Contemporary Logistics 11th Edition

Transportation consolidation has been described as the "last frontier" of logistics savings opportunities. Answer: False False False There are four possible ways to transmit orders. Answer: False False False Internal sources of logistics information are not always as plentiful as might be desired. Answer: True True True Marginal analysis recognizes that all inventories should not be managed in the same way. Answer: False False False Materials handling has been referred

How can logistics managers attempt to control pilferage? Answer: Control begins with the hiring process and one of the best ways to manage pilferage is to avoid hiring people who are predisposed to steal, such as people with credit, alcohol, or drug problems. Some organizations utilize psychological tests as part of the

A broker is a type of intermediary often associated with the negotiations channel. Answer: True True True National holidays have no impact on the effectiveness and efficiency of international logistics. Answer: False False False Global positioning implementations often pay for themselves within six months. Answer: False False False The Worker Adjustment and Retraining Notification (WARN) Act mandates that employers give 90 days' notice about plant

Warehouses emphasize the rapid movement of products through a facility and attempt to maximize throughput. Answer: False False False The effective and efficient use of information allows organizations to either reduce costs or improve customer satisfaction. Answer: False False False Sweatshops are organizations that exploit workers and that do not comply with fiscal and legal obligations towards employees. (True) Answer: True True True One reason

Complementary products can be defined as inventories that can be used or distributed together, such as razor blades and razors. Answer: True True True A contemporary procurement manager might have responsibility for reducing cycle times and for generating additional revenues by collaborating with the marketing department. Answer: True True True Absolute and relative logistics costs in relation to Gross Domestic

Contrast procurement's historical focus to its more strategic orientation today. Answer: Procurement's historical focus in many organizations was to achieve the lowest possible cost from potential suppliers. Oftentimes these suppliers were pitted against each other in "cutthroat" competition involving three- or six-month length contracts awarded to the lowest bidder. Once this lowest

Application-specific software is a type of decision support system. Answer: True True True Agglomeration refers to the net advantages that can be gained by a sharing of common locations by various enterprises. (True) Answer: True True True Most package labeling takes place at the end of the assembly line. Answer: True True True The finance department tends to measure inventory in terms of units while

Population can be viewed as both a market for goods and a potential source of labor. (True) Answer: True True True The Supply Chain Operations Reference (SCOR) model identifies five key processes associate with supply chain management. Answer: False False False Throughput is the amount of product entering and leaving a warehousing facility in a given period of time. Answer: True True True China

What are some ways in which the Transportation Security Administration is attempting to improve the security of the U.S. transportation system? Answer: The Transportation Security Administration (TSA) is the agency that conducts passenger screenings at U.S. commercial airports. The TSA also plays a number of roles with respect to freight security, such

The U.S. railroad industry is dominated by four freight carriers. Answer: True True True Because customer needs and wants change relatively quickly, supply chains should be fast and lean. Answer: False False False As a general rule, companies prefer to carry less inventory as the carrying cost percentage decreases. Answer: False False False The primary influence of logistics activities on sales would be through the

Explain how big-box retailers are logistical trendsetters. Answer: The logistics practices of big-box retailers are often viewed as barometers for emerging logistics trends. In the 1990s, for example, Wal-Mart and Warner-Lambert were the first two companies to explore collaborative planning, forecasting, and replenishment (CPFR). Big-box retailers have also been trendsetters with respect

Potential logistics social responsibility dimensions include the environment, diversity, safety, and philanthropy, among others. Answer: True True True Logistical decisions tend not to be impacted by marketers' growing emphasis on offering sustainable products. Answer: False False False Office automation systems provide effective ways to process personal and organizational business data, to perform calculations, and to create documents. Answer: True True True ____ materials are no

Define and explain how organizations might engage in benchmarking. Answer: Benchmarking refers to a process that continuously identifies, understands, and adapts outstanding processes found inside and outside an organization. Well-run organizations benchmark not only against competitors (where possible) but against best-in-class organizations as well. For maximum results, organizations should engage in performance

What is a carrier performance scorecard? How might it be used by a transportation manager? Answer: Carrier performance scorecards contain a list of relevant attributes (perhaps the same attributes used to select carriers) and an evaluation of each carrier on every attribute. The performance scorecard could be used as a diagnostic tool;

Ease of handling is one of the four factors used to determine a product's freight classification. Answer: True True True The nature of the product can affect the level of customer service that should be offered. Answer: True True True Best in Class companies tend to use transportation scorecards less frequently than other companies. Answer: False False False Leverage refers to the high importance, low

Fifty pounds is a significant weight in many logistics systems because it represents the approximate weight at which there is a noticeable increase in injuries. Answer: True True True Many grocery chains target in-stock rates of 90 percent for individual stores so that sufficient substitutes exist for a customer to purchase a substitute item rather

Discuss the concept of stockout costs. How can a stockout cost be calculated? Answer: Stockouts refer to situations where customers demand items that are not immediately available and stockout costs refer to the costs associated with not having items available. Calculation of a stockout cost first requires a company to classify potential

Communication with employees is more important for facility closings than for facility relocations. (False) Answer: False False False First and foremost, procurement's objectives must manage the purchasing process effectively and efficiently. Answer: False False False Order information is checked for completeness and accuracy in the order processing component of the order cycle. Answer: True True True One low-cost suggestion for improving warehousing productivity is

Supply chain integration tends to be more challenging in global, as opposed to domestic, supply chains. Answer: True True True When taking an activity-based costing approach, firms consider all the costs that can be assigned to the acquisition, use, and maintenance of a purchase. Answer: False False False Dependability consists of consistent order cycles, safe delivery, and consistent delivery. Answer: True True True A material's

With respect to supply chains, relevancy focuses on an organization's ability to respond to changes in demand with respect to volume and variety. Answer: False False False Bottleneck refers to the low importance, low complexity category of Kraljic's Portfolio Matrix. Answer: False False False It might not be unusual for cargo handlers in some countries to be illiterate. Answer: True True True Tactical information sharing

In terms of ABC analysis of inventory, no more than 25% of items should be classified as "A's." Answer: False False False The level and degree of transportation regulation varies from country to country. Answer: True True True Continuous improvement refers to a process that continuously identifies, understands, and adapts outstanding processes found inside and outside an organization. Answer: False False False Motivation of warehousing

There are suggestions that consultant fees for ERP implementations may be three times as costly as the software itself. Answer: True True True In vendor-managed inventory, the size and timing of replenishment orders are the responsibility of the manufacturer. Answer: True True True Leagility refers to a supply chain that combines the lean and agile paradigms. Answer: True True True A perfect order simultaneously achieves