There are suggestions that consultant fees for ERP implementations may be three times
as costly as the software itself.
Answer:
In vendor-managed inventory, the size and timing of replenishment orders are the
responsibility of the manufacturer.
Answer:
Leagility refers to a supply chain that combines the lean and agile paradigms.
Answer:
A perfect order simultaneously achieves relevant customer metrics.
Answer:
Environmental regulation of transportation is concerned with water, noise, and air
pollution.
Answer:
The general idea behind third-party logistics is that one company allows a specialist
company to provide it with one or more logistics functions.
Answer:
Procurement and purchasing are viewed as synonymous terms.
Answer:
One cause of the bullwhip effect is asymmetrical information among supply chain
participants.
Answer:
In the United States, approximately 95,000 employees are injured every year while
operating forklifts in warehousing facilities.
Answer:
Common sense should not be ignored with respect to the design of warehousing
facilities.
Answer:
Poorly located facilities, such as manufacturing plants and warehouses, negatively
impact logistical effectiveness, but have little impact on logistical efficiency. (False)
Answer:
The “standardization principle” is generally regarded as the most important of the 10
material handling principles.
Answer:
System 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.
Answer:
Materials handling deals with the short distance movement that usually takes place
within the confines of a building such as a plant or DC and between a building and a
transportation service provider.
Answer:
Market demassification suggests that the customer desires a product offering that is
highly tailored to her/his exact preference.
Answer:
The cash-to-cash cycle looks at how long an organization’s cash is tied up in
receivables, payables, and inventory.
Answer:
Functional-level strategies exist in marketing and production, but not in logistics.
Answer:
The ways that organizations manage the investment recovery for excess, obsolete,
scrap, and waste materials should be influenced by the materials’ classification.
Answer:
The balanced scorecard is based on the belief that management should evaluate their
business from five different perspectives.
Answer:
Benchmarking should only involve numerical comparisons of relevant metrics.
Answer:
Asset turnover is computed by dividing return on assets by total assets.
Answer:
From a carrier perspective, there may be a reluctance to accept small shipments because
they tend to require a high degree of manual labor.
Answer:
Embargoes are physical limits on the amount that may be imported from any one
country during a period of time.
Answer:
“Data” and “information” are synonymous terms.
Answer:
Barge transportation tends to be slow.
Answer:
Procurement can be thought of in terms of the building-blocks concept.
Answer:
Corporate cultures should not be considered when designing a supply chain.
Answer:
A logistics information system begins with a logistics manager requesting information
and ends with the manager receiving regular and customized reports.
Answer:
Assorting involves breaking larger quantities into smaller quantities.
Answer:
The balanced scorecard provides the framework for conducting return on assets analysis
by incorporating revenues and expenses to generate net profit margin, as well as
inclusion of assets to measure asset turnover.
Answer:
A general rule of thumb is that the services received from business taxes represent only
about 50% of the taxes that were paid. (True)
Answer:
Small shipments refer to those that can be handled relatively expeditiously and
inexpensively by a small package carrier.
Answer:
A transportation broker looks to match a shipper’s freight with a carrier to transport it.
Answer:
Centralized facilities tend to minimize total transit distances, which likely results in
minimum transportation costs. (True)
Answer:
Some free trade agreements have actually resulted in an increase in documentation
requirements.
Answer:
A confluence of events, such as increasing global sourcing, suggests that organizations
should carefully consider the potential trade-offs before adopting a lean inventory
philosophy.
Answer:
An open account is of minimal risk to the seller and extremely risky to the buyer.
Answer:
It costs about five times as much to get a new customer as it does to keep an existing
customer.
Answer:
The convenience component of customer service focuses on the ease of doing business
with a seller.
Answer:
What has been described as the “last frontier” of logistics savings opportunities?
a. information technology
b. transportation consolidation
c. packaging inefficiencies
d. inventory management
e. none of the above
Answer:
____ involves bringing together similar stocks from different sources.
a. bulk-breaking
b. assorting
c. accumulating
d. sorting out
Answer:
Liability for loss and damage is one factor used to determine a product’s freight
classification. Which of the following is not a loss and damage consideration?
a. a commodity’s propensity to damage other freight
b. ability to load freight on top of a commodity
c. a commodity’s perishability
d. a commodity’s value
e. all of the above are loss and damage considerations
Answer:
What international method of payment is issued by a bank and guarantees payment to a
seller provided that the seller has complied with applicable terms and conditions of the
particular transaction?
a. a bill of exchange
b. a letter of credit
c. forfaiting
d. an open account
Answer:
Which of the following is not a key piece of classification and labeling information
provided by the Globally Harmonized System of Classification and Labeling of
Chemicals (GHS)?
a. a signal word (e.g., “danger”)
b. a picture of the chemical or hazardous material
c. a symbol
d. a hazard statement (e.g., “severe projection hazard”)
e. all of the above are key pieces of GHS information
Answer:
The ____ concept suggests that the customer desires a product offering that is highly
tailored to the customer’s exact preferences.
a. market demassification
b. relationship marketing
c. customized customer
d. niche marketing
Answer:
____ and ____ are the two basic organizational structures associated with logistics.
a. centralized; hierarchical
b. fragmented; centralized
c. fragmented; unified
d. unified; hierarchical
Answer:
Warehouses emphasize ____ and their primary purpose is to maximize ____.
a. rapid movement of product; usage of available storage space
b. rapid movement of product; throughput
c. product storage; usage of available storage space
d. product storage; throughput
Answer:
If a product destroyed or damaged in transit is intended to be placed into general
replacement inventory, then the retailer would likely receive ____.
a. nothing but an apology from the carrier
b. the wholesale price, plus 20%
c. the retail price, minus 20%
d. the wholesale price, plus freight if previously paid
Answer:
Which of the following statements about radio-frequency identification (RFID) is false?
a. RFID only offers read capabilities
b. Walmart has been a major catalyst for RFID usage in logistics
c. RFID can store large quantities of data
d. RFID has helped to reduce the occurrence of inventory stockouts
e. all of the above are true
Answer:
The concept of logistics social responsibility, or corporate social responsibility issues
that relate directly to logistics, did not emerge until which decade?
a. 1970-1979
b. 1980-1989
c. 1990-1999
d. 2000-2009
Answer:
Logistics clearly contributes to ___________ and ___________ utility.
a. time; place
b. form; time
c. place; form
d. possession; time
e. none of the above
Answer:
According to the Occupational Safety and Health Administration, approximately ____
employees are killed each year while operating forklifts in warehousing facilities.
a. 100
b. 250
c. 500
d. 1,000
e. none of the above
Answer:
Which of the following statements about service parts logistics is false?
a. customer expectations for service parts logistics continues to increase
b. some organizations outsource their service parts logistics to companies that specialize
in this area
c. service parts logistics creates a variety of potential challenges for logisticians
d. the worldwide economic slowdown of 2008 and 2009 caused a decreased emphasis
on service parts logistics
e. all of the above are true
Answer:
International freight forwarders can provide a number of functions. Which of the
following is not one of them?
a. booking space on carriers
b. preparing an export declaration
c. arranged for insurance
d. preparing and sending shipping notices and documents
e. all of the above are possible functions
Answer:
Which of the following is false?
a. the unit load is of limited value to shippers that deal in smaller quantities
b. unit loads may discourage pilferage
c. the unit load allows mechanical devices to be substituted for manual labor
d. pallets suffer from a lack of standardized sizes, particularly in the U.S.
e. all of the above are true
Answer:
Which of the following is false?
a. top management commitment is essential if supply chain efforts are to have any
chance of success
b. some companies are uncomfortable with the concept of customer power in supply
chains
c. senior management commitment to supply chain management occurs in one of every
two organizations
d. some companies are hesitant to enter into long-term relationships because such
relationships might be perceived as limiting a company’s operational flexibility
e. all of the above are true
Answer:
Which of the following is not considered a general software package?
a. spreadsheets
b. presentation packages
c. word processing
d. database management
e. all are general software packages
Answer:
Consular documents ____.
a. involve obtaining permission from the importing country for the goods to enter
b. must be filed for every export shipment
c. can be used in place of a shipper’s export declaration
d. list the shipper, consignee, commodity (ies), and place of export
e. none of the above
Answer:
____ items refer to those that are used or distributed together.
a. me-too
b. substitute
c. co-branded
d. complementary
Answer:
A(n) ____ rate simplifies each of the three primary rate factorsproduct, weight, and
distance.
a. class
b. ad valorem
c. exception
d. commodity
Answer:
Each of the following is a shipping hazard that a package may be exposed to except
____.
a. retraction
b. vibration
c. compression
d. rough handling
e. all of the above are shipping hazards for a package
Answer:
With respect to gift giving and gift receiving, ____ refers to money paid after an
exchange.
a. a kickback
b. agglomeration
c. a bribe
d. dovetailing
Answer:
Multiple sourcing uses more than one supplier in hopes of increased competition,
improved market intelligence, and ____
a. greater supply risk mitigation
b. lower costs per unit
c. increased cooperation
d. increased communication
Answer:
The initial focus in facility location is on a ____.
a. city
b. county
c. state or province
d. region
Answer:
____ stock refers to inventory that is needed to satisfy normal demand during the
course of an order cycle.
a. base
b. speculative
c. pipeline
d. safety
Answer:
What provides the framework for conducting return on assets analysis by incorporating
revenues and expenses to generate net profit margin, as well as inclusion of assets to
measure asset turnover?
a. the Balanced Scorecard
b. the Strategic Profit Model
c. microfinancing
d. Supply Chain Operations Reference Model
Answer:
Which of the following is not a political restriction on international trade?
a. embargoes
b. import quotas
c. barring certain types of shipments
d. tariffs
e. all of the above are political restrictions
Answer:
____ stock refers to inventory that is held for several reasons, to include seasonal
demand, projected price increases, and potential shortages of product.
a. base
b. safety
c. pipeline
d. speculative
Answer:
Which of the following is not part of the marketing channel?
a. the logistics channel
b. the negotiations channel
c. the promotion channel
d. the finance channel
e. all are part of the marketing channel
Answer:
Approximately ____ percent of the world’s population currently uses the Internet.
a. 45
b. 35
c. 25
d. 15
Answer:
The ____ approach indicates that a company’s objectives can be realized by recognizing
the mutual interdependence of major functional areas.
a. supply chain
b. systems
c. interfunctionality
d. rhochrematics
Answer:
Electronic data interchange represents what general type of information management
system?
a. communication system
b. transaction processing system
c. decision support system
d. office automation system
Answer:
Which of the following situations is likely the most damaging (costly) with respect to a
stockout?
a. the customer buys a substitute product that yields a higher profit for the seller
b. the customer buys a substitute product that yields a lower profit for the seller
c. the customer goes to a competitor for a purchase
d. the customer says, “Call me when it’s in”
Answer:
How do characteristics such as substitutability and product life cycle stage influence the
development of customer service goals and objectives?
Answer:
From a logistics perspective, how is network organizational design manifested in terms
of relevancy, responsiveness, and flexibility?
Answer:
Distinguish between possession, form, time, and place utility.
Answer:
What longer-range steps should Fosdick take to improve the Providence distribution
center’s productivity?
Answer:
Would you answer to Question 5 change if the shirts are exported through the Port of
Kolkata? Why or why not?
Answer:
What additional information would be helpful for answering Question 2?
Answer:
Define what is meant by an amodal shipper and discuss the factors that have
contributed to its growth.
Answer:
What are some potential nonstorage space needs that might impact warehousing
design?
Answer:
What are right-to-work laws? How do they influence locational decisions?
Answer:
Distinguish between materials management and physical distribution.
Answer:
Discuss how fires are a constant threat in warehousing.
Answer:
Explain what is meant by the total cost approach to logistics.
Answer:
Why is top management commitment necessary for successful supply chain
management?
Answer:
What trade-offs exist between wood, plastic, and metal pallets?
Answer:
Discuss the benefits and drawbacks of EDI.
Answer:
How can a particular logistics system be effective but not efficient?
Answer: