SC exam 3

An operation that​ stores, repackages,​ stages, sorts, or centralizes goods or​ materials" is the definition of A. warehousing. B. transportation. C. sustainability. D. efficiency.

A

A​ _______________ ensures that an​ organization's logistics choices are consistent with its overall business strategy and support the performance dimensions that target costumers most value. A. logistics strategy B. information strategy C. warehousing strategy D. packaging strategy

A

The​ _______________ represents the​ timely, error-free provision of a product or service in good condition. A. landed cost B. perfect order C. order total D. first order

C

​"That part of supply chain management that​ plans, implements, and controls the​ efficient, effective forward and reverse flow and storage of​ goods, services and related information between the point of origin and the point of consumption in order to meet​ customers' requirements" is the definition of A. warehousing. B. transportation. C. logistics management. D. packaging.

C

​Scholastic, the book​ publisher, has their​ suppliers, book​ printers, manufacture millions of Harry Potter books ahead of time so customers can have instant availability on the launch date. This type of inventory is A. cycle stock. B. hedge. C. anticipation. D. safety.

C

ON TEST: In general, organizations can use the operations function to gain a competitive advantage by competing on five key competitive priorities. Which of the following is not one of those priorities? a. Time b. Cost c. Flexibility d. Quality e. Location

E

"A complete supply chain dedicated to the reverse flow of products and materials for the purpose of​ returns, repair,​ remanufacture, and/or​ recycling" is the definition of A. reverse logistics systems. B. ​hub-and-spoke systems. C. packaging systems. D. material handling systems.

a

A company which sources raw materials and components from overseas will hold extra inventory of these items due to a mismatch between the timing of customer demand and supply chain lead times. This type of inventory is A. transportation. B. hedging. C. cycle stock. D. smoothing

a

Individual links in the supply chain can stabilize their production at the most efficient level by using A. smoothing inventory. B. linkage inventory C. anticipation inventory. D. safety stock.

a

Last year the Perfection Logistics Company delivered 3.1 million packages and damaged​ 45,000 deliveries, sent​ 28,000 to the wrong​ address, and was late​ 20,000 times. Assuming no package had more than one​ error, Perfection's percent perfect order is A. ​97% B. ​3,007,000 C. ​93,000 D. ​93.7%

a

Mr. Drucker uses a periodic review system to manage the inventory in his dry goods store. He likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225 sacks. It costs​ $2 to place an order for sugar and costs​ $1 to hold a sack in inventory for a year. Mr. Drucker checks inventory one day and notes that he is down to 9​ sacks; how much should he​ order? A. 6 sacks B. 30 sacks C. 9 sacks D. 15 sacks

a

One form of warehousing that features light manufacturing and packaging duties and allows firms to put off final assembly or packaging until the last possible moment is A.postponement warehousing. B. assortment warehousing. C. ​pac-man warehousing. D. spot stock warehousing.

a

Some companies want their supply chain partners​ (suppliers) to​ co-locate, i.e., move as close as possible to them. This would reduce A. transportation inventory. B. anticipation inventory. C. smoothing inventory. D. hedge inventory.

a

The drought of 2011 devastated hay crops in the plains states and horse owners ranged far and wide to purchase hay for their horses when winter arrived. Hay can be purchased​ "up north" for​ $4 a bale and a few entrepreneurs with large trailers were more than willing to pick up a few hundred bales and haul them south where demand was high. The transportation cost was​ $6 per bale and a packing and loading cost of​ $1 was typical. The landed cost of a bale of hay this winter was A. ​$11. B. ​$6. C. ​$4. D. ​$10.

a

The mode of transportation that is highly cost effective for bulky items but has relatively poor delivery speed is A. water. B. air. C. highway. D. rail.

a

The owner of a vending machine company has weekly stops to check the soda machine at NC State. She checks the inventory levels and fills the machine back up to its full restocking level. She is using which of the following types of independent demand inventory​ systems? A. periodic review system B. continuous review system C. single period system D. reorder point system

a

The​ R&H Mercantile tracks the use of boxes of macaroni and cheese​ (using a periodic inventory​ system) and has concluded that demand during lead time is normally distributed with a mean of 60 boxes and a standard deviation of 24 boxes.​ R&H Mercantile has been using 91 as a reorder point. What is the likelihood that they will run out of inventory before the next shipment​ arrives? A. about​ 10% B. about​ 5% C. about​ 0% D. about​ 20%

a

Which of these statements about reverse logistics is​ BEST? A. Reverse logistics systems are usually less​ cost-efficient than​ forward-based systems. B. Reverse logistics systems usually play no role in customer satisfaction. C. Reverse logistics systems usually use the same processes and players that comprise the​ forward-based system. D. Reverse logistics systems are usually designed to be less flexible than​ forward-based systems.

a

Your new Garden Weasel fails to​ "completely satisfy" you so you decide to return it for a full refund. What is the name for the system that will carry your weasel back to the​ manufacturer? A. reverse logistics B. upstream logistics C. reverse ordering D.upstream ordering

a

Managers must decide where in the supply chain to hold inventory. In​ general, the decision about where to position inventory is based on two general truths ​(check two ​answers)​: A. The flexibility of inventory decreases as materials move down the supply chain. B. The cost and value of inventory increase as materials move down the supply chain. C. The flexibility of inventory decreases as materials move up the supply chain. D. The cost and value of inventory increase as materials move up the supply chain.

a & b

A company makes​ tools, such as hammer and tape measures. One of their primary raw materials is steel and if they run out of steel they cannot make tools. The inventory level for steel is constantly monitored and when the reorder point is​ reached, an order is released for the economic order quantity. The tool company uses which of the following independent demand inventory systems for​ steel? A. ​work-in-process (WIP) system B. continuous review system C. single period system D. periodic review system

b

A computer manufacturer receives​ 20,000 computer mice in bulk from an upstream​ supplier, gradually uses them up over​ time, then receives another bulk shipment of​ 20,000 computer mice. This type of inventory is A. transportation. B. cycle stock. C. smoothing. D. hedging.

b

Companies hold safety stock inventory due to A. mismatch between downstream​ partner's demand and most efficient production or shipment volumes for upstream partner. B. uncertainty in supply or demand. C. mismatch between timing of customer demand and supply chain lead times. D. mismatch between downstream demand levels and upstream production capacity.

b

John Deere produces riding lawn mowers before peak demand because there is a​ "mismatch between downstream demand levels and upstream production​ capacity." This type of inventory is A. safety stock. B. smoothing. C. hedge. D. anticipation.

b

The owner of a vending machine company has weekly stops to check the soda machine at NC State. She checks the inventory levels and fills the machine back up to its full restocking level. She is using which of the following types of independent demand inventory​ systems? A. reorder point system B. periodic review system C. continuous review system D. single period system

b

What percent of North American gross domestic product is accounted for by​ logistics? A. almost 16 percent B. almost 8 percent C. almost 20 percent D. almost 12 percent

b

Which of these conditions is likely to cause a decrease in the probability of a​ stockout? A. higher demand level variance B. lower lead time C. higher lead time variance D. lower service level

b

Which of these is NOT an assumption of the basic continuous review​ model? A. Demand for the item is constant. B. The order quantity is​ constant, regardless of the demand. C. The price of each item is​ constant, regardless of how many are ordered at a time. D. The lead time to receive a new shipment is constant.

b

______________ pulls together shipments from a number of sources​ (often plants) in the same geographic area and combines them into largerlong dash—and hence more economicallong dash—shipping loads. A. ​Break-bulk warehousing B. Consolidation warehousing C. Postponement warehousing D. ​Hub-and-spoke systems

b

"An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply​ chain" is the definition of A. the inventory pooling effect. B. the hedging effect. C. the bullwhip effect. D. the cycle stock effect.

c

"Performing activities in a manner that meets the needs of the present without compromising the ability of future generations to meet their own​ needs" is the definition of A. selfishness. B. responsibility. C. sustainability. D. efficiency.

c

A company makes​ tools, such as hammer and tape measures. One of their primary raw materials is steel and if they run out of steel they cannot make tools. The inventory level for steel is constantly monitored and when the reorder point is​ reached, an order is released for the economic order quantity. The tool company uses which of the following independent demand inventory systems for​ steel? A. single period system B. ​work-in-process (WIP) system C. continuous review system D. periodic review system

c

A computer manufacturer receives​ 20,000 computer mice in bulk from an upstream​ supplier, gradually uses them up over​ time, then receives another bulk shipment of​ 20,000 computer mice. This type of inventory is A. transportation. B. smoothing. C. cycle stock. D. hedging.

c

A firm that is interested in consistent​ on-time delivery would probably design their transportation and warehousing system to include A. rail transportation with a consolidation warehouse. B. water transportation with a hub and spoke warehouse. C. air transportation with a spot stock warehouse. D. pipeline transportation with a postponement warehouse.

c

Hub and spoke systems are characterized by A. inventory locations that are close to​ producers, not customers. B. ​"hubs" that hold inventory until the appropriate season or upswing in demand. C. warehouses that are used as sorting facilities. D. ​"spokes" that are represented by the sites that receive the goods.

c

ON TEST: If a manufacturing org gains a competitive adv by competing on price, then its operations strategy probably a. Uses job shop processes b. Manufactures on make-to-order basis c. Uses continuous processes or assembly lines d. Focuses on manufacturing custom goods e. Needs to be revised

c

Safety stock increases when A. delivery speed increases. B. probability of a stockout increases. C. average demand increases. D. demand fluctuations decrease.

c

The cost and value of inventory increase as materials move down the supply chain. One way operations and supply chain managers counteract the negative aspect of this fact is by A. using a periodic inventory system. B. using a continuous inventory system. C. inventory pooling. D. advertising to increase demand.

c

The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called A. hedge inventory. B. anticipation inventory. C. safety stock. D. smoothing inventory.

c

This transportation mode is often the most expensive on a per pound basis. A. rail B. highway C. air D. water

c

Which logistics activity accounts for the largest percentage of​ logistics-related greenhouse gas​ emissions? A. Ocean freight B. Rail freight C. Highway freight D.Buildings

c

Which of the following is an example of consolidation​ warehousing? A. Large shipments from multiple suppliers are​ re-sorted into customized shipments to individual stores. B. A single manufacturer holds a wide array of goods close to the source of demand. C. A single manufacturer takes output from several of its manufacturing plants and combines them into one shipment to a major customer. D. A single manufacturer takes output directly from a single manufacturing plant and sends it directly to a single customer.

c

Which of these is NOT an assumption of the basic continuous review​ model? A. Demand for the item is constant. B. The price of each item is​ constant, regardless of how many are ordered at a time. C. The order quantity is​ constant, regardless of the demand. D. The lead time to receive a new shipment is constant.

c

You order a box of pencils from an office supply store and use them​ one-by-one until they are all gone. The pencils in your possession are A. safety stock. B. anticipation inventory. C. cycle stock. D. hedge inventory.

c

____________ include the equipment and procedures needed to move goods within a​ facility, between a facility and transportation​ mode, and between different transportation modes. A. ​Break-bulk systems B. Packaging systems C. Material handling systems D. ​Hub-and-spoke systems

c

_______________ is holding a safety stock in a single location instead of multiple locations. Several locations then share these inventories to lower overall holding costs. A. Inventory cycling B. inventory separation C. Inventory pooling D. Just in time inventory

c

​"The cost of a product plus all costs driven by logistics​ activities, such as​ transportation, warehousing,​ handling, customs​ fees, etc." is the definition of A. total fixed cost. B. perfect cost. C. landed cost. D. total variable cost.

c

A service firm that takes care of all of the logistics requirements for other companies is a A. contract carrier. B. freight forwarder. C. common carrier. D. third party logistics provider.

d

A​ _______________ ensures that an​ organization's logistics choices are consistent with its overall business strategy and support the performance dimensions that target costumers most value. A. information strategy B. packaging strategy C. warehousing strategy D. logistics strategy

d

Guadalupe sells imported watches from Germany on his​ e-commerce website. He wants to determine the Economic Order Quantity for his best selling watch. Which of the factors below is not relevant to this​ decision? A. The average demand per period. B. The annual inventory holding cost per watch. C. The cost for placing an order. D. Replenishment lead time.

d

Inventory that is​ "in the​ pipeline" moving from one link to another is A. hedge inventory. B. anticipation inventory. C. smoothing inventory. D. transportation inventory.

d

The bullwhip effect says that A. the greater the effect of a disturbance​ upstream, the farther downstream the supply chain. B. the greater the effect of a disturbance​ downstream, the farther upstream the supply chain. C. the farther downstream the supply​ chain, the greater the impact of a small disturbance upstream. D. the farther upstream the supply​ chain, the greater the impact of a small disturbance downstream.

d

The type of demand which comes from outside the​ organization, is​ unpredictable, and usually forecasted is A. dependent. B. continuous. C. independent. D. periodic.

C

Depleting all of our natural resources this generation is considered sustainable. A. True B. False

B

The​ _______________ attempts to identify the​ "best" location for a single​ warehouse, store, or​ plant, given multiple demand points that differ in location and importance. A. reverse logistics method B. weighted center of gravity method C. warehouse optimization method D. logistics method

B

Which of these statements about the assignment problem is​ best? A. Warehouse capacity is typically a decision variable. B. A typical constraint is the capacity of the warehouse must exceed the number of units shipped from it. C. Demand values and shipping costs are typically decision variables. D. A typical constraint is that the demand at one site must exceed the number of units shipped to it.

B

______________ are transportation solutions that seek to exploit the strengths of multiple transportation modes through​ physical, information, and monetary flows that re as seamless as possible. A. Sustainable solutions B. Multimodal solutions C. Logistical solutions D. Efficient solutions

B

​"Performing activities in a manner that meets the needs of the present without compromising the ability of future generations to meet their own​ needs" is the definition of A. efficiency. B. sustainability. C. responsibility. D. selfishness.

B

A company which produces​ electricity, like Progress​ Energy, is considering buying extra coal to hold in inventory. They want to buffer against a potential strike at a major coal producer which would likely result in a significant price increase. This type of inventory is A. safety stock. B. cycle stock. C. anticipation. D. hedging.

D

The type of demand which is tied to the production of another item​ (table legs are an​ example) is A. continuous. B. periodic. C. independent. D. dependent.

D

​"Any idle resource held for future use dash- those stocks or items used to support production​ (raw materials), supporting activities​ (drill bits) and customer service​ (finished goods, spare​ parts)" is the definition of A. sales and operations planning. B. master production schedule. C. just in time​ (JIT). D. inventory.

D

​_______________ are a class of mathematical models used when decision makers seek to optimize some objective function subject to some constraints. A. Logistics models B. Decision models C. Efficiency models D. Optimization models

D

The​ landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago.​ Sadly, it was 685 miles one way to visit the property and even though gas was available at​ $1.88 per gallon and the car achieved 25 miles per​ gallon, it was an expensive trip. He packed a cooler with​ $12 worth of ice regardless of the quantity of shrimp he bought to bring home. The shrimp were a bargain at​ $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler. What is the landed cost of a pound of​ shrimp? A. ​$9.80 B. ​$9.42 C. $8.78 D. ​$11.28

d

Which of these is NOT a logistics​ activity? A. warehousing B. inventory management C. material handling D. inspection

d

​"That part of supply chain management that​ plans, implements, and controls the​ efficient, effective forward and reverse flow and storage of​ goods, services and related information between the point of origin and the point of consumption in order to meet​ customers' requirements" is the definition of A. packaging. B. warehousing. C. transportation. D. logistics management.

d