Supply Chain: Final Exam
T/F: If an organization wanted to set up a facility in an area near a number of advanced suppliers, competitors, and research facilities in order to have access to current information on materials, components, and technologies the organization would likely set up a source facility.
F
T/F: International intermediaries can provide shipping, consolidation, and other import and export services. Some examples of these include: foreign freight forwarders, NVOCCs, FTZs, and TOFCs.
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T/F: A country that imposes high tariffs encourages foreign-based companies to import goods.
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T/F: A list of quality-of-life factors would most likely include proximity to customers, proximity to suppliers, tariff rates, and currency stability.
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T/F: A retailer with two checkout stands is an example of a single-channel, multiple phase queuing system.
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T/F: A small LTL shipment that originates on a truck in LA and is moved from LA to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since utilize more than one vehicle during shipment.
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T/F: According to the book, two models that utilize quantitative data, which can help determine the attractiveness of one location versus another, are the Break-Even Model and the Extrapolated Average Cost Model.
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T/F: According to the textbook, the five basic modes of transportation are motor, rail, air, water, and cyberspace.
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T/F: Balking occurs when customers decide to leave the queue after some length of waiting time in the queue.
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T/F: Baumol's disease refers to the fact that multiple factor productivity measures tend to be bad, because firms often concentrate on improving one, while neglecting others.
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T/F: Because air transport is so expensive the best cargo candidates for air travel are those cargo shipments worth more than 25,000 per unit.
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T/F: Business clusters are areas of extremely high competition where companies that are in the same industry compete for labor, materials, and distribution. They are typically a sign of unstable economy and are thus likely to produce low levels of innovation and productivity.
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T/F: Efficient supply chain management distribution requires that warehouses concentrate their efforts on storing purposes, work in progress inventories and finished good inventories, while trucking companies and retail facilities take care of receiving shipments, breaking down shipments, repackaging, and the distribution of components.
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T/F: Facility location is a business decision that ultimately has minimal impact on issues like the cost of supplies, facilities, and materials, as well as lead times and customer service levels since trade-offs tend to negate gains in any single category.
F
T/F: Many multinational corporations are moving their factories and headquarters out of China and into Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers. The more attractive customer markets are developing in the Southeast Asian region, not in China.
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T/F: One problem with services is that they cannot expand globally.
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T/F: Service organizations need to consider the fact that the services they provided are not consumed by the immediate customer, rather, service are typically passed on to customers farther down a distribution channel.
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T/F: Since the 1950's, the percentage of manufacturing and agriculture related jobs in United States due to the use of technology and mass production techniques developed during that time.
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T/F: The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and COMESA, an agreement between all of the South American countries.
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T/F: The optimal capacity utilization for an organization would be 100%.
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T/F: The responsibility of transportation is to create both shipment and inventory utility, which means that products will be delivered efficiently and be kept in stock for convenient purchase.
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T/F: Themed restaurants such as the ESPn zone, Rainforest Cafe, and Chuck E. Cheese are all example of Entertainment Facilities.
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T/F: While most economies have grown through the growth of manufacturing industries, India has experienced an increase in the standard of living because of rapid growth of agricultural industries and a drop in the services related industries.
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T/F: While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facilities location, because of the Internet, the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.
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T/F: While transportation regulation and deregulation both have their supporters, proponents of regulation consider it to be good since it is said to encourage competition and allows the negotiation of prices to dictate market costs.
F
T/F: Whole high speed trains in the US are commonly utilized to provide quick delivery of product, countries like Japan and France are struggling to develop competitive high speed rail systems.
F
T/F: A country that imposes high tariffs discourages foreign-based companies from importing goods and they also may encourage multinational corporations to set up local factories to produce locally in order to avoid high tariffs.
T
T/F: A list of quality-of-life factors would most likely include education system, health care system, effectiveness of law enforcement, and travel infrastructure (roads/highways).
T
T/F: A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.
T
T/F: A shipment that originates in LA and is placed inside a sealed standardized 8' by 8; by 20' container attached to a truck trailer and is moved from LA to Phoenix where the container is then moved to a railcar for final shipment to Denver where it would then be loaded onto another truck trailer would be considered an intermodal shipment since the container remained sealed through the shipment.
T
T/F: A very popular fast food restaurant is presently staffed with three cash register attendants that are taking orders. Upon entering the restaurant, customers must choose from three separate lines, each of which leads to one of the three registers. Immediately upon placing their order with the register attendant, customers are given their food and drinks by the register attendant. To analyze the situation you would use the queuing model for an infinite source, multiple servers, and multiple channels.
T
T/F: According to the textbook, Wal-Mart and Staples are making efforts to improve their environmental sustainability by motivating changes in the logistics system.
T
T/F: According to the textbook, the five basic modes of transportation are motor, rail, air, water, and pipeline.
T
T/F: Because air transport is so expensive the best cargo candidates for air travel are those cargo shipments with a high cost to weight ratio.
T
T/F: China's economy is shifting from labor-intensive industries to areas like marketing and the production of high technology products that typically provide higher levels of value.
T
T/F: Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.
T
T/F: Efficient supply chain management distribution requires that warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases, work in progress inventories, and finished good inventories, receiving shipments, breaking down shipments, repackaging, and distribution of components.
T
T/F: Facility location is a business decision that will ultimately impact issues like cost of supplies, facilities, and materials, as well as lead times and customer service levels.
T
T/F: If an organization wanted to set up a facility in an area near a number of advanced suppliers, competitors, and research facilities in order to have access to current information on materials, components, and technologies the organization would likely set up an outpost factory.
T
T/F: In order to maximize customer satisfaction/visits, service organizations must be able to identify customer needs, create systems that can quickly satisfy these needs in a cost-effective manner, hire, train, and schedule service representatives effectively, utilize technology effectively, and conveniently locate service facilities.
T
T/F: In order to provide more comprehensive delivery service, some freight-only airlines have invested in developing their own motor carrier fleets to provide full door to door service delivery.
T
T/F: Limitations of air carrier transport include cost and airport accessibility.
T
T/F: Location strategy is important in that it can provide barriers to entry, and competitive positioning, as well as generating additional demand.
T
T/F: Long-term customer satisfaction, especially in the face of service failures, requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way
T
T/F: Many multinational corporations are moving their facilities and headquarters out of Taiwan and southeastern Asian countries in order to take advantage of proximity to customers, because more attractive markets are in China.
T
T/F: Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs, costs, and the free flow of goods and services in different regions of the world.
T
T/F: Risk pooling is a strategy that attempts to use fewer warehouses to decrease the required safety stock levels since the negatively correlated market demands reduce the overall demand variance across the markets which the centralized warehouse services.
T
T/F: Risk pooling is a strategy that attempts to use more warehouses to decrease the required total safety stock level since the negatively correlated market demands reduce the overall demand variance across the markets which the decentralized warehouses service.
T
T/F: Service facilities are normally decentralized.
T
T/F: Since the 1950's, percentage of service related jobs has increased much more rapidly than the percentage of manufacturing and agriculture related jobs in the US due to use of technology and mass production techniques developed during that time.
T
T/F: Some of the e-commerce related services that transportation companies offer nowadays to remain competitive include allowing customers to plain itineraries, get freight quotes, and track shipments online.
T
T/F: The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and MERCOSUR, an agreeemtn between Argentina, Brazil, Paraguay, and Uruguay to develop a common South American market.
T
T/F: The primary difference between FOB origination and FOB destination is that destination requires that the supplier legally own the product until it reaches destination; in origination, the buyer takes ownership immediately and is thus responsible for arranging delivery.
T
T/F: The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at precisely the right time to the desired location.
T
T/F: When a customer takes their automobile to a carwash, the carwash provides state utility to the vehicle.
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T/F: When a supplier provides a price quote to buyer for supplies that includes transportation to the buyer's location, this is known as FOB destination pricing, or free on board to the shipment's destination.
T
T/F: When trying to gauge a nation's competitiveness a manager may want to consult one of two primary world competitiveness rankings,the World Competitiveness Yearbook published by IMD and The Global Competitiveness Report prepared by the World Economic Doorway.
T
T/F: While business clusters seem logical in well-established areas with developed economies like Silicon Valley and Hollywood, California because companies can easily cooperate, compete, and share knowledge, some high-tech clusters have developed in areas with emerging economies like Mexico, Singapore, and India.
T
T/F: While many developing countries are attractive to companies seeking out low labor costs, there are other important factors such as productivity, employee skill and education levels, turnover rates, and employment trends that certain industries find just as important, if not more important in determining facility location.
T
T/F: While transportation regulation and deregulation both have their supporters, proponents of deregulation consider it to be good since it is said to encourage competition and allows the negotiation of prices to dictate market costs.
T
Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 6 customers per hour, determine the mean interarrival time. a. 10 minutes b. 6 minutes c. 60 minutes d. 14 minutes
a. 10 minutes
Which of the following carries must publish and offer the same rates to all shippers between designated locations? (B/c of these requirements they are most heavily regulated of all the carrier classes.) a. Common carrier b. Exempt carrier c. Private carrier d. Contract carrier
a. Common carrier
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? a. Consolidation warehouse b. Private warehouse c. Breakbulk warehouse d. Public warehouse
a. Consolidation warehouse
What does COFC stand for in transportation? a. Container on a flat car b. Container, Freight, car c. Centralized outbound freight container d. Coordinated outbound freight and carrier
a. Container on a flat car
Which of the following is NOT consistent with a decentralized warehousing system? a. Lower safety stocks required b. Shorter lead times c. Lower transportation fees d. Higher total operating costs
a. Lower safety stocks required
Which of the following strategic foreign facilities is set-up to primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher. a. Offshore factory b. Server factory c. Source factory d. Outpost factory
a. Offshore factory
The number of customers per day an organization's service delivery systems are designed to serve within a certain time frame is referred to as: a. Service capacity b. Capacity utilization c. Productivity potential d. Service throughput
a. Service capacity
What is the abbreviation for a truck trailer which is placed on a flat railcar that would then be pulled by a train engine? a. TOFC b. COFC c. NVOCC d. TTFC
a. TOFC
Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Utilizing fewer facilitating products b. Utilizing technological tools like computers and automated systems c. Cross-training and sharing employees d. Using customers to provide services
a. Utilizing fewer facilitating products
First come first serve is an example of: a. queue discipline b. unfair waiting policy c. channel queuing arrangement d. Single-phase queue design
a. queue discipline
If the average service rate is 15 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes. a. zero b. 0.49 c. 0.28 d. 0.62
b. 0.49
The three generic competitive strategies are: a. profit-based, nonprofits, and free services b. Cost leadership, differentiation, and focus c. Manufacturing, service, and retail d. Mass production, make-to-order, and services
b. Cost leadership, differentiation, and focus
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. Crossdocking c. Transshipping d. Customs brokering
b. Crossdocking
Which of the following strategies is being followed by a company that is based on creating a service that is considered to offer unique service elements for which customer may consider paying higher prices? a. Focus strategy b. Differentiation strategy c. Cost leadership strategy d. Exclusivity strategy
b. Differentiation strategy
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, us those components in the production of end items, and export them to other countries, they would most likely utilize a: a. Duty-free territory b. Foreign Trade Zone c. International Cross Docking Zone d. International Processing Center
b. Foreign Trade Zone
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 of small shipments to fill entire truck loads? a. Transportation Broker b. Freight forwarder c. Shippers' Association d. Integrated Logistics service provider
b. Freight forwarder
Which of the following was NOT mentioned in the book as being one of the more popular logistics management software applications? a. Transportation management systems b. Freight management systems c. Warehouse management systems d. Returns management systems
b. Freight management systems
Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination: a. Sourcing center b. Hub and spoke c. Air and ground d. LTL consolidation
b. Hub and spoke
The Wal-Mart effect is best described by which of the following? a. As large retailers locate in communities , they put smaller companies out of business? b. Information technologies have allowed large retailers to maintain good productivity rates. c. Wal-Mart;s use of supplier capacity has made it difficult for other companies to find suppliers. d. The growth of large retailers has had a negative impact on the environment.
b. Information technologies have allowed large retailers to maintain good productivity rates.
What does LTL stand for in the transportation industry? a. Logistical Train-car Lift b. Less-than-Truckload c. Large truck leasing d. Local Train Logistics carriers
b. Less-than-truckload
Which of the following is consistent with a centralized warehousing system? a. Higher safety stocks required b. Longer lead times c. Lower transportation fees d. Higher total operating costs
b. Longer lead times
When studying queuing models, a customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Balked b. Reneged c. Stalled d. Disposed
b. Reneged
Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers, minimize exchange risk, and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes. a. offshore factory b. Server factory c. source factory d. outpost factory
b. server factory
Which of the following is paired with the appropriate region of the world? a. NAFTA- Southeast Asian nations b. COMESA- United States, Canada, and Mexico c. MERCOSUR- Argentina, Brazil, Paraguay, Uruguay d. EU-Middle East (no Israel)
c. MERCOSUR- Argentina, Brazil, Paraguay, Uruguay
Which of the following is an example of a person that would e considered to provide a pure service? a. Attorney lawyer b. Management consultant c. Musical entertainer d. All the above
c. Musical entertainer
Certain states in the United States have laws that secure the rights of employees to decide for themselves whether or not to join or financially support a labor union. These laws include: a. Employee freedom acts b. Free trade laws. c. Right-to-work laws d. Sanctioned union acts
c. Right-to-work laws
Which of the following items would be considered a facilitating product? a. The automobiles washed by the car wash b. The suits being cleaned by the dry cleaner c. The tools used to fix your car at an auto shop d. All of these
c. The tools used to fix your car at an auto shop
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? a. Customs broker b. Foreign freight forwarder c. Trading company d. NVOCC
c. Trading companies
Which of the following would be considered an act of deregulation? a. Reed Bullwinkle act b. Granger law c. Trucking Industry Regulatory Reform Act d. Freight Forwarders Act
c. Trucking Industry Regulatory Reform Act
Which of the following modes of cargo transport can be characterized as most inexpensive and very slow, yet good for transporting very heavy goods long distances? a. Air carriers b. Rail carriers c. Water carriers d. Motor carriers
c. Water carriers
Which of the following is a warehousing trend? a. Traditional warehouses moving away from storage toward distribution. b. Locating your warehouses closer to your suppliers. c. Warehouses engaging in crossdocking activities. d. All of these.
d. All of these
Which of the following issues is (Are) important to consider when trying to determine the location of a firm's facilities? a. Stability of the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered. d. All of these
d. All of these
Which of the following organizations would be considered an example of a global service? a. FedEx b. Deutsche Bank c. Wal-Mart International d. All of these
d. All of these above
Which of the following is a reason that experts have referred to China as being a primary location of business in this century? a. China is one of the largest recipients of foreign direct investment b. China is the second largest exporter to the US c. China's population accounts for over 20% of the world's population. d. All the above
d. All the above
Which of the following is NOT consistent with decentralized warehousing system? a. Higher safety stocks required. b. Shorter lead times c. Lower transporation fees d. Lower total operating costs
d. Lower total operating costs
According to the book, the largest ocean containerships can carry how many 20 foot containers? a. 3000-5000 b. 5000-8000 c. 8000-10000 d. Over 10000
d. Over 10000
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? a. Common carrier b. Exempt carrier c. Contract carrier d. Private carrier
d. Private carrier
While there are many questions and concerns that must be addressed before a final location is determined, there are basically three levels of location decisions. Which of the following is not one of those three levels of location decisions? a. Global market or country selection b. Subregion or state selection c. Community and site selection d. Territory and quadrant selection
d. Territory and quadrant selection
Which of the following would result in an INCREASE in productivity? a. The value/amount of the inputs used increases and the value/amount of outputs decrease b. The value/amount of the inputs used increases and the value/amount of outputs stays the same c. The value/amount of the inputs used stays the same and the value/amount of outputs decreases d. The value/amount of the inputs used stays the same and the value/amount of outputs increases
d. The value/amount of the inputs used stays the same and the value/amount of outputs increases
Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all of the shipping arrangements and documentation? a. Customs broker b. Foreign freight forwarder c. NVOCC d. Trading company
d. Trading company
