Logistics test one

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In logistics, processing deals primarily with which of the following? a. The flow of information and the visibility of shipments during movement and storage. b. The processing of payments quickly to improve cash flow. c. Reducing waste. d. Managing paperwork. e. None of the above

a. The flow of information and the visibility of shipments during movement and storage.

In the 5 S's, which of the folloiwng is another way to say simplify? a. There is a place for everything, and everything in its place. b. Eliminate the things you are not using. c. Standardize and develop repeatable processes. d. Eliminate unnecessary movement waste.

a. There is a place for everything, and everything in its place.

Because product returns are typically much higher with online sales than with in-store sales, online retailers should: a. Understand why customers return products and develop strategies for reducing the number of returns. b. Limit returns for online items or charge hefty restocking fees. c. Find ways to drive customers into shopping at bricks-and-mortar stores. d. All of the above

a. Understand why customers return products and develop strategies for reducing the number of returns.

Which of the following is true regarding the tradeoff between transportation costs and service? a. We should use whatever transportation is required to achieve the customer's desired service level. b. We should make the customer pay for transportation costs. c. As the money we spend on transportation goes up, our cost of lost sales generally goes down. d. It is always a good investment to spend more money on transport to achieve higher service levels.

a. We should use whatever transportation is required to achieve the customer's desired service level.

When considering logistics tradeoffs and what type of service level to emphasize, your company should consider which of the following? a. What are the most important service characteristics to its customers. b. How to be competitive based on price. c. There are really no such thing as tradeoffs. d. None of the above

a. What are the most important service characteristics to its customers.

Consider the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. Sales price of the item is $12 with a 20% profit margin. The average order is 50. If you experience 12 stockouts per year, how much can you invest to eliminate stockouts? a. $7,209 b. $86,518 c. $146,544 d. $124,212 e. None of the above

b. $86,518

Form utility is . . .? a. Related to having the right sizes available to fit a person's form. b. Can come from modifying a product to include multipacks or samples. c. Unrelated to logistics. d. Derives from marketing's product promotion.

b. Can come from modifying a product to include multipacks or samples.

Which of the following does NOT describe transportation waste? a. Moving things by a more expensive mode than the customer needs. b. Excess movement done by people. c. Transshipping orders. d. Buying things from distant locations instead of locally. e. All of the above f. Only A, C, and D

b. Excess movement done by people.

Service logistics are . . .? a. The basis for customer service, which is the heart of logistics b. Focused on all the people, facilities, and supplies in place to effectively deliver services to customers c. The resources (facilities, people, and infrastructures) used to organized, deliver, and execute an event from initial schedule through teardown and clean-up. d. All of the above

b. Focused on all the people, facilities, and supplies in place to effectively deliver services to customers

Time utility involves . . .? a. Getting things to a customer early, so they can get their projects completed sooner. b. Getting things to a customer exactly when needed. c. Reducing wasted time in the supply chain. d. All of the above

b. Getting things to a customer exactly when needed.

The amount of money that is spent on logistics in the U.S. economy in dollar terms . . . a. Is flat b. Has increased over time c. Has decreased over time d. Not enough information to answer this question

b. Has increased over time

Which of the following is NOT one of the eight wastes? a. Not utilizing staff talents b. Kaizen c. Inventory d. Defects

b. Kaizen

Events that have no history, yet they are considered possible and, with some speculation, can be assessed in terms of likelihood and potential impact might be called: a. Known-known b. Known-unknown c. Unknown-unknown d. Unknown-known e. "Freak events"

b. Known-unknown

The earthquake in 2011 that hit the coast of Japan caused some major problems for Toyota's production system allowing GM to regain the crown of being the number one car seller by volume. Which of the following was the lesson learned from this disaster? a. Toyota needs to focus on the customer value approach focusing on what people value. b. Managers must balance lean operations with resiliency. c. The control of activities to eliminate waste and improve cost drivers is critical. d. Toyota needs to focus on the distribution routes, from raw materials through consumption.

b. Managers must balance lean operations with resiliency.

What is the most efficient way a company can grow top-line profitably? a. Acquire new customers b. Retain and increase sales to existing customers c. Create new products d. Assess whether the economy is actually growing e. All of the above

b. Retain and increase sales to existing customers

In FMEA, you score risks based on which of the following? a. Immediacy, location, and severity b. Severity, probability, and detection c. Immediacy, magnitude, and amplitude d. Depth, breadth, and reach e. Failure, management, and easement ability

b. Severity, probability, and detection

Which of the following is not one of the 5 S's? a. Sustain b. Source c. Sort d. Sweep

b. Source

The waste of "waiting" refers to which of the ofllowing? a. Having excess inventory that is waiting to be processed. b. Staging orders to be shipped in advance of when they are needed. c. Unloading and reloading the same shipment to improve the cube utilization instead of planning in advance. d. An order that is received early by the customer and has to wait to be used.

b. Staging orders to be shipped in advance of when they are needed.

Which of the following are balanced supply chain metrics? a. The perfect order fulfillment b. Total supply chain cost c. Days of inventory outstanding d. Cash-to-Cash Cycle

b. Total supply chain cost

Which company served as the inspiration of lean principles ? a. Procter & Gamble b. Toyota c. IBM d. Samsung e. Motorola

b. Toyota

The largest category of spending within logistics costs in the U.S. today is . . . a. Inventory cost b. Trucking cost c. Air freight cost d. Administrative costs

b. Trucking cost

Which type of product is most likely to use a leagile supply chain? a. A standard product that does not vary across customers. b. A product that is unique from the ground up. c. A product that customers insist be in-stock and immediately available. d. A product that has small, yet important differences on the surface. e. A product the customers regard as "commodity" and purchase is based on low cost.

d. A product that has small, yet important differences on the surface.

The 5 S's approach represents which of the following? a. A way to organize any process b. A way to help you find and eliminate the eight wastes c. A way to guide kaizen events d. All of the above e. Only A and B

d. All of the above

What do we know about service failures? a. Statistics show that out-of-stock occurrences have reduced retailer's overall sales by four percent. b. Costs of stockouts are not shared equally among members of the supply chain. c. Calculating the true cost of a stockout is very difficult. d. All of the above

d. All of the above

Why would your company pursue a selective distribution strategy? a. Resource limitations b. Market constraints c. Product is only popular in specific geographic areas d. All of the above

d. All of the above

When considering product fragility, which of the following is NOT true? a. As fragility increases, so does transportation costs. b. As fragility increases, so does packaging cost. c. As fragility increases, so does warehousing cost. d. As fragility increases, so does pilferage cost.

d. As fragility increases, so does pilferage cost.

Which business strategy tends to drive (influence) all others? a. Logistics b. Production c. New Product Development d. Corporate e. Marketing

d. Corporate

Which distribution strategy seeks to achieve the greatest reach in the market such that the product could be accessed by the most people possible? a. Exclusive Distribution b. Exhaustive Distribution c. Central Distribution d. Intensive Distribution e. Selective Distribution

d. Intensive Distribution

When thinking about the various types of logistics, which of the following is true? a. There is very little in common from one type to the other. b. They are all virtually identical--only the names are changed. c. The book focuses on service logistics. d. Many of the key logistics principles we discuss are applicable to all of the various types of logistics.

d. Many of the key logistics principles we discuss are applicable to all of the various types of logistics.

The waste of motion is. . .? a. Movement of materials or information that does not add value. b. Paying for a more expensive mode of transport than your customer needs. c. Moving goods multiple times. d. Movement of people that does not add value. e. All of the above

d. Movement of people that does not add value.

The five S's . . .? a. Are an independent system to organize tools. b. Tell us there is no such thing as being too lean! c. Were invented by by Subaru as part of the Subaru philosophy. d. Remind us that resiliency matters. e. All of the above

d. Remind us that resiliency matters.

Which step in the risk management process involves actions taken to reduce or eliminate the risk factor? a. Risk identification b. Risk assessment c. Risk prioritization d. Risk mitigation e. Risk extension

d. Risk mitigation

In a risk classification matrix, with risks mapped according to likelihood and impact, those risks positioned where on the matrix call for immediate attention? a. Lower right corner b. In the center c. Lower left corner d. Upper right corner e. Upper left corner

d. Upper right corner

Good customer service leads to customer satisfaction and loyalty. What are the operational targets your logistics system needs to provide? a. Product availability b. Timely delivery c. Transparency d. Protection against disruption e. All of the above

e. All of the above

Transactional relationships . . .? a. Are cost driven and arms length b. Are vital to profitability c. Need and expect efficient service d. Do not have resources to waste with inefficient transactions, processes, processes, or partners e. All of the above

e. All of the above

What does Activity-based Costing do for organizations? a. Gives accurate view of the costs of service. b. Enables companies to build individual customer P&L statements. c. Creates a synergy between customers and suppliers. d. Develops a history of transactions for the customer. e. Both A and B

e. Both A and B

Which of the following are steps in ABC classification (i.e., applying Pareto's Law)? a. Classify companies by sales b. Provide stewardship for each customer c. Modify classifications based on strategic issues d. Restructure companies based on size e. Both A and C

e. Both A and C

One concern related to logistics metrics is . . .? a. They may conflict with the goals of other functional areas. b. There are no standards whatsoever in terms of how they are calculated. c. They tend to be narrowly focused on operational performance rather than financial outcomes. d. All of the above e. Only A and C

e. Only A and C

Achieving logistics' major goals requires metrics that focus on (but may not be limited to) which of the following? a. Asset management b. Cost management c. Productivity d. Revenue generation e. All of the above e. Only A, B, and C

e. Only A, B, and C

Which of the following is a reason that it is better to hold raw materials than finished goods? a. It is NOT better to hold raw material than finished goods. b. Raw material is less valuable, reducing financial risk. c. Raw materials can be combined to make a variety of items to meet demand. d. All of the above e. Only B and C

e. Only B and C

Listening to employee suggestions for improvement is an example of which 5S methodology for eliminating waste? a. Sort b. Simplify c. Sweep d. Standardize e. Sustain

e. Sustain

Once a company knows that a customer is no longer profitable, which of the folloiwng are appropriate options? a. Collaborate to reduce costs of service b. Raise prices c. Fire the customer d. Keep the status quo e. All of the above f. Only A, B, and C

f. Only A, B, and C

What are some data management tools to assure product availability? a. Point of sales information b. Integrated business planning c. Predictive analytics d. ERP systems e. All of the above f. Only A, B, and C

f. Only A, B, and C

What are the benefits of fair and efficient relationships with transactional customers? a. Customers are more forgiving of the occasional service failure b. Good relations lead to repeat business c. Transactional customers may become strategic partners d. Increase complaints and damage reputation e. All of the above f. Only A, B, and C

f. Only A, B, and C

In supply chain strategy, which of the following is true? a. "Pushes" are driven by forecast, while "pull" is driven by actual demand b. "Pushes" are driven by Marketing, while "pull" is driven by logistics c. "Pushes" are driven by Logistics, while "pull" is driven by market forecasts. d. What drives "pushes" and "pull" is driven by the specific industry. e. Only A, B and D

a. "Pushes" are driven by forecast, while "pull" is driven by actual demand

Some companies resolve service failures so successfully that customer satisfaction actually increases following a disruption. This is known as the . . . a. "Service recovery paradox" b. "Emergency relief system" c. "Customer satisfaction paradigm" d. "Efficiency planning"

a. "Service recovery paradox"

Bada Bing Bada Boom Candy, Inc. supplies the milk chocolate to candy makers throughout the mid-western states. After tracking your customers' behaviors, you find that 43% of these companies like your chocolate enough that they will wait until you can fill the order--even if it means a delay. Twenty-nine percent need the chocolate for immediate production and will make a one-time buy somewhere else. They realize that your product is superior and will come back. However, 28% of your customers get put off by not having the product and will permanently switch to another supplier. • The added processes and delivery fees to get late deliveries out run around $500 per incident. • An average chocolate order is about 200 lbs. One pound of chocolate is $22. The sales price includes a 13% mark up. • The lifetime stream of profits for a customer who permanently defects is estimated to be $254,096. What is the expected cost per stockout, rounded to the nearest dollar? a. $71,528.00 b. $78,768.00 c. $75,344.00 d. $66,997.00 e. None of the above

a. $71,528.00

Kanbans provide which of the following? a. A visual signal of consumption and the need to replenish supply. b. Less time for suppliers to react to demand changes. c. Financial incentives for customers to reduce inventory. d. Support for economies of scale in procurement. e. Salespeople with insights on the most profitable products to sell.

a. A visual signal of consumption and the need to replenish supply.

A Kaizen event is . . .? a. An event you hold to introduce lean principles in order to improve processes. b. A specific methodology used to introduce the idea of the eight wastes. c. An important method for improving organizational sustainability. d. All of the above

a. An event you hold to introduce lean principles in order to improve processes

A tool commonly used to identify, evaluate, and prioritize mistakes and problems that can occur in a business is called: a. Failure mode effects analysis b. Hotspot identification c. Radar mapping d. Risk projection analysis e. 5S analysis

a. Failure mode effects analysis

In order to be effective, leagile supply chains rely on which of the following? a. Form postponement of goods b. Excellent forecast of end customer demand c. Limited product variety d. All of the above e. Only A and B

a. Form postponement of goods

In considering the eight wastes, which of the following is an example of overproduction? a. Giving the customer more product than ordered. b. Holding excess inventory. c. Cleaning more frequently than needed. d. None of the above

a. Giving the customer more product than ordered.

In the 1980s, the largest category of logistics spend was . . . a. Inventory carrying cost b. Trucking cost c. Air freight cost d. Administrative costs

a. Inventory carrying cost

What are the Four "P's" of Marketing? a. Product, Price, Promotion, Place b. People, Promotion, Products, Profit c. Promotion, Paper, Press, Prestige d. Product, Promotion, Profit, Payment e. Places, People, Promotion, Passion

a. Product, Price, Promotion, Place

In India, improved logistics has . . . a. Raised the standard of living for rural farmers. b. Virtually eliminated poverty. c. Eliminated hunger. d. All of the above

a. Raised the standard of living for rural farmers.

Which of the following is not one of the seven rights of logistics? a. Right transportation b. Right place c. Right cost d. Right time d. None of the above; that is, they are all part of the seven rights

a. Right transportation

As you get close to 100% customer service level in logistics, which of the following occurs? a. The costs of service improvements rise quickly. b. Increased sales nearly always offset the additional costs. c. You will make more money. d. All of the above e. B and C

a. The costs of service improvements rise quickly.

Value can only be assessed from the standpoint of _______________? a. The eyes of the customer b. Shareholder value c. A company's stock price d. None of the above

a. The eyes of the customer

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? Nistevo Collaborative Transportation Management (CTM) InterLoad Share the Ship National Transportation Exchange

Collaborative Transportation Management (CTM)

A fast, reliable mode of transportation will always provide the lowest total logistics cost. TrueFalse

False

Quantitative forecasting approaches are driven by experience and expertise rather than by data. TrueFalse

False

SmartWay does not provide guidance and resources to other countries that would like to develop freight sustainability programs. TrueFalse

False

The U.S. railroad industry currently operates more miles of track than ever before. TrueFalse

False

The United States faces unprecedented levels of unemployment among truck drivers. TrueFalse

False

The sustainability Consortium is part of the U.S. Environmental Protection Agency. TrueFalse

False

Trade-offs are an important consideration in sustainability issues. TrueFalse

False

When calculating forecasts using different forecasting techniques, you should get the same forecast. TrueFalse

False

A SmartWay best-practice award can enhance a company's sustainability credentials. TrueFalse

True

A single MSE calculation doesn't give us a whole lot of information. We have to compare it to previous MSE's or industry benchmarks. TrueFalse

True

Although your forecast is almost certainly wrong, using a forecast to help make logistics decisions is better than being blind. TrueFalse

True

If you want to catch new trends quickly and you are using exponential smoothing, your alpha should be larger than .5. TrueFalse

True

If your demand shifts are temporary and non-representative, you should place minimal weight on your previous period's actual demand. TrueFalse

True

Most distribution centers contribute to a company's greenhouse gas emissions through the use of electricity to run the distribution center. TrueFalse

True

Multi-criteria analysis is an intuitive tool that helps you select the right carrier for transporting goods. One of the strengths of multi-criteria analysis is that it enables you to "quantify" qualitative decisions. TrueFalse

True

Multi-criteria analysis is an intuitive tool that helps you select the right carrier for transporting goods. One of the weaknesses of multi-criteria analysis is that you "quantify" qualitative decisions. TrueFalse

True

The main goal of the S&OP business review meeting is to align plans and decisions with overall business goals TrueFalse

True

Transportation costs are unique because they are u-shaped. TrueFalse

True

Variability in transit times can be a major contributor to variation in order lead times. TrueFalse

True

Which transportation mode typically carries bulk food, mining, and chemicals? This mode also rates highest in the capacity/capability category with its ability to carry the largest variety of goods and materials in massive quantities. Truck Pipeline Water Air Rail

Water

Given the following information, Sales = $100,000,000 COGS = $50,000.000 Other Expenses = $41,000,000 Pre-tax profit = $9,000,000 Logistics costs are 10% of sales. How much would you have to decrease your logistics costs to increase Pre-tax profit by 10% a. $900,000 b. $750,000 c. $1,000,000 d. $800,000 e. None of the above

a. $900,000

What analysis should you perform to design the right product support requirements? a. Compare the costs of service options to the costs angering customers b. Compare the costs of angering customers to the costs of order fulfillment c. Compare the costs of service options to the costs of order fulfillment d. Compare the costs of order fulfillment to the costs of a viable reverse logistics system e. None of the above

a. Compare the costs of service options to the costs angering customers

Scope 1 emissions are defined as . . .? a. Direct GHG emissions from sources that are owned or controlled by the entity. b. Emissions from developed countries. c. Emissions by a company's first tier (scope 1) suppliers. d. Emissions from transporting products and people.

a. Direct GHG emissions from sources that are owned or controlled by the entity.

Design for Environment (DfE) . . .? a. Encourages product designers to take a much more holistic picture of environmental impact. b. Is of limited value because people misuse products anyway. c. Is a commonly used method for designing delivery routes. d. All of the above

a. Encourages product designers to take a much more holistic picture of environmental impact.

Supply chain wide metrics are distinguished by which of the following? a. End-to-end information sharing b. Fast and easy to implement c. Very common in practice d. All of the above

a. End-to-end information sharing

Which INCOTERM places the most responsibility and liability for transportation with the buyer? a. Ex Works b. Free Alongside Ship c. Free on Board d. Cost & Freight e. Delivery Duty Paid

a. Ex Works

In logistics, processing deals primarily with which of the following? a. Flow of information and the visibility of shipments during movement and storage b. Processing payments quickly to improve cash flow c. Reducing waste d. Managing paperwork e. None of the above

a. Flow of information and the visibility of shipments during movement and storage

What are the three flows of every order system? a. Information flow, physical flow, & financial flow b. Pillow flow, pahoehoe flow, & basaltic flow c. Supply flow, purchasing flow, & inventory flow d. Physical flow, purchasing flow, & information flow

a. Information flow, physical flow, & financial flow

When setting up a Multi-criteria analysis, why would you use the scale from 1-100 to define your scoring system? a. It gives more granularity and variability in the overall scores. b. You would be able to give points without skewing results. c. Both a and b d. You wouldn't--it is always better to score from 1 - 10

a. It gives more granularity and variability in the overall scores.

In regard to pursuing environmental transport practices, Walmart has done which of the following? a. Linked these to cost savings. b. Invested a great deal of money and increased its costs, but believes that it is worth it. c. Outsourced as much as possible so that it does not have to show the pollution as part of its footprint. d. All of the above

a. Linked these to cost savings.

__________ creates possession utility. a. Marketing b. Getting things where they are needed c. Logistics d. Supply chain management

a. Marketing

Which of the following is NOT one of the seven rights of logistics? a. Right transportation b. Right place c. Right cost d. Right time e. All of the above are part of the seven rights

a. Right transportation

Which of the following do NOT apply to the SCOR model? a. SCOR is used by CEVA logistics. b. SCOR was started by the Supply Chain Council. c. SCOR provides standard measurements that allow for comparison among companies. d. SCOR focuses on supply chain activities.

a. SCOR is used by CEVA logistics.

What does S&OP stand for? a. Sales and Operations Planning b. Sales and Operations Procedures c. Sales and Oligopoly Planning d. Services and Operations Planning e. None of the above

a. Sales and Operations Planning

If a company has a very low profit margin, which of the following is true? a. Saving money in logistics will have a greater relative impact on profitability versus sales revenue than a company with a high profit margin. b. Your company should outsource logistics. c. Logistics cost is no more or less important than to a company with a very high profit margin. d. None of the above

a. Saving money in logistics will have a greater relative impact on profitability versus sales revenue than a company with a high profit margin.

Historically, if companies have focused on their emissions at all, the focus has been on which of the following? a. Scope 1 emissions b. Scope 2 emissions c. Scope 3 emissions d. All of the above

a. Scope 1 emissions

Which of the following logistics levers will affect your fixed assets on the balance sheet? a. Storage & Handling Equipment b. Facility financing c. Logistics administration d. On-time delivery

a. Storage & Handling Equipment

Integrated Business Planning (IBP) helps you align _______ & _______. a. Supply, demand b. Price, location c. Safety stock, inventory d. Suppliers, customers e. Cause, effect

a. Supply, demand

The margin side of the strategic profit model derives its financials from which of teh following? a. The Income Statement b. The Balance Sheet c. The financial statement d. The Strategic Profit Mode e. Both A and B

a. The Income Statement

Value can only be assessed from the standpoint of . . .? a. The eyes of the customer b. Shareholder value c. A company's stock price d. None of the above

a. The eyes of the customer

Which of the following are really company supply chain metrics in terms of what they actually measure? a. The perfect order fulfillment b. Total supply chain cost c. Accounts payable d. Total landed cost

a. The perfect order fulfillment

Which of the following transportation modes is characterized by the greatest (best) level of availability and flexibility in movement? a. Truck b. Pipeline c. Water d. Air e. Rail

a. 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? a. Unit train b. Dedicated carriage c. Amtrak d. Intercity rail e. Longer combination vehicles

a. Unit train

Companies are best able to reduce their transportation environmental footprint in ocean shipping by which of the following? a. Using slow-steaming methods b. Refusing to make any one-way shipments, so they have no empty backhauls. c. Moving away from containers to bulk shipping. d. Using smaller ships. e. All of the above

a. Using slow-steaming methods

Frito Lay used _______ to forge contracts with the right potato farmers to lock in enough supply to keep making potato chips--even when broader shortages arose a. Weather-forecasting software b. Financial forecasting c. Managerial forecasting d. New-age accounting software e. Technical negotiation skills

a. Weather-forecasting software

Forecasts are based on what two things? a. What has happened in the past and knowledge regarding how a system works b. Performance measurement and program management c. Specifications and sourcing strategy d. Fulfilling orders and creating a production plan e. None of the above

a. What has happened in the past and knowledge regarding how a system works

Which of the following definitions applies to the concept of "weighing out?" a. You reach the maximum weight of a shipment before you fill the transportation vehicle. b. You run out of pallets before the full order is staged for loading. The transportation vehicle is too heavy for the tractor to pull it. d. You run out of space in a transportation vehicle before you reach the weight limit. e. The transportation vehicle cannot access the loading dock due to the obstruction of other vehicles in the dock area. f. None of the above

a. You reach the maximum weight of a shipment before you fill the transportation vehicle.

If your fixed assets go down, and your sales revenue and profit go up, which of the following will happen? a. Your return on assets will increase. b. Your return on assets will decrease. c. There is no way to know without having actual dollar amounts. d. Your return on assets will be unchanged.

a. Your return on assets will increase.

Which of the folloiwng will happen if you decrease transportation cost but everything else stays the same? a. Your return on assets will increase. b. Your return on assets will decrease. c. There is no way to know without having actual dollar amounts. d. Your return on equity will be unchanged. e. None of the above

a. Your return on assets will increase.

__________ creates possession utility. a. Marketing b. Getting things where they are needed c. Logistics d. Supply chain management

a. marketing

Given the following forecast and demand information, what is the MAD? a. 12.54 b. 15.05 c. 4.60 d. 14.15 e. None of the above

b. 15.05

Freight transportation accounts for which of the following? a. 80% of the CO₂ emission in the world b. 8% of the CO₂ emission in the world c. Less pollution than from distribution and materials handling d. None of the above

b. 8% of the CO₂ emission in the world

If your profit margins are 5%, the profit leverage affect tells you which of the following? a. A dollar saved in logistics is the same as $200 sales increase. b. A dollar saved in logistics will have the same impact on the company as a $20 sales increase. c. A penny saved is a penny earned. d. A dollar saved in logistics has the same impact on profit as $5 increase in sales revenue.

b. A dollar saved in logistics will have the same impact on the company as a $20 sales increase.

Which combination of modes is not likely to be a frequnelty used intermodal option? a. Air-truck b. Air-water c. Rail-water d. Truck-rail e. Water-truck

b. Air-water

Which of the following is a primary challenge for air cargo carriers serving the U.S.? a. Competing with passenger airlines for qualified pilots. b. Balancing the flow of freight between origin/destination locations. c. Finding sufficient equipment at a reasonable price. d. Adhering to increasingly demanding economic regulations. e. Competing for landing slots at major international airports.

b. Balancing the flow of freight between origin/destination locations.

Which transportation document serves as a receipt for a shipment? a. Proof of purchase b. Bill of Lading c. Customs declaration d. Shipping manifest e. Letter of credit

b. Bill of Lading

The six phases of the product lifecycle include which of the following? a. Design, development and testing, manufacturing, distribution, use, disposal. b. Design, raw material processing and extraction, manufacturing, packaging and distribution, product use, end-of-life management. c. Design, contract manufacturing, distribution and shipping, sales and use, return, recovery. d. Design, material purchasing, manufacturing, packaging and distribution, product use, disposal.

b. Design, raw material processing and extraction, manufacturing, packaging and distribution, product use, end-of-life management.

With respect to order fulfillment, if you want to earn _______________, you need to pay attention to ______________. a. Respect, your boss. b. Follow-on business, post-sales customer service. c. Win, to the losing team d. Product support, to all the spare parts. e. None of the above

b. Follow-on business, post-sales customer service.

LEED certification . . .? a. Is an award given to industry "leaders." b. Is a way to pursue sustainable building practices that can be incorporated into distribution centers. c. Involves tracking transportation and fuel usage to receive EPA certification. d. Is awarded to products that have received "lifecycle environmental and emissions designations."

b. Is a way to pursue sustainable building practices that can be incorporated into distribution centers.

If a company decides to outsource its transportation to a third-part, which of the following would you expect? a. Its assets will increase on its balance sheet. b. Its assets will decrease on its balance sheet. c. Its income will increase. d. None of the above

b. Its assets will decrease on its balance sheet

The concept of continuous moves in trucking is meant to do which of the following? a. Move freight faster b. Make truck-driving jobs more attractive c. Trick regulators d. All of the above e. None of the above

b. Make truck-driving jobs more attractive

The concept of relay networks in trucking is meant to do which of the following? a. Move freight faster b. Make truck-driving jobs more attractive c. Trick regulators d. All of the above e. None of the above

b. Make truck-driving jobs more attractive

Which decision supported by the TMS automates carrier selections? a. Total Network and Lane Design b. Mode and Carrier Selection c. Service Negotiations d. Service Evaluation e. Dock and Mobile Decisions

b. Mode and Carrier Selection

Which mode of transportation is the slowest, most difficult to access, and limited in terms of products it can carry, though it offers the most reliable service? a. Truck b. Pipeline c. Water d. Air e. Rail

b. Pipeline

Sometimes, you simply can't increase manufacturing capacity, speed up logistics, or solve a supply shortage in your efforts to meet customer needs. Your only real option is to work with marketing to persuade customers to shift their demand. What are the two levers of influence to shift that demand? a. Price, marketing b. Price, lead time c. Lead time, location d. All of the above e. None of the above

b. Price, lead time

Which form of carriage refers to a shipper that owns and operates its own fleet of transportation vehicles? a. Diversified carrier b. Private carrier c. Distinguished carrier e. Common carrier f. Exempt carrier

b. Private carrier

From a logistics perspective, what three things should be considered when providing post-sales customer service? a. Spare parts, returns, & price b. Product support, spare parts, & returns c. Returns, spare parts, and price d. Price, returns, and promotion

b. Product support, spare parts, & returns

In order for a company to win the "first moment of truth" it needs to have the right _______ at the right _______ at the right _______ at the lowest possible _______. a. Niche, market, time, fare b. Product, place, time, cost c. Product, location, view, risk d. Niche, place, time, cost e. None of the above

b. Product, place, time, cost

A metric is consistent when . . .? a. You measure it at the same time each time. b. The metric is used consistently over time & situations, so it is meaningful for comparison. c. It is measured in currency. d. People agree it is a good metric. e. All of the above

b. The metric is used consistently over time & situations, so it is meaningful for comparison.

Why are railroad companies in the eastern U.S. expanding capacity dramatically? a. To keep up with growth in the road network . b. To carry more freight arriving in the U.S. from an expanded Panama Canal. c. To support freight arriving from the U.S. west coast. d. To accommodate the market demands for high-speed transportation. e. To provide for both freight and passenger transportation in the region.

b. To carry more freight arriving in the U.S. from an expanded Panama Canal

Why did the United Nations adopt an "International Standard for Determing Greenhouse Gas Emissions"? a. To define statements of what should be done in the business. b. To help organizations speak a common language. c. To create a seamless integration from one organization to another. d. The UN did not adopt the "International Standard for Determing Greenhouse Gas Emissions."

b. To help organizations speak a common language.

After calculating results from your Multi-criteria analysis by multiplying the score for each criterion by the associated weight and adding up the results for all the criteria. . . a. You then have to subtract each of the modes together b. You can then begin to make decisions about which transportation carrier to use. c. You then need to identify the most critical criteria d. None of the above

b. You can then begin to make decisions about which transportation carrier to use.

You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you best forecast. What would your 3 period moving average forecast be for week 22? Week Demand 12 1317 13 1307 14 1261 15 1258 16 1267 17 1256 18 1268 19 1277 20 1277 21 1297 a. 1336 b. 1375 c. 1284 d. 1468 e. None of the above

c. 1284

We use the profit leverage effect to show top management and others that . . .? a. Logistics cost savings is pretty low, so we need to make it look good. b. We are pretty good at basic math and financial statements. c. A dollar saved in logistics can have a multiplicative effect on profitability. d. We have a college degree. e. All of the above

c. A dollar saved in logistics can have a multiplicative effect on profitability.

What is believed to be the most important part of international transportation, according to many experts? a. Tracking the currency exchange rate b. Knowing customs personnel c. Accuracy in documentation d. Knowing the language of the destination country e. Hiring the right drayage company

c. Accuracy in documentation

The fastest form of transportation is _____________, and the most polluting form of transportation is ___________? a. Air, motor b. Motor, water c. Air, air d. Motor, motor e. Air, water

c. Air, air

If you have a major reduction in inventory and stop renting space in an outsourced distribution center, which of the following would you expect? a. Your income statement will be affected. b. Your balance sheet will be affected. c. Both your income statement and balance sheet will be affected. d. Neither your income statement or balance sheet will be affected.

c. Both your income statement and balance sheet will be affected.

S&OP can help you smooth out the handoffs among different functions across your company. S&OP also helps you move from a traditional annual planning process to a _______ re-planning process. a. Pre-determined b. Current c. Continuous d. Marketing e. None of the above

c. Continuous

CPFR helps trading partners work together to build a single, agreed-upon forecast. CPFR argues that someone already knows what your company's sales will be. Who is that someone? a. Upper management b. Company forecasters c. Customers d. Suppliers e. All of the above

c. Customers

Design is important to sustainability because . . .? a. If we don't design sustainable products to be pretty, people won't buy them. b. The design process can use a great deal of natural resources and generate much waste through prototyping. c. Decisions we make in the design phase affect the sustainability at all future phases of the product lifecycle. d. The design phase has no impact on logistics sustainability issues.

c. Decisions we make in the design phase affect the sustainability at all future phases of the product lifecycle.

Designing for cradle to cradle is . . .? a. The same as design for cradle to grave. b. A concept that is so futuristic is has not yet been implemented. c. Designing with the thought of reusing every aspect of the product possible at the end of the product life. d. All of the above

c. Designing with the thought of reusing every aspect

A company that chooses to arrange for the transportation of products it buys from a supplier--and to pay for these services--would elect for which shipping terms? a. FOB-origin/prepaid b. FOB-destination c. FOB-origin/collect d. FOB-destination/collect e. FOB-origin/allowed

c. FOB-origin/collect

Alibaba's strategy for dealing with its increased logistics needs is . . .? a. Buy more transportation assets to build capacity. b. Outsource logistics because it is not its core competency. c. Form equity relationships with organizations that are already good at logistics and work with them. d. All of the above

c. Form equity relationships with organizations that are already good at logistics and work with them.

What of the following are sustainability initiatives that are mentioned in the textbook? a. Carbon monoxide poisoning and greenhouse gas protocol b. Sustainability consortium and carbon monoxide poisoning c. Greenhouse gas protocol and sustainability consortium d. I didn't read the chapter. So, I'm going to say none of the above.

c. Greenhouse gas protocol and sustainability consortium

According to the text, BMW's decision to use themoplastic polymers for the side panels for the 6 series was a decision based on using what type of analysis? a. Physical capacity analysis b. Market analysis c. Life-cycle analysis d. None of the above

c. Life-cycle analysis

What is a tradeoff of consolidating orders to save costs? a. Faster inventory turns b. Reduced forecast error c. Longer order cycle lead times d. Better inventory positioning e. None of the above

c. Longer order cycle lead times

How good is a multi-criteria analysis? a. It is an average carrier selection tool. b. It it fool-proof analysis. c. Only as good as the information you put in. d. It actually is not a very good tool to use for carrier selection.

c. Only as good as the information you put in.

With respect to order fulfillment, which of the following provides the best way to earn customer loyalty? a. Offereing the lowest costs b. Using the best transportation service despite costs c. Providing exceptional after-sales service d. Using 3-D scanners and 3-D printers

c. Providing exceptional after-sales service

Which of the following will NOT happen if transportation costs are reduced? a. Net Income Increases b. Total Operating Costs Decrease c. Return on Assets Decreases d. Transportation as % of Sales Decreases

c. Return on Assets Decreases

Which of the following items is a product-related transportation cost factor? a. The location of markets b. The level of transportation competition c. The stowability of products d. The balance of freight traffic e. Whether a shipment is domestic or international in destination

c. The stowability of products

Which of the following statements is true? a. There is not a strong relationship between which transportation modes are the most expensive and which are the most polluting. b. There is not a strong relationship between the modes that are fastest and those that are the most polluting. c. There is a direct relationship (correlation) between the cost of the transportation mode and the amount of GHG it emits. d. All modes are similar in their pollution per ton mile

c. There is a direct relationship (correlation) between the cost of the transportation mode and the amount of GHG it emits.

Which kind of transportation service provider provides convenient door-to-door service between two locations and is capable of carrying most any form of freight? a. Air carrier b. Pipeline carrier c. Truckload carrier d. Railroad carrier e. Less-than-truckload carrier

c. Truckload carrier

Which mode faces intense competition from rail for dry bulk commodities and pipelines for oil and petroleum products? a. Motor b. Truck-Rail Intermodal c. Water d. Water-Pipeline Intermodal e. Air

c. Water

When loading the vehicle for the final physical activity of the order process. You want to make sure that the vehicle is both ______________ and _____________. a. Cleaned, invoiced b. Installed, cubed out c. Weighed, cubed out d. Weighed, invoiced

c. Weighed, cubed out

A $100 dollar savings in logistics costs for a firm with a contribution margin of 10% has the same impact on profit as how large of an increase in sales revenue? a. $100 b. $10 c. $10,000 d. $1,000 e. It depends

d. $1,000

Among the five modes of transportation, roughly what percentage of domestic revenues does the trucking industry represent? a. 50% b. 60% c. 70% d. 80% e. 90%

d. 80%

What is The Sustainability Consortium? a. A place of formal communication where two or more people come together to seek mutual agreement over an issue. b. Definitive statements of what should be done in the business. c. The process related to the storage and movement of final product. d. A initiative by a group of companies that has developed over 100 category sustainability profiles.

d. A initiative by a group of companies that has developed over 100 category sustainability profiles

A company's revenue can be affected by which of the following? a. Order-fill rate b. Order cycle time c. Perfect-order delivery performance d. All of the above e. Only A and B

d. All of the above

According to the book, how did First Solar improve operating and strategic performance, allowing them to be more successful in the marketplace? a. By adopting a software tool that enabled "what if" analysis of potential sales. b. By implementing RapidResponse as their single demand planning tool. c. By replacing siloed goals with common goals and objectives across functions of the organization. d. All of the above e. Only A and C

d. All of the above

SmartWay certification . . .? a. Signals to companies that an organization is focused on reducing the environmental footprint of its transportation. b. Is increasingly becoming a requirement as companies choose their freight transportation carriers. c. Requires that carriers track their freight movements in order to assess their emissions. d. All of the above

d. All of the above

Under which circumstances would you use a qualitative forecast? a. Domain knowledge is critical b. Pertinent data is scarce c. You have access to qualified key informants d. All of the above e. Only A and B

d. All of the above

What are some of the benefits of a membership in the Smartway program? a. Access to tools that help track emissions. b. Access to tools to select the best equpment to reduce fuel use. c. Access to tools to help improve driver behavior. d. All of the above

d. All of the above

Which of the following are good habits for drivers to use to improve their fuel economy and reduce their emissions? a. Avoid sudden acceleration b. Plan your trips to avoid congested driving periods c. Drive 55 MPH instead of 70 d. All of the above e. Only A and B

d. All of the above

Which of the following is a scope 1, 2 or 3 emission? a. Emissions your company directly produce b. Emissions from purchased energy c. Emissions from everything else in the organization and its supply chain d. All of the above e. Only A and B

d. All of the above

Which of the following is/are part of the five monthly review meetings for the S&OP planning process? a. Product management review b. Integrated reconciliation c. Demand review d. All of the above e. Only A and C

d. All of the above

Which of the following statements is true about economies-of-scale experienced in transportation? a. Transportation cost increases but at a decreasing rate with each additional mile covered. b. Transportation cost increases but at a decreasing rate with each additional unit added to a shipment. c. Transportation cost increases but at a decreasing rate with each additional pound (unit of weight) added to a shipment. d. All of the above e. Only B and C

d. All of the above

Which of the following was a result from the partnership bewteen Pearl Jam and UPS in developing a more environmentally friendly way to move the band's equipment? a. Less pollution b. More efficient c. Switched from truck to rail d. All of the above e. None of the above; that is, Pearl Jam partnered with Fed Ex

d. All of the above

Your company's revenues are directly affected by which of the following? a. Order fill rate b. Order cycle time c. Delivery performance d. All of the above e. None of the above

d. All of the above

If you move a shipment from point A to point B, the subsequent movement from point B back to point A is most commonly referred to as the ____________? a. Linehaul movement b. Reciprocal movement c. Flipside movement d. Backhaul movement e. Comeback movement

d. Backhaul movement

Top management is held accountable for which of the following metrics or indicators? a. Asset utilization b. Total supply chain cost c. Revenue d. Both A and C

d. Both A and C

After Honda completed a scope 3 emission analysis, what implications were found? a. Honda needs to design cars that can get up to 100 MPH. b. Honda needs to design cars with better gas mileage. c. Honda needs to help people who drive their cars build fuel-economizing habits. d. Both B and C

d. Both B and C

What does CPFR stand for? a. Collaborative Planning, Featuring, and Replenishment b. Collaborative Prospects, Forecasting, and Replenishment c. Coercive Planning, Forecasting, and Replenishment d. Collaborative Planning, Forecasting, and Replenishment e. Collaborative Planning, Forecasting, and Reinvestment

d. Collaborative Planning, Forecasting, and Replenishment

Chapter 7 introduces several costs that influence the determination of the proper number of distribution locations a firm needs to serve its customer base. Which one of the following is an opportunity cost associated with that decision? a. Warehouse costs b. Inventory costs c. Transportation costs d. Cost of poor service e. Workers' compensation costs

d. Cost of poor service

Which shipping term applies to an arrangement where a seller arranges for transportation to a buyer and pays the carrier, but then invoices the buyer for the transportation fees? a. FOB-origin/prepaid b. FOB-destination/prepaid and allowed c. FOB-origin/collect d. FOB-destination/prepaid and charged back e. FOB-origin/allowed

d. FOB-destination/prepaid and charged back

If you move a shipment from point A to point B, that outbound movement is referred to as the __________? a. Linehaul movement b. Original movement c. Flipside movement d. Fronthaul movement e. Outward movement

d. Fronthaul movement

Which of the following is NOT a goal of life cycle analysis? a. Save energy and raw materials where possible. b. Keep emissions to an absolute minimum. c. Take preventative steps to avoid or reduce the volume of waste. d. Get customers to replace their products more frequently since they are environmentally friendly products.

d. Get customers to replace their products more frequently since they are environmentally friendly products.

How does a less-than-truckload (LTL) motor operation differ primarily from a truckload (TL) operation? a. LTL carriers only provide short-distance service. b. LTL carriers do not use full-size trailers like truckload operations. c. LTL carriers usually provide service without re-handling the freight. d. LTL operations require several terminal locations for extensive coverage. e. LTL operations require shippers to drop off their loads at the carrier's terminal.

d. LTL operations require several terminal locations for extensive coverage.

When measuring forecast error, which forecasting error expresses the forecast error as a percentage from the mean? a. ME b. MSE c. MAD d. MAPE

d. MAPE

Of all of the transport-related infrastructure, which of the following is in good shape in the U.S.? a. Roads b. Bridges c. Dams d. None are in very good shape e. All are in very good shape

d. None are in very good shape

Of all of the transport-related infrastructure, which of the following is in the best shape in the US? a. Roads b. Bridges c. Dams d. None are in very good shape e. All are in very good shape

d. None are in very good shape

Which of the following logistics levers might affect revenue on the income statement? a. Inbound transportation b. Inventory obsolescence c. Inventory damage d. On-time delivery

d. On-time delivery

Which of the following activities in the order cycle is driven/managed by the supplier? a. Recognize need b. Purchase order preparation c. Order transmittal d. Order picking and staging e. None of the above

d. Order picking and staging

Which mode of transportation incurs medium fixed costs with high variable costs and is experiencing rapid growth though it still represents a very small market share as measured by tonne miles within the U.S. transportation market? a. Air b. Truck c. Pipeline d. Railroad e. Water

d. Railroad

Wade Miquelon, CFO at Walgreen, was "pressured to leave" the company despite shareholder return of 116% during his six-year tenure. What was the reason? a. His forecasting methods were not acceptable b. Employees complained about his leadership style c. The CEO felt threatened by his skill level d. Right decision makers were not talking to each other e. His family wanted more time with him

d. Right decision makers were not talking to each other

By linking _______ and _______, it is possible to synchronize order management across an entire supply chain. a. VMI and S&OP b. S&OP and TMS c. CPFR and TMS d. S&OP and CPFR e. VMI and S&OP

d. S&OP and CPFR

Which decision supported by the TMS creates carrier compliance reports? a. Total Network and Lane Design b. Mode and Carrier Selection c. Service Negotiations d. Service Evaluation e. Dock and Mobile Decisions

d. Service Evaluation

The lower per-mile costs enjoyed by transportation as a shipment covers greater distance is reflected in a concept referred to as the _____________? a. Pareto Principle b. Diminishing Return Concept c. Petrona Principle d. Tapering Principle e. Veranzano Principle

d. Tapering Principle

What must one keep in mind when determining the optimal logistics network design? a. That the logistics network integrates inbound and outbound shipments to achieve the lowest transportation cost. b. That information sharing can lead to a significant reduction in order errors. c. That outbound transportation costs exceed inbound costs as the number of warehouse facilities increase. d. That the logistics network demonstrating the least total cost is the one that considers the tradeoffs among warehousing, inventory, and transportation costs as well as the cost of poor service. e. That all geographic areas served by a firm should report to a single executive officer.

d. That the logistics network demonstrating the least total cost is the one that considers the tradeoffs among warehousing, inventory, and transportation costs as well as the cost of poor service.

Which intermodal option combines truck and rail transportation with conventional road trailers carried atop rail flatcars for the long (line-haul) segment of the transit? a. Trailer Park b. Birdyback c. Container on Flatcar d. Trailer on Flatcar e. Container Shipping

d. Trailer on Flatcar

Using a ___________________ to achieve more optimal loads and transportation plans can help save money and time a. Third party warehousing system b. Transportation engineering services c. Third-party logistics provider d. Transportation management system

d. Transportation management system

Since we know our forecast is going to be __________, we _______________. a. Good, Should forecast less frequently b. Wrong, Shouldn't forecast at all. c. Time consuming, Should forecast less frequently d. Wrong, Should frequently update it with the most current information

d. Wrong, Should frequently update it with the most current information

Which of the following definitions applies to the concept of "cubing out?" a. You reach the maximum weight of a shipment before completing an order. b. You run out of pallets before the full order is staged for loading. c. The transportation vehicle is too high to load without proper equipment. d. You run out of space in a transportation vehicle before you reach the weight limit. e. There is not enough space at the warehouse facility for a transportation vehicle. f. None of the above

d. You run out of space in a transportation vehicle before you reach the weight limit.

A transportation management system (TMS) can facilitate which of the following activities: a. Network analysis decisions b. Carrier performance evaluation c. Mode and carrier selection decisions d. Load planning and dock scheduling e. All of the above f. Only A and B

e. All of the above

To make CPFR successful, companies should engage in which of the following collaborative activities? a. Strategy & planning b. Demand & supply management c. Execution d. Analysis e. All of the above

e. All of the above

When you receive an order and don't have the product in stock, what are your options? a. Ship from a more-distant DC, incurring higher shipping costs. b. Wait for the product to be delivered from a supplier, and then ship the order. c. Fill a partial order with existing inventory, which increases handling costs. d. Drop ship directly from the factory e. All of the above f. Only b, c, & d

e. All of the above

Which initiative is likely to help in attracting and retaining drivers at a trucking company? a. Paying a higher wage. b. Getting the driver home each day. c. Hiring employees to load and unload trailers. d. Equipping the trucks with the latest technologies. e. All of the above

e. All of the above

Which of the following are characteristics of a good measure? a. Concise b. Consistent c. Aligned d. Easy to use (i.e., minimizes effort) e. All of the above f. Only A and B

e. All of the above

Which of the following are discussed during the S&OP supply review meeting? a. How to prevent stockouts b. Manufacturing capacity c. Supply chain inventory d. Logistics/DC capacity e. All of the above

e. All of the above

Which of the following factors should be considered when choosing the mode, class, and carrier for a shipment? a. Service requirements of the customer b. The cost of the transportation service c. The characteristics of the product d. The transit time offered by the carrier e. All of the above

e. All of the above

Which of the following is a benefit of a SmartWay membership? a. Technology reports b. Certification c. International reach of credibility d. Networking e. All of the above f. Only A, C, and D

e. 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? a. Multi-criteria analysis is intuitive. b. Multi-criteria analysis enables you to quantitify qualitative issues. c. Multi-criteria analysis is widely applicable; that is, you can use it whenever decision-making requires comparing options. d. Multi-criteria analysis invites you to do disciplined homwork so that you make a good decision. e. All of the above f. Only A, B, and C

e. All of the above

How does an agile supply chain seek to out-compete rivals that use other supply chain strategies? a. Through low cost. b. Through speed to market. c. By providing a limited assortment of supply with minimal inventory investment. d. By producing products on a regional basis to meet local needs. e. By accommodating customers' specific preferences in product characteristics.

e. By accommodating customers' specific preferences in product characteristics.

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? a. Nistevo b. National Transportation Exchange c. InterLoad d. Share the Ship e. Collaborative Transportation Management (CTM)

e. Collaborative Transportation Management (CTM)

Which INCOTERM places the most responsibility and liability for transportation with the seller? a. Ex Works b. Free Alongside Ship c. Free on Board d. Cost & Freight e. Delivery Duty Paid

e. Delivery Duty Paid

Which decision supported by the TMS processes orders and manages exception alerts? a. Total Network and Lane Design b. Mode and Carrier Selection c. Service Negotiations d. Service Evaluations e. Dock & Mobile Decisions

e. Dock & Mobile Decisions

When shipping by LTL carrier, which product is likely to have the highest freight classification? a. Wood furniture b. Paper c. Consumer electronics d. Bath towels e. Grocery items

e. Grocery items

Based on the principle of the profit leverage effect, which of the following is most accurate and important? a. Each dollar saved in logistics is worth about five times the amount of a sales dollar. b. Logistics cost saving is more important to the company than sales. c. A dollar saved in logistics can increase the company's gross margin. d. Logistics is about 5% of the value of sales for most companies. e. Logistics should emphasize the profit impact of logistics savings rather than just the dollar savings itself.

e. Logistics should emphasize the profit impact of logistics savings rather than just the dollar savings itself.

What share of overseas transportation occurs by ship, based on volume? a. Less than 10% b. 21 - 30% c. 50 - 60% d. 70 - 80% e. More than 90%

e. More than 90%

S&OP is used to bring the customer-facing and supply-facing sides of your company together to get everyone to agree to which of the following? a. The nature of the business environment b. A single forecast c. How to increase the profit margin d. All of the above e. Only A and B

e. Only A and B

A product lifecycle perspective regarding the environment argues which of the following? a. Companies should focus on different environmental issues during different parts of the product lifecycle. b. Environmental issues are not a concern until product decline. c. A focus on environmental issues at various stages of the product lifecycle can improve product profitability. d. All of the above e. Only A and C

e. Only A and C

Which of the following are intangible benefits of collaborative planning? a. Quicker implementation of new ideas b. Less time for strategic planning c. More trust d. All of the above e. Only A and C

e. Only A and C

Within a transportation mode, which of the following are true? a. The fuel efficiency and emissions among carriers can vary greatly. b. The fuel efficiency and emissions among carriers are very similar. c. Intermodal transport is a good way to get the benefits of multiple modes by combining modes d. All of the above e. Only A and C

e. Only A and C

Moving more freight from trucks to rails will provide which of the following benefits: a. Faster delivery b. Reduced road congestion c. More environmentally sustainable transportation d. All of the above e. Only B and C

e. Only B and C

Moving more freight from trucks to rails will provide which of the following benefits? a. Faster delivery b. Reduced road congestion c. More environmentally sustainable transportation d. All of the above e. Only B and C

e. Only B and C

Scenario analysis . . .? a. Is always a part of the DuPont formula. b. Allows us to model the impact of different decisions on our financial statements. c. Can help improve financial performance. d. All of the above e. Only B and C

e. Only B and C

Reasons for using a multi-criteria analysis for selecting a carrier include: a. It is very quick and easy b. It is quantifiable c. It provides a disciplined approach d. All of the above e. Only b and c

e. Only b and c

Customer alliances are built upon which of the following? a. Long-term focus b. Senior leadership involvement c. Cross-organizational teams are widely employed d. Shared risks and rewards e. Open communication and linked information systems f. All of the above

f. All of the above

If you add a new distribution point, what other activities/costs will be affected? a. Transportation b. Inventory c. Warehousing d. Order process e. Customer service f. All of the above

f. All of the above

Applying Pareto's Law via ABC classification of customers is a two step process. Which of the following are steps in the classification process? a. Sort customers based on sales (or profits) b. Sort custoemrs based on how well you get along with their buyers c. Reclassify customers based on strategic issues like access to scarce resources d. Reclassify customers based on what they buy from you e. Both B and C f. Both A and C

f. Both A and C

Which of the following are types of quantitative forecasting models? a. Time series models b. Expert panels c. Correlational models d. Delphi Technique e. All of the above f. Only A and C g. Only B and D

f. Only A and C

What are some of the biggest challenges to effective order management? a. Complexity b. Ownership c. Uncertainty d. Flexibility e. All of the above f. Only A, B, and C

f. Only A, B, and C

What is a perfect order?

on time, complete, damage free, correct invoice

When actual sales are greater than expected sales, this condition is called which of the following? a. An under-forecast b. Disappointing customers c. An overstock d. An over-forecast e. Discounted sales

a. An under-forecast

What is the key to fulfilling current customer needs while maximizing long-term value co-creation? a. Defining the appropriate relationship intensity b. Avoiding companies such as military equipment manufacturers and firms that harm the environment c. Launching hostile takeovers of companies with undervalued assets d. Reduce unit costs that arise from an increase in production.

a. Defining the appropriate relationship intensity

When a manufacturer bypasses intermediaries to serve retailers, it is employing what form of distribution? a. Direct distribution b. Selective distribution c. Exclusive distribution d. Express distribution e. Mass distribution

a. Direct distribution

Which of the following is NOT one of the core deliverables of a logistics system? a. Excess capacity b. Timely Delivery c. Transparency d. Product availability e. Product availability

a. Excess capacity

Which of the following is NOT a dimension of delivery that customers care about? a. Speed b. Cost c. Consistency d. Agility

b. Cost

Because of government regulations, a standardized trailer can weigh up to no more than 40,000 lbs. What type of tradeoff does this regulation affect? a. Logistics vs. the value of an item b. Logistics vs. Weight Density c. Logistics vs. Susceptibility to loss and damage d. All of the above

b. Logistics vs. Weight Density

Which business functions combine to form a company's supply chain strategy? a. Marketing, Production, Sales b. Logistics, Production, Supply Management c. Finance, Accounting, Marketing d. Sales, Logistics, Marketing e. New Product Development, Forecasting, Logistics

b. Logistics, Production, Supply Management

Which manufacturing strategy supports an agile supply chain strategy? a. Configure to order (CTO) b. Make to order (MTO) c. Ship to stock (STS) d. Assemble to order (ATO) e. Buy to order (BTO)

b. Make to order (MTO)

A company's risk-mitigation plan should be ________________________________. a. Done by distribution channels. b. Performed on a location-by-location basis. c. Left up to each part of your supply chain. d. Based on industry standards.

b. Performed on a location-by-location basis.

India's logistics problems have largely been solved. TrueFalse

False

What information drives supply chain execution in a planning based supply chain? a. Customer orders b. Supplier capacity c. Sales forecasts d. Cost advantages e. Promotional strategies

c. Sales forecasts

More developed economies . . . a. Rely on rail as a primary means of freight transport. b. Spend more on logistics because their products tend to be imported and shipped greater distance. c. Spend less on logistics costs because their logistics systems are more efficient. d. Logistics costs are unrelated to an economy's stage of development.

c. Spend less on logistics costs because their logistics systems are more efficient.

"Supermarket supply" refers to the which of the following? a. The inventory of grocery items stocked at a distribution center. b. Discounts that salespeople issue to buyers of merchandise. c. The assortment of goods that are pre-positioned in a supply chain. d. The incentives used in supply chains to balance demand over the course of the year. e. The weekly replenishment perishables in durable goods supply chains.

c. The assortment of goods that are pre-positioned in a supply chain.

Which of the following is true regarding the example of buying a Toyota? a. The delivery of cars to dealers is a pure make-to-stock approach. b. The delivery of cars to dealers is a pure make-to-order approach. c. The delivery of cars to dealers combines the make-to-stock and make-to -order approaches

c. The delivery of cars to dealers combines the make-to-stock and make-to -order approaches

Which of the following is a key tool for performing customer profitability analysis? a. Automatic data processing b. Return on investment c. After receipt of order d. Activity-based costing e. Economic order quantity

d. Activity-based costing

Segmentation involves classifying customers based on their importance. Which tools are used to classify customers? a. ABC classification (Pareto's Law) b. Customer profitability analysis c. Balanced investment strategy d. Customer loyalty program e. None of the above f. Only A and B

f. Only A and B

What are the possible costs of a service failure? a. Back orders b. Lost suppliers c. Lost sales d. Lost customers e. All of the above f. Only A, C, and D

f. Only A, C, and D

Bada Bing Bada Boom Candy, Inc. supplies the milk chocolate to candy makers throughout the mid-western states. After tracking your customers' behaviors, you find that 43% of these companies like your chocolate enough that they will wait until you can fill the order--even if it means a delay. Twenty-nine percent need the chocolate for immediate production and will make a one-time buy somewhere else. They realize that your product is superior and will come back. However, 28% of your customers get put off by not having the product and will permanently switch to another supplier. • The added processes and delivery fees to get late deliveries out run around $500 per incident. • An average chocolate order is about 200 lbs. One pound of chocolate is $22. The sales price includes a 13% mark up. • The lifetime stream of profits for a customer who permanently defects is estimated to be $254,096. If Bada Bing Bada Boom Candy, Inc. stocks out of milk chocolate 7 times a year, how much can you justify investing to eliminate stockouts through improved logistics, rounded to the nearest dollar? a. $782,950.00 b. $467,890.00 c. $753,440.00 d. $500,696.00 e. None of the above

d. $500,696.00

Calculate the expected cost per stockout with the following information: Probability of a back order is 67%, lost sale is 22%, and the probability of a lost customer is 11%. The cost per incident of a back order is $50, lost customer is $65,000. Sales price of the item is $12 with a 20% profit margin. The average order is 50. a. $13,187.00 b. $10,351.50 c. $12,212.00 d. $7,209.90 e. None of the above

d. $7,209.90

When thinking about metrics versus measures, which of the following is true? a. They are identical in meaning. b. Measures are more complex. c. A measure represents a system. d. A metric generally combines measures or develops a ratio for comparison.

d. A metric generally combines measures or develops a ratio for comparison.

Tailored logistics is where companies give. . . a. Key accounts outstanding service. b. Transactional relationships a fair, efficient service. c. Companies a menu of service offerings. d. Customers the opportunity to decide if they are willing to pay for extra services E. All of the above

E. All of the above

Growing your business by increasing sales with loyal customers is five times more expensive than finding and developing new customers. TrueFalse

False

In logistics, attention to detail is important. This means that all relationships are created equal. TrueFalse

False

Logistics is typically evaluated as a profit center. TrueFalse

False

Inventory can help increase a company's resiliency. TrueFalse

True

Not all customers are created equal. Nor is every transaction equally important. TrueFalse

True

While inventory is essential, it can also be one of the eight waste. TrueFalse

True

Bada Bing Bada Boom Candy, Inc. supplies the milk chocolate to candy makers throughout the mid-western states. After tracking your customers' behaviors, you find that 43% of these companies like your chocolate enough that they will wait until you can fill the order--even if it means a delay. Twenty-nine percent need the chocolate for immediate production and will make a one-time buy somewhere else. They realize that your product is superior and will come back. However, 28% of your customers get put off by not having the product and will permanently switch to another supplier. • The added processes and delivery fees to get late deliveries out run around $500 per incident. • An average chocolate order is about 200 lbs. One pound of chocolate is $22. The sales price includes a 13% mark up. • The lifetime stream of profits for a customer who permanently defects is estimated to be $254,096. Given the information above, what is the expected cost for a customer who decides to make a one-time buy eleswhere? a. $215 b. $400 c. $165.88 d. $193.37 e. None of the above

c. $165.88

How does logistics support a leagile supply chain strategy? a. Inventory is stored in large quantities throughout the supply chain. b. Transportation relies on rail and air modes. c. Distribution centers can perform light assembly operations. d. Transportation decisions are based solely on economies of scale. e. Emphasis is based on cost over customer service.

c. Distribution centers can perform light assembly operations.

Which of the following is one of the main reasons that transportation costs in the US have declined as a percentage of GDP? a. Most items are shipped from overseas. b. We store more inventory in more locations now, so we don't move it as far. c. Improved transportation efficiency/ leaner. d. All of the above

c. Improved transportation efficiency/ leaner.

Which of the following is true regarding how a product's value influences logistics costs? a. Warehousing cost is unaffected by the value as warehousing depends on the space something takes up. b. Transportation is unaffected by value as it is based on space and weight. c. Inventory costs go up because more valuable products tie up more cash. d. All of the above

c. Inventory costs go up because more valuable products tie up more cash.

Moving groups of people and suppliers, setting up camps, replenishing supplies and people, breaking camp and moving out describes which type of logistics? a. Event logistics b. Passenger logistics c. Military logistics d. Service logsitics e. Humanitarian logistics

c. Military logistics

Humanitarian logistics involves . . .? a. Moving groups of people and supplies, setting up camps, replenishing supplies and people, and breaking camp down again and moving it out. b. Focusing on B2B issues c. Planning the effective flow and storage of goods as well as the exchange of information to alleviate the suffering of people d. All of the above

c. Planning the effective flow and storage of goods as well as the exchange of information to alleviate the suffering of people

What does order transparency improve? a. Planning, evaluation, and disregard b. Execution, planning, and neglect c. Planning, execution, and evaluation d. Evaluation, disregard, and neglect e. None of the above

c. Planning, execution, and evaluation

Referring to timely delivery, what does "speed" refer to? a. How fast the trucks get from one destination to the other. b. It is the acronym for Self-Programmed Electronic Equation Delineator c. The length of the order cycle. d. The rapidity of the operation e. All of the above

c. The length of the order cycle.

Which of the following describes event logistics? a. The management of logistics to deliver relief after a disaster. b. Focused on all the people, facilities, and supplies in place to effectively deliver services to customers. c. The resources (facilities, people, and infrastructures) used to organize, deliver and execute an event from initial schedule through teardown and clean-up. d. Very predictable because every event is vastly different.

c. The resources (facilities, people, and infrastructures) used to organize, deliver and execute an event from initial schedule through teardown and clean-up.

Which types of metrics are more important in logistics? a. Operating Metrics b. Financial metrics c. They are equally as important, depending on the situation. d. Metrics only matter if you get the job done.

c. They are equally as important, depending on the situation.

The Toyota Production system . . .? a. Is a one-time improvement process anyone can try at home. b. Is a process that relies on top management incentives. c. Uses the "Plan, Do, Check, Act" approach to waste reduction. d. Is based on the seven wastes. e. All of the above

c. Uses the "Plan, Do, Check, Act" approach to waste reduction.


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