Ease of handling is one of the four factors used to determine a product’s freight
classification.
Answer:
The nature of the product can affect the level of customer service that should be offered.
Answer:
Best in Class companies tend to use transportation scorecards less frequently than other
companies.
Answer:
Leverage refers to the high importance, low complexity category of Kraljic’s Portfolio
Matrix.
Answer:
The current ratio is calculated by dividing total current liabilities by total current assets.
Answer:
A community can encourage or discourage business activity through changes in the
zoning classifications of land. (True)
Answer:
One benefit to transportation management systems is fewer stockouts.
Answer:
Since economic deregulation, transportation carriers are no longer constrained with
respect to the variety of service they can offer.
Answer:
Customer profitability analysis is grounded in traditional accounting cost allocation
methods.
Answer:
Forecasting accuracy refers to the relationship between the actual and forecasted
demand.
Answer:
A rate is the logistics term that signifies the price charged for freight transportation.
Answer:
Failure to comply with labeling guidelines can result in surcharges, administrative fees,
or penalty charges.
Answer:
Relational changes cannot be successful without information sharing among various
participants.
Answer:
Incoterms 2010 now divides terms of sale into two groups, one of which applies to any
mode of transport and the other which applies to sea and inland water transport only.
Answer:
EDI is an example of a logistics-related transaction processing system.
Answer:
Owners’ equity is the difference between what a company owns and what it owes at any
particular point in time.
Answer:
Freight forwarders are the same thing as freight brokers.
Answer:
Transportation accounts for about one-half of all petroleum consumption in the United
States.
Answer:
One benefit to procurement cards is that they are easily used outside their domestic
market.
Answer:
Lean manufacturing focuses on the elimination of waste.
Answer:
The decision to use third-party logistics companies can be driven by strategic or tactical
considerations.
Answer:
An expatriate is a person who is not allowed to work outside his (her) home country.
(False)
Answer:
Text messaging and the Internet have lessened the need for telephone interaction and
face-to-face contact between seller and customer.
Answer:
Consumers are demanding about the same levels of service today as in years past.
Answer:
The physical characteristics of some goods change while they are moving in the
logistics channel.
Answer:
Automatic guided vehicles (AGVs) are an example of mechanized materials handling
equipment.
Answer:
The organization of logistics activities within a firm depends on a number of factors,
including the number and location of customers and an organization’s size.
Answer:
Procurement’s historical focus in many organizations was to minimize the total number
of outside suppliers.
Answer:
With respect to asset turnover, inventory is typically the most relevant logistics asset.
Answer:
The five most populous states in the United States were the same in 1980 and 2010.
(False)
Answer:
In the U.S., motor carriers have the largest share of ton-miles.
Answer:
Bilateral agreements liberalize international aviation opportunities and limit federal
government involvement.
Answer:
Activities that can be controlled by a warehouse management system include inventory
management, determination of storage locations, and order shipping.
Answer:
Because transportation costs tend to be lower per unit of weight for larger shipments,
there is a natural motivation to consolidate smaller shipments into larger ones.
Answer:
Hours-of-service rules and speed limits have generally been justified on the basis of
operational efficiency.
Answer:
A benefit to multiple sourcing is increased cooperation and communication in a supply
relationship.
Answer:
Freight forwarders sell freight at a higher rate per pound than they pay carriers to haul
it.
Answer:
Because greater uncertainties, misunderstandings, and delays often arise in international
movements, safety stocks must be larger.
Answer:
“Timely” information can refer to its nature and quality.
Answer:
What is a fourth-party logistics provider?
a. a company that ensures that various third-party logistics companies are working
toward the relevant supply chain goals and objectives
b. a third-party logistics provider that has achieved ISO 9000 certification
c. a logistics intermediary that specializes in one logistics activity such as warehousing
or transportation
d. a third-party logistics provider that has been in existence for at least 25 years
Answer:
What is the formula for asset turnover?
a. total sales divided by total assets
b. net profit divided by total assets
c. return on assets divided by total assets
d. return on investment divided by return on net worth
Answer:
Procurement’s historical focus in many organizations was to ____.
a. incur minimal supply disruptions
b. use a limited number of suppliers
c. minimize loss and damage
d. achieve the lowest possible cost
Answer:
A(n) ____ entails the functional units of an organization providing input into the other
levels of strategy formulation.
a. supply chain
b. interfunctional cooperation
c. hierarchy of strategy
d. enterprise resource system
Answer:
Which of the following is not a potential procurement objective?
a. minimizing procurement costs
b. supporting organizational goals and objectives
c. managing the supply base
d. supporting operational requirements
e. all of the above are potential objectives
Answer:
The most costly logistics activity in many firms is ____
a. industrial packaging
b. transportation management
c. order management
d. warehousing management
Answer:
Weight times rate equals ____.
a. density
b. transportation cost
c. stowability
d. volume
e. none of the above
Answer:
Rail gauge refers to ____.
a. the allowable speed on a particular segment of track
b. the thickness of rail track
c. the length of rail track
d. the distance between the inner sides of two parallel rail tracks
Answer:
What two countries account for approximately one-third of the world’s population?
a. China and Indonesia
b. India and the United States
c. China and India
d. the United States and China
Answer:
Which of the following is not a factor used to determine a product’s classification?
a. density
b. liability to damage and theft
c. stowability
d. ease of handling
e. all of the above are factors used to determine a product’s classification
Answer:
A cost trade-off is a situation where:
a. all costs react according to their individual degrees of inflation in the economy
b. all costs are reflected as a percentage variation from standard costs
c. some costs increase and some costs decrease
d. some costs are eliminated by efficient management controls
Answer:
The ____ reflects the assets, liabilities, and owners’ equity at a given point in time.
a. balanced scorecard
b. balance sheet
c. income statement
d. annual report
Answer:
____ is the most reliable form of transportation.
a. rail
b. motor carrier
c. pipeline
d. air
e. water
Answer:
Firms that specialize in carrying packages that weigh up to 150 pounds are called ____.
a. couriers
b. accessorial carriers
c. parcel carriers
d. expedited carriers
Answer:
Which of the following is not a component of ordering (order) costs?
a. costs of preparing invoices
b. costs of receiving orders
c. costs of verifying inventory availability
d. costs of conducting a credit check
e. all are components of ordering (order) costs
Answer:
Which forecasting technique assumes that one or more factors are related to demand
and that this relationship can be used to estimate future demand?
a. exponential smoothing
b. judgmental
c. cause and effect
d. time series
Answer:
Which of the following is not a characteristic of contemporary voice-based order
picking systems?
a. easily disrupted by other noises
b. better voice quality than earlier systems
c. more powerful than earlier systems
d. less costly than earlier systems
e. all of the above are characteristics of voice-based order picking systems
Answer:
Warehousing labor safety practices in the United States are monitored by which federal
government agency?
a. Warehousing Safety Administration
b. Department of Commerce
c. Food and Drug Administration
d. Consumer Product Safety Commission
e. none of the above
Answer:
Which organizational function is not a focus of the Supply Chain Operations Reference
(SCOR) model?
a. marketing
b. logistics
c. operations
d. procurement
e. all of the above are a focus in the SCOR Model
Answer:
An organization’s ability to respond to changes in demand with respect to volume and
variety refers to ____.
a. responsiveness
b. leanness
c. agility
d. relevancy
Answer:
Transportation accounts for approximately ____ of all petroleum consumption in the
United States.
a. three-quarters
b. two-thirds
c. one-half
d. one-third
Answer:
Which of the following is not true of sachets?
a. they can be easier to lose
b. they are more prone to theft
c. different packaging is needed
d. they tend to be sold in higher-income countries
e. all of the above are true
Answer:
____ is generally the fastest form of transportation for shipments exceeding 600 miles.
a. less-than-truckload motor carriers
b. air
c. parcel carriers
d. truckload motor carriers
Answer:
____ refer to major ports where thousands of containers arrive and depart each week.
a. load centers
b. break-bulk centers
c. consolidation points
d. hubs
Answer:
____ create and maintain consistent data processing methods and an integrated database
across multiple business functions.
a. logistics information systems
b. enterprise systems
c. decision support systems
d. transaction processing systems
Answer:
Which of the following is not a possible method of order transmittal?
a. in-person
b. mail
c. fax
d. electronic
e. all of the above are methods of order transmittal
Answer:
Which of the following is not a legal classification of carriers?
a. exempt
b. contract
c. common
d. private
e. all of the above are legal classifications
Answer:
With respect to gift giving and gift receiving, ____ refers to money paid before an
exchange.
a. a kickback
b. agglomeration
c. a bribe
d. dovetailing
Answer:
____ strategy is focused on determining the goals for the company, the types of
businesses in which the company should compete, and the way the company will be
managed.
a. functional-level
b. business unit-level
c. divisional-level
d. corporate-level
Answer:
A unit load involves ____.
a. a convoy of rail cars carrying the same product
b. loading an entire vehicle with shipments from three or fewer shippers
c. the usage of a pallet rack system of storage
d. consolidation of several units into larger units to improve efficiency in handling and
to reduce shipping costs
Answer:
A ____ logistics organization means that logistics-related decisions are made separately
at the divisional or product group level.
a. fragmented
b. decentralized
c. flexible
d. agile
Answer:
A ____ is used in areas where dockworkers cannot read but need a method to keep
documents and shipments together.
a. RFID tab
b. shipper’s mark
c. shipment coordinator
d. bar code
Answer:
Private transportation is most prevalent in the ____ industry.
a. pipeline
b. trucking
c. railroad
d. airline
Answer:
Discuss international terms of sale and Incoterms.
Answer:
ISO 14000 is a set of generic standards used to document, implement, and demonstrate
quality management and assurance systems.
Answer:
Using the EOQ methods outlined in the chapter, how many kegs of nails should Low
order at one time?
Answer:
Carrying costs are 20%. Is there a level of carrying costs at which both Ballenger’s
present system and a JIT system have similar costs? If so, what is it?
Answer:
How many Style B shades can be loaded into a 40-foot container?
Answer:
Discuss the SCOR and GSCF models of supply chain management.
Answer:
Some companies are hesitant to use frequent shopper cards because the data provided
could violate the customer’s privacy. Do you agree or disagree? Why?
Answer:
What are the three general functions of packaging? How might they come into conflict?
Answer:
What makes is difficult for managers to achieve the proper balance of inventory?
Answer:
Discuss three potential procurement objectives.
Answer:
Name the six general types of information systems, and give one logistics application
for each one that you”ve named.
Answer:
What is an online reverse auction? Why do buyers like them?
Answer:
On the basis of the policy in your answer to Question 3, develop instructions for the
Johnson Toy Company distribution and accounting departments with respect to their
roles and procedures in the handling of returns.
Answer:
Explain the four ways that warehousing facilitates the regrouping function.
Answer:
How do transportation considerations influence facility location decisions?
Answer:
In a decentralized logistics structure, logistics activities are managed in multiple
departments throughout an organization.
Answer: