LSCM Final
Which of the following is NOT apart of the Supply Chain network?
a. stores b. terminals c. plants d. distribution centers a. stores
Heuristic models
are able to accommodate broad problem definitions.
The distances in today's global supply chain produce a. longer transit time b. all of these c.higher cost d. more disruptions
b. all of these
Dependent demand relates to
demand for another inventory item or product
The Supply Chain Concept
developed from the previous Physical Distribution concept.
In the event of a "stockout" at your location, one of the things that could happen is
extra shipping cost may be incurred
It can be argued that ______ is the second language of logistics and supply chain management.
finance
In the short run, the firm's network is _________ while in the long run it is ________.
fixed, variable
Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.
gross sales
Green laws have
had a major impact on firms.
Application of the grid technique to the location of a city warehouse
incorporates a blanket rate structure that applies the same rate from an origin to any point within the city or commercial zone
Methods of decreasing inventory related costs include all of the following measures EXCEPT:
increasing the number of expedited orders
Capital cost focuses on the cost of capital tied up in ________and the resulting lost opportunity from investing that capital elsewhere.
inventory
For most firms, the MOST important measure of customer service is:
inventory availability within a specified order cycle time
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
Which of the following would NOT be a typical transportation management function?
keeping track of inventory in the warehouses
ALL of the following represent savings associated with volume buying EXCEPT
lower capital costs associated with the inventory investment
Which management area in an organization does not normally have transportation responsibility?
manufacturing
All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:
marketing
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
All of the following are goals of purchasing EXCEPT:
maximize the number of public warehouses utilized in order to avoid the high fixed costs of plant warehouses
The logistics/supply chain network transformation team
must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates
Railroads fall into a group called
natural monopolies
What are fixed established spatial points where goods stop for storage or processing?
nodes
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.
none of these answers
Oversupply is created by
phantom demand
An inbound-to-operations logistics system is also referred to as
physical supply
The traditional role of customer service at the interface between marketing and logistics manifests itself through the________ dimension of the marketing mix
place
Which of these is NOT a form of purchasing?
process improvement
The product's dollar value typically affects the cost of logistics activities. Which is NOT one of these costs?
promotion costs
What are the steps in the CRM process?
segment customer base, then identify service/package, then measure service and improve
Which of the following is NOT a result (directly or indirectly) of the Motor Carrier Act of 1980?
service levels provided by carriers have declined
Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a
steering committee
The term replenishment cycle refers to
the acquisition of additional inventory
Cost/Value refers to
the importance of cost and value at the very end of the supply chain.
A critical outcome of the supply chain is to deliver
the right product to the right place
The recent increased focus on reverse flows is attributable to
the significant increase in volume of reverse flows.
Most retailers are essentially supply chain companies since
they buy products produced by others
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.
The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called
total landed cost
Other things being equal, HIGH inventory carrying costs will tend to lead to all of the following EXCEPT:
use of a slower mode of transportation, such as railroads
Inventory is an ASSET on the balance sheet and a(n) __________ on the income statement.
variable expense
Assume that the cost of the most efficient logistics system for a 98% service goal is $3.1 million higher than the existing system's cost. If for each dollar of additional sales, the company incurs 76 cents in out-of-pocket costs, what incremental sales volume, in dollars, will the company need to recover the increase in logistics costs? Your answer must be accurate to the nearest dollar.
12,916,667 3,100,000/.24
Retailers lose, on average _____ percent of gross sales due to returns.
3-5
The CBL Exam company is attempting to locate a new plant to serve the Midwest, The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the gird VERTICAL coordinate of:
3.95
Jim Bob Airlines has one 60 seat plan. On its last five flights it had 40 passengers from MSY to DFW, 36 passengers from DFW to OKL, 38 passengers from OKL to TUL, 40 passengers from TUL to FWB, and 32 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)
62 [Average seats used/Number of seats available]*100
Jim Bob Airlines has one 60 seat plan. On its last five flights it had 42 passengers from MSY to DFW, 38 passengers from DFW to OKL, 45 passengers from OKL to TUL, 33 passengers from TUL to FWB, and 35 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)
64.3
Your firm has a ROS of 13.7 percent. The company's goal is to increase sales by $486,678 this year. How much in dollars would you have to reduce your logistics costs to provide the same marginal amount of profit?
66,674,886 sales increase x ROS%= logistics savings x 100%
The CBL Exam company is attempting to locate a new plant to serve the Midwest, The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the gird HORIZONTAL coordinate of:
7.11
_______, is a set of international standards that establish the minimum requirements for all organization's quality system
ISO 9000
The objective of inventory management is to:
Increase corporate profitability.
Which is true regarding optimization models?
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 a principal reason for holding finished goods inventory?
Prevention of production shutdowns due to parts shortages
The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is:
Safety Stock
Green procurement strategies usually require collaboration with _____________.
Suppliers or vendors
From a business and supply chain perspective, ______________ are usually based upon a recognition that industrial systems need to be in harmony with nature by not depleting resources beyond their replacement or regeneration rate.
Sustainability practices
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
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 known as
a customs house broker
One type of demand fluctuation is caused by random variation. What is random variation?
a development that cannot normally be anticipated
What advantage does the transit privilege give to shippers located at intermediate locations?
a lower, long-distance through rate charged for the shipment
The weighted moving average method assigns
a weight to each previous period
T/F: Most customers place more value on speed of delivery in filling orders than on order reliability and/or order consistency
False
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.
MRP
The utility that is created by moving goods from production points to market points where demand exists is referred to as
place
An organization selling its FOB destination holds the title to the goods until:
products reach the customer's facility
The main strategy behind routing guides is to
promote supply chain excellence
JIT is a _______ system.
pull
Which of these is NOT a freight document?
routing guide
WIP inventories are
associated with manufacturing
Which of the following statements about just-in-time (JIT) is FALSE?
Jit programs usually do not impact inventory turnover rates.
Which of following is the "marketing mix"?
distribution, price, product, promotion
Air carriers were historically looked upon as
emergency only carriers
Which is true regarding the facility/supply chain network design decision?
it should be coordinated closely with the corporate and overall business strategies that may be in place
The term functional silos refers to:
lack of coordination between departments
Which is NOT a part of dependability?
consistent pricing
Ordering cost refers to the expense of placing an order and
does not include the cost of the product.
A _________ analysis examines a logistics system over a long time period or range of output.
dynamic
What is an amalgam of catalogs from vendors within a market that is available via the Internet called?
electronic marketplace
Each of the following, if true, supports the claim above EXCEPT
human resources/personnel management
Those customers who are in the "Danger Zone" segment are
the least profitable
Challenges for the trucking industry include
competition
The reverse direction of flow has often been regarded as a
cost center, a waste stream, but a necessary evil
If demand and lead time are constant, only___________ is necessary.
cycle stock
In the Item Procurement Importance Matrix, what item is described as high risk, low value?
Distinctives
Seasonal stocks are NOT influenced by
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
is one of the most commonly used techniques.
Exponential smoothing
Information and __________ are important dimensions of reverse logistics and closed-loop supply chains.
FINANCIALS
T/F: Management will automatically achieve least total cost logistics by minimizing inventory carrying costs.
False
T/F: The "value-of-service" pricing approach establishes a lower limit of transportation prices or rates
False
T/F: The manufacturer must lead the channel design process regardless of the relative market power and financial strength of the members of the supply chain
False
T/F: When a traffic manager reduces the number of carriers used, market power is decreased.
False
Pareto Analysis may be used to classify parts, customers, or activities. When determining the Pareto segments to classify parts, you should:
There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds.
T/F: EOQ models exist that include adjustments for volume transportation rates and for quantity discounts.
True
T/F: For most shippers, in the selection of a specific transport mode or carrier, consistency of service is much more important than time-in-transit
True
T/F: If a firm concentrates on reducing the individual costs of each separate logistics function or activity, overall logistics costs may NOT reduce
True
Activity Based Costing
can be combined with customer segmentation
What vendor selection criteria are described by production capability, labor relations, and operating controls?
capability
Desirability refers to
characteristics that influence modal selection
___________ exist for basic raw materials such as grain, oil, and sugar
commodity markets
