question

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses

answer

True

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

question

Globalization has had little effect on consumers

answer

False

question

Supply and demand has become less volatile as managers become more adept at controlling the elements

answer

False

question

Outsourcing is a fairly new concept

answer

False

question

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

answer

True

question

It is expected that some or all of the BRIC countries (Brazil, Russia, India, & China) will replace the so-called VISTA (Vietnam, Indonesia, South Africa, Turkey and Argentina) as low cost producers of various products and services

answer

False

question

The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily

answer

False

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

question

The U.S. transportation system was deregulated in the 1930's and 1940's in response to economic conditions and World War 2

answer

False

question

Even though there are references to supply chain management in the 1980's , SCM did not capture the attention of senior-level management until the 1990's

answer

True

question

Supply chain managers no longer need to worry about sub optimization in light of todays technology

answer

False

question

The utility created through the basic marketing activities is known as place utility

answer

False

question

Transportation is the physical movement or flow of goods

answer

True

question

During the 1990's and 2000's, logistics costs as a percentage of gross national product declined

answer

True

question

An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow

answer

True

question

Acme Battery distributes its batteries to warehouses, where they are store until orderly by a retailer. The warehouses are located close by the retail markets served. This is the logistics channel approach to logistics

answer

True

question

In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement

answer

False

question

The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis

answer

False

question

To hold down distribution cost, the lowest close carrier should always be used

answer

False

question

The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect

answer

True

question

Globalization is not considered to be one of the external factors driving change in logistics

answer

False

question

The third era of globalization is said to have begun around the year 2000. The significant characteristic of this era is that it is being powered by individuals and smaller organizations in contrast to the countries of the first era and the large companies of the second era

answer

True

question

The supply chain should manage four important flows, namely, materials, and products, information, financials, and demand

answer

True

question

Operating globally has become harder to accomplish for individuals and small companies

answer

False

question

The terms of a demise charter transfers full control of the chartered vessel to the charterer

answer

True

question

Customs Trade Partnership Against Terrorism (C-TPAT) is a mandatory program in which importers must participate

answer

False

question

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

answer

False

question

A maquiladora plant can be located anywhere in South America

answer

False

question

Ocean transportation offsets slower service with lower rates than other modes

answer

True

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

False

question

A Foreign Freight Forwarder is unregulated by the government

answer

False

question

Export Trading Companies and Export Management Companies are essentially the same

answer

False

question

An importer can store goods in a bonded warehouse for up to three years without paying duty

answer

True

question

Soft issues such as social and cultural concerns should not present a challenge for supply chain managers, whose role is to focus on the physical side of supply chain execution

answer

False

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

question

A horizontal relationship refers to firms on the same level in the supply chain

answer

False

question

The range of relationships with 3PL's ranges from being a vendor to being a vertical supplier

answer

False

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

question

Drivers and facilitators are internal issues that an organization must address before seeking a 3PL

answer

False

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

False

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

question

A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services

answer

False

question

Outsourcing and contract logistics are terms sometimes used to describe third-party logistics

answer

True

question

A financial based 3PL is a firm that takes a financial interest in an organization in order to underwrite the outsourcing of that firms logistics

answer

False

question

The most frequently outsourced function is freight bill payment

answer

False

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

False

question

Outbound-to-customer logistics systems are also referred to as physical distribution

answer

True

question

Materials management and physical supply are terms that cannot be used interchangeably

answer

False

question

Demand management might be defined as focused efforts to estimate and manage customers demand, with the intention of using this information to shape operating decisions

answer

True

question

Phantom demand is created by over-ordering during peak demand

answer

True

question

The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks

answer

False

question

External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand

answer

False

question

Forecasting has become extremely accurate, especially since the development of the S&OP process

answer

False

question

Dependent demand is directly influenced by independent demand

answer

True

question

A weighted moving average assigns higher weights to more recent periods

answer

True

question

Exponential shooting can use constants higher than 1, but not more than 5

answer

False

question

Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast

answer

True

question

While there are four types of forecast error measures that can be used, none are foolproof

answer

True

question

A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute

answer

True

question

Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation

answer

False

question

A channel of distribution is controlled by the marketing departments, which selects the physical structures and intermediaries through which the products flow

answer

False

question

An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs

answer

True

question

Integrated fulfillment is preferred to dedicated fulfillment

answer

False

question

Customer service is anything that touches the customer

answer

True

question

Most organizations employ all six definitions of customer service in their management process

answer

False

question

Customer relationship management is a new concept only recently receiving attention

answer

False

question

Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers based on the specific costs of serving a customers orders relative to how, how much, what, and when a customer orders

answer

True

question

The identification of the product/service package for each customer segment is one of the easier activities in the CRM process

answer

False

question

Activity-Based costing works well in warehouse-type environments but does not work or customer service applications

answer

False

question

With the proper information on how a customers interaction with the shipper drives the firms costs, the firm can then segment its customers by profitability

answer

True

question

"Order to cash" and "order cycle" are the same

answer

True

question

"Order to cash" and "replenishment cycle" are the same

answer

False

question

The buyer and seller look at order time from the same perspective

answer

Flase

question

Process D1: Deliver stocked product in the supply chain council SCOR model is the same as the OTC cycle model

answer

True

question

There are ten principal activities to the OTC model

answer

False

question

Reserve inventory and determined delivery date has traditionally been referred to as order processing

answer

True

question

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory

answer

True

question

Customer service is of equal importance to both logistics and marketing

answer

True

question

From a marketing perspective, logistics customer service can be thought of as a feature of the argument product that adds value for the customer

answer

True

question

Dependability is not as important to a buyer as is absolute length of lead time

answer

False

question

There are four types of communications that exist between a buyer and a seller

answer

False

question

There are five logistics performance metrics from the buyers point of view

answer

True

question

A stockout always results in a back order

answer

False

question

For the best service, all products should be available at all levels regardless of cost

answer

False

question

By using the latest information technology it is possible to substitute information for inventory and other logistics expenses

answer

True

question

The manufacturer must lead the channel design process regardless of the relative market power and financial strength of the members of the supply chain

answer

False

Exam 1 True/False – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards