LSCM Final

Which of the following is NOT apart of the Supply Chain network?

a. stores b. terminals c. plants d. distribution centers a. stores

Heuristic models

are able to accommodate broad problem definitions.

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

b. all of these

Dependent demand relates to

demand for another inventory item or product

The Supply Chain Concept

developed from the previous Physical Distribution concept.

In the event of a "stockout" at your location, one of the things that could happen is

extra shipping cost may be incurred

It can be argued that ______ is the second language of logistics and supply chain management.

finance

In the short run, the firm's network is _________ while in the long run it is ________.

fixed, variable

Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.

gross sales

Green laws have

had a major impact on firms.

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

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

Methods of decreasing inventory related costs include all of the following measures EXCEPT:

increasing the number of expedited orders

Capital cost focuses on the cost of capital tied up in ________and the resulting lost opportunity from investing that capital elsewhere.

inventory

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

inventory availability within a specified order cycle time

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

Which of the following would NOT be a typical transportation management function?

keeping track of inventory in the warehouses

ALL of the following represent savings associated with volume buying EXCEPT

lower capital costs associated with the inventory investment

Which management area in an organization does not normally have transportation responsibility?

manufacturing

All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:

marketing

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

All of the following are goals of purchasing EXCEPT:

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

The logistics/supply chain network transformation team

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

Railroads fall into a group called

natural monopolies

What are fixed established spatial points where goods stop for storage or processing?

nodes

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

Oversupply is created by

phantom demand

An inbound-to-operations logistics system is also referred to as

physical supply

The traditional role of customer service at the interface between marketing and logistics manifests itself through the________ dimension of the marketing mix

place

Which of these is NOT a form of purchasing?

process improvement

The product's dollar value typically affects the cost of logistics activities. Which is NOT one of these costs?

promotion costs

What are the steps in the CRM process?

segment customer base, then identify service/package, then measure service and improve

Which of the following is NOT a result (directly or indirectly) of the Motor Carrier Act of 1980?

service levels provided by carriers have declined

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

steering committee

The term replenishment cycle refers to

the acquisition of additional inventory

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

The recent increased focus on reverse flows is attributable to

the significant increase in volume of reverse flows.

Most retailers are essentially supply chain companies since

they buy products produced by others

The classic objective of a network design model has been

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

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

total landed cost

Other things being equal, HIGH inventory carrying costs will tend to lead to all of the following EXCEPT:

use of a slower mode of transportation, such as railroads

Inventory is an ASSET on the balance sheet and a(n) __________ on the income statement.

variable expense

Assume that the cost of the most efficient logistics system for a 98% service goal is $3.1 million higher than the existing system's cost. If for each dollar of additional sales, the company incurs 76 cents in out-of-pocket costs, what incremental sales volume, in dollars, will the company need to recover the increase in logistics costs? Your answer must be accurate to the nearest dollar.

12,916,667 3,100,000/.24

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

3-5

The CBL Exam company is attempting to locate a new plant to serve the Midwest, The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the gird VERTICAL coordinate of:

3.95

Jim Bob Airlines has one 60 seat plan. On its last five flights it had 40 passengers from MSY to DFW, 36 passengers from DFW to OKL, 38 passengers from OKL to TUL, 40 passengers from TUL to FWB, and 32 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)

62 [Average seats used/Number of seats available]*100

Jim Bob Airlines has one 60 seat plan. On its last five flights it had 42 passengers from MSY to DFW, 38 passengers from DFW to OKL, 45 passengers from OKL to TUL, 33 passengers from TUL to FWB, and 35 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)

64.3

Your firm has a ROS of 13.7 percent. The company's goal is to increase sales by $486,678 this year. How much in dollars would you have to reduce your logistics costs to provide the same marginal amount of profit?

66,674,886 sales increase x ROS%= logistics savings x 100%

The CBL Exam company is attempting to locate a new plant to serve the Midwest, The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the gird HORIZONTAL coordinate of:

7.11

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

ISO 9000

The objective of inventory management is to:

Increase corporate profitability.

Which is true regarding optimization models?

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

Which of the following is NOT a principal reason for holding finished goods inventory?

Prevention of production shutdowns due to parts shortages

The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is:

Safety Stock

Green procurement strategies usually require collaboration with _____________.

Suppliers or vendors

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

Sustainability practices

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 center of gravity

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 known as

a customs house broker

One type of demand fluctuation is caused by random variation. What is random variation?

a development that cannot normally be anticipated

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

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

The weighted moving average method assigns

a weight to each previous period

T/F: Most customers place more value on speed of delivery in filling orders than on order reliability and/or order consistency

False

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.

MRP

The utility that is created by moving goods from production points to market points where demand exists is referred to as

place

An organization selling its FOB destination holds the title to the goods until:

products reach the customer's facility

The main strategy behind routing guides is to

promote supply chain excellence

JIT is a _______ system.

pull

Which of these is NOT a freight document?

routing guide

WIP inventories are

associated with manufacturing

Which of the following statements about just-in-time (JIT) is FALSE?

Jit programs usually do not impact inventory turnover rates.

Which of following is the "marketing mix"?

distribution, price, product, promotion

Air carriers were historically looked upon as

emergency only carriers

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

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

The term functional silos refers to:

lack of coordination between departments

Which is NOT a part of dependability?

consistent pricing

Ordering cost refers to the expense of placing an order and

does not include the cost of the product.

A _________ analysis examines a logistics system over a long time period or range of output.

dynamic

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

electronic marketplace

Each of the following, if true, supports the claim above EXCEPT

human resources/personnel management

Those customers who are in the "Danger Zone" segment are

the least profitable

Challenges for the trucking industry include

competition

The reverse direction of flow has often been regarded as a

cost center, a waste stream, but a necessary evil

If demand and lead time are constant, only___________ is necessary.

cycle stock

In the Item Procurement Importance Matrix, what item is described as high risk, low value?

Distinctives

Seasonal stocks are NOT influenced by

EOQ

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

is one of the most commonly used techniques.

Exponential smoothing

Information and __________ are important dimensions of reverse logistics and closed-loop supply chains.

FINANCIALS

T/F: Management will automatically achieve least total cost logistics by minimizing inventory carrying costs.

False

T/F: The "value-of-service" pricing approach establishes a lower limit of transportation prices or rates

False

T/F: The manufacturer must lead the channel design process regardless of the relative market power and financial strength of the members of the supply chain

False

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

False

Pareto Analysis may be used to classify parts, customers, or activities. When determining the Pareto segments to classify parts, you should:

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.

T/F: EOQ models exist that include adjustments for volume transportation rates and for quantity discounts.

True

T/F: 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

T/F: If a firm concentrates on reducing the individual costs of each separate logistics function or activity, overall logistics costs may NOT reduce

True

Activity Based Costing

can be combined with customer segmentation

What vendor selection criteria are described by production capability, labor relations, and operating controls?

capability

Desirability refers to

characteristics that influence modal selection

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

commodity markets