LSCM 3960 Final Study Guide

Outsourcing is a fairly new concept. False True

False

Packaging is very important in the manufacturing operation. True False

False

Which of these is not a production method? Make-to-stock Create-to-order Build-to-order Assemble-to-order

Create-to-order

Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics? Product Promotion Price Customer service

Customer service

Supply chain management involves the control of raw material, in-process, and finished goods inventories. True False

True

Supply chain software is now available over the Internet. These applications are collectively known as on-demand software. True False

True

Predictive analytics is the level that incorporates available data to answer questions such as what, where, and when certain supply chain activities, processes, or events are happening. True False

False

Contract warehousing is different than 3PL warehousing. True False

False

Corporate executives are already well aware of the impact supply chain management can have on their businesses. True False

False

Cross-docks typically increase transportation costs. True False

False

Customer relationship management is a new concept only recently receiving attention. True False

False

Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation. False True

False

Customs Trade Partnership Against Terrorism (C-TPAT) is a mandatory program in which importers must participate. True False

False

Drivers and facilitators are internal issues that an organization must address before seeking a 3PL. True False

False

EOQ can only be used for "push" inventory. False True

False

Efficiency of distribution facilities and networks is not nearly as critical as their speed. True False

False

Evaluating current or potential supply chain performance metrics is not important to a sound logistics program. True False

False

Exponential smoothing can use constants higher than 1, but not more than 5. True False

False

Export Trading Companies and Export Management Companies are essentially the same. True False

False

External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand. False True

False

Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized. True False

False

Forecasting has become extremely accurate, especially since the development of the S&OP process. True False

False

Four major categories that provide a useful way to examine logistics and supply chain performance are time, quality, cost, and inventory. True False

False

Given the availability of information, transportation buying has become comparatively easy. False True

False

Globalization has had little effect on consumers. True False

False

Globalization is not considered to be one of the external factors driving change in logistics. True False

False

IBM Watson is a prescriptive analytics system that can help to understand data, learn from it, and reason through it. False True

False

In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement. True False

False

Intermodal growth has been flat. False True

False

Inventory management is not as important as it once was due to other factors that have come into play. True False

False

Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention. True False

False

IoT is unconnected technology with sensors, on/off switches, and Internet linkages that allow supply chain managers to intelligently link people, processes, data, and things. True False

False

It is not difficult to find and train high-quality personnel for DC operations. False True

False

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory. False True

False

JIT was developed in the U.S. and copied by the Japanese. False True

False

KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant data. False True

False

Logistics facilities and their locations are relatively variable and easily modified in the short term. True False

False

MRP is most effective at managing independent demand items. True False

False

MRPII will not allow an organization to integrate financial planning with operations and logistics. False True

False

Materials management and physical supply are terms that cannot be used interchangeably. True False

False

Mean Absolute Deviation (MAD) is a good metric of forecast accuracy because it shows whether a forecast is above or below actual demand. True False

False

Nike uses active sensors in high-value merchandise that send out telemetry data, tracking the package's traveling speed and conditions. Applying analytics to this data has the potential to largely reduce supply chain reaction times to avoid delays in shipments. False True

False

Once a 3PL provider is chosen, it is not necessary for an organization to seek continuous improvements as the 3PL will handle that function. True False

False

Operating globally has become harder to accomplish for individuals and small companies. False True

False

Order accuracy and order completeness are the same. False True

False

Purchase economies and transportation economies are not complementary. True False

False

RFID applications have been widely embraced due to their low cost and high reliability. False True

False

Rail is the mode of transportation that is the fastest shipment travelling over 800 miles. True False

False

Reverse flows in logistics have decreased. True False

False

Routing flexibility is a term used in connection with how spare parts move through the supply chain. True False

False

SCIS software selection is relatively straightforward as the choices have been simplified. Correct! False True

False

Seamless order entry is not that important to the success of omni-channel retailing. False True

False

Spreadsheets and database software no longer have a place in SCIS as newer tools have supplanted them. False True

False

Storage space costs are not variable. False True

False

Supply and demand has become less volatile as managers become more adept at controlling the elements. True False

False

Supply chain managers no longer need to worry about suboptimization in light of today's technology. False True

False

Technological capabilities ultimately determine the success or failure of SCIS, rather than the technology users. True False

False

The "IT gap" refers to the difference between the internal IT capabilities of 3PL users and the IT expertise of the 3PL providers. True False

False

The North American Free Trade Agreement has removed all trade barriers between the U.S., Canada, and Mexico. False True

False

The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2. False True

False

The buyer and seller look at order time from the same perspective. False True

False

The equivalent sales increase for supply chain cost saving is found by dividing the cost saving by the organization's profit margin. False True

False

The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks. True False

False

The first principle of supply chain management is to segment customers based on profit. False True

False

The focus on performance measurement is a recent event in industry. False True

False

The grid technique determines the highest cost facility location in an area. True False

False

The grid technique will evaluate all transportation rates equally. True False

False

The main strategy behind routing guides is to maintain very tight control of transportation costs. False True

False

The materials requirement plan (MRP) is a long-range materials plan that converts information regarding end-items in the MPS into a set of time-phased component and part requirements. True False

False

The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis. True False

False

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

False

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

False

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

False

The reason retailers are so successful with the omni-channel is because the channels provide so many different views of the customer. True False

False

The reorder point depends on the orders in-house at that time. False True

False

The responsibility for transportation management is typically not assigned to any one management discipline in an organization. False True

False

The term supply chain information system (SCIS) is well defined and commonly understood. True False

False

The utility created through the basic marketing activities is known as place utility. True False

False

The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily. True False

False

There are ten principal activities to the OTC model. True False

False

To hold down distribution cost, the lowest cost carrier should always be used. True False

False

Vertical relationships more than horizontal relationships have been identified as highly useful to the achievement of long-term supply chain objectives. True False

False

With all of the new technology and game-changing ideas, the future of omni-channel does not look like it will take off. True False

False

Which one of the choices below is NOT one of the various stages and levels of sophistication and robustness that is associated with supply chain analytics? Descriptive Predictive None of these answers Cognitive Indicative

Indicative

Which of the following is NOT a supply chain decision area regarding ROA improvement? Channel Structure Management Inventory Management Information Management Order Management

Information Management

There are three principle supply chain information requirements that support effective decision-making. Which of the following is NOT one of the three? Information must support multiple types of supply chain decisions. Information must meet quality standards to support fact-based decision-making. Information must readily flow within and between organizations. Information must be in the form of real-time data.

Information must be in the form of real-time data.

What is the effect of tapering rates on facility location? It makes the optimum location at the midpoint between raw material sources and the marketplace. It pulls the location toward the source or the market. It pushes the raw materials sources toward the location. It pulls the facility toward the location.

It pulls the location toward the source or the market

If a DC that picks primarily cases switches to mostly broken cases (with the same items), which of the following would occur in the DC? Total transportation costs would increase Total inventory holding costs would increase Total packaging costs would increase Labor costs would increase None of these answers

Labor costs would increase

The current logistics management approach is supported by which performance measurement concepts? The D1 concept developed by the Supply Chain Council. Least total cost Metrics Total cost

Least total cost

A DRP system is usually coupled with a _____ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods. VMI/consignment MRP JIT Kanban

MRP

Which management area in an organization does not normally have transportation responsibility? Procurement Manufacturing Marketing Logistics

Manufacturing

A weighted moving average assigns higher weights to more recent periods. True False

True

ABC analysis uses a single criterion to classify SKUs from most important to least important. True False

True

Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast. False True

True

All modes of transportation provide the same basic service. False True

True

An analysis of the benefits of a reverse or return flows program is dependent upon the development of the true costs associated with such a program and comparing them to a realistic measure of the benefits. True False

True

An importer can store goods in a bonded warehouse for up to three years without paying duty. True False

True

Another metric classification scheme that has been receiving increased attention is that developed by the Supply Chain Council and contained in the Supply Chain Operations and Reference (SCOR) model. False True

True

As the dollar value of a product decreases, its inventory value decreases. True False

True

Bias measures how accurate the forecast is compared to actual demand. False True

True

Both reverse and closed-loop systems are important strategies that impact sustainability in a positive manner. False True

True

Capacity requirements planning is used to check the feasibility of the materials requirement plan. True False

True

Capital cost is also called interest or opportunity cost. True False

True

Central to an understanding of supply chain analytics is to recognize that one of the highest priorities at many organizations today is to take a giant leap from data to information, and then from information to understanding. False True

True

Collaboration is usually defined as a "business practice that encourages individual organizations to share information and resources for the benefit of all." True False

True

Corporate reengineering is often a reason for examining the firm's current logistics/supply chain network. False True

True

Customer service is anything that touches the customer. True False

True

Customer service is of equal importance to both logistics and marketing. True False

True

Customers and suppliers should be included in the development of metrics. False True

True

Demand management might be defined as focused efforts to estimate and manage customers' demand, with the intention of using this information to shape operating decisions. True False

True

Dependent demand is directly influenced by independent demand. False True

True

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

True

Even though there are references to supply chain management in the 1980s, SCM did not capture the attention of senior-level management until the 1990s. True False

True

Event management systems monitor the supply chain for events that are out of tolerance, such as a shortage of parts at a manufacturing location or the breakdown of a truck delivering an important order. True False

True

Facilities may sometimes be located where senior officers prefer. False True

True

Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers based on the specific costs of servicing a customer's orders relative to how, how much, what, and when a customer orders. True False

True

For an omni-channel retailer, the critical issue is not where inventory is positioned within the network but whether it is available to fill an order, regardless of its origin. False True

True

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer. True False

True

In a commercial zone, the same transportation rate is applied from an origin to any point in the zone. False True

True

In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels. False True

True

Individual supply chain applications must work together to provide a holistic view of all relevant processes, and must also link effectively to supply chain partners. False True

True

Information is useful only if it can drive effective decision making. True False

True

JIT, MRP, and MRP II all incorporate some version of the basic EOQ model into their philosophies. True False

True

Labor-intensive industries place significant emphasis on the availability and cost of labor. True False

True

Liner offers a global ocean freight transportation that schedules departures and arrivals between major ports. False True

True

Machine flexibility provides the ability to produce different types of products as well as change the order of operations executed on a product. True False

True

Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole. True False

True

Manufacturing and production operations create form utility. True False

True

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

True

Motor carrier cost is highly variable. False True

True

Nonintegrated air carriers do not supply door-to-door service. True False

True

Ocean transportation offsets slower service with lower rates than other modes. False True

True

Offshoring is a term that means relocating an activity to a contract manufacturer in another country. True False

True

One impact that the transit privilege has on facility location is that intermediate locations can be optimum. False True

True

One of the primary tradeoffs at the facility level is space versus equipment. True False

True

Order cycle time (OCT) is another very important logistics service metric. OCT influences product availability, customer inventories, and seller's cash flow and profit. True False

True

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself. False True

True

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

True

Outbound-to-customer logistics systems are also referred to as physical distribution. False True

True

Outsourcing and contract logistics are terms sometimes used to describe third-party logistics. True False

True

Outsourcing transportation is a "buy" decision. True False

True

Phantom demand is created by over-ordering during peak demand. True False

True

Pipeline costs are predominantly fixed. True False

True

Processes that can produce a range of products are said to have economies of scope. True False

True

Product handling functions include both receiving and shipping. False True

True

Product value is an important factor in modal selection. False True

True

Proper product slotting can improve labor productivity and generate other advantages for the organization and its customers. True False

True

Railroad's length of haul is longer than that of motor carriers. True False

True

Railroads have accessibility limitations. True False

True

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing. False True

True

Resource requirements planning (RRP) is a long-run, macro-level planning tool. True False

True

SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S. True False

True

Scorecards and key performance indicators (KPIs) are the same thing. True False

True

Shippers see more strategic and IT-based processes such as supply chain planning and network modeling and optimization, as great areas of opportunity to leverage big data. False True

True

Slotting is defined as the placement of product in a facility for the purpose of optimizing materials handling and space efficiency. True False

True

Software tools related to the movement of goods across the supply chain are lumped together in a general category called transportation management systems (TMS). True False

True

Some European countries have passed green laws, which means that companies doing business in these countries must be cognizant of regulations and policies regarding sustainability. True False

True

The internal balancing method deals with: channel selection. price and lead time. inventory and production flexibility. functional silos.

inventory and production flexibility

The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is not included? inventory carrying costs complexity inventory deployment technology

inventory carrying costs

A(n) _____ relationship exists between the cost of lost sales and inventory cost. reverse proportional inverse nonlinear

inverse

Resource requirements planning (RRP): is a long-run, macro-level planning tool. checks the feasibility of the master production schedule. checks the feasibility of the materials requirement plan. is a long-range materials plan that translates annual business plans.

is a long-run, macro-level planning tool.

Exponential smoothing: is used to determine random variations. uses primarily weighted averages to compensate for errors. is one of the most commonly used techniques. is used to reduce channel fluctuations.

is one of the most commonly used techniques.

The two largest cost centers in a DC are: pallets and labor. equipment and space. labor and space.

labor and space

The term functional silos refers to: the noncommunication between customers and vendors. product storage for physical supply. a technique to secure corporate marketing strategies. lack of coordination between departments.

lack of coordination between departments.

Which category of ocean shipping offers common carrier service, sailing on set schedules over specified sea routes? charter vessels liner service demise charter vessels private vessels

liner service

Which is a major category of ocean shipping? liner vessels passenger travel common carriers exempt carriers

liner vessels

Performance measurement is important because companies presently operating in the European Economic Community need to understand how its competitors are doing. it allows firms to rate competitors. without it, managers would not know how the global economy is doing. lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.

lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.

One of the major challenges of supply chain management is building safety-stock inventory. Pushing inventory back to vendors. maintaining the visibility of inventory. forward buying.

maintaining the visibility of inventory.

The Supply Chain should manage materials/products, information, and financials. seek to maximize profits. use the same techniques internationally that it uses domestically. manage all aspects of transportation, selecting the least cost when possible.

manage materials/products, information, and financials

Most processes are basically organized the same. True False

False

One type of demand fluctuation is caused by random variation. What is random variation? Errors in inventory management Failure to properly execute the SO&P process plan Errors not caught by using exponential smoothing A development that cannot normally be anticipated

A development that cannot normally be anticipated

Which of the following order cycle lengths would require the buyer to hold the most total inventory during lead time? 10 days, +/- 4 days 10 days, +/- 2 days 8 days, +/- 5 days 9 days, +/- 3 days

10 days, +/- 4 days

A carrier is never excused from a claim. False True

False

The ABC analysis is based on Pareto's law. False True

True

JIT is a _____ system. MRP push Pareto's law pull

pull

Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition? Accessibility Performance Pricing Services

Accessibility

Which of these is NOT a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location? Addition of many wholesaler/distributor operations Use of third-party logistics services Strategically located cross-docking facilities Customer-direct delivery

Addition of many wholesaler/distributor operations

What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network? Shifting locations of customer and/or supply markets Change in customer service requirements Change in corporate ownership All of these answers

All of these answers

Complexity in the supply chain is caused by transportation requirements. the number of SKUs. locations of customers and suppliers. All of these answers.

All of these answers.

What is it called when consumers can place an order with Amazon for groceries? Amazon Flex Amazon Food Amazon Fresh Amazon Effect None of the answers

Amazon Fresh

This type of forecast error measure is the only one to show if a stock out or overage occurred: MAPE. MSE. none of these answers. CFE (bias). MAD.

CFE (bias)

Which major locational determinant considers locating near the competition? Labor climate Company preference Quality of life Supplier networks

Company preference

Which is an advantage of the grid technique for facility location? It establishes the final determination of the best site. It is a dynamic approach with solutions remaining optimum over many time periods. It considers topographic conditions in choosing the optimum location. Computationally, it is relatively easy to use.

Computationally, it is relatively easy to use.

Which one is not one of the four requirements for cognitive systems? Contextual Adaptive Conducive Interactive Iterative

Conducive

Which is NOT part of dependability? Cycle time Correct orders Consistent pricing Safe delivery

Consistent pricing

Which of the following types of production processes use tools and equipment that are generalized in nature? Assembly line Batch Continuous process Job shop

Continuous process

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source? Procurement Production Transportation Demand

Demand

Which of the following does not belong in the list of the seven principles of supply chain management? Differentiate products closer to the customer Adopt channel-spanning performance measures Segment customers based on service needs Develop an outsourcing strategy to maximize asset utilization

Develop an outsourcing strategy to maximize asset utilization

Seasonal stocks are not influenced by: weather. holidays. EOQ. transportation.

EOQ

Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape? Environmental concerns Technology Government policy Globalization

Environmental Concerns

Four types of forecast error measures can be used. Which one of the following is not one of the four types? Mean squared error Cumulative sum of forecast errors Exponential smoothing for trends Mean absolute deviation

Exponential smoothing for trends

Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations. True False

False

"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." True False

False

3PL's are asset-based logistics providers that physically move product through the supply chain. True False

False

A Foreign Freight Forwarder is unregulated by the government. False True

False

A Maquiladora plant can be located anywhere in South America. True False

False

A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services. True False

False

A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow. False True

False

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

False

A firm using air transportation cannot use the same packaging for international shipping as for domestic shipping because many cargo aircraft are not pressurized. True False

False

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

False

A metric and a measure are the same. False True

False

A stockout always results in a back order. True False

False

A workcenter is a fixed layout where the product remains in place for the duration of production. True False

False

Activity Based Costing (ABC) allocates costs to activities based on a fixed predetermined measure (e.g., cases). True False

False

Activity-based costing works well in warehouse-type environments but does not work for customer service applications. False True

False

After the layout of the operations is determined, attention shifts to the facility size of the operations within the distribution operation. True False

False

An index combines two or more metrics into a single indicator. True False

False

As a firm spends more on transportation service, cost of lost sales increases. True False

False

Asset utilization is very important in a 3PL warehouse. False True

False

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

False

Capacity planning and materials planning are the same. True False

False

Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation. True False

False

Companies have discovered that there is no revenue opportunities to offset the costs in sustainability practices. True False

False

Companies now use strategies that are lean, flexible, or adaptive; they wait for customers to push products to the market. True False

False

What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse? Materials handling Physical distribution Business logistics Order fulfillment

Materials handling

This mode of transportation is the one most often used in intermodal shipments. Rail Air Motor carrier Ocean

Motor carrier

Which of these is not a support function? Safety, maintenance, and sanitation Inventory control Movement and storage Information technology

Movement and storage

What are fixed spatial points where goods stop for storage or processing? Nodes Links Cost centers Fulfillment centers

Nodes

In an MRP system, this document identifies all of the components required to assemble an independent demand item. Inventory status file Bill of materials Master production schedule None of these answers

None of these answers

This type of fulfillment model has the manufacturer delivering its products directly to the retailers' stores. Flow-through Integrated Outsourced Store-fulfillment None of these answers

None of these answers

Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors. The "Big Box" stores have developed their own sources. This is still true and has not changed. Computerization has greatly increased the flow of information from the source. None of these answers

None of these answers

Which of the following is true regarding optimization models? Optimization models are able to accommodate broad problem definitions, rather than provide an optimum solution. Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation. The grid technique is a powerful optimization model. Optimization models will guarantee increased profits.

Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation

Which of the following is NOT an element of Order Management? Optimizing mode mix Reducing stockouts Optimizing order fill rate Reducing order processing times

Optimizing mode mix

_____ is/are a major barrier to the effective use of information technology. People Effective applications Management support Cost

People

Which one of the various stages of sophistication and robustness associated with supply chain analytics focuses on questions such as what is likely to happen, what are the likely trends, and what are the results if certain events occur? Cognitive Descriptive Prescriptive Predictive

Predictive

The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs? Warehousing costs Transportation costs Promotion costs Packaging costs

Promotion costs

Which of the below is not part of the seven Rs of logistics? Information Cost Quality Place

Quality

Logistics creates which utility through production forecasting, production scheduling, and inventory control? Form utility Quantity utility Time utility Possession utility

Quantity utility

What is the best financial metric to show the profit an organization generates in relationship to assets utilized? Stock price ROA Return on net worth Profit

ROA

Which of the following modes of transportation is considered the most "capable"? Pipe Motor Ocean Rail Air

Rail

Which of the following is not a reactive capability strategy? Machine flexibility Routing flexibility Resource requirements planning Offshoring

Resource requirements planning

Which of these is not a freight document? Routing guide Bill of lading Freight claims form Freight bill

Routing guide

What are the steps in the CRM process? Segment customer base, then measure service, and improve Segment customer base, identify service/package, then measure service, and improve Segment customer base, then identify service/package Measure service, then improve

Segment customer base, identify service/package, then measure service, and improve

Which is not one of the seven principles of supply chain management Segment customers based on service needs Customize the logistics network Standardize where feasible Source strategically None of these answers

Standardize where feasible

Supply chain information technologies can provide timely, cost-efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers. True False

True

Which of the following does a forecast always assume? Business cycles do not exist The past always repeats itself Every forecast is seasonal Base demand always moves in a positive direction

The past always repeats itself

Which is correct regarding tapering rates? Uses transportation simplifications to recommend facility locations The principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles. In a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market. Transportation rates increase with distance directly in proportion to the distance.

The principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles.

What is often the largest component of logistics costs? Inventory costs Transportation costs Shipper-related costs Administrative costs

Transportation costs

When a blanket rate structure is used, which factor is eliminated as a locational determinant? Raw material sources Market sources Labor rate Transportation rate

Transportation rate

"Batching economies" and "cycle stocks" are the same. True False

True

"Order to cash" and "order cycle" are the same. False True

True

4PL providers not only provide a broader scope of services to their clients and customers, but typically may be more strategically involved. True False

True

A bill of lading is nonnegotiable. False True

True

A common productivity is measured as the ratio of real output to real input. True False

True

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory. True False

True

A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system. True False

True

A key requirement for service quality monitoring is information. True False

True

A logistics channel is a supply chain of network organizations engaged in transfer, storage, handling, communication, and other functions that contribute to the efficient flow of goods. True False

True

A metric could drive inappropriate behavior. True False

True

A metric is complex to define, usually involves a calculation or a combination of measurements, and is often in the form of a ratio. False True

True

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply. True False

True

A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute. False True

True

A successful approach in overcoming organizational resistance is to effectuate collaboration in the supply chain. True False

True

The "bullwhip" effect occurs when forecast errors are magnified and demand variability increases as orders move upstream from retailers to distributors to producers. True False

True

The drawback of centralized inventory is the long distance to customers, which typically extends lead times and results in higher transportation costs. False True

True

The efficiency and effectiveness of a logistics/supply chain operation are constrained by the location of plants and warehouses in its overall network. False True

True

The first facility consideration is to determine the size of each operation within the network. True False

True

The first stage in the process model for forming and sustaining supply chain relationships involves the process by which a manufacturer becomes fully aware of its logistics and supply chain needs. True False

True

The fourth principle of supply chain management is to differentiate products closer to the customer. False True

True

The growth of outsourcing has created transportation challenges. True False

True

The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect. True False

True

The last decade of the twentieth century was a period of rapid change for organizations, especially businesses. True False

True

The promise of driverless vehicles is a long-range prospect as much more testing and proof of concept will be needed to gain regulatory and public acceptance of truly driverless vehicles. False True

True

The seven principles of supply chain management have stood the test of time very well. False True

True

The supply chain should manage three important flows, namely, materials/products, information, and financials. True False

True

The terms of a demise charter transfers full control of the chartered vessel to the charterer. True False

True

The third era of globalization is said to have begun around the year 2000. The significant characteristic of this era is that it is being powered by individuals and smaller organizations rather than global multi-nationals. True False

True

There are three principle supply chain information requirements that support effective decision-making. First, the information in a system must meet quality standards to support fact-based decision making. Second, the information must readily flow within and between organizations. Third, the information must support multiple types of supply chain decisions. True False

True

There is a strong feeling among some supply chain experts that the mitigation of risk is the best driver of sustainability initiatives. True False

True

Transportation is the physical movement or flow of goods. True False

True

Transportation plays a key role in supply chain design, strategy development, and total cost management. False True

True

Vertical integration refers to collaboration typically among buyers and sellers in the supply chain. True False

True

WMS is more than a simple database that provides stock location information. False True

True

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

True

When establishing a distribution strategy, the first and most obvious consideration is the product. True False

True

While there are four types of forecast error measures that can be used, none are foolproof. True False

True

With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability. False True

True

World-class organizations can improve performance along multiple dimensions without making extensive performance tradeoffs or sacrifices. True False

True

This type of inventory is influenced by the reliability of demand and lead time. Seasonal stock WIP Safety stock Cycle stock

WIP

Which of the answers below is an example of the creation of form utility by a logistics activity? When lumber is cut and made into a chair When a firm's finance manager approves customer purchases on a credit basis When Dell combines components with software to produce a computer to a customer's specifications When bulk products are broken and repackaged at a distribution center

When bulk products are broken and repackaged at a distribution center

A Maquiladora plant is a new type of flower. a U.S. plant performing manufacturing, processing, or assembly activity in Mexico. an entity created under NAFTA a factory owned by the Maquiladora Corporation.

a U.S. plant performing manufacturing, processing, or assembly activity in Mexico.

The global logistics channel intermediary that supervises the movement of goods through customs and ensures that the documentation accompanying a shipment is complete and accurate is an export packer. a foreign freight forwarder. a foreign trade specialists. a customs house broker.

a customs house broker.

A project layout is: a floor plan of the production facility. a fixed location layout where the product remains in place for the duration of production. a product-focused layout in which machines and workers are arranged according to the progressive sequence of operations. a process-focused layout that groups together similar equipment or functions.

a fixed location layout where the product remains in place for the duration of production.

A demand-driven system is also known as a marketing system. a pull system. a supply chain. a multi-echelon system.

a pull system.

An "executive dashboard" is: used by senior management to track profits. metrics used by an organization's suppliers. a small number (usually less than five) of KPIs. a trend that has only recently developed.

a small number (usually less than five) of KPIs.

Focus production is a strategy in which a given plant produces one or two items of the company's total product line. a trend in the electronics industry with manufacturing in China. used by those firms not sure of the market demands. a strategic decision to make only what the market desires.

a strategy in which a given plant produces one or two items of the company's total product line.

The weighted moving average method assigns: a weight to each previous period. information based on a simple average. a value in each period being averaged. a weight greater than 1.

a weight to each previous period.

The SCOR model provides suggested metrics: that allow marketing to evaluate channel selection. for proving a base for ABC costing. for segmenting customers. across multiple dimensions for each of the five Level One processes.

across multiple dimensions for each of the five Level One processes

A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called: just-in-time inventory. adaptive manufacturing. machine flexibility. capacity requirements planning.

adaptive manufacturing.

Demand management includes: flows of products. flows of services. flows of capital. all of these answers

all of these answers

The distances in today's global supply chains produce: higher cost. longer transit times. more disruptions. all of these answers.

all of these answers

The primary tradeoffs and relationships between resources include the following: people vs. space. equipment vs. people. space vs. equipment. all of these answers.

all of these answers

Effective order management can have an impact on: increasing revenues. improving ROA. reducing supply chain costs. all of these answers.

all of these answers.

Managers have several options for software development and implementation. They include: external software vendors. internal development. third party logistics firms. all of these answers.

all of these answers.

On-demand supply chain software that is not installed on a company computer is gaining popularity. An issue to be addressed with this purchase option is: functionality may not be as robust as traditional software. total cost of ownership could exceed purchase cost over the long run. data control is an issue. all of these answers.

all of these answers.

Supply chain software includes technologies that: address virtually every function and task that occurs in the supply chain. help organizations plan, execute, and control supply chain activities in real time. help to maintain visibility of inventory. all of these answers.

all of these answers.

Simulation models: search directly for the best warehouse configuration. generate SAILS reports. guarantee optimum solutions. allow the decision maker to test the effects of alternative locations.

allow the decision maker to test the effects of alternative locations.

Economies and companies could improve their "wealth" by moving production off shore. ensuring that logistics is used to gain advantage in the marketplace. becoming multi-national. allowing specialization of tasks.

allowing specialization of tasks.

A third-party logistics firm may be defined as: an outsource service. a firm that owns trucks and warehouses. a firm that owns trucks and warehouses and provides computer support. an external supplier that performs or manages all or part of a company's logistics functions.

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

The decision to alter the supply chain process is essentially _____ issue. a supply chain a management an optimization a customer satisfaction

an optimization

Customer service can be defined as: a philosophy. order fulfillment. the SCOR model. anything that touches the customer.

anything that touches the customer.

Heuristic models: have fallen from use because of SAILS. are able to accommodate broad problem definitions. provide an optimum solution. are typically "seat of the pants" solutions.

are able to accommodate broad problem definitions.

WIP inventories: are not included on the balance sheet. are the same as VMI inventories. are not impacted by EOQ. are associated with manufacturing.

are associated with manufacturing

The grid technique: is a variation of SAILS. assumes that the raw materials sources and finished goods markets are variable. assumes nonlinear transportation rates. assumes that the raw materials sources and finished goods markets are fixed.

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

The roles of the distribution center include _____. balancing supply and demand promoting transportation economies balancing supply and demand, protecting against uncertainty, and promoting transportation economies protecting against uncertainty and promoting transportation economies

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

A closed-loop system manages: green laws. waste flow. recycling. both forward and reverse flows. none of these answers.

both forward and reverse flows.

Full collaboration is the dynamic combination of: buyers, sellers, retailers, and 3PLs. buyers, sellers, retailers, 3PLs, and appropriate government agencies. both vertical and horizontal collaboration. buyers and sellers only.

both vertical and horizontal collaboration

Horizontal collaboration refers to a relationship that is _____ and/or _____. 3PLs to 3PLs; service provider to service provider buyer to buyer; seller to seller flat across the chain; involving partners equal in size collaboration with horizontal; vertical competitors

buyer to buyer; seller to seller

Order management system represents the principal means by which: orders are handled inside the company. buyers and sellers communicate information relating to individual orders of product. customers are segmented by profitability. price and lead time add value.

buyers and sellers communicate information relating to individual orders of product.

Activity Based Costing: is a very new management science. can be combined with customer segmentation. is too sophisticated for many applications. is useful for distributions centers but not customers.

can be combined with customer segmentation.

A downside of direct shipping is: can create higher transportation charges. the product may not lend itself to this method. that customers may not like this method. that it takes product flow away from the distribution center.

can create higher transportation charges.

The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as a: center of gravity. break-even point. zero point. source point.

center of gravity.

Vertical collaboration refers to: collaboration among buyers and sellers in the supply chain. collaboration among carriers and shippers. collaboration that moves up the supply chain. collaboration with competitors.

collaboration among buyers and sellers in the supply chain.

Logistics, in its simplest form, combines inbound logistics with the outbound logistics of physical distribution. is another term for transportation management. does not involve customer service or other related functions. is a military term, as it was developed originally to supply the battlefield.

combines inbound logistics with the outbound logistics of physical distribution.

An index: is easily defined with no calculations and with simple dimensions. is complex to define, usually involves a calculation, and is often in the form of a ratio. combines two or more metrics into a single indicator. is any quantitative output of an activity or process.

combines two or more metrics into a single indicator

Challenges for the trucking industry include: competition. oversupply of qualified drivers. limited equipment options. lack of flexibility.

competition

Transportation efficiency promotes _____ in the supply chain. KPIs capacity competition intermodal demand

competition

Another driving influence for supply chain reexamination has been the desire of organizations to change their supply chain focus from a _____ to an "investment" center. cost center logistics-oriented system value neutral warehouse system

cost center

Packaging is: critical to logistics. critical to manufacturing. critical to product differential. a factor in outsourcing.

critical to logistics

The essence of demand management is to estimate and manage _____ and use this information to make operating decisions. customer demand vendors and suppliers SO&P processes channel orders

customer demand

Many organizations are working more closely with: customers. customers and suppliers. third-party logistics firms. customers, suppliers, and various types of logistics suppliers.

customers, suppliers, and various types of logistics suppliers.

Capital cost focuses on the cost of capital tied up in _____ and the resulting lost opportunity from investing that capital elsewhere. inventory plants WIP distribution centers

inventory

Supply chain software that provides a platform for manufacturers, distributors, and retailers to aggregate and organize item-related data such as item number, price, description, and weight is called: data synchronization tools. supply chain collaboration tools. business intelligence tools. spreadsheets and database tools.

data synchronization tools.

As a firm spends more on transportation service, cost of lost sales: increase. decrease. stay the same. can't be determined.

decrease

As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will _____ and variable costs will _____. decrease; decrease increase; increase decrease; increase increase; decrease

decrease; decrease

As Q decreases for EOQ, the cost per order: decreases. can't be determined. stays the same. increases.

decreases

As the dollar value of a product decreases, its transportation cost: increases. decreases. stays the same. can't be determined.

decreases

As the number of picks per order picker decreases on a given tour, his/her total time out _____ and the time per pick _____. decreases; decreases decreases; increases increases; increases increases; decreases

decreases; increases

Dependent demand relates to: demand for another inventory item or product. the spare parts needed to fill the order. VMI inventories. the cost of capital for the firm.

demand for another inventory item or product

The Supply Chain Concept is very new and considered cutting edge technology. developed from the previous Physical Distribution concept. is highly dependent of computerization. not always well understood by senior managers.

developed from the previous Physical Distribution concept.

A _____ analysis examines a logistics system over a long time period or range of output. cost center dynamic link node least cost

dynamic

Processes that can produce a range of products are said to have: economies of scale. economies of scope. routing flexibility. work centers.

economies of scope

Demand for transportation at the microeconomic level is _____ while the demand for transportation at the macroeconomic level is _____. elastic; inelastic elastic; elastic inelastic; elastic inelastic; inelastic

elastic; inelastic

Air carriers were historically looked upon as: insignificant. having equipment shortages. a fringe participant. emergency only carriers.

emergency only carriers.

The classic objective of a network design model has been to: establish the number, location, and size of finished goods distribution centers and associated product flows. find the best location for a forward facing warehouse. measure and control site locations. examine the finished goods flow from the warehouse to the customer.

establish the number, location, and size of finished goods distribution centers and associated product flows

Which type of global logistics channel intermediary enables goods to move through customs more easily by knowing the materials and methods to use in constructing the most economical crate or container to hold goods for shipment? NVOCC export packer customs house broker export trader

export packer

Gemini products wishes to enter foreign markets but lacks the resources to do so. They evaluate their alternatives and approach Overseas Traders, LLC, a company that specializes in the foreign distribution of products of the type which Gemini manufacturers. Overseas purchases $50,000 of Gemini's products for sale on the international market. Overseas is which type of global logistics channel intermediary? export trading company NVOCC export packer customs house broker

export trading company

In the event of a "stockout" one of the things that could happen is: the cost of capital is increased. the vendor's plant shuts down. extra shipping cost may be incurred. the SCOR process would come into play.

extra shipping cost may be incurred.

In the short run, the firm's network is _____ while in the long run it is _____. variable; reversible adoptable; reversible fixed; variable reversible; fixed

fixed; variable

Goods can be stored in a bonded warehouse Indefinitely. until the next shipment of the same product arrives. for 3 years. until next year.

for 3 years.

Which type of strategic global logistics channel intermediary provides expert advice to small international shippers, consolidates small shipments, and performs routine actions that shipments require? NVOCC export packer customs house broker foreign freight forwarder

foreign freight forwarder

The value that is added to goods through a manufacturing or assembly process is: form utility. place utility. time utility. possession utility.

form utility.

Traditional customer profitability analyses would start with _____ less returns and allowances (net sales) and subtract the cost of goods sold. back orders gross margin the forecast gross sales

gross sales

ERP systems: have information elements needed by SCIS applications. are taking the place of SCIS systems. focus primarily on manufacturing issues. require RFID to be fully functional.

have information elements needed by SCIS applications.

Time utility depends on: when the carrier picks up the shipment. transportation companies delivering on time. proper forecasting. having the product available when the user wants it.

having the product available when the user wants it.

Application of the grid technique to the location of a city warehouse: considers the costs of moving raw materials into the facility, and moving finished goods to the customers. incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone. accounts for information like highway access and facility availability within the grid coordinates. is no different from applying it in any other situation.

incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone.

As the dollar value of a product increases, packaging costs: increase. decrease. stay the same. can't be determined.

increase

As the length and complexity of a supply chain increases, a firm's inventory levels: stay the same. decrease. can't be determined. increase.

increase

As the level of substitutability for a product increases, its stockout costs to the manufacturer: stay the same. can't be determined. decrease. increase.

increase

As a product's susceptibility to loss and damage increases, its transportation cost: decreases. can't be determined. increases. stays the same.

increases

As the weight density of a product decreases, transportation cost per pound: increases. decreases. stays the same. can't be determined.

increases

There are two parts to the order management process. The first is _____ and the second is _____. managing the order after it is received; influencing how the customer orders shipping the order; taking the order influencing how the customer orders; managing the order after it is received the Internet model; the traditional model

influencing how the customer orders; managing the order after it is received

Channel structure management includes decisions regarding the use of outsourcing, channel inventories, _____, and channel structure. KPIs cash-to-cash management order cycle information systems

information systems

The term supply chain information system (SCIS) is defined as: software that manages the supply chain. technology that has enhanced the ability of companies to pay more attention to customers. process management software that may or may not use ASP applications. information systems that automate the flow of information between a firm and its suppliers.

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

Scorecard and key performance indicators (KPIs) refer to: metrics to manage logistics operations. measuring output. sporting events. Management's evaluation of supply chain staff.

metrics to manage logistics operations.

Railroads fall into a group called: service challenged carriers. intermodal operators. nonintegrated carriers. natural monopolies.

natural monopolies

An advantage to dedicated fulfillment is: high start-up costs. duplicate inventories. no disruption to store operations. need for separate facilities.

no disruption to store operations

Outsourcing involves obtaining materials, parts, and products from other companies. hiring foreign nationals to manage parts of the business. moving company facilities away from the home office. building a factory in another country.

obtaining materials, parts, and products from other companies.

The demographics of our society has changed because of the increase in two-career families and single-parent households. birth rates have changed. of immigration. the "Baby Boom" generation is now turning 60.

of the increase in two-career families and single-parent households.

The primary facility operations focus is: on inventory control and personnel issues. in making sure KPIs are fulfilled. the WMS system. on the movement and storage of product.

on the movement and storage of product

The time that elapses from when a company receives an order until it gets paid for delivering the order is called the: replenishment process. product life cycle. order management process. order to cash cycle.

order to cash cycle

Whether the relationship may or may not be with a provider of logistics services, today's supply chain relationships are most effective when collaboration occurs among the _____ who are involved. participants third party logistics providers customers suppliers

participants

The traditional role of customer service at the interface between marketing and logistics manifests itself through the _____ dimension of the marketing mix. price product place promotion

place

The utility that is created by moving goods from production points to market points where demand exists is referred to as _____ utility. form place time possession

place

The optimization model is based on: precise mathematical procedures. rule of thumb approaches. sampling experiments. broad problem definitions.

precise mathematical procedures.

There are four strategies that firms can use to balance supply and demand; price, lead time, inventory, and _____. customer service production flexibility transportation none of these answers warehousing

production flexibility

The main strategy behind routing guides is to: promote supply chain excellence. maintain exact control. comply with or enforce FOB terms. select between modes.

promote supply chain excellence

Lean production relies on: pull-based systems. push-based systems. the Toyota production system (TPS). just-in-time systems.

pull-based systems

There are four major categories that provide a useful way for examining logistics and supply chain performance. They are time, _____, cost, and supporting metrics. delivery KPIs quality competition

quality

An important sustainability issue that has received much more scrutiny in recent years is the: focus on adequate inventory levels. reduction in packaging waste by using alternate materials. effort to move warehouse storage closer to consumers. emphasis on materials handling and warehouse design.

reduction in packaging waste by using alternate materials

In the SCOR model there are five major categories of metrics that need to be used to measure the performance of Process D1: reliability, _____, agility, costs, and asset management. responsiveness ROA cash-to-cash cycle supply chains

responsiveness

Gross margin equals: COGS - taxes. sales + taxes - COGS. sales - COGS. COGS - sales.

sales - COGS.

Earnings before interest and taxes is calculated: gross margin - cost of goods sold. sales - transportation costs - warehouse costs - inventory carrying costs. none of these answers. sales - cost of goods sold - total operating cost.

sales - cost of goods sold - total operating cost.

Globalization was initially driven by countries seeking new territories. outside the U.S. seeking to establish plants in the U.S. seeking materials and goods not available in their own land. sponsoring trading missions.

seeking materials and goods not available in their own land.

Materials handling is concerned with: inventory levels. breaking bulk. scheduling trade-offs. short-distance movement.

short-distance movement.

When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called: least cost analysis. short-run analysis. cost center analysis. link node analysis.

short-run analysis

The fixed order interval EOQ model is best used for SKUs with: variable demand. stable demand. seasonal demand. unknown demand.

stable demand

Which of the following is not part of the Supply Chain network? plants stores terminals distribution centers

stores

The least-frequently used IT-based services by customers of 3PLs are: transportation management (execution). warehouse/distribution management. global trade management and transport sourcing. strategic and customer-related.

strategic and customer-related.

Due to mergers and acquisitions in the software industry and ERP vendors moving into the supply chain applications market space, it is possible to purchase: event management tools that monitor the supply chain for events that are out of tolerance. supply chain software suites that combine planning, execution, event management, and related capabilities. best of breed solutions from leading providers in each category. spreadsheet software with expanded capabilities.

supply chain software suites that combine planning, execution, event management, and related capabilities.

Which condition must be present before motor carriers and rail carriers can be used for international shipments? the shipment must be between adjacent countries the shipment cannot pass through adjacent countries shipments must be in volume and in bulk no customs barriers can be imposed

the shipment must be between adjacent countries

Approximately two-thirds of 3PL customers think their providers supply: tactical or operational services. strategic or integrative services. trucking and warehouse services. a firm that can supply a competency that is not core to the firm.

tactical or operational services

A critical ingredient for the Third Era of globalization is: the global emphasis on tailoring products and marketing strategies to meet perceived local needs the global emphasis on profits and efficiency technological advances, especially in information technology, and communications advances, especially in information technology, and communications the global emphasis on the marketing mix and marketing functions

technological advances, especially in information technology, and communications advances, especially in information technology, and communications

The drawback of centralized inventory is: that it undercuts the dispersed distribution concept. that it extends lead times and results in higher transportation costs. strains the ability of the carrier network. that it increases the amount of inventory required.

that it extends lead times and results in higher transportation costs

The term replenishment cycle refers to: orders for raw material. the acquisition of additional inventory. inventory and material management. material management.

the acquisition of additional inventory.

In assemble-to-order production: customer orders are filled from finished goods inventories, and production orders are used to replenish finished goods inventories. the finished product is a combination of standard and custom-designed components that meet unique needs of a specific customer. the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer. highly tailored products are created for the customer whose specifications require unique engineering design or significant customization.

the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer.

A push-based strategy works well for supply chains that focus on: lean production. the anticipation of demand or without knowledge of customer orders. work centers and offshore sourcing. the immediate delivery of off-the-shelf, low-cost, standardized goods.

the immediate delivery of off-the-shelf, low-cost, standardized goods.

Cost/Value refers to product variety. the importance of cost and value at the very end of the supply chain. U.S. firms competing in the global arena. getting the best value for the money spent.

the importance of cost and value at the very end of the supply chain.

Those customers who are in the "Danger Zone" segment are: the least profitable. have been a customer for less than a year. likely to switch to a competitor. are using ABC to drive down the price.

the least profitable.

Capacity is: determined by lean manufacturing. the maximum amount of square footage available for inventory storage in a facility. determined by raw materials flows. the maximum amount of work that an organization is capable of completing in a given period of time.

the maximum amount of work that an organization is capable of completing in a given period of time

A critical outcome of the supply chain is to deliver cost/value. profits. the right product to the right place. on management's expectations.

the right product to the right place

The first facility consideration is to determine: how close to the source it should be. the size of each operation within the network. where competitors are located. how close to the customer it should be.

the size of each operation within the network

Most retailers are essentially supply chain companies since they dominate the consumer market. they buy products produced by others. engage in off-shore sourcing. own their warehouses and trucks.

they buy products produced by others.

Which is the main advantage of international air transport? flexibility accessibility freight rates transit times

transit times

One important interaction that must be considered is the tradeoff between distribution and _____. finance services marketing transportation

transportation

The most important trade-off in logistics is between: warehousing and packaging. inventory and packaging. transportation and warehousing. transportation and inventory.

transportation and inventory

Inventory as an asset on the balance sheet and a _____ on the income statement. statement footnote variable expense liability

variable expense

Perpetual inventory systems are required for any EOQ model having _____ demand while periodic inventory systems are used for EOQ models having _____ demand. constant; constant constant; variable variable; variable variable; constant

variable; constant

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 accountability availability accuracy

visibility

The key financial consideration in choosing between private and 3PL distribution options is: volume of product being moved. type of product being handled. competency of in-house staff. warehouse location(s).

volume of product being moved

Which are the major modes of international transportation? rail and motor rail and air water and air water and rail

water and air

Some individuals describe the current consumer as the "click here" generation because we no longer wait for information to be "pushed out" to us. we all have Internet access. we take little time to make purchasing decisions. we buy so much merchandise on line.

we no longer wait for information to be "pushed out" to us.