Operations Management Exam 5

Transportation management system (TMS) applications allow firms to find carriers, track fuel usage and product movements, and stock the shelves at customers' location. True/False

False

Which of the following true under the Periodic Review System? a. a lower level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system b. a higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system c. it is more expensive to administer compared to the Continuous Review System d. the only uncertainty is the magnitude of demand during the delivery lead time e. there are no discrepancies between physical inventory and the stock record

A higher level of safety stock is needed to buffer against uncertainty in demand over a longer planning horizon, compared to the EOQ system

Regional trade agreements assist with which of the following? a. Monitor national trade policies b. Provide technical assistance for developing countries c. Handle trade disputes d. All of the above

All of the above

Which of the following are intermodal transportation alternatives? a. Truck trailer-on-flatcar b. Roll-on-roll-off c. Piggyback service d. All of the above

All of the above

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of the above

All of the above

What inventory factor may be omitted from the basic EOQ derivation because it is a constant? a. Annual order-processing cost b. Annual purchase cost of goods c. Annual capital cost d. Annual setup costs e. Annual total costs

Annual purchase cost of goods

The following facility location technique uses fixed and variable costs to analyze potential locations: a. Break-even model b. Business cluster analysis model c. Weighted-factor rating model d. Mean absolute deviation model

Break-even model

Milan, Wall Street, and Detroit are examples of ____________. a. Business conglomerates b. Business clusters c. Regional trade agreements d. Strategic supplier alliances

Business clusters

_______________ carry the majority of the world's water-transported manufactured goods. a. Supertankers b. Containerships c. Barges d. None of the above

Containerships

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as: a. A high-service application b. Smart CRM c. All-time CRM d. Continuous connectivity

Continuous connectivity

Which of the following is a factor in choosing a location? a. Currency stability b. Freight forwarders c. Yokoten d. All of the above

Currency Stability

Which of the following customer service elements can be classified as an example of post-transaction elements? a. Salesperson politeness b. Customer complaint resolution c. Customer service policies d. The company's choice of organizational structure

Customer Complaint Resolution

Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as: a. Customer churn b. Clickstream defection c. Balking d. Revenue Exodus

Customer churn

The following are all examples of lean warehousing capabilities EXCEPT: a. Decreased assembly operations b. Greater emphasis on cross-docking c. Reduced lot sizes and shipping quantities d. Increased automation

Decreased assembly operations

When demand and delivery lead time are known and constant, the reorder point is the ______. a. demand during the delivery lead time b. safety stock c. demand during lead time + safety stock d. economic order quantity

Demand during the delivery lead time

Independent demand is the: a. Internal demand for end-item parts and materials. b. Demand for a firm's products. c. Forecasted demand purchased items. the: all end for d. Absolute demand for all items.

Demand for a firm's end product

A list of quality-of-life factors would most likely include proximity to customers, proximity to suppliers, tariff rates, and currency stability. True/False

False

Continuous connectivity is desired by many users of CRM applications; however, this is still something that systems can't deliver yet. True/False

False

Since the deregulation of transportation in the U.S., negotiating transportation prices has become less common among business shippers and logistics providers. True/False

False

A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Consolidation forwarder b. Freight forwarder c. Transportation broker d. Load broker

Freight forwarder

The first major transportation regulation in the US was which of the following: a. Interstate Commerce Act b. Granger Laws c. Motor Carrier Act d. Interstate Initiation Act

Granger Laws

Which one of the following restricts States from regulating transportation across state lines? a. The Transportation Act of 1920 b. The Transportation Act of 1940 c. The Interstate Commerce Act of 1887 d. The Civil Aeronautics Act of 1938.

Interstate Commerce Act of 1887

Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products? a. Offshore factory b. Server factory c. Source factory d. Outpost factory

Outpost factory

The element of a CRM program involved with the use of data-mining software and customer behavior analytics is: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination

Predicting customer behaviors

Which of the following is NOT an assumption of the economic order quantity (EOQ) model? a. Demand is known, constant, and independent. b. Lead time is known and constant. c. Quantity discounts are not possible. d. Production and use occur simultaneously.

Production and use occur simultaneously

Choosing to manufacture in China to sell to Chinese customers would likely involve which location decision consideration? a. Proximity to markets b. Environmental issues c. Land availability and cost d. Utility availability and cost

Proximity to markets

A reverse logistics activity that has a positive impact on the environment (hint: motorX):

Recycling

A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a: a. Sales activity management system b. Sales territory management system c. Lead management system d. Knowledge management system

Sales territory management system

Foreign-trade zones are: a. Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes b. Secure sites in foreign countries where goods wait for clearance by importing country c. Markets in the U.S. where foreign countries set up and sell products d. Bodies of water where cargo ships are allowed to dock to deliver imported goods

Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes

Which of the following can aggregate cargo and arrange for the domestic or international shipment of members' cargo at favorable volume rates? a. Transportation Broker b. Freight Forwarder c. Shippers' Associations d. Integrated Logistics Service Provider

Shippers' Associations

Which of the following marked the end of the initial push by Congress to deregulate the entire U.S. transportation industry? a. The Granger Laws b. The Transportation Act of 1920 c. The Shipping Act of 1984 d. The Interstate Commerce Act of 2013

Shipping Act of 1984

What type of firm would be most interested in using a third-party logistics service? a. Small firm with no logistics expertise b. Large integrated global manufacturing company c. A for-hire transportation company d. A freight forwarder

Small firm with no logistics expertise

Which of the following is NOT a reason for locating in a business cluster? a. Technology sharing b. Supply chain improvements c. Sophisticated retailers d. Competition

Supply chain improvements

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Southeast Asian Nations b. Tariffs c. Innovation d. Relationship marketing

Tariffs

Which of the following is a US law which requires compliance by all firms engaged in handling information? a. The Customer Loyalty Law b. The Data Protection Act c. The Internet Privacy Law d. The U.S. Patriot Act

The US Patriot Act

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation? a. Customs broker b. Foreign freight forwarder c. Trading company d. NVOCC

Trading company

Which extended the ICA of 1887 to include ICC control over domestic water transportation? a. Department of Transportation Act of 1966 b. The Reed-Bulwinkle Act of 1948 c. The Transportation Act of 1920 d. The Transportation Act of 1940

Transportation Act of 1920

In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the U.S., because European track, facilities, and equipment are newer and better maintained. True/False

True

Many multinational corporations are moving their facilities into China to have access to the local markets rather than for export reasons. True/False

True

Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs, costs, and the free flow of goods and services in different regions of the world. True/False

True

When mistakes occur in deliveries along the supply chain, more safety stocks must be held, adversely impacting both customer service levels and costs. True/False

True

The world's largest free trade area, currently with over 450 million people and GDP of more than US$20 trillion

United States, Mexico, Canada

All of the following are required elements for the development of an effective CRM initiative EXCEPT: a. Segmenting customers b. Customer value determination c. Utilization of MRP d. Personalizing customer communications

Utilization of MRP

A means of transportation that is inexpensive and very slow, yet good for transporting very heavy goods a long-distance:

Water carriers

Regional trade agreements assist with which of the following? a. Monitor national trade policies b. Provide technical assistance for developing countries c. Handle trade disputes d. All of the above

all of the above

Large amounts of data in a database

data warehouse

The type of approaches for location determination used by organizations that primarily compete on the speed of delivery, such as FedEx and UPS

hub and spoke

The most critical part of an integrated supply chain:

logistics

The use of quick response codes (QR Codes) to retrieve marketing information is a type of:

mobile marketing