SCH Chapter 9

Reverse logistics can have a positive impact on the environment through activities such as? a. Risk pooling b. Data warehousing c. Recycling d. Reneging

c. Recycling

Which of the following modes of transportation should be used to haul large quantities of natural gas and oil from desolate areas to existing processing facilities hundreds of miles away? a. Motor Carriers b. Water Carriers c. Pipeline Carriers d. Rail Carriers

c. Pipeline Carriers

the following are all examples of lean warehousing capablities except: -decreased assembly operations -reduced lot size -increased automation -increased cross docking

-decreased assembly operations

A clothing manufacturer presently owns a total of four warehouses in the following cities Las Vegas, Denver, Chicago, and Pittsburgh. The average inventory levels for the four warehouses are 7000 units, 6,000 units, 5,000 units, and 6000 units, respectively. They plan on moving all of their inventory to one warehouse in Las Vegas. Using the square root rule, what will be the required average inventory level at the new Las Vegas warehouse required to maintain the system's present customer service level? (Choose the closest answer.) a. 12,000 b. 9,000 c. 6,000 d. 15,000

a. 12,000

Which of the following is a direct benefit from the adoption of NAFTA? a. An increase in trade between U.S., Canada, and Mexico b. An increase in manufacturing job opportunities in the U.S. c. A reduction in illegal immigrants crossing the border from Mexico d. An increase in trade between U.S. and China

a. An increase in trade between U.S., Canada, and Mexico

For integrated supply chains, logistics is considered: a. Critically important b. Important c. Not at all important d. Somewhat important

a. Critically important

When warehouses receive, break down, and repackage shipments, and then distribute components to a manufacturing location or finished products to customers by a distribution center this activity is referred to as: a. Crossdocking b. Piggy backing c. Customs Brokering d. Transshipping

a. Crossdocking

In the U.S., which of the five basic modes of transportation is responsible for the largest volume (in tonnage) of domestic freight hauled? a. Motor Carriers b. Air Carriers c. Pipeline Carriers d. Rail Carriers

a. Motor Carriers

Which of the following carriers is most favorable, but inflexible, when shipments are heavy and the distance for delivery is long? a. Rail Carriers b. Pipeline Carriers c. Motor Carriers d. Air Carriers

a. Rail Carriers

The rule to estimate the effect of risk pooling is referred to as the _______. a. Square root rule b. Linear rule c. FOIL rule d. Exponential rule

a. Square root rule

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

a. The Shipping Act of 1984

Which of the following was enacted to reduce and eliminate transportation regulations? a. Trucking Industry Regulatory Reform Act b. Freight Forwarders Act c. Reed Bullwinkle Act d. Granger Law

a. Trucking Industry Regulatory Reform Act

The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location. a. True b. False

a. True

When mistakes occur in logistics, which of the following might happen? -more safety stock must be held -customer service levels decrease -cost may increase -All of the above

all of the above

Which of the following international intermediaries move global shipments through customs for companies and handle the documentation required to accompany the shipments? a. NVOCC b. Customs broker c. Foreign freight forwarder d. Customs Trade Partnership

b. Customs broker

Which of the following was the first major transportation regulation in the U.S.? a. Interstate Initiation Act b. Granger Laws c. Interstate Commerce Act d. Motor Carrier Act

b. Granger Laws

It is argued that transportation deregulation is good because: a. It protects consumers in terms of monopoly pricing b. It encourages competition c. It ensures adequate transportation service throughout the country d. All of these choices are correct.

b. It encourages competition

_______________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Air Carriers b. Motor Carriers c. Rail Carriers d. Water Carriers

b. Motor Carriers

Intermodal marketing companies (IMCs) are companies that act as intermediaries between intermodal a. Warehouse management companies b. Railroad companies c. Trucking companies d. Waste management companies

b. Railroad companies

Which of the following is NOT a direct benefit from the adoption of NAFTA? a. Trade between U.S., Canada, and Mexico has increased b. Reduction in illegal immigrants crossing the border from Mexico since NAFTA began c. Foreign direct investment in Mexico are increasing d. Regional trade has increased sharply over NAFTA's first two decades

b. Reduction in illegal immigrants crossing the border from Mexico since NAFTA began

Returns management is also known as _______. a. Inverted logistics b. Reverse logistics c. Backward logistics d. Waste reduction

b. Reverse logistics

A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 6,667 b. 25,820 c. 15,492 d. 11,619

c. 15,492

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

c. Containerships

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: a. Piggy backing b. Risk pooling c. Crossdocking d. Customs Brokering

c. Crossdocking

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

c. Freight forwarder

________________ creates the flow of goods between supply chain partners, such that costs, service requirements, competitive advantage, and profits can be optimized. a. Procurement b. Operations c. Logistics d. Transportation planning

c. Logistics

Which of the following does not play a significant role in the logistics function? a. Customer Service b. Transportation c. Manufacturing Cells d. Warehousing

c. Manufacturing Cells

A product positioned strategy: a. Places warehouses midway between the sources of supply and the customers b. Places warehouses close to customers c. Places warehouses close to the sources of supply d. None of these choices are correct.

c. Places warehouses close to the sources of supply

The for-hire logistics expenditures in the U.S. has more than ___________ in the last thirty-one years? a. Tripled b. Doubled c. Quadrupled d. None of these choices are correct.

c. Quadrupled

Reverse logistics refers to the movement, storage, and processing of: a. Finished goods b. Electronic equipments c. Returned goods d. Manufacturing supplies

c. Returned goods

_______________ can have a positive impact on the environment through recycling, reusing materials and products, or refurbishing used products and reducing the environmental impact of certain modes of transportation used for returns. a. Risk pooling b. Private carriers c. Reverse logistics d. Piggyback services

c. Reverse logistics

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

c. Small firm with no logistics expertise

Small firms with no internal logistics expertise and large firms with many sizeable and varied logistics needs can benefit greatly by using: a. TSA service b. TOFC service c. LTL service d. 3PL service

d. 3PL service

Logistics affects the supply chain function by: a. Creating the flow of goods between supply chain partners b. Providing time and place utility c. Determining how deliveries can be made in a timely manner d. All of these choices are correct.

d. All of these choices are correct.

When mistakes occur in the supply chain, which of the following things might happen? a. Customer service levels drop b. Cost may increase due to expedited deliveries c. More safety stock must be held d. All of these choices are correct.

d. All of these choices are correct.

Lean warehousing may involve all of the following capabilities EXCEPT: a. Greater emphasis on crossdocking b. Reduced lot sizes and shipping quantities c. A tendency to be green d. Decreased automation

d. Decreased automation

Which of the following are secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes? a. Private warehouses b. Public zones c. Global warehouses d. Foreign-trade zones

d. Foreign-trade zones

_____________ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized. a. Procurement b. Transportation planning c. Operations d. Logistics

d. Logistics

In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Slowly declined b. Decreased for the first 10 years, then increased c. Remained the same d. More than quadrupled

d. More than quadrupled

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

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

A primary advantage for motor carriers is the weather. a. True b. False

false

T/F The cost-of-service pricing method is the profit maximizing approach

false

Which of the following is not a type of transportation carrier: common contract exempt public

public carrier

Reverse logistics can have a positive impact on the environment through activities such as?

recycling

T/F Motor carriers are the most flexible and account for 70% of freight tonnage moved in the US

true

T/F The five basic modes of transportation are: motor, rail, air, water, and pipeline

true