The U.S. railroad industry is dominated by four freight carriers.
Answer:
Because customer needs and wants change relatively quickly, supply chains should be
fast and lean.
Answer:
As a general rule, companies prefer to carry less inventory as the carrying cost
percentage decreases.
Answer:
The primary influence of logistics activities on sales would be through the improvement
of customer service.
Answer:
The Global Supply Chain Forum (GSCF) Model identifies eight relevant processes
associated with supply chain management.
Answer:
Reductions in economic regulation allowed individual transportation companies
flexibility in pricing and service.
Answer:
Goals are the means by which objectives are achieved.
Answer:
Order bills of lading can be used when faced with slow-paying customers.
Answer:
Increases in warehousing productivity require significant investment in technology or
mechanized or automated equipment.
Answer:
The hierarchy of strategy entails the functional units of an organization providing input
into the other levels of strategy formulation.
Answer:
Products that move by airfreight tend to be high in value and tend to require urgent
delivery.
Answer:
An early step in the facility location decision should involve determining the total
number of facilities that a firm should operate. (True)
Answer:
Labor wage rates appear to be a key locational determinant as supply chains become
more global in nature. (True)
Answer:
Diversity and philanthropy are two dimensions of socially responsible procurement.
Answer:
One drawback of cross-docking is that it increases the amount of necessary
warehousing space.
Answer:
A key change in the order delivery component of the order cycle is that more and more
shippers are emphasizing both the elapsed transit time and transit time variability.
Answer:
Supply chain agreements should be designed to reward all participants when
collaborative ventures are successful and all participants should share the consequences
when these ventures are less successful than desired.
Answer:
Pipeline stock is inventory that is en route between various fixed facilities in a logistics
system.
Answer:
Polyvinyl chloride (PVC), commonly referred to as vinyl, is considered a friendly
plastic because it has few, if any, potential side effects.
Answer:
Strategy at a business unit level is primarily focused on the types of businesses in which
the company should compete and the way the company should be managed.
Answer:
Satisfactory service recovery tends to increase a customer’s willingness to recommend
the offending organization; unsatisfactory service recovery magnifies the initial failure.
Answer:
In a reverse auction, one seller invites bids from multiple buyers.
Answer:
Superior logistics service can have a positive influence on an organization’s financial
performance.
Answer:
Expediting refers to determining a shipment’s location during the course of its move.
Answer:
There are four different modes of transportation.
Answer:
The return rates associated with e-commerce are quite similar to those associated with
other kinds of retailing.
Answer:
Private transportation is most prevalent in the pipeline industry.
Answer:
Tariffs refer to taxes that governments place on the importation of certain items.
Answer:
The EOQ is the point at which carrying costs equal ordering costs.
Answer:
A shipper’s letter of instruction contains relevant export transaction data such as the
transportation mode(s), transaction participants, and description of what is being
exported.
Answer:
Today’s transportation manager can play an active role in blending the appropriate
pricing and service packages for his / her organization.
Answer:
The order triage function refers to correcting mistakes that may occur with order
picking.
Answer:
The sorting function has four steps.
Answer:
The primary advantage for motor carriers is flexibility (the ability to deliver the product
to the customer).
Answer:
Over the past quarter century, discussion of natural resources and facility location has
increasingly factored in environmental and sustainability considerations. (True)
Answer:
The class rate system simplifies with respect to three primary factorsdensity, product,
and distance.
Answer:
The documentation requirements for international shipments can act as a nontariff
barrier to trade.
Answer:
A ____ often serves as the basis for a country’s official export statistics.
a. shipper’s export declaration
b. carnet
c. certificate of origin
d. commercial invoice
Answer:
What is the first step in a global sourcing development model?
a. planning
b. specification
c. situation analysis
d. problem recognition
Answer:
Under conditions of certainty, a reorder point is equal to ____.
a. average daily demand times the length of the replenishment cycle
b. safety stock plus an EOQ
c. base stock plus safety stock
d. base stock minus safety stock
Answer:
____ refers to a process where a product is received in a facility, occasionally married
with product going to the same destination, and then shipped at the earliest time,
without going into longer-term storage.
a. just-in-time
b. cross-docking
c. accumulation
d. agglomeration
Answer:
Which of the following statements regarding perishable products is false?
a. they require special storage
b. they require special monitoring
c. they require special loading
d. they require special packaging
e. all of the above are true
Answer:
The ability of logistics management to satisfy users in terms of time, dependability,
communication, and convenience is the definition of ____.
a. customer service
b. the order cycle
c. a perfect order
d. customer satisfaction
Answer:
A 3,047 meter (10,000 foot) runway is significant because it ____.
a. is generally viewed as adequate for accommodating the largest existing wide-body
aircraft
b. is the longest that can be used worldwide due to safety regulations
c. represents the longest runway in the world
d. is only found in economically developed countries
e. none of the above
Answer:
Supplier parks are a concept that developed around ____ and their suppliers in Europe.
a. supermarkets
b. apparel makers
c. computer makers
d. automakers
Answer:
____ transportation occurs when two or more modes work closely together in an
attempt to utilize the advantages of each mode while at the same time minimizing their
disadvantages.
a. intermodal
b. bifurcated
c. intramodal
d. collaborative
Answer:
“How well a company does what it says it’s going to do” represents ___________.
a. efficiency
b. productivity
c. leading edge logistics
d. effectiveness
Answer:
Which mode is not the “best” or “worst” on any of the six attributes (e.g., capability,
flexibility, etc.) that were used to compare the modes?
a. railroads
b. water carriers
c. pipelines
d. motor carriers
Answer:
All of the following are true except ____.
a. countries with low labor costs often have a multitude of sweatshops
b. there has been a decrease in maquiladoras in recent years
c. a workforce’s union status may be a key locational determinant for some
organizations
d. expatriate work assignments can be costly
e. all of the above are true
Answer:
Suppose that AAA decides to near-source production to Latin America. Keeping in
mind the key stipulation presented in the case, where might AAA locate its production
plant in Latin America? Why?
Answer:
Which of the following is an advantage of a centralized logistics organization?
a. less expensive than a decentralized organization
b. good opportunities for freight consolidation
c. can be responsive to customer service requirements
d. easier to manage than a decentralized organization
Answer:
What is the primary difference between pilferage and theft?
a. there is no difference between the two
b. pilferage involves a firm’s own employees, while theft involves efforts from outsiders
c. theft refers to stolen merchandise worth more than $500
d. pilferage refers to stolen merchandise worth more than $500
Answer:
____ refers to materials used for the containment, protection, handling, delivery, and
presentation of goods.
a. materials management
b. materials handling
c. procurement
d. packaging
Answer:
____ refers to the computer-to-computer transmission of business data in a structured
format.
a. big data
b. enterprise resource planning systems
c. electronic data interchange
d. data mining
Answer:
Which of the following is false?
a. pure materials lose no weight in processing
b. with weight-gaining products the processing point should be close to the market
c. water is a requirement for the location of many facilities
d. a 250,000 square foot distribution center might require at least 50 acres of land for
construction purposes
e. all of the above are true
Answer:
What is dunnage?
a. a slang term for a particular type of ocean liner
b. a type of packaging material that is placed inside of boxes
c. material that is used to block and brace products inside carrier equipment
d. additional transportation fees that are charged to small shippers
Answer:
The U.S. ____ is the federal government body with primary responsibility for
transportation safety regulation.
a. Interstate Commerce Commission
b. Department of Commerce
c. Department of Homeland Security
d. Department of Transportation
Answer:
The ____ has been established to identify uncertainty sources that can affect the risk
exposure for logistics activities.
a. Logistics Uncertainty Index
b. Logistics Uncertainty Pyramid Model
c. Logistics Risk Consortium
d. Logistics Risk Factor
Answer:
____ looks at how long an organization’s cash is tied up in receivables, payables, and
inventory.
a. cash-to-cash cycle
b. cash flow
c. gross margin return on investment
d. current ratio
Answer:
All of the following statements are true, except:
a. the importance of individual carrying costs factors (categories) is generally consistent
from product to product
b. inventory carrying costs consist of a number of different components or factors
c. in general, companies prefer to carry less inventory as carrying costs increase
d. in general, inventory carrying costs are expressed in percentage terms
d. all of the above are true
Answer:
____ refers to the time from when the seller receives an order until an appropriate
location is authorized to fill the order.
a. order processing
b. order cycle
c. order management
d. order transmittal
Answer:
Which of the following is false?
a. some organizations have expanded the order management concept to include the
length of time it takes an organization to receive payment for an order
b. the order cycle should be analyzed in terms of total cycle time and cycle time
variability
c. order management has been profoundly impacted by advances in information
systems
d. the various activities associated with an order cycle are not uniformly agreed upon
e. all of the above are true
Answer:
The primary advantage of ____ is that enables a firm to test the feasibility of proposed
changes at relatively little expense.
a. data mining
b. expert systems
c. simulation
d. artificial intelligence
Answer:
____ refers to a network of satellites that transmits signals that pinpoint the exact
location of an object.
a. global positioning systems
b. geographic information systems
c. the National Security Agency
d. electronic data interchange
Answer:
____ refers to how heavy a product is in relation to its size.
a. stowability
b. volume
c. weight
d. density
Answer:
The order cycle is ____.
a. the time that it takes for a check to clear
b. the time that it takes from when a customer places an order until the selling firm
receives the order
c. also called the replenishment cycle
d. also called the vendor cycle
Answer:
Which of the following is not a source of income for international freight forwarders?
a. payment for freight pick up and delivery
b. buying space wholesale and selling it retail
c. commissions on shipping revenues generated for carriers
d. fees for document preparation and performing research
d. all of the above are sources of income
Answer:
Is there an interest rate that would make HDT change from one routing to another? If
so, what is it?
Answer:
Distinguish between the straight bill of lading and the order bill of lading.
Answer:
Wayne is also considering rental of a forklift to use in truck unloading. A team of only
two would be needed, but the hourly cost would be $38 per hour ($28 for the workers
and $10 for the forklift). They could unload a truck in five minutes. Should Wayne rent
the forklift?
Answer:
What is the difference between a lean and an agile supply chain? Under which
circumstances is each an appropriate supply chain approach to pursue?
Answer:
How do truckload operations differ from less-than-truckload operations?
Answer:
Distinguish among warehouses, distribution centers, and cross-docking facilities.
Answer:
Which of the two routing alternatives would you recommend? Why?
Answer:
J.Q. is aggressive and is going to recommend that his father cancel the contract with
one of the warehouses and give that business to a competing warehouse in the same
city. J.Q. feels that when word of this gets around, the other warehouses they use will
“shape up.” Which of the seven should J.Q. recommend be dropped? Why?
Answer:
Discuss advantages and disadvantages to grid systems such as the center-of-gravity and
weighted center-of-gravity approaches.
Answer:
What is pick-to-light technology and how can it improve order picking?
Answer:
Explain why quality-of-life issues should be considered in the facility location decision.
Answer:
For each of the four work team sizes, what is the probability that a truck cannot be
unloaded immediately?
Answer:
Discuss how logistics decisions affect asset turnover in an organization.
Answer:
What is an NVOCC?
Answer:
How does logistics strategy connect to overall corporate strategy? Is it a one-way or
two-way connection?
Answer:
What benefits are associated with transportation and warehouse management systems?
Answer:
Do you agree or disagree that return on assets is a good way to examine operational
efficiency? Why?
Answer:
With respect to the natural resources needed to make wickable shirts, is Patna or
Lucknow the preferred location? Why?
Answer:
Do you think corporate cultures are relevant for supply chain management? Why or
why not?
Answer:
What are some of the challenges of implementing a global sourcing strategy?
Answer: