Fundamentals of Logistics Final Exam
Which of the following is not a political restriction on international trade?
All of the answers are political restrictions
____ refers to building up a variety of different products for resale to particular customers.
Assorting
With respect to supply chains, relevancy focuses on an organization's ability to respond to changes in demand with respect to volume and variety.
False
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 not a cultural factor that can influence international logistics?
Population
A ____ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.
Shipper's mark
Warehousing and ____ are substitutes for each other.
Transportation
Failure to comply with labeling guidelines can result in surcharges, administrative fees, or penalty charges
True
It is possible for organizations to use only one customer service metric to measure customer service.
True
Land bridge services involve the use of surface transportation—generally rail transportation—between an origin and destination port.
True
Less-than-truckload shipments range from about 150 to 10,000 pounds
True
Plastic packaging tends to be cheaper, more versatile, and more consumer-friendly than paper packaging.
True
Satisfactory service recovery tends to increase a customer's willingness to recommend the offending organization; unsatisfactory service recovery magnifies the initial failure.
True
The U.S. railroad industry is dominated by four freight carriers
True
The attractiveness of ERP systems comes from their potential for lower costs as well as increased productivity and customer satisfaction.
True
The convenience component of customer service focuses on the ease of doing business with a seller.
True
The customer service metrics that are chosen should be relevant and important from the customer's perspective.
True
The major advantage of the unit load is that it enables mechanical devices to be substituted for manual labor.
True
The nature of the product can affect the level of customer service that should be offered.
True
The physical characteristics of some goods change while they are moving in the logistics channel.
True
The primary advantage for motor carriers is flexibility (the ability to deliver the product to the customer).
True
The primary advantage of simulation is that it enables a firm to test the feasibility of proposed changes at relatively little expense.
True
The worldwide public market for cloud computing grew nearly 20 percent between 2011 and 2012.
True
Transportation companies that have implemented global positioning systems have reported increased worker productivity, reduced operating costs, and improved customer relations.
True
Transportation refers to the actual, physical movement of goods and people between two points.
True
When new products or new packaging techniques are about to be introduced, it is somewhat advisable to have the packages pretested.
True
All are characteristics of private warehousing, except ____.
feasible when demand patterns are irregular
Transit time reliability is the most important factor that shippers tend to use when selecting carriers.
False
U.S. freight railroads currently allow 24 hours of free time for unloading rail cars and 48 hours of free time for loading rail cars.
False
Volume refers to how heavy a product is in relation to its size.
False
With respect to net profit margin, the most relevant categories for logistics managers to consider are sales, costs of goods sold, and asset turnover.
False
A locavore strategy focuses on hiring local workers.
False
A process strategy refers to management of logistics activities across business units with a focus on reducing complexity for customers.
False
A pure material is one that is totally water soluble.
False
A shipper's letter of instruction contains relevant export transaction data such as the transportation mode(s), transaction participants, and description of what is being exported.
False
Actual senior management commitment to supply chain management occurs in one of every two organizations.
False
An order bill of lading specifies the consignee.
False
Coopetition refers to cooperative relationships between members of a supply chain to enhance the overall business performance of all parties.
False
Depending on the industry and product type, reverse logistics costs as a percentage of revenues can range between 2 and 4 percent.
False
Enhanced communications across organizations in a supply chain is only dependent on the technological capabilities of the organizations
False
Expediting refers to determining a shipment's location during the course of its move.
False
Intermodal competition refers to the number of carriers within a particular mode of transportation.
False
Right-to-work laws mean that every person who wants a job is guaranteed a job.
False
Shipping conferences refer to annual meetings of large international shippers.
False
Small shipments refer to those that can be handled relatively expeditiously and inexpensively by a small package carrier.
False
Strategy at a business unit level is primarily focused on the types of businesses in which the company should compete and the way the company should be managed.
False
The European Union's expansion into Central and Eastern European countries has seen Hungary become a favored distribution site because of its relatively central geographic location.
False
The balance sheet reflects the assets, liabilities, and costs of goods sold at a given point in time.
False
The two prominent supply chain management frameworks are the Supply Chain Operations Reference (SCOR) model and the Process Classification Framework (PCF).
False
Throughput refers to ____.
amount of product entering and leaving a facility in a given time period