LSCM 3960 Exam Two

Which is not a mode of transportation?

3PL

Distribution facilities can provide numerous services, depending on the requirements of the supply chain. Which does not belong?

Activity

The primary tradeoffs and relationships include the following

All of these answers 1. Space vs. equipment 2. Equipment vs. people 3. People vs. space

Which of the following influences decisions regarding the number and location of supply chain facilities?

All of these answers 1. Transportation service availability 2. Capacity 3. Cost

Which statement is incorrect about 4PLs ?

All of these answers are correct 1. 4PL provider is becoming more evident in the business world 2. A 4PL company manages the resources and technologies of its own organization with those of complementary service providers to provide supply chain solutions 3. 4PL companies emerged in 1990s-2000s

Which of the following activities is least frequently outsourced to 3PL (third party logistics) companies?

Customer service

According to the textbook, which of the following is not a major step recommended for a comprehensive logistics/supply chain network design process

Determine taxes and industrial development incentives

In the Item Procurement Importance Matrix, what describes high risk, low value?

Distinctives

"It has been said that information is the lifeline of business, driving effective decisions and action. Quality of information is less and less important, given advances in technology."

False

A financially based 3PL is a firm that takes a financial interest in a firm in order to underwrite the outsourcing of that firm's logistics.

False

A horizontal relationship refers to firms on the same level in the supply chain.

False

Business intelligence applications are being used to gather information on competitors and their suppliers.

False

Contract warehousing is different than 3PL warehousing.

False

KPI is another term for a shipping document.

False

Landed costs are independent of FOB terms.

False

Now that people are computer literate, people are no longer a major barrier to the effective use of information technology.

False

Order accuracy and order completeness are the same.

False

People are not usually the problem when it comes to improving supply chain visibility and performance problems; rather it is technological capabilities.

False

Single vendor supply chain suites require more training time and lower implementation costs as compared with the polar options providing best - of - breed solutions.

False

Six Sigma has an objective of making sure that companies have standard processes in place that they follow: "Document what you do and do what you document"

False

Speed is of the essence; running efficient distribution facilities and networks are not nearly as critical.

False

Spreadsheets and database programs no longer have a place in SCIS as the new programs have supplanted them.

False

Strategic source is same as procurement.

False

The quality of life locational determinant is more important to companies that must attract and retain an unskilled, static work force.

False

The railroads have not shared in the growth in transportation and so do not have any capacity issues.

False

The range of relationships with 3PLs ranges from being a vendor to being a vertical supplier.

False

The two most prevalent 3PL selection factors are price of 3PL services and quality of tactical operational logistics services.

False

In the Item Procurement Importance Matrix, what item is described as low risk, low value?

Generics

All of the following are important support functions for distribution execution EXCEPT

Human resources management

According to the textbook, total cost of distribution is affected by all of the following EXCEPT

IT investment

The primary benefits of intermodal transportation DO NOT include:

Labor resource

Major locational determinants includes national/regional determinants and site-specific determinants. Which of the followings is not among national/regional determinants?

Land costs and taxes

Which is true regarding optimization models?

Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution.

____ is/are a major barrier to the effective use of information technology.

People

"Seven R's of Logistics" does not include:

Right company

Which of the items below is not part of the 7 Rs?

SCIS

The planning and execution infrastructure consists of the software tools with all of the following characteristics except.....

Software that provides supply chain manageability

Data synchronization focuses

Timely and accurate updates

Which order does a strategic evolution to the sourcing process follow

Traditional sourcing, strategic sourcing, e-enabled procurement, integrated sourcing

All modes provide the same basic service.

True

Changing environment is often a reason for examining the firm's current logistics network.

True

Collaboration is facilitated by information flow.

True

Container ships and general cargo ships are among the most widely used options in ocean transportation

True

Container ships and general cargo ships are among the most widely used options in ocean transportation.

True

Drivers of relationship include asset/cost efficiency, customer service, marketing advantage, and profit growth

True

ERP systems are multimodule application software platforms that help organizations manage the important parts of their businesses.

True

Event management systems can reduce in-transit inventory by monitoring supply chain delivery status and alerting when late delivery occurs.

True

Execution tools have focused on a company's internal logistics activities--order management, warehouse management, inventory management, labor optimization, and transportation management--and are being expanded into new integration software applications.

True

Existing supply chain information technologies support timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers.

True

Inventory handling, storage, and processing facilities help supply chains create time and place utility.

True

Labor-intensive industries emphasize a labor climate as a locational determinant.

True

Many companies do not want to outsource logistics because they have a core competency in logistics.

True

Many firms have directed significant attention towards working more closely with supply chain partners, including not only customers and suppliers but also various types of logistics suppliers.

True

Motor carrier cost is highly variable.

True

One of the primary tradeoffs in DC design is space versus equipment.

True

Organizations may benefit substantially from the establishment of one or several warehouses to reduce transportation costs.

True

Outsourcing and Contract Logistics are terms are sometimes used to describe third-party logistics.

True

Outsourcing transportation is a "buy" decision.

True

Procurement and materials management are related activities in supply chain management.

True

Product handling includes both receiving and shipping.

True

Product value is an important factor in mode selection.

True

Railroads have speed disadvantage.

True

Software applications are now available over the Internet.

True

TQM represents a strategy in which the entire organization focuses on an examination of process variability and continuous improvement.

True

The efficiency and effectiveness of a logistics operation are constrained by the location of plants and warehouses in its logistics system.

True

The security function seeks to protect the organization from merchandise theft and fraud.

True

The strategy behind routing guides is to maintain very tight control of transportation.

True

Ton-miles is equal to multiplication of tonnage transported and miles covered.

True

Visibility tools focus on providing a seamless flow of timely, important information across the supply chain

True

Visibility tools focus on providing a seamless flow of timely, important information across the supply chain.

True

Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level.

True

Durability refers to

a characteristic that influences mode selection.

What advantage does the transit privilege give to shippers located at intermediate locations?

a lower, long-distance through rate charged for the shipment

A third-party logistics firm may be defined as

an external supplier that performs all or part of a company's logistics functions.

The grid approach

assumes that the raw materials sources and finished goods markets are fixed.

The roles of the distribution center include ____ (choose the best answer):

balancing supply and demand, protecting against uncertainty, and promoting transportation economies.

Under step 1 of the SC network design process, it is important for the location selection team to

be aware of the firm's overall business and corporate strategies and the supply chain.

Full collaboration is the dynamic combination of

both vertical and horizontal collaboration

Horizontal collaboration refers to a relationship that is ____ and/or ____.

buyer to buyer and/or seller to seller

In the Implement Sourcing Strategy step, the most important thing is to

choose a supplier or suppliers, depending on the objectives of the sourcing decision.

There are several classifications of purchased items. Which of the following is NOT one of these?

collaborative

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a

committee.

____ exist for basic raw materials such as grain, oil, and sugar.

commodity markets

Which is not a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location?

decentralized facilities

Air carriers were looked on as

emergency only carriers

ERP systems

have information elements needed by SCIS applications.

The distances in today's supply chains produce (choose the best answer):

higher costs, longer transit times, and more disruptions

In the Evaluate Supply Source step of the Strategic Sourcing Process, the firm

identifies all possible suppliers that might be able to satisfy the user's needs.

The term supply chain information system (SCIS) is defined as

information systems that automate the flow of information between a firm and its suppliers.

Railroads fall into a group called

natural monopolies.

The primary facility operations focus is

on the movement and storage of product.

Which of the following is NOT one of the drivers of supply chain excellence?

price/performance of applications

Which is not a form of purchasing?

process improvement

Total procurement price includes (choose the best answer):

product price, transaction costs, and transportation costs

Economic deregulation sparked several things. Which one does not belong?

safety issues

The most important trade-off of the number of distribution centers is with ...

transportation

When a blanket rate structure is used, which factor is eliminated as a locational determinant?

transportation rate

The ____ of demand, customer orders, delivery status, inventory, stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses.

visibility

Trade imbalances most affect

water carriers.

Terms of sale establish

when ownership and title passes.