Logistics Management Test 1 Ch 1-5 - Flashcards

question

Logistics clearly contributes to ___________ and ___________ utility.

answer

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 customers.

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Place

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All of the following are types of economic utility, except: a. Time b. Production c. Place d. Possession e. All of the above are types of economic utility

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Production

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"How well a company does what it says it's going to do" represents ___________.

answer

effectiveness

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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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Efficiency

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Every customer getting the same type and level of logistics service refers to ___________.

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mass logistics

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Which of the following is not a reason for the increased importance of logistics? a. growing power of manufacturers b. reduction in economic regulation c. globalization of trade d. technological advances e. all of the above are reasons

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growing power of manufacturers

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Widespread reductions in economic regulation of US transportation carriers occurred in ____.

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1970s and 1980s

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The ____ concept suggests that the customer desires a product offering that is highly tailored to the customer's exact preferences.

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customized customer

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Approximately ____ percent of US adult women are currently in the workforce.

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60

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____ refers to the removal of intermediaries between producer and consumer.

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disintermediation

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____ are stores with large amounts of both floor space and product for sale.

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big-box retailers

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World trade grew at an average annual rate of approximately ____ percent between 1991 and 2011.

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5.5

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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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Which 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 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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____ refers to the delay of value-added activities such as assembly, production, and packaging to the latest possible time.

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postponement

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The four basic components of the marketing mix include all of the following except: a. price b. production c. place d. promotion

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production

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Co-branding allows customers to purchase products from two or more name-brand retailers at one store location. Which of the following statements about co-branding is false? a. they offer potential customers convenience by satisfying needs at one place b. they boost brand awareness c. they create relatively few logistical challenges d. they increase customer spending per transaction e. all of the above are true

answer

they create relatively few logistical challenges

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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 of the following is not part of the marketing channel? a. the logistics channel b. the negotiations channel c. the promotion channel d. the finance channel e. all are part of the marketing channel

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all are part of the marketing channel

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The ownership channel consists of all parties except: a. customers b. manufacturers c. wholesalers d. retailers

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customers

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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 homogeneous supply into smaller lots.

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allocating

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Channel intermediaries:

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fill niches

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Brokers are intermediaries that are commonly associated with the ____ channel.

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negotiation

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The most costly logistics activity in many firms is ____

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transportation management

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U.S. News & World Report suggests that logistics employment should increase by ____ percent through 2018.

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20

question

A common interface between production and logistics involves:

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the length of production runs

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Which of the following is not a benefit to utilizing information in logistics? a. greater knowledge and visibility across the supply chain b. greater awareness of customer demand via point-of-sale data c. better coordination of manufacturing, merchandising, and distribution through ERP tools d. more streamlined order processing and reduced lead time e. all of the above are benefits

answer

all of the above are benefits

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How do data and information differ?

answer

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

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____ refers to the collection of large amounts of near-real-time data collected through a variety of sources such as sensors and smart phones, among others.

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big data

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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 ____.

answer

spreadsheets

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Which of the following is not considered a general software package? a. spreadsheets b. presentation packages c. word processing d. database management e. all are general software packages

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all are general software packages

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

answer

communication systems

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

answer

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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Electronic data interchange represents what general type of information management system?

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transaction processing system

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

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electronic data interchange

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Which of the following statements about Electronic Data Interchange is not true? a. EDI can have high setup costs b. EDI can result in increased inventory carrying costs c. EDI can lead to increased billing accuracy d. the Internet is likely a complement to, rather than substitute for, EDI

answer

EDI can result in increased inventory carrying costs

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Automatic identification systems are an essential component in ____.

answer

point-of-sale systems

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The most popular automatic identification system currently in use is ____

answer

bar code scanners

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Which of the following statements about radio-frequency identification (RFID) is false? a. RFID only offers read capabilities b. Walmart has been a major catalyst for RFID usage in logistics c. RFID can store large quantities of data d. RFID has helped to reduce the occurrence of inventory stockouts e. all of the above are true

answer

RFID only offers read capabilities

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A logistics information system begins with:

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a logistics manager requesting information

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All of the following statements about logistics information systems are true, except: a. "timely" can refer to the up-to-date status of information b. internal sources of logistics information are relatively plentiful c. "timely" can refer to how quickly a manager receives requested information d. a LIS must be concerned with the nature and quality of data e. all of the above are true

answer

internal sources of logistics information are relatively plentiful

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

answer

simulation

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Which of the following is not a logistics-related decision support system? a. simulation b. application-specific software c. transportation management systems d. electronic data interchange e. all of the above are logistics-related decision support systems

answer

electronic data interchange

question

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

answer

decision support system

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Which of the following is not a potential benefit of transportation management systems? a. fewer stockouts b. reduced fuel consumption c. decreased empty vehicle miles d. reduced transportation expenditures e. all of the above are benefits

answer

fewer stockouts

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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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Efficient data mining is dependent upon ____.

answer

data warehouses

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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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Which of the following statement about ERP is false? a. In recent years, ERP vendors have begun to provide high-quality application-specific logistic capabilities b. ERP implementation costs can easily reach tens of millions of dollars c. ERP's origins can be traced back to finance and manufacturing d. ERP glitches often have a logistical component to them e. all of the above are true

answer

ERP's origins can be traced back to finance and manufacturing

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All of the following are potential costs associated with ERP implementation, except: a. employee training b. system testing c. data conversion d. upgraded computer hardware e. all of the above are costs

answer

all of the above are costs

question

Approximately ____ percent of the world's population currently uses the Internet.

answer

35

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The return rates for online purchases is approximately ____ percent

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30

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Which of the following statements is false? a. orders associated with online retailing tend to be for smaller quantities than in-store retailing b. online retailing is characterized by open-case, rather than full-case, picking c. online retailers are challenged by last-mile considerations d. online retailing and in-store retailing experience similar rates of product return

answer

online retailing and in-store retailing experience similar rates of product return

question

The worldwide public cloud services market grew by approximately ____ percent between 2011 and 2012?

answer

20

question

What has emerged as the most popular application of on-demand logistics software (cloud computing)?

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transportation management systems

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Which of the following is not a type of benefits that comes from electronic procurement? a. transactional benefits b. management information benefits c. compliance benefits d. production benefits e. all of the above are benefits

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production benefits

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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 challenge that companies face today.

answer

the cost of technology

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

answer

3;6

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Which of the following is not a level at which strategy can be formulated? a. corporate b. business unit c. functional d. all of the above are levels at which strategy can be formulated

answer

all of the above are levels at which strategy can be formulated

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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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Strategy at a ____ level is primarily focused on the products and services provided to customers and on finding ways to develop and maintain a sustainable competitive advantage with these customers.

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business unit

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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? a. value enhancement b. differentiation c. cost leadership d. focus e. all of the above are generic strategies

answer

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 or 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.

answer

hierarchy 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)? a. corporate->business unit->functional b. functional->business unit->corporate c. corporate->business unit->divisional d. business unit->divisional->functional

answer

corporate->business unit->functional

question

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

answer

logistics

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Which of the following is not a potential type of logistics strategy decisions? a. investments in technology that support logistics activities b. selecting appropriate transportation modes c. deployment of inventory d. number and location of warehouses e. all of the above are potential logistics strategy decisions

answer

all of the above are potential logistics strategy decisions

question

When developing logistics strategy, a ____ strategy refers to the management of logistics activities with a focus on costs.

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process

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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.

answer

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? a. assets b. owners' equity c. liabilities d. net income e. all of the above appear on the balance sheet

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net income

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The current ratio is calculated by dividing ____ by ____.

answer

total current assets; total current liabilities

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Which of the following is a common measure of organizational financial success? a. quick ratio b. the income statement c. current ratio d. return on investment

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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?

answer

the Strategic Profit Model

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Return on assets equals:

answer

net profit margin times asset turnover

question

Suppose that a logistics manager is able to eliminate some unnecessary inventory, which reduces the value of current assets as well as total asset value. What is the corresponding impact on inventory turnover and return on assets?

answer

both inventory turnover and return on assets will increase

question

Which of the following is false? a. the Strategic Profit Model (SPM) can assist the logistics manager in the evaluation of cash flows and asset utilization decisions b. the SPM fails to consider the timing of cash flows c. the SPM is subject to manipulation in the short run d. the SPM fails to recognize assets that are dedicated to specific relationships e. all of the above are true

answer

all of the above are true

question

What is the formula for net profit margin?

answer

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:

answer

sales, costs of goods sold, total expenses

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What is the formula for asset turnover?

answer

total sales divided by total assets

question

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

answer

inventory

question

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

answer

four

question

Which of the following is not one of the perspectives evaluated in the balanced scorecard approach? a. customers b. internal business processes c. learning and growth d. financial e. all of the above are perspectives in the balanced scorecard approach

answer

all of the above are perspectives in the balanced scorecard approach

question

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

answer

five

question

Performance measurement in ____ is used to identify design and operations options that provide benefits in terms of increased speed or reduced costs.

answer

warehousing

question

____ looks at how long an organization's cash is tied up in receivables, payables, and inventory.

answer

cash-to-cash cycle

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

answer

fragmented; unified

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

answer

fragmented

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

answer

fragmented

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

answer

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.

answer

centralized

question

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

answer

decentralized

question

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

answer

centralized; decentralized

question

Which of the following is an advantage of a decentralized logistics organization? a. less expensive than a centralized organization b. good opportunities for freight consolidation c. better control over company data d. can be responsive to customer service requirements

answer

can be responsive to customer service requirements

question

Which of the following is an advantage of a centralized logistics organization? a. less expensive than a decentralized organization b. good opportunities for freight consolidation c. can be responsive to customer service requirements d. easier to manage than a decentralized organization

answer

good opportunities for freight consolidation

question

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

answer

hierarchical

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

answer

network

question

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

answer

function; process

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____ refers to satisfying current and emerging customer needs.

answer

relevancy

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

answer

flexibility

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

answer

productivity

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Productivity improvement efforts in logistics are often directed towards ____.

answer

increasing output while holding input constant

question

What is the most important purpose of warehouse work rules? a. to control pilferage b. to keep employees from engaging in unproductive and potentially destructive activities c. to protect companies from union grievance procedures d. to give managers control over warehouse workers

answer

to keep employees from engaging in unproductive and potentially destructive activities

question

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

answer

tachograph

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____ is a set of generic standards used to document, implement, and demonstrate quality management and assurance systems.

answer

ISO 9000

question

____ refers to the integration of Six Sigma and the Lean approach.

answer

Lean Six Sigma

question

What is a key difference between IS0 9000 and the Baldrige Quality Award?

answer

the Baldrige Award is more externally focused than is ISO 9000

question

The ____ has been established to identify uncertainty sources that can affect the risk exposure for logistics activities.

answer

Logistics Uncertainty Pyramid Model

question

From a logistics perspective, two of most important government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency and ____.

answer

Customs and Border Protection

question

The ____ is responsible for the security of the U.S. transportation system.

answer

Transportation Security Administration

question

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

answer

10; 2

question

All of the following are reasons why logisticians should be concerned about theft, except: a. stolen products may reappear to compete with other products b. the time and costs associated with theft aren't always covered by insurance c. some organizations will avoid locating their facilities in areas characterized by high crime rates d. theft can lead to stockouts in the distribution channel e. all of the above are reasons to be concerned about theft

answer

all of the above are reasons to be concerned about theft

question

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

answer

pilferage

question

What is the primary difference between pilferage and theft?

answer

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

question

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

answer

1990-1999

question

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

answer

warehousing; transportation

question

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

answer

north

question

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

answer

two-thirds

question

Which of the following is not one of the three critical factors associated with the process of managing returned goods? a. why products are returned b. whether returned goods should be managed internally or outsourced to a third party c. how to optimize reverse logistics d. how many products are returned

answer

how many products are returned

question

____ complexity refers to the growing number nodes and the associated changes to the links in the logistics system.

answer

network

question

____ complexity centers on the implications associated with the increasing number of products that most companies continue to face in an effort to differentiate themselves with their customers.

answer

range

question

An underperforming supply chain is defined as one that exhibits poor service, unproductive assets, or ____.

answer

high variable operating costs

question

The supply chain management concept originated in what discipline?

answer

logistics

question

What concept can be viewed as a combination of processes, functions, activities, relationships, and pathways along which products, services, information, and financial transactions move in and between enterprises from original producer to ultimate end user or consumer?

answer

supply chain

question

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

answer

companies to adopt an enterprise-to-enterprise point of view

question

The two most prominent supply chain management process frameworks are the Supply Chain Operations Reference (SCOR) Model and the ____.

answer

Global Supply Chain Forum (GSCF) Model

question

Which organizational function is not a focus of the Supply Chain Operations Reference (SCOR) model?

answer

marketing

question

Which of the following is not one of the processes in the Supply Chain Operations Reference (SCOR) model? a. source b. plan c. make d. enable e. all of the above are processes in the SCOR Model

answer

all of the above are processes in the SCOR Model

question

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

answer

eight

question

Contemporary supply chains are increasingly required to be fast and ____.

answer

agile

question

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

answer

agility

question

Which of the following is not a potential outcome from a supply chain's failure to be fast and agile? a. dissatisfied customers b. reduced profitability c. decreased market share d. lower stock price e. all of the above are potential outcomes

answer

all of the above are potential outcomes

question

What is a perfect order?

answer

simultaneous achievement of relevant customer metrics

question

____ 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.

answer

leagility

question

What concept refers to the variability in demand orders among supply chain participants?

answer

the bullwhip effect

question

Which of the following is not a way to reduce inventory levels? a. smaller, more frequent orders b. use of premium transportation c. supply-push replenishment d. elimination of slower-moving products e. all of the above are ways to reduce inventory levels

answer

supply-push replenishment

question

Which of the following is not an attribute of relational exchanges? a. trust b. commitment c. dependence d. joint investment e. all of the above are attributes of relational exchanges

answer

all of the above are attributes of relational exchanges

question

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

answer

supply chain collaboration

question

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

answer

tactical information sharing

question

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

answer

strategic

question

Tailored business relationships between two supply chain members refer to:

answer

supply chain partnership

question

Which of the following are not an attribute of supply chain partnerships? a. mutual trust b. increased willingness to share information c. buying decisions based on value as opposed to cost or price d. compatible goals e. all of the above are attributes of supply chain partnerships

answer

all of the above are attributes of supply chain partnerships

question

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

answer

technology

question

Two key factors, ____ and ____, have sparked much of the technological change affecting supply chains.

answer

computing power; Internet

question

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

answer

third-party logistics

question

Which of the following statements is true? a. third-party logistics companies demand only a few activities from third-party logistics providers b. the decision to use third-party logistics can only be strategic in nature c. third-party logistics is synonymous with fourth-party logistics d. a common cause of third-party logistics failure is unreasonable and unrealistic expectations e. all of the above are false

answer

a common cause of third-party logistics failure is unreasonable and unrealistic expectations

question

What is a fourth-party logistics provider?

answer

a company that ensures that various third-party logistics companies are working toward the relevant supply chain goals and objectives

question

Which of the following is false? a. top management commitment is essential if supply chain efforts are to have any chance of success b. some companies are uncomfortable with the concept of customer power in supply chains c. senior management commitment to supply chain management occurs in one of every two organizations d. some companies are hesitant to enter into long-term relationships because such relationships might be perceived as limiting a company's operational flexibility e. all of the above are true

answer

senior management commitment to supply chain management occurs in one of every two organizations

question

____ 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.

answer

supply chain analytics

question

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

answer

single integrator

question

Which of the following is not a barrier to supply chain management? a. regulatory and political considerations b. lack of top management commitment c. reluctance to share, or use, relevant data d. incompatible corporate cultures e. all of the above are barriers

answer

all of the above are barriers

question

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

answer

corporate culture

question

Which of the following is not a routine occurrence in global supply chains? a. documentation errors b. incomplete shipments c. routing errors d. packaging errors e. all of the above are routine occurrences

answer

all of the above are routine occurrences

question

Which of the following is not a name/term for a long-term mutually beneficial supply chain agreement? a. partnerships b. third-party arrangements c. coopetition d. contract logistics e. all of the above are names for a long-term mutually beneficial supply chain agreement

answer

coopetition

question

Which concept refers to where one organization owns multiple participants in the supply chain?

answer

vertical integration

question

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? a. informal agreements b. formal contracts c. vertical integration d. intensive distribution

answer

intensive distribution

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