The list of factors considered in rating freight is compounded by the specific
commodity that is being shipped. The basic steps involved in the determination of the
applicable rates are listed below, with one exception. Which is the exception?
A. Use the classification to look up the commodity being shipped and determine its
rating.
B. Select the appropriate tariff and determine the rate basis number that applies to the
origin-destination combination of the shipment.
C. Cross-reference the rating and the rate base number in the section of the tariff that
gives class rates in cents per 100 pounds shipped.
D. Verify with the Department of Commerce that the appropriate rate and classification
are being applied.
The decision maker faces multiple goals in making the buying decision.
The __________________ (is the only / are some of the) issue(s) that a decision maker
faces in making the buying decision.
A. cost per unit
B. quality
C. lead time
D. all the above
E. “A†and “B†only
Some of the tasks involved in a typical complex project are given below:
•Establish at least a 5 percent productivity improvement over previously established
norms for the type of work in question.
•Labor budgets must be available to the contractor early in the project.
•Measures of actual performance against budgeted performance must be collected
accurately. The data must be reliable.
•These data should then be used for decision making.
A. True
B. False
Within the win-win partnership dyad, buyer and supplier share goals as well as inherent
risks through joint planning and control, seeking to create a supply chain with increased
information flow and enhanced loyalty. Like the overall goal of supply chain
management, such coordination allows for ________________________.
A. improved service
B. technological innovation
C. product design with decreased cost
D. all of the above
E. “A†and “C†only
The objective of a drastically ____________ base precludes an acceptance of supplier
partnerships because a firm must accept dependence upon _____________ before they
can internalize legitimate forms of supply chain management and supplier partnerships.
A. improved supplier / sales representatives
B. reduced supplier / fewer suppliers
C. increased supplier / fewer sales representatives
D. improved marketing / multiple suppliers
E. improved operations / multiple suppliers
The JIT production system is not a ___________.
A. pull system
B. complete system
C. true production system
D. quality system
E. panacea
The significance of average inventory is that ________________ is a function of
average inventory. Inventory is an (a) _______. Working capital is tied up in material
rather than an alternative asset. _______________________as well as costs of storing,
insuring, and handling are incurred when inventory exists.
A. opportunity cost / liability / Inventory costs
B. inventory cost / liability / Opportunity costs
C. inventory cost / asset / / Opportunity costs
D. inventory cost / asset / Shrinkage
E. opportunity cost / asset / Shrinkage
“Grade†methods are those that are based on a score or grade given to the supplier
by the buyer for some attribute. The most common attributes are
______________________.
A. cost, reliability, and delivery
B. quantity, quality, and reliability
C. quality, price, and delivery
D. quality, price, and terms
E. effectiveness, cost, and terms
If we represent the order cycle as a set of activities, we can identify an important
property of the order cycle— _______.
A. order time
B. communication time
C. fax time
D. lead time
E. cycle time
Each activity in the order cycle is a bundle of tasks. For example, the receipt of
materials by the customer involves all of the following, with one exception. Which is
the exception?
A. Physical receipt
B. Unpacking
C. Unloading
D. Storage location decision
E. Move to storage
This factor refers to the relationships of the bargainers to significant others not
participating directly in the bargaining. Which of the following is this statement
referring to?
A. Social relationship with the opponent
B. Social relationship with significant others
C. Social payoff systems
D. Social relationships with management
E. Social relationships with various parties
The _________ function is taking on increasing importance in today’s industrial
economy.
A. financial
B. marketing
C. purchasing
D. operations
E. human resources
The steps in the CPM project planning process are:
1> Specify each individual activity.
2> Sequence the activities.
3> Draw a network diagram.
4> Estimate the completion time for each activity.
5> Identify the critical path (longest path through the network).
6> Update the CPM diagram as the project progresses.
A. True
B. False
Shipping documentation such as the ___________ must be prepared. This serves as the
basic contract between the carrier and shipper and specifies the commodities and
quantities shipped, routing, rates, and carrier liability.
A. freight bill
B. invoice
C. bill of lading
D. purchase order
E. bill of trucking
In the case of a manufacturing firm, you must consider whether the production process
is ____________, ___________, or some hybrid of the two.
A. continuous / assembly line
B. make to order / make to stock
C. matrix / made to request
D. custom made / made to stock
E. made to order / made to specs
When the dollar is weak, the final cost of goods tends to be relatively less than
originally agreed upon.
A. True
B. False
It is well documented that JIT reduces physical inventory level. Reductions in physical
inventory will also have a favorable impact on:
1> Reduced insurance premiums associated with the storage of inventory.
2> Reduced inventory holding costs.
3> Reduced labor cost in store rooms and material handing costs.
4> Reduced clerical and administrative costs.
5> Reduced waste from the manufacturing process.
6> Reduced obsolescence costs.
7> Reduced deprecation of handling and storage equipment.
Each of the cost savings will result in a leaner more profitable operation.
A. True
B. False
In 1987 Congress established the ______________ National Quality Award. It was
initiated as a result of foreign firms increasingly dominating American markets. The
___________ Award is much more than an award; it is equivalent to a mini revolution
in the business world. As a result, all major firms in America have established
continuous improvement quality programs.
A. American Productivity Center / American Productivity
B. Deming Productivity Center / Deming
C. Malcolm Baldridge / Malcolm Baldridge
D. Thomas Edison / Edison Productivity
E. Herzberg Productivity Center and the / Herzberg Productivity
The cost of raw materials has traditionally, been a serious concern of top management.
Over the years, material cost as a proportion of total cost of the end product has risen
sharply and is as high as ______ percent in some instances.
A. 50
B. 60
C. 70
D. 80
E. 90
Every strategic supplier also should have formal environmental, health, operational, and
safety programs. In addition, they should put forth the effort to reduce, reuse, and
recycle when possible. These categories, as well as others, should be used in the
development of the questionnaire for each supplier.
A. True
B. False
__________________ means that there is a shipper’s prepayment portion of the
freight and the consignee is responsible for the balance of the payment.
A. Third-party
B. Prepaid/collect beyond
C. COD
D. FOB
E. COB
The ____________ there is in a vendor’s lead times; the ____________ it is to
manage the production process.
A. less uncertainty / less difficult
B. more uncertainty / less difficult
C. less uncertainty / more difficult
D. more uncertainty / more difficult
E. more certainty / more difficult
Rule Three (3) of the dual card kanban states: Containers for each specific part are
___________, and they are always filled with the same (ideally, small) quantity.
A. made of plastic
B. made to a customized size for the part
C. made of metal
D. standardized
E. “B†and “C†only
A ________ approach can be used that is known as ____________. With this method,
the supplier base is expanded without increasing the actual number of suppliers.
A. multi / multiple-sourcing
B. matrix / cross-sourcing
C. hybrid / mono-sourcing
D. solo / single-sourcing
E. hybrid / cross-sourcing
A traveling requisition also may include information regarding the ___________ and
____________________ for inventory control purposes.
A. sales / manufacturer
B. reorder quantity / vendor
C. vendor / economic order quantity
D. order point / economic order quantity
E. order point / vendor
Dependent demand is indirectly derived from demand for another inventoried item
demand.
A. True
B. False
The ____________ is composed of a large number of for-hire and private carriers. The
for-hire category includes both regulated carriers and non-regulated carriers.
A. (railroad) industry
B. (express) industry
C. (airline) industry
D. (barge) industry
E. (trucking) industry
This automation (RFID) provides reductions in the need for the manual scanning of
products and the time required for labor-intensive duties, which, in turn, can increase
the overall labor costs for companies.
A. True
B. False
___________ suppliers are those that are important to the buying firm, but alternative
suppliers could be found with some effort.
A. Standard
B. Strategic
C. Cooperative
D. Competitive
E. Preferred
Although the basic ideas of TM are simple, the ___________ procedures are complex
and can be difficult to __________.
A. implementation / understand
B. core / implement
C. basic / understand
D. statistical / understand
E. statistical / implement