International Supply Chain

Packaging provides protection. Against what type of protection does packaging provide? 1. mechanical damage 2. water damage 3. theft 4. pilferage - 1, 2, 3, & 4 - 1 - 3 & 4 - 1 & 2

- 1, 2, 3, & 4

The importance of Supply Chain Management is reflected by: (more than one answer may be selected) 1. SC executives sitting in the Board 2. SC capabilities are key to compete based on time-to-market 3. The increasing importance of collaboration with supply chain partners 4. SC is a critical part that needs to be adapted to changes in business environment

- 1, 2, 3, & 4

What is the maximum number of 40-ft containers a 10,000-TEU containership can carry? - 5,000 - 10,000 - 15,000 - 20,000 - 40,000

- 5,000

Which are likely discounted rates? - General Commodity Rates - Priority Reserved and Time Definite Rates - Express Rates - Container Rates and Contract Rates

- Container Rates and Contract Rates

Which is a top airfreight carriers? - United Airlines - FedEx - Qatar Airways - Singapore Airlines

- FedEx

Which are NOT premium rates? - General Commodity Rates - Time Definite Rates - Priority Reserved Rates - Express Rates

- General Commodity Rates

What is the main differentiating characteristic of a liner? - a vessel designed to move containers - a common carrier vessel that sails on a regular schedule and serves many customers - a vessel operating in a constant manner - a vessel loaded and unloaded efficiently - a vessel that sails between groups of ports rather than from an origin port to a destination port

- a common carrier vessel that sails on a regular schedule and serves many customers

Which type of an ocean carrier has the video likened to a city public bus service? - a cruise ship - a tramp - a private carrier - a tanker - a liner

- a liner

What of the following would you label as breakbulk cargo - a full container load that can be broken into smaller units - a full container load that cannot be broken into smaller units - a piece of machinery that fits in a container in terms of volume and weight, but it would be easier to manipulate if broken into smaller units - a piece of machinery that does not fit in a container and is heavier of the maximum weight of a container load

- a piece of machinery that does not fit in a container and is heavier of the maximum weight of a container load

Which type of an ocean carrier has the video likened to a rental car company? - a cruise ship - a tramp - a private carrier - a tanker - a liner

- a tramp

What is the main differentiating characteristic of a private carrier? - a vessel owned by a shipper and used to carry its own products - a vessel designed for liquid bulk cargo - a vessel operating in a constant manner - a vessel loaded and unloaded efficiently - a vessel that sails from an origin port to a destination port rather than between groups of ports

- a vessel owned by a shipper and used to carry its own products

What is the main differentiating characteristic of a tramp? - A vessel designed to move a particular commodity, e.g., grains or chemicals - A vessel that may operate for one customer for several voyages - A vessel that does not operate on a fixed schedule and is entirely chartered to one customer - A vessel loaded and unloaded efficiently - A vessel that sails from an origin port to a destination port rather than between groups of ports

- a vessel that does not operate on a fixed schedule and is entirely chartered to one customer

How do you calculate working capital tied in international trade? - the only relevant component of working capital linked to global supply chain is the carrying costs of the inventory tied to international trade - none of the other answers are correct - the only relevant component of working capital linked to global supply chain is the cost of international transportation - accounts receivables, plus the carrying cost of the inventory linked to the international activity minus accounts payable to international suppliers - working capital is accounts receivable from international customers minus accounts payable to international suppliers

- accounts receivables, plus the carrying cost of the inventory linked to the international activity minus accounts payable to international suppliers

Off-shoring means that... - activities that were performed in a manufacturing facility are now performed at a facility in a different geographic location in the same country owned by the same company - activities that were performed in a manufacturing facility are now performed at a facility in a different geographic location in a foreign country owned by the same company - activities that were performed in a manufacturing facility are not performed any longer as a result of manufacturing technology innovation - activities that were performed in a manufacturing facility are now performed by another company (a supplier)

- activities that were performed in a manufacturing facility are now performed at a facility in a different geographic location in a foreign country owned by the same company

Outsourcing means that... - activities that were performed in a manufacturing facility are not performed any longer as a result of a manufacturing technology innovation - activities that were performed in a manufacturing facility are now performed at a facility in a different geographic location in the same country owned by the same company - activities that were performed in a manufacturing facility are now performed at a facility in a different geographic location in a foreign country owned by the same company - activities that were performed in a manufacturing facility are now performed by another company (a supplier) either in the same country or abroad

- activities that were performed in a manufacturing facility are now performed by another company (a supplier) either in the same country or abroad

Which fact was given in the video to show the importance of air cargo transportation for global supply chains? - the airfreight rates per ton-mile have declined in the last 20 years - air cargo transportation accounts for approximately 40% of the world trade in value - airfreight represents only 1% of the world trade by weight - none of the above

- air cargo transportation accounts for approximately 40% of the world trade in value

Which activity is a part of logistics management? - purchasing - transportation - packaging - materials handling - all of the above

- all of the above

Which complexities are common for international shipping operations? - dealing with multiple transportation modes - shipment coordination with multiple carriers, including in foreign countries - higher risk of product damage or delay - complexity of customs regulations - all of the above

- all of the above

Which decisions does the video recommend shippers make when it comes to shipping by air? - inventory replenishment strategy - different types of carriers available - types of services available - handling decisions to ensure proper transportation of the products - all of the above

- all of the above

Why are total landed costs difficult to calculate? - many of the costs fluctuate - many of the costs are hidden - many of the costs are difficult to measure - all of the above

- all of the above

Which of the following are true regarding carbon footprint and supply chain management? - the carbon footprint is part of 70% of corporate agenda - many report green practices to contribute to increase profit - more miles, more sources, more emissions, more management required - all of the above are true

- all of the above are true

When thinking about the customer service objectives for packaging, we should think of... - service provided to the retailer - all of the answers are correct - service provided to the recipient of the packaged - service provided to end-customer

- all of the answers are correct

Containers used in air transportation... - are usually made of heavy steel - are not intermodal (inconvenient to use in other transportation modes) - enable cargo NOT to be manipulated at the departure and the arrival airport to place it in trucks - are not standardized for all airlines

- are not intermodal (inconvenient to use in other transportation modes)

Which is another name for general, or packaged, cargo? - containerized cargo - bulk cargo - break-bulk cargo - neo-bulk cargo - project cargo

- break-bulk cargo

This picture shows ______ being loaded (crane unloading ship containers off of a truck) - breakbulk cargo - containerized cargo - palletized cargo - none of the above

- breakbulk cargo

Given that a company can participate in multiple ecosystems at the same time, ___________ becomes a valuable organizational capability - managing super-efficient factories - managing ocean transportation - speaking multiple languages - building business-to-business relationships

- building business-to-business relationships

Which products make little sense to be shipped by air? - perishable products - high value products - bulk commodities - emergency shipments - products that need to be shipped more frequently

- bulk commodities

The video provides examples of the many questions to consider when determining the best options for your shipment. Which is NOT one of them? - what is the time sensitivity of the shipment - how important is cost - can I pay with frequent flier miles - are specialized freight forwarder services required - how fragile/perishable is the shipment

- can I pay with frequent flier miles

Which is a type of product/industry that will NOT benefit from the unparalleled speed and reliability that airfreight offers? - consumer electronics - high fashion apparel - coal for a power plant - automobile parts - industrial machinery

- coal for a power plant

Which activity is part of logistics management? - promoting a product - advertising a service - sales planning - customer order processing - all of the above

- customer order processing

In a final offer to win your business, a British supplier pledges to match the "FOB supplier dock" price of your current, Philadelphia-based supplier by offering you the same price (when converted to US dollars) for the same amount of products delivered to the Port of Philadelphia. Given what you have learned about total landed costs in the video, what should you do? - accept the offer of the British supplier - Delay your response until you compare the total landed costs - decline the offer, because the total landed costs for the British supplier are very likely to be higher when all factors are considered - Split the business 50 - 50 between the two suppliers - There is not enough information to reasonably select a definite course of action

- decline the offer, because the total landed costs for the British supplier are very likely to be higher when all factors are considered

The author mentions that effective SCM requires reducing cost, increasing inventory velocity and compressing cycle time. What of the following is true? - different product categories might require a different mix of these three objectives - the three goals have to be accomplished at the same time - more frequently than not, the three objectives are compatible - this is a tricky question, all options with a specific answer are true - this is a tricky question, all options with a specific answer are NOT true

- different product categories might require a different mix of these three objectives

Airfreight rate for a single shipment is based on... - its weight only - its volume only - both its weight and volume - either its weight or volume

- either its weight or volume

The example of selling organic cosmetics abroad is used in the video to suggest that... - tastes and preferences of customers abroad will be the same as those of domestic customers - tastes and preferences of customers abroad will be different from those of domestic customers but will not vary from country to country - for successful sales around the world, tastes, preferences, and needs of a much wider range of customers should be studied and understood - South American women will not use organic cosmetics - more organic cosmetics need to be sold in developing countries

- for successful sales around the world, tastes, preferences, and needs of a much wider range of customers should be studied and understood

What is the impact of international sourcing on inventory management? - smaller safety stock - faster replenishment - higher transportation and inventory holding costs - smaller shipment sizes - all of the above

- higher transportation and inventory holding costs

Inflation, increasing factory wages and longer ocean freight is... - increasing near-shoring and re-shoring - making the US and Europe high-growth markets - making globalization concentrate in few countries - increasing the globalization trend

- increasing near-shoring and re-shoring

Which is NOT true of international logistics? - internationally, it manages different logistics activities than domestically - it manages logistics activities in different countries - it manages logistics activities between countries - all of the above statements are true

- internationally, it manages different logistics activities than domestically

Malcolm McLean is best known as a person who... - invented the anchor - was the first to prevail over the ICC - successfully traded stock of steamship companies during the Great Depression - Introduced containers to ocean shipping - was the first to use tankers to ship oil from the Gulf to the East Coast of the US

- introduced containers to ocean shipping

Which costs will need to be taken into account for BOTH domestic and foreign supplier in a more comprehensive and sophisticated calculation of total landed costs? - US port of entry handling charges - inventory costs - costs of protection against currency fluctuations risks - costs of dealing with workers that follow a different work ethic and culture - None of the above costs apply to both domestic and foreign supplier

- inventory costs

Which is NOT true of logistics management? - it is a part of supply chain management - its main activities are planning, implementation and control of movement and storage - it covers goods, services and information - it covers the entire way from the point of origin to the point of consumption - it does not deal with the reverse flows of goods from the customer back to the manufacturer

- it does not deal with the reverse flows of goods from the customer back to the manufacturer

Which is NOT a benefit of transporting products by air? - a more direct manner to reach the destination compared to using ocean carriers - it is more expensive compared to using ocean carriers - a simplified supply chain network with fewer nodes and links - a faster and more agile supply chain

- it is more expensive compared to using ocean carriers

What is the goal of logistics management? - it is to minimize the costs of logistics activities - it is to meet the customers' requirements - it is to optimize the storage of goods - it is to control the distribution of information

- it is to minimize the costs of logistics activities

Lighter cargo will be charged based on... - its weight only - its volume only - both its weight and volume - either its weight or volume

- its volume only

Denser cargo will be charged based on... - its weight only - its volume only - both its weight and volume - either its weight or volume

- its weight only

What factor outside the airline industry has contributed to the consistent growth of airfreight over the years? - lower barriers to trade by governments around the world - more efficient and reliable aircraft - enhanced air cargo service - availability of larger aircraft

- lower barriers to trade by governments around the world

Which of the following is not a performance metric of interest to global supply chains? - total landed cost - total delivered cost - cash-to-cash cycle time - market share - product and customer profitability

- market share

Open borders, reduced barriers, cost effective long-distance transportation and low-cost labor markets resulted in supply chains to be - more concentrated - more complex - more expensive - more efficient

- more complex

Which part of the total landed costs should be taken into account for BOTH domestic and foreign supplier? - income taxes - sales expenses - headquarters overhead allocated on a per sales unit basis - retail stores real estate taxes - none of the above costs are part of the total landed costs

- none of the above costs are part of the total landed costs

The system of airfreight rates is based... - only on the weight of the shipments - only on the volume of the shipments - on both weight and volume of the shipments - on neither weight nor volume of the shipments

- on both weight and volume of the shipments

What customers see is... - tertiary packaging - secondary packaging - none of the other answers - primary packaging

- primary packaging

Which part of the total landed costs should be taken into account for BOTH domestic and foreign supplier? - quoted price at the origin - currency conversion fees - cost of international insurance - bank payment fees for the letter of credit - none of the above costs apply to both domestic and foreign supplier

- quoted price at the origin

The video suggests that in order to comply with regulations of a foreign country to sell food products there, it may be necessary to do all of the following, except to... - change the packaging - translate the label into a foreign language - change the way nutritional information is provided - remove gluten from the product - include specific nutritional statements

- remove gluten from the product

What is yield in airfreight? - revenue per freight ton-mile - revenue per passenger-mile - cost per ton-mile - cost per available seat-mile

- revenue per freight ton-mile

What retailers handle is... - secondary packaging - tertiary packaging - none of the other answers - primary packaging

- secondary packaging

To manage the efficient and effective flow of products, management needs to balance... - revenue, profitability and cost - speed, cost and quality - variety, volume and speed - volume, revenue and relationships

- speed, cost and quality

What of the following is central necessary any global SC metric? - supply chain costing - supply chain visibility - supply chain flexibility - global resilience - global costing

- supply chain costing

Outsourcing and off-shoring are making... - simplifying the role of Customs Offices - limiting the access of end-customers to foreign products - supply chains to be longer - concentrating trade in developed countries

- supply chains to be longer

Which is true of pallets or containers for airfreight? - They are made of steel for extra sturdiness - containers are standardized to be box shaped - containers are the same as used on ocean vessels - they are used to carry the vast majority of airfreight

- they are used to carry the vast majority of airfreight

Which is true of the total landed costs? - they are easy to calculate - they can be used to support decisions in manufacturing facility location selection - in supplier selection, it is not reasonable to remove a foreign supplier from a potential supplier list until total landed costs for all have been compared - all of the above - none of the above

- they can be used to support decisions in manufacturing facility location selection

How have the yields changed in the airfreight industry in the last 20 years? - they have been stable - they have gone down - they have gone up - they have fluctuated a lot

- they have fluctuated a lot

Which is NOT true of air freight forwarders? - they may provide door-to-door service - they use their own flight equipment - they act as consolidators to shippers - they arrange for airfreight deliveries on commercial aircraft

- they use their own flight equipment

Which of the following is true regarding sources of costs in global supply chains? - this is a tricky question, all other options are true - total landed cost - cycle time - customs, taxes and compliance - working capital

- this is a tricky question, all other options are true

What of the following is true regarding the costs that have to be considered as potential candidates to understanding costs in Global Supply Chains? - Costs from planning through execution need to be considered - costs from original supplier to customer need to be considered - costs from end-to-end need to be considered - this is a typical tricky question wrote by Sebastian, all other answers mean the same - costs from point of origin to point of consumption need to be considered

- this is a typical tricky question wrote by Sebastian, all other answers mean the same

How does the author describe the metrics that are needed to manage global supply chains? - timely, complete and actionable - timely, complete, actionable and global - global and complete - none of the other options are correct - global and timely

- timely, complete and actionable

To choose between a domestic supplier and a foreign supplier, the video recommends comparing... - quotes prices - total costs - total landed costs - sales and administrative expenses

- total landed costs

According to the video, which costs of dealing with a foreign supplier are NOT hidden or difficult to quantify? - transportation and insurance - preparing and managing orders - dealing with workers that follow a different work ethic and culture - costs of delays - all of the above costs are either hidden, or difficult to quantify, or both

- transportation and insurance

What of the following does NOT make a difference to cycle time when considering domestic sourcing and offshoring? - customs clearance times - infrastructure of country of origin - carrier capacity - global carrier reliability - transportation lead time between the destination port and the distribution center

- transportation lead time between the destination port and the distribution center

What is NOT true of the time factor in international shipping? - transportation lead times are much longer - transportation lead times are very consistent - delays are likely to occur at ports and security screening points - service recovery takes longer (mistakes are harder to identify and correct)

- transportation lead times are very consistent

Tertiary packaging is also called... - customs packaging - transportation packaging - elementary packaging - transitory packaging

- transportation packaging

What is NOT an impact of larger aircraft on the airfreight industry? - larger aircrafts offer economies of scale - use of larger aircraft reduces the costs of moving freight per ton - use of larger aircraft allows offering lower, more competitive prices - use of larger aircraft has stimulated the growth of GDP of developed and developing countries alike

- use of larger aircraft has stimulated the growth of GDP of developed and developing countries alike

Which products make little sense to be shipped by air? - living human organs - components for just-in-time assembly operation - cut flowers - wheat grain - pharmaceutical products

- wheat grain

Select all that apply: sugar can be shipped as... 1. containerized cargo 2. bulk cargo 3. break-bulk cargo 4. neo-bulk cargo 5. project cargo

1, 2, & 3

Which cargo can be shipped as neo-bulk? Select all that apply: 1. automobiles 2. iron ore 3. steel coils 4. logs 5. oil 6. frozen poultry 7. big hydroelectric turbine

1, 3, & 4

Match types of ocean carriers to the typical vessels they operate: 1. tankers 2. bulk and break-bulk ships 3. containerships a. a liner b. a private carrier c. a tramp

1. b 2. c 3. a

Match the given types of cargo movement needs to the most suitable type of ocean carriers: 1. Massive volumes of oil on a constant basis 2. Large volumes of cargo on an irregular basis 3. Smaller volumes of goods on a regular basis a. a tramp b. a liner c. a private carrier

1. c 2. a 3. b

Match specific cargoes to the best vessels to carry them: 1. tankers 2. LNG vessels 3. Ore and Bulk Ships 4. Break-bulk reefer vessel 5. Containerships 6. Roll on - Roll off vessels a. liquefied natural gas b. boxes of frozen poultry c. crude oil d. cars e. iron ore f. frozen poultry in a 40-ft refrigerated ("reefer") container

1. c 2. a 3. e 4. b 5. f 6. d

Match types of cargoes to their examples: 1. automobiles 2. liquefied natural gas 3. frozen poultry in a 40-ft refrigerated ("reefer") container 4. big helicopter 5. industrial equipment in crates a. break-bulk cargo b. bulk cargo c. containerized cargo d. neo-bulk cargo e. project cargo

1. d 2. b 3. c 4. e 5. a

Match types of cargoes to their examples: 1. logs 2. oil 3. gasoline in a 20-ft liquid bulk container 4. big hydroelectric turbine 5. concentrated grape juice in barrels a. containerized cargo b. break-bulk cargo c. project cargo d. neo-bulk cargo e. bulk cargo

1. d 2. e 3. a 4. c 5. b

Which of the following are true about carbon footprint across the supply chain? 1. Outsourcing results in environmental issues to go away because the supplier deals with them 2. Environmental issues add to the complexity of supply chains 3. legislation about environmental issues is likely to increase complexity of supply chains 4. off-shoring results in environmental issues to go away because the supplier deals with them in a foreign country

2 & 3

Which types of ocean carriers were identified in the video? Select all that apply 1. public 2. private 3. liners 4. lakers 5. tramps 6. cruise ships

2, 3, & 5

Which metrics characterize only the commercial (revenue earning) capacity of the vessel? Select all that apply 1. deadweight tonnage 2. gross tonnage 3. net tonnage 4. TEU

3 & 4

Former name for general cargo vessels that carried pallets of goods and were loaded by stevedores

Break-bulk carriers

Special bulk ships that carry both liquid and dry bulk

Combination Ships (Combi)

A type of general cargo vessels that carry containers

Containerships

Generic name for ships that carry break bulk cargo of any kind

General Cargo Vessels

Ships that carry liquefied natural gas

LNG vessels

Ships with large compartments to carry loads of ore, grain or coal

Ore and Bulk Ships

Ships for transportation of vehicles that drive in and out of the vessel through a ramp

Roll on - Roll off vessels

Ships specialized in carrying liquid bulk cargo

Tankers

Total landed costs refer to the total cost of a product once it has... - left the supplier facility abroad - landed at a US port of entry - arrived at the buyer's door - been sold to the final customer

arrived at the buyer's door

Packaged products loaded individually

break-bulk cargo

Cargo in free form with no packaging whatsoever

bulk cargo

Products placed in containers

containerized cargo

All the weight in tons that the vessel can carry

deadweight tonnage

All volume of enclosed spaces in a vessel

gross tonnage

Unpackaged products loaded individually

neo-bulk cargo

Volume capacity of the vessel, excluding the space for water, fuel and supplies

net tonnage

Unusual cargo that cannot be routinely shipped

project cargo

The video likened the calculation of the total landed costs to the calculation of... - total logistics costs - income taxes - earnings before interest, taxes, depreciation and amortization - total transportation costs - none of the above

total logistics costs

A measure of capacity of containerships

twenty foot equivalent unit (TEU)