Logistics Exam Ch 1 - 5

The Importer Security Filing (ISF) rule requires importers to file ____ pieces of information and carriers to file ____ pieces of information.

10; 2

The concept of logistics social responsibility, or corporate social responsibility issues that relate directly to logistics, did not emerge until which decade?

1990-1999

The supply chain management philosophy emerged in which decade?

1990s

There are suggestions that widespread adoption of RFID will only occur when the price of read-only tags drops below ____ cents.

2

A general rule of thumb is that the actual time to implement ERP systems may range from ____________ to ____________ times longer than the time period specified by the ERP vendor.

2; 4

Depending on industry and product type, reverse logistics costs as a percent of revenue can range between ____ and ____ percent.

3; 6

Reverse logistics can be ____ times more expensive than forward logistics.

4 to 5

World trade grew at an average annual rate of approximately ___________ percent between 1997 and 2007.

6

____________ is bringing together similar stocks from different sources.

Accumulating

____________ refers to breaking a homogenous supply into smaller lots.

Allocating

The ____ reflects the assets, liabilities, and owners' equity at a given point in time.

Balance sheet

4. ____ help various stakeholders—employers, suppliers, customers—work together by interacting and sharing information in many different forms.

Communication systems

The two key factors that have sparked much of the technological change affecting supply chains are ____________ and ____________.

Computing power; Internet

____ refers to "how we do things around here" and reflects an organization's vision, values, and strategic plans.

Corporate culture

____ strategy is focused on determining the goals for the company, the types of businesses in which the company should compete, and the way the company will be managed.

Corporate-level

Which of the following represents the preferred hierarchy of strategy (i.e., from the first strategy to be developed to the last to be developed)?

Corporate‡ business unit‡ functional

Two of the most important U.S. government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency

Customs and Border Protection

____________ refers to the application of mathematical tools to large bodies of data in order to extract correlations and rules.

Data mining

Warehouse management systems represent an example of what general type of information management system?

Decision support system

A ____ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.

Differentiation

___________ refers to the computer-to-computer transmission of business data in a structured format.

EDI

What concept refers to "how well company resources are used to achieve what a company promises it can do?"

Effectiveness

____ create and maintain consistent data processing methods and an integrated database across multiple business functions.

Enterprise systems

The ___________ department often measures inventory in terms of its cost or value in dollars, whereas ___________ tends to measure inventory in terms of units.

Finance; logistics

Logistics measurement systems have been traditionally information on how many types of performance?

Five

____ can be defined as an organization's ability to address unexpected operational situations.

Flexibility

Which generic strategy concentrates an organization's effort on a narrowly defined market to achieve either a cost leadership of differentiation strategy?

Focus

The balanced scorecard approach is based on the belief that management should evaluate their business from ____ distinct perspectives.

Four

____ and ____ are the two basic organizational structures associated with logistics.

Fragmented; unified

____ refers to a network of satellites that transmits signals that pinpoint the exact location of an object.

Global positioning systems

A(n) ____ entails the functional units of an organization providing input into the other levels of strategy formulation.

Hierarch of strategy

____ organizational design has its foundations in the command-and-control military operation, where decision-making and communication often follow a top- down flow.

Hierarchical

An under performing supply chain is defined as one that exhibits poor service, unproductive assets, and

High variable operating costs

In general, the ____ measures the profitability of the products and/or services provided by a company

Income statement

The ____ shows revenues, expenses, and profit for a period of time.

Income statement

____________ has been identified as the biggest information technology that companies face today.

Information security

With respect to asset turnover, ____ is typically the most relevant logistics asset.

Inventory

Which of the following is not a potential type of logistics strategy decisions?

Investments in technology that support logistics activities Selecting appropriate transportation modes Deployment of inventory Number and location of warehouses

____ refers to focusing part of one's supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output.

Leagility

____ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes.

Logistics

Which of the following does not appear on the balance sheet?

Net income

What is the formula for net profit margin?

Net profit divided by sales

Return on assets equals:

Net profit margin times asset turnover

____ provide effective ways to process organizational business data, to perform calculations, and to create documents.

Office automation systems

In a reverse auction, ____________.

One buyer invites bids from multiple sellers

The balance sheet reflects the assets, liabilities, and ____ at a given point in time.

Owners' equity

What concept refers to the storage of finished product and movement to the customer?

Physical distribution

___________ utility refers to having products available where they are needed by

Place

___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.

Possession

The ____________ is organized around 12 cross-enterprise operating and management processes.

Process Classification Framework

____ refers to the amount of output divided by the amount of input.

Productivity

What two logistics activities make the heaviest use of the Internet?

Purchasing and transportation

____ refers to satisfying current and emerging customer needs.

Relevancy

Which of the following is a common measure of organizational financial success?

Return on investment

With respect to net profit margin, the most relevant categories for logistics managers to consider are:

Sales, costs of goods sold, total expenses

The large increase in pirate attacks between 2008 and 2009 was due to a surge in attacks off the ____ coast

Somalia

____________ refers to being out of an item at the same time there is demand for it.

Stockout

____ collaborations offer the best opportunity for improving supply chain performance.

Strategic

____ combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.

Supply chain analytics

Three of the most prominent supply chain management frameworks are the Supply- Chain Operations Reference (SCOR) model, the Global Supply Chain Forum (GSCF) model, and the ____.

The Process Classification Framework (PCF)

What provides the framework for conducting return on assets analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?

The Strategic Profit Model SPM

The general idea behind ____ is that one company allows a specialist company to provide it with one or more logistics functions.

Third-party logistics

The current ratio is calculated by dividing ____ by ____.

Total current assets; total current liabilities

What is the formula for asset turnover?

Total sales divided by total assets

Which of the following is responsible for the security of the U.S. transportation system?

Transportation Security Administration

What has emerged as the most popular application of on-demand software (software- as-a-service)?

Transportation management systems

Which of the following is not one of the generic strategies that can be pursued by an organization, as identified by strategist Michael Porter?

Value enhancement

What concept refers supply chain?

Vertical integration

What is a fourth-party logistics provider?

a company that ensures that various 3PLs are working toward the relevant supply chain goals and objectives

Landed costs refer to:

a price that includes both the cost of the product plus transportation to the buyer

Which of the following is not a potential benefit of transportation management systems?

a. Fewer stockouts b. Reduced fuel consumption c. Decreased empty vehicle miles d. Reduced transportation expenditures

Contemporary supply chains should be fast and ____________.

agile

An organization's ability to respond to changes in demand with respect to volume and variety refers to ____.

agility

The most popular automatic identification system currently in use is ___________.

bar code scanners

Which of the following is an advantage of a decentralized logistics organization?

can be responsive to customer service requirements

A ____ logistics organization implies that the corporation maintains a single logistics department that administers the related activities for the entire company from the home office.

centralized

A primary advantage of ____ logistics is its relative efficiency, whereas a primary advantage of ____ logistics is its customer responsiveness.

centralized; decentralized

How do data and information differ?

data are simply facts; information is a body of facts in a format suitable for decision making

A ____ logistics organization means that logistics-related decisions are made separately at the divisional or product group level.

decentralized

The current Global Supply Chain Forum (GSCF) model identifies ____________ key processes associated with supply chain management.

eight

In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.

fragmented

One problem with a ____ logistics structure is that because logistics activities are scattered throughout the firm, they likely remain subservient to the objectives of the department in which they are housed.

fragmented

A key attribute of network organizational design is a shift from ____ to ____.

function; process

Which of the following is an advantage of a centralized logistics organization?

good opportunities for freight consolidation

Which of the following is a way to improve to productivity?

increase output while holding input constant

Productivity improvement efforts in logistics are often directed towards ____.

increasing output while holding input constant

There are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the following is not one of them?

intensive distribution

The origins of contemporary ERP systems can be traced back to logistics and ____________.

manufacturing

Every customer getting the same type and levels of logistics service refers to

mass logistics

The movement and storage of materials into a firm refers to:

materials management

A ____ organizational design attempts to create an organization that is responsive to the parameters of the contemporary business environment.

network

With respect to the design of warehouses, one suggestion for energy savings is to make sure that dock doors are not placed on the ____ side of a building.

north

Although nearly any organization can be part of a supply chain, supply chain management requires:

overt management efforts by the organizations in a supply chain

Which channel covers the movement of title to the goods?

ownership

Positive, long-term relationships between supply chain participants refer to:

partnerships

The materials stolen in ____ are usually for the employee's own use.

pilferage

What is the primary difference between pilferage and theft?

pilferage involves a firm's own employees, while theft involves efforts from outsiders

Automatic identification systems are an essential component in ____________.

point-of-sale systems

The variability in demand orders among supply chain participants:

refers to the bullwhip effect

The primary advantage of ____________ is that it enables a firm to test the feasibility of proposed changes at relatively little expense.

simulation

What is a perfect order?

simultaneous achievement of relevant customer metrics

In a(n) ____ approach, all relevant software applications are provided by a single vendor.

single integrator

A cost trade-off is a situation where:

some costs increase and some costs decrease

The most relevant general software package for logisticians is:

spreadsheets

A ____________ encompasses all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows.

supply chain

Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:

supply chain collaboration

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.

systems

A ____ is a device used to monitor and control the actions taken by a driver and his/her vehicle.

tachograph

Supply chain collaboration can be classified as transnational, strategic, or ____ in nature.

tactical information sharing

According to the text, ____________ has been at the center of the changes taking place that affect the supply chain.

technology

A common interface between production and logistics involves:

the length of production runs

Logistics clearly contributes to ___________ and ___________ utility.

time; place

What is the most important purpose of warehouse work rules?

to keep employees from engaging in unproductive and potentially destructive activities

Logistics managers use the ___________ approach to coordinate inbound logistics, materials management, and physical distribution in a cost efficient manner.

total cost

The most costly logistics activity in many firms is ____________.

transportation management

Transportation accounts for approximately ____ of all petroleum consumption in the United States.

two-thirds

In a ____ logistics structure, multiple logistics activities are combined into, and managed as, a single department.

unified

The two areas in logistics systems where most energy costs occur are ____ and ____.

warehousing; transportation

What has emerged as the measuring stock for logistics information technology in the century 21st?

wireless communication