idis 343 exam 1 review

According to the ROLA, which of the following are correct?

As revenue increase, ROLA increases

A good that you buy without prior planning is a

Convenience good

Which of the following refers to members of the supply channel beyond a firm's immediate suppliers and customers?

Extended supply chain

A supply-to-stock strategy requires the following processing characteristics: excess capacity, quick changeovers, short lead times, flexible processing, premium transportation, and single order processing. T/F

FALSE

In order to calculate ROLA, one needs to take the difference between cost and revenue and divide it by the total assets. T/F

FALSE

Logistics adds value to products or services such as time and possession. T/F

FALSE

Logistics cost accounts for almost 30% of GDP in the USA.

FALSE

Logistics creates value through form and place utilities. T/F

FALSE

Logistics strategy consists of three objectives: cost reduction, capital growth, and service improvement. T/F

FALSE

Supply chain management and logistics management are the same and deal with the entire supply chain. T/F

FALSE

The objectives of logistics strategy are to minimize cost, maximize investment, and to maximize customer service. T/F

FALSE

The two largest cost categories in logistics systems are overhead and purchasing T/F

FALSE

Transportation and inventory costs are the two largest cost categories in logistics while administration and inventory costs have the most frequent trade-off in logistics. T/F

FALSE

When choosing an efficient supply chain strategy, a company would choose supply-to-order production strategy? T/F

FALSE

What is the correct order for the product life cycle?

Introduction, Growth, Maturity, Decline

What are the two largest components of logistics cost?

Inventory and transportation

Which of the following is NOT considered as a part of the Order Cycle Time for a laptop purchased via Amazon.com?

Product development and design

A functional product with predictable demand pattern requires an efficient supply chain. T/F

TRUE

A supply-to-stock strategy is one where the supply chain is set up for maximum efficiency. T/F

TRUE

An item with a high value to weight ratio would have a low transportation cost and a high storage cost as a percent of sales price. T/F

TRUE

An item with a high value to weight ratio would have a low transportation cost and a high storage cost as a percent of sales price. t/f

TRUE

Setting customer service goals is a primary key activity of supply chain management. T/F

TRUE

Strategy is the process whereby plans are formulated for positioning the firm to meet its objectives. T/F

TRUE

The main purpose of logistics is to get the right goods to the right place at the designated time in good condition at the lowest cost and highest return on investment. T/F

TRUE

Value in logistics is primarily expressed in terms of time and place utilities. T/F

TRUE

Shipping tables and chairs in boxes unassembled improves which of the following product characteristics

Weight-bulk ratio

Which of the following explains the value packaging?Facilitates storage and handling Provides product protection Promotes better utilization All of above

all of the above

Which of the following is among the primary logistics activities? Setting customer service goals Transportation Inventory management All of the above

all of the above

Which of the following is an objective of the logistics strategy? Minimizing cost Minimizing investment Maximizing customer service All of above

all of the above

Which of the following is part of logistics strategy formulation? Mixed strategy Total cost concept Postponement All of above

all of the above

What would be an example of a functional product requiring an efficient supply chain?

bread

All of the following are one of the six concepts for logistics strategy formulation except:

cost cutting

Staple food products require a(an):

efficient supply chain due to their predictable demand pattern.

A company will always be able to increase sales by continuing to increase logistical customer service. t/f

false

In shipment consolidation, smaller shipments save you money rather than larger shipment due to the fact that you save money on man power.

false

Order cycle time is the time elapsed between when a customer order is placed by a customer and when the order is shipped. T/F

false

Supply chain management and logistics management are the same and deal with the entire supply chain T/F

false

The Product Cycle time is the time elapsed when a customer order, purchase order, or service request is placed by a customer and when it is received by that customer.

false

The two largest cost categories in logistics systems are transportation and inventory but are never used as trade offs for one another.

false

Which is of the following is NOT one of the 4 problem areas of supply chain planning?

financial decisions

Which of the following is NOT a level of logistical planning?

geographic

Which of the following would NOT result in a higher ROLA value?

increasing cost

During which phase of the product life cycle would you more likely use a responsive supply chain?

introduction

The Logistics Strategy Triangle includes the:

inventory, transportation, location

Which of the following is a product with predictable demand?

jello

Logistics is the process of all the following EXCEPT: Marketing Controlling the efficiency Planning Implementing

marketing

A company like Coca Cola has been able to stay in business so long with little change to its product because of its ability to stay in which stage of the product life cycle?

maturity

Which of the following is not a goal of logistics strategy: Maximize inventory Minimize cost Maximize customer service Minimize investment

maximize inventory

___ is the time elapsed between when a customer purchase order is placed by a customer and when it is received by that customer.

order cycle time

Which of the following is NOT considered as a primary key activity for a company?

product scheduling

Which of the following is not a geographic product pricing method?

quantity discounts

Which of the following is NOT a characteristics of a supply-to-stock strategy? Large shipment sizes Short lead times Economies in scale of production Batch order processing

short lead times

Which of the following is NOT a part of the product life-cycle curve?

stability

The supply chain encompasses all activities associated with the flow and transformation of goods from:

the raw materials to the end user

Which of the following is correct when relationship among average inventory level, inventory carrying cost, lost sales cost and total cost are considered

the total cost must always be higher than inventory carrying cost and lost sales

Which of the following is an example of a predictable demand product?

tomato soup

Which of the following is a primary key activity?

transportation

A mixed distribution strategy will have lower costs than a pure or single strategy t/f

true

According to the Weight-Bulk ratio graph, as transportation costs decrease, the weight-to-bulk ratio increase. T/F

true

According to the Weight-Bulk ratio graph, as transportation costs decrease, the weight-to-bulk ratio increase. t/f

true

Order-cycle-time is the time period from when a product is ordered to the time it is received by a customer.

true

Product availability and order cycle time are dominant physical distribution variables. t/f

true

The extended supply chain refers to those members of the supply channel beyond the firm's immediate suppliers or customers

true

Time horizon is an important difference among the three levels of logistical planning which are strategic, tactical, and operational. T/F

true