Exam 2

When you decide to form a relationship with an external provider of logistics services, which of the following primary competencies should be considered? select all that apply

-expertise -strategic fit -ability to invest

Which of the following statements is NOT TRUE about 3PLs and 4 PLs?

3PL companies are more strategically involved with customers than 4PLs.

Willy Wonka Chocolate Factory wants to evaluate its distributions performance after Halloween. Calculate Perfect order index (POI) using the information below

67.5%

What is a "Bottleneck" suppliers in Krajic Matrix? Briefly describe characteristics with an example

A bottle neck supplier would be described as having low profitability but a high supply risk. There is low purchasing power when it comes from bottleneck suppliers. Fountain soda at restaurants is an example of this

Which of the following statements is TRUE about inventory positioning strategy?

A centralized inventory positioning strategy provides greater control over the inventory.

Among the factors that create a gap in expectations between customers and 3PL providers, which of the following is appropriate as one of the 3PL providers expectations of customers?

Access to useful data to design solutions

Which of the following is NOT TRUE about distribution trade-offs?

As warehousing costs increase, inventory costs typically decrease.

Which of the following is an example of "facilitators" in decisions to form relationships?

Corporate compatibility

Which of the following questions is appropriate to evaluate "scalability" of 3 PLs?

Does the 3PL have the flexibility to handle your season demand patters, geographic expansion, and new fulfillment channels?

Which of the following statements is NOT TRUE as reasons for using 3PL services?

Especially when logistics is a core competency of an organization, organization are more likely to use 3PL to improve firms performance.

Information based 3PL providers help customers with monetary issues and financial flows in the supply chain such as freight rating, payment, freight bill auditing, accounting.

False

It is more beneficial to build a transactional relationship with a supplier which provides products that has high impact on competitive advantage.

False

Public warehousing is always a more cost-efficient option than private warehousing because of a large initial investment.

False

Transaction relationships typically requires a high level of integration and collaboration than strategic relationships

False

"_________" 3PL providers are freight forwarders, brokers, agents that facilitate the flow of goods on behalf of customers such as CH Robinson.

Forwarder Based

which of the following characteristics describes characteristics of centralized inventory positioning?

Greater control over the inventory

Which of the following explains "strategic" items in the Kraljic Matrix?

High profitability, High supply risk

In addition to the four major functions, what are the value-adding roles of distribution facilities? choose one of the value adding roles and briefly describe how distribution facilities contribute to it.

Inventory managements and quality control are some value adding roles of distribution facilities. Inventory management is in charge of keeping track what is exactly in the warehouse so they are able to ship out and take in what is needed.

Which of the following statements is NOT TRUE about aligning supply chains?

Local optimization of warehouses or distribution centers help to create a more integrated supply chain.

Which of the following methods is NOT appropriate as a way to improve issues of integrating supply and demand in the supply chain?

Make larger lots for warehouses

"______________" is a distribution metric used by companies such as Walmart and Target to measure 1) delivery it not late and 2) customers get the exact amount they ordered.

On time in full; OTIF

Which of the following is NOT TRUE about Warehousing Management Systems (WMS)?

Order cycle time is increased by using WMS

Which of the following metrics measures customer service aspects of distribution performance?

Order to fill rate

Which of the following product handling functions also focus on storage activities of a distribution facility?

Put-away

According to the process model, in which step should following components should be considered to build and sustain successful supply chain relationships? - Scope of government relationship - Leadership roles - Risk/reward sharing - Financial investments and responsibilities

Structuring operating model

What are the TWO major factors (criteria) used for supplier segmentation in Kralijic Matrix?

Supply risk Profitability

Which of the following statements is NOT TRUE about supplier selection criteria?

Sustainability is important but does not affect supplier selection decisions.

Which of the following statements is INCORRECT about facility considerations?

The item with larger total cubic space requirements should be located near the shipping area and those with smaller space requirements away from the shipping area.

As the number of warehouses increases, transportation cost is likely to decrease

True

Non-asset based 3PLs tend to be more flexible and unbiased in decision making but lack significant internal capability for customer requirements.

True

Product characteristics and product flow requirements of supply chains drive the design of distribution processes.

True

When you have "leverage" suppliers, you can typically have a greater purchasing power as a buyer.

True

Which collaborative relationships can improve responsiveness to customers' needs, conflicting business objectives can be a barrier in forming collaborative relationships.

True

In which of the following situations using 3PL distribution will be typically preferred over private distribution?

When security requirements are lower

When would an organization NOT use 3PLs?

When there are issues related to security of shipments

Among the four primary functions of distribution facilities, __________ involves the assembly of customer orders for multiple SKU's and allows to avoid the expenses related to placing numerous orders and having them shipped from a variety of locations.

assortment

Which of the following statements is NOT TRUE about distribution and warehousing?

using distribution facilities to prevent utilizing the full capacity of containers and increase transportation costs.