Business Logistics Final Exam
The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods, and advertising budgets averaging $3000 over the last 10 periods is: Y=3250 + 120x This indicated that a $1 increase in advertising will increase sales by:
$120
The exponential smoothing forecast has the same value as the naive forecast when a in the exponential smoothing model is equal to:
1
A forecasting method has produced the following data over the past 5 months showing in Data Set E2. What is the mean absolute deviation (accurate to 2 decimals)
1.00
Based in the information in Data Set E2, what is the mean squared error (accurate to 2 decimals)
1.40
The cost of a widget is $5, and the carrying rate is 40%: cost of processing an order is $25,annual demand for 400 widgets, and supply and usuage patterns are stable. What is the economic order quantity (EOQ)?
100
Given the following make-buy information, what would be the break-even point?
1200 units
Using Date Set E1, what would be the forecast for period 6 using a five period weighted moving average? The weights for each period are 0.05, 0.10, 0.20, 0.30, and 0.35 from the oldest period to the most recent period, respectively. (Choose the closest answer)
16500
Using Data Set 1, what would be the forecast for period 6 using the exponential smoothing method? Assume the forecast for period 5 is 14000. Use a smoothing constant of a=0.4 (Choose the closest answer)
16600
Using Data Set E1, what would be the forecast for period 7 using four period moving average:
17250
A furniture manufacturer presently owns a total of four warehouses in the following cities Sacramento, Phoenix, Cincinnati, and Atlanta. The average inventory levels for the four warehouses are 8000 units, 10000 units, 10000 units, and 8000 units, respectively. They plan in moving all of their inventory to one warehouse in Memphis. Using the square foot rule, what will be the required average inventory to one new central Memphis warehouse required to maintain the system's present 98% customer service level? (Choose the closest answer)
18000
The term Supply Chain Management and the field of study it represents today seems to have emerged in the:
1980s
The UNLV Bookstore sells an unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is vert stable at 9 days. Compute the statistical reorder point that results in a 95 percent in stock probability (Z=1.65)
199.8 units
Given the following make-buy information, what would be the break-even point?
2750 units
In the absence of demand and delivery lead time variation, if demand is eight per day and purchase lead time is four days, the reorder point is:
32
Using the actual demand shown in the table below, what is the forecast for Mat (accurate to 1 decimal) using a 4-month weighted moving average and the weights 0.1, 0.2, 0.3, 0.4 (with the heaviest weight applied to the most recent period)?
44.4
Given the following information, calculate the forecast (accurate to 2 decimal) for period three using exponential smoothing and a=0.3.
63.35
A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.25) Responsiveness (0.10) Delivery (0.20) Cost (0.25) Technology (0.20) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(90), Delivery(80), Cost(80), Technology(90). What is their total score?
85.5
A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(80), Cost(90), Technology(90). What is their total score?
85.5
Use this information below to calculate the optimal order quantity: Annual demand for backpacks is 43000 units The cost to place an order is $200 The per unit cost of the item is $60.00 The annual holding rate is 37.5%
920 units
Which of the following would be a good reason to outsource (buy) versus making?
A firm lacks the technology or expertise to produce an item
Which of the following would be considered a third party provider?
A firm that leases storage warehousing
Some measures of forecasting accuracy include mean absolute deviation, mean absolute percentage error, and mean squared error. The formula for each is dependent on the forecast error, which is calculated by using the equation:
Actual demand for period t minus the forecasted demand for period t
If a tracking signal is positive, which one of the following is true?
Actual value if higher than forecast
A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.20), Cost(0.50) The scores for each category are shown below. Which of the following companies has the highest total score?
All companies scored the same
According to the textbook, which of the following companies is a leading forecasting software provider?
All of these
SRM software should be capable of:
All of these
Which of the following can be classified as a 3P?
All of these
Which of the following is a factor in choosing a location?
All of these
Which of the following is an illustration of a company that has vertically integrated?
All of these
Which of the following is important in developing successful relationships in a partnership?
All of these
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?
All of these
Which of the following would be considered a quality of life factor?
All of these
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, current stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location
All sites are equally attractive
The hybrid purchasing system, such as the one utilizing by Harrah's, includes many beliefs. In such a system the regional office preserves four fundamental purchasing right. Which of the following is NOT one of those rights?
Allow suppliers to bid for each purchase
What inventory factory may be omitted from the basic EOQ derivation because it is a constant?
Annual Purchase Cost of Goods
Examples of regional trade agreement include all of the following EXCEPT:
Association of African Markets (AAM)
The following is an example of the bullwhip effect:
Barkley's incorrectly anticipates consumer demand resulting in stock-outs at several popular retailers
Which of the following would most likely be considered as dependent demand items?
Bicycle tires used to assemble a bicycle
Which of the following is a system that aids in controlling inventory?
Both MRP and ERP
The following facility location technique uses fixed and variable costs to analyze potential locations:
Break-Even Model
The impact of poor communication and inaccurate forecasts resonates along the supply chain and results in the:
Bullwhip Effect
When a number of interconnected companies and institutions from a particular field are located in a single geographic location, that location is referred to is a(n):
Business Cluster
The following supply chain concept was introduced in the 1900s in an attempt
Business Process Reengineering
Which of the following was a popular way in the 1990's of developing radically new business processes in an effort to reduce waste and increase performance?
Business Process Reengineering
According to the text, FOB destination pricing is typically preferred for all of the following EXCEPT:
Buyer is purchasing a reoccurring order
Which of the following is NOT a characteristic of cost-of-service pricing?
Carriers price their services at the highest levels the market will bear
When calculating Return on Investment, current assets includes:
Cash, Accounts Receivable, and Inventory
What does the acronym CPFR represent?
Collaborative Planning, Forecasting, and Replenishment
A company using a weighted-criteria evaluation system has established 3 categories and the appropriate weight in parentheses: Quality(.30), Delivery(.40), Cost(.30) The scores for each category are shown below. Which of the following companies has the highest total score?
Company B: Quality(70), Delivery(80), Cost(80)
Who is considered the End Item Manufacturer's second tier supplier?
Components Manufacturer
Which of the following types of warehouses takes a large number of LTL shipments and repackages them in TL or CL quantities to a manufacturer or user facility located in another area or region?
Consolidation Warehouse
Which of the following is TRUE?
Continuous improvement and change management are both key to building successful partnerships
Right-shoring refers to:
Contraction activities within the supply chain
According to the textbook, conditions which must be present for successful supply chain management include:
Cooperation among firms
Which of the following statements is TRUE? Consumers buy products based on a combination of:
Cost, quality, availability, maintainability, and reputation
Benefits derived from implementing e-procurement systems include all of the following EXCEPT:
Creates numerous additional job opportunities in the purchasing department
The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as:
Crossdocking
Your company is conducting forecasting that revolves around the current recession and expansion of the U.S economy. This type of forecasting can be referred to as what component of a time series?
Cyclical Variations
Benefits derived from implementing and e-procurement system include all except:
Decentralized Purchasing
Which of the following statements is FALSE?
Decentralized purchasing means not having any purchasing departments and allowing all employees to act as purchasing agents
If usage is constant, as order size increases, annual order costs _____ but annual carrying costs ____.
Decrease, Increase
The following are all examples of lean warehousing capabilities EXCEPT:
Decreased Assembly Strategy
In the absence of demand and delivery lead time uncertainty, reorder point is the _______________.
Demand during lead time
Which of the following is NOT important in developing a successful strategic alliance
Developing efficient processes that will remain unchanged for the duration of the partnership
Which of the following acronyms is NOT paired with its "translation"
ERP- Estimated Response Parameters
As firms seek to improve the products they offer to the market, companies are seeking help from their suppliers in new product design and development
Early Supplier Involvement
The primary goals of purchasing includes all EXCEPT:
Ensure the highest quality raw materials are purchased
Which of the following trade agreements was set up after WWII and originally consisted of six countries?
European Union (EU)
The Hormel company awards their Hormel Food Corporation's No. 1 Award to their top supplier. How often to the give this award?
Every 5 Years
While most public procurement is focused on goals similar to those of purchasing departments in the private sector, U.S. federal government purchases must comply with the:
Federal Acquisition Regulation
Some companies import components, use them in the production of their end items, and ultimately export them to other countries. If a company wanted to import the components duty-free, use those components in the production of their end items, and then export them to other countries, they would most likely utilize a(n):
Foreign Trade Zone
If a distribution company that focused on warehousing and distribution of grocery items decided to purchase a chain of grocery stores, the distribution company would be exemplifying:
Forward Vertical Integration
A transportation intermediary used to consolidate large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates is referred to as:
Freight Forwarder
Which of the following is similar to a travel agent for cargo since they provide services like documentation completion, special rate handling, and customs clearance, in addition to their consolidating or small shipments to fill entire truckloads
Freight Forwarder
Which of the following was NOT mentioned in the textbook as being one of the more popular logistics management software applications?
Freight Management Systems
The first major transportation regulation is the US was which of the following?
Granger Laws
Public warehouses can provide a wide range of service. Which of the following is NOT one of the services offered by public warehouses?
High Security Shipment
The EOQ model with quantity discounts attempts to determine
How many units should be ordered
Organizations that primarily compete on speed of delivery, such as fedEx and UPS, utilize which of the following approaches for location determination
Hub and Spoke
According to the textbook, the Las Vegas division of Harrah's Entertainment utilizes which of the following purchasing structures?
Hybrid (centralized-decentralized)
Dependent demand and independent demand items differ in that I. for any product, all components are dependent-demand items II. the need for independent-demand items is forecast III. the need for dependent-demand items is calculated
I, II, & III
Summers, Inc. needs to generate a list of good/services purchased per supplier. Which type software program can the manager consult to obtain the information?
ISO 9000
Which third party certification was adopted by the European Union in 1992 that caused US suppliers wanting to stay competitive in European Union countries to get certified?
ISO 9000
Which one of the following statements regarding the economic order quantity is true?
If an order quantity is larger than the EOQ, the annual holding cost exceeds the annual order cost.
Which of the following is NOT a form of countertrade?
Incoterming
Companies hold a supply of inventory for all of the following reasons EXCEPT:
Increase production change/ setup costs
The benefits of implementing an effective supplier certification program include all of the following EXCEPT:
Increasing Supplier Base
According to the text, key ingredients for developing successful partnerships include all of the following EXCEPT:
Individual Objectives
According to the textbook, which of the following companies utilizes a supplier development program called Supplier Continuous Quality Improvement (SCQI) focused on improving the quality of the goods and services purchased and minimize the time needed to inspect incoming products?
Intel
The transportation legislation that created the Interstate Commerce Commission (ICC) was which of the following:
Interstate Commerce Act
In the ABC Inventory Matrix, inventory in area Y suggests
Inventory matches sales
If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand:
Is one-half of the economic order quantity
Which of the following is a disadvantage of excessive inventory?
It hides production and other problems
Which of the following statements is FALSE:
It is generally not recommended to use a combination of both quantitative and qualitative methods
The type of factory which is the source of product and process innovation and competitive advantage for the entire organization is referred to as a(n):
Lead Factory
What does LTL stand for in the transportation industry?
Less-Than-Truckload
The supply chain management element that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet consumers' requirements is also referred to as:
Logistics
Transportation management customer relationship management, network design, and service response logistics are all important issues that are most closely related to:
Logistics
The Uniform Code governs the purchase and sales of goods in the US except in the state of:
Louisiana
Which of the following is NOT consistent with decentralized warehousing system?
Lower Total Operating Costs
Which of the following regional trade agreements is paired with the appropriate region of the world?
MERCOSUR- Argentina, Brazil, Paraguay, Uruguay
Which of the following acronyms is NOT paired with its correct translation?
MRP- Manufacturing Responsiveness and Planning
According to the textbook, which of the following is NOT a way to closely match supply and demand?
Maintaining a rigid pricing system
___________, such as lubricants for machines, are used in the production process, but do not become parts of the final products.
Maintenance, Repairs, and Operating Supplies
One operational method for controlling and managing inventory is the implementation
Material Requirement Planning (MRP)
Which one of the following is not a type of qualitative forecasting?
Naive Method
Which of the following strategic foreign facilities is set-up primarily to avoid barriers, minimize exchange risk, and/or take advantage of government incentives? The items produced at these factories are often exported to countries where costs to produce similar items would be higher.
Offshore Factory
Assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements are all important issues that are most closely related to:
Operations
According to the textbook, the largest ocean containerships can carry how many twenty-foot containers?
Over 10,000
A form of purchasing that is placed directly to the supplier and suitable when firms use the same components to make standard goods over a relatively long period of time is referred to as:
Planned Order Release
Field failures, loss of goodwill, a decreased reputation, and warranty costs can all be classified as:
Post-Transaction costs
Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:
Pre-Transaction Costs
The process of certifying a new supplier is considered what type of major cost category?
Pre-Transaction Costs
Which of the following carriers typically transports goods for the company that owns the carrier, they are not subject to economic regulation, and since the fleets are rather large the cost of transport is very likely less than if the company had hired another company to provide the service?
Private Carrier
According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as:
Product Positioned Strategy
Which if the following is not an assumption of the economic order quantity model?
Production and use can occur simultaneously
The measurement of the impact of change in purchase spend on a firm profit before taxes, assuming gross sales and other expenses remain unchanged, is referred to as:
Profit-Leverage Effect
All of the following are considered components of variable costs EXCEPT:
Property Taxes
Which of the following documents is considered the buyers offer to purchase products or services from a supplier, is legally binding once the supplier accepts it, and usually has the terms and conditions of purchase preprinted on the back of the document?
Purchase Order
Which of the following indices provided by Institute for Supply Management (ISM) is considered the most important by economists because it is a composite of five weighted, seasonally adjusted indices?
Purchasing Managers Index
According to the text, the FOUR important elements of the supply chain are:
Purchasing, Operations, Logistics, Integration
Inventory Turnover can be calculated by:
Ratio of cost of goods sold over average inventory cost
Who is considered the second tier supplier of the firm that manufacturers Sub-assemblies?
Raw Material Supplier
Which of the following would most likely be considered as independent demand items?
Raw material items that become part of the final product at a manufacturing firm
Which of the following is a revere logistics activity:
Recycling products and components
Direct benefits of ISO 14000 include:
Reduction of Pollution Emission
Which of the following legislative act is NOT in support of transportation deregulation?
Reed-Bulwinkle Act
One common Cause and Effect Method is:
Regression Analysis
When a material is not available in the warehouse and there is not current supplier for the item, the buyer must identify a pool of suppliers and issue a:
Request for Quotation
According to the text, one of the most basic and successful approaches to protecting trade secrets is:
Requiring employees and vendors to sign non-disclosure agreements
Certain states in the United States have laws that secure the rights of employees to decide for themselves whether or not to join financially support a labor union. These laws are called:
Right to Work Laws
Which of the following secures the right of employees to decide whether or not to join or financially support a union?
Right to Work Laws
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, current stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location
SITE A
Streamlining the processes and communications between the buyer and supplier using software applications that enable these processes to be managed more efficiently and effectively can be referred to as:
SRM
When using a Weighted Criteria Evaluation System to evaluate suppliers, all of the following are true EXCEPT:
Select the key dimensions of performance based on what is important to the consumer
Ultimately the factory operated as most normal factories making only minor improvements in either the products or processes
Server Factory
Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers, the type of factory needed can be referred to as a(n):
Server Factory
The following time-series approach to forecasting uses historical data to generate a forecast and works well when demand is fairly stable over time:
Simple Moving Average
Which of the following is strategy usually employed by lean organizations in a effort to ensure continued quality compliance among suppliers and with internal production facilities?
Six Sigma
Which of the following illustrates Forward Vertical Integration?
Sony buying tucks to deliver their finished goods inventories to their customers'
According to the text, when the location of a factory is dictated by low production costs, fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n):
Source Factory
Inaccurate forecasts can result in negative outcomes like:
Stockouts and poor responsiveness to market dynamics
Which of the statements is TRUE?
Strategic partnerships are seen as one of the foundations of supply chain management
An organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections can be referred to as:
Supplier Certification
On occasion, firms assist suppliers, new or old, to improve their processing capabilities, product or service quality, delivery effectiveness, and cost performance by providing the required technical and financial assistance. This is referred to as:
Supplier Development
According to the textbook, the top three challenges for CPFR implementation includes all of the following except:
Supplier Lead Times
Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:
Supplier Management
The acronym SRM refers to:
Supplier Relationship Management
The Bruntland Commission defines _____________ as the ability of future generations to meet their own needs.
Sustainable Development
What is the abbreviation for a truck trailer which is placed on a flat railcar that would then be pulled by the train engine?
TOFC
Which of the following is TRUE in relation to Figure 7-1?
The EOQ is most likely lotsize G, and curve L is the annual ordering cost curve.
Use the breakdown model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facilities.
The breakeven point for these two locations is 1500 units per year
Which of the following is a reason that single sourcing is considered risky/bad?
The limited (finite) capacity of one supplier
Which of the following is not an example of an ordering cost for products purchased from a supplier?
The opportunity cost of not ordering from a least cost supplier
Which of the following is NOT an assumption of the classic Economic Order Quantity (EOQ)?
The production rate must be greater then the consumption rate
Successful modern supply chain management typically includes the practice of:
The sharing of information between supply chain partners
The primary purpose of the basic economic order quantity model is
To minimize the sum of setup cost and holding cost
The combination of the purchase price of a good and addition costs incurred before or after products delivery can be referred to as:
Total Cost of Ownership
Lean production is typically associated with which of the following company's production systems?
Toyota
Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all of the shipping arrangements and documentation preparation?
Trading Company
According to the textbook, which of the following companies is recognized as a leader in the CPFR software solutions?
Transperion
A pre printed order form for purchasing materials and standard parts that are requested on a recurring basis is referred to as:
Traveling Requisition
Which type of requisition is used for materials and standard parts that are requested on a recurring basis?
Traveling Requisition
The following are all common qualitative models EXCEPT:
Trend Variation
Which of the following would be considered an act of deregulation?
Trucking Industry Regulatory Reform Act- Motor carriers freed from filing rated with the Interstate Commerce Commission
The World Economic Forum creates International Competitive Ranking that are ranked on their Pillars of Competitiveness. How many Pillars of Competitiveness does the World Economic Forum have?
Twelve
According to the text, currently the 3 largest private warehouse operators in North America are:
UPS, Walmart, and Sears Holding Corp
According to the text, the goal of a good performance evaluation system is to provide metrics that are:
Understandable, Easy to Measure, Focused on Value-Added Results
All of the following are considered components of fixed costs EXCEPT:
Utilities
Real time location systems (RTLS) are used for the following type of transportation:
Water Carriers
Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting heavy goods a long-distance?
Water Carriers
The following facility location technique uses quantitative dimensions and is subject to interpretation and bias by the analyst:
Weighted-Factor Rating Model
If your company had an annual purchase cost of items equal $2,000,000 an annual holding cost of $150,000 an an annual ordering cost of $750,000 this scenario would reveal that:
Your fixed lost size was lower than the EOQ
If an item is ordered at its economic order quantity, the annual carrying cost should be:
equal to the annual ordering cost
In the ABC Inventory Matrix, inventory in area Z suggests
over-stocked B and C items