12 Quick Check - What is Logistics?
Which combination of modes is the least frequently used intermodal option? Water-truck Air-water Air-truck Rail-water Truck-rail
Air-water
Free on Board (FOB) Destination is also known as ________. FOB Origin FOB Delivered FOB Seller FOB Gratis FOB Insured
FOB Seller
The cost of delivering a truckload of product 500 miles to a neighboring state typically costs PlastiPharm around $4,000. When the company asked for a bid to move a load 30 miles, the trucking company replied with a $700 bid. Why weren't the costs per mile similar? Please select the best explanation.
A minimum standard fee for pick-up and delivery, regardless of the distance of the delivery, increases the cost of local deliveries.
What does quantity utility focus on? Having the product arrive when it is needed Getting customers the right amount of product Having zero inventory according to lean principles Having the inventory where it is needed
Getting customers, the right amount of product
Time utility involves ________. Getting things to a customer early, so they can get their projects completed sooner. Getting things to a customer exactly when needed. Reducing wasted time in the supply chain. All of the above
Getting things to a customer exactly when needed.
Time utility involves ________. Getting things to a customer early, so they can get their projects completed sooner. Getting things to a customer exactly when needed. Reducing wasted time in the supply chain. All of the above
Getting things to a customer exactly when needed.
When PlastiPharm began its lean journey, the company's focus was on cutting back costs by increasing efficiency and reducing waste. In its drive for efficiency, it significantly reduced the number of employees in its logistics departments. The company found, however, that many employees complained about being overworked because there just weren't enough people to do all the work that needed to be done. As one employee said, "Being lean doesn't mean that you don't invest in resources, including human resources." The company eventually hired a few more people and found that its employees were more engaged, more adaptable, and more able to focus on quality work instead of trying to do as little as possible as quickly as possible in order to say projects were completed. Choose the statement that best explains how the company can benefit from a lean, but not too lean, human resources approach.
Having enough employees and ensuring employees are engaged and adaptable allows the company to be resilient and respond quickly in case of a crisis.
What role does radio frequency technology play in warehouse operations? Help pickers identify the right product to select to fill an order Help create a perfect inventory system Communicate to warehouse workers when it is time to take a break Communicate to customers when an order is shipped All of the above
Help pickers identify the right product to select to fill an order
Highly automated warehouses tend to be which of the following? Located in remote locations Highly seasonal facilities High volume facilities Low overhead cost All of the above
High volume facilities
PlastiPharm's warehouse manager works hard to keep his team in the loop on the company's strategies and challenges and invites their input early in project planning. The company has implemented both a paper-based and digital suggestion box to gather improvement ideas from employees and rewards them for ideas that are executed. The warehouse team is especially active in the suggestion program because the manager encourages and immediately recognizes those who participate. Why is it important for the manager to put so much emphasis on gathering input from his team members?
Implementing employee suggestions always improve working conditions and operations.
The transportation manager at PlastiPharm encountered problems when she discovered the trucking company they used most often provided inaccurate bills of lading (B/L) on several shipments. Why was it important for the manager to obtain accurate B/L?
A bill of lading is a legal document that states the contract terms and also acts as a receipt, which enables the manager to appropriately account for expenditures.
Which of the following is one of the main reasons that transportation costs in the US have declined as a percentage of GDP? Most items are shipped from overseas. We store more inventory in more locations now, so we don't move it as far. Improved transportation efficiency/ leaner. All of the above
Improved transportation efficiency/ leaner.
Many of the common metrics used in order fulfillment in warehousing are also used in ________. Cross-dock performance Customer service performance Warehouse productivity performance All of the above
Warehouse productivity performance
How does warehousing enable you to take advantage of transportation economies? Warehousing lets you ship in less-than-truckload quantities. Warehouses enable you to receive full inbound shipments, which can be broken down and stored. Warehouses let you produce in large quantities. All of the above
Warehouses enable you to receive full inbound shipments, which can be broken down and stored.
When considering various potential trade-offs, you need to consider which of the following? The importance of beating the competition What the customer deserves Whether the improved customer service level is profitable All of the above
Whether the improved customer service level is profitable
What kind of warehouse facility performs very differently from a conventional warehouse by receiving inventory and shipping it out in the same day? Mix-and-match warehouse High-rise warehouse Product mixing facility Rapid-flow warehouse Cross-dock
Cross-dock
Which of the following is one of the goals of lean? To increase automation, thereby reducing human error. Eliminate waste. Reduce top management intervention. All of the above
Eliminate waste.
Moving more freight from trucks to rails will provide the following benefits: Faster delivery Fewer delays More environmentally sustainable transportation All of the above
More environmentally sustainable transportation
The concept of continuous moves in trucking is meant to do which of the following? Move freight at higher speeds Make truck-driving jobs more attractive Trick regulators All of the above None of the above
Make truck-driving jobs more attractive
Because of inaccurate billing issues, the trucking carrier most often used by PlastiPharm is no longer acceptable to the company. The transportation manager had several options, which was good, but she needed a tool to analyze the different carriers using a systematic method that considered the most important criteria. She chose the multi-criteria analysis tool to help her with her task. What benefits does this tool provide?
The multi-criteria analysis tool provides the ability to quantify subjective criteria and brings discipline and visibility to the process.
What are the logistics costs in terms of percentage of GDP in the US currently (approximate)? 1% 10% 8% 6% 15%
8%
Approximately what percentage of the bridges in the U.S. public roadways is regarded as "structurally deficient" due to excessive use and age? 5% 1% 9% 2% 20%
9%
Which mode of transportation incurs medium fixed costs with high variable costs and is experiencing rapid growth though it still represents a moderate share of domestic expenditure and a very small market share, as measured by ton-miles, within the U.S. transportation market? Truck Water Pipeline Air Railroad
Air
Which mode of transportation incurs the greatest level of carbon dioxide emissions, resulting in many carriers in this mode offering carbon offset opportunities to their customers? Trucking Pipeline Water Rail Air
Air
Which mode of transportation incurs the greatest level of carbon dioxide emissions, resulting in many carriers in this mode offering carbon offset opportunities to their customers? Water Air Pipeline Rail Trucking
Air
Which of the following are major transportation challenges faced by the transportation industry in the United States? Traffic congestion Aging infrastructure Driver shortage All of the above
All of the Above
Which of the following factors should be considered when choosing the mode, class, and carrier for a shipment? Service requirements of the customer The cost of the transportation service The characteristics of the product The transit time offered by the carrier All of the above
All of the Above
Which of the following is a popular value-added service performed in modern warehousing? Mass customization Final Assembly Repair All of the above
All of the Above
Which of the following is a reason you want to have multi-criteria analysis as a tool in your decision-making toolkit? Multi-criteria analysis is intuitive. Multi-criteria analysis enables you to quantify qualitative issues. Multi-criteria analysis is widely applicable; that is, you can use it whenever decision-making requires comparing options. Multi-criteria analysis invites you to do disciplined homework so that you make a good decision. All of the above
All of the Above
Which of the following is a reason you want to have multi-criteria analysis as a tool in your decision-making toolkit? Multi-criteria analysis is intuitive. Multi-criteria analysis enables you to quantify qualitative issues. Multi-criteria analysis is widely applicable; that is, you can use it whenever decision-making requires comparing options. Multi-criteria analysis invites you to do disciplined homework so that you make a good decision. All of the above
All of the Above
Which of the following statements is true about economies-of-scale experienced in transportation? Transportation cost increases but at a decreasing rate with each additional mile covered. Transportation cost increases but at a decreasing rate with each additional unit added to a shipment. Transportation cost increases but at a decreasing rate with each additional pound (unit of weight) added to a shipment. All of the above
All of the Above
Which warehouse productivity measure provides a good assessment for the speed of warehouse worker activity? Lines per hour Orders per hour Items per hour All of the above
All of the Above
Which of the following are major transportation challenges faced by the transportation industry in the United States? Traffic congestion Aging infrastructure Driver shortage All of the above
All of the above
Why might a company wish to negotiate FOB destination terms when it is the seller of the goods? To ensure that the product arrives at the customer location safely To provide a higher level of customer service for the customer To leverage or make best use of its private fleet, when it owns a fleet of vehicles To maintain control for the goods through the delivery process All of the above could be valid reasons
All of the above could be valid reasons
PlastiPharm employs several modes of transportation for delivery of its products to its customers. In the past, it relied solely on shipping by truck. However, in recent years, customers have demanded more input into the delivery modes. Why should PlastiPharm allow its customers to have any say in how their products are delivered? Or should they not allow it? Please select the best explanation.
Allowing customers to choose a delivery mode based on factors that are most important to them - speed, reliability, cost, environmental impact - will better meet their needs.
Why will LTL carriers charge more for each additional pound or unit of space that you use in a trailer? Because they are charging for the opportunity cost of consumer capacity in the trailer Because they operate as monopolies in most markets and can charge as they wish Because this is how airline carriers also charge for capacity usage Because they compete as low-cost carriers compared to truckload carriers Because this is how they maximize revenues
Because they are charging for the opportunity cost of consumer capacity in the trailer
Business Logistics includes ________. Moving people Event organization Business-to-consumer deliveries All of the above
Business-to-consumer deliveries
The senior management team at PlastiPharm is exploring the possibility of adding one or more distribution centers on the east coast of the United States to improve customer service to different regions. During the analysis, the company reviewed more than just transportation costs but additionally looked at costs of inventory carrying, warehouse, order processing, and poor customer service. Which of the following statements best explains why the company would take into account all of these factors?
By looking at all the costs, the company could optimize its entire logistics system and determine the total cost impact.
Form utility is ________. Can come from modifying a product to include multipacks or samples Derives from marketing's product promotion Related to having the right sizes available to fit a person's form Unrelated to logistics
Can come from modifying a product to include multipacks or samples
In the 5 S approach, sweep refers to what? Standardizing processes and procedures Have a place for everything and put everything in its place when done using it Continuously follow the 5 S approach and implement in throughout your organization Sorting and combining like items Clean and put things away as you use them
Clean and put things away as you use them
What is the term that applies to the holistic process that brings together shippers, carriers, and receivers to drive inefficiencies out of the transport planning and execution process? National Transportation Exchange Holistic transportation management Collaborative Transportation Management (CTM) Inter Load Share the Ship
Collaborative Transportation Management (CTM)
What is the term that applies to the holistic process that brings together shippers, carriers, and receivers to drive inefficiencies out of the transport planning and execution process? Share the Ship Collaborative Transportation Management (CTM) InterLoad Holistic transportation management National Transportation Exchange
Collaborative Transportation Management (CTM)
Warehouse robotization that is designed to support human activities in the facility are called: Automated picker system (APS) Mechanized picking systems (MPSs) Ergonomic friendly devices (EFDs) Collaborative robots (COBOTs) Robotic assistance devices (RADs)
Collaborative robots (COBOTs)
When shipping by LTL carrier, which product is likely to have the highest freight classification? Bath towels Grocery items Consumer electronics Wood furniture Paper
Consumer electronics
Six Sigma relies on what methodology to structure the problem-solving in the attempt to improve work processes? Root-cause methodology Lean methodology On-the-spot problem-solving Lineside problem-solving Define-Measure-Analyze-Improve-Control (DMAIC)
Define-Measure-Analyze-Improve-Control (DMAIC)
At PlastiPharm, delivery of products to the right customer at the right time is of paramount importance. The transportation manager must stay on top of when shipments are received by customers, not just when they leave the company's shipping dock. In certain parts of the United States, the transportation manager schedules delivery, if possible, in the early hours of the morning or late at night. Why would the transportation manager want to schedule deliveries at these times? Please choose the best explanation.
Delivery during these times allows the trucking company to avoid congestion and reduces the chances of late deliveries.
Preparing all the grounds, facilities, and related needs for a big fundraiser is considered which of the following? Business logistics Humanitarian logistics Event logistics Service logistics
Event logistics
Inventory waste refers to which of the following? Excess materials that customers or manufacturing don't currently need. Raw materials that are obsolete or poor quality. Goods that are stolen. Goods that are damaged.
Excess materials that customers or manufacturing don't currently need.
Inventory waste refers to which of the following? Excess materials that customers or manufacturing don't currently need. Raw materials that are obsolete or poor quality. Goods that are stolen. Goods that are damaged.
Excess materials that customers or manufacturing don't currently need.
The definition of logistics provided by CSCMP includes which of the following? Forward flow of goods Supplier relations Control of financial flows All of the above
Forward flow of goods
The definition of logistics provided by CSCMP includes which of the following? Forward flow of goods Supplier relations Control of financial flows All of the above
Forward flow of goods
PlastiPharm's logistics system has been improved over time to become extremely efficient. Movement of supplies and product has been mapped to reduce waste of motion. Packaging and shipping have been improved to take advantage of full truckloads and backhauls. Which of the following statements best explains how these efficiencies benefit the company, its customers, and the economy in general?
Improving logistics systems has reduced logistics costs, which has reduced the cost of living and increased the standard of living in many countries.
In logistics, processing deals with which of the following? Manufacturing processes Information flow and visibility of inventory Where products are stored The movement of goods
Information flow and visibility of inventory
Why is the determination of the appropriate size of a private warehouse so important? It is a decision that you will probably live with for many years. You can never lease your excess capacity. It is impossible to change the capacity of a warehouse. Property taxes as a function of square footage are negligible (very low). Public warehouse space is almost impossible to find in most areas.
It is a decision that you will probably live with for many years.
Why is the determination of the appropriate size of a private warehouse so important? It is impossible to change the capacity of a warehouse. It is a decision that you will probably live with for many years. Public warehouse space is almost impossible to find in most areas. Property taxes as a function of square footage are negligible (very low). You can never lease your excess capacity.
It is a decision that you will probably live with for many years.
PlastiPharm's warehouse is a hive of activity at certain times of the day. Often, three or four fork lifts operators crisscross paths to place or retrieve components or products high on shelves. Unfortunately, during a very busy time several heavy boxes fell when a forklift operator tried to place a pallet close to them. Fortunately, no one was hurt. However, the warehouse manager insisted that all warehouse employees attend a refresher course on safety. In the absence of an injury, why would the manager take the time to review safety procedures during such a busy time? Please choose the statement which best benefits the company and its employees.
Keeping employees safe is the company's number one priority, and the refresher course will help remind the employees of their responsibility to always be safety conscious.
How does a less-than-truckload (LTL) motor operation differ primarily from a truckload (TL) operation? LTL carriers only provide short-distance service. LTL carriers usually provide service without re-handling the freight. LTL operations require several terminal locations for extensive coverage. LTL operations require shippers to drop off their loads at the carrier's terminal. LTL carriers do not use full-size trailers like truckload operations.
LTL operations require several terminal locations for extensive coverage.
How does a less-than-truckload (LTL) motor operation differ primarily from a truckload (TL) operation? LTL operations require several terminal locations for extensive coverage. LTL carriers only provide short-distance service. LTL operations require shippers to drop off their loads at the carrier's terminal. LTL carriers do not use full-size trailers like truckload operations. LTL carriers usually provide service without re-handling the freight.
LTL operations require several terminal locations for extensive coverage.
The demand for PlastiPharm's medical device bags has greatly increased on the east cost of the United States, and the company is considering adding a warehouse in the region. Why would the company, whose plants are in the Intermountain West, California, and Texas, consider adding a warehouse so far from its production sites? How will this best benefit the company?
Locating a warehouse in the right location on the east coast near customers will reduce distance and improve service levels to customers.
Which of the following is true according to the Toyota Production System? Management should determine how to improve processes. Efficiency is more important than effectiveness on the road to lean. Perfection is an attainable goal. Once the system stabilizes, it should be reviewed annually. None of the above
None of the above
Which of the following is true according to the Toyota Production System? Management should determine how to improve processes. Efficiency is more important than effectiveness on the road to lean. Perfection is an attainable goal. Once the system stabilizes, it should be reviewed annually. None of the above
None of the above
What is the term used for very short - term warehousing arrangements that allow clients to use as much or little space as they would like for periods of days or weeks? Protective warehousing Disruptive warehousing Proactive warehousing Opportunistic warehousing On-demand warehousing
On-demand warehousing
Menu pricing refers to which of the following? Intensely competitive negotiations designed to get the lowest price possible from a warehouser. Ordering lunch from the warehouse cafeteria. Paying only for the space and service that you use. Ordering warehousing services over the Internet.
Paying only for the space and service that you use.
Quantity utility means that ________. Companies fill full truck loads to get the lowest transportation cost. People can buy things in the quantities that they desire. There is one optimal package size. We can buy what we want from all over the world.
People can buy things in the quantities that they desire.
Which order fulfillment (quality) measure refers to the number (percentage) of orders delivered defect-free over a specified period of time? On-time delivery Perfect order completion Cost per order Order accuracy Order cycle time
Perfect order completion
A cross-dock operation that receives truckload volumes of finished goods from a variety of consumer goods manufacturers and ships truckload volumes of assorted products to nearby retailers would be an example of a warehouse facility that serves which two purposes for the manufacturers? Inbound consolidation and equipment utilization Supply mixing and product mixing Supply mixing and inbound consolidation Product mixing and long-term storage Product mixing and outbound consolidation
Product mixing and outbound consolidation
A cross-dock operation that receives truckload volumes of finished goods from a variety of consumer goods manufacturers and ships truckload volumes of assorted products to nearby retailers would be an example of a warehouse facility that serves which two purposes for the manufacturers? Product mixing and outbound consolidation Product mixing and long-term storage Supply mixing and product mixing Supply mixing and inbound consolidation Inbound consolidation and equipment utilization
Product mixing and outbound consolidation
Why do railroads require greater volumes of freight in order to be profitable? Railroads must purchase and maintain their own rights of way, leading to very high fixed costs Railroads are far less fuel efficient than other modes and must charge a higher price Rail carriers are charged very high taxes compared to the other modes Railroads employ a larger labor force with high wages Since railroads usually only operate in one nation, they must carry more volume to be profitable
Railroads must purchase and maintain their own rights of way, leading to very high fixed costs
When a shipper considers the trustworthiness of possible carriers, this would be what kind of criterion? Performance criterion Relational criterion Stability and growth criterion Irrelevant criterion None of the above
Relational criterion
When a large volume of product is received at a case-pick warehouse, where is it likely to be placed initially? Forward picking location Case pick area Reserve storage It will remain in the receiving yard for several days Shipping area
Reserve storage
Which form of ocean shipping is most likely to be used for moving military equipment like tanks and Humvees? Bulk Freighter These types of equipment cannot travel by ocean shipping Barge Roll on / Roll off (Ro-Ro) Tanker ship
Roll on / Roll off (Ro-Ro)
Which kind of warehouse arrangement is likely to have the highest variable cost for a company? Building a private automated warehouse Short-term public warehousing Building a private warehouse to support manual operations Long-term contract warehousing Leasing a warehouse
Short-term public warehousing
Why is six sigma finding application in warehouses? Warehouses are very unsafe places to work and six sigma eliminates work hazards Warehouses typically have terrible service and require dramatic changes Customers usually demand that their warehouse providers achieve six sigma quality Governments usually require warehouses to implement six sigma programs Six sigma helps to improve the quality of warehouse processes just like it helps in manufacturing processes
Six sigma helps to improve the quality of warehouse processes just like it helps in manufacturing processes
The waste of "waiting" refers to which of the following? Having excess inventory that is waiting to be processed. An order that is received early by the customer and has to wait to be used. Staging orders to be shipped in advance of when they are needed. Unloading and reloading the same shipment to improve the cube utilization instead of planning in advance.
Staging orders to be shipped in advance of when they are needed.
The waste of "waiting" refers to which of the following? Staging orders to be shipped in advance of when they are needed. An order that is received early by the customer and has to wait to be used. Unloading and reloading the same shipment to improve the cube utilization instead of planning in advance. Having excess inventory that is waiting to be processed.
Staging orders to be shipped in advance of when they are needed.
The warehouse manager at PlastiPharm was faced with a labor shortage when two employees, who lived about 30 miles from town, could not get to work because of an unexpected storm. Demands on the warehouse were high, and the manager needed to quickly decide how to get materials delivered to the production team utilizing the staff he had. He talked to the production supervisor and asked if the supervisor could share a line worker who'd previously worked in the warehouse, and then he himself operated a fork lift (being certified to do so) in order to maintain the flow of parts to the line. With such a focus nowadays on technology, what did the manager do that a warehouse management system (WMS) could not? Choose the statement that best answers the question.
The warehouse manager immediately decide how best to address and solve the problem.
Which of the following best describes logistics trade-offs? Drove the creation of the eight wastes. They challenge us to think of better ways to achieve our goals. Are part of lean principles. Are immutable laws that can't be modified.
They challenge us to think of better ways to achieve our goals.
When discussing the adoption of a transportation management system (TMS) to link with PlastiPharm's ERP system, the company looked at all aspects of its logistics network for ways to improve. How might a TMS help the company to continuously improve? Please choose the response that best benefits the company.
The TMS can help improve collaboration with the company's transportation partners, better manage capacity, and reduce costs.
Twice a year, in July and December, PlastiPharm shuts down its production line for a week. During this time, all facilities are thoroughly cleaned and repaired. This is a busy time for the entire warehouse crew as they go through the facility and identify/tag anything that is out of place, unused, or deemed unsafe in its current location. This step, sorting, is part of the company's 5S process, and all warehouse employees are involved. Once the clutter is removed, the team moves on to the remaining 5S steps: set in order, shine, standardize, and sustain. Which of the following statement best describes the biggest challenge the team faces in this process?
The biggest challenge is for employees to develop the discipline needed to sustain a clutter-free work environment.
At PlastiPharm, customer expectations have changed drastically over the years as new technology and new tools have been developed to increase efficiency and reduce costs. Not all costs have been reduced, however, and the company must carefully monitor inventory, transportation, and packaging costs in addition to its production and administrative costs. What is one of the biggest challenges the company faces to meet customer needs as well as manage its own costs? Please select the best explanation.
The company needs to identify and evaluate tradeoffs in other costs and balance them all in order meet customer needs at the right cost.
As transportation speeds up, which of the following is true? The cost of lost sales decreases. Total costs decreases. The cost of transportation decreases. All of the above
The cost of lost sales decreases.
When conducting a multi-criteria analysis, how would you determine the best option upon concluding the analysis? The median score is the best option The lowest score is the best option The average score is the best option The scores are not important in the decision process The highest score is the best option
The highest score is the best option
When conducting a multi-criteria analysis, how would you determine the best option upon concluding the analysis? The median score is the best option The highest score is the best option The scores are not important in the decision process The lowest score is the best option The average score is the best option
The highest score is the best option
Which of the following best describes logistics trade-offs? They challenge us to think of better ways to achieve our goals. Are immutable laws that can't be modified. Are part of lean principles. Drove the creation of the eight wastes.
They challenge us to think of better ways to achieve our goals.
When PlastiPharm reviewed its contracts for product delivery, it was interested in developing a long-term relationship with a trucking company that was reliable and could deliver product to all areas in the contiguous United States. While these traits were definitely important to the company, what other factors should it consider and why? Please select the statement that would best benefit the company.
To maximize profits, the company should also consider the speed of delivery as well the ability of a company to respond quickly to change.
Why would a shipper consider using intermodal transportation for a domestic move? For simplicity of arranging the move To avoid the regulatory oversight of using just one mode of transportation To take advantage of the strengths offered by multiple modes To create shorter order lead time by combining the speeds of different modes To impress customers by using multiple modes to move their freight
To take advantage of the strengths offered by multiple modes
Which of the following criteria would help you to select the specific site for a new warehouse, as opposed to helping select the larger region in which to locate the facility? State tax abatements Quality of life for team members Supplier network locations Traffic congestion Company history
Traffic congestion
As a result of improved logistics infrastructure in India which of the following is true? Farmers have control of more markets Travel time has shrunk dramatically Poverty has been eliminated All of the above
Travel time has shrunk dramatically
Which of the following transportation modes is characterized by the greatest (best) level of availability and flexibility in movement? Water Rail Pipeline Air Truck
Truck
What is the term that refers to dedicated trains often of 100 or more railcars that move from an origin to a destination to serve a specific customer? Intercity rail Longer combination vehicles Dedicated carriage Unit train Amtrak
Unit train
What is one way to improve upon the outcomes suggested by the classic trade-offs? Job hop, and apply what you learn in one company to the next Use lean processes to reduce waste wherever possible Switch to e-commerce business, where the trade-offs do not apply All of the above
Use lean processes to reduce waste wherever possible
The Toyota Production system ________. Is a one-time improvement process anyone can try at home Is a process that relies on top management incentives Uses the "Plan, Do, Check, Act" approach to waste reduction Is based on the seven wastes
Uses the "Plan, Do, Check, Act" approach to waste reduction
