MKT 365- Final
the return rates for online purchases is approximately ___ percent
30%
approximately ____ percent of the world's population currently uses the internet
35%
Depending on industry and product type, reverse logistics costs as a percent of revenue can range between ____ and ____ percent.
3; 6
The general idea behind ____ is that one company allows a specialist company to provide it with one or more logistics functions.
3PL
_____ distinct international methods of payment exist
4
the balanced scorecard approach is based on the belief that management should evaluate their business from ____ distinct perspectives
4
a _____ logistics organization implies that the corporation maintains a single logistics department that administers the related activities for the entire company from the home office
centralized
a primary advantage of ___ logistics is its relative efficiency, whereas a primary advantage of ____ logistics is its customer responsiveness
centralized; decentralized
a _____ specifies the country in which a product is manufactured and can be required by governments for control purposes or by an exporter to verify the location of manufacture
certificate of origin
what two countries account for approximately 1/3 of the world's population ?
china and india
a(n) ______ rate simplifies each of the three primary rate factors- product, weight, and distance
class
____ systems consider the reverse flow of products, their reuse, and the marketing and distribution of recovered products
closed-loop
with respect to density, a vehicle loaded with ____ is most likely to cube out
coal
which of the following is not an example of a lean inventory approach?
collaborative planning, forecasting, and replenishment
a ___ is similar in nature to a domestic bill of lading and summarizes the entire transaction
commercial invoice
a(n) ____ rate refers to a specific rate for every possible combination of product, weight, and distance
commodity
____ help various stakeholders—employers, suppliers, customers—work together by interacting and sharing information in many different forms.
communication systems
Although nearly any organization can be part of a supply chain, supply chain management requires:
companies to adopt an enterprise-to-enterprise point of view
_____ items refer to those that are used or distributed together
complementary
two key factors, ___ and ____, have sparked much of the technological change affecting supply chains
computing power; internet
dimensional weight ____
considers a shipment's density
freight forwarders ____
consolidate the shipments of several shippers
a unit load involves
consolidation of several units into larger units to improve efficiency in handling and to reduce shipping costs
____ is the process of taking corrective action when measurements indicate that the goals and objectives of customer service are not being achieved
control
what component of customer service focuses on the ease of doing business with a seller?
convenience
which of the following is not a name/term for a long-term mutually beneficial supply chain agreement?
coopetition
____ refers to "how we do things around here" and reflects an organization's vision, values, and strategic plans
corporate culture
which of the following represents the preferred hierarchy of strategy (from the first to be developed to the last to be developed)?
corporate, business unit, functional
______ strategy is focused on determining the goals for the company, the types of businesses in which the company should compete, and the way the company will be managed
corporate-level
_____ refers to a process where a product is received in a facility, occasionally married with product going to the same destination, and then shipped at the earliest time, without going into longer-term storage
cross-docking
_____ refers to the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers
customer profitability analysis
the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience is the definition of:
customer service
the ownership channel consists of all parties except:
customers
The ____ concept suggests that the customer desires a product offering that is highly tailored to the customer's exact preferences
customized customer
From a logistics perspective, two of most important government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency and ____.
customs and border protection
How do data and information differ?
data are simply facts; information is a body of facts in a format suitable for decision making
efficient data mining is dependent upon _____
data warehouses
a _____ logistics organization means that logistics-related decisions are made separately at the divisional or product group level
decentralized
warehouse management systems represent an example of what general type of information management system?
decision support system
As one builds higher, building costs ____, while warehousing equipment costs tend to ____.
decrease; increase
the final phase of the order cycle is called order
delivery
the time span within which an order must arrive refers to
delivery window
the creation across the supply chain and its markets of a coordinated flow of demand is the definition of :
demand management
_____ refers to how heavy a product is in relation to its size
density
which of the following is not one of the three primary factors that transport rates are based upon?
density
in the US, ____ is the federal government body with primary responsibility for transportation safety regulation
department of transportation
which of the following is false?
detention is similar to demurrage, except that detention applies to pipelines
In general, warehousing security can be enhanced by focusing on people, ____, and ____.
facilities; processes
T/F: "data" and "information" are synonymous terms
false
T/F: the effete and efficient use of information allows organizations to either reduce costs or improve customer satisfaction
false
all are characteristic of private warehousing, except ___
feasible when demand patterns are irregular
which of the following is not a characteristic of advances in order pick technology?
fewer employee accidents
which of the following is not a potential benefit of transportation management systems?
fewer stockout
T/F: Logistics is only concerned with forward flows, that is, those directed towards the point of consumption
False
T/F: a general rule of thumb is that the actual time to implement an ERP system may range from 1/5 to 2 times longer than the time period specified by the ERP vendor
False
T/F: a transaction processing system helps people work together by integrating and sharing information in many different forms
False
T/F: about 25 % of the world's population currently uses the internet
False
T/F: cloud-based software allows for a great deal of customization
False
T/F: correlation analysis uses sophisticated quantitative techniques to find "hidden" patterns in large volumes of data
False
T/F: demand forecasting is not considered to be a logistics-related activity
False
T/F: dual distribution refers to an alliance that allows customers to purchase products from two or more name-brand retailers at one store location
False
T/F: global positioning implementations often pay for themselves within 6 months
False
T/F: in mass logistics, groups of customers with similar logistical needs and wants are provided with logistics services appropriate to those wants and needs
False
T/F: inter functional logistics attempts to coordinate materials management and physical distribution in a cost efficient manner that supports an organization's customer service objectives
False
T/F: intermediaries assume ownership of goods while they're in the marketing channel
False
T/F: it is better for a logistics manager to be a herbalist rather than a specialist
False
T/F: landed costs refer to the price of a product and its source
False
T/F: logistical decision tend not to be impacted by marketers' growing emphasis on offering sustainable products
False
T/F: logistics has played a minor role in the growth of global trade
False
T/F: market demassification suggests that the customer desires a product offering that is highly tailored to her/his exact preference
False
T/F: one benefit to transportation management systems is fewer stockouts
False
T/F: physical distribution is synonymous with materials management
False
T/F: software viruses are viewed as the most important information technology issue that companies face today
False
T/F: the four general types of economic utility are production, possession, time and place
False
T/F: the internet has emerged as the measuring stick for logistics information technology during the first decade of the 21st century
False
T/F: the ownership channel is the one where buy and sell agreements are reached
False
T/F: the return rates associated with e-commerce are quite similar to those associated with other kinds of retailing
False
T/F: the sorting function takes place between retailers and the consumer
False
T/F: there are few logistical similarities between online and in-store retailing
False
T/F: there is no linkage between the promotions and logistics channels
False
T/f: in a reverse auction, one seller invites bids from multiple buyers
False
T/f: the finance department tends to measure inventory in terms of units while logistics tends to measure inventory in terms of its cost/value
False
T/f: the origin of ERP systems can be traced back to finance and manufacturing
False
T/f: the purpose of logistics is to maximize customer service
False
t of f: Radio frequency identification is the most popular automatic identification system currently in use
False
T/f: electronic procurement uses the internet to make it easier, faster, and less expensive for an organization to purchase goods and services
True
T/f: one prominent drawback to radio-frequency identification (RFDI) involves privacy concerns
True
T/f: postponement is the delay of value-added activities such as assembly, production and packaging to the latest possible time
True
T/f: reductions in economic regulation allowed individual transportation companies flexibility in pricing and service
True
which countries rank first, second, and third, respectively in terms of highway mileage?
US, China, India
Globally Harmonized System of Classification and Labeling of Chemicals (GHS) was developed by the ____
United Nations
what is the largest transportation company (by revenues) in the US?
United Parcel Service (UPS)
With respect to gift giving and gift receiving, ____ refers to money paid before an exchange.
a bribe
which of the following statements is true?
a common cause of third-party logistics failure is unreasonable and unrealistic expectations
what is a fourth-party logistics provider?
a company that ensures that various third-party logistics companies are working toward the relevant supply chain goals and objectives
An invoice submitted by the carrier requesting to be paid is ____.
a freight bill
With respect to gift giving and gift receiving, ____ refers to money paid after an exchange.
a kickback
what international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has compiled with applicable terms and conditions of the particular transaction?
a letter of credit
A logistics information system begins with:
a logistics manager requesting information
Over 80% of customers view packaging as ____.
a major environmental issue
which of the following is not a key piece of classification and labeling information provided by the GHS?
a picture of the chemical or hazardous material
landed costs refer to:
a price that includes both the cost of the product plus transportation to the buyer
which of the following statements is false?
a product's chemical characteristics have little to no influence on the way the product is handled
a brownfield is _____
a property for which use and redevelopment is complicated by past use
each of the following is true, except:
a truckload shipment involves only one customer
liability for loss and damage is one factor used to determine a product's freight classification. which of the following is not a loss and damage consideration ?
ability to load freight on top of a commodity
which of the following is not potential benefit associated with procurement cards (p-cards) ?
ability to use them in non-domestic markets
each of the following is a component of inventory carrying costs except:
accounting cost
____ involves bringing together similar stocks from different sources
accumulating
____ is bringing together similar stocks from different sources
accumulating
____ and ____ refer to adjustments associated with the quantity of product.
accumulating; allocating
procurement's historical focus is many organizations was to
achieve the lowest possible cost
international freight forwarders can provide a number of functions. which of the following is not one of them?
all of the above are possible functions
which of the following is not a possible reason for a facility closing?
all of the above are possible reasons
which of the following is not a potential type of logistics strategy decisions?
all of the above are potential logistics strategy decisions
which of the following is not a potential outcome from a supply chain's failure to be fast and agile?
all of the above are potential outcomes
which of the following is not one of the processes in the SCOR model?
all of the above are processes in the SCOR model
which of the following is not a possible quality of life consideration in facility location?
all of the above are quality of life considerations
all of the following are reasons why logisticians should be concerned about theft, except:
all of the above are reasons to be concerned about theft
suppose that a logistics manager is able to eliminate some unnecessary inventory. which reduces the value of current assets as well as total asset value. what is the corresponding impact on inventory turnover and return on assets?
both inventory turnover and return on assets will increase
which of the following is false
automation refers to equipment that complements, rather than replaces, human contact
under conditions of certainty, a reorder point is equal to ____
average daily demand times the length of the replenishment cycle
what is the most frequent source of injuries among warehousing personnel?
back and shoulder injuries
what do we call a system of accounts that records a country's international financial transactions?
balance of payments
the ____ reflects the assets, liabilities, and owners' equity at a given point in time
balance sheet
the most popular automatic identification system currently in use is ____
bar code scanners
_____ stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle
base
_____ refers to a process that continuously identifies, understands, and adapts outstanding processes inside and outside an organization
benchmarking
____ refers to the collection of large amounts of near-real-time data collected through a variety of sources such as sensors and smart phones, among other
big data
____ are stores with large amounts of both floor space and product for sale
big-box retailers
the most important single transportation document is the ____
bill of lading
_____ stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time
buffer
strategy at a _____ level is primarily focused on the products and services provided to customers and on finding ways to develop and maintain a sustainable competitive advantage with these customers
business unit
the processing point for a pure material ____
can be anywhere near the source and the market
which of the following is an advantage of a decentralized logistics organization?
can be responsive to customer service requirements
the economic order quantity (EOQ) deals with calculating the proper order size with respect to ____ costs and ____ costs
carrying; ordering
Shipping conferences refer to ____.
cartels of ocean vessel operators operating between certain trade areas
____ looks at how long an organization's cash is tied up in receivables, payables, and inventory
cash-to-cash cycle
which forecasting technique assumes that one or more factors are related to demand and that this relationship can be used to estimate future demand?
cause and effect
channel intermediaries:
fill niches
The ____ department often measures inventory in terms of its cost or value in dollars, whereas ____ tends to measure inventory in terms of units
finance; logistics
how does the weighted center-of-gravity approach to location analysis differ from the center-of-gravity approach to location analysis?
the weighted approach considers shipment volume
multiple sourcing uses more than one supplier in hopes of increased competition, improved market intelligence, and
greater supply risk mitigation
______ refers to the sum of the gross domestic product of all countries
gross world product
concerning the EOQ model, if demand or annual usage increases by 10%, then EOQ will ___
increase
inventory flow diagrams illustrate that safety stock can prevent two problem areas, ___ and ___
increased rate of demand; longer-than-normal replenishment
a key advantage of variable slot locations in warehouse is
increased space utilization
productivity improvement efforts in logistics are often directed towards ____
increasing output while holding input constant
____ combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved
supply chain analytics
Surveys and analog techniques are examples of ____ forecasting.
judgemental
which forecasting technique tends to be appropriate when there is little or no historical data?
judgemental
the text suggests that___ often represents the best opportunity to improve the effectiveness and efficiency of an order cycle
order picking and assembly
which of the following is not a trade-off in warehousing design?
order picking versus order taking functions
_____ refers to the time from when the seller receives an order until an appropriate location is authorized to fill the order
order processing
the order cycle is composed of each of the following except:
order retrieval
Classifying orders according to pre-established guidelines so that a company can prioritize how orders are to be filled refers to ____.
order triage
integrated air carriers _____
own all their vehicles as well as pick up and delivery facilities
the balance sheet reflects the assets, liabilities, and ____ at a given point in time
owner's equity
which channel covers the movement of title to the goods?
ownership
___ refers to materials used for the containment, protection, handling, delivery, and presentation of goods
packaging
the building blocks concept is associated with which logistical function?
packaging
what has been described as the "last frontier" of logistics savings opportunities?
packaging inefficiencies
the basic unit in unit loading is a _____
pallet
firms that specialize in carrying packages that weight up to 150 pounds are called ______
parcel carriers
which of the following is not a source of income for international freight forwarders?
payment for freight pick up and delivery
the predominant commodity moved by barge transportation is _____
petroleum
Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:
supply chain collaboration
tailored business relationships between two supply chain members refer to:
supply chain partnership
which of the following is not a way to reduce inventory levels?
supply-push replenishment
A focus on satisfying internal customers is associated with which procurement objective?
supporting operational requirements
Buying the right products, at the right price, from the right source, at the right specifications, in the right quantity, for delivery at the right time to the right internal customer is associated with what procurement objective?
supporting operational requirements
with respect to US economic regulation, the _____ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail merges and some jurisdiction over motor carriers, domestic water transportation, and pipelines
surface transportation board
The _____ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas
systems
a ____ is a device used to monitor and control the actions taken by a driver and his/her vehicle
tachograph
supply chain collaboration can be classified as transactional, strategic, or ____ in nature
tactical information sharing
____ are taxes that governments place on the importation of certain items
tariffs
according to the text, ____ has been at the corner of the changes taking place that affect the supply chain
technology
Which concept refers to the storage of finished product and movement to the customer?
physical distribution
which of the following is false?
pictures are preferable to words for labeling a product
the materials stolen in ____ are usually for the employee's own use
pilferage
what is the primary difference between pilferage and theft?
pilferage involves a firm's own employees, while theft involves efforts from outsiders
_____ is the most reliable form of transportation
pipeline
_________ utility refers to having products available where they are needed by customers
place
what is the first step in a global sourcing development model?
planning
Automatic identification systems are an essential component in ____
point-of-sale systems
what concepts can be viewed as a combo of processes, functions, activities, relationships, and pathways along which products, services, info, and financial transactions move in and between enterprises from original producer to ultimate end user or consumer?
supply chain
which of the following statements is false?
selecting suppliers is the final step of the supplier selection and evaluation process
which of the following is false?
senior management commitment to supply chain management occurs in one of every two organizations
what are multichannel marketing systems?
separate marketing channels that serve an individual customer
a _____often serves as the basis for a country's official export statistics
shipper's export declaration
a ______ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together
shipper's mark
which of the following is false?
shippers or carriers are entitled to a product's full retail value when filing a freight claim
The processing point for a weight-losing raw material ____.
should be near its source
The processing point for a weight-gaining raw material ____.
should be near the final market
what is a perfect order?
simultaneous achievement of relevant customer metrics
in a(n) _____ approach, all relevant software applications are provided by a single vendor
single integrator
with respect to the supplier selection and evaluation process, ____ looks at both the internal and external environment within which supply decision is to be made
situation analysis
a cost trade-off is a situation where:
some costs increase and some costs decrease
___ refers to separating products into grades and qualities desired by different target markets
sorting out
____ stock refers to inventory that is held for several reasons, to include seasonal demand, projected price increases, and potential shortages of a product
speculative
the most relevant general software package for logisticians is ____
spreadsheets
Concerning the EOQ model, if the ordering costs increase by 10% and the product value increases by 10%, then the EOQ will ____.
stay unchanged
____ refers to being out of an item at the same time there is a demand for it
stockout
which of the following is not an assumption associated with the basic EOQ model?
stockouts are permitted
___ refers to how easy commodity is to pack into a load
stowability
___ collaborations offer the best opportunity for improving supply chain performance
strategic
_____ products refer to those that customers view as being able to fill the same need or want as another product
substitute
a degree of aggressive procurement involvement not normally encountered in supplier selection refers to:
supplier development
with FOB destination, freight prepaid ____
the seller pays the freight charges and owns the goods in transit
order transmittal is:
the series of events that occur between the time a customer places an order and the time the seller receives the order
what provides the framework for conducting return on assets analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?
the strategic profit model
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive:
the wholesale price, plus freight if previously paid
which of the following statements about service parts logistics is false?
the worldwide economic slowdown of 2008 and 2009 caused a decrease emphasis on service parts logistics
all of the following are true except:
there has been a decrease in maquiladoras in recent years
co-branding allows customers to purchase products from two or more name-brand retailers at one store location. Which of the following statements about co-branding is false?
they create relatively few logistical challenges
Small shipments are defined as those that:
weigh more than 150 pounds but less than 500 pounds
product density refers to a product's ____
weight per volume
which of the following is not one of the four questions associated with effective management or hazardous materials storage?
what is the material's source
an order bill of lading is used:
when a shipment is started before the buyer is known
what has emerged as the measuring stock for logistics information technology in the 21st century?
wireless communication
T/F: the financing channel handles a company's credit and payment for goods
True
T/F: the idea behind point-of-sale systems is to provide data to guide and enhance managerial decision making
True
T/F: the internet is the primary transaction medium for cloud-based software
True
T/F: the key to the total coat approach is that all relevant cost items are considered simultaneously when making a decision
True
T/F: the most significant contribution that the logistics channel makes to the overall channel process is the sorting function
True
T/F: the primary advantage of simulation is that it enables a firm to test the feasibility of proposed changes at relatively little expense
True
T/F: the smaller order quantities occasioned by online retailing tend to favor transport companies with extensive delivery networks and expertise in parcel shipments
True
T/F: the sorting function has 4 steps
True
T/F: the systems approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of the major functional areas of a firm
True
T/F: the worldwide public market for cloud computing grew nearly 20% between 2011 and 2012
True
T/F: transportation companies that have implemented global positioning systems have reported increased worker productivity, reduced operating costs, and improved customer relations
True
T/F: transportation represents the most costly logistics activity in many organizations
True
T/F: wal-mart and its vendors make extensive use of data mining to improve supply chain efficiency and effectiveness
True
T/f: big data refers to large amounts of near-real-time data collected through a variety of sources such as sensors and smart phones, among others
True
T/f: disintermediation refers the removal of intermediaries between producer and consumer
True
inventory costs in the US in the 21st century represent approximately ____ of total logistics costs
1/3
One estimate suggests that only approximately ____ percent of a facility's cubic capacity is actually occupied by product.
10
incoterms are generally revised approximately every _____ years
10
Truckload carriers focus on shipments of greater than ____ pounds.
10,000
According to Occupational Safety and Health Administration, approximately ___ employees are killed each year while operating forklifts in warehousing facilities
100
the porter security filing (ISF) rule requires importers to file ___ pieces of information and carriers to file ____ pieces of information
10; 2
Dead inventory (dead stock) refers to a product for which there is no sales during a ____ month period.
12
Widespread reductions in economic regulation of US transportation carriers occurred in ____
1970s and 1980s
The concept of logistics social responsibility, or corporate social responsibility issues that relate directly to logistics, did not emerge until which decade?
1990-1999
inventory carrying costs in the US in the 21st century have ranged between ____ and ____ percent
19; 24
biodegradable plastics cost ____ as much as conventional plastics
2 times
transportation accounts for approximately _____ of all petroleum consumption in the US
2/3
Turnover rates for expatriate workers current run between ____ percent.
20 and 40
what container size is often used to rank water ports and measure containership capacity?
20 foot container
US news and world report suggests that logistics employment should increase by ___ percent through 2018
20%
the worldwide public cloud services market grew by approximately ____ percent
20%
Narrow aisles can store ____ to ____ percent more product than conventional width aisles.
20; 25
how many countries in the world do not currently use the metric system of measurement?
3
U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars.
48, 24
Logistics measurement systems have been traditionally designed to include information on how many types of performance?
5
The text outlines a supplier selection and evaluation process that consists of ____ steps.
5
a commonly used rule of thumb is that it costs approximately ____ times as much to get a new customer as it does to keep an existing customer
5
in general, there are ____ possible ways to transmit orders
5
there are ____ modes of transportation
5
World trade grew at an average annual rate of approximately ___________ percent between 1991 and 2011.
5.5%
____ pounds is the approximate weight at which there is a noticeable increase in injuries, particularly back injuries, from manual handling.
50
a general rule of thumb is that the services received represent only about ___ percent of the taxes paid
50
National Motor Freight Classification (NMFC) currently has 18 separate ratings, or classes, that range for class 50 to class _____
500
Worker Adjustment and Retraining Notification Act (WARN) mandates that employers give _____ days notice about plant closings and mass layoffs
60
approximately ___ of cross-border shipments move by water transportation
60%
approximately ____ percent of US adult women are currently in the workforce
60%
procurement costs often range between ____ of an organization's revenues
60-80%
in the US, commercial airline pilots must retire at age _____
65
the current global supply chain forum (GSCF) model identifies _____ key processes associated with supply chain management
8
The cost of sending a shipment by air transportation from China to the United States can be ____ times more expensive than sending a shipment by water transportation between the two countries.
8-10
from a space utilization perspective, one pallet occupies _____ times more space than a plastic slip sheet
80
an unhappy customer will tell ____ other people about her/his unhappiness
9
inland waterways in the US are dredged to a depth of _____ feet, which tends to be the minimum depth required for most barges
9
what is the time limitation within which a freight claim must be filed?
9 months from delivery date
____ recognizes that all inventories are not of equal value to a firm and thus all inventories should not be managed in the same way
ABC analysis of inventory
Which of the following statements is false?
China ranks first in the world in terms of highway mileage
T/F: EDI is no longer an important logistics technology in the 21st century
False
____ refers to the application of mathematical tools to large bodies of data in order to extract correlations and rules
Data mining
T/F: Logistics clearly contributes to time and form utility
False
Which of the following statements about EDI is not true?
EDI can result in increased inventory carrying costs
which of the following statement about ERP is false?
ERP's origins can be traced back to finance and manufacturing
Short-sea shipping is widely accepted and practiced in ____.
Europe
which of the following is not a possible payment option for US domestic shipments?
FOB origin, freight collect and charged back
T/F: "timely" information can refer to its nature and quality
False
the two most prominent supply chain management process frameworks are the supply chain operations reference (SCOR) model and the ______
Global Supply Chain Forum (GSCF) Model
Which of the following is not a reason for the increased importance of logistics?
Growing power of manufacturers
____ is a set of generic standards used to document, implement, and demonstrate quality management and assurance systems
ISO 9000
what organization regulates the packaging of international shipments?
International Air Transport Association
which of the following statements about the lean approach and JIT is false?
JIT tends to focus on product movement from manufacturer to retailer
_____ refers to the integration of Six Sigma and the Lean approach
Lean Six Sigma
All of the following are types of economic utility, except:
Production
In 2010, the three most populous U.S. states were located in the West, Southwest, and ____.
Northeast
in a reverse auction, ____
One buyer invites bids from multiple sellers
which of the following statements about radio-frequency identification (RFDI) is false?
RFDI only offers read capabilities
ABC analysis of inventory:
Recognizes that inventories are not of equal value to a firm
as of 2012, ____ is the world's busiest container port
Shanghai
the primary advantage of ____ is that enables a firm to test the feasibility of proposed changes at relatively little expense
Simulation
incoterms refer to _____
Terms of sale for international shipments
T/F: the current definition of logistics, as promulgated by the council of supply chain management professionals, suggests that logistics is part of the supply chain process
True
T/F: EDI is an example of a logistics-related transaction processing system
True
T/F: Humanitarian logistics represents an emerging application of logistics to not-for-profit organizations
True
T/F: There are suggestions that consultant fees for ERP implementations may be three times as costly as the software itself
True
T/F: US news and world report has highlighted logistician as on of the 50 best careers
True
T/F: a broker is a type of intermediary often associated with the negotiation channel
True
T/F: a commonly used logistical intermediary is the freight forwarder
True
T/F: a logistics information system begins with a logistics manager requesting information and ends with the manager receiving regular and customized reports
True
T/F: absolute and relative logistics costs in relation to gross domestic product vary from country to country
True
T/F: activities that can be controlled by a warehouse management system include inventory management, determination of storage locations, and order shipping
True
T/F: application-specific software is a type of decision support system
True
T/F: in recent years, ERP vendors have begun to provide high-quality application-specific logistical capabilities
True
T/F: information technology should be regarded as a tool to help managers address organizational problems
True
T/F: internal sources of logistics information are not always as plentiful as might be desired
True
T/F: logistics offers many companies an important route for creating marketing superiority
True
T/F: long production runs sometimes result in excessive inventory or produce with limited demand for them
True
T/F: many promotional decisions, such as pricing campaigns that lower the price of certain items, require close coordination between marketing and logistics
True
T/F: office automation systems provide effective ways to process personal and organizational business data, to perform calculations, and to create documents
True
T/F: one reason for the popularity of on-demand software is that the pay-per use formula allows customers to avoid high capital investment costs
True
T/F: packaging can have both a marketing and logistical dimension
True
T/F: people-related factors such as employee resistance have been identified as a major cause of information technology implementation failure
True
T/F: stockouts refer to a situation where a company is out of an item at the same time that there is demand for that item
True
T/F: superior logistics is an essential component of corporate strategies for many big-box retailers
True
T/F: the attractiveness of ERP systems comes from their potential for lower costs as weak as increased productivity and customer satisfaction
True
_____ refers to the net advantages that can be gained by a sharing of common locations by various enterprises
agglomeration
contemporary supply chains are increasingly required to be fast and ____
agile
an organization's ability to respond to changes in demand with respect to volume and variety refers to ___
agility
____ is generally the fastest form of transportation for shipments exceeding 600 miles
air
which of the following is not a potential benefit to vendor-managed inventory?
all are VMI benefits
which of the following is not a component of ordering (order) costs?
all are components of ordering (order) costs
which of the following is not considered a general software package ?
all are general software packages
which of the following is not likely to move by air transportation ?
all are likely to move by air
which of the following is not part of the marketing channel?
all are part of the marketing channel
which of the following is not an attribute of relational exchanges?
all of the above are attributes of relational exchanges
which of the following are not an attribute of supply chain partnerships?
all of the above are attributes of supply chain partnerships
which of the following is not a barrier to supply chain management?
all of the above are barriers
which of the following is not a category associated with Kraljic's portfolio matrix?
all of the above are categories associated with Kraljic's portfolio matrix
which of the following is not a potential challenge of using procurement cards in non-domestic markets?
all of the above are challenges
all of the following are potential costs associated with ERP implementation, except:
all of the above are costs
which of the following is not a dimension of customer service?
all of the above are dimensions
which of the following is not an example of warehouse automation ?
all of the above are examples of warehouse automation
which of the following is not a factor used to determine a product's classification
all of the above are factors used to determine a product's classification
which fo the following is not a legal classification of carriers?
all of the above are legal classifications
Which of the following is not a level at which strategy can be formulated?
all of the above are levels at which strategy can be formulated
which of the following is not a logistical consequence of packaging inefficiency?
all of the above are logistical consequences
which of the following is not a possible method of order transmittal?
all of the above are methods of order transmittal
which of the following is not open for negotiation in a bilateral air agreement?
all of the above are open for negotiation
which of the following is not one of the perspectives evaluated in the balanced scorecard approach?
all of the above are perspectives in the balanced scorecard approach
which fo the following is not a political restriction on international trade?
all of the above are political restrictions
which of the following statements about a one-dock layout is false?
goods move in a straight configuration
which of the following is not a routine occurrence in global supply chains?
all of the above are routine occurrences
which of the following is not an evinormnetally friendly packaging strategy that firms might adopt?
all of the above are strategies
all of the following are suggestions for dealing with dead stock (inventory), except:
all of the above are suggestions
which of the following is false?
all of the above are true
which of the following statements regarding perishable products is false?
all of the above are true
which of the following is false?
all of the above are true in the factor-input strategy global procurement refers to buying anywhere in the world planning is the first step global procurement is driven by the factor-input
which of the following is false?
all of the above are true some organizations have expanded the order cycle should be analyzed in terms order management has been profoundly the various activities associated with an order cycle are not uniformly agreed upon
which of the following is false?
all of the above are true pure materials with weight-gaining products water is a requirement 250,000 square foot
which of the following is not a benefit to utilizing information in logistics?
all the above
____ refers to breaking a homogenous supply into smaller lots
allocating
the order cycle is ____
also called the replenishment cycle
a(n) _____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service
amodal shipper
which of the following is not a reason for why purchases are adopting a more proactive and aggressive role in the procurement process?
an excess number of suppliers currently exist
right-to-work laws refer to a situation where ____
an individual cannot be compelled to join a union as a condition of employment
A dry bulk material's ____ is important for determining the quantity that can be stored in a given location.
angle of repose
which of the following statements is false?
approximately 40% of customers who experience a problem with purchases of less than $5 will not do business with that company again
_____ refers to building up a variety of different products for resale to particular customers
assorting
a "box-maker's certificate" _____
assures railroads and motor carriers that boxes are sufficiently sturdy to meet their handling requirements
Supplier parks are a concept that developed around ____ and their suppliers in Europe.
automakers
a ______ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings
differentiation
____ refers to the removal of intermediaries between producer and consumer
disintermediation
the center-of-gravity approach to location analysis minimizes _____
distance to existing facilities
inventory turnover can be calculated by:
dividing the cost of goods sold by average inventory
a safety data sheet (SDS) is required for:
each hazardous product to be stored in a facility
which of the following is not a characteristic of contemporary voice-based order picking systems?
easily disrupted by other noises
as a general rule, labeling requirements and enforcement tends to be more stringent in ___ countries than in ___ countries
economically developed, economically developing
"How well a company does what it says it's going to do" represents ________
effectiveness
What concept refers to "how well company resources are used to achieve what a company promises it can do" ?
efficiency
_____ refers to the computer-to-computer transmission of business data in a structured format
electronic data interchange
which of the following is not a logistics-related decision support system?
electronic data interchange
______ create and maintain consistent data processing methods and an integrated database across multiple business functions
enterprise systems
Over the past quarter century, discussion of natural resources and facility location has increasingly factored in ____ considerations.
environmental
____ refers to the interaction between workers and workplace conditions
ergonomics
what is the final step in the supplier selection and evaluation process?
evaluate decision
_____ materials refer to stock that exceeds the reasonable requirements of an organization
excess
_____ refers to rapidly moving a shipment through a carrier's system
expediting
which of the following is not a basic type of demand forecasting model?
exponential smoothing
_____ act the export sales department for a manufacturer
export management companies
An ____ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself.
export packer
___ can be defined as an organization's ability to address unexpected operational situations
flexibility
the primary advantage for motor carriers is _____
flexibility
which generic strategy concentrates an organization's effort on a narrowly defined market to achieve either a cost leadership or differentiation strategy?
focus
common carriers of transportation have ____ obligations
four
in a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization
fragmented
one problem with a ___ logistics structure is that because logistics activities are scattered throughout a firm, they likely remain subservient to the objectives of the department in which they are housed
fragmented
___ and ___ are the two basic organizational structures associated with logistics
fragmented; unified
shippers' associations _____
function in a manner similar to freight forwarders
a key attribute of network organizational design is a shift from ___ to ___
function; process
_____ refers to a network of satellites that transmits signals that pinpoint the exact location of an object
global positioning systems
which of the following is false?
goals should be specific, measurable, achievable, and cost effective
which of the following is not a characteristic of public warehousing ?
good for companies dealing with large volumes of inventory
which of the following is an advantage of a centralized logistics organization?
good opportunities for freight consolidation
The existence of transportation competition, whether intermodal or intramodal, tends to ____.
have both cost and service benefits to a user
____ organizational design has its foundations in the command-and-control military operation, where decision-making and communication often follow a top-down flow
hierarchical
a(n) _____ entails the functional units of an organization providing input into the other levels of strategy formulation
hierarchy of strategy
Holding high levels of inventory result in ____ inventory carrying costs and ____ stockout costs.
high ;low
An underperforming supply chain is defined as one that exhibits poor service, unproductive assets, or ____.
high variable operating costs
which of the following is not one of the three critical factors associated with the process of managing returned goods?
how many products are returned
with respect to commodity flows, logisticians are especially interested in _____ and _____
how much is being produced; where it is being produced
___ is often a major shortcoming to many global procurement plans
implementation
a free trade zone refers to an area ___
in which products can be stored, exhibited, or processed without being subjected to duties and quotas unless they enter the customs territory of the zone country
in general, the ______ measures the profitability of the products and/or services provided by a company
income statement
the _______ shows revenues, expenses, and profit for a period of time
income statement
which of the following is not a potential measure of warehousing productivity?
order fill rate
there are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the following is not one of them?
intensive distribution
____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages
intermodal
all of the following statements about logistics information systems are true, except:
internal sources of logistics information are relatively plentiful
the ____ has established six international pallet size standards
international standards organization
_____ refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns
inventory
from a business perspective, ___ taxes are analogous to the personal property taxes paid by individuals
inventory
with respect to asset turnover, _____ is typically the most relevant logistics asset
inventory
which of the following statements about international inventory management is false?
inventory for sale in one nation generally serves the need of markets in nearby nations
____ identifies opportunities to recover revenues or reduce costs associated with scrap, surplus, obsolete, and waste materials
investment recovery
consular documents _____
involve obtaining permission from the importing country for the goods to enter
a 3,047 meter (10,000 ft) runway is significant because it ____
is generally viewed as adequate for accommodating the largest existing wide-body aircraft
a pure material ____
is one that loses no weight in manufacturing
An expatriate refers to a person who ____.
is sent to work in other countries for extended periods of time
Kraljic's Portfolio Matrix
is used by many managers to classify corporate purchases in terms of their importance and supply complexity
when one country's currency is weak relative to other currencies, _______
it becomes more costly to import products to the country, but its exports surge
which statement about measuring customer service is true?
it is possible for organizations to use only one customer service metric
a key advantage of fixed slot locations in a warehouse is ___
knowledge of where specific products are located
what is considered to be the biggest drawback to public warehousing ?
lack of control by the user
which of the following is not a characteristic of plastic packaging?
lack of versatility
____ refers to focusing part of one's supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output
leagility
the total cost of ownership is associated with which of the 10 materials handling principles?
life cycle cost principle
which of the following is not one of the common causes of warehousing fires?
lightening strikes
_____ refer to major ports where thousands for containers arrive and depart each week
load centers
a ____ raises or lowers barges so that they can meet the river's level as they move upstream or downstream
lock
_______ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes
logistics
the supply chain management concept originated in what discipline?
logistics
the ____ has been established to identify uncertainty sources that can affect the risk exposure for logistics activities
logistics uncertainty pyramid model
a transportation broker ___
looks to match a shipper's freight with a carrier to transport it
single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the supply relationship as well as
lower costs per unit
with respect to a commodity's freight classification, shippers tend to prefer a ____ classification number and carriers tend to prefer a ____ classification number
lower; higher
the origins of contemporary ERP systems can be traced back to logistics and ____
manufacturing
____ plants, which are located just south of the US-Mexican border, provide much needed jobs to mexican workers and allow for low-cost, duty-free production so long as all goods are exported from mexico
maquiladora
which organizational function is not a focus of the supply chain operations reference (SCOR) model?
marketing
Every customer getting the same type and level of logistics service refers to:
mass logistics
what is dunnage?
material that is used to block and brace products inside carrier equipment
___ refers to the short distance movement that usually takes place within the confines of a building such as plant or distribution center and between a building and a transportation service provider
materials handling
The movement and storage of materials into a firm refers to:
materials management
a major advantage of the unit load is ____
mechanical devices can be substituted for manual labor
trade-offs must be made among space, labor, and _____ with respect to warehousing design
mechanization
_____ is the most popular location for near-sourcing among companies that do business in North America
mexico
which of the following is not a potential procurement objective ?
minimizing procurement costs
_____ refers to the management of various activities associated with the order cycle
order management
Procuring products from suppliers close to one's own facilities refers to ____.
near-sourcing
brokers are intermediaries that are commonly associated with the ____ channel
negotiation
which of the following does not appear on the balance sheet?
net income
what is the formula for net profit margin?
net profit divided by sales
return on assets equals:
net profit margin times asset turnover
_____ complexity refers to the growing number nodes and the associated changes to the links in the logistics system
network
a _____ organizational design attempts to create an organization that is responsive to the parameters of the contemporary business environment
network
which international logistics service provider is often confused with the international freight forwarder?
non-vessel operating common carrier
Warehousing labor safety practices in the United States are monitored by which federal government agency?
none of the above
_____ stock refers to inventory that is en route between various nodes in a logistics system
none of the above
which of the following tends to be the most important factor in carrier selection?
none of the above
with respect to the design of warehouses, one suggestion for energy savings is to make sure that dock doors are not placed on that ___ of a building
north
____ provide effective ways to process organizational business data, to perform calculations, and to create documents
office automation systems
which of the following is true?
one challenge to collaborative planning, forecasting, and replenishment is getting supply chain partners to share data
Which of the following statements is false?
online retailing and in-store retailing experience similar rates of product
less-than-truckload motor carriers ____
operate through a series of terminals
the percentage of orders that can be completely and immediately filled from existing stock is the ___ rate
order fill
which of the following is not a key shortcoming of the sweatshops associated with the electronics industry?
poor workplace ventilation
which of the following statements are false?
poorly located facilities do not impact logistical effectiveness
which of the following is not a cultural factor that can influence international logistics ?
population
_________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.
possession
_____ refers to the delay of value-added activities such as assembly, production, and packaging to the latest possible time
postponement
a major drawback to metal and plastic pallets is their ____
price
____ warehousing is owned or occupied on a long-term lease by the firm using them
private
when developing logistics strategy, a ______ strategy refers to the management of logistics activities with a focus on costs
process
____ refers to the raw materials, component parts, and supplies bought from outside organizations to support a company's operations.
procurement
Warehouses emphasize ____ and their primary purpose is to maximize ____.
product storage; usage of available storage space
the four basic components of the marketing mix include all of the following except:
production
which of the following is not a type of benefits that comes from electronic procurement?
production benefits
___ refers to the amount of output divided by the amount of input
productivity
it is important that the materials handling equipment be aligned with an organization's objectives, customers and ____
products
which of the following is not a dimension associated with socially responsible procurement?
profit
____ stock is carried to stimulate demand
psychic
multi-client warehousing mixed attributes of ____ and ____ warehousing
public, contract
procurement and ____ are viewed as synonymous terms
purchasing
_____ have a level of market concentration and dominance that is not found in the other modes
railroads
which mode is not the "best" or "worst" on any of the 6 attributes that were used to compare the modes?
railroads
in the US, ____ account for the largest share of ton-miles and ____ account for the majority of freight revenues
railroads; truck
_____ complexity centers on the implications associated with the increasing number of products that most companies continue to face in an effort to differentiate themselves with their customers
range
distribution center emphasize ____ and their primary purpose is to maximize ____
rapid movement of product; throughput
____ signifies the price charged for freight transportation
rate
cosignees are ____
receivers of freight
The general trend in recent years has been for companies to do what with their distribution networks?
reduce the number of facilities
the primary advantage to land bridge service is _____
reduced transit times
a locavore strategy ___
refers to purchasing locally grown or produced foods
inventory shrinkage:
refers to the fact that more items are recorded entering than leaving warehousing facilities
The initial focus in facility location is on a ____.
region
____ refers to satisfying current and emerging customer needs
relevancy
cargo preference rules _____
require a certain percentage of traffic to move on a nation's flag vessels
each of the following is a shipping hazard that a package may be exposed to except :
retraction
which of the following is a common measure of organizational financial success?
return on investment
supplier development is synonymous with :
reverse marketing
_____ can be defined as the process of determining how a shipment will be moved between origin and destination
routing
a ______ provides a variety of shipment info such as prep, invoicing, preferred carriers, etc
routing guide
hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of _____
safety concerns
with respect to net profit margin, the most relevant categories for logistics managers to consider are:
sales, costs of goods sold, total expenses
_____ materials are no longer serviceable, have been discarded, or are a by-product of the production process
scrap
Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ____.
the ability to offer shippers a broader service network
throughput refers to ___
the amount of product entering and leaving a facility in a given time period
what is the key differences between ISO 9000 and the baldrige quality award?
the baldrige quality aware is more externally focused than is ISO 9000
each of the following is true, except:
the bill of lading adds to the complexity of the transportation manager's job
what concept refers to the variability in demand orders among supply chain participants?
the bullwhip effect
______ has been identified as the biggest information technology challenge that companies face today
the cost of technology
which of the following situations is likely the most damaging (costly) with respect to a stockout?
the customer goes to a competitor for a purchase
Rail gauge refers to ____.
the distance between the inner sides of two parallel rail tracks
all of the following statements are true, except:
the importance of individual carrying costs factors (categories) is generally consistent from product to product
a common interface between production and logistics involves:
the length of production runs
order picking and assembly is:
the order cycle component that follows order processing
the EOQ determines:
the point at which carrying costs equal ordering costs
in the US, _____ has traditionally provided a convenient starting point when estimating the interest charges associate with maintaining inventory
the prime rate of interest
which of the following is not true of sachets?
they tend to be sold in higher-income countries
an underlying assumption of ___ forecasting is that future demand is dependent on past demand
time series
Logistics clearly contributes to ___________ and ___________ utility.
time; place
what is the most important purpose of warehouse work rules?
to keep employees from engaging in unproductive and potentially destructive activities
logistics managers use the ____ approach to coordinate materials management and physical distribution in a cost-efficient manner
total cost
what concept refers to when firms consider all the costs that can be assigned to the acquisition, use, and maintenance of a purchase?
total cost ownership
the current ratio is calculated by diving ____ by ____
total current assets; total current liabilities
what is the formula for asset turnover?
total sales divided by total assets
_____ refers to determining a shipment's location during the course of its move
tracking
electronic data interchange represents what general type of information management system?
transaction processing system
In general terms, ____ accounts for about 6% of U.S. Gross Domestic Product.
transportation
Warehousing and ____ are substitutes for each other.
transportation
____ is the actual, physical movement of goods and people between two points
transportation
weight times rate equals ___
transportation costs
_____ refers to the buying and controlling of transportation services by either a shipper or consignee
transportation management
the most costly logistics activity in many firms is ____
transportation management
what has emerged as the most popular application of on-demand logistics software (cloud computing) ?
transportation management systems
the ____ is responsible for the security of the US transportation system
transportation security administration
private transportation is most prevalent in the _____ industry
trucking
_____ pipelines carry crude oil from gathering-line concentration points to the oil refineries
trunk
in a ____ logistics structure, multiple logistics activities are combined into, and managed as, a single department
unified
One of the best pieces of advice with respect to the design of warehousing facilities is to ____.
use common sense
which of the following is not one of the generic strategies that can be pursued by an organization, as identified by strategist michael porter?
value enhancement
Under ____, the size and timing of replenishment orders are the responsibility of the manufacturer.
vendor-managed inventory
which concept refers to where one organization owns multiple participants in the supply chain?
vertical integration
Labor force ____ are a key locational determinant as supply chains become more global in nature.
wage rates
performance measurement in _____ is used to identify design and operations options that provide benefits in terms of increased speed or reduced costs
warehousing
the two areas in logistics systems where most energy costs occur are ____ and ____
warehousing; transportation
the logistics performance index_______
was created in recognition of the importance of logistics in international trade
____ materials have no economic value
waste
Demurrage charges are collected by railroads, ____, and ____.
water carriers, pipelines
