Quiz 3 LSCM

One of the main advantages associated with public warehouses is the control provided to the goods owners.

False

Transportation management system (TMS) applications allow firms to find carriers, track fuel usage and product movements, and stock the shelves at customers' location.

False

What does the term "Zombie Inventory" refer to?

Product returns that sit unsold in storerooms

Reverse logistics can have a positive impact on the environment through activities such as:

Recycling

Returns management is also known as:

Reverse Logistics

Which of the following can aggregate cargo and arrange for the domestic or international shipment of members' cargo at favorable volume rates?

Shippers' Associations

What type of firm would be most interested in using a third-party logistics service?

Small firm with no logistics expertise

Which of the following agreements was put in place in 2020 to replace NAFTA?

The United States-Mexico-Canada Agreement (USMCA)

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all the shipping arrangements and documentation preparation?

Trading Company

In 2020, during the global pandemic, use of 3PLs grew.

True

A current warehouse system has four warehouses with 8,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.)

16,210 or 15,492

What carry the majority of the world's water-transported manufactured goods?

Containerships

The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as:

Crossdocking

The following are all examples of lean warehousing capabilities EXCEPT:

Decreased Automation

Which of the following service companies consolidate small shipments into larger TL or CL shipments and decide what transportation modes and methods to use?

Foreign Freight Forwarder

Which of the following consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates?

Freight Forwarder

The first major transportation regulation in the United States was which of the following?

Granger Laws

Which of the following creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maximized?

Logistics

When firms begin evaluating and using foreign suppliers, which of the following becomes a critical factor in the sourcing decision?

Logistics costs

When mistakes occur in the supply chain, which of the following things might happen?

More safety stock must be held Cost may increase due to expedited deliveries Customer service levels drop

According to Table 9.1 in the text, for-hire logistics expenditures in the United States have done what since 2000?

More than doubled

What carriers are the most flexible mode of transportation and account for 71 percent of all the freight tonnage moved in the United States?

Motor

Which of the following are intermodal transportation alternatives?

Truck trailer-on-flatcar Roll-on-roll-off Piggyback service

Fulfillment by Amazon and DHL are both considered third-party logistics providers.

True

Logistics is what creates the flow of goods between supply chain trading partners, such that costs, service requirements, competitive advantage, and profits can be optimized.

True

Poor logistics management can bring a supply chain to its knees, regardless of the quality of the products.

True

Private warehouses refer to warehouses that are owned by the firm storing the goods.

True

Railroads are at a disadvantage compared with motor carriers with respect to shipment damages, equipment availability, and service frequency.

True

Returned goods can still create value as original goods, refurbished goods, or repair parts.

True

The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location.

True

Third-party logistics (3PL) services can assist with customs clearance and storage location.

True

Trucking volumes increased initially in 2020 by about 30 percent due to panic buying.

True

A small LTL shipment that originates on a truck in San Francisco and is moved from San Francisco to Las Vegas where it is unloaded and put onto another truck for final shipment to Phoenix would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

False

According to the textbook, the five basic modes of transportation are motor, rail, air, water, and drones.

False

Air Carriers compete most favorably when the distance is long and the shipments are heavy or bulky.

False

Foreign-trade zones (FTZs) are secure sites within the European Union under the supervision of the EU Customs and Tariffs.

False

Generally speaking, motor carriers are less expensive than rail carriers to haul goods.

False

Which of the following is an example of what companies can do to improve environmental performance?

Horizontal collaboration

Which of the following is NOT a benefit from USMCA?

It combines near-shore, far-shore, and domestic opportunities into a single, flexible, and cost-driven approach to purchasing and logistics

Transportation deregulation is argued to be good because:

It encourages competition and allows prices to adjust as supply, demand, and negotiations dictate

Which of the following is NOT consistent with a decentralized warehousing system?

Outbound transportation costs will be higher

Which of the following allow truck trailers, automobiles, heavy equipment, and specialty cargo to be directly driven on and off the ship, into secured below-deck garages without use of cranes.?

Roll-on-roll-off vessels

Good logistics management can be one of the elements creating a competitive advantage for supply chains.

True

In Europe, rail transportation tends to be much more prevalent and reliable than rail transportation in the United States, because European track, facilities, and equipment are newer and better maintained.

True

In many cases, reverse logistics is viewed as an unwanted activity of supply chain management.

True

Reverse logistics refers to the movement and storage of returned goods.

True

When air freight was deregulated in 1977, size restrictions were lifted and carriers were free to charge any rate, provided there was no discrimination.

True

When mistakes occur in deliveries along the supply chain, more safety stocks must be held, adversely impacting both customer service levels and costs.

True

With FOB pricing, a supplier is the legal owner of a product until the product reaches its destination.

True

Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow, yet good for transporting very heavy goods a long-distance?

Water Carriers