LSCM - Exam 1
The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs ___ hours after delivery to a port
24
The top ten countries account for almost ___ of the total world population.
60%
In the Item Procurement Importance Matrix, what item is described as low risk, low value?
Generics
Which of the following is not one of the essential factors for economic growth and increased development of global trade flows
Geo-political standing
Application of the grid technique to the location of a city warehouse
Incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone
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.
Increased; a reduction
Which country is not one of the three top exports from the U.S
India
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?
Inventory carrying costs
Performance measurement is important because
Lower-level metrics in an organization must connect directly to the high-level performance to achieve goals
Financials, product and services, and information flows
MULTIPLE WAYS
One of the major challenges of supply chain management is
Maintaining the visibility of inventory
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.
None of these answers
Outsourcing involves
Obtaining materials, parts, and products from the other companies
Which of the following is true regarding optimization models?
Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation
Materials handling is concerned with
short-distance movement
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
short-run analysis
Complexity in the supply chain is caused by
the number of SKUs, locations of customers and suppliers, and transportation requirement
Which is correct regarding tapering rates?
the principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles
Which of the answers below is an example of the creation of form utility by a logistics activity
When bulk products are broken and repackaged at a distribution center
What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network?
all of these
The grid technique
assumes that the raw materials sources and finished goods markets are fixed
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
center of gravity
In the Execute Sourcing Strategy step, the most important thing is to:
choose a supplier or suppliers, depending on the objectives of the sourcing decision
In the short-run, the firm's network is ___ while in the long run it is ___.
fixed; variable
The value that is added to goods through a manufacturing or assembly process is
form utility
A(n) ___ relationship exists between the cost of lost sales and inventory cost
inverse
What is the effect of tapering rates on facility location
it pulls the location toward the source or the market
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
materials handling
What are fixed spatial points where goods stop for storage or processing
nodes
This type of fulfillment model has the manufacturer delivering its products directly to the retailers' stores.
none of these answers
Time utility depends on
o Having the product available when the user wants it
The utility that is created by moving goods from production points to market points where demand exists is referred to as ___ utility
place
The optimization model is based on:
precise mathematical procedures
A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.
true
A logistics channel is a supply chain of network organizations engaged in transfer, storage, handling, communication, and other functions that contribute to the efficient flow of goods
true
As the dollar value of a product decreases, it inventory value decreases
true
Commodities are items or services that are low in risk but high in value
true
Corporate reengineering is often a reason for examining the firm's current logistics/supply chain network
true
Facilities may sometimes be located where senior officers prefer
true
From a customer service perspective, one of the four important characteristics for global market and strategy is that companies need to attempt to standardize to reduce complexity, but they have to recognize that global markets need some customization.
true
From a customer service perspective, one of the four important characteristics for global market strategy is technology companies counteract short product lifecycle with continual upgrades and new products.
true
Given the importance of global trade to the United States, a delicate balance exists between security and the efficient flow of global commerce
true
In a commercial zone, the same transportation rate is applied from an origin to any point in the zone
true
Labor-intensive industries place significant emphasis on the availability and cost of labor
true
One could argue that the external role of technology in recent years has moved ahead of globalization as an agent or driver of change.
true
One impact that the transit privilege has on facility location is that intermediate locations can be optimum
true
Operating globally has become easier to accomplish for even individuals and small companies, because of the advances in information/communications technology
true
Procurement serves as a critical link between members of the supply chain.
true
Reduced order cycle time has become an important part of supply chain management since it can lead to lower inventory levels for customers, improved cash flow, lower current assets, and accounts receivable.
true
Tariffs and other trade barriers have been significantly reduced among many countries, allowing a much more competitive global economy
true
The efficiency and effectiveness of a logistics/supply chain operation are constrained by the location of plants and warehouses in its overall network
true
The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect
true
The last decade of the twentieth century was a period of rapid change form organization, especially businesses.
true
The scope and magnitude of trade flows between the United States and other countries have grown considerably in the last several decades.
true
The underlying logic of Adam Smith's theory was used to advance the rationalization that he called specialization of labor.
true
Transportation is the physical movement or flow of goods
true
While the total world population has been increasing on an absolute basis, the rate of increase has declined
true
e-Sourcing and e-procurement are the same
true
An advantage to dedicated fulfillment is
No disruption to store operations
The grid technique determines the highest cost facility location in an area
false
The grid technique will evaluate all transportation rates equally.
false
When a blanket rate structure is used, which factor is eliminated as a locational determinant
transportation rate
The mathematical caluation of the point of equality between systems under analysis is used for short-run/static analysis
false
The quality of life locational determinant is most important to companies that must attract and retain an unskilled, static work force
false
The utility created through the basic marketing activities is known as place utility
false
To hold down distribution cost, the lowest cost carrier should always be used
false
U.S ports can play a role in global supply chains since over 50 percent of global trade passes through them
false
Which of these is NOT a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?
Addition of many wholesaler/distributor operations
Simulation models
Allow the decision maker to test the effects of alternative locations
Heuristic models
Are able to accommodate broad problem definitions
Which one of the countries below is not part of NAFTA
Argentina
Where is a megacity most likely to develop
Asia
According to prediction, ___, ___, and ___ will house all so called Megacities, whereas ___ will not have any cities of this size
Asia; Latin America, North America; Europe
___, ___, and ___ are the top three recipients of exports from the United States, in that order.
Canada; Mexico; China
Which two countries account for approximately 36% of the total world population
China and India
Which major locational determinant considers locating near the competition?
Company preference
Which is an advantage of the grid technique for facility location?
Computationally, it is relatively easy to use
In the Item Procurement Importance Matrix, what is described as high risk, high value?
Criticals
The supply chain concept
Developed from the Physical Distribution concept
In the Item Procurement Importance Matrix, what is described as high risk, low value?
Distinctives
Which of the following is not an important issue for economic development and vitality of the economy
Entrepreneurship
Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape
Environmental concerns
The classic objective of a network design model has been to
Establish the number, location, and size of finished goods distribution centers and associated product flows
Distinctives are low-risk, high value items that are fundamental to the company's finished product.
False
Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs
False
Logistics creates which unity through production forecasting, production scheduling, and inventory control
Quantity utility
An important sustainability issue that has received much more scrutiny in recent years is the:
Reduction in packaging waste by using alternate materials
Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a
Steering committee
Which of the following is not part of the Supply Chain network?
Stores
Cost/Value refers to
The importance of cost and value at the very end of the supply chain
A critical outcome of the supply chain is to deliver
The right product to the right place
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 ____.
Theory of Absolute Advantage
The most important trade-off in logistics is between
Transportation and inventory
What is often the largest component of logistics costs
Transportation costs
Logistics, in its simplest form,
combines inbound logistics with the outbound logistics of physical distribution.
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
customer service
A ___ analysis examines a logistics system over a long time period or range of output.
dynamic
As a firm spends more on transportation service, cost of lost sales
decrease
As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will ___ and variable costs will ___.
decrease; decrease
As the dollar value of a product decreases, its transportation cost
decreases
Demand for transportation at the microeconomic level is ___ while the demand for transportation at the macroeconomic level is ___.
elastic; inelastic
A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow
false
An advantage of e-Sourcing and e-Procurement is that there is little risk involved.
false
As a firm spends more on transportation service, cost of lost sales increases
false
Customs Trade Partnership Against Terrorism (C-TPAT) was put in place to assess the vulnerability of U.S ports and to deny entry to ships from countries that do not meet U.S. security standards.
false
Globalization has had little effect on consumers
false
Honda and Toyota only manufacture automobiles in Japan
false
In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement
false
Landed costs are independent of sale/FOB terms.
false
Logistics facilities and their locations are relatively variable and easily modified in the short term
false
MPN stands for Many Foreign Nationals
false
Strategies such as compression and lean supply chains take the same amount of work to achieve in the global environment as in the domestic environment
false
Supply and demand has become less volatile as managers become more adept at controlling the elements
false
Supply chain managers no longer need to worry about suboptimization in light of today's technology.
false
The Regional Trade Agreements, the establishment of the General Agreement on Tariffs and Trade (GATT), and its 1995 successor, the World Trade Organization (WTO) have together led to multilateral trade promotion and lowered barriers to international business transactions.
false
The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs 24 hours before delivery to a port or 24 hours before vessel departure
false
The central theme behind the theory of Comparative Advantage is that if one country has an advantage (lower cost) in the production of two products, they should focus on the production of both so that they gain the greatest and trade when compared to other countries that may have a lesser advantage.
false
In the Assess Supply Market step, the firm:
identifies all possible suppliers that might be able to satisfy the user's needs.
As the length and complexity of a supply chain increases, a firm's inventory level
increase
As the dollar value of a prouct increases, pagacking costs
increases
As the weight density of a product decreases, transportation cost per pound
increases
The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs?
promotion costs
Most retailers are essentially supply chain companies since
they buy products produced by others