SCM 413 Exam 1 Trombly

The 80/20 rule, often called the Pareto principle means: ________. a. 20% of the SKU base will drive 80% of the demand b. the Pareto principle doesn't exist c. 80% of the time you should focus on 20% of costs d. 20% of the time you should focus on 80% of costs

a. 20% of the SKU base will drive 80% of the demand

Supermarkets typically carry how many different SKUs? a. 30,000 - 40,000 b. 20,000 - 30,000 c. Over 40,000 d. 10,000 - 20,000

a. 30,000 - 40,000

Which of the following is not an objective of industrial packaging? a. Advertising b. Unitization c. Security d. Protection

a. Advertising

Which type of material handling system typically has the highest fixed cost and the lowest variable cost? a. Automated b. Mechanized c. Semi-automated d. Information directed

a. Automated

________ is the probability of having inventory to consistently meet customer material or product requirements. a. Availability b. Operational performance c. Service reliability d. Recovery time

a. Availability

The decision support benefits "facilitate direct receipt to shipment flow" apply to which of the following warehouse management system (WMS) functionalities? a. Cross-docking b. Put-away c. Task interleaving d. Pick/replenishment

a. Cross-docking

_______ is often related to variation in forecasting and demand. a. Demand uncertainty b. Vendor uncertainty c. Lead time uncertainty d. Supply uncertainty

a. Demand uncertainty

Which of the following is not a part of the integrated enterprise? a. Distribution b. Procurement c. Logistics d. Manufacturing

a. Distribution

Which of the following is not one of the themes of integrated supply chains? a. Focuses on service to key retailers b. Considers end-to-end activities across the supply chain c. Provides integration within the firm and across supply chain partners d. Provides a combination of product, service, or solution to the end consumer

a. Focuses on service to key retailers

Logistics systems should be designed to achieve customer service goals while maintaining the lowest possible financial investment in ________. a. Inventory b. Human resources c. Trucks d. Cost

a. Inventory

The repair and support of products during their life cycle, including warranty, maintenance, and repair. a. Life cycle support b. Order fulfilment/service delivery c. Reverse logistics d. Manufacturing customization

a. Life cycle support

__________ is the process and activities that create value focused on the design and administration of a system to control the timing and geographical positioning of raw materials, work-in-process, and finished inventories at the lowest total cost. a. Logistics management b. Transportation management c. Design management d. Management

a. Logistics management

Which of the following is not a value-added service a modern distribution warehouse might perform? a. Manufacturing b. Kitting c. Order fulfillment d. Sequencing/metering

a. Manufacturing

________ typically offer frozen or cooler capacity designed to protect food, medical, photographic, and chemical products requiring temperature control. a. Refrigerated warehouses b. General merchandise warehouses c. Special commodity warehouses d. Bonded warehouses

a. Refrigerated warehouses

The logistics value proposition is focused on which two main elements? a. Service and cost minimization b. Service and speed c. Cost and value-added services d. Cost and error rate

a. Service and cost minimization

________ involves the quality attributes of logistics. a. Service reliability b. Availabiltiy c. Operational performance d. Malfunction

a. Service reliability

The logistics of internationalization involves four significant differences in comparison to national or even regional operations. Which of the following is not one of these? a. Size b. Distance c. Documentation d. Diversity

a. Size

Which one of these concepts is not part of logistical integration objectives? a. Using less parcel shipping b. Variance reduction c. Inventory reduction d. Responsiveness

a. Using less parcel shipping

Echelon logistics operating arrangements are characterized by which of the following? a. Utilizing warehouses to create inventory assortments and achieve consolidation economies b. Focusing on reducing transportation cost c. Presence of at least 2 warehouse locations d. Application only in the grocery industry

a. Utilizing warehouses to create inventory assortments and achieve consolidation economies

A ________ operation involves shipments from multiple suppliers arriving at a designated time at the handling facility. Inventory receipts are sorted by destination across the dock and consolidated into outbound trailers for direct delivery. a. cross-dock b. integrated service provider (ISP) c. master facility d. flexible

a. cross-dock

A supply chain that primarily focuses on low cost is ________. a. efficient b. effective c. responsive d. sustainable

a. efficient

Desired customer service levels are commonly referred to as ________ a. fill rates b. customer service c. stockout rate d. success ratio

a. fill rates

The primary benefits of low product complexity include all of the following except: a. increased revenue b. improved product quality and reliability c. improved product development d. decreased sales support cost

a. increased revenue

Logistical operations have two main flows: ________ a. inventory and information b. inventory and materials c. inventory and warehousing d. materials and customer accommodation

a. inventory and information

The focus of integrated management is ________. a. lowest total process cost b. highest net present value c. highest cost d. minimizing shipping costs

a. lowest total process cost

In order to achieve the lowest total process cost, a supply chain must ________. a. minimize the total cost for all involved functions combined b. analyze each function separately c. minimize the cost of the most expensive function d. minimize the cost of each function

a. minimize the total cost for all involved functions combined

When a firm "spot-stocks" inventory they are engaged in ________. a. placing inventory in a local warehouse in anticipation of future need b. placing inventory in an exact location in the warehouse c. placing inventory in consignment d. marking inventory for ease of identification

a. placing inventory in a local warehouse in anticipation of future need

Logistical systems should utilize transportation that minimizes ________. a. total system cost b. speed of transportation c. cost of transport d. transportation consistency

a. total system cost

________is the capacity to have inventory when desired by a customer. a. Well-stocked b. Availability c. High safety stock d. High reach

b. Availability

________ is the selective audit of a certain number of SKUs or bin locations on a predetermined schedule. a. Selective counting b. Cycle counting c. Computer-directed counting d. Schedule counting

b. Cycle counting

________refers to the fact that manufacturing firms typically specialize in producing large batches of a limited variety of items. a. Discrepancy in production b. Discrepancy in quantity and assortment c. Discrepancy in space d. Discrepancy in time

b. Discrepancy in quantity and assortment

The primary reason that total logistics cost has reduced as a percentage of gross domestic product (GDP) as what? a. Inventory has increased as a percent of total cost b. Inventory has decreased as a percent of total cost c. Transportation has decreased as a percent of total cost d. Nominal GDP has increased

b. Inventory has decreased as a percent of total cost

Three common examples of information-directed materials handling systems are all of the following except for which one? a. RF wireless b. Tagless operations c. Light-directed operations d. RFID

b. Tagless operations

When a transaction proceeds through every step of the order management process without fault, exception handling, or intervention, this is known as ________. a. an established supply chain b. a perfect order c. high reliability d. customer service

b. a perfect order

An increase in dwell time indicates that: a. asset idle time compared to total time in the system has decreased b. asset idle time compared to total time in the system has increased c. total time in the system has increased d. asset idle time has increased

b. asset idle time compared to total time in the system has increased

When a transport vehicle fills up before weight limits are reached, it is said that the vehicle ________. a. fills out b. cube out c. weigh out d. pounds out

b. cube out

Providing value-added services is a critical aspect of ________. a. customer happiness b. customer success c. customer service d. customer satisfaction

b. customer success

The Anticipatory Business Model is best described by which statement: a. builds on the principles of time-based competition b. driven by forecast c. is a low risk strategy d. driven by information technology

b. driven by forecast

In a cross-docking warehouse, inventory received from suppliers: a. is held in stock until required by stores b. is not held in stock but instead moves directly from receiving to shipping c. is unpacked and processed to perform value-added services d. is used directly in production processes

b. is not held in stock but instead moves directly from receiving to shipping

On-time delivery is an aspect of a firm's performance in ________. a. speed b. operational performance c. malfunction recovery d. availability

b. operational performance

In general, offering consumers higher levels of service output in terms of greater spatial convenience or product variety ________. a. does not impact configuration of a supply chain b. results in higher logistics and distribution cost c. has little impact on logistics and distribution cost d. results in lower logistics and distribution cost

b. results in higher logistics and distribution cost

The process of managing customer returns and products which have served their purpose is known as: a. demand planning b. reverse logistics c. backfilling d. order fulfillment.

b. reverse logistics

The basic unit of supply chain design and operational control is: a. echeloned inventory b. the logistics performance cycle c. life cycle support d. integrated logistics

b. the logistics performance cycle

From a buyer's perspective, with respect to operational performance, most supply chain managers would prefer which of the following? a. A consistent five-day performance cycle b. A performance cycle that averages two days but ranges from one to four days c. A consistent three-day performance cycle d. A performance cycle that averages three days with a range of one to four days

c. A consistent three-day performance cycle

________ are used widely in shipping and receiving operations and serve as the basic handling device for a number of order selection systems. a. Forklifts b. Palletizers c. Conveyors d. Carousels

c. Conveyors

________can move loads of master cartons both horizontally and vertically but are limited to handling unit loads. a. Conveyors b. Palletizers c. Forklifts d. Robots

c. Forklifts

At a meeting with an important customer, a manager at Jones Company learned that the customer expected at least 97% of items ordered to be shipped on time. Jones Company currently averages 95% on time delivery for this customer. Which "gap" in the customer satisfaction model reflects this type of misunderstanding? a. Communication gap b. Standards gap c. Knowledge gap d. Performance gap

c. Knowledge gap

The decision support benefits "direct picking from single or multiple locations including pick to assure expiration date compliance" apply to which of the following warehouse management system (WMS) functionalities? a. Put-away b. Task interleaving c. Pick/replenishment d. Slotting

c. Pick/replenishment

Four economic utilities add value to customers. Which of the following is not one of these? a. Place b. Time c. Price d. Form

c. Price

Which of the following is not a supply chain service output? a. Product variety and assortment b. Spatial convenience c. Quantity discounts d. Waiting time

c. Quantity discounts

At a meeting with an important customer, a manager at Jones Company learned that the customer expected at least 97% of items ordered to be shipped on time. The manager did not feel this was possible, so a goal of 95% on time delivery was set instead. This is an example of which 'gap' in the customer satisfaction model? a. Performance gap b. Knowledge gap c. Standards gap d. Communication gap

c. Standards gap

According to research, all of the following are examples of supply chain disruptors except: a. growth of omni-channel shopping. b. consumers demand more personalization of products and services. c. consumers have become more patient. d. competing priorities of millennial and aging consumers.

c. consumers have become more patient.

A cross-dock facility: a. handles only outgoing shipments b. handles only incoming shipments c. converts incoming shipments from suppliers to outgoing shipments for delivery d. combines outgoing shipments into full loads for long-distance shipping

c. converts incoming shipments from suppliers to outgoing shipments for delivery

One function of a distribution warehouse is consolidation, which means the facility is being used to ________. a. collect products/packaging materials or disposal b. hold safety stock inventoru c. group small inbound shipments into one large outbound shipment d. None of the choices are correct.

c. group small inbound shipments into one large outbound shipment

A firm that increases the number of stock-keeping-units (SKUs) in its product portfolio can expect to initially experience ________ revenues and ________ supply chain costs. a. increasing, decreasing b. decreasing, decreasing c. increasing, increasing d. decreasing, increasing

c. increasing, increasing

Containers used to group individual products are called ________. a. shipping cartons b. containerization c. master cartons d. grouping

c. master cartons

The goal of integrated logistics is to: a. develop lower cost suppliers b. minimize transportation costs in a supply chain c. minimize operational expenditures while meeting customer service goals d. simplify the process of supply chain management

c. minimize operational expenditures while meeting customer service goals

An omnichannel supply chain is one that ________. a. is primarily used for servicing distributors b. is used primarily for handling returns c. refers to the firm's ability to serve consumers direct and through many other channel partners d. focuses on home delivery or products

c. refers to the firm's ability to serve consumers direct and through many other channel partners

Warehousing offers four economic benefits, including consolidation, seasonal storage, ________ and reverse logistics. a. handling b. receiving c. sorting d. shipping

c. sorting

The goal of integrated logistics is to: a. reduce product variety b. identify new suppliers c. synchronize and link the supply chain d. develop innovative new products

c. synchronize and link the supply chain.

When all the products for a specific customer order are picked simultaneously throughout the warehouse, the method being employed is called: a. discrete selection b. combined selection c. wave selection d. combination discrete selection

c. wave selection

________ are licensed by the government to store goods prior to payment of taxes or import/export duties. a. General merchandise warehouses b. Tax-free warehouses c. Household goods or furniture warehouses d. Bonded warehouses

d. Bonded warehouses

Economic justification for robotics is usually driven by some combination of five factors. Which of the following is not one of these? a. Faster order to delivery cycle time or speed requirements b. High labor costs or a lack of available labor c. Restrictive work environments d. Excess space

d. Excess space

Which of the following material handling systems offers the most flexibility? a. Mechanized b. Semi-automated c. Automated d. Information directed

d. Information directed

Which of the following is not one of the shortcomings and limitations of the customer satisfaction emphasis. a. Firms frequently forget satisfaction lies in the expectations and perceptions of individual customers b. Satisfied customers are not necessarily loyal customers c. Many executives make a fundamental, yet understandable, mistake in their interpretation of satisfaction d. It is easy to measure but difficult to interpret

d. It is easy to measure but difficult to interpret

The work of logistics involves all of the following EXCEPT which of the following? a. Inventory b. Transportation c. Order processing d. Manufacturing

d. Manufacturing

The decision support benefits "improved productivity and cube utilization" apply to which of the following warehouse management system (WMS) functionalities? a. Task interleaving b. Pick/replenishment c. Slotting d. Put-away

d. Put-away

________ marketing focuses on the development of long-term partnerships with key supply chain participants such as consumers, intermediate customers, and suppliers in an effort to develop and retain long-term preference and loyalty. a. Personal b. Traditional c. Online marketing d. Relationship

d. Relationship

The decision support benefits "routing of fork trucks on demand as contrasted to predetermined assigned tasks, areas, or sequences" apply to which of the following warehouse management system (WMS) functionalities? a. Put-away b. Pick/replenishment c. Cross-docking d. Task interleaving

d. Task interleaving

The work of logistics involves which of the following? a. Order processing, inventory, and manufacturing b. Inventory, transportation, manufacturing and procurement c. Manufacturing, customer accommodation, and purchasing d. Transportation, inventory, order processing, warehousing, and facility network design

d. Transportation, inventory, order processing, warehousing, and facility network design

Numerous studies have been performed concerning retail stockouts. While results vary, generally the studies find that retail stockouts ________. a. average about 20 percent b. are extremely rare c. are less frequent for items that are being specifically promoted by a retailer d. average about eight percent

d. average about eight percent

The difference between a "customer success" focus and a "customer satisfaction" focus is that ________. a. there really isn't any difference b. customer satisfaction is more difficult to achieve c. customer success deals with expectations of customers; satisfaction deals with their requirements d. customer satisfaction deals with expectations; customer success deals with requirements

d. customer satisfaction deals with expectations; customer success deals with requirements

A firm which provides critical operations functionality to members of a supply chain is a(n): a. retailer b. supply chain leader c. supply chain follower d. integrated service supplier (ISP)

d. integrated service supplier (ISP)

The ________ the waiting time, the ________ the level of supply chain service. a. lower; lower b. higher; higher c. higher; lower d. lower; higher

d. lower; higher

When performing consolidation, a warehouse is used to group ________ inbound shipments into ________ outbound shipments. a. single small, many large b. many small, many large c. few large, many small d. many small, few large

d. many small, few large

The ultimate in market segmentation and relationship marketing is to focus on the individual customer. This approach is called ________. a. transactional marketing b. person-to-person marketing c. online marketing d. micromarketing

d. micromarketing

The most exacting measure of logistics performance regarding availability is: a. stockout frequency b. fill rate c. average number of items on hand d. orders shipped complete

d. orders shipped complete

From a strategic point of view, firms should strive to ________. a. achieve what all customers desire: close customer success types of relationships b. provide customer success to all customers c. never refuse to do business with a customer d. realize different customer accommodation approaches may be appropriate for different customers

d. realize different customer accommodation approaches may be appropriate for different customers

A firm that supports an automotive assembly plant by providing just-in time - - inventory is engaged in: a. cross docking b. order assembly c. mixing d. sequencing

d. sequencing

A high-quality logistics system offers high levels of inventory availability and predictable operational performance. This is what known as: a. continuous improvement b. predictive logistics c. service quality d. service reliability

d. service reliability

The placement of specific products in selected pallet locations in a warehouse is called ________. a. pegging b. shifting c. stacking d. slotting

d. slotting

The supply chain that allows customers to purchase in ________ quantities experiences ________ costs and therefore demands higher unit prices from customers. a. larger; lower b. smaller; lower c. larger; higher d. smaller; higher

d. smaller; higher

A/n ________occurs when a firm has no product available to fulfil customer demand. a. inventory delay b. backorder c. inventory shortage d. stockout

d. stockout

The use of a Warehouse Management System(WMS) to assign fork trucks to a continuous series of tasks is known as: a. directed routing b. variable routing c. simultaneous routing d. task interleaving

d. task interleaving

The 'Pareto principle' is: a. seldom applied to inventory analysis b. useful for forecasting transportation requirements c. also known as the 70/30 rule d. useful for product profitability analysis

d. useful for product profitability analysis

Performance cycle uncertainty is a key concern in logistical operations. true or false

true

Performance cycle variance is a prime determinant of safety stock. true or false

true

The goal of cycle synchronization is achievement of planned time performance. true or false

true