LSCM 3960 final
Hasty Manufacturing orders 25,000 annually. They order 10 times a year. They hold 9038 units in safety stock. The AVERAGE number of units Hasty Manufacturing holds throughout the year is:
10288.0
Assume that a company has sales of $17.9 million (measured at cost, not sales price). Also assume that the firm's inventory turn is equal to 3 and the inventory carrying costs are equal to 30.7%. If inventory turns are increased from 3 to 7, this would result in decreasing inventory carrying costs by (your answer must be accurate to the nearest dollar):
1046724.0
Hasty Manufacturing orders 34,000 annually. They order 8 times a year. They hold 8521 units in safety stock. The MAXIMUM number of units Hasty Manufacturing holds throughout the year is:
12771.0
Given that inventory valued at full cost equals $14.1 million, variable cost of the inventory is 61.9% of the full cost, and the inventory carrying cost is 26.3%, then the cost of carrying the inventory investment for one year is (your answer must be accurate to the nearest dollar):
2295438.0
Hasty Manufacturing orders 50,000 annually. They order 6 times a year. They hold 3126 units in safety stock. The MINIMUM number of units Hasty Manufacturing holds throughout the year is:
3126.0
Assume that the cost of the most efficient logistics system for a 97.4% service goal is $4.7 million higher than the existing system's cost. If for each dollar of additional sales, the company incurs 87 cents in out-of-pocket costs, what incremental sales volume, in dollars, will the company need to recover the increase in logistics costs? Your answer must be accurate to the nearest dollar.
36153846.0
Jim Bob Airlines has one 68 seat plane. On its last five flights it had 32 passengers from MSY to DFW, 34 passengers from DFW to OKL, 31 passengers from OKL to TUL, 38 passengers from TUL to FWB, and 48 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)
53.8
Your firm has a ROS of 14.3 percent. The company's goal is to increase sales by $417963 this year. How much, in dollars, would you have to reduce your logistics costs to provide the same marginal amount of profit?
59769.0
Jim Bob Airlines has one 58 seat plane. On its last five flights it had 33 passengers from MSY to DFW, 41 passengers from DFW to OKL, 32 passengers from OKL to TUL, 34 passengers from TUL to FWB, and 40 passengers from FWB to MSY. For the last five flights, what was the load factor? (Make sure your answer is accurate to one decimal place)
62.1
T/F: Increasing inventory turns from 10 to 15 has a greater impact than increasing inventory turns from 1 to 2.
False
T/F: Management will automatically achieve least total cost logistics by minimizing inventory carrying costs.
False
T/F: Most customers place more value on speed of delivery in filling orders than on order reliability and/or order consistency.
False
T/F: The manufacturer must lead the channel design process regardless of the relative market power and financial strength of the members of the supply chain.
False
T/F: When a traffic manager increases the number of carriers used, market power is increased.
False
T/F :If a firm concentrates on reducing the individual costs of each separate logistics function or activity, overall logistics costs may NOT reduce.
True
T/F: By using the latest information technology it is possible to substitute information for inventory and other logistics expenses.
True
T/F: Decreasing inventory turnover may lead to increased profitability.
True
T/F: EOQ models exist that include adjustments for volume transportation rates and for quantity discounts.
True
T/F: The "cost-of-service" pricing approach establishes a lower limit of transportation prices or rates.
True
Using Wilson's EOQ formula, what will happen to the average inventory level (Q*/2) if unit cost is DECREASED by 4.1% and annual demand is INCREASED by 4.1% at the same time? a. (Q*/2) will increase. b. (Q*/2) will decrease. c. (Q*/2) will remain the same.
a. (Q*/2) will increase.
The CBL Exam Company is attempting to locate a new plant to serve the Midwest. The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the grid HORIZONTAL coordinate of: a. 7.11 b. 6.20 c. 3.83 d. 3.95 e. 4.08 f. 2.71
a. 7.11
Please read the following statements: Statement I. Most logistics budgets are static. Statement II. Most logistics costs are dynamic. a. Both statements are true. b. The first statement is true, the second is false. c. The first statement is false, the second statement is true. d. Both statements are false.
a. Both statements are true.
Seasonal stocks are NOT influenced by a. EOQ b. weather c. transportation d. holidays
a. EOQ
A DRP system is usually coupled with a _______ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods. a. MRP b. JIT c. Kan Ban d. VMI/ Consignment
a. MRP
One of the major challenges of supply chain management is a. Maintaining the visibility of inventory. b. Forward buying. c. Building safety-stock inventory. d. Pushing inventory back to vendors.
a. Maintaining the visibility of inventory.
What is the best financial metric to show the profit an organization generates in relationship to assets utilized? a. ROA b. Profit c. Return on net worth d. Stock price
a. ROA
In his book The Wealth of Nations, Adam Smith stated that economies and companies could improve their wealth by a. allowing specialization of tasks. b. ensuring that logistics is used to gain advantage in the marketplace. c. becoming multi-national. d. moving production offshore
a. allowing specialization of tasks.
Recycling and environmental concerns a. are often related to regulatory policy at the local, state, and federal levels b. have led to waste steams being managed by 3PLs c. require the review of the feasibility of the materials requirement plan d. have led to green laws
a. are often related to regulatory policy at the local, state, and federal levels
The macro approach that locates a warehouse or distribution center at a point that minimizes transportation costs for products moving between a manufacturing plant and the markets, and is relatively simplistic: a. center of gravity approach b. Hoover's model c. Von Thunen's model d. Weber's model e. none of these are macro location approaches
a. center of gravity approach
Vertical collaboration refers to a. collaboration among buyers and sellers in the supply chain. b. collaboration among carriers and shippers. c. collaboration that moves up the supply chain. d. collaboration with competitors.
a. collaboration among buyers and sellers in the supply chain.
A metric requires a. definition. b. competitive analysis. c. trade association oversight. d. measures.
a. definition.
Which of the following is the "marketing mix"? a. distribution, price, product, promotion b. price, finance, management, customer service c. product, engineering, research, and design d. profit, accounting, distribution, retailing e. promotion, wholesaling, warehousing, purchasing
a. distribution, price, product, promotion
Air carriers were historically looked upon as a. emergency only carriers b. having equipment shortages c. a fringe participant d. insignificant
a. emergency only carriers
In the short run, the firm's network is _________ while in the long run it is ________. a. fixed, variable b. reversible, fixed c. adoptable, reversible d. variable, reversible
a. fixed, variable
Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtracts the cost of goods sold. a. gross sales b. back orders c. the forecast d. gross margin
a. gross sales
Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to a. increase the velocity of cash back to the selling organization b. attract new customers c. develop "Clicks" and "Bricks" firms d. manage inventory more effectively
a. increase the velocity of cash back to the selling organization
Exponential smoothing a. is one of the most commonly used techniques. b. uses primarily weighted averages to compensate for errors. c. is used to determine random variations. d. is used to reduce channel fluctuations
a. is one of the most commonly used techniques.
Which of these does NOT belong in the recommendations of the Reverse Logistics Educational Council? a. manufacturing b. gatekeeping c. zero returns d. information systems
a. manufacturing
What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse? a. materials handling b. physical distribution c. business logistics d. order fulfillment
a. materials handling
The current logistics management approach is supported by which performance measurement concept ? a. metrics b. total cost c. least total cost d. the D1 concept developed by the Supply Chain Council.
a. metrics
The logistics/supply chain network transformation team a. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates b. will not consider the potential involvement of third-party logistics suppliers as part of their responsibilities c. includes workers from divisional levels only d. should not include outside consultants
a. must be aware of the firm's overall business and corporate strategies and the supply chain in which it participates
What are fixed established spatial points where goods stop for storage or processing? a. nodes b. links c. cost centers d. fulfillment centers
a. nodes
In selecting a transport mode or carrier, the most important factor for most shippers would be: a. on-time pickups and deliveries b. carrier reputation c. quality of carrier sales force d. lowest freight rate e. satisfactory insurance coverage
a. on-time pickups and deliveries
Whether the relationship may or may not be with a provider of logistics services, today's supply chain relationships are MOST EFFECTIVE when collaboration occurs among the ____________ who are involved. a. participants b. third party logistics providers c. customers d. suppliers
a. participants
An inbound-to-operations logistics system is also referred to as! a.physical supply. b. physical distribution. c. dedicated fulfillment. d. demand management.
a. physical supply
A major challenge is ___________ of total cost of the return flow processes a. the estimation b. the management c. the tracking d. the control
a. the estimation
Which is correct regarding tapering rates? a. the principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles b. transportation rates increase with distance directly in proportion to the distance c. in a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market d. uses transportation simplifications to recommend facility locations
a. the principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles
The classic objective of a network design model has been a. to establish the number, location, and size of finished goods distribution centers and associated product flows. b. to find the best location for a forward facing warehouse. c. to examine the finished goods flow from the warehouse to the customer. d. to measure and control site locations.
a. to establish the number, location, and size of finished goods distribution centers and associated product flows.
Transportation terms of sale establish a. when ownership and title of the goods passes from seller to buyer b. what must be shown on the bill of lading. c. which transportation mode must be used d. who handles freight claims
a. when ownership and title of the goods passes from seller to buyer
When a firm "sources strategically," it is a. working together with customers and suppliers in a creative, positive way b. seeking least cost vendors c. matching product and raw material flows to minimize transportation costs d. reacting to current competitive situations
a. working together with customers and suppliers in a creative, positive way
Other things being equal, HIGH inventory carrying costs will tend to lead to: a. use of a slower mode of transportation, such as railroads b. reducing customer service levels by lowering safety stock c. use of a more expensive mode of transportation such as motor carriers or airlines d. ordering more frequently. e. B., C. and D.
b, c, and d
Each of following is an inventory holding cost EXCEPT: a. Warehouse cost. b. Accounting cost. c. Obsolescence. d. Interest opportunity cost. e. Inventory shrinkage.
b. Accounting cost.
As market forces continue to exert pressure on companies to improve profitability, the quest for lower-cost manufacturing has been a factor in the relocation of manufacturing from Mexico to ________? a. South America b. Asia c. Russia d. Canada
b. Asia
Assuming the cost to place an order is constant, all other things remaining the same, DECREASING the order quantity (Q*) causes total ANNUAL ordering costs to: a. Decrease. b. Increase. c. Remain the same. d. Cannot be determined.
b. Increase
All of the following are reasons for holding inventory EXCEPT: a. Inventories enable specialization in manufacturing. b. Inventories eliminate the variation in supply and demand. c. Inventories enable the firm to achieve economies of scale. d. Inventories provide protection from uncertainties in demand in the order cycle. e. Inventories act as a buffer between critical interfaces within the channel of distribution.
b. Inventories eliminate the variation in supply and demand.
The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is: a. Cycle stock. b. Safety stock. c. Promotional stock. d. Speculative stock. e. Transit stock.
b. Safety Stock
A demand-driven system is also known as: a. a supply chain b. a pull system c. a marketing system d. a multi-echelon system.
b. a pull system
The decision to alter the supply chain process is essentially ___________issue. a. management b. an optimization c. a supply chain d. a customer satisfaction
b. an optimization
WIP inventories are a. NOT included on the balance sheet b. associated with manufacturing c. the same as VMI inventories d. NOT impacted by EOQ
b. associated with manufacturing
The grid technique a. is a variation of SAILS b. assumes that the raw materials sources and finished goods markets are fixed c. assumes that the raw materials sources and finished goods markets are variable. d. assumes non-linear transportation rates
b. assumes that the raw materials sources and finished goods markets are fixed
Order management system represents the principal means by which a. price and lead time add value b. buyers and sellers communicate information relating to individual orders of product c. orders are handled inside the company d. customers are segmented by profitability
b. buyers and sellers communicate information relating to individual orders of product
Activity Based Costing a. is useful for distributions centers but not customers. b. can be combined with customer segmentation. c. is too sophisticated for many applications. d. is a very new management science.
b. can be combined with customer segmentation.
Collaboration occurs when a. a firm seeks advantages by sourcing with critical partners b. companies leverage each other on an operational basis so that together they perform better than they did separately c. many logistics or supply chain improvements can be made within one firm by eliminating "stovepipes" d. senior executives focus on supply chain economies to improve their firms' financials
b. companies leverage each other on an operational basis so that together they perform better than they did separately
Which is an advantage of the grid technique for facility location? a. it establishes the final determination of the best site b. computationally, it is relatively easy to use c. it is a dynamic approach with solutions remaining optimum over many time periods d. it considers topographic conditions in choosing the optimum location
b. computationally, it is relatively easy to use
If demand and lead time are constant, only___________ is necessary. a. associated stock b. cycle stock c. safety stock d. speculative stock e. seasonal stock
b. cycle stock
Inventory and the GDP grew by ______ amounts between 1994 and 2010. a. the same b. different c. inversely proportional d. exponential
b. different
Economies and companies could improve their "wealth" by a. allowing specialization of tasks. b. ensuring that logistics is used to gain advantage in the marketplace. c. becoming multi-national. d. moving production off shore.
b. ensuring that logistics is used to gain advantage in the marketplace.
While available evidence supports the fact that the president or CEO and the finance executive are often involved with the identification of the need for logistic services, a. customers are demanding a change. b. executives from other areas in the firms are also aware of such needs but to a lesser degree. c. a 4PL will suggest greater collaboration. d. off shore sourcing will point to greater need.
b. executives from other areas in the firms are also aware of such needs but to a lesser degree.
Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure. a. cash to cash management b. information systems c. order cycle d. KPIs
b. information systems
Capital cost focuses on the cost of capital tied up in ________and the resulting lost opportunity from investing that capital elsewhere. a. plants b. inventory c. distribution centers d. WIP
b. inventory
For most firms, the MOST important measure of customer service is: a. profitability of the particular channel of distribution b. inventory availability within a specified order cycle time c. the length of the order cycle d. the number of decentralized transactions within a business cycle e. the ability to backorder
b. inventory availability within a specified order cycle time
Which is true regarding the facility/supply chain network design decision? a. the facility's impact on other functional areas should be considered, but it is not as important b. it should be coordinated closely with the corporate and overall business strategies that may be in place c. global locations should not be considered d. generally, qualitative criteria are considered first
b. it should be coordinated closely with the corporate and overall business strategies that may be in place
Which of the following would NOT be a typical transportation management function? a. selecting the best modes of transportation b. keeping track of inventory in the warehouse(s) c. auditing freight bills d. negotiating rates with carriers e. choosing specific carriers
b. keeping track of inventory in the warehouse(s)
Which management area in an organization does not normally have transportation responsibility? a. marketing b. manufacturing c. procurement d. logistics
b. manufacturing
The demographics of our society has changed because a.the "Baby Boom" generation is now turning 60. b. of the increase in two-career families and single-parent households. c. of immigration. d. birth rates have changed.
b. of the increase in two-career families and single-parent households.
The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix a. Price b. place c. product d. promotion
b. place
The utility that is created by moving goods from production points to market points where demand exists is referred to as a. form b. place c. time d. possession
b. place
Customer relationship management is the art and science of a. demand management. b. positioning customers to improve the profitability of the organization c. management discipline. d. customer profitability.
b. positioning customers to improve the profitability of the organization
issue that has received much more scrutiny in recent years is the: a. focus on adequate inventory levels b.reduction in packaging waste by using alternate materials c..effort to move warehouse storage closer to consumers d.emphasis on materials handling and warehouse design
b. reduction in packaging waste by using alternate materials
Globalization was initially driven by countries a. seeking new territories outside the U.S. seeking to establish plants in the U.S. b. seeking materials and goods not available in their own land. c. sponsoring trading missions.
b. seeking materials and goods not available in their own land.
When a firm "customizes" their supply chain, it is a. trying to improve asset utilization b. tailoring the chain to be responsive to the needs of individual customer segments c. responding to competitive situations d. revising its supply chain in light of current economic conditions
b. tailoring the chain to be responsive to the needs of individual customer segments
All the following are inventory risk costs EXCEPT: a. obsolescence b. taxes c. damage d. shrinkage e. relocation costs
b. taxes
A critical ingredient for the Third Era of globalization is: a. the global emphasis on tailoring products and marketing strategies to meet perceived local needs b. technological advances, especially in information technology and communications. c. the global emphasis on profits and efficiency d. the global emphasis on the marketing mix and marketing functions
b. technological advances, especially in information technology and communications.
What is often the largest component of logistics costs? a. inventory costs b. transportation costs c. shipper-related costs d. administrative costs
b. transportation costs
Some individuals describe the current consumer as the "click here" generation because a. we all have Internet access b. we no longer wait for information to be "pushed out" to us. c. we buy so much merchandise on line. d. we take little time to make purchasing decisions.
b. we no longer wait for information to be "pushed out" to us.
Which is NOT a mode of transportation? a. truck b. air c. 3PL d. pipeline
c. 3PL
Which of the following does NOT belong in the list of the seven principles of supply chain management? a. Segment Customers Based on Service Needs b. Differentiate Products Closer to the Customer c. Develop an outsourcing strategy to maximize asset utilization d. Adopt Channel-Spanning Performance Measures
c. Develop an outsourcing strategy to maximize asset utilization
Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape? a. Government policy b. Technology c. Environmental concerns d. Globalization
c. Environmental Concerns
The biggest and best known example of a regional trade agreement (RTA): a. World Trade Organization (WTO) b. General Agreement on Tariffs and Trade (GATT) c. European Union (EU) d. Customs Trade Partnership Against Terrorism (C-TPAT)
c. European Union (EU)
A 4PL is a. a 3PL owned by transportation related firm. b. a firm used to implement Facility Utilization and Equipment Utilization Strategies. c. a 3PL looked to for providing competencies related to knowledge availability, information technology, and skills in forming and sustaining supply chain relationships d. a group of 3PLs owned by the company.
c. a 3PL looked to for providing competencies related to knowledge availability, information technology, and skills in forming and sustaining supply chain relationships
Desirability refers to a. performance reporting and scorecarding b. attractive packaging choice c. characteristics that influence modal selection d. ride quality
c. characteristics that influence modal selection
Ordering cost refers to the expense of placing an order and a. includes the cost of capital. b. relates to the material management concept. c. does not include the cost of the product. d. not receiving it.
c. does not include the cost of the product.
Information and __________ are important dimensions in reverse logistics and closed loop supply chains. a. transportation b. flow c. financials d. direction
c. financials
Green laws have a. started reverse flows b. only recently been enacted c. had a major impact on firms d. are still being evaluated
c. had a major impact on firms
Security legislation A. has not had much impact on transportation carriers B. has caused some firms to stop offshore sourcing c. has caused expense issues for carriers d. has created unnecessary restrictions of legitimate trade
c. has caused expense issues for carriers
The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is NOT included? a. complexity b. inventory deployment c. inventory carrying costs d. technology
c. inventory carrying costs
A(n) _______ relationship generally exists between the cost of lost sales and inventory cost. a. reverse b.proportional c. inverse d. non linear
c. inverse
Benefits to a carrier of improved routing and scheduling include all of the following EXCEPT: a. greater vehicle utilization b. higher levels of customer service c. lessening of competition d. lower transportation costs e. reduced capital investment in equipment
c. lessening of competition
Outsourcing involves a. moving company facilities away from the home office. b. hiring foreign nationals to manage parts of the business. c. obtaining materials, parts, and products from other companies. d. building a factory in another country.
c. obtaining materials, parts, and products from other companies.
The main strategy behind routing guides is to a. maintain exact control b. comply with or enforce FOB terms! c. promote supply chain excellence
c. promote supply chain excellence
The product's dollar value typically affects the cost of logistics activities. Which is NOT one of these costs? a. warehousing costs b. transportation costs c. promotion costs d. packaging costs
c. promotion parts
Which of the following is NOT a result (directly or indirectly) of the Motor Carrier Act of 1980? a. increasing competition b. overall number of TL motor carriers has increased c. service levels provided by carriers have declined d. the number of negotiated shipper-carrier agreements has increased e. the influence of rate bureaus on carrier pricing has declined
c. service levels provided by carriers have declined
From a business and supply chain perspective, ______________ are usually based upon a recognition that industrial systems need to be in harmony with nature by not depleting resources beyond their replacement or regeneration rate. a. life cycle practices b. ecological practices c. sustainability practices d. reverse logistics practices
c. sustainability practices
Cost/Value refers to a. getting the best value for the money spent. b. U.S. firms competing in the global arena. c. the importance of cost and value at the very end of the supply chain. d. product variety.
c. the importance of cost and value at the very end of the supply chain.
Those customers who are in the "Danger Zone" segment are a. likely to switch to a competitor b. have been a customer for less than a year c. the least profitable. d. are using ABC to drive down the price
c. the least profitable.
The recent increased focus on reverse flows is attributable to a. pressure from environmental groups b. increases in the price of oil c. the significant increase in volume of reverse flows d. new environmental legislation
c. the significant increase in volume of reverse flows
Piggyback is a form of intermodal transportation that primarily involves the following two transport modes: a. air and rail b. water and pipeline c. truck and rail d. air and water
c. truck and rail
The CBL Exam Company is attempting to locate a new plant to serve the Midwest. The company has two raw material sources and three market areas. You want to centrally locate a plant relative to all sources and markets based on transportation rates. The least cost location for the new plant is at the grid VERTICAL coordinate of: a. 7.11 b. 6.20 c. 3.83 d. 3.95 e. 4.08 f. 2.71
d. 3.95
Demand management includes a. Flows of products. b. Flows of services. c. Information about capital. d. All of these answers.
d. All of these answers
Which of the following is NOT a supply chain decision area regarding ROA improvement? a. Channel Structure Management b. Inventory Management c. Order Management d. Information Management
d. Information Management
ALL of the following have affected international logistics EXCEPT: a. Currency fluctuations. b. Deregulation of the U.S. ocean liner industry. c. Trade policies. d. The passage of the Sarbanes-Oxley Act by the United Nations. e. Intermodalism.
d. The passage of the Sarbanes-Oxley Act by the United Nations.
Pareto Analysis may be used to classify parts, customers, or activities. When determining the Pareto segments to classify parts, you should: a. Identify 80% of the total value of all the parts as these will represent exactly 20% of the part numbers. b. Identify 20% of the inventory value as this will represent exactly 80% of the part numbers. c. Identify 80% of the number of parts as these will represent exactly 20% of the inventory value. d. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds. e. Identify 20% of the part numbers as these will represent exactly 80% of the inventory value.
d. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is subjective; however the general 80-20 relationship still holds.
The weighted moving average method assigns a. a value in each period being averaged. b. a weight greater than 1. c. information based on a simple average d. a weight to each previous period.
d. a weight to each previous period.
Effective order management can have an impact on a. reducing supply chain costs b. increasing revenues c. improving ROA d. all of these answers
d. all of these answers
Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are a. quick response (QR) b. vendor-managed inventory (VMI) c. efficient consumer response (ECR) d. all of these answers
d. all of these answers
Simulation models are designed to a. guarantee optimum solutions. b. generate SAILS reports c. search directly for the best warehouse configuration d. allow the decision maker to test the effects of alternative locations
d. allow the decision maker to test the effects of alternative locations
A third-party logistics firm may be defined as a. an outsource service. b. a firm that owns trucks and warehouses. c. a firm that owns trucks and warehouses and provides computer support. d. an external supplier that performs or manages all or part of a company's logistics functions.
d. an external supplier that performs or manages all or part of a company's logistics functions.
Heuristic models a. may, but generally do not provide an optimum solution. b. are able to accommodate broad problem definitions. c. have fallen from use because of SAILS. d. are unable to incorporate certain rules into the decision-making process.
d. are unable to incorporate certain rules into the decision-making process.
Challenges for the trucking industry include a. lack of flexibility b. limited equipment options c. oversupply of qualified drivers d. competition.
d. competition
Transportation efficiency promotes __________ in the supply chain. a. intermodal demand b. KPIs c. capacity d. competition
d. competition
All of the following are advantages of containers in international distribution EXCEPT: a. costs due to loss or damage are reduced b. labor costs in freight handling are reduced c. containers are more easily stored and transported than other types of shipments d. containers are available in only one size e. containers are able to serve as temporary storage facilities at ports and terminals containers are available in only one size
d. containers are available in only one size
Batching economies or cycle stocks usually arise from three sources. Which of these is NOT a source? a. procurement b. transportation c. production d. demand
d. demand
In the event of a "stockout" at your location, one of the things that could happen is a. the vendor's plant shuts down b. the cost of capital is increased c. the SCOR process would come into play d. extra shipping cost may be incurred
d. extra shipping cost may be incurred
Which type of global logistics channel intermediary enables goods to move through customs more easily by consolidating small shipments into more economical sizes? a. customs house brokers b. NVOCC c. export trader d. foreign freight forwarder
d. foreign freight forwarder
The Supply Chain should a. manage all aspects of transportation, selecting the least cost when possible. b. seek to maximize profits. c. use the same techniques internationally that it uses domestically. d. manage materials/products, information, financials, and demand.
d. manage materials/products, information, financials, and demand.
An outbound-to-customer logistics system is also referred to as a. integrated fulfillment. b. dedicated fulfillment. c. store fulfillment. d. physical distribution.
d. physical distribution
JIT is a _______ system. a. push b. Pareto's Law c. MRP d. pull
d. pull
The least-frequently used IT-based services by customers of 3PLs are: a. transportation management (execution) b. warehouse/distribution management c. global trade management and transport sourcing d. strategic and customer-related
d. strategic and customer-related
Which of the following is NOT part of the Supply Chain network? a.plants b. stores c. terminals d. distribution centers e. ALL are part of the Supply Chain Network
e. ALL are part of the Supply Chain Network
The objective of inventory management is to: a. Stockpile all types of inventory. b. Minimize all types of inventory. c. Eliminate all overage inventory. d. Maximize all types of inventory. e. Increase corporate profitability.
e. Increase corporate profitability.
Which of the following statements about just-in-time (JIT) is FALSE? a. JIT helps to reduce manufacturing cycle times. b. JIT has been defined as a philosophy that centers on the elimination of waste in the manufacturing process. c. JIT seeks to eliminate non-value-added activities. d. JIT helps a firm to reduce its overall material costs e. JIT programs usually do not impact inventory turnover rates.
e. JIT programs usually do not impact inventory turnover rates.
If demand INCREASES by 13% and the value of each unit INCREASES by 13%, what will happen to the EOQ? (Assume that everything else remains the same). a. the EOQ will increase by 13%. b. the EOQ will increase by 26%. c. the EOQ will decrease by 13%. d. the EOQ will decrease by 26%. e. the EOQ will remain the same.
e. the EOQ will remain the same.
