Transcript Document
1. The logistics pipeline is another term for what? a. b. c. d. channels of distribution supply chain integrated management information flows 2. Which is an attempt to increase the velocity of inventory in the packaged goods industry throughout the supply chain of wholesalers, distributors, and ultimately to the customers? a. b. c. d. ECR JIT TQM EDI 3. Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer, at the right cost, is which definition of logistics? a. b. c. d. Seven Rs Council of Logistics Management Society of Logistics Engineers Supply chain logistics 4. The process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements is the definition of logistics: a. b. c. d. From an inventory perspective. Called the Seven Rs. Offered by the Society of Logistics Engineers. Provided by the Council of Logistics Management. 5. Inefficiencies can occur in the supply chain, especially with respect to inventory accumulation and/or lack of approximate customer service levels. What is lacking? a. b. c. d. Capability Reliability Integration Quality 6. With what type of purchase would you need to identify all possible suppliers? a. b. c. d. a straight rebuy a modified rebuy a new buy routine purchase 7. The cross-docking approach is a good example of what kind of logistics system? a. b. c. d. Logistics pipeline Outbound logistics system Inbound logistics system Push inventory system 8. What function recognizes the importance of speed, flexibility, customization, and reliability? a. b. c. d. Manufacturing Transportation Distribution Customer service 9. Inventory as a percent of GNP has generally been declining in recent years. Which factor is responsible? a. Reduction and elimination of unnecessary levels of inventory b. Improved transportation service c. Increases in inventory turnover rates d. Improvements in communications and information technology e. All of the above 10. The average inventory of XYZ Company is valued at $500,000. The annual carrying cost of carrying the inventory is 20 percent. Which is the annual cost of carrying inventory? a. b. c. d. $50,000 $100,000 $200,000 $500,000 11. Which of the following environmental conditions would be the most conducive to the adoption of a pull or reactive approach to inventory management? a. When either order cycle time or demand levels are uncertain b. When there are no capacity limitations at market-oriented warehouses or DCs c. When dependent demand exists d. When the overall logistics function evidences a greater degree of sophistication 12. Which two basic costs are considered in the basic EOQ model? a. b. c. d. Carrying costs and interest costs Setup costs and order costs Obsolescence and interest costs Order costs and carrying costs 13. Which type of utility does warehousing create in goods? a. b. c. d. Time Place Form Ownership 14. For the inbound logistics system, what is consolidation? a. Bringing together long-distance, volume shipments which are then shipped short distances in less-than-volume shipments b. Bringing together short-distance, less-than-volume shipments which are shipped long distances in volume quantities c. Bringing together an assortment of different types of finished goods d. Stowing raw materials by grade, quality, size, cost, etc. 15. Materials handling is a term applied to: a. b. c. d. Order processing Warehouse space utilization The use of automatic equipment Movement into, out of, and within storage facilities 16. The efficient short-distance movement that usually takes place within the confines of a building such as a plant or a warehouse and between a building and a transportation agency, defines: a. b. c. d. Logistics management Logistics networking Materials handling Traffic management 17. Which is the largest component of total physical distribution costs? a. b. c. d. Inbound transportation Outbound transportation Warehousing Inventory carrying cost 18. What is the direct effect, on a shipper, of a carrier's reliability or consistency of transit time? a. The complexity of interface functions encountered b. Safety stock requirements c. The degree of intermodal sufficiency d. The amount of materials handling cost incurred 19. Which mode is not economically regulated by the ICC? a. b. c. d. Motor carriers Air carriers Domestic water carriers Railroads 20. What is an order bill of lading? a. An order for goods which a firm issues to a vendor b. The same as a freight bill c. A negotiable instrument that acts as a certificate of title d. A purchase invoice 21. An order management system is designed to: a. Control inventories for the customer b. Control inventories for the manufacturer c. Provide a communication network linking the customer and manufacturer d. Aggravate the sales force 22. All of the following are regarded as a principal activity or element of lead time except: a. b. c. d. Order planning Order placement Order processing Order preparation 23. Which effect does a logistics facility location have on a firm's transportation costs, service levels, and inventory costs? a. b. c. d. Direct Indirect Converse Inverse 24. What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network? a. Change in customer service requirements b. Change in corporate ownership c. Cost pressures and competitive capabilities d. Shifting locations of customer and/or supplier markets e. All of the above 25. A function of international logistics is to create which types of utility? a. b. c. d. Time and ownership Time and form Time and place Form and ownership The End!