Logistics Exam Ch 1 - 5 - Flashcards

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Logistics clearly contributes to ___________ and ___________ utility.

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time; place

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___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.

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Possession

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___________ utility refers to having products available where they are needed by

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Place

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What concept refers to "how well company resources are used to achieve what a company promises it can do?"

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Effectiveness

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Every customer getting the same type and levels of logistics service refers to

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mass logistics

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What two logistics activities make the heaviest use of the Internet?

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Purchasing and transportation

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World trade grew at an average annual rate of approximately ___________ percent between 1997 and 2007.

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6

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The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.

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systems

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The movement and storage of materials into a firm refers to:

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materials management

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What concept refers to the storage of finished product and movement to the customer?

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Physical distribution

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Logistics managers use the ___________ approach to coordinate inbound logistics, materials management, and physical distribution in a cost efficient manner.

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total cost

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A cost trade-off is a situation where:

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some costs increase and some costs decrease

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The ___________ department often measures inventory in terms of its cost or value in dollars, whereas ___________ tends to measure inventory in terms of units.

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Finance; logistics

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A common interface between production and logistics involves:

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the length of production runs

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Landed costs refer to:

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a price that includes both the cost of the product plus transportation to the buyer

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____________ refers to being out of an item at the same time there is demand for it.

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Stockout

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Which channel covers the movement of title to the goods?

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ownership

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____________ is bringing together similar stocks from different sources.

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Accumulating

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____________ refers to breaking a homogenous supply into smaller lots.

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Allocating

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The most costly logistics activity in many firms is ____________.

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transportation management

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How do data and information differ?

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data are simply facts; information is a body of facts in a format suitable for decision making

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____ provide effective ways to process organizational business data, to perform calculations, and to create documents.

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Office automation systems

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The most relevant general software package for logisticians is:

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spreadsheets

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4. ____ help various stakeholders—employers, suppliers, customers—work together by interacting and sharing information in many different forms.

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Communication systems

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What has emerged as the measuring stock for logistics information technology in the century 21st?

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wireless communication

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____ refers to a network of satellites that transmits signals that pinpoint the exact location of an object.

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Global positioning systems

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___________ refers to the computer-to-computer transmission of business data in a structured format.

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EDI

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Automatic identification systems are an essential component in ____________.

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point-of-sale systems

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The most popular automatic identification system currently in use is ___________.

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bar code scanners

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There are suggestions that widespread adoption of RFID will only occur when the price of read-only tags drops below ____ cents.

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2

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The primary advantage of ____________ is that it enables a firm to test the feasibility of proposed changes at relatively little expense.

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simulation

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Warehouse management systems represent an example of what general type of information management system?

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Decision support system

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Which of the following is not a potential benefit of transportation management systems?

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a. Fewer stockouts b. Reduced fuel consumption c. Decreased empty vehicle miles d. Reduced transportation expenditures

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____________ refers to the application of mathematical tools to large bodies of data in order to extract correlations and rules.

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Data mining

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____ create and maintain consistent data processing methods and an integrated database across multiple business functions.

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Enterprise systems

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The origins of contemporary ERP systems can be traced back to logistics and ____________.

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manufacturing

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A general rule of thumb is that the actual time to implement ERP systems may range from ____________ to ____________ times longer than the time period specified by the ERP vendor.

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2; 4

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What has emerged as the most popular application of on-demand software (software- as-a-service)?

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Transportation management systems

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In a reverse auction, ____________.

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One buyer invites bids from multiple sellers

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____________ has been identified as the biggest information technology that companies face today.

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Information security

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Depending on industry and product type, reverse logistics costs as a percent of revenue can range between ____ and ____ percent.

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3; 6

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____ strategy is focused on determining the goals for the company, the types of businesses in which the company should compete, and the way the company will be managed.

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Corporate-level

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Which of the following is not one of the generic strategies that can be pursued by an organization, as identified by strategist Michael Porter?

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Value enhancement

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A ____ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.

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Differentiation

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Which generic strategy concentrates an organization's effort on a narrowly defined market to achieve either a cost leadership of differentiation strategy?

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Focus

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A(n) ____ entails the functional units of an organization providing input into the other levels of strategy formulation.

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Hierarch of strategy

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Which of the following represents the preferred hierarchy of strategy (i.e., from the first strategy to be developed to the last to be developed)?

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Corporate‡ business unit‡ functional

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____ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes.

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Logistics

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Which of the following is not a potential type of logistics strategy decisions?

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Investments in technology that support logistics activities Selecting appropriate transportation modes Deployment of inventory Number and location of warehouses

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The ____ shows revenues, expenses, and profit for a period of time.

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Income statement

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In general, the ____ measures the profitability of the products and/or services provided by a company

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Income statement

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The ____ reflects the assets, liabilities, and owners' equity at a given point in time.

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Balance sheet

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The balance sheet reflects the assets, liabilities, and ____ at a given point in time.

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Owners' equity

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Which of the following does not appear on the balance sheet?

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Net income

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The current ratio is calculated by dividing ____ by ____.

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Total current assets; total current liabilities

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Which of the following is a common measure of organizational financial success?

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Return on investment

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What provides the framework for conducting return on assets analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?

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The Strategic Profit Model SPM

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Return on assets equals:

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Net profit margin times asset turnover

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What is the formula for net profit margin?

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Net profit divided by sales

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With respect to net profit margin, the most relevant categories for logistics managers to consider are:

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Sales, costs of goods sold, total expenses

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What is the formula for asset turnover?

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Total sales divided by total assets

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With respect to asset turnover, ____ is typically the most relevant logistics asset.

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Inventory

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The balanced scorecard approach is based on the belief that management should evaluate their business from ____ distinct perspectives.

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Four

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Logistics measurement systems have been traditionally information on how many types of performance?

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Five

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____ and ____ are the two basic organizational structures associated with logistics.

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Fragmented; unified

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In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.

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fragmented

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In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.

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fragmented

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One problem with a ____ logistics structure is that because logistics activities are scattered throughout the firm, they likely remain subservient to the objectives of the department in which they are housed.

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fragmented

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In a ____ logistics structure, multiple logistics activities are combined into, and managed as, a single department.

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unified

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A ____ logistics organization implies that the corporation maintains a single logistics department that administers the related activities for the entire company from the home office.

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centralized

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A ____ logistics organization means that logistics-related decisions are made separately at the divisional or product group level.

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decentralized

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A primary advantage of ____ logistics is its relative efficiency, whereas a primary advantage of ____ logistics is its customer responsiveness.

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centralized; decentralized

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____ organizational design has its foundations in the command-and-control military operation, where decision-making and communication often follow a top- down flow.

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Hierarchical

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A ____ organizational design attempts to create an organization that is responsive to the parameters of the contemporary business environment.

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network

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A key attribute of network organizational design is a shift from ____ to ____.

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function; process

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____ refers to satisfying current and emerging customer needs.

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Relevancy

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____ can be defined as an organization's ability to address unexpected operational situations.

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Flexibility

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____ refers to the amount of output divided by the amount of input.

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Productivity

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Which of the following is a way to improve to productivity?

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increase output while holding input constant

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Productivity improvement efforts in logistics are often directed towards ____.

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increasing output while holding input constant

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What is the most important purpose of warehouse work rules?

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to keep employees from engaging in unproductive and potentially destructive activities

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A ____ is a device used to monitor and control the actions taken by a driver and his/her vehicle.

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tachograph

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The materials stolen in ____ are usually for the employee's own use.

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pilferage

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What is the primary difference between pilferage and theft?

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pilferage involves a firm's own employees, while theft involves efforts from outsiders

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The large increase in pirate attacks between 2008 and 2009 was due to a surge in attacks off the ____ coast

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Somalia

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The concept of logistics social responsibility, or corporate social responsibility issues that relate directly to logistics, did not emerge until which decade?

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1990-1999

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The two areas in logistics systems where most energy costs occur are ____ and ____.

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warehousing; transportation

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With respect to the design of warehouses, one suggestion for energy savings is to make sure that dock doors are not placed on the ____ side of a building.

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north

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Transportation accounts for approximately ____ of all petroleum consumption in the United States.

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two-thirds

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Reverse logistics can be ____ times more expensive than forward logistics.

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4 to 5

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Two of the most important U.S. government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency

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Customs and Border Protection

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Which of the following is responsible for the security of the U.S. transportation system?

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Transportation Security Administration

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The Importer Security Filing (ISF) rule requires importers to file ____ pieces of information and carriers to file ____ pieces of information.

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10; 2

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Which of the following is an advantage of a decentralized logistics organization?

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can be responsive to customer service requirements

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Which of the following is an advantage of a centralized logistics organization?

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good opportunities for freight consolidation

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An under performing supply chain is defined as one that exhibits poor service, unproductive assets, and

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High variable operating costs

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The supply chain management philosophy emerged in which decade?

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1990s

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A ____________ encompasses all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows.

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supply chain

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Although nearly any organization can be part of a supply chain, supply chain management requires:

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overt management efforts by the organizations in a supply chain

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Three of the most prominent supply chain management frameworks are the Supply- Chain Operations Reference (SCOR) model, the Global Supply Chain Forum (GSCF) model, and the ____.

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The Process Classification Framework (PCF)

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The current Global Supply Chain Forum (GSCF) model identifies ____________ key processes associated with supply chain management.

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eight

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The ____________ is organized around 12 cross-enterprise operating and management processes.

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Process Classification Framework

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Contemporary supply chains should be fast and ____________.

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agile

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An organization's ability to respond to changes in demand with respect to volume and variety refers to ____.

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agility

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What is a perfect order?

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simultaneous achievement of relevant customer metrics

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____ refers to focusing part of one's supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output.

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Leagility

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Positive, long-term relationships between supply chain participants refer to:

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partnerships

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According to the text, ____________ has been at the center of the changes taking place that affect the supply chain.

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technology

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The two key factors that have sparked much of the technological change affecting supply chains are ____________ and ____________.

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Computing power; Internet

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The variability in demand orders among supply chain participants:

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refers to the bullwhip effect

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Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:

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supply chain collaboration

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Supply chain collaboration can be classified as transnational, strategic, or ____ in nature.

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tactical information sharing

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____ collaborations offer the best opportunity for improving supply chain performance.

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Strategic

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The general idea behind ____ is that one company allows a specialist company to provide it with one or more logistics functions.

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Third-party logistics

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What is a fourth-party logistics provider?

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a company that ensures that various 3PLs are working toward the relevant supply chain goals and objectives

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____ combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.

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Supply chain analytics

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In a(n) ____ approach, all relevant software applications are provided by a single vendor.

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single integrator

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____ refers to "how we do things around here" and reflects an organization's vision, values, and strategic plans.

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Corporate culture

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What concept refers supply chain?

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Vertical integration

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There are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the following is not one of them?

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intensive distribution

Logistics Exam Ch 1 – 5 – Flashcards

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