15) Universal Exports has several crates it needs to send from the United Kingdom to North
Korea. They have located a firm that specializes in transferring cargo to the actual carrier that
will bring the crates into North Korea. This firm could be described as:
A) an interlocuter.
B) a customs broker.
C) a freight forwarder.
D) a mercenary.
16) Which of these statements about reverse logistics is BEST?
A) Reverse logistics systems are usually less cost-efficient than forward-based systems.
B) Reverse logistics systems are usually designed to be less flexible than forward-based systems.
C) Reverse logistics systems usually play no role in customer satisfaction.
D) Reverse logistics systems usually use the same processes and players that comprise the
forward-based system.
17) Your new Garden Weasel fails to “completely satisfy” you so you decide to return it for a
full refund. What is the name for the system that will carry your weasel back to the
manufacturer?
A) upstream logistics
B) reverse ordering
C) upstream ordering
D) reverse logistics
18) A(n) ________ can handle shipments on an as-needed basis with no long-term contract
required.
19) The complicated gift basket was delivered exactly as it was designed and in plenty of time to
be enjoyed during seasonal celebrations. From a logistics performance standpoint, the product
could be considered a(n) ________.
20) What is a perfect order and what are five elements that might comprise such a measure?
21) The landlord’s favorite place to buy shrimp in New Orleans was the Cajun Seafood market
on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun
double house he bought as an investment a few years ago. Sadly, it was 685 miles one way to
visit the property and even though gas was available at $1.88 per gallon and the car achieved 25
miles per gallon, it was an expensive and lengthy trip. The cheapest plane tickets that were
routinely available cost $199 round trip, but occasionally there was a super sale where the price
dropped lower than that. He always packed a cooler with $12 worth of ice regardless of how
much shrimp he actually bought. The shrimp were a bargain at $7.99 per pound for jumbos and
he always tried to fit 35 pounds of the crustaceans in the cooler. What is the price of round trip
airfare that would make the landed cost of a pound of shrimp the same for both driving and
flying and what is that landed cost?
22) Compare the advantages and disadvantages of ownership of logistics assets. What factors
should be considered when deciding whether to own or outsource the assets needed to execute
the logistics function?
Learning Objective 8-4
1) In order for the weighted center of gravity method to yield an optimal solution all of the
transportation costs in the area must be identical.
2) The solution obtained from an assignment problem is an optimal answer to the problem of
shipping goods from multiple sources to multiple destinations.
3) In order for the assignment problem method to yield an optimal solution all of the
transportation costs in the area must be identical.
4) Acme wants to locate a warehouse to serve their major customers that are shown in the table.
What is the location that will minimize the transportation costs for their family of products?
Customer
Annual Volume
X-Coordinate
Y-Coordinate
Coyote, LLC
25
3
7
Destry
13
5
2
Kingston Inc.
6
8
4
Ed Wood Productions
4
1
5
A) Near (3,4)
B) Near (4,5)
C) Near (5,6)
D) Near (6,5)
5) The Times-Picayune is searching for an ideal spotting station for the morning paper.
Neighborhoods, their location on an XY grid of the city, and morning volume are shown in the
table. What is the location that will minimize the transportation costs for the newspaper?
Customer
Annual Volume
Y-Coordinate
Florida
250
7
Desire
125
5
Lafitte
178
3
Iberville
264
5
Guste
137
6
CJ Peete
55
4
A) Near (3.1,4.6)
B) Near (4.3,5.8)
C) Near (2.5,5.2)
D) Near (6.4,2.5)
6) The Times-Picayune is searching for an ideal spotting station for the morning paper.
Neighborhoods, their location on an XY grid of the city, and morning volume are shown in the
table. What is the location that will minimize the transportation costs for the newspaper?
Customer
Annual Volume
Y-Coordinate
Florida
7
7
Desire
39
5
Lafitte
245
3
Iberville
116
5
Guste
55
6
CJ Peete
284
4
A) Near (3.0, 4.5)
B) Near (4.5, 5.0)
C) Near (2.5, 2.5)
D) Near (1.5, 4.0)
7) Using the map and annual volumes shown next to each location, what is the BEST location for
a central warehouse that can be used to service all of the locations?
A) Near (2,3)
B) Near (3,2)
C) Near (3,4)
D) Near (4,3)
Plants A, B, C, and D produce the same item that is demanded by customers W, X, Y, and Z.
Customer demand and plant capacity are shown in the bottom row and rightmost column in the
table. The cost to ship one unit between each combination of plants and customers is also shown
in the table. The corporation wishes to minimize the total transportation costs of this assignment
problem. Use the table to answer the following questions.
W
X
Y
Z
Total Supply
A
$3
$6
$4
$2
22,000
B
$7
$10
$8
$6
19,000
C
$10
$13
$11
$9
14,000
D
$12
$15
$13
$11
15,000
Total
Demand
25,000
15,000
18,000
12,000
8) Refer to the scenario above. What is a suitable constraint?
A) Minimize Cost = $3∗SAW + $6∗SAX + $4∗SAY + $2∗SAZ
B) Minimize Cost = $3∗SAW + $7∗SBW + $10∗Scw + $12∗SDW
C) SAW + SBW + SCW + SDW ≤ 25,000
D) SAW + SAX + SAY + SAZ ≤ 22,000
9) Refer to the scenario above. Which of these is part of an appropriate objective function?
A) $12∗DW + $15∗DX + $13∗DY + $11∗DZ
B) -$3∗AW – $7∗BW – $10∗CW – $12∗DW
C) CW + CX + CY + CZ = 14,000
D) CW + CX + CY + CZ ≤ 14,000
Plants in Vienna, Lucerne, Bruhl, and Salzburg produce the same item that is demanded by
customers in London, Paris, Milan, and Athens. Customer demand and plant capacity are shown
in the bottom row and rightmost column in the table. The cost to ship one unit between each
combination of plants and customers is also shown in the table. The corporation wishes to
minimize the total transportation costs of this assignment problem. Use the table below to answer
the following questions.
London
Paris
Milan
Athens
Total Capacity
Vienna
$19
16
3
8
600
Lucerne
15
17
17
13
500
Bruhl
13
18
18
7
400
Salzburg
16
18
18
7
470
Total
Demand
500
450
620
400
10) Refer to the scenario above. What is a suitable constraint?
A) Minimize Cost = $19∗SVL + $16∗SVP + $3∗SVM + $8∗SVA
B) Minimize Cost = $19∗SVL + $15∗SLL + $13∗SBL + $16∗SSL
C) SBL + SBP + SBM + SBA ≤ 400
D) 3∗SVM + 17∗SLM + 18∗SBM + 18∗SSM = 620
11) Refer to the scenario above. What of these equations would be part of the appropriate
objective function?
A) $19∗SVL + $16∗SLL + $3∗Sbl + $8∗SSL
B) SBL + SBP + SBM + SBA
C) $19∗SVL + $16∗SVP + $3∗SVM + $8∗SVA
D) 3∗SVM + 17∗SLM + 18∗SBM + 18∗SSM
12) Each of the four production sites ships ten units to each of the four customers. What is the
cost of this initial trial shipment plan?
A) $1960
B) $2080
C) $2120
D) $2230
13) The assignment model assumes that:
A) there are no economies of scale in shipping from one point to another.
B) the total amount shipped must exceed plant capacity.
C) the total amount shipped must not exceed demand at each location.
D) negative shipment quantities are acceptable as long as they are balanced by a positive
shipment elsewhere.
14) A location model that looks at the problem of serving various demand points from multiple
supply points at the lowest cost is the ________.
15) A producer of action figures is in a quandary about where to locate a central warehouse that
will serve all of their regional centers for the coming millennium. They have predicted average
annual demands for the following locations in the table.
Location
Demand
X-Coordinate
Y-Coordinate
Gotham City
200
9
8
Metropolis
500
7
5
Central City
800
5
5
Gateway City
600
0
5
Capitol City
150
8
6
Where should they locate their central warehouse?
16) The Times-Picayune is searching for an ideal spotting station for the morning paper.
Neighborhoods, their location on an XY grid of the city, and morning volume are shown in the
table. What is the location that will minimize the transportation costs for the newspaper?
Customer
Annual Volume
X-Coordinate
Y-Coordinate
Florida
7
3
7
Desire
39
7
5
Lafitte
245
1
3
Iberville
116
2
5
Guste
55
1
6
CJ Peete
284
1
4
Plants in Vienna, Lucerne, Bruhl, and Salzburg produce the same item that is demanded by
customers in London, Paris, Milan, and Athens. Customer demand and plant capacity are shown
in the bottom row and rightmost column in the table. The cost to ship one unit between each
combination of plants and customers is also shown in the table. The corporation wishes to
minimize the total transportation costs of this assignment problem. Use this tidy table to answer
the following questions.
London
Paris
Milan
Athens
Total Capacity
Vienna
$19
16
3
8
600
Lucerne
15
17
17
13
500
Bruhl
13
18
18
7
400
Salzburg
16
18
18
7
470
Total Demand
500
450
620
400
17) Refer to the scenario above. What is the objective function?
18) Refer to the scenario above. Formulate an appropriate objective function and constraints to
model this as an assignment problem.
19) Plants A, B, C, and D produce the same item that is demanded by customers W, X, Y, and Z
in the amounts shown in the table. The cost to ship one unit between each combination of plants
and customers is also shown in the table. The corporation wishes to minimize the total
transportation costs of this assignment problem.
What are the decision variables?
What is the objective function?
What are the constraints?
W
X
Y
Z
Total Supply
A
$3
$6
$4
$2
22,000
B
$7
$10
$8
$6
19,000
C
$10
$13
$11
$9
14,000
D
$12
$15
$13
$11
15,000
Total Demand
25,000
15,000
18,000
12,000