With respect to supply chains, relevancy focuses on an organization’s ability to respond
to changes in demand with respect to volume and variety.
Answer:
Bottleneck refers to the low importance, low complexity category of Kraljic’s Portfolio
Matrix.
Answer:
It might not be unusual for cargo handlers in some countries to be illiterate.
Answer:
Tactical information sharing offers the best opportunity for improving supply chain
performance.
Answer:
The four general types of economic utility are production, possession, time, and place.
Answer:
EDI is no longer an important logistics technology in the 21st century.
Answer:
Inventory shrinkage refers to the fact that products lose value through time.
Answer:
The carrier selection procedure appears to be less straightforward than the procedure for
modal selection.
Answer:
To date, most implementations of collaborative planning, forecasting, and
replenishment (CPFR) have resulted in increased sales revenues and increased safety
stock.
Answer:
Brownfields refer to a place where flattened cartons are stored until they are recycled.
(False)
Answer:
The retail package is the basic unit in unit loading.
Answer:
Ocean carrier alliances provide two primary benefits to participating members, namely,
the sharing of vessel space and lower rates.
Answer:
Service parts logistics has decreased in importance in recent years.
Answer:
An item with a freight classification of Class 200 will be charged a higher rate than an
item with a freight classification of Class 100.
Answer:
When new products or new packaging techniques are about to be introduced, it is
somewhat advisable to have the packages pretested.
Answer:
Gross world product refers to the sum of the gross domestic product of all countries.
Answer:
The United States is the only country in the world that does not currently use the metric
system of measurement.
Answer:
“Weighing out” refers to a container that has been weighed prior to its departure from a
container yard.
Answer:
Three-to-five year contracts appear to allow sufficient time for contract warehouses to
learn their client’s business while at the same time allowing clients some flexibility.
Answer:
A pure material is one that is totally water soluble. (False)
Answer:
In general terms, order management refers to how a firm handles incoming orders.
Answer:
Global procurement is primarily driven by the input-output and market-access
strategies.
Answer:
Actual senior management commitment to supply chain management occurs in one of
every two organizations.
Answer:
The use of Incoterms is mandatory for international shipments.
Answer:
One way of dealing with dead stock (inventory) is for companies to simply throw it
away.
Answer:
Private warehousing tends to be feasible when demand patterns are relatively stable.
Answer:
The order cycle is usually the time from when a customer places an order to when the
firm receives the order.
Answer:
Big-box retailers have been at the center of changes taking place that affect the supply
chain.
Answer:
The overall global climate for business has shifted toward allowing more cooperation
among firmswhich should help supply chain management.
Answer:
Buffer stock is also referred to as cycle stock.
Answer:
The severity of the distribution environment is the primary consideration in properly
designing a protective packaging system.
Answer:
Government regulations require organizations to create a safety data sheet (SDS) for
each imported item that is stored in a warehousing facility.
Answer:
The price and service trade-offs available to today’s transportation manager are limited
only by her / his creativity and ingenuity.
Answer:
With respect to gift giving and gift receiving, bribes refer to money paid after an
exchange.
Answer:
Concealed loss and damage claims are some of the most difficult for shippers and
carriers to handle.
Answer:
With public warehousing the user rents space as needed, thus avoiding the cost of
unneeded space.
Answer:
Because global sourcing increases the distance that components and inputs must be
moved, managers must consider the tradeoff between transportation and holding costs.
Answer:
Approximately ____ percent of US adult women are currently in the workforce.
a. 70
b. 60
c. 50
d. 40
Answer:
From a space utilization perspective, one pallet occupies ____ times more space than a
plastic slip sheet.
a. 80
b. 60
c. 40
d. 20
Answer:
The movement and storage of materials into a firm refers to:
a. physical distribution
b. materials management
c. supply chain management
d. materials handling
Answer:
Shippers’ associations ____.
a. are the same as a freight forwarder
b. function in a manner similar to freight forwarders
c. specialize in truckload shipments
d. are used only for agricultural products
Answer:
Logistics managers use the ____ approach to coordinate materials management and
physical distribution in a cost-efficient manner.
a. total cost
b. supply chain
c. interfunctional logistics
d. intrafunctional logistics
Answer:
Which of the following statements about international inventory management is false?
a. product return policies are a concern
b. inventory valuation is difficult because of continually changing exchange rates
c. safety stocks generally need to be larger
d. inventory for sale in one nation generally serves the needs of markets in nearby
nations
e. all of the above are true
Answer:
Which of the following statements is true?
a. third-party logistics companies demand only a few activities from third-party
logistics providers
b. the decision to use third-party logistics can only be strategic in nature
c. third-party logistics is synonymous with fourth-party logistics
d. a common cause of third-party logistics failure is unreasonable and unrealistic
expectations
e. all of the above are false
Answer:
A(n) ____ refers to a transportation manager who purchases a prespecified level of
transportation service and is indifferent to the mode and carrier used to provide the
transportation service.
a. industrial transportation manager
b. certified logistics professional
c. third-party logistics shipper
d. amodal shipper
Answer:
Over the past quarter century, discussion of natural resources and facility location has
increasingly factored in ____ considerations.
a. cost
b. supply chain
c. diversity
d. environmental
Answer:
Which of the following is not a key shortcoming of the sweatshops associated with the
electronics industry?
a. violations of working hours
b. poor workplace ventilation
c. violations of wage agreements
d. discriminatory practices based on age
e. all of the above are key shortcomings
Answer:
Which of the following is not an assumption associated with the basic economic order
quantity (EOQ) model?
a. no inventory in transit
b. an infinite planning horizon
c. stockouts are permitted
d. a constant and known replenishment or lead time
e. all are basic assumptions with the basic EOQ model
Answer:
The existence of transportation competition, whether intermodal or intramodal, tends to
____.
a. have both cost and service benefits to a user
b. have cost, but not service, benefits to a user
c. have both cost and service benefits to a user
d. have neither cost nor service benefits to a user
Answer:
____ is a set of generic standards used to document, implement, and demonstrate
quality management and assurance systems.
a. benchmarking
b. Six Sigma
c. ISO 9000
d. ISO 14000
Answer:
Which of the following statements is false?
a. supplier selection and evaluation generally involves multiple criteria
b. the evolution of business practices and philosophies may require new supplier
selection criteria
c. selecting suppliers is the final step of the supplier selection and evaluation process
d. some supplier selection criteria may be contradictory
Answer:
Which of the following is not a characteristic of public warehousing?
a. requires no capital investment from user
b. users have a fairly exact determination of their warehousing costs
c. good for companies dealing with large volumes of inventory
d. lack of control by user
e. all of the above are characteristics
Answer:
Distribution centers emphasize ____ and their primary purpose is to maximize ____.
a. rapid movement of product; throughput
b. product storage; throughput
c. product storage; usage of available storage space
d. rapid movement of product; usage of available storage space
Answer:
A key advantage of fixed slot locations in a warehouse is ____.
a. improved employee morale
b. knowledge of where specific products are located
c. better materials handling
d. increased space utilization
Answer:
A ____ raises or lowers barges so that they can meet the river’s level as they move
upstream or downstream.
a. barge crane
b. lock
c. levee
d. towboat
e. none of the above
Answer:
Concerning the EOQ model, if demand or annual usage increases by 10%, then the
EOQ will ____.
a. it depends on the particular product
b. increase
c. decrease
d. stay unchanged
Answer:
A major advantage of the unit load is ____.
a. its environmental friendliness
b. mechanical devices can be substituted for manual labor
c. its value to companies that deal in small quantities
d. that it simplifies transportation requirements
Answer:
Suppose that a logistics manager is able to eliminate some unnecessary inventory,
which reduces the value of current assets as well as total asset value. What is the
corresponding impact on inventory turnover and return on assets?
a. both inventory turnover and return on assets will increase
b. inventory turnover increases, while return on assets decreases
c. inventory turnover decreases, while return on assets increases
d. both inventory turnover and return on assets will decrease
Answer:
According to the text, ____has been at the center of the changes taking place that affect
the supply chain.
a. economic malaise
b. logistics
c. customer power
d. technology
Answer:
What concept refers to when firms consider all the costs that can be assigned to the
acquisition, use, and maintenance of a purchase?
a. activity-based costing
b. cost trade-offs
c. the systems approach
d. total cost of ownership
Answer:
A free trade zone refers to an area ____.
a. that is home to businesses that are owned and operated by large concentrations of a
particular ethnic group
b. in which products can be stored, exhibited, or processed without being subjected to
duties and quotas unless they enter the customs territory of the zone country
c. in which the federal government disregards all import and export quotas for products
coming from, or destined to, “favored” nations
d. an area outside the legal jurisdiction of federal, state, and/or local governments
e. none of the above
Answer:
____ refers to the removal of intermediaries between producer and consumer.
a. direct channels
b. market demassification
c. consolidation
d. disintermediation
Answer:
____ systems consider the reverse flow of products, their reuse, and the marketing and
distribution of recovered products.
a. eco-
b. open-loop
c. closed-loop
d. dynamic
Answer:
Dimensional weight ____.
a. considers a shipment’s density
b. only applies to air transportation
c. is associated with commodity rates
d. does not impact transportation rates
Answer:
Concerning the EOQ model, if the ordering costs increase by 10% and the product
value increases by 10%, then the EOQ will ____.
a. stay unchanged
b. increase
c. decrease
d. it depends on the particular product
Answer:
All of the following are potential costs associated with ERP implementation, except:
a. employee training
b. system testing
c. data conversion
d. upgraded computer hardware
e. all of the above are costs
Answer:
Which of the following statements is false?
a. goals tend to be broad, generalized statements regarding the overall results that the
firm is trying to achieve
a. objectives are more specific than goals
c. a central element to the establishment of customer service goals and objectives is
determining the customer’s viewpoint
d. goals should be specific, measurable, achievable, and cost effective
e. all of the above statements are true
Answer:
____ can be defined as an organization’s ability to address unexpected operational
situations.
a. relevancy
b. flexibility
c. accommodation
d. responsiveness
Answer:
Which of the following is not a name/term for a long-term mutually beneficial supply
chain agreement?
a. partnerships
b. third-party arrangements
c. coopetition
d. contract logistics
e. all of the above are names for a long-term mutually beneficial supply chain
agreement
Answer:
Ocean carrier alliances provide two primary benefits to participating members, namely,
the sharing of vessel space and ____.
a. anti-trust immunity
b. the ability to offer shippers a broader service network
c. lower rates
d. faster transit times
e. none of the above
Answer:
An underperforming supply chain is defined as one that exhibits poor service,
unproductive assets, or ____.
a. high variable operating costs
b. outdated information technology
c. poor communication
d. too many organizations (companies)
Answer:
How do transportation tariffs and classifications influence the type of packaging and
packing methods?
Answer:
Why might performance measurement be more difficult in global logistics systems?
Answer:
What are expatriate workers? What challenges do they face?
Answer:
What are the three primary factors that determine transportation rates?
Answer:
With respect to transportation considerations, is Patna or Lucknow the preferred
location? Why?
Answer:
In what ways can unionized workforces be a challenge to improving productivity?
Answer:
In what way is the location of customer markets a strategic consideration in facility
location?
Answer:
If you worked for Chippy, what new classification would you ask for? Give your
reasons.
Answer:
What is a certificate of origin, a commercial invoice, and a shipper’s export declaration?
Answer:
Discuss the factors that influence the number of facilities that a firm chooses to operate.
Answer:
Did it surprise you that logistics has such an important economic impact? Why or why
not?
Answer:
Why have inventory taxes become increasingly difficult to collect?
Answer:
One of Chippy’s own trucks, used for local deliveries, has two axles and an enclosed
body measuring (inside) seven feet by eight feet by twenty feet and is limited by law to
carrying a load of no more than 8,000 pounds. Because the truck is not supposed to be
overloaded, what combinations, expressed in terms of cartons of each, of new- and
old-style chips can it legally carry? (Hint: use a piece of graph paper.)
Answer:
Regarding the supply chain, howif, at allshould bribes be included? What functions do
they serve?
Answer:
What environmentally friendly packaging strategies might a firm adopt?
Answer:
Beyond the general factors discussed in this chapter, what additional considerations are
important when a firm is thinking of locating a facility (facilities) in other countries?
Answer:
How does a common carrier differ from a contract carrier?
Answer:
Explain how a routing guide might be used by a transportation manager.
Answer: