Complementary products can be defined as inventories that can be used or distributed
together, such as razor blades and razors.
Answer:
A contemporary procurement manager might have responsibility for reducing cycle
times and for generating additional revenues by collaborating with the marketing
department.
Answer:
Absolute and relative logistics costs in relation to Gross Domestic Product vary from
country to country.
Answer:
Biodegradable plastics cost approximately three times as much as conventional plastics.
Answer:
The customer service metrics that are chosen should be relevant and important from the
customer’s perspective.
Answer:
The bill of lading is an invoice, submitted by the carrier, requesting to be paid.
Answer:
The United States has the highest hourly compensation rates in the world. (False)
Answer:
Logistics performance is important for achieving competitive advantage for many
firms.
Answer:
Terrorism can be viewed as an illegal use of or threat of force or violence made by a
group or an individual against a person, a company, or somebody’s property with a goal
of menacing the target, often grounded in politics or ideology.
Answer:
Customers are not included as a component of supply chains.
Answer:
Superior logistics is an essential component of corporate strategies for many big-box
retailers.
Answer:
U.S. commercial airline pilots face mandatory retirement at age 70.
Answer:
A commonly used logistical intermediary is the freight forwarder.
Answer:
A one-dock warehouse layout, in contrast to a two-dock layout, increases the space
needed for storage docks.
Answer:
Less-than-truckload shipments range from about 150 to 10,000 pounds.
Answer:
Demand forecasting is not considered to be a logistics-related activity.
Answer:
The income statement is the same thing as the balance sheet.
Answer:
Trade-offs must be made among space, labor, and mechanization with respect to
warehousing design.
Answer:
One requirement of a fixed order quantity system is that the inventory must be
constantly monitored.
Answer:
Implementation is often a major shortcoming of many global procurement plans.
Answer:
Radio-frequency identification is the most popular automatic identification system
currently in use.
Answer:
The range of inventory carrying costs in the United States in the twenty-first century
has been between 22 and 27 percent.
Answer:
People-related factors such as employee resistance have been identified as a major
cause of information technology implementation failure.
Answer:
A commonsense approach is to fill an order from the facility location that is closest to
the customer, with the idea that this should generate lower transportation costs as well
as a shorter order cycle time.
Answer:
The higher the average cost of a stockout, the more likely a company is going to want
to hold some amount of inventory (safety stock) to protect against stockouts.
Answer:
The European Union’s expansion into Central and Eastern European countries has seen
Hungary become a favored distribution site because of its relatively central geographic
location. (False)
Answer:
Research indicates a positive benefit to aligning functional strategies such as marketing
or logistics with the overall corporate strategy.
Answer:
Transit time reliability is the most important factor that shippers tend to use when
selecting carriers.
Answer:
Approximately 10% of all warehousing fires in recent years were sent intentionally.
Answer:
The main benefit of shippers’ association is one-stop shopping.
Answer:
Vendor-managed inventory can only be applied to consumer, and not industrial,
products.
Answer:
Government considerations such as the relevant legal system, political stability, and
protectionism are important when companies are thinking of facility location in
non-domestic countries. (True)
Answer:
Single sourcing consolidates purchase volume with a single supplier in hopes of
increasing cooperation and communication in the supply relationship as well as ____.
a. greater supply risk mitigation
b. increased amounts of competition
c. improved market intelligence
d. lower costs per unit
Answer:
Which of the following is an advantage of a decentralized logistics organization?
a. less expensive than a centralized organization
b. good opportunities for freight consolidation
c. better control over company data
d. can be responsive to customer service requirements
Answer:
The cost of sending a shipment by air transportation from China to the United States
can be ____ times more expensive than sending a shipment by water transportation
between the two countries.
a. 2-4
b. 4-6
c. 6-8
d. 8-10
Answer:
Hours-of-service (HOS) rules and speed limits have long been justified in the motor
carrier industry on the basis of ____.
a. cost efficiency
b. customer requirements
c. operational efficiency
d. safety concerns
Answer:
____ refers to stocks of goods and materials that are maintained for many purposes, the
most common being to satisfy normal demand patterns.
a. logistics
b. supply chain management
c. inventory
d. production
Answer:
With respect to the design of warehouses, one suggestion for energy savings is to make
sure that dock doors are not placed on the ____ of a building.
a. west
b. east
c. north
d. south
Answer:
Depending on industry and product type, reverse logistics costs as a percent of revenue
can range between ____ and ____ percent.
a. 5; 10
b. 4; 8
c. 3; 6
d. 2; 4
Answer:
Supply chain collaboration can be classified as transactional, strategic, or ____ in
nature.
a. operational
b. superorganizational
c. managerial
d. tactical information sharing
Answer:
Which of the following is not a logistical consequence of packaging inefficiency?
a. increased loss
b. increased damage
c. higher storage costs
d. slower materials handling
e. all of the above are logistical consequences
Answer:
Short-sea shipping is widely accepted and practiced in ____.
a. North America
b. South America
c. Europe
d. Asia
Answer:
In a (n) ____ approach, all relevant software applications are provided by a single
vendor.
a. single integrator
b. captive customer
c. customer centric
d. information outsourcing
Answer:
Which of the following is not one of the three critical factors associated with the
process of managing returned goods?
a. why products are returned
b. whether returned goods should be managed internally or outsourced to a third party
c. how to optimize reverse logistics
d. how many products are returned
Answer:
Order transmittal is ____.
a. the same thing as an order cycle
b. the series of events that occur between the time a customer places an order and the
time the seller receives the order
c. the series of events that occur between the time a customer perceives the need for
something and the time the seller receives the order
d. the series of events between the time a customer places an order and the time the
order cycle begins
Answer:
___________ utility refers to the value or usefulness that comes from a customer being
able to take possession of a product.
a. Time
b. Place
c. Form
d. Possession
Answer:
Which of the following is true?
a. computer software for demand forecasting dates back over 40 years
b. one challenge to collaborative planning, forecasting, and replenishment is getting
supply chain partners to share data
c. the Excel software package generates forecasts that have very little error
d. SAP is the most widely used software package for demand forecasting
e. all of the above are true
Answer:
____ refers to separating products into grades and qualities desired by different target
markets.
a. assorting
b. sorting out
c. allocating
d. accumulating
Answer:
Which of the following is not one of the processes in the Supply Chain Operations
Reference (SCOR) model?
a. source
b. plan
c. make
d. enable
e. all of the above are processes in the SCOR Model
Answer:
Warehousing and ____ are substitutes for each other.
a. transportation
b. materials handling
c. packaging
d. inventory management
e. none of the above
Answer:
____ is often a major shortcoming to many global procurement plans.
a. monitoring and improving
b. specification
c. implementation
d. evaluation
Answer:
World trade grew at an average annual rate of approximately ____ percent between
1991 and 2011.
a. 5.5
b. 4.5
c. 3.5
d. 2.5
Answer:
Brokers are intermediaries that are commonly associated with the ____ channel.
a. promotions
b. finance
c. ownership
d. negotiation
Answer:
The supply chain management concept originated in what discipline?
a. marketing
b. operations
c. logistics
d. production
Answer:
Which of the following is not a type of benefits that comes from electronic
procurement?
a. transactional benefits
b. management information benefits
c. compliance benefits
d. production benefits
e. all of the above are benefits
Answer:
____ refers to rapidly moving a shipment through a carrier’s system.
a. expediting
b. recoupering
c. fast logistics
d. cross-docking
Answer:
Which of the following statements is false?
a. with respect to stockouts, a delayed sale is virtually costless to a company because of
the customer’s brand loyalty
b. the higher the average cost for a stockout, the more inventory (safety stock) that
should be held
c. tradeoffs exist between carrying costs and stockout costs
d. stockouts can be more costly than having too many items in stock
e. all of the above are true
Answer:
____ are stores with large amounts of both floor space and product for sale.
a. mass merchandisers
b. power retailers
c. big-box retailers
d. do-it-yourself (DIY) retailers
Answer:
The time span within which an order must arrive refers to ____.
a. transit time reliability
b. order delivery
c. delivery window
d. transit time
Answer:
Which of the following statements is false?
a. the initial focus in facility location is on a region
b. because manufacturing plants and warehousing can be very expensive to lease or
build, companies are hesitant to close them
c. poorly located facilities do not impact logistical effectiveness
d. poorly located facilities negatively impact logistical efficiency
e. all of the above are true
Answer:
A transportation broker _____.
a. looks to match a shipper’s freight with a carrier to transport it
b. deals only with agricultural products
c. is the same as a freight forwarder
d. tends to be spun off from carriers or management consulting firms
Answer:
In the United States, ____ account for the largest share of ton-miles and ____ account
for the majority of freight revenues.
a. railroads; railroads
b. trucks; trucks
c. trucks; railroads
d. railroads; truck
Answer:
When comparing performance during the first five months of 2013 with performance in
2012, which warehouse shows the most improvement?
Answer:
What are the two key components of an income statement?
Answer:
How might different organizational functions have different inventory management
objectives?
Answer:
Why are some firms considering near-sourcing?
Answer:
Discuss some of the key political restrictions on cross-border trade.
Answer:
Explain how common sense can be helpful in terms of warehousing design.
Answer:
Discuss the Customs Trade Partnership Against Terrorism (C-TPAT).
Answer:
Discuss what is meant by ABC analysis of inventory. What are several measures that
can be used to determine ABC status?
Answer:
If Terim puts together this transaction, is he acting ethically? Discuss.
Answer:
What are some potential challenges to improving productivity by getting more output
from existing assets?
Answer:
Responsiveness refers to satisfying current and emerging customer needs.
Answer:
How should Fosdick respond to the immediate situation?
Answer:
Discuss the various handling characteristics associated with bulk cargoes.
Answer:
How has a reduction in economic regulation contributed to the increased importance of
logistics?
Answer:
What is the difference between relational and transactional exchanges? Which is more
relevant for supply chain management? Why?
Answer:
What are the two primary purposes of export packing?
Answer: