Globalization has had little effect on consumers.
Cost/Value refers to
getting the best value for the money spent.
U.S. firms competing in the global arena.
the importance of cost and value at the very end of the supply chain.
Supply chain managers no longer need to worry about sub-optimization in light of today’s technology.
A key element in Wal-Mart’s ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.
Outsourcing is a fairly new concept.
Supply and demand has become less volatile as managers become more adept at controlling the elements.
Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors.
This is still true and has not changed.
Computerization has greatly increased the flow of information from the source.
The “Big Box” stores have developed their own sources.
None of these answers
Even though there are references to supply chain management in the 1980s, SCM did not capture the attention of senior-level management until the 1990s.
The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
One of the major challenges of supply chain management is
maintaining the visibility of inventory.
building safety-stock inventory
pushing inventory back to vendors.
The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is not included?
Inventory carrying costs
The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2.
It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfers.
Performance measurement is important because
it allows firms to rate competitors.
without it, managers would not know how the global economy is doing.
companies presently operating in the European Economic Community need to understand how its competitors are doing.
lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.
The Supply Chain Concept
is very new and considered cutting edge technology.
is highly dependent of computerization.
is not always well understood by senior managers.
developed from the previous Physical Distribution concept.
Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape?
A critical outcome of the supply chain is to deliver
the right product to the right place.
on management's expectations.
Complexity in the supply chain is caused by
the number of SKUs.
locations of customers and suppliers.
All of these answers.
Most retailers are essentially supply chain companies since
they dominate the consumer market.
own their warehouses and trucks.
they buy products produced by others.
engage in off-shore sourcing.
SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.
What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse?
Transportation is the physical movement of flow of goods.
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?
Council of Logistics Management
Society of Logistic Engineers
Supply chain logistics
In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.
The utility created through the basic marketing activities is known as place utility.
The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.
Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner. This is a
definition from an inventory perspective.
definition offered by the Society of Logistics Engineers.
a definition provided by the Council of Logistics Management.
Which of the answers below is an example of the creation of form utility by a logistics activity?
When lumber is cut and made into a chair
When a firm's finance manager approves customer purchases on a credit basis
When Dell combines components with software to produce a computer to a customer’s specifications
The breaking bulk and repackaging at a distribution center
Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics?
During the 1990s and 2000s, logistics costs as a percentage of gross national product declined.
Logistics creates which utility through production forecasting, production scheduling and inventory control?
An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow.
To hold down distribution cost, the lowest cost carrier should always be used.
The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
Time utility depends on
when the carrier picks up the shipment.
transportation companies delivering on time.
having the product available when the user wants it.
Materials handling is concerned with
What is often the largest component of logistics costs?
All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:
The utility that is created by moving goods from production points to market points where demand exists is referred to as:
What technology has helped make the physical inventory-taking process more efficient and effective?
advances in forecasting
transportation management systems
scanning of bar-coded RFID tags
The biggest and best known example of a regional trade agreement (RTA) is the:
World Trade Organization (WTO)
General Agreement on Tariffs and Trade (GATT)
European Union (EU)
Customs Trade Partnership Against Terrorism (C-TPAT)
Operating globally has become harder to accomplish for individuals and small companies.
Which is the main advantage of international air transport?
An importer can store goods in a bonded warehouse for up to three years without paying duty.
Which are the major modes of international transportation?
Water and air
Water and rail
Rail and motor
Rail and air
The global logistics channel intermediary that supervises the movement of goods through customs and ensures that the documentation accompanying a shipment is complete and accurate is known as
a foreign freight forwarder.
an export packer.
a customs house broker.
a foreign trade specialist.
A demand-driven system is also known as
a supply chain
a pull system
a marketing system
a multi-echelon system
A firm using air transportation cannot use the same packaging for international shipping as for domestic shipping because many cargo aircraft are not pressurized.
A maquiladora plant can be located anywhere in South America.
Globalization was initially driven by countries
seeking new territories.
outside the U.S. seeking to establish plants in the U.S.
seeking materials and goods not available in their own land.
sponsoring trading missions.
In his book “The Wealth of Nations”, Adam Smith stated that economies and companies could improve their wealth by
allowing specialization of tasks.
ensuring that logistics is used to gain advantage in the marketplace.
moving production off shore.
Globalization is not considered to be one of the external factors driving change in logistics.
A Foreign Freight Forwarder is unregulated by the government.
Which condition must be present before motor carriers and rail carriers can be used for international shipments?
shipments must be in volume and in bulk
the shipment must be between adjacent countries
no customs barriers can be imposed
the shipment cannot pass through adjacent countries
A maquiladora plant is
a new type of flower.
an entity created under NAFTA.
a U.S. plant performing manufacturing, processing, or assembly activity in Mexico.
a factory owned by the Maquiladora Corporation.
Ocean transportation offsets slower service with lower rates than other modes.
The Supply Chain should
manage all aspects of transportation, selecting the least cost when possible.
seek to maximize profits.
use the same techniques internationally that it uses domestically.
manage materials and products, information, financials, and demand.
Export Trading Companies and Export Management Companies are essentially the same.
The supply chain should manage four important flows, namely, materials and products, information, financials, and demand.
The North American Free Trade Agreement has removed all trade barriers between the U.S., Canada, and Mexico.
A financial based 3PL is a firm that takes a financial interest in an organization in order to underwrite the outsourcing of that firm’s logistics.
The most frequently outsourced function is freight bill payment.
A horizontal relationship refers to firms on the same level in the supply chain.
Drivers and facilitators are internal issues that an organization must address before seeking a 3PL.
The least-frequently used IT-based services by customers of 3PLs are:
transportation management (execution)
global trade management and transport sourcing
strategic and customer-related
Collaboration is usually defined as a “business practice that encourages individual organizations to share information and resources for the benefit of all”.
Once a 3PL provider is chosen, it is not necessary for an organization to seek continuous improvements as the 3PL will handle that function.
A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services.
Many organizations are working more closely with
customers and suppliers.
third-party logistics firms.
customers, suppliers, and various types of logistics suppliers.
Outsourcing and contract logistics are terms sometimes used to describe third-party logistics.
A third-party logistics firm may be defined as
an outsource service.
a firm that owns trucks and warehouses.
a firm that owns trucks and warehouses and provides computer support.
an external supplier that performs or manages all or part of a company’s logistics functions.
Approximately two-thirds of 3PL customers think their providers supply
tactical or operational services.
strategic or integrative services.
trucking and warehouse services.
a firm that can supply a competency that is not core to the firm.
Many organizations have directed significant attention toward working more closely with supply chain partners, including not only customers and suppliers but also various types of logistics suppliers
While available evidence supports the fact that the president or CEO and the finance executive are often involved with the identification of the need for logistic services,
customers are demanding a change.
executives from other areas in the company are also aware of such needs but to a lesser degree.
a 4PL will suggest greater collaboration.
off shore sourcing will point to greater need.
Whether the relationship may or may not be with a provider of logistics services, today’s supply chain relationships are most effective when collaboration occurs among the ____________ who are involved.
third-party logistics provider
Horizontal collaboration refers to a relationship that is ___________ and/or ____________.
3PLs to 3PLs and/or service provider to service provider
buyer to buyer and/or seller to seller
flat across the chain and/or involving partners equal in size
collaboration with horizontal and/or vertical competitors
The “IT gap” refers to the difference between the internal IT capabilities of 3PL users and the IT expertise of the 3PL providers.
The first stage in the process model for forming and sustaining supply chain relationships involves the process by which a manufacturer becomes fully aware of its logistics and supply chain needs.
Vertical collaboration refers to
collaboration among buyers and sellers in the supply chain.
collaboration among carriers and shippers.
collaboration that moves up the supply chain.
collaboration with competitors.
Full collaboration is the dynamic combination of
buyers, sellers, retailers, and 3PLs.
buyers, sellers, retailers, 3PLs, and appropriate government agencies.
both vertical and horizontal collaboration.
buyers and sellers only.
combines two or more metrics into a single indicator.
is complex to define, usually involves a calculation and is often in the form of a ratio.
is easily defined with no calculations and with simple dimensions.
is any quantitative output of an activity or process.
Another driving influence for supply chain reexamination has been the desire of organizations to change their supply chain focus from a __________to an “investment” center.
a customer satisfaction
The decision to alter the supply chain process is essentially ___________issue.
There are four major categories that provide a useful way for examining logistics and supply chain performance: They are: time, ______, cost, and supporting metrics.
A metric is complex to define, usually involves a calculation or a combination of measurements, and is often in the form of a ratio.
What is the best financial metric to show the profit an organization generates in relationship to assets utilized?
Return on net worth
Another metric classification scheme that has been receiving increased attention is that developed by the Supply Chain Council and contained in the Supply Chain Operations and Reference (SCOR) model.
Scorecards and key performance indicators (KPIs) are the same thing.
Effective order management can have an impact on
reducing supply chain costs.
all of these answers.
Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole.
Gross margin equals
sales minus COGS.
sales + taxes minus COGS
COGS - sales
COGS - taxes
The current logistics management approach is supported by which performance measurement concepts?
Least total cost
The D1 concept developed by the Supply Chain Council
Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure.
cash to cash management
A metric and a measure are the same.
Scorecard and key performance indicators (KPIs) refer to
metrics to manage logistics operations.
management’s evaluation of supply chain staff.
A metric could drive inappropriate behavior.
Customers and suppliers should be included in the development of metrics.
Evaluating current or potential supply chain performance metrics is not important to a sound logistics program.
Supply chain management involves the control of raw material, in-process, and finished goods inventories.
The focus on performance measurement is a recent event in industry.
___________ is/are a major barrier to the effective use of information technology.
Supply chain software that provides a platform for manufacturers, distributors, and retailers to aggregate and organize item-related data such as item number, price, description, and weight is called
business intelligence tools.
supply chain collaboration tools
spreadsheets and database tools
data synchronization tools
Supply chain information technologies can provide timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers.
are taking the place of SCIS systems.
have information elements needed by SCIS applications.
require RFID to be fully functional.
focus primarily on manufacturing issues.
Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level.
The term supply chain information system (SCIS) is defined as
software that manages the supply chain.
technology that has enhanced the ability of companies to pay more attention to customers.
information systems that automate the flow of information between a firm and its suppliers.
process management software that may or may not use ASP applications.
Individual supply chain applications must work together to provide a holistic view of all relevant processes, and must also link effectively to supply chain partners.
Managers have several options for software development and implementation. They include
third party logistics firms.
external software vendors.
all of the answers.
Now that people are computer-literate, they are no longer a major barrier to the effective use of information technology.
RFID applications have been widely embraced due to their low cost and high reliability.
Information technology plays an important role in each of the five drivers of sustainable supply chain management practice.
Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations.
Information must be real-time, not just current.
Supply chain software sales faltered during the 2007-2009 recession and remained flat in 2010 and 2011.
Business intelligence applications are being used to gather information on competitors and their suppliers.
Which of the below is not part of the seven Rs of logistics?
SCIS software selection is relatively straightforward as the choices have been simplified.
Which of the following is NOT one of the five drivers of sustainable supply chain management practice?
ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses.
Supply Chain software includes technologies that
address virtually every function and task that occurs in the supply chain.
help organizations plan, execute, and control supply chain activities in real time.
help to maintain visibility of inventory.
A stockout always results in a back order.
Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.
The term replenishment cycle refers to
orders for raw material.
the acquisition of additional inventory.
inventory and material management.
Activity-based costing works well in warehouse-type environments but does not work for customer service applications.
For the best service, all products should be available at all levels regardless of cost.
Order management system represents the principal means by which
price and lead time add value.
buyers and sellers communicate information relating to individual orders of product.
orders are handled inside the company.
customers are segmented by profitability.
Customer relationship management is the art and science of
positioning customers to improve the profitability of the organization.
Activity Based Costing
is useful for distributions centers but not customers.
can be combined with customer segmentation.
is too sophisticated for many applications.
is a very new management science.
What are the steps in the CRM process?
segment customer base, then measure service and improve
segment customer base, then identify service/package
measure service, then improve
segment customer base, identify service/package, then measure service and improve
Which is NOT part of dependability?
Customer relationship management is a new concept only recently receiving attention.
While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on
the use of the ABC process.
the use of the SCOR process.
variability or consistency of this process.
Customer service is anything that touches the customer.
The buyer and seller look at order time from the same perspective.
Customer service is of equal importance to both logistics and marketing.
Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.
Dependability is not as important to a buyer as is absolute length of lead time.
“Order to cash” and “replenishment cycle” are the same.
Customer service can be defined as
the SCOR model.
anything that touches the customer.
Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to
increase the velocity of cash back to the selling organization.
attract new customers.
develop “Clicks” and “Bricks” firms.
manage inventory more effectively.