Supply chain integration tends to be more challenging in global, as opposed to
domestic, supply chains.
Answer:
When taking an activity-based costing approach, firms consider all the costs that can be
assigned to the acquisition, use, and maintenance of a purchase.
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Dependability consists of consistent order cycles, safe delivery, and consistent delivery.
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A material’s angle of repose refers to the size of angle that would be formed by the side
of a conical stack of that material.
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Different organizational functions, such as marketing and production, tend to have
similar inventory management objectives.
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An order bill of lading specifies the consignee.
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Narrower aisles can increase the space utilization of a facility.
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Supply chains are a new concept in the sense that they were first identified in the 1970s
and 1980s.
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One assumption of the basic EOQ model is a continuous, constant, and known rate of
demand.
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Depending on the industry and product type, reverse logistics costs as a percentage of
revenues can range between 2 and 4 percent.
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The Transportation Worker Identification Credential (TWIC) uses biometric data to
exclude certain workers from secure areas at ports and terminals.
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Clean and sanitary warehousing facilities can have a positive impact on employee
safety, morale, and productivity.
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Humanitarian logistics represents an emerging application of logistics to not-for-profit
organizations.
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Long production runs sometimes result in excessive inventory of products with limited
demand for them.
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Some transportation managers utilize performance scorecards that contain a list of
relevant attributes and an evaluation of each carrier on every attribute.
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Many well-run companies view warehousing as a strategic consideration and as a
potential source of competitive advantage.
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Some countries conduct inspections of trucks as they move from one state to another.
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Investment recovery is often the responsibility of the finance manager.
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When applying performance measures to logistics activities, determination of the key
measures should be tailored to the individual organization and level of decision making.
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Top management is sometimes hesitant to fully commit to supply chain management.
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The relevance, importance, and challenges associated with socially responsible
procurement are likely to lessen in the coming years.
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Horizontal integration refers to where one organization owns multiple participants in a
supply chain.
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Network complexity refers to the growing number of nodes and the associated changes
to the links in logistics systems.
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Long-term assets have a useful life of more than two years.
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A general rule of thumb is that the actual time to implement an ERP system may range
from 1 to 2 times longer than the time period specified by the ERP vendor.
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Inventory valuation on an international scale is difficult because of continually
changing exchange rates.
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There are few logistical similarities between online and in-store retailing.
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Wal-Mart and its vendors make extensive use of data mining to improve supply chain
efficiency and effectiveness.
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Logistics is only concerned with forward flows, that is, those directed towards the point
of consumption.
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Ergonomics refers to the interaction between workers and workplace conditions.
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In the United States, the majority of pallets are made of wood.
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In terms of container throughput, Shanghai is the world’s busiest container port.
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The boomerang effect refers to variability in demand orders among supply chain
members.
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About 25% of customers who experience a problem with purchases of less that $5 will
not do business with that company again.
Answer:
What is considered to be the biggest drawback to public warehousing?
a. high fixed cost to user
b. lack of safety regulation
c. lack of locational flexibility
d. lack of control by the user
Answer:
Which of the following is not a trade-off in warehousing design?
a. two-dock versus single-dock layout
b. build up versus build out
c. order picking versus order taking functions
d. degree of warehouse automation
e. all of the above are trade-offs in warehousing design
Answer:
Which of the following statements is false?
a. detention is similar to demurrage, except that detention applies to pipelines
b. demurrage is a penalty payment made to a railroad for keeping equipment beyond the
time it should be released
c. averaging agreements can be used with demurrage
d. carriers and shippers can negotiate demurrage / detention policies
e. all of the above are true
Answer:
____ refers to the allocation of revenues and costs to customer segments or individual
customers to calculate the profitability of the segments or customers.
a. customer profitability analysis
b. net present value
c. customer lifetime value
d. activity-based costing
Answer:
____ complexity refers to the growing number nodes and the associated changes to the
links in the logistics system.
a. process
b. range
c. network
d. system
Answer:
____ stock is carried to stimulate demand.
a. base
b. psychic
c. speculative
d. attractive
e. none of the above
Answer:
A ____ logistics organization implies that the corporation maintains a single logistics
department that administers the related activities for the entire company from the home
office.
a. centralized
b. hierarchical
c. unified
d. command-and-control
Answer:
____ are taxes that governments place on the importation of certain items.
a. tariffs
b. surcharges
c. reciprocities
d. embargoes
Answer:
The economic order quantity (EOQ) determines ____.
a. the point at which a company should reorder
b. the point at which carrying costs equal ordering costs
c. the point at which the sum of carrying costs and ordering costs is maximized
d. the relevant inventory flow for a particular time period
e. none of the above
Answer:
Which of the following is not a reason for the increased importance of logistics?
a. growing power of manufacturers
b. reduction in economic regulation
c. globalization of trade
d. technological advances
e. all of the above are reasons
Answer:
With respect to density, a vehicle loaded with ____ is most likely to cube out (cubic
capacity is filled before reaching its weight capacity).
a. grain
b. coal
c. soybeans
d. gravel
Answer:
Which of the following is not one of the perspectives evaluated in the balanced
scorecard approach?
a. customers
b. internal business processes
c. learning and growth
d. financial
e. all of the above are perspectives in the balanced scorecard approach
Answer:
A major drawback to metal and plastic pallets is their ____.
a. lifespan
b. price
c. weight
d. incompatibility with existing forklifts
Answer:
What is the most important purpose of warehouse work rules?
a. to control pilferage
b. to keep employees from engaging in unproductive and potentially destructive
activities
c. to protect companies from union grievance procedures
d. to give managers control over warehouse workers
Answer:
Common carriers of transportation have ____ obligations.
a. six
b. five
c. four
d. three
e. none of the above
Answer:
Demurrage charges are collected by railroads, ____, and ____.
a. motor carriers, pipelines
b. water carriers, pipelines
c. motor carriers, water carriers
d. airlines, pipelines
Answer:
____ products refer to those that customers view as being able to fill the same need or
want as another product.
a. copycat
b. me-too
c. substitute
d. co-branded
Answer:
Which of the following is not a reason for why purchasers are adopting a more
proactive and aggressive role in the procurement process?
a. there are myriad inefficiencies associated with suppliers initiating marketing efforts
towards purchasers
b. achieving competitive advantage in the supply chain
c. an excess number of suppliers currently exist
d. purchasers may be aware of important benefits that are not known to the supplier
e. all of the above are reasons
Answer:
____ complexity centers on the implications associated with the increasing number of
products that most companies continue to face in an effort to differentiate themselves
with their customers.
a. process
b. range
c. network
d. system
Answer:
____ refers to the amount of output divided by the amount of input.
a. control
b. monitoring
c. productivity
d. input-output analysis
Answer:
Return on assets equals:
a. current assets divided by total assets
b. return on investment divided by return on net worth
c. net profit margin times asset turnover
d. total assets divided by costs of goods sold
Answer:
What component of customer service focuses on the ease of doing business with a
seller?
a. convenience
b. dependability
c. time
d. communication
Answer:
Over 80% of customers view packaging as ____.
a. irrelevant to the purchase decision
b. one of the least important logistics activities
c. deceptive
d. a major environmental issue
Answer:
Which of the following statements about EDI is not true?
a. EDI can have high setup costs
b. EDI can result in increased inventory carrying costs
c. EDI can lead to increased billing accuracy
d. the Internet is likely a complement to, rather than substitute for, EDI
Answer:
____ refers to the net advantages that can be gained by a sharing of common locations
by various enterprises.
a. supplier development
b. coopetition
c. supplier relationship management
d. agglomeration
Answer:
Which of the following is not likely to move by air transportation?
a. wearing apparel
b. fruits and vegetables
c. cut flowers
d. auto parts
e. all are likely to move by air
Answer:
____ refers to the raw materials, component parts, and supplies bought from outside
organizations to support a company’s operations.
a. inbound logistics
b. procurement
c. materials management
d. supply management
e. none of the above
Answer:
In general, warehousing security can be enhanced by focusing on people, ____, and
____.
a. building; equipment
b. buildings; cost
c. cost; processes
d. facilities; processes
Answer:
____ materials refer to stock that exceeds the reasonable requirements of an
organization.
a. waste
b. excess
c. obsolete
d. scrap
Answer:
Logistics measurement systems have been traditionally designed to include information
on how many types of performance?
a. two
b. three
c. four
d. five
Answer:
____ refers to how easy a commodity is to pack into a load.
a. recoupering
b. stowability
c. drayage
d. materials handling
Answer:
The origins of contemporary ERP systems can be traced back to logistics and ____.
a. manufacturing
b. marketing
c. purchasing
d. finance
Answer:
List and describe the payment options (terms of sale) that can be applied to domestic
U.S. shipments.
Answer:
For each of the four work team sizes, calculate the expected time in the queuethat is, the
expected time a truck has to wait in line to be unloaded.
Answer:
What assumptions are associated with the EOQ model?
Answer:
Societal changes are relatively easy to accommodate in a hierarchical, or functional,
organizational design.
Answer:
Discuss some of the key considerations for a logistics manager who is designing and
implementing a logistics measurement system in their organization.
Answer:
Explain the load center concept. How might load centers affect the dynamics of
international transportation?
Answer:
In what ways can inventory turnover provide important insights about an organization’s
competitiveness and efficiency?
Answer:
How might regulatory and political conditions act as barriers to supply chain
management?
Answer:
International freight forwarders’ income comes from two primary sources.
Answer:
Why are some companies hesitant to adopt RFID technology?
Answer:
Discuss advantages and disadvantages to private transportation.
Answer:
With respect to quality-of-life considerations, is Patna or Lucknow the preferred
location? Why?
Answer:
Why is it important to know about the characteristics of a country’s transportation
infrastructure?
Answer:
Discuss the reasons why logisticians might be concerned with theft.
Answer:
Distinguish between weighing out and cubing out and explain how these concepts
impact the logistician’s job.
Answer: