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235) Which of the following statements regarding supply chains is most accurate?
A) The most common form of supply chain is the collaborative-response efficiency strategy.
B) In order for a supply chain to work effectively, key decisions should be made by a third-party
logistics provider.
C) The longer the supply chain, the greater the economies of scale and the better the profit
margin.
D) Supply chains should consider the needs of suppliers, provided those needs are consistent
with marketing strategies.
E) Supply chain managers often need to make trade-offs between efficiency and responsiveness.
236) The objective of logistics management in a customer-driven supply chain is to minimize
logistics costs while
A) satisfying suppliers.
B) maximizing profits.
C) maximizing supply chain membership.
D) delivering the appropriate level of customer service.
E) maximizing supply chain inefficiency.
237) Expenses associated with transportation, materials handling and warehousing, inventory,
stockouts (being out of inventory), order processing, and return products handling are referred to
as
A) supplier service cost.
B) manufacturing cost.
C) total logistics cost.
D) social responsibility cost.
E) total supply chain cost.
238) Total logistics cost refers to
A) the design, installation, and maintenance of in-store displays, cabinets, and freestanding
promotional materials for retail outlets.
B) expenses associated with activities performed by brokers and agents to bring buyers and
sellers together.
C) expenditures associated with the clerical or bookkeeping side of the procurement process,
which include purchase, design, and maintenance of the EDI system.
D) expenses associated with product adaptations that are made by the manufacturer in response
to the needs of a channel member closest to the consumer.
E) expenses associated with transportation, materials handling and warehousing, inventory,
stockouts, order processing, and return products handling.
Figure 12-9
239) Figure 12-9 indicates that supply chain managers must balance total logistics cost factors
against customer service factors. The six total logistics cost factors (A, B, C, D, E, and F) include
all of the following except which?
A) order processing
B) materials handling and warehousing
C) time
D) inventory
E) transportation
240) Figure 12-9 indicates that supply chain managers must balance total logistics cost factors
against customer service factors. The four customer service factors (W, X, Y, and Z) include all
of the following except which?
A) communication
B) dependability
C) convenience
D) warehousing
E) time
241) Which of the following is an element of total logistics cost?
A) new-product development
B) stockouts
C) advertising
D) personal selling
E) market research
242) Which of the following best describes the goal for a firm's inventory and transportation
costs?
A) Focus more on minimizing required inventory costs.
B) Focus more on minimizing required transportation costs.
C) Minimize the sum of inventory and transportation costs.
D) Maximize the difference between required inventory and transportation costs.
E) Set a level of transportation costs and minimize the required inventory costs.
243) For logistics, the customer service concept suggests that firms should
A) automate customer service.
B) maximize customer service levels.
C) minimize customer service levels.
D) minimize total logistics costs and let customer service be handled by the retailer.
E) satisfy users in terms of time, dependability, communication, and convenience.
244) In the context of a supply chain, customer service refers to
A) adhering to the belief that the customer is always right.
B) satisfying the customers' needs no matter what the price.
C) accepting full liability if a product fails to meet a customer's expectations.
D) the ability of logistics management to satisfy users in terms of time, dependability,
communication, and convenience.
E) the ability of retailers to satisfy users in terms of product, price, promotion, and place.
245) Within the context of a supply chain, ________ is the ability of a logistics system to satisfy
users in terms of time, dependability, communication, and convenience.
A) quick response
B) customer service
C) distribution management
D) efficient consumer response
E) lead time
246) Time, dependability, communication, and convenience are all important concepts of
________, within the context of the supply chain.
A) customer service
B) supplier service
C) wholesaler service
D) retailer service
E) stakeholder service
247) Supply chain managers balance total logistics cost factors against customer service factors.
Customer service factors include
A) reliability, flexibility, consistency, and dependability.
B) time, dependability, communication, and convenience.
C) consistency, responsiveness, durability, and communication.
D) time, assurance, responsiveness, and dependability.
E) convenience, flexibility, time, and value.
248) The output of a supply chain is the
A) units of products delivered.
B) total generated revenue.
C) service delivered to customers.
D) total number of customers served.
E) total profits realized.
249) Which of the following statements regarding supply chain customer service is most
accurate?
A) The output of a supply chain is measured in total units sold.
B) Customer service must be balanced against total logistics cost factors.
C) The output of a supply chain is measured either in total units sold or total number of
customers served.
D) A firm's goal should be to provide superior customer service regardless of costs.
E) Customer service is the responsibility of marketing channel members and not the supplier
network.
250) The time from ordering an item until it is received and ready for use or sale is referred to as
A) order cycle time.
B) order handling time.
C) order-to-ship duration.
D) purchase cycle.
E) logistics cycle.
251) Order cycle time is
A) the time between when an order is placed and when payment is received.
B) the time between the sale of the first production batch to the sale of the next production batch.
C) the cycle between one full warehouse shipment to the next full warehouse shipment.
D) the time between the ordering of an item and when it is received and ready for use or sale.
E) the average time between reorders by a given wholesaler or retailer in the marketing channel.
252) Another name for order cycle time is
A) physical distribution sequence.
B) total logistics cycle.
C) replenishment time.
D) logistical support time.
E) billing cycle.
253) In a supply chain setting, replenishment time refers to lead time for an item, which means
the time between the ordering of an item and when it is
A) billed to the customer.
B) acknowledged by the customer.
C) billed and paid for by the customer.
D) promised for delivery.
E) received and ready for use or sale.
254) The typical order cycle includes all of the following elements except which?
A) order processing
B) transportation
C) cross-docking
D) documentation
E) order transmittal
255) At Saks Fifth Avenue, point-of-sale scanner technology records each day's sales. When
stock falls below a minimum level, a replenishment order is automatically produced. Vendors
such as DKNY receive the order, which is processed and delivered within 48 hours. This system
has effectively reduced
A) dependability.
B) product flow.
C) replenishment time.
D) supply lag.
E) logistical lag.
256) Inventory management systems that are designed to make the process of reordering and
receiving products as simple as possible are referred to as
A) order replenishment systems.
B) quick response systems.
C) customer logistics factors.
D) minimum-inventory systems.
E) web-based response systems.
257) An efficient consumer response system refers to
A) an order replenishment system that maintains a 10 percent inventory rate at all times in order
to guarantee there will never be stockouts.
B) an online virtual inventory storage program that allows firms to enter in minute-by-minute
information in order to avoid stockouts due to unforeseen environmental forces.
C) a computer program that allows even the smallest manufacturer to manage its inventory
system.
D) an inventory management system that is designed to make the process of reordering and
receiving products as simple as possible.
E) an exclusive contractual agreement between delivery services such as FedEx or UPS to
deliver expedited orders at a special low rate, regardless of the day and time.
258) Another name for quick response systems is
A) order replenishment systems.
B) customer logistics factors.
C) minimum-inventory systems.
D) web-based response systems.
E) efficient consumer response systems.
259) Dependability is the consistency of replenishment. This is important to all firms in a supply
chain and to consumers. It can be broken into three elements: consistent lead time, safe delivery,
and
A) honest and accurate pricing.
B) quality products.
C) complete delivery.
D) a well-informed delivery staff.
E) product warranties.
260) In logistics, a two-way link between buyer and supplier that helps in monitoring service and
anticipating future needs is referred to as
A) inventory management.
B) dependability.
C) communication.
D) reverse logistics.
E) accountability.
261) Which of the following is an example of communication between buyer and supplier?
A) disintermediation
B) selective distribution
C) reverse logistics
D) forward integration
E) order status reports
