Cengage Questions (8 & 9)

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

b. False

Lean production, JIT, and Six Sigma quality mean the same thing. a. True b. False

b. False

The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept: a. Just-in-Time b. Six Sigma c. Kaisen d. Efficient Consumer Response

a. Just-in-Time

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

a. Railroad companies

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

a. Recycling

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

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

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms. a. True b. False

a. True

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 lean firms share their best practices with supply chain members, this is referred to as yokoten. a. True b. False

a. True

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

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

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

b. Containerships

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

b. Critically important

Which of the following quality gurus believed that companies should strive for zero defects and that quality was, in a sense, free since quality improvement programs invariably paid for themselves? a. Juran b. Crosby c. Baldrige d. Deming

b. Crosby

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

b. Crossdocking

The Five-Ss refer to: a. Overspending habits b. Industrial housekeeping c. Keiretsu relationships d. Robust evaluation techniques

b. Industrial housekeeping

Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a: a. Keiretsu Network b. Kanban System c. TQM Network d. Semaphore System

b. Kanban System

Japanese manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called? a. Jidoka Networks b. Keiretsu Networks c. Kaizen Networks d. Kanban Networks

b. Keiretsu Networks

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

b. Logistics

Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe: a. Cause-and-Effect Diagrams b. Pareto Charts c. Fishbone Diagrams d. Check Sheets

b. Pareto Charts

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

b. Places warehouses close to the sources of supply

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

b. Reverse logistics

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

b. The Shipping Act of 1984

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

c. It encourages competition

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

c. More than quadrupled

________________ 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. Rail Carriers c. Motor Carriers d. Water Carriers

c. Motor Carriers

Which of the following is an example of how lean programs can help to protect the environment? a. Parts made from recycled materials b. Batch size reduction to reduce plastics c. Using rubber from used tires in auto parts 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.

An important outcome of statistical process control is: a. Firms can take corrective actions before process variabilities get out of control b. Firms can minimize total inventory cost c. Firms can visually monitor process performance d. Both "Firms can take corrective actions before process variabilities get out of control" & "Firms can visually monitor process performance" e. None of these choices are correct.

d. Both "Firms can take corrective actions before process variabilities get out of control" & "Firms can visually monitor process performance"

Which company probably played the largest role in the development of the Toyota Production System? a. Chrysler b. Boeing c. General Motors d. Ford

d. Ford

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

d. Freight forwarder

Which of the following is NOT consistent with the lean philosophy? a. Developing a culture of continuous improvement within the organization b. Cross-training employees to increase processing flexibility c. Positioning WIP inventories near each processing center d. Increasing batch sizes to take advantage of economies of scale

d. Increasing batch sizes to take advantage of economies of scale

The following is a term that refers to error or mistake proofing: a. Kanban b. Muda c. Kaizen d. Poka-yoke

d. Poka-yoke

Which person was a key figure in developing the Toyota Production System and also developed the concept of poka-yoke? a. Toyoda b. Ohno c. Deming d. Shingo

d. Shingo

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. A for-hire transportation company d. Small firm with no logistics expertise

d. Small firm with no logistics expertise