SUPPLY CHAIN 328 FINAL

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generally viewed as adequate for accommodating the largest existing wide-body aircraft

A 3,047 meter (10,000 foot) runway is significant because it is ___________.

commercial invoice

A ___________ is similar in nature to a domestic bill of lading and summarizes the entire transaction.

shippers mark

A ___________ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.

shipper's export declaration

A ___________ often serves as the basis for a country's official export statistics.

routing guide

A ___________ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred carriers, and a list of which carrier or carriers to use for shipments moving between two points.

lock

A ___________ raises or lowers barges so that they can meet the river's level as they move upstream or downstream.

certificate of origin

A ___________ specifies the country or countries 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.

A freight claim must be filed within ___________ months from the date on the bill of lading.

embargo

A(n) ___________ prohibits trade between countries.

commodity

A(n) ___________ rate is very good for dealing with demand-specific situations.

commodity

A(n) ___________ rate refers to a specific rate for every possible combination of product, weight, and distance.

class

A(n) ___________ rate simplifies each of the three primary rate factors—product, weight, and distance.

amodal shipper

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.

recognizes that inventories are not of equal value to a firm

ABC analysis of inventory ___________.

international freight forwarders

Advising on acceptance of letters of credit, booking space on carriers, and obtaining consular documents are principal functions provided by ___________.

high-value; low-volume

Airfreight is best suited to transport ___________, ___________ products.

motor carrier

Airfreight is the costliest mode for freight transportation. What is the second most expensive mode of freight transportation?

swift transportation

All of the following are less-than-truckload (LTL) carriers except:

made to stock

All of the following are suggestions for dealing with dead stock (inventory) except:

export packer

An ___________ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself.

a freight bill

An invoice submitted by the carrier requesting to be paid is ___________.

Buffer

Another name for safety stock is ___________ stock.

Approximately ___________ percent of cross-border shipments move by water transportation.

four

Common carriers of transportation have ___________ obligations.

increase

Concerning the EOQ model, if demand or annual usage increases by 10 percent, then the EOQ will ___________.

stay unchanged

Concerning the EOQ model, if the ordering costs increase by 10 percent and the product value increases by 10 percent, then the EOQ will ___________.

receivers of freight

Consignees are ___________.

Dead inventory (dead stock) refers to a product for which there are no sales during a ___________-month period.

water carriers; pipelines

Demurrage charges are collected by railroads, ___________, and ___________.

accounting cost

Each of the following is a component of inventory carrying cost except:

A truckload shipment involves only one customer.

Each of the following statements is true except:

product movement from manufacturer to retailer

Efficient consumer response (ECR) tends to focus on ___________.

parcel carriers

Firms that specialize in carrying packages that weigh up to 150 pounds are called ___________.

High;low

Holding high levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.

Low;high

Holding low levels of inventory results in ___________ inventory carrying costs and ___________ stockout costs.

safety concerns

Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ___________.

the wholesale price plus freight if previously paid

If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive ___________.

transportation

In general terms, ___________ accounts for about 6 percent of U.S. gross domestic product.

standard; broad

In terms of rail gauge, China primarily uses ___________ rail gauge whereas India primarily uses ___________ rail gauge.

railroad; trucks

In the United States, ___________ account for the largest share of ton miles and ___________ account for the majority of freight revenues.

the prime rate of interest

In the United States, ___________ has traditionally provided a convenient starting point when estimating the interest charges associated with maintaining inventory.

In the United States, commercial airline pilots must retire at age ___________.

Inland waterways in the United States are dredged to a depth of ___________ feet, which tends to be the minimum depth required for most barges.

19;20

Inventory carrying costs in the United States since 2010 have ranged between ___________ and ___________ percent.

one-third

Inventory costs in the United States in the twenty-first century represent approximately ___________ of total logistics costs.

increased rate of demand; longer-than-normal replenishment

Inventory flow diagrams illustrate that safety stock can prevent two problem areas, ___________ and ___________.

refers to the fact that more items are recorded entering than leaving warehousing facilities

Inventory shrinkage ___________.

dividing the cost of goods sold by average inventory

Inventory turnover can be calculated by ___________.

operate through a series of terminals

Less-than-truckload motor carriers ___________.

the ability to load freight on top of a commodity

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?

a broader service network

Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ___________.

trucking

Private transportation is most prevalent in the ___________ industry.

the distance between the inner sides of two parallel rail tracks

Rail gauge refers to ___________.

lower-value; higher-volume

Railroads tend to transport ___________, ___________ shipments.

china

Seven of the 10 busiest container ports are located in ___________.

Europe

Short-sea shipping (SSS) is widely accepted and practiced in ___________.

weigh more than 150 pounds but less than 500 pounds

Small shipments are defined as those that ___________.

The class 200 rate is higher than the class 100 rate.

Suppose that a particular item is class 200 according to the National Motor Freight Classification (NMFC). What is the relationship between this item's rate and the rate for an item in class 100?

was created in recognition of the importance of logistics in international trade

The Logistics Performance Index (LPI) ___________.

500

The National Motor Freight Classification (NMFC) currently has 18 separate ratings, or classes, that range from Class 50 to Class ___________.

the European Union

The Open Aviation Area is an open skies agreement between the United States and ___________.

department of transportation (DOT)

The U.S. ________ is the federal government body with primary responsibility for transportation safety regulation.

carrying; ordering

The economic order quantity (EOQ) deals with calculating the proper order size with respect to ___________ costs and ___________ costs.

the point at which carrying costs equal ordering costs

The economic order quantity (EOQ) determines ___________.

bill of lading

The most important single transportation document is the ___________.

petroleum

The predominant commodity moved by barge transportation is ___________.

flexability

The primary advantage for motor carriers is ___________.

reduced transit times

The primary advantage to land bridge service is ___________.

five

There are ___________ modes of transportation.

10,000

Truckload carriers focus on shipments of greater than ___________ pounds.

vendor managed inventory

Under ___________, the size and timing of replenishment orders are the responsibility of the manufacturer.

average daily demand times the length of the replenishment cycle

Under conditions of certainty, a reorder point is equal to ___________.

transportation cost

Weight times rate equals ___________.

ocean carrier alliance

What concept refers to a situation in which ocean carriers retain their individual identities but cooperate in the area of operations?

20 foot container

What container size is often used to rank water ports and measure containership capacity?

letter of credit

What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with applicable terms and conditions of the particular transaction?

united parcel service

What is the largest transportation company by revenues in the United States?

balance of payments

What is the name for a system of accounts that records a country's international financial transactions?

it becomes costlier to import products to the country, but its exports surge

When one country's currency is weak relative to other currencies, ___________.

United States, India and China

Which countries rank first, second, and third, respectively in terms of highway mileage?

nonvessel-operating common carrier (NVOCC)

Which international logistics service provider is often confused with the international freight forwarder?

open account

Which method of payment for international shipments is extremely risky for the seller and minimally risky for the buyer?

railroads

Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare transport modes?

free carrier (FCA)

Which of the following Incoterms does not apply to sea and inland waterway transport only?

transporting orders

Which of the following costs is not a component of ordering (order) costs?

population

Which of the following is not a cultural factor that can influence international logistics?

third party transportation

Which of the following is not a legal classification of carriers?

forfaiting

Which of the following is not a method of payment for international shipments?

payment for freight pickup and delivery

Which of the following is not a source of income for international freight forwarders?

stockouts are permitted

Which of the following is not an assumption associated with the basic economic order quantity (EOQ) model?

collaborative planning, forecasting, and replenishment

Which of the following is not an example of a lean inventory approach?

product value

Which of the following is not one of the four factors used to determine a product's classification?

density

Which of the following is not one of the three primary factors that transportation rates are based upon?

The customer goes to a competitor for a purchase.

Which of the following situations is likely the most damaging (costly) with respect to a stockout?

Inventory for sale in one nation generally serves the needs of markets in nearby nations.

Which of the following statements about international inventory management is false?

Sachets tend to be sold in higher-income countries.

Which of the following statements about sachets is false?

It is relatively easy to forecast the demand for the necessary parts.

Which of the following statements about service parts logistics is false?

Shipment costs increase in direct proportion to the increase in distance.

Which of the following statements about the class rate system is false?

JIT tends to focus on product movement from manufacturer to retailer.

Which of the following statements about the lean approach and just-in-time (JIT) is false?

VMI will produce immediate benefits.

Which of the following statements about vendor-managed inventory (VMI) is false?

The importance of individual carrying costs factors (categories) is generally consistent from product to product.

Which of the following statements if false?

China ranks first in the world in terms of highway mileage.