Transcript Document

1. Product line expansion, rate increases, and
high-valued products are the mitigating
factors that caused companies to manage
what more efficiently?
a. physical distribution
b. integrated logistics management
c. inbound systems
d. inventory management
ANSWER: a, p. 5
2. The inclusion of
purchasing/procurement as part of the
inbound logistics system added
significantly to the opportunity to reduce
costs. When did this begin?
a.
1940s - 1950s
b.
1960s - 1970s
c.
1970s - 1980s
d.
1980s - 1990s
ANSWER: c, p. 6
3.From the perspective of the seller the time
element of customer service usually concerns
order cycle time. On the other hand from the
perspective of the buyer, the time element
concern is lead time.
a.Both statements are true.
b.The first statement is true and the second is
false.
c.The first statement is false and the second is
true.
d.Both statements are false.
ANSWER: a, p. 114-115
4. What is referred to as the; glue" for
the individual logistics system and even
the supply chain?
a.
inventory
b.
customer service
c.
partnerships
d.
performance measures
ANSWER: a, p. 117
5. The value that is added to a good
through a manufacturing, production, or
assembly process is:
a
form utility
b.
place utility
c.
time utility
d.
possession utility
ANSWER: a, p. 34
6. A product's form utility is created u hen value is
added to the product through a manufacturing,
production or assembly process. However. logistics
activities can preside form utility also. Which
describes the creation of form utility by a logistics
activity?
a.
when lumber is cut and made into a chair.
b.
when a firm's finance manager approves
customer purchases on a credit basis.
c.
when bulk computer disks in different colors,
are packed in three color assortments for sale to
computer users.
d.
when flour' mills, and shortening are
combined to bake loafs of bread
ANSWER: c, p. 34
7.
Consumer demand for finished
goods trigger the physical distribution
function and increases production.
Which logistics function next comes into
play?
a.
b.
c.
d.
marketing
customer relations
materials management
receiving
ANSWER: c, p. 72
8.
The inbound system of logistics is
frequently referred to as:
a.
b.
c.
d.
physical distribution
materials management
supply chain management
all of the above
ANSWER: b, p. 72
9.
Which is not a reason for holding
physical distribution inventories?
a.
b.
c.
d.
maintenance of sources of supply
seasonality of demand
production economies
transportation economies
ANSWER a, p. 165
10. An inventory decision should consider
safety stock when there is a chance of:
a.
b.
c.
d.
turnover
over-ordering
stockout
oversupply
ANSWER c, p. 167
11. In the simple EOQ model, the reorder
point is:
a.
the maximum amount needed for sales
during the time it takes to replenish
inventory
b. the minimum amount needed for sales
during the time it takes to replenish
inventory
c.
the time necessary for a company to
process an order
d. a concept required to minimize total
inventory costs
ANSWER: b, p 202
12. Using the fixed order quantity model
under conditions of certainty, which is the
reorder point if lead time is a constant 5 days.
and yearly demand is 10,000 units (assume
250 working days in the year)?
a.
b.
c.
d.
100
200
400
5,000
ANSWER: b, p 202
13. What are the two basic warehouse
operations?
a.
b.
c.
d.
movement and order processing
movement and storage
storage and inventory control
purchasing and storage
ANSWER: b, p. 254
14. What is the first step in warehouse space
requirements determination?
a.
forecast warehousing costs
b. forecast inventory and safety stock
c.
develop a demand forecast
d. develop an economic order quantity
model
ANSWER: c, p. 255
15. In materials handling, improvement of
operating efficiency is measured by:
a.
the number of times goods are handled
b. the cubic capacity of the warehouse
c.
the efficiency in use of aisle space
d. the reduction in the number of aisle
accidents
ANSWER: a, p. 286
16. Which is an important reason for major
investment by businesses in automated
materials handling equipment?
a.
b.
c.
d.
cost
prestige
reduction in transit time
shorter order cycles
reduction in materials handling labor
ANSWER: d, p. 289
17. Which is usually the most important
determinant for selecting a particular carrier
from within one mode?
a.
b.
c.
d.
transit time reliability
equipment availability
line haul services
claims processing
ANSWER a, pp. 322-323
18. Which mode of transportation is used to
primarily move low value, high density
commodities?
a.
b.
c.
d.
rail and motor
air and motor
water and motor
water and rail
ANSWER: d p.325 and p. 331
19. In international shipments. what does
the term of sale ex works (EXW) stipulate?
a.
the seller agrees to deliver the goods to
the dock
b. the seller’s price quote applies only at
the point of origin
c.
the price quoted by the seller includes
transportation to a named
point
d. F.O.B. origin delivery
ANSWER: b, p. 368
20. Which applies when rates are based
upon the cost of service pricing model?
a.
the demand for the service establishes
the lower limit of the rate
b. the supply side of pricing is considered
c.
only the common costs incurred must be
covered by the carrier
d.. only fixed costs have to covered by the
carrier
ANSWER: b, p. 373
21. Which can be expected from electronic
data interchange?
a.
significant improvements in the breadth,
timeliness, and quality of data
b. lower inventory transaction costs
c.
improvements in comprehensive
database management
d. "best" answers for logistics problems
being formulated
ANSWER: a, p. 404
22. Which type of environmental scanning
is a relatively limited and unstructured effort
to obtain specific information or information
for a specific purpose?
a.
b.
c.
d.
undirected viewing
conditioned viewing
informal search
formal search
ANSWER: c, p. 418
23. Which is not a trend in today's logistics
environment that may have significant effects
on decisions involving logistics facility
location.
a.
b.
c.
d.
cross-docking
use of third-party suppliers
direct, plant-to customer shipments
decentralized facilities
ANSWER: d, p. 153
24. British Importers buys clothing and food items
from British manufactures for sale to the tourist
trade. British started its business in California but in
recent years its market shifted to the East Coast.
British is considering relocation to the Fact Coast
because of the distance to its market and from its
suppliers. Which are important locational
determinants for British Importers?
a.
logistics
b.
marketing
c.
financial
d.
operations
ANSWER: a, p. 449
25. International air freight has the
disadvantage of:
a.
b.
c.
d.
reliability
short transit times
high freight rates
low freight rates
ANSWER: c, p. 503