In terms of ABC analysis of inventory, no more than 25% of items should be classified
as “A’s.”
Answer:
The level and degree of transportation regulation varies from country to country.
Answer:
Continuous improvement refers to a process that continuously identifies, understands,
and adapts outstanding processes found inside and outside an organization.
Answer:
Motivation of warehousing employees can be difficult because of the somewhat
repetitive nature of the operation.
Answer:
Facility location is a logistics/supply chain activity that has evolved from a tactical
decision to one of tremendous strategic importance in numerous organizations. (True)
Answer:
The idea behind a weighted center-of-gravity approach is that a prospective
warehousing facility will be located closer to the existing sites with the greatest current
demand. (True)
Answer:
Demand management is important because efficient and effective supply chains have
learned to match both supply and demand.
Answer:
One disadvantage to private transportation is that managerial costs are often ignored or
underestimated.
Answer:
Because of smaller, more frequent orders and closer supplier location, trucking tends to
be an important mode of transportation in the just-in-time approach.
Answer:
The attractiveness of ERP systems comes from their potential for lower costs as well as
increased productivity and customer satisfaction.
Answer:
Supplier development is synonymous with reverse marketing.
Answer:
China ranks first in the world in terms of highway mileage.
Answer:
The Logistics Performance was created in recognition of the importance of logistics in
international trade.
Answer:
Drayage refers to ocean shipping, often along a region’s coast, rather than across
oceans.
Answer:
The worldwide public market for cloud computing grew nearly 20 percent between
2011 and 2012.
Answer:
Supplier selection and evaluation generally involve multiple criteria, and these criteria
can vary in both number and importance, depending on the particular situation.
Answer:
The initial focus in facility location is on a region of the world. (True)
Answer:
Plastic packaging tends to be cheaper, more versatile, and more consumer-friendly than
paper packaging.
Answer:
The International Chamber of Commerce developed the Globally Harmonized System
of Classification and Labeling of Chemicals (GHS).
Answer:
Load-planning software can be used to suggest how to load a container with different
sizes of cartons.
Answer:
Companies that participate in the Customs Trade Partnership Against Terrorism are
exempt from all import tariffs and all import quotas.
Answer:
Many promotional decisions, such as pricing campaigns that lower the price of certain
items, require close coordination between marketing and logistics.
Answer:
Productivity efforts in logistics are often directed at increasing the amount of output
while holding input constant.
Answer:
Logistics clearly contributes to time and form utility.
Answer:
In a unified logistics structure, multiple logistics activities are combined into, and
managed as, a single department.
Answer:
A primary objective of supply chain management is to optimize the performance of the
supply chain as a whole.
Answer:
The World Trade Organization has established six international pallet size standards.
Answer:
As a general rule, picker-to-part systems are preferable to part-to-picker systems.
Answer:
It has been suggested that automation becomes economically viable only when a
facility handles at least 50,000 cartons a day.
Answer:
Freight bill audits are designed to detect errors that result in overcharges and to correct
those errors in the future.
Answer:
Railroads are considered the most reliable form of transportation.
Answer:
Stockouts refer to a situation where a company is out of an item at the same time that
there is demand for that item.
Answer:
____ refers to focusing part of one’s supply chain on a timely response to fluctuating
customer orders and/or product variety and another part of the supply chain on leveling
out the planning requirements to smooth production output.
a. supply chain management
b. flexibility
c. responsiveness
d. leagility
Answer:
Inland waterways in the United States are dredged to a depth of ____ feet, which tends
to be the minimum depth required for most barges.
a. fifteen
b. twelve
c. nine
d. six
Answer:
What is the time limitation within which a freight claim must be filed?
a. three months from delivery date
b. six months from delivery date
c. nine months from delivery date
d. twelve months from delivery date
e. none of the above
Answer:
The final phase of the order cycle is called order ____.
a. picking and assembly
b. delivery
c. receiving
d. replenishment
Answer:
The two areas in logistics systems where most energy costs occur are ____ and ____.
a. warehousing; transportation
b. packaging; transportation
c. materials handling; packaging
d. warehousing; materials handling
Answer:
A reduction in inventory would increase inventory turnover, which means an increase in
that organization’s return on assets (ROA).
Answer:
Which of the following is not an attribute of relational exchanges?
a. trust
b. commitment
c. dependence
d. joint investment
e. all of the above are attributes of relational exchanges
Answer:
What do we call a system of accounts that records a country’s international financial
transactions?
a. tariffs
b. balance of payments
c. import / export accounts
d. gross domestic product
Answer:
A key attribute of network organizational design is a shift from ____ to ____.
a. function; process
b. centralization; decentralization
c. process; function
d. decentralization; centralization
Answer:
The processing point for a pure material ____.
a. should be near its source
b. should be near the final market
c. can be anywhere in the world
d. can be anywhere near the source and the market
Answer:
____ refers to breaking a homogeneous supply into smaller lots.
a. sorting out
b. allocating
c. accumulating
d. assorting
Answer:
Which generic strategy concentrates an organization’s effort on a narrowly defined
market to achieve either a cost leadership or differentiation strategy?
a. hybrid
b. market orientation
c. tailored
d. focus
Answer:
The order cycle is composed of each of the following except:
a. order retrieval
b. order delivery
c. order picking and assembly
d. order transmittal
Answer:
Supplier development is synonymous with ____.
a. supplier selection and evaluation
b. procurement
c. materials management
d. reverse marketing
Answer:
Automatic identification systems are an essential component in ____.
a. every warehouse
b. point-of-sale systems
c. a logistics information system
d. dual distribution
Answer:
Discuss the basic idea of demurrage and detention and how averaging agreements can
be helpful in this area.
Answer:
Inventory carrying costs in the United States in the twenty-first century have ranged
between ____ and ____ percent.
a. 4; 9
b. 9; 14
c. 14; 19
d. 19; 24
Answer:
Which statement about measuring customer service is true?
a. firms should choose those aspects of customer service that are easiest to measure
b. firms should choose those aspects of customer service that they think are most
important
c. firms should use as many customer service measures as they can
d. it is possible for organizations to use only one customer service metric
e. all of the above are false
Answer:
One estimate suggests that only approximately ____ percent of a facility’s cubic
capacity is actually occupied by product.
a. 10
b. 25
c. 40
d. 50
Answer:
____ can be defined as the process of determining how a shipment will be moved
between origin and destination.
a. tracking
b. recoupering
c. transportation
d. routing
Answer:
Which of the following statements is false?
a. in China, freight is often given lower priority than passengers in rail transportation
b. China ranks first in the world in terms of highway mileage
c. highway freight transportation can be provided by animals and carts in some
countries
d. some countries limit a motor carrier’s operations to within a particular state’s borders
e. all of the above are true
Answer:
Inventory flow diagrams illustrate that safety stock can prevent two problem areas,
____ and ____.
a. decreased rate of demand; longer-than-normal replenishment
b. increased rate of demand; shorter-than-normal replenishment
c. decreased rate of demand; shorter-than-normal replenishment
d. increased rate of demand; longer-than-normal replenishment
Answer:
In general terms, ____ accounts for about 6% of U.S. gross domestic product.
a. warehousing
b. logistics
c. supply chain management
d. transportation
Answer:
What concept refers to the variability in demand orders among supply chain
participants?
a. min-max fluctuation
b. the bullwhip effect
c. order fluctuation
d. the boomerang effect
Answer:
Which of the following statements is false?
a. a product’s chemical characteristics have little to no influence on the way the product
is handled
b. some products can be exposed to freezing weather; others cannot
c. the various properties of goods must be made known to consumers to help them
make the correct buying decision and properly care for the product
d. perishable products require special packaging as they move from source to customer
e. all of the above are true
Answer:
Which of the following is not a potential benefit of transportation management
systems?
a. fewer stockouts
b. reduced fuel consumption
c. decreased empty vehicle miles
d. reduced transportation expenditures
e. all of the above are benefits
Answer:
Correlation analysis uses sophisticated quantitative techniques to find “hidden” patterns
in large volumes of data.
Answer:
Performance measurement in ____ is used to identify design and operations options that
provide benefits in terms of increased speed or reduced costs.
a. materials handling
b. warehousing
c. packaging
d. order management
Answer:
A common interface between production and logistics involves:
a. the types of material handling equipment
b. the length of production runs
c. the use of plastic versus wood pallets
d. the mode of transportation
Answer:
Contemporary supply chains are increasingly required to be fast and ____.
a. lean
b. agile
c. interactive
d. relevant
Answer:
The processing point for a weight-gaining 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:
It is important that the materials handling equipment be aligned with an organization’s
objectives, customers, and ____.
a. suppliers
b. top management
c. products
d. stakeholders
Answer:
All of the following are types of economic utility, except:
a. Time
b. Production
c. Place
d. Possession
e. All of the above are types of economic utility
Answer:
Define and describe the order cycle. Why is it considered an important aspect of
customer service?
Answer:
Define what is meant by inventory carrying costs, and list its primary components.
Answer:
Answer Question 3 with regard to changing the terms of sale to delivery at port in
Baltimore. The buyer would unload the trucks from the railcars.
Answer:
What is total cost of ownership and why is it important to consider?
Answer:
Of the 10 materials handling principles discusses in the chapter, which two are most
surprising to you? Why?
Answer:
What are the two primary approaches for evaluating suppliers? How do they differ?
Answer:
What is meant by service recovery? How is it relevant to logistics?
Answer:
When comparisons are made among all eight warehouses, which one do you think does
the best job for the Brant Company? What criteria did you use? Why?
Answer:
From the standpoint of an individual concerned with accounting controls, discuss and
evaluate Johnson Toy Company’s present policies for handling returned items.
Answer:
Discuss some of the managerial challenges that complementary products present.
Answer:
Describe Kraljic’s Portfolio Matrix. What are the four categories of this segmentation
approach?
Answer:
How have cost considerations influenced facility location decisions?
Answer:
Logistics managers must be both generalists and specialists. Why is this true? Does this
help to explain why there tends to be an imbalance in the supply of, and demand for,
logistics managers?
Answer:
What are some advantages and disadvantages to checking all orders for completeness
and accuracy?
Answer:
What other costs and risks are involved in these proposed transactions, including some
not mentioned in the case?
Answer:
Answer Question 1, but from the standpoint of an individual interested in marketing.
Answer:
How do speed limits and hours-of-service rules potentially affect motor carrier service?
Answer: