the following is NOT a source of price? A. price lists B. price quotation C. wholesale price index D. negotiation

C. wholesale price index (Pages 165 in the 10th Edition)

_________ exist for basic raw materials such as grain, oil, and sugar.

Commodity markets

Pareto Analysis (also known as the 80/20 rule) may be used to classify parts, customers, or activities. Which is the best measurement to use when classifying customers with Pareto Analysis for the purpose of business expansion? A. Annual revenues per customer. B. Number of orders placed annually per customer. C. Annual gross profit per customer. D. Profitability per customer. E. Total number of units ordered annually per customer.

D. Profitability per customer.

DECREASING the number of warehouses will __________ the warehousing and inventory costs, but may __________ transportation costs. A. increase, decrease B. decrease, decrease C. increase, increase D. decrease, increase

D. decrease, increase

Form utility drives the need for A. supply chain capabilities only B. time utility and place utility C. place utility only D. supply chain capabilities, time utility, and place utility

D. supply chain capabilities, time utility, and place utility

The transportation activity adds _______ utility to products. A. form and place B. possession C. time D. time and place E. all of the above utilities would be added by transportation

D. time and place (pg 419)

If demand INCREASES by 13% and the value of each unit INCREASES by 13%, what will happen to the EOQ? (Assume that everything else remains the same). A. the EOQ will increase by 13%. B. the EOQ will increase by 26%. C. the EOQ will decrease by 13%. D. the EOQ will decrease by 26%. E. the EOQ will remain the same.

E. the EOQ will remain the same.

Which is not a major challenge for many established manufacturers?

Expanding product life cycles

The "cost-of-service" pricing approach establishes a upper limit of transportation prices or rates.

FALSE

When a traffic manager reduces the number of carriers used, market power is decreased.

False

Financial considerations

In addition to price, the buying firm considers the supplier's financial position. Financially unstable suppliers pose possible disruptions in a long-run continued supply of material.

Sell-side system

Online businesses selling to individual companies or consumers

READ FOLLOWING STATEMENTS Statement I. All logistics budgets are dynamic. Statement II. Some logistics costs are static.

Statement I is FALSE, Statement II is TRUE

Cross-docking bypasses the storage activity by transferring items directly from the receiving dock to the shipping dock.

TRUE

Decreasing inventory turnover may lead to increased profitability.

TRUE

For most shippers, in the selection of a specific transport mode or carrier, consistency of service is much more important than time-in-transit.

TRUE

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

The Grid technique disadvantages

The grid technique has limitations that the decision maker must recognize. First, it is a static approach, and the solution is optimum for only one point in time. Changes in the volumes a company purchases or sells, changes in transportation rates, or changes in raw materials sources or market locations will shift the least-cost location. Second, the technique assumes linear transportation rates, whereas actual transportation rates increase with distance but less than proportionally. Third, the technique does not consider the topographic conditions existing at the optimum location; for example, the recommended site may be in the middle of a lake. Fourth, it does not consider the proper direction of movement; most moves occur along a straight line between two points, not "vertically" and then "horizontally

The Grid technique advantages

The grid technique's strengths are in its simplicity and its ability to provide a starting point for location analysis. Computationally, the technique is relatively easy to use. A company can generate the necessary data from sales figures, purchase records, and transportation documents (either the bill of lading or the freight bill). More exact market and source location coding is possible, as is modifying the rate-distance relationship quantification. A computer can easily handle such refinements

Supply Chain

a grouping of firms or activities inside and outside an organization that are directly or indirectly associated with fulfilling customer's requests. This ranges from product design, raw material production, supply of materials and services, conversion of raw materials into products, and all other activities necessary to bring the finished product to the ultimate customer.

Retailers lose, on average _____ percent of gross sales due to returns. a. 3-5 b. 4 c. 20 d. 30

a. 3-5

These are designated by the U.S. secretary of the treasury for the purpose of storing, repacking, sorting or cleaning imported merchandise entered for warehousing without paying import duties while the goods are in storage. a. Bonded warehouses b. Hold-on-dock storage c. In-transit storage areas d. Transit sheds

a. Bonded warehouses

Seasonal stocks are NOT influenced by: a. EOQ. b. weather. c. transportation. d. holidays

a. EOQ

What is an amalgam of catalogs from vendors within a market that is available via the Internet called? a. Electronic marketplace b. Buy-side system c. Sell-side system d. On-line trading community

a. Electronic marketplace (pg 159)

If a DC that picks primarily cases switches to mostly broken cases (with the same items), which of the following would occur in the DC? a. Labor costs would increase b. Total transportation costs would increase c. Total inventory holding costs would increase d. Total packaging costs would increase e. None of these answers

a. Labor costs would increase

28. An advantage to dedicated fulfillment is: a. No disruption to store operations b. Separate facilities might be needed c. Duplicate inventories d. High start-up costs

a. No disruption to store operations

17. Which is true regarding optimization models? a. Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation. b. Optimization models are able to accommodate broad problem definitions, rather than provide an optimum solution. c. The Grid Technique is a powerful optimization model . d. Optimization models will guarantee increased profits.

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

What is the best financial metric? a. ROA b. Profit c. Sales d. Stock price

a. ROA

Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer at the right cost, is which definition of logistics? a. Seven Rs b. Council of Logistics Management c. Society of Logistic Engineers d. supply chain logistics

a. Seven Rs

Which approach represents a strategy in which the entire organization is focused on the examination of process variability and continuous improvement? a. Total Quality Management b. Six Sigma c. Lean Enterprise Management d. Theory of Constraints e. None of the above

a. Total Quality Management (pg 149)

EOQ models exist that include adjustments for volume transportation rates and for quantity discounts. a. True b. False

a. True

31. What advantage does the transit privilege give to shippers located at intermediate locations? a. a lower, long-distance through rate charged for the shipment b. allows importers to enter a product and hold it without paying duties c. avoidance of terminal charges for each intermediate stop d. the right to change consignees during shipment

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

17. An "executive dashboard" is a. a small number (usually less than five) of KPIs. b. used by senior management to track profits. c. a metric used by the Board of Directors. d. a trend that has only recently developed.

a. a small number (usually less than five) of KPIs.

Economic deregulation sparked competition among carriers in several areas. Which of these is NOT an area of competition? a. accessibility b. pricing c. performance d. services

a. accessibility (pg 421)

The SCOR model provides suggested metrics a. across multiple dimensions for each of the five Level One processes. b. for segmenting customers. c. for proving a base for ABC costing. d. that allow marketing to evaluate channel selection

a. across multiple dimensions for each of the five Level One processes (Page 259 in the 10th Edition)

In his book "The Wealth of Nations", Adam Smith stated that economies and companies could improve their wealth by a. allowing specialization of tasks. b. ensuring that logistics is used to gain advantage in the marketplace. c. becoming multi-national. d. moving production off shore.

a. allowing specialization of tasks.

Recycling and environmental concerns a. are often related to regulatory policy at the local, state, and federal levels. b. have led to waste steams being managed by 3PLs. c. require the review of the feasibility of the materials requirement plan. d. have led to green laws

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

What vendor selection criteria are described by production capability, labor relations, and operating controls? a. capability b. quality c. reliability d. financial

a. capability (pg 150)

. Vertical collaboration refers to a. collaboration among buyers and sellers in the supply chain. b. collaboration among carriers and shippers. c. collaboration that moves up the supply chain. d. collaboration with competitors.

a. collaboration among buyers and sellers in the supply chain.

Vertical collaboration refers to a. collaboration among buyers and sellers in the supply chain. b. collaboration among carriers and shippers. c. collaboration that moves up the supply chain. d. collaboration with competitors.

a. collaboration among buyers and sellers in the supply chain.

Time-Reduction Logistics Initiatives a. could change push to pull. b. could change pull to push. c. require a total re-evaluation of supply chain strategies. d. have not found as much interest as other strategies.

a. could change push to pull.

. Packaging is: a. critical to logistics. b. critical to manufacturing. c. critical to product differential. d. a factor in outsourcing

a. critical to logistics

. Packaging is a. critical to logistics. b. critical to manufacturing. c. critical to product differential. d. a factor in outsourcing

a. critical to logistics.

15. As the nuber of stocking points (DCs) is decreased in a distribution network, fixed costs will ____ and variable costs will ___. a. decrease, decrease b. decrease, increase c. increase, increase d. increase, decrease

a. decrease, decrease

13. A metric requires a. definition. b. competitive analysis. c. trade association oversight. d. measures.

a. definition.

Dependent demand relates to a. demand for another inventory item or product b. the spare parts needed to fill the order c. VMI inventories d. the cost of capital for the firm

a. demand for another inventory item or product

Dependent demand relates to: a. demand for another inventory item or product. b. the spare parts needed to fill the order. c. VMI inventories. d. the cost of capital for the firm

a. demand for another inventory item or product

What is an amalgam of catalogs from vendors within a market that is available via the Internet called? a. electronic marketplace b. buy-side system c. sell-side system d. on-line trading community

a. electronic marketplace (pg 159)

Air carriers were historically looked upon as a. emergency only carriers. b. having equipment shortages. c. a fringe participant. d. insignificant.

a. emergency only carriers.

11. In the short run, the firm's network is _________ while in the long run it is ________. a. fixed, variable b. adoptable, reversible c. variable, reversible d. reversible, fixed

a. fixed, variable

Goods can be stored in a bonded warehouse a. for up to 3 years. b. until next year. c. Indefinitely. d. until the next shipment of the same product arrives.

a. for up to 3 years.

The value that is added to goods through a manufacturing or assembly process is: a. form utility. b. place utility. c. time utility. d. possession utility.

a. form utility. (pg 56)

In the Item Procurement Importance Matrix, what item is described as LOW RISK, LOW VALUE low? a. generics b. commodities c. criticals d. distinctives

a. generics (pg 143)

Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold. a. gross sales b. back orders c. the forecast d. gross margin

a. gross sales (Page 241 in the 10th Edition)

13. As the length and complexity of a supply chain increases, a firm's inventory levels will: a. increase b. decrease c. stay the same d. can't be determined

a. increase

As the level of substitutability for a product increases, its stockout costs to the manufacturer: a. increase. b. decrease. c. stay the same. d. can't be determined

a. increase

Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to a. increase the velocity of cash back to the selling organization. b. attract new customers. c. develop "Clicks" and "Bricks" firms. d. manage inventory more effectively

a. increase the velocity of cash back to the selling organization

As the dollar value of a product increases, packaging costs: a. increase. b. decrease. c. stay the same. d. can't be determined.

a. increase. (pg 71)

As suggested, the aging populations in more developed countries will result in _____ health care costs and/but _____ in the size of the working population or labor pool. a. increased; a reduction b. increased; stagnation c. steady; a decrease d. nominal raises in; an increase

a. increased; a reduction

As the weight density of a product decreases, transportation cost per pound: a. increases. b. decreases. c. stays the same. d. can't be determined.

a. increases. (pg 72)

Methods of decreasing inventory related costs include all of the following measures EXCEPT: a. increasing the number of expedited orders b. decreasing the number of back orders c. purging obsolete stock from the system d. reduction of transshipments of inventory e. improving accuracy of forecasts

a. increasing the number of expedited orders

Resource requirements planning (RRP) a. is a long-run, macro-level planning tool. b. checks the feasibility of the master production schedule. c. checks the feasibility of the materials requirement plan. d. is a long-range materials plan that translates annual business plans.

a. is a long-run, macro-level planning tool.

Resource requirements planning (RRP): a. is a long-run, macro-level planning tool. b. checks the feasibility of the master production schedule. c. checks the feasibility of the materials requirement plan. d. is a long-range materials plan that translates annual business plans.

a. is a long-run, macro-level planning tool.

Exponential smoothing a. is one of the most commonly used techniques. b. uses primarily weighted averages to compensate for errors. c. is used to determine random variations. d. is used to reduce channel fluctuations.

a. is one of the most commonly used techniques.

Which category of ocean shipping offers set schedules over specified sea routes? a. liner service b. charter vessels c. private vessels d. demise charter vessels

a. liner service

Which of these does NOT belong in the recommendations of the Reverse Logistics Educational Council? a. manufacturing b. gatekeeping c. zero returns d. information systems

a. manufacturing

What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse? a. materials handling b. physical distribution c. business logistics d. order fulfillment

a. materials handling (pg 59)

15. The logistics/supply chain network transformation team a. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates. b. will not consider the potential involvement of third-party logistics suppliers as part of their responsibilities. c. includes workers from divisional levels only. d. should not include outside consultants

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

What are fixed spatial points where goods stop for storage or processing? a. nodes b.links c. cost centers d.fulfillment centers

a. nodes (pg 85)

The primary facility operations focus is: a. on the movement and storage of product. b. on inventory control and personnel issues. c. in making sure KPIs are fulfilled. d. the WMS system.

a. on the movement and storage of product. (pg 390)

Certain raw materials can be stored a. outside. b. only in a 3PL facility. c. upside down. d. anywhere.

a. outside.

Whether the relationship may or may not be with a provider of logistics services, today's supply chain relationships are most effective when collaboration occurs among the ____________ who are involved. a. participants b. third party logistics providers c. customers d. suppliers

a. participants

Oversupply is created by a. phantom demand. b. returns and cancellations. c. forecasting failures. d. poor channel selection

a. phantom demand.

20. The optimization model is based on a. precise mathematical procedures. b. sampling experiments. c. broad problem definitions. d. rule of thumb approaches

a. precise mathematical procedures.

. Lean production relies on: a. pull-based systems. b. push-based systems. c. the Toyota production system (TPS). d. just-in-time systems

a. pull-based systems

Lean production relies on a. pull-based systems. b. push-based systems. c. the Toyota production system (TPS). d. just-in-time system.

a. pull-based systems.

Which of these is not a freight document? a. routing guide b. bill of lading c. freight bill d. freight claims form

a. routing guide

Gross margin equals a. sales minus COGS b. Sales + taxes minus COGS c. COGS - Sales d. COGS - taxes

a. sales minus COGS

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a a. steering committee. b. list of vendors. c. decision as whether to make or buy. d. list of criticals.

a. steering committee (pg 145)

Approximately two-thirds of 3PL customers think their providers supply a. tactical or operational services. b. strategic or integrative services. c. trucking and warehouse services. d. a firm that can supply a competency that is not core to the firm

a. tactical or operational services.

A major challenge is ___________ of total cost of the return flow processes. a. the estimation b. the management c. the tracking d. the control

a. the estimation

27. Which is correct regarding tapering rates? a. the principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles b. transportation rates increase with distance directly in proportion to the distance c. in a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market d. uses transportation simplifications to recommend facility locations

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

23. The classic objective of a network design model has been a. to establish the number, location, and size of finished goods distribution centers and associated product flows. b. to find the best location for a forward facing warehouse. c. to examine the finished goods flow from the warehouse to the customer. d. to measure and control site locations.

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

One important interaction that must be considered is the tradeoff between distribution and _____. a. transportation b. finance c. marketing d. services

a. transportation (pg 377)

Which are the major modes of international transportation? a. water and air b. water and rail c. rail and motor d. rail and air

a. water and air

Trade imbalances affect a. water carriers. b. motor carriers. c. railroads. d. pipelines

a. water carriers

Transportation terms of sale establish a. when ownership and title of the goods passes from seller to buyer. b. what must be shown on the bill of lading. c. which transportation mode must be used. d. who handles freight claims.

a. when ownership and title of the goods passes from seller to buyer

When a firm "sources strategically," it is a. working together with customers and suppliers in a creative, positive way. b. seeking least cost vendors. c. matching product and raw material flows to minimize transportation costs. d. reacting to current competitive situations.

a. working together with customers and suppliers in a creative, positive way.

26. Which of the following order cycle lengths would require the buyer to hold the most total inventory during lead time? a. 10 days, +/- 2 days b. 10 days, +/- 4 days c. 8 days, +/- 5 days d. 9 days, +/- 3 days

b. 10 days, +/- 4 days

Transportation may account for as much as ____ percent of the cost of reverse flow. a. 20 b. 25 c. 30 d. 35

b. 25

As market forces continue to exert pressure on companies to improve profitability, the quest for lower-cost manufacturing has been a factor in the relocation of manufacturing from Mexico to ________ ? a. South America b. Asia c. Russia d. Canada

b. Asia

This type of forecast error measure is the only one to show if a stock out or overage occurred: a. MAD. b. CFE (bias). c. MAPE. d. MSE. e. none of these answers.

b. CFE (bias).

America's ports are a key component of its global commerce. U.S. ports also play a vital role for the cruise industry. Which of these is not one of the top three departure ports for the cruise industry? a. Port Canaveral, Florida b. Cape Liberty, New Jersey c. Miami, Florida d. Ft. Lauderdale, Florida

b. Cape Liberty, New Jersey

Which of these is NOT a production method? a. Make-to-stock b. Create-to-order c. Build-to-order d. Assemble-to-order

b. Create-to-order

31. Demand for transportation at the microeconomic level is ___ while the demand for transportation at the macroeconomic level is ___? a. Elastic, elastic b. Elastic, inelastic c. Inelastic, inelastic d. Inelastic, elastic

b. Elastic, inelastic

All of the following are reasons for holding inventory EXCEPT: a. Inventories enable specialization in manufacturing. b. Inventories eliminate the variation in supply and demand. c. Inventories enable the firm to achieve economies of scale. d. Inventories provide protection from uncertainties in demand in the order cycle. e. Inventories act as a buffer between critical interfaces within the channel of distribution.

b. Inventories eliminate the variation in supply and demand.

The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is: a. Cycle stock. b. Safety stock. c. Promotional stock. d. Speculative stock. e. Transit stock.

b. Safety stock.

All the following are inventory risk costs EXCEPT: a. Obsolescence b. Taxes c. Damage d. Shrinkage e. relocation costs

b. Taxes

This type of inventory is influenced by the reliability of demand and lead time. a. Cycle stock b. WIP c. Safety stock d. Seasonal stock

b. WIP

A project layout is: a. a floor plan of the production facility. b. a fixed location layout where the product remains in place for the duration of production. c. a product-focused layout in which machines and workers are arranged according to the progressive sequence of operations. d. a process-focused layout that groups together similar equipment or functions

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

A project layout is a. a floor plan of the production facility. b. a fixed location layout where the product remains in place for the duration of production. c. a product-focused layout in which machines and workers are arranged according to the progressive sequence of operations. d. a process-focused layout that groups together similar equipment or functions.

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

A demand-driven system is also known as a. a supply chain. b. a pull system. c. a marketing system. d. a multi-echelon system.

b. a pull system.

18. A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called: a. just-in-time inventory b. adaptive manufacturing c. machine flexibility d. capacity requirements planning

b. adaptive manufacturing

A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called: a. just-in-time inventory. b. adaptive manufacturing. c. machine flexibility. d. capacity requirements planning

b. adaptive manufacturing. (pg 183)

20. The decision to alter the supply chain process is essentially ___________issue. a. a management b. an optimization c. a supply chain d. a customer satisfaction

b. an optimization

21. Heuristic models a. provide an optimum solution. b. are able to accommodate broad problem definitions. c. have fallen from use because of SAILS. d. are typically "seat of the pants" solutions.

b. are able to accommodate broad problem definitions.

WIP inventories: a. are not included on the balance sheet. b. are associated with manufacturing. c. are the same as VMI inventories. d. are not impacted by EOQ.

b. are associated with manufacturing.

24. The grid technique a. is a variation of SAILS. b. assumes that the raw materials sources and finished goods markets are fixed. c. assumes that the raw materials sources and finished goods markets are variable. d. assumes non-linear transportation rates.

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

A closed loop system deals with a. green laws. b. both forward and reverse flows. c. waste flow. d. recycling.

b. both forward and reverse flows.

Horizontal collaboration refers to a relationship that is ___________ and/or ____________. a. 3PLs to 3PLs and/or service provider to service provider b. buyer to buyer and/or seller to seller c. flat across the chain and/or involving partners equal in size d. collaboration with horizontal and/or vertical competitors

b. buyer to buyer and/or seller to seller

Order management system represents the principal means by which a. price and lead time add value. b. buyers and sellers communicate information relating to individual orders of product. c. orders are handled inside the company. d. customers are segmented by profitability

b. buyers and sellers communicate information relating

Activity Based Costing a. is useful for distributions centers but not customers. b. can be combined with customer segmentation. c. is too sophisticated for many applications. d. is a very new management science.

b. can be combined with customer segmentation. (Page 239 in the 10th Edition)

A downside of direct shipping is: a. that it takes product flow away from the distribution center. b. can create higher transportation charges. c. that customers may not like this method. d. the product may not lend itself to this method.

b. can create higher transportation charges. (pg 381)

In the Execute Sourcing Strategy step, the most important thing is to a. appoint the sourcing committee members from the affected groups. b. choose a supplier or suppliers, depending on the objectives of the sourcing decision. c. verify which vendors are either TQM or ISO 9000. d. determine which vendors have the lowest prices.

b. choose a supplier or suppliers, depending on the objectives of the sourcing decision (pg 151)

A situation where a garage returns worn tires for retreading and receives them back is called a a. reverse logistics system. b. closed-loop system. c. waste stream. d. value added system.

b. closed-loop system.

25. Which is an advantage of the grid technique for facility location? a. it establishes the final determination of the best site b. computationally, it is relatively easy to use c. it is a dynamic approach with solutions remaining optimum over many time periods d. it considers topographic conditions in choosing the optimum location

b. computationally, it is relatively easy to use

If demand and lead time are constant, only___________ is necessary. a. associated stock b. cycle stock c. safety stock d. speculative stock e. seasonal stock

b. cycle stock

As Q decreases for EOQ, the cost per order: a. increases. b. decreases. c. stays the same. d. can't be determined

b. decreases.

27. Which of these is NOT a production method? a. make-to-stock b. delayed differentiation c. build to order d. assemble to order

b. delayed differentiation

Processes that can produce a range of products are said to have a. economies of scale. b. economies of scope. c. routing flexibility. d. work centers.

b. economies of scope.

Processes that can produce a range of products are said to have: a. economies of scale. b. economies of scope. c. routing flexibility. d. work centers.

b. economies of scope. (pg 175)

While available evidence supports the fact that the president or CEO and the finance executive are often involved with the identification of the need for logistic services, a. customers are demanding a change. b. executives from other areas in the company are also aware of such needs but to a lesser degree. c. a 4PL will suggest greater collaboration. d. off shore sourcing will point to greater need.

b. executives from other areas in the company are also aware of such needs but to a lesser degree.

Four types of forecast error measures can be used. Which one of the following is not one of the four types? a. cumulative sum of forecast errors b. exponential smoothing for trends c. mean squared error d. mean absolute deviation

b. exponential smoothing for trends (Page 214 in the 10th Edition)

What vendor selection criteria are described by price and financial stability? a. capability b. financial c. quality d. reliability

b. financial (pg 150)

Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner. This is a a. definition from an inventory perspective. b. general definition. c. definition offered by the Society of Logistics Engineers. d. a definition provided by the Council of Logistics Management.

b. general definition.

26. Application of the grid technique to the location of a city warehouse a. is no different from applying it in any other situation. b. incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone. c. considers the costs of moving raw materials into the facility, and moving finished goods to the customers. d. accounts for information like highway access and facility availability within the grid coordinates.

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

. Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure. a. cash to cash management b. information systems c. order cycle d. KPIs

b. information systems

Capital cost focuses on the cost of capital tied up in _____ and the resulting lost opportunity from investing that capital elsewhere. a. plants b. inventory c. distribution centers d. WIP

b. inventory

The internal balancing method deals with a. price and lead time. b. inventory and production flexibility. c. functional silos. d. channel selection.

b. inventory and production flexibility.

13. Which is true regarding the facility/supply chain network design decision? a. the facility's impact on other functional areas should be considered, but it is not as important b. it should be coordinated closely with the corporate and overall business strategies that may be in place c. global locations should not be considered d. generally, qualitative criteria are considered first

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

The two largest cost centers in a DC are: a. equipment and space. b. labor and space. c. pallets and labor.

b. labor and space.

Which management area in an organization does NOT normally have transportation responsibility? a. marketing b. manufacturing c. procurement d. logistics

b. manufacturing

14. Scorecard and key performance indicators (KPIs) refer to a. sporting events. b. metrics. c. management's evaluation of supply chain staff. d. measuring output.

b. metrics.

27. The time that elapses from when a company receives an order until it gets paid for delivering the order is called the: a. product life cycle. b. order to cash cycle. c. order management process. d. replenishment process.

b. order to cash cycle

An inbound-to-operations logistics system is also referred to as a. physical distribution. b. physical supply. c. dedicated fulfillment. d. demand management.

b. physical supply (Page 209 in the 10th Edition)

The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix a. price b. place c. product d. promotion

b. place (Page 253 in the 10th Edition)

The utility that is created by moving goods from production points to market points where demand exists is referred to as _____ utility. a. form b. place c. time d. possession

b. place (pg 56)

19. There are five major categories of metrics that need to be used to measure the performance of Process D1: reliability, ___________, flexibility, cost, and assets. a. ROA b. responsiveness c. supply chains d. cash to cash cycle

b. responsiveness

The fixed order interval EOQ model is best used for SKUs with: a. variable demand. b. stable demand. c. unknown demand. d. seasonal demand.

b. stable demand.

16. Green procurement strategies usually require collaboration with _____________. a. senior executives b. suppliers or vendors c. legal departments d. green laws

b. suppliers or vendors

When a firm "customizes" their supply chain, it is a. trying to improve asset utilization. b. tailoring the chain to be responsive to the needs of individual customer. c. responding to competitive situations. d. revising its supply chain in light of current economic conditions.

b. tailoring the chain to be responsive to the needs of individual customer.

A critical ingredient for the Third Era of globalization is: a. the global emphasis on tailoring products and marketing strategies to meet perceived local needs b. technological advances, especially in information technology and communications c. the global emphasis on profits and efficiency d. the global emphasis on the marketing mix and marketing functions

b. technological advances, especially in information technology and communications

Which condition must be present before motor carriers and rail carriers can be used for international shipments? a. shipments must be in volume and in bulk b. the shipment must be between adjacent countries c. no customs barriers can be imposed d the shipment cannot pass through adjacent countries

b. the shipment must be between adjacent countries

. The first facility consideration is to determine: a. how close to the source it should be. b. the size of each operation within the network. c. how close to the customer it should be. d. where competitors are located.

b. the size of each operation within the network. (pg 386)

15. The logistics management approach was supported by a. metrics. b. total cost. c. least cost. d. the D1 concept developed by the Supply Chain Council.

b. total cost.

30. When a blanket rate structure is used, which factor is eliminated as a locational determinant? a. labor rate b. transportation rate c. raw material sources d. market sources

b. transportation rate

Perpetual inventory systems are required for any EOQ model having _____ demand while periodic inventory systems are used for EOQ models having _____ demand. a. variable; variable b. variable; constant c. constant; constant d. constant; variable

b. variable; constant

14. Which is NOT true regarding logistics network design? a. the logistics/supply chain network transformation team is responsible for all elements of the logistics network design process. b. the logistics audit provides members of the transformation team with a comprehensive perspective on the firm's logistics process. c. "what-if" types of analysis can be conducted later, after the final network design has been established. d. the implementation plan serves as a useful road map for moving from the current logistics network to the desired one.

c. "what-if" types of analysis can be conducted later, after the final network design has been established.

Which is not a mode of transportation? a. truck b. air c. 3PL d. pipeline

c. 3PL

Which of the following types of production processes use tools and equipment that are generalized in nature? a. Assembly line b. Batch c. Continuous process d. Job shop

c. Continuous process

Which of the following is not part of how world class collaboration skills are developed? a. Define the benefits of collaboration b. Make the investment c. Determine how the benefits will be shared d. Dedicate "A" players

c. Determine how the benefits will be shared

Which of the following does not belong in the list of the seven principles of supply chain management? a. Segment Customers Based on Service Needs b. Differentiate Products Closer to the Customer c. Develop an outsourcing strategy to maximize asset utilization d. Adopt Channel-Spanning Performance Measures

c. Develop an outsourcing strategy to maximize asset utilization

The biggest and best known example of a regional trade agreement (RTA) is the: a. World Trade Organization (WTO) b. General Agreement on Tariffs and Trade (GATT) c. European Union (EU) d. Customs Trade Partnership Against Terrorism (C-TPAT)

c. European Union (EU)

A DRP system is usually coupled with a _____ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods. a. Kanban b. VMI/consignment c. MRP d. JIT

c. MRP

Which of the following is NOT a reactive capability strategy? a. Machine flexibility b. Routing flexibility c. Resource requirements planning d. Offshoring

c. Resource requirements planning

Which of the following does a forecast always assume? a. Base demand always moves in a positive direction b. Business cycles do not exist c. The past always repeats itself d. Every forecast is seasonal

c. The past always repeats itself

A 4PL is a. a 3PL owned by transportation related firm. b. a firm used to implement Facility Utilization and Equipment Utilization Strategies. c. a 3PL looked to for sustaining successful supply chain relationships. d. a group of 3PLs owned by the company.

c. a 3PL looked to for sustaining successful supply chain relationships.

A maquiladora plant is a. a new type of flower. b. an entity created under NAFTA c. a U.S. plant performing manufacturing, processing, or assembly activity in Mexico. d. a factory owned by the Maquiladora Corporation.

c. a U.S. plant performing manufacturing, processing, or assembly activity in Mexico.

The global logistics channel intermediary that supervises the movement of goods through customs and ensures that the documentation accompanying a shipment is complete and accurate is known as a. a foreign freight forwarder. b. an export packer. c. a customs house broker. d. a foreign trade specialist.

c. a customs house broker.

One type of demand fluctuation is caused by random variation. What is random variation? a. errors in inventory management b. errors not caught by using exponential smoothing c. a development that cannot normally be anticipated d. failure to properly execute the SO&P process plan

c. a development that cannot normally be anticipated

Focused production is a. a strategic decision to make only what the market desires. b. used by those firms not sure of the market demands. c. a strategy in which a given plant produces one or two items of the company's total product line. d. a trend in the electronics industry with manufacturing in China.

c. a strategy in which a given plant produces one or two items of the company's total product line.

Full collaboration is the dynamic combination of a. buyers, sellers, retailers, and 3PLs. b. buyers, sellers, retailers, 3PLs, and appropriate government agencies. c. both vertical and horizontal collaboration. d. buyers and sellers only.

c. both vertical and horizontal collaboration.

Desirability refers to a. performance reporting and scorecarding. b. attractive packaging choices. c. characteristics that influence modal selection. d. ride quality.

c. characteristics that influence modal selection. (pg 442)

16. Which major locational determinant considers locating near the competition? a. labor climate b. quality of life c. company preference d. supplier networks

c. company preference

16. 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. a. warehouse system b. logistics-oriented system c. cost center d. value neutral

c. cost center

In the Item Procurement Importance Matrix, what is described as HIGH RISK, HIGH VALUE? a. generics b. commodities c. criticals d. distinctives

c. criticals (pg 144)

The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions. a. channel orders b. vendors and suppliers c. customer demand d. SO&P processes

c. customer demand

As the number of picks per order picker decreases on a given tour, his/her total time out _____ and the time per pick _____. a. decreases; decreases b. increases; increases c. decreases; increases d. increases; decreases

c. decreases; increases

Ordering cost refers to the expense of placing an order and a. includes the cost of capital. b. relates to the material management concept. c. does not include the cost of the product. d. not receiving it.

c. does not include the cost of the product.

Which is NOT a major challenge for many established manufacturers? a. competition b. customer demand c. expanding product life cycles d. pressure for efficiency

c. expanding product life cycles

Gemini products wishes to enter foreign markets but lacks the resources to do so. They evaluate their alternatives and approach Overseas Traders, LLC, a company that specializes in the foreign distribution of products of the type which Gemini manufacturers. Overseas purchases $50,000 of Gemini's products for sale on the international market. Overseas is which type of global logistics channel intermediary? a. NVOCC b. export packer c. export trading company d. customs house broker

c. export trading company

It can be argued that ___________ is the second language of logistics and supply chain management. a. quality b. manufacturing c. finance d. sales

c. finance (Page 68 in the 10th Edition)

Information and __________ are important dimensions of reverse logistics and closed-loop supply chains. a. transportation b. flow c. financials d. direction

c. financials

Green laws have a. started reverse flows. b. only recently been enacted. c. had a major impact on firms. d. are still being evaluated.

c. had a major impact on firms.

Security legislation a. has not had much impact on transportation carriers. b. has caused some firms to stop offshore sourcing. c. has caused expense issues for carriers. d. has created unnecessary restrictions of legitimate trade

c. has caused expense issues for carriers.

In the Assess Supply Market step, the firm a. determines which are the least cost vendors. b. decides which vendors are located closest to the firm's plant to insure timely delivery. c. identifies all possible suppliers that might be able to satisfy the user's needs. d. defines the parameters of the sourcing strategy process

c. identifies all possible suppliers that might be able to satisfy the user's needs. (pg 147)

There are two parts to the order management process. The first is _____ and the second is _____. a. managing the order after it is received; influencing how the customer orders b. shipping the order; taking the order c. influencing how the customer orders; managing the order after it is received d. the Internet model; the traditional model

c. influencing how the customer orders; managing the order after it is received

28. Which is correct regarding the transit privilege? a. it results in only an end point, either an origin or destination, being the optimum location b. it magnifies those geographic disadvantages that companies associate with a producer's location c. it permits the shipper to stop the shipment in transit and physically change the product's characteristic d. it is normally available for any location and commodity

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

Railroads fall into a group called a. nonintegrated carriers. b. intermodal operators. c. natural monopolies. d. service challenged carriers

c. natural monopolies. (pg 425)

Which of the following is NOT an element of Order Management? a. reducing stockouts b. improving information c. optimizing mode mix d. optimizing order fill rate

c. optimizing mode mix

Which of these is not a form of purchasing? a. purchasing b. procurement c. process improvement d. sourcing

c. process improvement (Page 141 in the 10th Edition)

The main strategy behind routing guides is to a. maintain exact control. b. comply with or enforce FOB terms. c. promote supply chain excellence. d. select between modes

c. promote supply chain excellence.

29. What is the effect of tapering rates on facility location? a. pushes the raw materials sources toward the location b. pulls the facility toward the location c. pulls the location toward the source or the market d. makes the optimum location at the midpoint between raw material sources and the marketplace

c. pulls the location toward the source or the market

Which of the following is not a reactive capability strategy? a. machine flexibility b. routing flexibility c. resource requirements planning d. offshoring

c. resource requirements planning

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. a. life cycle practices b. ecological practices c. sustainability practices d. reverse logistics practices

c. sustainability practices

The term replenishment cycle refers to a. orders for raw material. b. material management. c. the acquisition of additional inventory. d. inventory and material management.

c. the acquisition of additional inventory. (Page 246 in the 10th Edition)

19. In assemble-to-order production, a. customer orders are filled from finished goods inventories, and production orders are used to replenish finished goods inventories. b. the finished product is a combination of standard and custom-designed components that meet unique needs of a specific customer. c. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer. d. highly tailored products are created for the customer whose specifications require unique engineering design or significant customization.

c. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer.

In assemble-to-order production: a. customer orders are filled from finished goods inventories, and production orders are used to replenish finished goods inventories. b. the finished product is a combination of standard and custom-designed components that meet unique needs of a specific customer. c. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer. d. highly tailored products are created for the customer whose specifications require unique engineering design or significant customization.

c. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer. (pg 187)

Potential labor problems for distribution centers may be the result of a. low pay and long hours. b. competition from nearby firms. c. the graying of America. d. awareness of these job opportunities

c. the graying of America.

Cost/value refers to: a. getting the best value for the money spent. b. U.S. firms competing in the global arena. c. the importance of cost and value at the very end of the supply chain. d. product variety.

c. the importance of cost and value at the very end of the supply chain. (Page 20 in the 10th Edition)

Those customers who are in the "Danger Zone" segment are a. likely to switch to a competitor. b. have been a customer for less than a year. c. the least profitable. d. are using ABC to drive down the price.

c. the least profitable. (Page 245 in the 10th Edition)

The recent increased focus on reverse flows is attributable to a. pressure from environmental groups. b. increases in the price of oil. c. the significant increase in volume of reverse flows. d. new environmental legislation.

c. the significant increase in volume of reverse flows.

Most retailers are essentially supply chain companies since: a. dominate the consumer market. b. own their warehouses and trucks. c. they buy products produced by others. d. engage in off-shore sourcing.

c. they buy products produced by others.

Which is the main advantage of international air transport? a. freight rates b. flexibility c. transit times d. accessibility

c. transit times

The key financial consideration in choosing between private and 3PL distribution options is: a. warehouse location(s). b. competency of in-house staff. c. volume of product being moved. d. type of product being handled.

c. volume of product being moved. (pg 385)

External Balancing Methods

change the method in which the customer orders e.g: change price, change lead time

Reliability

comprises on-time delivery and performance history, the second- and third-ranked factors for most procurement professionals. Reliability is often considered a part of a total quality management program

Capability

considers the potential supplier's production facilities and capacity, technical capability, management and organizational capabilities, and operating controls

The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs _____ hours after delivery to a port. a. 5 b. 48 c. 12 d. 24 e. 36

d. 24 (pg 43)

Demand management includes a. Flows of products. b. Flows of services. c. Flows of capital. d. All of the these answers

d. All of the these answers (Pages 209 in the 10th Edition)

Batching economies or cycle stocks usually arise from three sources. Which of these is NOT a source? a. Procurement b. Transportation c. Production d. Demand

d. Demand

To help guide the strategic sourcing process, five core principles are recognized as key drivers to achieve the desired levels of value, which one is not one of those core principles a. Access the total value b. Develop individual sourcing strategies c. Evaluate internal requirements d. Drive continuous savings

d. Drive continuous savings (pg 146)

. Which of the following is NOT a supply chain decision area regarding ROA improvement? a. Channel Structure Management b. Inventory Management c. Order Management d. Information Management

d. Information Management

Which of these is NOT a distribution support function? a. Inventory control b. Safety, maintenance, and sanitation c. Information technology d. Movement and storage

d. Movement and storage (pg 393)

In an MRP system, this document identifies all of the components required to assemble an independent demand item. a. Inventory status file b. Bill of materials c. Master production schedule d. None of these answers

d. None of these answers

Which e-commerce business model used in procurement and sourcing has a seller-operated service that consists of a number of electronic catalogs from suppliers within a market. a. Sell-side system b. Electronic marketplace c. Buy-side systems d. Online trading community e. None of the above

d. Online trading community (pg 159)

Pareto Analysis may be used to classify parts, customers, or activities. When determining the Pareto segments to classify parts, you should: a. Identify 80% of the total value of all the parts as these will represent exactly 20% of the part numbers. b. Identify 20% of the inventory value as this will represent exactly 80% of the part numbers. c. Identify 80% of the number of parts as these will represent exactly 20% of the inventory value. d. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds. e. Identify 20% of the part numbers as these will represent exactly 80% of the inventory value.

d. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds.

Which of the answers below is an example of the creation of form utility by a logistics activity? a. When lumber is cut and made into a chair b. When a firm's finance manager approves customer purchases on a credit basis c. When Dell combines components with software to produce a computer to a customer's specifications d. When bulk products are broken and repackaged at a distribution center

d. When bulk products are broken and repackaged at a distribution center ( pg 56)

19. The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as a. a zero point. b. a source point. c. a breakeven point. d. a center of gravity.

d. a center of gravity.

The weighted moving average method assigns a. a value in each period being averaged. b. a weight greater than 1. c. information based on a simple average. d. a weight to each previous period.

d. a weight to each previous period. (Page 218 in the 10th Edition)

Distribution facilities can provide numerous services, depending on the requirements of the supply chain. Which of these is not a typical service? a. assortment b. accumulation c. allocation d. activity

d. activity

18. Which of these is NOT a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location? a. strategically located cross-docking facilities b. use of third-party logistics services c. customer-direct delivery d. addition of many wholesaler/distributor operations

d. addition of many wholesaler/distributor operations

12. What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network? a. change in customer service requirements b. change in corporate ownership c. shifting locations of customer and/or supply markets d. all of these

d. all of these

The distances in today's global supply chains produce a. higher cost. b. longer transit times. c. more disruptions. d. all of these

d. all of these (pg 421)

Effective order management can have an impact on a. reducing supply chain costs. b. increasing revenues. c. improving ROA. d. all of these answers

d. all of these answers

The primary tradeoffs and relationships between resources include the following: a. space vs. equipment. b. equipment vs. people. c. people vs. space. d. all of these answers

d. all of these answers (pg 377)

Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are a. quick response (QR) b. vendor-managed inventory (VMI) c. efficient consumer response (ECR) d. all of these answers.

d. all of these answers.

22. Simulation models a. guarantee optimum solutions. b. generate SAILS reports. c. search directly for the best warehouse configuration d. allow the decision maker to test the effects of alternative locations.

d. allow the decision maker to test the effects of alternative locations.

A third-party logistics firm may be defined as a. an outsource service. b. a firm that owns trucks and warehouses. c. a firm that owns trucks and warehouses and provides computer support. d. an external supplier that performs or manages all or part of a company's logistics functions

d. an external supplier that performs or manages all or part of a company's logistics functions

Customer service can be defined as a. a philosophy. b. order fulfillment. c. the SCOR model. d. anything that touches the customer

d. anything that touches the customer

Total life cycle considerations (TLC) a. mean the analysis of a waste stream. b. are being considered by manufacturing. c. can be critical to product differential. d. are figuring more prominently into reverse logistics programs

d. are figuring more prominently into reverse logistics programs

The roles of the distribution center include _____. a. balancing supply and demand b. protecting against uncertainty and promoting transportation economies c. promoting transportation economies d. balancing supply and demand, protecting against uncertainty, and promoting transportation economies

d. balancing supply and demand, protecting against uncertainty, and promoting transportation economies (pg 373)

Which is a major category of ocean shipping? a. passenger travel b. common carriers c. exempt carriers d. charter vessels

d. charter vessels

Challenges for the trucking industry include a. lack of flexibility. b. limited equipment options. c. oversupply of qualified drivers. d. competition

d. competition

Transportation efficiency promotes __________ in the supply chain. a. intermodal demand b. KPIs c. capacity d. competition

d. competition (pg 419)

Which is NOT part of dependability? a. cycle time b. safe delivery c. correct orders d. consistent pricing

d. consistent pricing

17. The reverse direction of flow has often been regarded as a a. cost center. b. cost center and a waste stream. c. necessary evil d. cost center, a waste stream, but a necessary evil.

d. cost center, a waste stream, but a necessary evil.

13. Many organizations are working more closely with a. customers. b. customers and suppliers. c. third-party logistics firms. d. customers, suppliers, and various types of logistics suppliers

d. customers, suppliers, and various types of logistics suppliers

13. Many organizations are working more closely with a. customers. b. customers and suppliers. c. third-party logistics firms. d. customers, suppliers, and various types of logistics suppliers.

d. customers, suppliers, and various types of logistics suppliers.

What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service? a. quality b. financial considerations c. reliability d. desirable capabilities

d. desirable capabilities (pg 150)

In the Item Procurement Importance Matrix, what describes HIGH RISK, LOW VALUE? a. generics b. commodities c. criticals d. distinctives

d. distinctives (pg 144)

Corporate leaders a. already understand the importance of supply chain excellence. b. are seeking to reduce corporate assets which could have serious implications for supply chain managers. c. are managing on a quarterly results because of Wall Street expectations. d. do not clearly understand the importance of supply chain excellence.

d. do not clearly understand the importance of supply chain excellence.

There are four steps in the Managing Sourcing and Procurement Processes. Which does not belong? a. determine the type of purchase b. determine the necessary levels of investment c. evaluate the effectiveness of the strategic sourcing process d. examine off shore and e-procurement suppliers

d. examine off shore and e-procurement suppliers (pg 148)

In the event of a "stockout" one of the things that could happen is: a. the vendor's plant shuts down. b. the cost of capital is increased. c. the SCOR process would come into play. d. extra shipping cost may be incurred.

d. extra shipping cost may be incurred.

Which type of global logistics channel intermediary enables goods to move through customs more easily by consolidating small shipments into more economical sizes? a. customs house broker b. NVOCC c. export trader d. foreign freight forwarder

d. foreign freight forwarder

The term functional silos refers to: a. product storage for physical supply. b. the non communication between customers and vendors. c. a technique to secure corporate marketing strategies. d. lack of coordination between departments.

d. lack of coordination between departments. (Page 210 in the 10th Edition)

The Supply Chain should a. manage all aspects of transportation, selecting the least cost when possible. b. seek to maximize profits. c. use the same techniques internationally that it uses domestically. d. manage materials and products, information, financials, and demand.

d. manage materials and products, information, financials, and demand.

An outbound-to-customer logistics system is also referred to as a. integrated fulfillment. b. dedicated fulfillment. c. store fulfillment. d. physical distribution.

d. physical distribution. (Page 209 in the 10th Edition)

Asset utilization is a very important aspect of a. KPIs. b. 3PL distribution facilities. c. commercial distribution facilities. d. private distribution facilities.

d. private distribution facilities.

There are four strategies that firms can use to balance supply and demand; price, lead time, inventory, and _____. a. transportation b. warehousing c. customer service d. production flexibility e. none of these answers

d. production flexibility

JIT is a _____ system. a. push b. Pareto's law c. MRP d. pull

d. pull

18. 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. a. delivery b. KPIs c. competition d. quality

d. quality

What are the steps in the CRM process? a. segment customer base, then measure service and improve b. segment customer base, then identify service/package c. measure service, then improve d. segment customer base, identify service/package, then measure service and improve

d. segment customer base, identify service/package, then measure service and improve (Pages 236-245 in the 10th Edition )

The least-frequently used IT-based services by customers of 3PLs are: a. transportation management (execution) b. warehouse/distribution management c. global trade management and transport sourcing d. strategic and customer-related

d. strategic and customer-related

Form utility drives the need for a. supply chain capabilities only. b. time utility and place utility. c. place utility only. d. supply chain capabilities, time utility, and place utility

d. supply chain capabilities, time utility, and place utility

The drawback of centralized inventory is: a. that it undercuts the dispersed distribution concept. b. that it increases the amount of inventory required. c. strains the ability of the carrier network. d. that it extends lead times and results in higher transportation costs.

d. that it extends lead times and results in higher transportation costs. (pg 382)

Which of the answers below is an example of the creation of form utility by a logistics activity? a. when lumber is cut and made into a chair b. when a firm's finance manager approves customer purchases on a credit basis c. when Dell combines components with software to produce a computer to a customer's specifications d. the breaking bulk and repackaging at a distribution center

d. the breaking bulk and repackaging at a distribution center

A push-based strategy works well for supply chains that focus on a. lean production. b. the anticipation of demand or without knowledge of customer orders. c. work centers and offshore sourcing. d. the immediate delivery of off-the-shelf, low-cost, standardized goods.

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

A push-based strategy works well for supply chains that focus on: a. lean production. b. the anticipation of demand or without knowledge of customer orders. c. work centers and offshore sourcing. d. the immediate delivery of off-the-shelf, low-cost, standardized goods.

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

Capacity is a. determined by lean manufacturing. b. the maximum amount of square footage available for inventory storage in a facility. c. determined by raw materials flows. d. the maximum amount of work that an organization is capable of completing in a given period of time.

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

Capacity is: a. determined by lean manufacturing. b. the maximum amount of square footage available for inventory storage in a facility. c. determined by raw materials flows. d. the maximum amount of work that an organization is capable of completing in a given period of time.

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

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called a. purchase/acquisition cost b. strategic sourcing costs c. life cycle costs d. total landed cost

d. total landed cost (pg 153)

The most important trade-off in logistics is between: a. warehousing and packaging. b. inventory and packaging. c. transportation and warehousing. d. transportation and inventory.

d. transportation and inventory. (pg 65)

While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on a. customer segmentation. b. the use of the ABC process. c. the use of the SCOR process. d. variability or consistency of this process.

d. variability or consistency of this process (Page 250 in the 10th Edition)

Inventory as an asset on the balance sheet and a _____ on the income statement. a. liability b. footnote c. statement d. variable expense

d. variable expense

Inventory is an ASSET on the balance sheet and a(n) __________ on the income statement. a. Liability b. Footnote c. Statement d. variable expense

d. variable expense

Dependent Demand

demand for a component part

Independent Demand

demand for a finished product

Other things being equal, HIGH inventory carrying costs will tend to lead to: a. use of a slower mode of transportation, such as railroads b. reducing customer service levels by lowering safety stock c. use of a more expensive mode of transportation such as motor carriers or airlines d. ordering more frequently e. B., C. and D.

e. B., C. and D.

Which two countries account for approximately 36% of the total world population? a. China and US b. US and India c. India and Russia d. Russia and China e. China and India

e. China and India (pg 30)

Which of the following statements about just-in-time (JIT) is FALSE? a. JIT helps to reduce manufacturing cycle times. b. JIT has been defined as a philosophy that centers on the elimination of waste in the manufacturing process. c. JIT seeks to eliminate non-value-added activities. d. JIT helps a firm to reduce its overall material costs. e. JIT programs usually do not impact inventory turnover rates.

e. JIT programs usually do not impact inventory turnover rates.

Which of the following is NOT a principle reason for holding finished goods inventory? a. Production economies of scale. b. Speculative investments in perishable raw materials. c. Improvement of customer service. d. Transportation economies. e. Prevention of production shutdowns due to parts shortages.

e. Prevention of production shutdowns due to parts shortages.

14. This type of fulfillment model has the manufacturer delivering its products directly to the retailers' stores. a. outsourced b. store-fulfillment c. flow-through d. integrated e. none of the above

e. none of the above

Place Utility

having the product where a consumer can purchase it. This utility requires a large amount of research to determine the most convenient and efficient location for a product

Criticals

high-risk, high-value items that give the final product a competitive advantage in the marketplace. The procurement strategy for criticals is to strengthen their value through use of new technologies, simplification, close supplier relations, and/or value-added alterations.

Distinctives

high-risk, low-value items and services such as engineered items, parts that are available from only a limited number of suppliers, or items that have a long lead time. The company's customers are unaware of or do not care about the uniqueness of distinctives, but these products pose a threat to continued operation and/or high procurement cost.

Desirable capabilities

include several that may be helpful depending on the type of purchase being made and the type of relationship desired between the customer and the supplier. The impression or image that the supplier projects has a similar effect on supplier selection, as well as cultural compatibility. Other factors that may be important include training aids, packaging, and repair service availability.

Risk

is a factor of great contemporary relevance. One way this may occur is if there is likely variability in the cost of purchased products or services that may result in higher prices. Other ways in which risk may occur include supply uncertainties and unusual variation in delivery lead times.

Resource requirements planning (RRP)

is a long-run, macro-level planning tool. It helps the operations leaders determine whether aggregate resources are capable of satisfying the aggregate production plan.

Demand Management

is a planning methodology used to forecast [predict], plan for and manage the demand for products and services. (EX: flows of products and services, information about capital, etc.) Macro levels: economics Micro levels: within individual organizations

Commodities

items or services that are low in risk but high in value. Basic production materials (bolts), basic packaging (exterior box), and transportation services are examples of commodities that enhance the profitability of the company but pose a low risk.

Generics

low-risk, low-value items and services that typically do not enter the final product. Items such as office supplies and maintenance, repair, and operating items (MRO) are examples of generics. The administrative and acquisition processing costs are more significant than the purchase price of generics, and, for some generics, the administration and processing costs may exceed the price paid for the item or service.

: When an activity is relocated to a contract manufacturer in another country, it is commonly called

offshoring

Technology

the collection of: - techniques - skills - methods and processes used in the production of goods or services or in the accomplishment of objectives

Logistics

the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption.

Why are consumers empowered?

the rise in technology, specifically social media, the abundance of choice within any given market, and the ability to get what they want, when they want, where they want it.

Internal Balancing Methods

utilize an organization's internal processes to manage the supply-demand gap e.g: production flexibility, inventory

Four Subdivisions of Logistics

- Business Logistics - Military Logistics - Event Logistics - Service Logistics

Five types of Economic Utility

- Form - Place (L) - Time (L) - Possession - Information (L)

List the five major external forces that seem to drive the rate of change and shape our economic and political landscapes.

- Globalization - Technology - Organizational & Power Shift - Empowered Customer - Government Policy & Regulation

Goals of Supply Chain Management

- Great quality - On-time delivery - Improved Customer Service - Low Transaction Costs - Improved Profit Performance - Efficient Use of Resources - Increased Market Share - Faster Speed to market new products

State four types of flows that take place in Supply Chain Networks.

- Material & Service - Information - Financial - Demand

Supply Chain Management Activities

- Operations - Logistics & Transportation - Procurement - Suppliers/ Distributers - Accounts Payable & Receivable - Warehousing & Inventory - Order Fulfillment - Sharing Customer Forecasting & Product Information

Issues within the Supply Chain

- organizations becoming more complex - collecting & storing vast amounts of data - inventory deployment - organizational relationships - measuring performance - supply chain security

-----------------CHAPTER 1--------------------------

-----------------CHAPTER 2--------------------------

-----------------CHAPTER 3--------------------------

Four Factors that will affect Logistics

1. Dollar Value- affects warehousing cost, transportation costs 2. Density- as density increases, transportation cost decreases 3. Susceptibility to damage- increasing risk of damage warehousing and transportation cost, material handling cost increases 4. Need for Special Handling- products which need special handling will increase warehousing, transportation and material handling cost

Each of the following functional areas would typically be included within logistics EXCEPT: A. customer service B. human resources/personnel management C. order processing D. transportation E. warehousing and storage

B. human resources/personnel management (Page 58 in the 10th Edition)

Which of the below is NOT one of the external forces driving the rate of change and shaping our economic and political landscape? A. Government policy B. Technology C. Environmental concerns D. Globalization

C. Environmental concerns

The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is NOT included? A. complexity B. inventory deployment C. inventory carrying costs D. technology

C. inventory carrying costs (Page 20 in the 9th Edition)

One of the four supply chain flows in Figure 1 - 8 that has received increased attention from supply chain managers due to the growth in technology is:

Cash flow

Financial Flow

Consists of credit terms, payments, consignment and title ownership arrangements. This flow is especially important to the businesses so they can properly, and safely record and make financial transactions.

Information Flow

Involves transmitting orders, updating the status delivery, historical or sales data, as well as strategic information about future activities in order to facilitate joint planning. This is important for supply chains to meet customers' demands faster and more efficiently.

In order to achieve least total cost logistics, management must minimize all logistics costs.

False

Government Policy & Regulation

Heavy government-imposed regulations are enforced by federal and state agencies that oversee the operations, service offerings, performance, and expansion of most financial-service firms.

Possession Utility

How a consumer comes into possession of the product. ( Generally cash, check, credit card.)

Information Utility

Involves communication with the consumer. Ex: a person explaining features and benefits, labeling, packaging

Material & Service Flow

Involves the movement of goods from a supplier to a customer, as well as any customer returns and service needs. This is important because it satisfies customers when their orders are delivered in a timely, reliable, damage-free manner

Demand Flow

Involves the synchronization of supply and demand by detecting and understanding demand signals and making appropriate adjustments to demand changes more effectively.

Organizational Consolidation & Power Shift

Social media and other factors are fueling rapid changes that are creating power shifts within and around organizations. The dynamics of these shifts reflect a move from power structure to structures of influence.

Empowered Customer

The behavioral shift of individuals concerning their expectations of their interactions with their suppliers and partners.

Globalization

The integration among the people, companies, and governments of different nations. A process driven by: -international trade - investment - information technology. This process has effects on -environment -culture -political systems -economic development and prosperity -human physical well-being in societies around the world.

Supply Chain Management

The management of the flows between and among supply chain stages to maximize total supply chain surplus. It integrates the activities that acquire materials and services, transform them into intermediate and final products, an deliver them to customers

Time Utility

The product is available to the consumers at the best or most efficient time. Marketers increase the economic value of the product by having it available when consumers want to purchase the product.

Where is a megacity most likely to develop? a. Asia b. Canada c. France d. England

a. Asia

The value that is added to goods through a manufacturing or assembly process is: a. form utility b. place utility c. time utility d. possession utility

a. form utility (Page 56 in the 10th Edition)

Identify the proper sequence of the three "flows" in the supply chain. 1. Product 2. Cash 3. Information a. 1, 2, 3 b. 1, 3, 2 c. 2, 1, 3 d. 3, 2, 1 e. None of these answers

b. 1, 3, 2 (pg 17)

Adam Smith in his renowned treatise, THE WEALTH OF NATIONS, provided not only a rationale for a market economy based upon competition, but also advanced a rationale for trade among nations called the _____. a. Theory of Comparative Advantage b. Theory of Absolute Advantage c. Theory of Temporary Advantage d. Theory of Competitive Advantage

b. Theory of Absolute Advantage

Logistics, in its simplest form a. is a military term, as it was developed originally to supply the battlefield. b. combines inbound logistics with the outbound logistics of physical distribution. c. is another term for transportation management. d. does not involve customer service or other related functions

b. combines inbound logistics with the outbound logistics of physical distribution. (Page 12 in the 10th Edition)

As a firm spends more on transportation service, cost of lost sales: a. increase. b. decrease. c. stay the same. d. can't be determined.

b. decrease (pg 70)

As the dollar value of a product decreases, its transportation cost: a. increases. b. decreases. c. stays the same. d. can't be determined.

b. decreases. (pg 70)

A ______ analysis examines a logistics system over a long time period or range of output. a. cost center analysis b. dynamic c. link node analysis d. least cost analysis

b. dynamic (pg 82)

Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury pontoon boats for customers on the East coast of the United States. Each boat requires thousands of parts purchased from over 1,000 vendors. A number of boats are in production at any one time, so a large number of parts constantly arrive and are stored. Once a boat is finished, it is sailed up the coast to a convenient port for customer delivery. Which type of logistics system does Water Cruisers use? a. balanced system b. heavy inbound c. heavy outbound d. reverse system

b. heavy inbound

One of the major challenges of supply chain management is: a. forward buying. b. maintaining the visibility of inventory. c. building safety-stock inventory. d. pushing inventory back to vendors.

b. maintaining the visibility of inventory. (Page 19 in the 10th Edition)

All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list: a. transportation b. marketing c. scheduling d. forecasting

b. marketing (Page 55 in the 10th Edition)

15. The demographics of our society has changed because: a. the "Baby Boom" generation is now turning 60. b. of the increase in two-career families and single-parent households. c. of immigration. d. birth rates have changed.

b. of the increase in two-career families and single-parent households.

The utility that is created by moving goods from production points to market points where demand exists is referred to as: a. form b. place c. time d. possession

b. place

Logistics creates which utility through production forecasting, production scheduling and inventory control? a. form utility b. quantity utility c. time utility d. possession utility

b. quantity utility

An important sustainability issue that has received much more scrutiny in recent years is the: a. focus on adequate inventory levels b. reduction in packaging waste by using alternate materials c. effort to move warehouse storage closer to consumers d. emphasis on materials handling and warehouse design

b. reduction in packaging waste by using alternate materials (pg 59)

When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called a. least cost analysis. b. short run analysis. c. cost center analysis. d. link node analysis.

b. short run analysis. (pg 81)

Which of the following is not part of the Supply Chain network? a. plants b. stores c. terminals d. distribution centers

b. stores (pg 18)

A critical outcome of the supply chain is to deliver: a. profits. b. the right product to the right place. c. cost/value. d. on management's expectations.

b. the right product to the right place (Page 21 in the 10th Edition.)

What is often the largest component of logistics costs? a. inventory costs b. transportation costs c. shipper-related costs d. administrative costs

b. transportation costs (Page 58 in the 10th Edition)

Some individuals describe the current consumer as the "click here" generation because they: a. all have Internet access. b. we no longer wait for information to be "pushed out" to us. c. buy so much merchandise online. d. take little time to make purchasing decisions.

b. we no longer wait for information to be "pushed out" to us

The top ten countries account for almost "X"% of the total world population. a. 75% b. 55% c. 60% d. 45%

c. 60% (pg 30)

Which one of the countries below is NOT part of NAFTA? a. United States b. Canada c. Argentina d. Mexico

c. Argentina

. _____, _____, and _____ are the top three recipients of exports from the United States, in that order. a. China; Mexico; Canada b. Canada; China; India c. Canada; Mexico; China d. Mexico; Canada; Australia

c. Canada; Mexico; China

Which of the following is not an important issue for economic development and vitality of the economy? a. Migration b. Urbanization c. Entrepreneurship d. None of these answers

c. Entrepreneurship

The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs? a. Warehousing costs b. Transportation costs c. Promotion costs d. Packaging costs

c. Promotion costs (pg 71)

The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is not included? a. complexity b. inventory deployment c. inventory carrying costs d. technology

c. inventory carrying costs

A(n) _______ relationship exists between the cost of lost sales and inventory cost. a. reverse b. proportional c. inverse d. non linear

c. inverse (pg 70)

Outsourcing involves: a. moving company facilities away from the home office. b. hiring foreign nationals to manage parts of the business. c. obtaining materials, parts, and products from other companies. d. building a factory in another country.

c. obtaining materials, parts, and products from other companies. (Page 9 in the 10th Edition)

The product's dollar value typically affects the cost of logistics activities. Which is NOT one of these costs? a. warehousing costs b. transportation costs c. promotion costs d. packaging costs

c. promotion costs (Page 71 in the 10th Edition)

Globalization was initially driven by countries a. seeking new territories. b. outside the U.S. seeking to establish plants in the U.S. c. seeking materials and goods not available in their own land. d. sponsoring trading missions.

c. seeking materials and goods not available in their own land

Form Utility

changing raw materials or putting parts together to make them more useful

Packaging is

critical to logistics (Page 59 in the 10th Edition )

According to prediction, _____, _____, and _____ will all house so called Megacities, whereas _____ will not have any cities of this size. a. Asia; Europe; Latin America; North America b. Asia; Latin America; North America; Africa c. Africa; Europe; North America; Asia d. Asia; Latin America; North America; Europe

d. Asia; Latin America; North America; Europe

Which country is NOt one of the three top recipients of exports from the United States? a. China b. Mexico c. Canada d. India

d. India

Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors. a. This is still true and has not changed. b. Computerization has greatly increased the flow of information from the source. c. The "Big Box" stores have developed their own sources. d. None of these answers

d. None of the above

Which of the following is NOT an external factor that is shaping the economic and political landscape? a. Globalization b. Government policy and regulation c. Technology d. Organizational division

d. Organizational division

Complexity in the supply chain is caused by a. the number of SKUs. b. locations of customers and suppliers. c. transportation requirements. d. All of these answers.

d. all of these answers

Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics? a. product b. promotion c. price d. customer service

d. customer service (Page 68 in the 10th Edition)

Time utility depends on a. when the carrier picks up the shipment. b. transportation companies delivering on time. c. proper forecasting. d. having the product available when the user wants it.

d. having the product available when the user wants it.

The Supply Chain Concept: a. is very new and considered cutting edge technology. b. is highly dependent on computerization. c. is not always well understood by senior managers. d. is developed from the previous Physical Distribution concept.

d. is developed from the previous Physical Distribution concept. (page 12 in the 10th Edition)

Performance measurement is important because: a. it allows firms to rate competitors. b. without it, managers would not know how the global economy is doing. c. companies presently operating in the European Economic Community need to understand how its competitors are doing. d. lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.

d. lower-level metrics in an organization must connect directly to the high-level performance to achieve goals. (Page 20 in the 10th Edition)

What technology has helped make the physical inventory-taking process more efficient and effective? a. advances in forecasting b. transportation management systems c. just-in-time inventory d. scanning of bar-coded RFID tags

d. scanning of bar-coded RFID tags (Page 60 in the 10th Edition)

Materials handling is concerned with a. inventory levels. b. breaking bulk. c. scheduling trade-offs. d. short-distance movement.

d. short-distance movement.

Which of the following is not one of the essential factors for economic growth and increased development of global trade flows? a. Population growth and age distribution b. Urbanization c. Land and resources d. Knowledge dissemination e. Geo-political standing

LSCM Exam

Ensembles d'études connexes

Chapter 13: The Spinal Cord

Chapter Exam 5- Life Insurance Premiums, Proceeds, and Beneficiaries

Business Law-Chapter 1

Chapter 11 MIS 360

Mortgage Loan Products

exam ch 35

Myers AP Psych Unit 12 & 13

Board Review

Endocrine- Saunders

Customer Service Chapter 6 SmartBook

Chapter 6

ATI Dosage Calculations Critical Care Medications

Ch 18 review

chapter 14

Lesson 17: Real Estate Careers and The real estate license law

Semester 6, Exam 4, SGQ ENT/Laser (Wolford 2016B)

evolve adaptive quizes ob/peds

Marketing Ch.17

Relative Dating of Rock Layers by Principles

Cell & Molecular Bio Exam 1