Communication with employees is more important for facility closings than for facility
relocations. (False)
Answer:
First and foremost, procurement’s objectives must manage the purchasing process
effectively and efficiently.
Answer:
Order information is checked for completeness and accuracy in the order processing
component of the order cycle.
Answer:
One low-cost suggestion for improving warehousing productivity is to play music, if
conditions permit.
Answer:
Logistics has played a minor role in the growth of global trade.
Answer:
The total cost of ownership is associated with the system principle of material handling.
Answer:
A differentiation strategy entails an organization developing a product and/or service
that offers unique attributes that are valued by customers and that customers perceive to
be distinct from competitor offerings.
Answer:
The primary advantage of simulation is that it enables a firm to test the feasibility of
proposed changes at relatively little expense.
Answer:
Packaging and materials handling decisions can be made in isolation from other
logistics activities.
Answer:
Transportation represents the most costly logistics activity in many organizations.
Answer:
Supply chain disruptions (e.g., terrorist attacks, natural disasters) have caused some
supply chains to reassess their emphasis on inventory reduction.
Answer:
In essence, multi-client warehousing mixes attributes of private and contract
warehousing.
Answer:
The final step of the supplier selection process is to evaluate the decision.
Answer:
Order fill rate is the percentage of orders that can be completely and immediately filled
from existing stock.
Answer:
Information technology should be regarded as a tool to help managers address
organizational problems.
Answer:
A variable slot location warehousing system may result in low space utilization.
Answer:
Population size is an irrelevant consideration in the facility location decision. (False)
Answer:
When one country’s currency is weak relative to other currencies, it is more costly to
import products into that country.
Answer:
A commonly used metric for measuring container volumes is the TEU (twenty-foot
equivalent unit).
Answer:
Software viruses are viewed as the most important information technology issue that
companies face today.
Answer:
A willingness to share information and buying decisions based on value rather than cost
or price are two characteristics of supply chain partnerships.
Answer:
Supply management refers to a degree of aggressive procurement not normally
encountered in supplier selection.
Answer:
Inventory flow diagrams graphically depict the demand for, and replenishment of,
inventory.
Answer:
A contract carrier is under no obligation to render services to the general public.
Answer:
A fixed order quantity system is more susceptible to stockouts than is a fixed order
interval system.
Answer:
Efficient consumer response (ECR) and collaborative planning, forecasting, and
replenishment (CPFR) are examples of lean inventory approaches.
Answer:
In general, the income statement measures the profitability of the products and/or
service provided by a company.
Answer:
A transaction processing system helps people work together by interacting and sharing
information in many different forms.
Answer:
A reorder point is equal to average daily demand divided by the length of the
replenishment cycle.
Answer:
A commodity rate is very good for dealing with demand-specific situations.
Answer:
Dual distribution refers to an alliance that allows customers to purchase products from
two or more name-brand retailers at one store location.
Answer:
Interfunctional logistics attempts to coordinate materials management and physical
distribution in a cost efficient manner that supports an organization’s customer service
objectives.
Answer:
Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
a. third-party logistics
b. supply chain collaboration
c. dovetailing
d. relationship marketing
Answer:
A key advantage of variable slot locations in a warehouse is ____.
a. increased space utilization
b. better materials handling
c. ease of record keeping
d. more logical and simple product layout
Answer:
The current ratio is calculated by dividing ____ by ____.
a. total current assets; total current liabilities
b. total current liabilities; total current assets
c. total assets; total liabilities
d. total liabilities; total assets
Answer:
Which of the following is not a potential outcome from a supply chain’s failure to be
fast and agile?
a. dissatisfied customers
b. reduced profitability
c. decreased market share
d. lower stock price
e. all of the above are potential outcomes
Answer:
Co-branding allows customers to purchase products from two or more name-brand
retailers at one store location. Which of the following statements about co-branding is
false?
a. they offer potential customers convenience by satisfying needs at one place
b. they boost brand awareness
c. they create relatively few logistical challenges
d. they increase customer spending per transaction
e. all of the above are true
Answer:
Which of the following does not appear on the balance sheet?
a. assets
b. owners’ equity
c. liabilities
d. net income
e. all of the above appear on the balance sheet
Answer:
Which of the following statements about a one-dock layout is false?
a. each and every dock can be used for both shipping and receiving
b. it requires carriers to pick up and deliver at specific times
c. goods move in a straight configuration
e. product may sometimes be reloaded in the vehicle that delivered it
e. all of the above statements are true
Answer:
____ is the process of taking corrective action when measurements indicate that the
goals and objectives of customer service are not being achieved.
a. benchmarking
b. leadership
c. control
d. managing
Answer:
Inventory costs in the United States in the twenty-first century represent approximately
____ of total logistics costs.
a. one-fifth
b. one-fourth
c. one-third
d. one-half
Answer:
An order bill of lading is used ____.
a. for overseas shipments
b. when a shipment must be expedited
c. when a shipment is started before the buyer is known
d. to guard against disruptions in transit
Answer:
Which of the following is not a category associated with Kraljic’s Portfolio Matrix?
a. bottleneck
b. leverage
c. noncritical
d. strategic
e. all of the above are categories associated with Kraljic’s Portfolio Matrix
Answer:
With respect to net profit margin, the most relevant categories for logistics managers to
consider are:
a. sales, costs of goods sold, asset turnover
b. accounts receivable, costs of goods sold, total expenses
c. sales, costs of goods sold, total expenses
d. inventory, accounts receivable, total expenses
Answer:
____ refers to the delay of value-added activities such as assembly, production, and
packaging to the latest possible time.
a. building blocks
b. lean manufacturing
c. deferral
d. postponement
Answer:
With respect to U.S. economic regulation, the ____ has primary responsibility for
resolving railroad rate and service disputes, reviewing potential rail mergers, and some
jurisdiction over motor carriers, domestic water transportation, and pipelines.
a. Surface Transportation Board
b. Interstate Commerce Commission
c. Federal Trade Commission
d. Department of Commerce
Answer:
Which of the following is not a characteristic of advances in order pick technology?
a. fewer picking errors
b. higher pick rates
c. reduced employee turnover
d. fewer employee accidents
e. all of the above are characteristics
Answer:
One problem with a ____ logistics structure is that because logistics activities are
scattered throughout a firm, they likely remain subservient to the objectives of the
department in which they are housed.
a. fragmented
b. matrix
c. decentralized
d. hierarchicial
Answer:
Labor force ____ are a key locational determinant as supply chains become more global
in nature.
a. wage rates
b. size
c. skills
d. age
Answer:
Efficient data mining is dependent upon ____.
a. good forecasting tools
b. top management commitment
c. high-speed technology
d. data warehouses
Answer:
With respect to commodity flows, logisticians are especially interested in ____ and
____.
a. what is being produced; where it is being shipped
b. how much is being produced; where it is being produced
c. how much is being produced; where it is being shipped
d. what is being produced; where it is being produced
Answer:
____ organizational design has its foundations in the command-and-control military
operation, where decision-making and communication often follow a top-down flow.
a. centralized
b. unified
c. matrix
d. hierarchical
Answer:
Approximately ____ of cross-border shipments move by water transportation.
a. 40%
b. 50%
c. 60%
d. 70%
Answer:
The ____ is responsible for the security of the U.S. transportation system.
a. Department of Commerce
b. Department of Transportation
c. Transportation Security Administration
d. U.S. State Department
Answer:
Which of the following is not a dimension associated with socially responsible
procurement?
a. profit
b. safety
c. the environment
d. human rights
e. all of the above are dimensions associated with socially responsible procurement
Answer:
Which of the following is not a benefit to utilizing information in logistics?
a. greater knowledge and visibility across the supply chain
b. greater awareness of customer demand via point-of-sale data
c. better coordination of manufacturing, merchandising, and distribution through ERP
tools
d. more streamlined order processing and reduced lead time
e. all of the above are benefits
Answer:
Which of the following is not a potential challenge of using procurement cards
(p-cards) in non-domestic markets?
a. currency differences
b. cultural issues
c. difference in card acceptance policies
d. availability of technology
e. all of the above are challenges
Answer:
What container size is often used to rank water ports and measure containership
capacity?
a. 48 foot container
b. 40 foot container
c. 20 foot container
e. 10 foot container
Answer:
Which of the following statements is false?
a. carriers may be reluctant to accept small shipments because they require a high
degree of manual labor
b. some carriers believe they lose money on small shipments
c. consolidating small shipments into larger ones could result in poorer service to the
final customer
d. consolidating small shipments into larger ones likely results in higher inventory
carrying costs
e. all of the above are true
Answer:
Channel intermediaries:
a. assume temporary ownership of the goods
b. tend to lack focus
c. fill niches
d. tend to disappear as the market becomes organized
Answer:
Productivity improvement efforts in logistics are often directed towards ____.
a. reducing input while increasing output
b. increasing output by a greater percentage than inputs are increased
c. reducing input while holding output constant
d. increasing output while holding input constant
Answer:
____ refers to building up a variety of different products for resale to particular
customers.
a. accumulating
b. allocating
c. sorting out
d. assorting
Answer:
The economic order quantity (EOQ) deals with calculating the proper order size with
respect to ____ costs and ____ costs.
a. ordering; stockout
b. stockout; carrying
c. accounting; carrying
d. carrying; ordering
Answer:
Which of the following is not a potential type of logistics strategy decisions?
a. investments in technology that support logistics activities
b. selecting appropriate transportation modes
c. deployment of inventory
d. number and location of warehouses
e. all of the above are potential logistics strategy decisions
Answer:
Discuss the potential sources of delays in certain countries with respect to motor carrier
shipments that move across state borders.
Answer:
What is data mining? How might it be used in logistics?
Answer:
(This is a continuation of Question 6.) Assume, instead, that you are the union shop
steward. Develop and present your argument that the free lunches represent a
long-standing employee benefit enjoyed by the distribution center’s employees, and that
management’s attempt to stop them is a breach of an unwritten contract and will be
resisted.
Answer:
Why is the reliability of airfreight transportation somewhat problematic?
Answer:
Why should organizations carefully consider potential trade-offs before adopting a lean
philosophy?
Answer:
Assume that the buyer in Saudi Arabia has made other large purchases in the United
States and is considering consolidating all of its purchases and loading them onto one
large ship, which the buyer will charter. The buyer contacts HDT and, although
acknowledging its commitment to buy FAS Doha, asks how much HDT would subtract
from the $172,000 per truck price if the selling terms were changed to FOB HDT’s
Crown Point plant. How much of a cost reduction do you think HDT should offer the
buyer? Under what terms and conditions?
Answer:
Distinguish between a commodity rate and a class rate.
Answer:
For each of the four work team sizes, calculate the expected number of trucks in the
queue waiting to be unloaded.
Answer:
Is this a customer service problem? Why or why not?
Answer:
Discuss how technological considerations can help in managing truck drivers and their
productivity.
Answer:
Discuss the differences between corporate-level, business-unit level, and
functional-level strategies.
Answer:
Bixby, Booher, and Ortega recognize that Handy Andy needs a better way to learn
about the buyer’s installation experience. One alternative is to add an open-ended
question, dealing with the installation experience, to the warranty activation form.
Another alternative is to e-mail a brief survey about the installation experience within
three to five days of receiving a warranty activation form. Which of these should Handy
Andy choose? Why?
Answer:
What are some of the macro-level information technology challenges that managers
face?
Answer:
How does multiclient warehousing mix attributes of public and contract warehousing?
Answer:
What longer-range steps can Fosdick take to reduce the distribution center’s high rate of
shrinkage?
Answer:
What are some environmental disadvantages to plastic packaging?
Answer:
What is the systems approach to problem solving? How is this concept applicable to
logistics management?
Answer:
Define what is meant by productivity and discuss the ways in which productivity can be
improved.
Answer:
Assume all conditions in Question 1 hold, except that Low’s supplier now offers a
quantity discount in the form of absorbing all or part of Low’s order processing costs.
For orders of 750 or more kegs of nails, the supplier will absorb all the order processing
costs; for orders between 249 and 749 kegs, the supplier will absorb half. What is Low’s
new EOQ? (It might be useful to lay out all costs in tabular form for this and later
questions.)
Answer:
How does vendor-managed inventory differ from traditional inventory management?
Answer: