Warehouses emphasize the rapid movement of products through a facility and attempt
to maximize throughput.
Answer:
The effective and efficient use of information allows organizations to either reduce
costs or improve customer satisfaction.
Answer:
Sweatshops are organizations that exploit workers and that do not comply with fiscal
and legal obligations towards employees. (True)
Answer:
One reason for the growth of the supplier development concept is that achieving
competitive advantage in the supply chain is predicated on purchasers adopting a more
aggressive approach.
Answer:
The processing point for a weight-losing raw material can be anywhere between the
source and the market. (False)
Answer:
Psychic stock is associated with retail stores.
Answer:
Certain products should not, for safety or health reasons, be packaged together.
Answer:
The primary purpose of a nontariff barrier is to encourage exports.
Answer:
Pipelines are a unique mode of transportation because it is the only one without
vehicles.
Answer:
Postponement is the delay of value-added activities such as assembly, production, and
packaging to the latest possible time.
Answer:
Free trade zones must be adjacent to a port or an airport. (False)
Answer:
A “box maker’s certificate” assures that boxes are free from any visible defects.
Answer:
The origin of ERP systems can be traced back to finance and manufacturing.
Answer:
Turnover rates for expatriate workers currently range between 20% and 40%. (True)
Answer:
Back and shoulder injuries are the most frequent injuries among warehousing
personnel.
Answer:
Enhanced communications across organizations in a supply chain is only dependent on
the technological capabilities of the organizations
Answer:
A product just being introduced needs a different level of service support than one that
is in a mature or declining market stage.
Answer:
Right-to-work laws mean that every person who wants a job is guaranteed a job. (False)
Answer:
According to the balanced scorecard approach, the financial perspective is considered
the best indicator of whether or not logistics strategy is being properly implemented and
executed.
Answer:
From a shipper’s perspective, a non-vessel operating common carrier (NVOCC) is a
carrier; from an ocean carrier’s perspective, an NVOCC is a shipper.
Answer:
Safety stock refers to inventory that is held in addition to cycle stock to guard against
uncertainty in demand and/or lead time.
Answer:
The measures associated with the balanced scorecard can be at a strategic or tactical
level.
Answer:
Strategist Michael Porter identified three generic strategies that can be pursued by an
organization, namely, cost leadership, differentiation, and value enhancement.
Answer:
Travel time accounts for a majority of an order picker’s total pick time.
Answer:
Global procurement refers to buying components and inputs anywhere in the world.
Answer:
Marketing goals in areas such as product availability, desired customer service levels,
and packaging design have limited influence on logistics decisions.
Answer:
Obsolete materials have no economic value.
Answer:
The Optimal Cost Reliability Model is used by many managers to classify corporate
purchases in terms of their importance and supply complexity.
Answer:
Order processing often represents the best opportunity to improve the effectiveness and
efficiency of the order cycle.
Answer:
Export packers custom pack shipments when the exporter lacks the equipment or
expertise to do so itself.
Answer:
Trade shows, trade publications, and the Internet are sources that can be used to identify
possible suppliers.
Answer:
The two prominent supply chain management frameworks are the Supply Chain
Operations Reference (SCOR) model and the Process Classification Framework (PCF).
Answer:
Experts recommend that the best pilferage policy should be based on zero tolerance.
Answer:
The systems approach indicates that a company’s objectives can be realized by
recognizing the mutual interdependence of the major functional areas of a firm.
Answer:
A decision to invest in an electronic data interchange system that would increase
invoice accuracy should result in a lower amount of accounts receivable.
Answer:
The number of times that inventory is sold in one year is referred to as average
inventory.
Answer:
Safety stock can prevent against two problem areas: An increased rate of demand and
longer-than-normal replenishment.
Answer:
What organization regulates the packaging of international air shipments?
a. International Air Transport Association
b. United Nations
c. World Trade Organization
d. International Chamber of Commerce
Answer:
The ownership channel consists of all parties except:
a. customers
b. manufacturers
c. wholesalers
d. retailers
Answer:
Which of the following is not a routine occurrence in global supply chains?
a. documentation errors
b. incomplete shipments
c. routing errors
d. packaging errors
e. all of the above are routine occurrences
Answer:
A ____ strategy entails an organization developing a product and/or service that offers
unique attributes that are valued by customers and that the customer perceives to be
distinct from competitor offerings.
a. focus
b. differentiation
c. value enhancement
d. market orientation
Answer:
A primary advantage of ____ logistics is its relative efficiency, whereas a primary
advantage of ____ logistics is its customer responsiveness.
a. unified; fragmented
b. unified; decentralized
c. centralized; decentralized
d. fragmented; centralized
Answer:
Which of the following is not open for negotiation in a bilateral air agreement?
a. the carriers that will service particular city pairs
b. the types of aircraft to be used
c. the number of flights between the two countries
d. the total number of seats to be offered
e. all of the above are open for negotiation
Answer:
How do data and information differ?
a. data are a body of facts in a format suitable for decision making, while information is
simply facts
b. they are the same
c. data are simply facts; information is a body of facts in a format suitable for decision
making
d. data are associated with decision support systems; information is associated with
ERP systems
Answer:
Tailored business relationships between two supply chain members refer to:
a. supply chain partnership
b. supply chain management
c. coopetition
d. tailored logistics
Answer:
____ pipelines carry crude oil from gathering-line concentration points to the oil
refineries.
a. product
b. trunk
c. arterial
d. collection
Answer:
The National Motor Freight Classification currently has 18 separate ratings, or classes,
that range for Class 50 to Class ____
a. 300
b. 400
c. 500
d. 600
e. none of the above
Answer:
____ refers to the short distance movement that usually takes place within the confines
of a building such as a plant or distribution center and between a building and a
transportation service provider.
a. physical distribution
b. materials management
c. warehousing
d. materials handling
Answer:
____ refers to “how we do things around here” and reflects an organization’s vision,
values, and strategic plans.
a. supply chain management
b. organizational behavior
c. a mission statement
d. corporate culture
Answer:
In a ____ logistics structure, logistics activities are managed in multiple departments
throughout an organization.
a. unified
b. fragmented
c. decentralized
d. matrix
Answer:
What is a perfect order?
a. simultaneous achievement of relevant customer metrics
b. an order that arrives on time
c. an order that arrives undamaged
d. an order that is easy for the receiver to fill
Answer:
What concept refers to “how well company resources are used to achieve what a
company promises it can do?”
a. Efficiency
b. Productivity
c. Reengineering
d. Effectiveness
Answer:
The percentage of orders that can be completely and immediately filled from existing
stock is the ____ rate.
a. optimal inventory
b. order cycle
c. perfect order
d. order fill
Answer:
Which of the following is not a barrier to supply chain management?
a. regulatory and political considerations
b. lack of top management commitment
c. reluctance to share, or use, relevant data
d. incompatible corporate cultures
e. all of the above are barriers
Answer:
Warehouse management systems represent an example of what general type of
information management system?
a. communication system
b. transaction processing system
c. decision support system
d. office automation system
Answer:
____ stock refers to inventory that is held in addition to cycle stock to guard against
uncertainty in demand and/or lead time.
a. base
b. pipeline
c. speculative
d. buffer
Answer:
With FOB destination, freight prepaid ____.
a. the buyer pays the freight charges, but the seller owns the goods in transit
b. the buyer pays the freight charges and owns the goods in transit
c. the seller pays the freight charges and owns the goods in transit
d. the seller pays the freight charges, but the buyer owns the goods in transit
Answer:
What are multichannel marketing systems?
a. channels that have multiple intermediaries between the producer and the consumer
b. separate marketing channels that serve an individual customer
c. channels that do business in multiple countries
d. channels that combine horizontal and vertical marketing systems
Answer:
____ is the actual, physical movement of goods and people between two points.
a. logistics
b. transportation
c. materials handling
d. materials management
Answer:
Which of the following is not a basic type of demand forecasting model?
a. exponential smoothing
b. cause and effect
c. judgmental
d. time series
e. all of the above are basic types of forecasting models
Answer:
The Importer Security Filing (ISF) rule requires importers to file ____ pieces of
information and carriers to file ____ pieces of information.
a. 10; 2
b. 5; 5
c. 2; 10
d. 4; 8
Answer:
Although nearly any organization can be part of a supply chain, supply chain
management requires ____.
a. the involvement of third-party logistics companies
b. the participation of world-class organizations
c. at least one organization to be a multinational company
d. companies to adopt an enterprise-to-enterprise point of view
Answer:
Incoterms are generally revised approximately every ____ years.
a. 25
b. 20
c. 10
d. 5
Answer:
The creation across the supply chain and its markets of a coordinated flow of demand is
the definition of ____.
a. order cycle
b. order management
c. demand management
d. supply chain management
Answer:
A(n) ____ rate refers to a specific rate for every possible combination of product,
weight, and distance.
a. exception
b. ad valorem
c. commodity
d. class
Answer:
Cargo preference rules ____.
a. are synonymous with embargoes
b. indicate how each shipment should be loaded into a transport vehicle
c. indicate a shipper’s preferred carrier(s)
d. require a certain percentage of traffic to move on a nation’s flag vessels
e. none of the above
Answer:
Which of the following represents the preferred hierarchy of strategy (i.e., from the first
strategy to be developed to the last to be developed)?
a. corporate→business unit→functional
b. functional→business unit→corporate
c. corporate→business unit→divisional
d. business unit→divisional→functional
Answer:
Which of the following is not one of the generic strategies that can be pursued by an
organization, as identified by strategist Michael Porter?
a. value enhancement
b. differentiation
c. cost leadership
d. focus
e. all of the above are generic strategies
Answer:
The return rates for online purchases is approximately ____ percent
a. 20
b. 25
c. 30
d. 35
e. none of the above
Answer:
Define what is meant by a landed cost and explain its relevance for pricing decisions.
Answer:
Distinguish between a fixed order quantity and fixed order interval system. Which one
generally requires more safety stock? Why?
Answer:
This chapter suggests that technology has been at the center of changes taking place
that affect the supply chain. Do you agree or disagree? Why?
Answer:
As a general rule, the same types of supervision can be used for both warehouse
workers and truck drivers.
Answer:
Discuss the disadvantages to public warehousing.
Answer:
Which option should Terim recommend? Why?
Answer:
What is the Logistics Performance Index? How can it be used?
Answer:
Discuss the postponement concept as it relates to the production and logistics interface.
Answer:
Assume that Ballenger has switched to the JIT system and that he receives a surprise
phone call from a competitor who is going out of business. The competitor wants to sell
Ballenger 7,000 dome lights of the type listed on Exhibit 3-C. Should Ballenger buy
them? If so, at what price?
Answer:
Discuss the factors that make supplier selection and evaluation difficult.
Answer:
The year 2013 is nearly half over. J.Q. is told to determine how much the firm is likely
to spend for warehousing at each of the eight warehouses for the last six months of
2013. Do his work for him.
Answer:
ISO 9000 involves organizations benchmarking themselves against organizations from
outside their particular industry.
Answer:
Should investment recovery be the responsibility of the procurement manager? If yes,
why? If not, which party (parties) should be responsible for investment recovery?
Answer:
Define what is meant by economic regulation. Why is transportation economic
deregulation important?
Answer:
Why is transportation important to a firm’s supply chain operations?
Answer:
You work for the motor carrier classification bureau and notice that the relationship
between the weight of potato chips and the weight of packaging has changed. How, it at
all, should this influence changes in the product’s classification?
Answer:
In what ways is the legislation requiring 100 percent scanning of U.S.-bound containers
likely to be disruptive to international trade?
Answer:
Define what is meant by a cost trade-off. Do you believe that this concept is workable?
Why or why not?
Answer: