Question 1

____ refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns

Accepted Answer

Inventory

Question 2

Holding high levels of inventory result in ______ inventory carrying costs and ____ stockout costs.

Accepted Answer

High; low

Question 3

_____ stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle.

Accepted Answer

Base

Question 4

_____ stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time.

Accepted Answer

Buffer

Question 5

____ stock refers to inventory that is en route between various nodes in a logistics system.

Accepted Answer

Pipeline

Question 6

___ stock refers to inventory that is held for several reasons, to include seasonal demand, projected price increases, and potential shortages of product.

Accepted Answer

Speculative

Question 7

____ stock is carried to stimulate demand.

Accepted Answer

Psychic

Question 8

Inventory costs in the U.S. in the twenty-first century represent approximately ____ of total logistics costs

Accepted Answer

one-third

Question 9

Inventory carrying costs in the U.S. in the 21st century have ranged between ____ and ____ percent.

Accepted Answer

19;24

Question 10

Inventory shrinkage:

Accepted Answer

refers to the fact that more items are recorded entering than leaving warehousing facilities

Question 11

In the United States, _____ has traditionally provided a convenient starting point when estimating the interest charges associated with maintaining inventory.

Accepted Answer

The prime rate of interest

Question 12

Which of the following situations is likely the most damaging with respect to a stockout?

Accepted Answer

customer goes to a competitor for this purchase

Question 13

Under conditions of certainty, a reorder point is equal to:

Accepted Answer

average daily demand in units times the length of the replenishment cycle

Question 14

The economic order quantity deals with calculating the proper order size with respect to ___ costs and ____ costs.

Accepted Answer

carrying; ordering

Question 15

The EOQ determines:

Accepted Answer

the point at which the sum of carrying costs and ordering costs is maximized

Question 16

concerning the EOQ model, if demand or annual usage increases by 10%, then the EOQ will:

Accepted Answer

increase

Question 17

concerning the EOQ model, if the ordering costs increase by 10% and the product value increases by 10%, then the EOQ will:

Accepted Answer

increase

Question 18

Inventory flow diagrams illustrate that safety stock can prevent two problem areas, _____ and ______.

Accepted Answer

increased rate of demand; longer-than-normal replenishment

Question 19

ABC analysis of inventory:

Accepted Answer

Recognizes that inventories are not of equal value to a firm

Question 20

Dead inventory refers to product for which there is no sales during a ____ month period.

Accepted Answer

twelve

Question 21

All of the following are suggestions for dealing with a dead stock except ____

Accepted Answer

all of the above are suggestions

Question 22

Inventory turnover can be calculated by

Accepted Answer

adding beginning and ending inventory; divide by two

Question 23

____ items refer to those that are used or distributed together.

Accepted Answer

Complementary

Question 24

___ products refer to those that are used or distributed together.

Accepted Answer

Substitue

Question 25

Under ____, the size and timing of replenishment orders are the responsibility of the manufacturer.

Accepted Answer

vendor-managed inventory

Question 26

The initial focus in facility location is ____

Accepted Answer

region

Question 27

_____ is the most popular location for near-sourcing among companies that do business in North America.

Accepted Answer

Mexico

Question 28

What two countries account for approximately one-third of the world\'s population?

Accepted Answer

China and India

Question 29

A locavore strategy:

Accepted Answer

refers to purchasing locally grown or produced foods

Question 30

The general trend in recent years has been for companies to do what with their distribution networks?

Accepted Answer

reduce the number of fatalities

Question 31

A pure material:

Accepted Answer

is one that loses no weight in manufacturing and/or processing

Question 32

the processing point for a weight-losing raw material:

Accepted Answer

should be near its source

Question 33

the processing point for a weight-gaining raw material:

Accepted Answer

should be near the final market

Question 34

Over the past quarter century, discussion of natural resources and facility location has increasingly factored in ____ considerations.

Accepted Answer

environmental

Question 35

Labor force ___ are a key locational determinant as supply chains become more global in nature.

Accepted Answer

wage rates

Question 36

____ plants, which are located just south of the U.S.- Mexican border, provide much needed jobs to Mexican workers and allow for low-cost, duty-free production so long as all the goods are exported from Mexico.

Accepted Answer

Maquilladora

Question 37

Right-to-work laws refer to a situation where:

Accepted Answer

an individual cannot be compelled to join a union as a condition of employment

Question 38

An expatriate refers to a person:

Accepted Answer

who is sent to work in other countries for extended periods of time

Question 39

turnover rates for expatriate workers current run between ____ percent.

Accepted Answer

20 and 40

Question 40

from a business perspective, _____ taxes are analogous to the personal property taxes paid by individuals.

Accepted Answer

inventory

Question 41

the existence of transportation competition, whether intermodal or intramodal, tends to:

Accepted Answer

have both cost and service benefits to users

Question 42

____ refers to the net advantages which can be gained by a sharing of common locations by various enterprises.

Accepted Answer

Agglomeration

Question 43

With respect to commodity flows, logisticians are especially interested in ___ and ___.

Accepted Answer

how much is being produced; where it is being shipped.

Question 44

The European Union\'s expansion into Central and Eastern European countries has resulted in Poland and ___ becoming favored distribution sites because of their relatively central location.

Accepted Answer

Czech Republic

Question 45

Which of following is not a possible quality of life consideration in facility location?

Accepted Answer

all of the above are quality of life considerations

Question 46

A \"brownfield\" is

Accepted Answer

a property for which use and redevelopment is complicated by past use.

Question 47

A free trade zone refers to:

Accepted Answer

an area in which products can be stored, exhibited, or processed without being subjected to duties and quotas unless they enter the customs territory of the zone country.

Question 48

The center-of-gravity approach to location analysis minimizes:

Accepted Answer

distance to existing facilities

Question 49

How does the weighted center-of-gravity approach to location analysis differ from the center-of-gravity approach to location analysis?

Accepted Answer

the weighted approach considers shipment volume

Question 50

the Worker Adjustment and Retraining Notification (WARN) Act mandates that employers give ____ days notice about plant closings and mass layoffs.

Accepted Answer

60.

Question 51

Warehousing and ____ are substitutes for each other.

Accepted Answer

transportation.

Question 52

_____ and ____ refer to adjustments associated with the quantity of product.

Accepted Answer

Accumulating; allocating

Question 53

______ involves bringing together similar stocks from different sources.

Accepted Answer

Accumulating

Question 54

____ refers to building up a variety of different products for resale to particular customers.

Accepted Answer

Assorting

Question 55

Warehouses emphasize ____ and their primary purpose is to maximize ___

Accepted Answer

product storage; usage of available storage space

Question 56

Distribution centers emphasize ___ and their primary purpose is to ____.

Accepted Answer

rapid movement of product; throughput.

Question 57

Throughput refers to:

Accepted Answer

amount of product entering and leaving a facility in a given time period.

Question 58

____ refers to a process where a product is received in a facility, occasionally married with product going to the same destination, and then shipped at the earliest time, without going into longer-term storage.

Accepted Answer

cross-docking

Question 59

Warehousing labor safety practices in the U.S. are monitored by which federal government agency?

Accepted Answer

None of the above

Question 60

What is considered to be the biggest drawback to public warehousing?

Accepted Answer

Lack of control by the user

Question 61

____ warehousing is owned or occupied on a long-term lease by the firm using them,

Accepted Answer

Private

Question 62

With respect to contract warehousing, ____ to ___ year contracts appear to allow sufficient time for the warehousing provider to learn the client\'s business while allowing the client some flexibility in case the agreement fails to produce acceptable results.

Accepted Answer

3;5

Question 63

Multiclient warehousing mixes attributes of ____ and ___ warehousing.

Accepted Answer

public; contract

Question 64

One of the best pieces of advice with respect to the design of warehousing facilities is to ___.

Accepted Answer

use common sense

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