SCM 411 - CH 2

DRP (Distribution Requirements Planning) is a system that allows manufacturers, wholesalers, and retailers of consumer products to manage their inventory "just-in-time:" DPR works as a/an a) "draw" system b) "push" system c) "elastic" system d) "pull" system e) "total cost" system

"pull" system

T/FInventory reduction was a major goal of companies in the 1980s; this change was due to the increasing costs of oil and of products manufactured with oil.

false

T/FLogistics costs (transportation and inventory costs) represent about 15 percent of the United States' gross domestic product (GDP).

false

T/FLogistics management encompasses more activities than does supply chain management.

false

T/FMRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the time that goods spend in transit).

false

T/FThe fact that there are different languages, cultures, currencies, and laws in foreign countries illustrates the idea that the international logistician operates in a less challenging environment.

false

T/FThe globalization of markets is a recent phenomenon.

false

T/FThe modern term "logistics" is based upon a French word meaning "military train."

false

T/FThe fact that there is a greater number of intermediaries in international logistics (banks, insurance companies, Customs, and so on) also makes that there is an abundance of paperwork.

true

T/FReverse logistics activities are similar to the traditional activities of logistics, but occur after the product has been sold/consumed.

true

T/FSome companies are implementing a reverse logistics program in which they design products so that they can be used or remanufactured again and again. Such a program is called a "cradle to cradle" design.

true

T/FThe change in government policies that allowed FedEx and other air carriers to purchase larger aircrafts and compete with other airlines was called deregulation.

true

T/FThe city of Curitiba, in Brazil, solved two problems at once; its recycling efforts have reduced pollution and landfill usage, while employing very-low-income residents.

true

T/FThe cost of air cargo shipments decreased after the deregulation of the 1980s.

true

T/FThe costs of domestic logistics (transportation and inventory) represent approximately 10 percent of the GDP of the United States

true

T/FThe costs of international logistics are higher than the costs of domestic logistics. They are estimated as 15 percent of the total value of international trade.

true

T/FThe country of Germany has implemented a secondary refuse collection system, specifically targeted at packaging materials, that is funded entirely by industry.

true

T/FThe most significant change in the past fifty years in ocean transportation was the creation of containers by Malcom McLean.

true

T/FThe people whose responsibilities include loading and unloading ships are called longshoremen.

true

T/FThe person responsible for the creation of containers in 1956 was named Malcom McLean.

true

T/FThe single most important development in international ocean shipping was the creation of containers.

true

T/FTransportation decisions are more complicated in international logistics than they are in domestic logistics.

true

MRP (Material Requirements Planning)

A computer-based management tool that allows a manufacturing firm to determine what to produce, and in which quantity, in function of what it sells to its customers.

DRP

A computer-based management tool that allows a retail firm to determine what to order from its suppliers in function of what it sells to retail customers.

MRP II - Manufacturing Resource Planning

A computer-based management tool that uses MRP at its core, and that allows a manufacturing firm to determine what to manufacture, and in which quantity, in function of what it sells to its customers.

container

A large metallic box used in international trade that can be loaded directly onto a truck, a railroad car or an ocean-going vessel.

JIT (just in time)

A management philosophy that consists of planning the manufacturing of goods in such a way that they are produced just before they are needed in the next step of the assembly process, in order to minimize the amount of inventory that a firm carries.

stevedore

A person who loads and unloads goods from a vessel in a port.

longshoreman

A person who performs manual labor in a port.

ship chandler

A retail dealer who specializes in supplies for ships in an international port.

boat

Any ship in industry jargon.

box

Container in industry jargon.

international supply chain management

It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers, whether they are located in the United States or abroad. In essence, it integrates supply and demand management within and across companies.

supply chain management

It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence,it integrates supply and demand management within and across companies.

logistics

It is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements.

international logistics

It is the process of planning, implementing, and controlling the flow and storage of goods, services, and related information from a point of origin to a point of consumption located in a different country.

Who was the person who popularized the idea of sea-going containers that could be loaded directly onto a ship, a truck, or a railroad car? a) Peter Maersk b) Malcom McLean c) Joseph Battaliga d) Hapag Loyd e) Samuel Pilsmol

Malcom McLean

Which of the following group of countries is more likely to lag in terms of green practices, according to the IBM study mentioned in the text? a) North America b) Western Europe c) Asia Pacific d) All are at the same level e) none of the above

North America

reverse logistics

The management of the logistical activities involved in the return of a product (or parts of it, including the packaging) to a manufacturer.

Companies increasingly are designing products so that they can gain a competitive advantage through reverse logistics. Returned products are a)refurbished for resale in secondary markets. b)reused (packaging or containers). c)remanufactured (restored to their original performance standards). d) discarded e) all the above

all the above

The definition of "international supply chain management" is the same as the definition of "supply chain management," except that it makes explicit the fact that SCM a) is global b) is international c) includes international activities d) all the above d) none of the above

all the above

Which one was NOT one of the characteristics of the "early days" of logistics? a) an emphasis on making sure that the goods arrived in good condition b) an emphasis on low-cost transportation c) long transit times d)an emphasis on customer satisfaction and supplier relationship management e)focus on physical distribution of finished goods

an emphasis on customer satisfaction and supplier relationship management

T/FInsurance issues in international logistics are thankfully similar in complexity to insurance issues in domestic logistics.

false

Another name for sea-going containers is a) boxes b) cans c) crates d) tins e) coffins

boxes.

The individuals who are handling goods in the ports, loading and unloading merchandise, are NOT called a) stevedores b) chandlers c) dockers d) longshoremen e) any of the above

chandlers

It is an existing practice that companies shipping to large manufacturers and retail chains may be penalized financially by the consignees for not a)shipping the correct goods. b)shipping the goods in the right quantity. c)shipping the entire order at once. d)delivering the goods on the day and at the time promised. e) invoicing correctly

delivering the goods on the day and at the time promised.

T/F International logistics includes activities that are not part of domestic logistics.

false

T/F"Time-defined", or "time-definite", deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable.

false

The increased usage of air transport for international trade has had which consequence? a) decreased shipping costs b) increased insurance claims c)increased probability of a company being selected as a supplier, by reducing delivery times d) increased shipping delays e) decrease in perishable cargo trade

increased probability of a company being selected as a supplier, by reducing delivery times

In the 1980s, companies started to manage their inventories much more closely than they had in the 1960s and 1970s. This was due to an increase in a) interest rate b)the value of inventories in general. c)the value of the goods held in inventory. d)the creation of just-in-time inventory management systems. e) theft

interest rate

A German corporation is involved in the Grüne Punkt program and recycles its final consumer packaging after the consumer has used the product. How are these types of activities called? a) cycling logistics b) reverse logistics c) recycling logistics d) return logistics e) reuse logistics

reverse logistics

Which of the following is an emerging element of international logistics, according to the textbook author, although it is fully part of domestic logistics, according to the CSCMP? a) reverse logistics b) the management of transportation c) the management of inventories d) the management of paperwork e) none of the above

reverse logistics

Which of the following is NOT among the challenges of international logistics? a) infrastructure differences b) superstructure differences c) insurance complexities d) paperwork requirements e) customs procedures

superstructure differences

It is generally accepted that a)logistics management encompasses activities that are distinct and separate from the activities included in supply chain management. b)logistics management encompasses activities that are broader than those of supply chain management. c)supply chain management encompasses activities that are broader than those of logistics management. d)some of the activities of logistics management and some of the activities of supply chain management are similar, but both also include distinct, non-overlapping and separate activities. e) none of the above

supply chain management encompasses activities that are broader than those of logistics management.

T/F"Reverse logistics" deals with the activities involved in the return of products to the manufacturer, including the return of used packaging.

true

T/F"Supply chain management" is now considered to include not only the management of all of the activities that are part of "logistics," but also the management of the relationships of a company with its suppliers and customers.

true

T/FAccording to the author, "supply chain management" includes both domestic and international logistics activities; there is no practical way of distinguishing between domestic supply chain management and international supply chain management.

true

T/FBattaglia sees logistics as the merger of materials management and physical distribution, and supply chain management as the merger of logistics with marketing, sales, information technology, and, most importantly, strategic planning.

true

T/FCustomer service became the primary focus of logistics in the 2000s.

true

T/FEarly logisticians were international traders, and, although they used different techniques and means of transportation, they were concerned with the same issues that present-day logisticians are concerned about.

true

T/FInternational logistics costs (transportation and inventory costs) represent about 15 percent of the total word-wide volume of trade.

true

T/FInternational logistics involves activities that are more complex than the activities of domestic logistics.

true

T/FLogisticians' concerns have shifted from an emphasis on "slow, reliable deliveries," to one on "speed" and consumer satisfaction.

true

T/FLogistics costs have generally steadily declined over the past 50 years, when expressed as a percentage of the GDP of the United States.

true

T/FLogistics is often defined as the activities that deal with the physical aspects of the movement of goods.

true

T/FMRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their inventory levels.

true

T/FManufacturers have adopted MRP systems so that they can reduce their inventory and manufacture just-in-time.

true

T/FMost firms either purchase goods from abroad or sell goods abroad. If they do not, their suppliers and customers do. This situation illustrates that supply chain management is inherently global.

true

T/FNorth American firms are lagging their European counterparts in the implementation of "green practices" in manufacturing and other supply chain activities.

true