BMGT372 CH7

Selecting the best mode of transportation for a product requires an understanding of the product being transported and customer service strategy.

True

Shipping by air transportation mode would be most ideal for pharmaceutical or high-tech products.

True

Significant investment in assets and infrastructure is a requirement of logistics.

True

Storage decisions require a firm to balance costs and responsiveness to customers.

True

Water and rail transportation modes are best utilized for shipping bulky, heavy shipments over long distances.

True

Companies that strategically coordinate their customers' supply chains are known as: a) Suppliers b) 3PL providers c) Distributors d) Manufacturers e) None of the above

b) 3PL providers

Transportation modes with high variable costs include: a) Truck b) Air c) Water d) Rail e) b and d

b) air

________ transportation might be best utilized for products with a short product life cycle and unpredictable demand: a) Truck b) Air c) Water d) Rail e) None of the above

b) air

The ability of customers to easily return goods has become a(n) ___________ for most retail and Internet businesses: a) Order fulfillment b) Order qualifier c) Challenge d) Value add e) b and c

b) order qualifier

The _______ demand system is responsive to actual customer demand and is unpredictable: a) Push b) Pull c) Stable d) Innovative e) Functional

b) pull

The inbound side of logistics works primarily with which function: a) Manufacturing b) Sourcing c) Operations d) Marketing e) Finance

b) sourcing

Logistics addresses the __________ part of the supply chain: a) Channels of distribution b) Upstream and downstream c) Upstream d) Downstream e) None of the above

b) upstream and downstream

Reconfiguring batches of products into smaller quantities or local delivery is known as: a) Break-bulk b) Just-in-time c) Cross-docking d) Inventory management e) All of the above

c) cross-docking

Managing the logistics function in a service industry requires ________ focus compared to a manufacturing industry a) less b) more c) equal

c) equal

The outbound side of logistics focuses significantly on: a) Operations b) Sourcing c) Order fulfillment d) Demand planning e) Total cost of ownership

c) order fulfillment

Infrastructure investment is a primary reason why many firms _________ the logistics function. a) Manage b) Eliminate c) Outsource d) Insource e) Control

c) outsource

Ensuring that logistics delivers products at the right quantities to customers relates to: a) Customer service b) Order fulfillment c) Quantity utility d) Place utility e) Time utility

c) quantity utility

Achieving cost efficiencies through maximizing freight and miles travelled is known as: a) Economies of scale b) Less-than-truckload c) Place utility d) Economies of distance e) None of the above

d) economies of distance

__________ is responsible for all activities related to delivering products at the right place and right time. a) Manufacturing b) Marketing c) Sourcing d) Logistics e) Finance

d) logistics

The outbound side of logistics works primarily with which function: a) Manufacturing b) Sourcing c) Operations d) Marketing e) Finance

d) marketing

The most effective mode for transporting grain or gravel would likely be: a) Truck b) Air c) Pipeline d) Rail e) None of the above

d) rail

__________ logistics is the process of moving products upstream from the customer to the manufacturer or supplier: a) Military b) Business c) Event d) Reverse e) None of the above

d) reverse

Transportation modes with high fixed costs include: a) Truck b) Air c) Water d) Rail e) b and d

e) air, rail

A firm's finances are impacted significantly by the logistics function because logistics: a) Is asset intense b) Can impact on financial measures c) Involves capital expenditures d) Is responsible for inventory e) All of the above

e) all of the above

Factors in the marketplace that elevated logistics away from primarily a physical distribution focus include: a) Growth of supply chain management b) Global supply chains c) Cost d) Multiple distribution channels e) a and b

e) growth of supply chain management, global supply chains

The logistics function significantly impacts operations in the area of : a) Inventory positioning b) Financial management c) Operations scheduling d) Distribution channels e) a and c

e) inventory positioning, operations scheduling

Functions of a warehouse or distribution center might include storage and: a) Mixing inventory assortments b) Demand planning c) Repair or assembly of products d) Supplier management e) a and c

e) mixing inventory assortments, repair or assembly of products

Logistics decisions related to ________ emphasize maintaining product integrity: a) Marketing b) Finance c) Operations d) Order fulfillment e) Packaging

e) packaging

It is believed that the most important task of logistics is: a) Storage b) Material handling c) Packaging d) Inventory control e) Transportation

e) transportation

Order fulfillment is a responsibility of logistics that involves working directly with a customer.

True

Product packaging is a decision that must be made between logistics, marketing, and operations.

True

Logistics delivers the product to a customer location, so it does not have a close connection to marketing or customers.

False

Logistics focuses primarily on the "downstream" part of the supply chain.

False

Logistics provides supply chain management with time, place, and packaging utility.

False

Reverse logistics directly adds value to a company because returns are an "order qualifier" for customers.

False

Storage is typically viewed as the most important task of the logistics function.

False

The concept of "place utility" is only focused on delivering products to the right location for the customer with little regard to cost.

False

The inbound side of the logistics function works with marketing.

False

The outbound side of the logistics function works with sourcing.

False

Three types of logistics functions include military, business, and global.

False

When seeking to maximize economies of distance, logistics should utilize less-than-truckload shipments.

False

Logistics has evolved from being primarily inbound focused to reaching across the supply chain.

True

Logistics is the function responsible for getting products to the right place at the right time.

True

A "pull" system of demand is more unpredictable and requires logistics to be responsive to customers.

True

A "push" system of demand creates a more predictable environment the logistics function.

True

A significant area of impact that logistics has on operations is inventory management.

True

Firms often outsource logistics functions to third-party logistics providers (3PL) because of their expertise and ability to provide cost savings to the firm.

True

In a cross-docking operation, products are never put into storage at the warehouse.

True

Logistics has a significant financial impact on an organization because of the amount of capital expenditures required.

True

The _______ demand system is based upon anticipated demand and is more predictable: a) Push b) Pull c) Stable d) Innovative e) Functional

push