Fifty pounds is a significant weight in many logistics systems because it represents the
approximate weight at which there is a noticeable increase in injuries.
Answer:
Many grocery chains target in-stock rates of 90 percent for individual stores so that
sufficient substitutes exist for a customer to purchase a substitute item rather than go to
a competing store.
Answer:
The major advantage of the unit load is that it enables mechanical devices to be
substituted for manual labor.
Answer:
A decentralized logistics organization means that logistics-related decisions are made at
the divisional or product group level and often in different geographic areas.
Answer:
Research on underperforming supply chains suggests that logistics can be crucial to
achieving desired levels of supply chain performance.
Answer:
One of the most effective methods of protecting goods from theft or pilferage is to keep
them moving through the system.
Answer:
Maquiladora plants have experienced a resurgence in recent years because of a focus on
manufactured products that depend on fast time to market. (True)
Answer:
Truckload freight moves through a carrier’s terminal(s).
Answer:
Volume refers to how heavy a product is in relation to its size.
Answer:
U.S. freight railroads currently allow 24 hours of free time for unloading rail cars and
48 hours of free time for loading rail cars.
Answer:
It is possible for organizations to use only one customer service metric to measure
customer service.
Answer:
A freight claim must be filed within six months of the shipment’s delivery date.
Answer:
The balance sheet reflects the assets, liabilities, and costs of goods sold at a given point
in time.
Answer:
One logistical challenge with service parts logistics is that it can be extremely difficult
to forecast the demand for the necessary parts.
Answer:
Regulatory considerations represent a bigger obstacle than political considerations to
supply chain management.
Answer:
Cloud-based software allows for a great deal of customization.
Answer:
Electronic procurement uses the Internet to make it easier, faster, and less expensive for
an organization to purchase goods and services.
Answer:
Reverse logistics can be four to five times more expensive than forward logistics.
Answer:
A process strategy refers to management of logistics activities across business units
with a focus on reducing complexity for customers.
Answer:
From a logistics perspective, a network organizational design in logistics is manifested
in terms of relevancy, responsiveness, and flexibility.
Answer:
Liability to damage and theft is viewed as the primary factor in setting a product’s
freight classification.
Answer:
International transportation cannot be effective or efficient without fairly identical
handling equipment being in place at each end of the trip.
Answer:
Dead stock (inventory) refers to product for which there is no sales during a 12-month
period.
Answer:
Not having enough items can be as bad as, and sometimes worse than, having too many
items.
Answer:
Packaging can have both a marketing and logistical dimension.
Answer:
Forklift operators in the United States must be recertified every five years.
Answer:
Fires are a constant threat in warehousing.
Answer:
The idea behind point-of-sale systems is to provide data to guide and enhance
managerial decision making.
Answer:
A fourth-party logistics provider is a supply chain facilitator that has achieved ISO 9000
certification.
Answer:
Sustainable procurement refers to the integration of social and environmental
considerations into all stages of the purchasing process.
Answer:
Four distinct international methods of payment (e.g., letters of credit) exist.
Answer:
Warehousing and packaging are the two areas in logistics systems where the most
energy costs occur.
Answer:
One problem with a fragmented logistics structure is because logistics activities are
scattered throughout the firm, they likely remain subservient to the objectives of the
departments in which they are housed.
Answer:
An amodal shipper refers to the use of a logistics intermediary to make the relevant
transportation decisions.
Answer:
With respect to a commodity’s freight classification, shippers tend to prefer a higher
classification number while carriers tend to prefer a lower classification number.
Answer:
Inventory taxes have become increasingly difficult to collect in part because of a lack of
agreement as to what is meant by inventory. (True)
Answer:
In general, warehousing security can be enhanced by focusing on people, facilities, and
information.
Answer:
Single sourcing consolidates purchase volume with a single supplier with the hopes of
enjoying lower costs per unit.
Answer:
Dunnage refers to charges for accessorial transportation service.
Answer:
The development and implementation of multicountry trade agreements has had
profound impacts on trade patterns. (True)
Answer:
Which of the following statements is false?
a. orders associated with online retailing tend to be for smaller quantities than in-store
retailing
b. online retailing is characterized by open-case, rather than full-case, picking
c. online retailers are challenged by last-mile considerations
d. online retailing and in-store retailing experience similar rates of product return
Answer:
Which of the following statement about ERP is false?
a. In recent years, ERP vendors have begun to provide high-quality application-specific
logistic capabilities
b. ERP implementation costs can easily reach tens of millions of dollars
c. ERP’s origins can be traced back to finance and manufacturing
d. ERP glitches often have a logistical component to them
e. all of the above are true
Answer:
Which of the following is not an environmentally-friendly packaging strategy that firms
might adopt?
a. reduce the amount of packing materials used
b. use more environmentally-friendly packaging materials
c. use reusable containers
d. retain or support services that collect the used package and recycle it
e. all of the above are strategies
Answer:
Incoterms refer to ____.
a. standardized procedures for handling international shipments
b. standardized international trade terminology
c. a specific method of payment for international shipments
d. terms of sale for international shipments
Answer:
A safety data sheet (SDS) is required for ____.
a. all finished goods stored in a warehouse
b. each hazardous product to be stored in a facility
c. all raw materials brought into a firm
d. any product imported into the United States
Answer:
Which of the following is false?
a. the Strategic Profit Model (SPM) can assist the logistics manager in the evaluation of
cash flows and asset utilization decisions
b. the SPM fails to consider the timing of cash flows
c. the SPM is subject to manipulation in the short run
d. the SPM fails to recognize assets that are dedicated to specific relationships
e. all of the above are true
Answer:
Which of the following is not a dimension of customer service?
a. time
b. convenience
c. dependability
d. communication
e. all of the above are dimensions
Answer:
Holding high levels of inventory result in ____ inventory carrying costs and ____
stockout costs.
a. high; high
b. high; low
c. low; high
d. low; low
Answer:
The predominant commodity moved by barge transportation is ____.
a. grain
b. coal
c. iron ore
d. petroleum
Answer:
All are characteristics of private warehousing, except ____.
a. generates high fixed costs for the user
b. feasible when demand patterns are irregular
c. users have a great deal of control
d. may reduce an organization’s flexibility
e. all of the above are characteristics
Answer:
The Worker Adjustment and Retraining Notification (WARN) Act mandates that
employers give ____ days’ notice about plant closings and mass layoffs.
a. 30
b. 60
c. 90
d. 120
e. none of the above
Answer:
Inventory turnover can be calculated by ____.
a. dividing the cost of goods sold by average inventory
b. dividing average inventory by the costs of goods sold
c. multiplying average inventory by 1.5
d. adding beginning and ending inventory and then dividing by two
e. none of the above
Answer:
Which of the following is not one of the three primary factors that transportation rates
are based upon?
a. product
b. density
c. weight
d. distance
Answer:
The primary advantage to land bridge service is ____.
a. less loss and damage
b. reduced transit times
c. lower transportation cost
d. improved reliability
Answer:
How important, if at all, is it for N.A.M. to ship via water to show its support of the
European Union’s Motorways of the Seas concept?
Answer:
Which of the following is not a characteristic of plastic packaging?
a. lack of versatility
b. takes a long time to biodegrade
c. plastic is dependent on petroleum
d. plastic litter can kill marine animals
e. all of the above are characteristics of plastic packaging
Answer:
What is the most frequent source of injuries among warehousing personnel?
a. heart attacks
b. assault by other warehousing personnel
c. leg wounds from forklifts
d. back and shoulder injuries
Answer:
Which of the following is not a potential benefit to vendor-managed inventory?
a. reduced order errors
b. improved demand forecasts
c. reduced inventories
d. fewer stockouts
e. all are VMI benefits
Answer:
The processing point for a weight-losing raw material ____.
a. can be anywhere near the source and the market
b. should be near its source
c. should be near the final market
d. should be equidistant between the source and the market
Answer:
Each of the following is true, except ____.
a. the bill of lading is the most important transportation document
b. the bill of lading adds to the complexity of the transportation manager’s job
c. the straight bill of lading contains the name of the consignee
d. the order bill of lading does not contain the name of the consignee
e. all of the above are true
Answer:
Classifying orders according to pre-established guidelines so that a company can
prioritize how orders are to be filled refers to ____.
a. ABC analysis
b. order management
c. order processing
d. order triage
Answer:
____ signifies the price charged for freight transportation.
a. fare
b. tariff
c. rate
d. revenue
Answer:
Which of the following is false?
a. package labeling is usually done at the end of the assembly line
b. pictures are preferable to words for labeling a product
c. labeling regulations may differ from country to country
d. labeling requirements within a particular country can vary from state to state
(province to province)
e. all of the above are true
Answer:
Kraljic’s Portfolio Matrix ____.
a. provides a framework for evaluating warehousing decisions
b. is used by many managers to classify corporate purchases in terms of their
importance and supply complexity
c. allows managers to evaluate whether to add, or not add, product lines
d. is synonymous with the total cost of ownership
Answer:
Each of the following is true, except ____.
a. Schneider National is an example of a truckload carrier
b. in truckload shipments, the shipper loads and the consignee unloads the trailer
c. a truckload shipment involves only one customer
d. truckload carriers focus on shipments of greater than 10,000 pounds
e. all of the above are true
Answer:
Which channel covers the movement of title to the goods?
a. promotions
b. logistics
c. finance
d. ownership
Answer:
With respect to a commodity’s freight classification, shippers tend to prefer a ____
classification number and carriers tend to prefer a ____ classification number.
a. lower, lower
b. lower, higher
c. higher, lower
d. higher, higher
Answer:
Which of the following are not an attribute of supply chain partnerships?
a. mutual trust
b. increased willingness to share information
c. buying decisions based on value as opposed to cost or price
d. compatible goals
e. all of the above are attributes of supply chain partnerships
Answer:
The text suggests that ____ often represents the best opportunity to improve the
effectiveness and efficiency of an order cycle.
a. order transmittal
b. order picking and assembly
c. order delivery
d. order processing
Answer:
When one country’s currency is weak relative to other currencies, ____.
a. it becomes more costly to import products to the country, but its exports surge
b. both imports and exports surge
c. it becomes more costly to export products from the country, but its imports surge
d. it becomes more costly to import and export products
Answer:
With respect to asset turnover, ____ is typically the most relevant logistics asset.
a. warehousing
b. inventory
c. transportation equipment
d. materials handling equipment
Answer:
Freight forwarders ____.
a. are the same as shippers’ associations
b. consolidate the shipments of several carriers
c. represent the consignees’ interests
d. consolidate the shipments of several shippers
Answer:
What advances in telecommunications technology do you view as being most beneficial
to logistics management? Why?
Answer:
From a logistical perspective, the Transportation Security Administration and the
Department of Transportation are two of the most important government entities that
were incorporated into the Department of Homeland Security.
Answer:
If the JIT system is adopted, what changes, if any, should occur in the relationships
between Ballenger’s firm and his suppliers of components? Discuss.
Answer:
What are substitute items, and how might they affect safety stock policies?
Answer:
What are several areas in which finance and logistics might interface?
Answer:
Would you make the same routing recommendation for the second, larger (199 buses)
component of the order, after the initial 90-day deadline is met? Why or why not?
Answer:
Discuss several issues that influence the organization of logistics activities within a
firm.
Answer:
Explain the significance of the fact that the purpose of logistics is to meet customer
requirements.
Answer:
What is the relationship between demand management, order management, and
customer service?
Answer:
Define supplier development and explain why it is becoming more prominent in some
organizations.
Answer:
Discuss the role of ocean carrier alliances in international logistics.
Answer:
Discuss the differences between a supply chain and supply chain management.
Answer:
Describe some of the devices that are used to monitor conditions during the journey that
a shipment makes.
Answer:
Discuss why contract warehousing is a preferred alternative for many organizations.
Answer:
Discuss how multicountry trade agreements have influenced the location of production
or distribution facilities.
Answer:
Distinguish between fixed and variable slot locations. How might they affect
warehousing design?
Answer: