Logistics Exam 1

gianmarcoleri
Quiz by , created about 5 years ago

Quiz on Logistics Exam 1, created by gianmarcoleri on 10/07/2014.

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gianmarcoleri
Created by gianmarcoleri about 5 years ago
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Question 1

Question
Globalization has had little effect on consumers.
Answer
  • True
  • False

Question 2

Question
Cost/Value refers to
Answer
  • 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.
  • product variety.

Question 3

Question
Supply chain managers no longer need to worry about sub-optimization in light of today’s technology.
Answer
  • True
  • False

Question 4

Question
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.
Answer
  • True
  • False

Question 5

Question
Outsourcing is a fairly new concept.
Answer
  • True
  • False

Question 6

Question
Supply and demand has become less volatile as managers become more adept at controlling the elements.
Answer
  • True
  • False

Question 7

Question
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.
Answer
  • 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

Question 8

Question
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.
Answer
  • True
  • False

Question 9

Question
The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
Answer
  • True
  • False

Question 10

Question
One of the major challenges of supply chain management is
Answer
  • forward buying.
  • maintaining the visibility of inventory.
  • building safety-stock inventory
  • pushing inventory back to vendors.

Question 11

Question
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?
Answer
  • Complexity
  • Inventory deployment
  • Inventory carrying costs
  • Technology

Question 12

Question
The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2.
Answer
  • True
  • False

Question 13

Question
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.
Answer
  • True
  • False

Question 14

Question
Performance measurement is important because
Answer
  • 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.

Question 15

Question
The Supply Chain Concept
Answer
  • 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.

Question 16

Question
Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape?
Answer
  • Government policy
  • Technology
  • Environmental concerns
  • Globalization

Question 17

Question
A critical outcome of the supply chain is to deliver
Answer
  • profits.
  • the right product to the right place.
  • cost/value.
  • on management's expectations.

Question 18

Question
Complexity in the supply chain is caused by
Answer
  • the number of SKUs.
  • locations of customers and suppliers.
  • transportation requirements.
  • All of these answers.

Question 19

Question
Most retailers are essentially supply chain companies since
Answer
  • they dominate the consumer market.
  • own their warehouses and trucks.
  • they buy products produced by others.
  • engage in off-shore sourcing.

Question 20

Question
SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.
Answer
  • True
  • False

Question 21

Question
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?
Answer
  • Material handling
  • Physical distribution
  • Business logistics
  • Order fullfilment

Question 22

Question
Transportation is the physical movement of flow of goods.
Answer
  • True
  • False

Question 23

Question
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?
Answer
  • Seven Rs
  • Council of Logistics Management
  • Society of Logistic Engineers
  • Supply chain logistics

Question 24

Question
In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.
Answer
  • True
  • False

Question 25

Question
The utility created through the basic marketing activities is known as place utility.
Answer
  • True
  • False

Question 26

Question
The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.
Answer
  • True
  • False

Question 27

Question
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
Answer
  • definition from an inventory perspective.
  • general definition.
  • definition offered by the Society of Logistics Engineers.
  • a definition provided by the Council of Logistics Management.

Question 28

Question
Which of the answers below is an example of the creation of form utility by a logistics activity?
Answer
  • 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

Question 29

Question
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?
Answer
  • Product
  • Promotion
  • Price
  • Customer service

Question 30

Question
During the 1990s and 2000s, logistics costs as a percentage of gross national product declined.
Answer
  • True
  • False

Question 31

Question
Logistics creates which utility through production forecasting, production scheduling and inventory control?
Answer
  • Form utility
  • Quantity utility
  • Time utility
  • Possession utility

Question 32

Question
An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow.
Answer
  • True
  • False

Question 33

Question
To hold down distribution cost, the lowest cost carrier should always be used.
Answer
  • True
  • False

Question 34

Question
The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
Answer
  • True
  • False

Question 35

Question
Time utility depends on
Answer
  • when the carrier picks up the shipment.
  • transportation companies delivering on time.
  • proper forecasting.
  • having the product available when the user wants it.

Question 36

Question
Materials handling is concerned with
Answer
  • inventory levels.
  • breaking bulk.
  • scheduling trade-offs.
  • short-distance movement.

Question 37

Question
What is often the largest component of logistics costs?
Answer
  • Inventory costs
  • Transportation costs
  • Shipper-related costs
  • Administrative costs

Question 38

Question
All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:
Answer
  • Transportation
  • Marketing
  • Scheduling
  • Forecasting

Question 39

Question
The utility that is created by moving goods from production points to market points where demand exists is referred to as:
Answer
  • Form
  • Place
  • Time
  • Possession

Question 40

Question
What technology has helped make the physical inventory-taking process more efficient and effective?
Answer
  • advances in forecasting
  • transportation management systems
  • just-in-time inventory
  • scanning of bar-coded RFID tags

Question 41

Question
The biggest and best known example of a regional trade agreement (RTA) is the:
Answer
  • World Trade Organization (WTO)
  • General Agreement on Tariffs and Trade (GATT)
  • European Union (EU)
  • Customs Trade Partnership Against Terrorism (C-TPAT)

Question 42

Question
Operating globally has become harder to accomplish for individuals and small companies.
Answer
  • True
  • False

Question 43

Question
Which is the main advantage of international air transport?
Answer
  • Freight rates
  • Flexibility
  • Transit times
  • Accessibility

Question 44

Question
An importer can store goods in a bonded warehouse for up to three years without paying duty.
Answer
  • True
  • False

Question 45

Question
Which are the major modes of international transportation?
Answer
  • Water and air
  • Water and rail
  • Rail and motor
  • Rail and air

Question 46

Question
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
Answer
  • a foreign freight forwarder.
  • an export packer.
  • a customs house broker.
  • a foreign trade specialist.

Question 47

Question
A demand-driven system is also known as
Answer
  • a supply chain
  • a pull system
  • a marketing system
  • a multi-echelon system

Question 48

Question
A firm using air transportation cannot use the same packaging for international shipping as for domestic shipping because many cargo aircraft are not pressurized.
Answer
  • True
  • False

Question 49

Question
A maquiladora plant can be located anywhere in South America.
Answer
  • True
  • False

Question 50

Question
Globalization was initially driven by countries
Answer
  • 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.

Question 51

Question
In his book “The Wealth of Nations”, Adam Smith stated that economies and companies could improve their wealth by
Answer
  • allowing specialization of tasks.
  • ensuring that logistics is used to gain advantage in the marketplace.
  • becoming multi-national.
  • moving production off shore.

Question 52

Question
Globalization is not considered to be one of the external factors driving change in logistics.
Answer
  • True
  • False

Question 53

Question
A Foreign Freight Forwarder is unregulated by the government.
Answer
  • True
  • False

Question 54

Question
Which condition must be present before motor carriers and rail carriers can be used for international shipments?
Answer
  • 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

Question 55

Question
A maquiladora plant is
Answer
  • 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.

Question 56

Question
Ocean transportation offsets slower service with lower rates than other modes.
Answer
  • True
  • False

Question 57

Question
The Supply Chain should
Answer
  • 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.

Question 58

Question
Export Trading Companies and Export Management Companies are essentially the same.
Answer
  • True
  • False

Question 59

Question
The supply chain should manage four important flows, namely, materials and products, information, financials, and demand.
Answer
  • True
  • False

Question 60

Question
The North American Free Trade Agreement has removed all trade barriers between the U.S., Canada, and Mexico.
Answer
  • True
  • False

Question 61

Question
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.
Answer
  • True
  • False

Question 62

Question
The most frequently outsourced function is freight bill payment.
Answer
  • True
  • False

Question 63

Question
A horizontal relationship refers to firms on the same level in the supply chain.
Answer
  • True
  • False

Question 64

Question
Drivers and facilitators are internal issues that an organization must address before seeking a 3PL.
Answer
  • True
  • False

Question 65

Question
The least-frequently used IT-based services by customers of 3PLs are:
Answer
  • transportation management (execution)
  • warehouse/distribution management
  • global trade management and transport sourcing
  • strategic and customer-related

Question 66

Question
Collaboration is usually defined as a “business practice that encourages individual organizations to share information and resources for the benefit of all”.
Answer
  • True
  • False

Question 67

Question
Once a 3PL provider is chosen, it is not necessary for an organization to seek continuous improvements as the 3PL will handle that function.
Answer
  • True
  • False

Question 68

Question
A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services.
Answer
  • True
  • False

Question 69

Question
Many organizations are working more closely with
Answer
  • customers.
  • customers and suppliers.
  • third-party logistics firms.
  • customers, suppliers, and various types of logistics suppliers.

Question 70

Question
Outsourcing and contract logistics are terms sometimes used to describe third-party logistics.
Answer
  • True
  • False

Question 71

Question
A third-party logistics firm may be defined as
Answer
  • 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.

Question 72

Question
Approximately two-thirds of 3PL customers think their providers supply
Answer
  • 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.

Question 73

Question
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
Answer
  • True
  • False

Question 74

Question
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,
Answer
  • 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.

Question 75

Question
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.
Answer
  • participants
  • third-party logistics provider
  • cutomers
  • suppliers

Question 76

Question
Horizontal collaboration refers to a relationship that is ___________ and/or ____________.
Answer
  • 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

Question 77

Question
The “IT gap” refers to the difference between the internal IT capabilities of 3PL users and the IT expertise of the 3PL providers.
Answer
  • True
  • False

Question 78

Question
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.
Answer
  • True
  • False

Question 79

Question
Vertical collaboration refers to
Answer
  • collaboration among buyers and sellers in the supply chain.
  • collaboration among carriers and shippers.
  • collaboration that moves up the supply chain.
  • collaboration with competitors.

Question 80

Question
Full collaboration is the dynamic combination of
Answer
  • buyers, sellers, retailers, and 3PLs.
  • buyers, sellers, retailers, 3PLs, and appropriate government agencies.
  • both vertical and horizontal collaboration.
  • buyers and sellers only.

Question 81

Question
An index
Answer
  • 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.

Question 82

Question
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.
Answer
  • warehouse system
  • logistics-oriented system
  • cost center
  • a customer satisfaction

Question 83

Question
The decision to alter the supply chain process is essentially ___________issue.
Answer
  • a management
  • an optimization
  • a supply chain
  • a customer satisfaction

Question 84

Question
There are four major categories that provide a useful way for examining logistics and supply chain performance: They are: time, ______, cost, and supporting metrics.
Answer
  • delivery
  • KPIs
  • competition
  • quality

Question 85

Question
A metric is complex to define, usually involves a calculation or a combination of measurements, and is often in the form of a ratio.
Answer
  • True
  • False

Question 86

Question
What is the best financial metric to show the profit an organization generates in relationship to assets utilized?
Answer
  • ROA
  • Profit
  • Return on net worth
  • Stock price

Question 87

Question
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.
Answer
  • True
  • False

Question 88

Question
Scorecards and key performance indicators (KPIs) are the same thing.
Answer
  • True
  • False

Question 89

Question
Effective order management can have an impact on
Answer
  • reducing supply chain costs.
  • increasing revenues.
  • improving ROA.
  • all of these answers.

Question 90

Question
Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole.
Answer
  • True
  • False

Question 91

Question
Gross margin equals
Answer
  • sales minus COGS.
  • sales + taxes minus COGS
  • COGS - sales
  • COGS - taxes

Question 92

Question
The current logistics management approach is supported by which performance measurement concepts?
Answer
  • Metrics
  • Total cost
  • Least total cost
  • The D1 concept developed by the Supply Chain Council

Question 93

Question
Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure.
Answer
  • cash to cash management
  • information systems
  • order cycle
  • KPIs

Question 94

Question
A metric and a measure are the same.
Answer
  • True
  • False

Question 95

Question
Scorecard and key performance indicators (KPIs) refer to
Answer
  • sporting events.
  • metrics to manage logistics operations.
  • management’s evaluation of supply chain staff.
  • measuring output.

Question 96

Question
A metric could drive inappropriate behavior.
Answer
  • True
  • False

Question 97

Question
Customers and suppliers should be included in the development of metrics.
Answer
  • True
  • False

Question 98

Question
Evaluating current or potential supply chain performance metrics is not important to a sound logistics program.
Answer
  • True
  • False

Question 99

Question
Supply chain management involves the control of raw material, in-process, and finished goods inventories.
Answer
  • True
  • False

Question 100

Question
The focus on performance measurement is a recent event in industry.
Answer
  • True
  • False

Question 101

Question
___________ is/are a major barrier to the effective use of information technology.
Answer
  • Cost
  • People
  • Effective applications
  • Management support

Question 102

Question
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
Answer
  • business intelligence tools.
  • supply chain collaboration tools
  • spreadsheets and database tools
  • data synchronization tools

Question 103

Question
Supply chain information technologies can provide timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers.
Answer
  • True
  • False

Question 104

Question
ERP systems
Answer
  • 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.

Question 105

Question
Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level.
Answer
  • True
  • False

Question 106

Question
The term supply chain information system (SCIS) is defined as
Answer
  • 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.

Question 107

Question
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.
Answer
  • True
  • False

Question 108

Question
Managers have several options for software development and implementation. They include
Answer
  • internal development.
  • third party logistics firms.
  • external software vendors.
  • all of the answers.

Question 109

Question
Now that people are computer-literate, they are no longer a major barrier to the effective use of information technology.
Answer
  • True
  • False

Question 110

Question
RFID applications have been widely embraced due to their low cost and high reliability.
Answer
  • True
  • False

Question 111

Question
Information technology plays an important role in each of the five drivers of sustainable supply chain management practice.
Answer
  • True
  • False

Question 112

Question
Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations.
Answer
  • True
  • False

Question 113

Question
Information must be real-time, not just current.
Answer
  • True
  • False

Question 114

Question
Supply chain software sales faltered during the 2007-2009 recession and remained flat in 2010 and 2011.
Answer
  • True
  • False

Question 115

Question
Business intelligence applications are being used to gather information on competitors and their suppliers.
Answer
  • True
  • False

Question 116

Question
Which of the below is not part of the seven Rs of logistics?
Answer
  • Information
  • Cost
  • Quality
  • Place

Question 117

Question
SCIS software selection is relatively straightforward as the choices have been simplified.
Answer
  • True
  • False

Question 118

Question
Which of the following is NOT one of the five drivers of sustainable supply chain management practice?
Answer
  • Adaptability
  • Synchronization
  • Velocity
  • Execution

Question 119

Question
ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses.
Answer
  • True
  • False

Question 120

Question
Supply Chain software includes technologies that
Answer
  • 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.
  • all of these answers.

Question 121

Question
A stockout always results in a back order.
Answer
  • True
  • False

Question 122

Question
Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.
Answer
  • True
  • False

Question 123

Question
The term replenishment cycle refers to
Answer
  • orders for raw material.
  • material management.
  • the acquisition of additional inventory.
  • inventory and material management.

Question 124

Question
Activity-based costing works well in warehouse-type environments but does not work for customer service applications.
Answer
  • True
  • False

Question 125

Question
For the best service, all products should be available at all levels regardless of cost.
Answer
  • True
  • False

Question 126

Question
Order management system represents the principal means by which
Answer
  • 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.

Question 127

Question
Customer relationship management is the art and science of
Answer
  • demand management.
  • positioning customers to improve the profitability of the organization.
  • management discipline.
  • customer profitability.

Question 128

Question
Activity Based Costing
Answer
  • 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.

Question 129

Question
What are the steps in the CRM process?
Answer
  • 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

Question 130

Question
Which is NOT part of dependability?
Answer
  • Cycle time
  • Safe delivery
  • Correct orders
  • Consistent pricing

Question 131

Question
Customer relationship management is a new concept only recently receiving attention.
Answer
  • True
  • False

Question 132

Question
While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on
Answer
  • customer segmentation.
  • the use of the ABC process.
  • the use of the SCOR process.
  • variability or consistency of this process.

Question 133

Question
Customer service is anything that touches the customer.
Answer
  • True
  • False

Question 134

Question
The buyer and seller look at order time from the same perspective.
Answer
  • True
  • False

Question 135

Question
Customer service is of equal importance to both logistics and marketing.
Answer
  • True
  • False

Question 136

Question
Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.
Answer
  • gross sales
  • back orders
  • the forecast
  • gross margin

Question 137

Question
Dependability is not as important to a buyer as is absolute length of lead time.
Answer
  • True
  • False

Question 138

Question
“Order to cash” and “replenishment cycle” are the same.
Answer
  • True
  • False

Question 139

Question
Customer service can be defined as
Answer
  • a philosophy.
  • order fulfillment.
  • the SCOR model.
  • anything that touches the customer.

Question 140

Question
Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to
Answer
  • increase the velocity of cash back to the selling organization.
  • attract new customers.
  • develop “Clicks” and “Bricks” firms.
  • manage inventory more effectively.