LSCM 3960

question

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
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True
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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.
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True
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Globalization has had little effect on consumers.
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False
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Supply and demand has become less volatile as managers become more adept at controlling the elements.
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False
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Outsourcing is a fairly new concept.
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False
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SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.
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True
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It is expected that some or all of the BRIC countries (Brazil, Russia, India & china) will replace the so-called VISTA countries (Vietnam, Indonesia, S. Africa, Turkey and Argentina) as low cost producers of various products and services.
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False
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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.
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False
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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
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True
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The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2
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False
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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
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True
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Supply chain managers no longer need to worry about suboptimization in light of today’s technology
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False
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Most retailers are essentially supply chain companies since
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they buy products produced by others
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Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape?
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Environmental concerns
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Outsourcing involves
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obtaining materials, parts, and products from other companies
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Some individuals describe the current consumer as the “click here” generation because
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we no longer wait for information to be “pushed out” to us.
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The demographics of our society has changed because
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of the increase in two-career families and single-parent households
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The Supply Chain Concept
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developed from the previous Physical Distribution concept
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Logistics, in its simplest form,
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combines inbound logistics with the outbound logistics of physical distribution
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One of the major challenges of supply chain management is
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maintaining the visibility of inventory
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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
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Computerization has greatly increased the flow of information from the source
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One of the four supply chain flows in Figure 1 – 8 that has received increased attention from supply chain managers due to the growth in technology is
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Demand flow
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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?
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inventory carrying costs
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Which of the following is not part of the Supply Chain network?
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stores
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Complexity in the supply chain is caused by
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1. the number of SKUs. 2. locations of customers and suppliers. 3. transportation requirements.
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Cost/Value refers to
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the importance of cost and value at the very end of the supply chain
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Performance measurement is important because
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lower-level metrics in an organization must connect directly to the high-level performance to achieve goals
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A critical outcome of the supply chain is to deliver
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the right product to the right place
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The utility created through the basic marketing activities is known as place utility
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False
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Transportation is the physical movement or flow of goods
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True
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During the 1990s and 2000s, logistics costs as a percentage of gross national product declined
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True
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An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow
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True
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Acme Battery distributes its batteries to warehouses, where they are stored until ordered by a retailer. The warehouses are located close by the retail markets served. This is the logistics channel approach to logistics
answer

True
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In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement
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False
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The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis
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False
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To hold down distribution cost, the lowest cost carrier should always be used
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False
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The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect
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True
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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?
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Seven R’s
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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
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general definition
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All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:
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marketing
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The value that is added to goods through a manufacturing or assembly process is:
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form utility
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Which of the answers below is an example of the creation of form utility by a logistics activity?
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the breaking bulk and repackaging at a distribution center
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The utility that is created by moving goods from production points to market points where demand exists is referred to as
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place
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Logistics creates which utility through production forecasting, production scheduling and inventory control?
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quantity utility
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Time utility depends on
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having product available when the user wants it
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What is often the largest component of logistics costs?
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transportation costs
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Materials handling is concerned with
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short-distance movement
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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?
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customer service
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It can be argued that ____ is the second language of logistics and supply chain management
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finance
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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?
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materials handling
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A(n) _______ relationship exists between the cost of lost sales and inventory cost
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inverse
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Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury pontoon boats for customers on the East coast of the United States. Each boat requires thousands of parts purchased from over 1,000 vendors. A number of boats are in production at any one time, so a large number of parts constantly arrive and are stored. Once a boat is finished, it is sailed up the coast to a convenient port for customer delivery. Which type of logistics system does Water Cruisers use?
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heavy inbound
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The product’s dollar value typically affects the cost of logistics activities. Which is not one of these costs?
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promotional costs
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When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called
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short run analysis
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A ______ analysis examines a logistics system over a long time period or range of output
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dynamic
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What are fixed spatial points where goods stop for storage or processing?
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nodes
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An important sustainability issue that has received much more scrutiny in recent years is the:
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reduction in packaging waste by using alternate materials
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What technology has helped make the physical inventory-taking process more efficient and effective?
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scanning of bar-coded RFID tags
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Globalization is not considered to be one of the external factors driving change in logistics.
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False
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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
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True
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The supply chain should manage four important flows, namely, materials and products, information, financials, and demand
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True
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Operating globally has become harder to accomplish for individuals and small companies
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False
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The terms of a demise charter transfers full control of the chartered vessel to the charterer
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True
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Customs Trade Partnership Against Terrorism (C-TPAT) is a mandatory program in which importers must participate
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False
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The North American Free Trade Agreement has removed all trade barriers between the U.S., Canada, and Mexico
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False
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A maquiladora plant can be located anywhere in South America
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False
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Ocean transportation offsets slower service with lower rates than other modes
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True
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A firm using air transportation cannot use the same packaging for international shipping as for domestic shipping because many cargo aircraft are not pressurized
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False
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A Foreign Freight Forwarder is unregulated by the government
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False
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Export Trading Companies and Export Management Companies are essentially the same
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False
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An importer can store goods in a bonded warehouse for up to three years without paying duty.
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True
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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.
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False
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Globalization was initially driven by countries
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seeking materials and goods not available in their own land
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A critical ingredient for the Third Era of globalization is
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technological advances, especially in information technology and communications
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The Supply Chain should
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manage materials and products, information, financials, and demand
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In his book “The Wealth of Nations”, Adam Smith stated that economies and companies could improve their wealth by
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allowing specialization of tasks
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A demand-driven system is also known as
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a pull system
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A maquiladora plant is
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a US plant performing manufacturing, processing, or assembly activity in Mexico
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Focused production is
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a strategy in which a given plant produces one or two items of the company’s total product line
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Which are the major modes of international transportation?
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water and air
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Which is a major category of ocean shipping?
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charter vessels
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Which category of ocean shipping offers set schedules over specified sea routes?
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liner service
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Which is the main advantage of international air transport?
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transit times
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Which condition must be present before motor carriers and rail carriers can be used for international shipments?
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the shipment must be between adjacent countries
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These are designated by the U.S. secretary of the treasury for the purpose of storing, repacking, sorting or cleaning imported merchandise entered for warehousing without paying import duties while the goods are in storage.
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bonded warehouses
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Gemini products wishes to enter foreign markets but lacks the resources to do so. They evaluate their alternatives and approach Overseas Traders, LLC, a company that specializes in the foreign distribution of products of the type which Gemini manufacturers. Overseas purchases $50,000 of Gemini’s products for sale on the international market. Overseas is which type of global logistics channel intermediary?
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export trading company
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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
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a customs house broker
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Which type of global logistics channel intermediary enables goods to move through customs more easily by consolidating small shipments into more economical sizes?
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foreign freight forwarder
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Goods can be stored in a bonded warehouse
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for up to 3 years
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The biggest and best known example of a regional trade agreement (RTA) is the
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European Union (EU)
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America’s ports are a key component of its global commerce. U.S. ports also play a vital role for the cruise industry. Which of these is not one of the top three departure ports for the cruise industry?
answer

Cape Liberty, New Jersey
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As market forces continue to exert pressure on companies to improve profitability, the quest for lower-cost manufacturing has been a factor in the relocation of manufacturing from Mexico to ________ ?
answer

Asia
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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
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True
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A horizontal relationship refers to firms on the same level in the supply chain
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False
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The range of relationships with 3PLs ranges from being a vendor to being a vertical supplier
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False
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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
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True
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Drivers and facilitators are internal issues that an organization must address before seeking a 3PL
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False
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Once a 3PL provider is chosen, it is not necessary for an organization to seek continuous improvements as the 3PL will handle that function
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False
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Collaboration is usually defined as a “business practice that encourages individual organizations to share information and resources for the benefit of all”.
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True
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A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services
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False
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Outsourcing and contract logistics are terms sometimes used to describe third-party logistics
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True
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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
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False
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The most frequently outsourced function is freight bill payment
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False
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The “IT gap” refers to the difference between the internal IT capabilities of 3PL users and the IT expertise of the 3PL providers
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False
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Many organizations are working more closely with
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customers, suppliers, and various types of logistics suppliers
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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
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participants
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Vertical collaboration refers to
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collaboration among buyers and sellers in the supply chain
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Horizontal collaboration refers to a relationship that is ___________ and/or ____________.
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buyer to buyer or seller to seller
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Full collaboration is the dynamic combination of
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both vertical and horizontal collaboration
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A third-party logistics firm may be defined as
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an external supplier that performs or manages all or part of a company’s logistics functions
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The least-frequently used IT-based services by customers of 3PLs are:
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strategic and customer-related
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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,
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executives from other areas in the company are also aware of such needs but to a lesser degree
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Approximately two-thirds of 3PL customers think their providers supply
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tactical or operational services
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A metric and a measure are the same
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False
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A metric is complex to define, usually involves a calculation or a combination of measurements, and is often in the form of a ratio
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True
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A metric could drive inappropriate behavior
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True
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Scorecards and key performance indicators (KPIs) are the same thing
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True
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Evaluating current or potential supply chain performance metrics is not important to a sound logistics program.
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False
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The focus on performance measurement is a recent event in industry
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False
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Customers and suppliers should be included in the development of metrics
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True
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Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole
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True
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Four major categories that provide a useful way to examine logistics and supply chain performance are: time, quality, cost, and inventory
answer

False
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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
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True
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Order cycle time (OCT) is another very important logistics service metric. OCT influences product availability, customer inventories, and seller’s cash flow and profit.
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True
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Supply chain management involves the control of raw material, in-process, and finished goods inventories
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True
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The purpose of this chapter is to
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1. discuss how supply chain metrics are developed. 2. develop quantitative tools to show how metrics can be linked to financial performance. 3. offer methods for classifying supply chain metrics.
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An index
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combines two or more metrics into a single indicator
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Scorecard and key performance indicators (KPIs) refer to
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metrics to manage logistics operations
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The current logistics management approach is supported by which performance measurement concepts?
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least total cost
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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
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cost center
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An “executive dashboard” is
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a small number (usually less than 5) of KPIs
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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

quality
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In the SCOR Model there are five major categories of metrics that need to be used to measure the performance of Process D1: reliability, ___________, agility, costs, and asset management.
answer

responsiveness
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Name the five categories of metrics used to measure the performance process in the SCOR Model
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1. reliability 2. responsiveness 3. agility 4. costs 5. asset management
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The decision to alter the supply chain process is essentially ___________issue
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an optimization
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What is the best financial metric to show the profit an organization generates in relationship to assets utilized?
answer

ROA
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Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure.
answer

information systems
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Effective order management can have an impact on
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1. reducing supply chain costs. 2. increasing revenues. 3. improving ROA.
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Which of the following is NOT an element of Order Management?
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optimizing mode mix
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Which of the following is NOT a supply chain decision area regarding ROA improvement?
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Information Management
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Gross margin equals
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Sales – COGS
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Supply chain information technologies can provide timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers
answer

True
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“It has been said that information is the lifeline of business, driving effective decisions and action. Quality of information is less and less important, given advances in technology.”
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False
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Information must be real-time, not just current
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True
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Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations
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False
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Information technology plays an important role in each of the five drivers of sustainable supply chain management practice
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True
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Now that people are computer-literate, they are no longer a major barrier to the effective use of information technology
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False
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The term supply chain information system (SCIS) is well defined and commonly understood
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False
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Technological capabilities ultimately determine the success or failure of SCIS, rather than the technology users
answer

False
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Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level
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True
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Supply chain execution tools have focused on a company’s internal logistics activities—order management, warehouse management, inventory management, labor optimization, and transportation management—and are being expanded into new integration software applications
answer

True
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Event management systems monitor the supply chain for events that are out of tolerance, such as a shortage of parts at a manufacturing location or the breakdown of a truck delivering an important order
answer

True
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Business intelligence applications are being used to gather information on competitors and their suppliers
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False
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ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses.
answer

True
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Spreadsheets and database software no longer have a place in SCIS as newer tools have supplanted them.
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False
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SCIS software selection is relatively straightforward as the choices have been simplified
answer

False
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Supply chain software is now available over the Internet. These applications are collectively known as on-demand software
answer

True
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RFID applications have been widely embraced due to their low cost and high reliability
answer

False
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Supply chain software sales faltered during the 2007-2009 recession and remained flat in 2010 and 2011
answer

False
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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
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The _________ of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses
answer

visibility
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Which of the below is not part of the seven Rs of logistics
answer

quality
question

Which of the following is NOT one of the five drivers of sustainable supply chain management practice
answer

execution
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What are the five drivers of sustainable supply chain management practice?
answer

1. optimization 2. synchronization 3. adaptability 4. velocity 5. profitability
question

What are the seven Rs?
answer

page 184
question

___________ is/are a major barrier to the effective use of information technology
answer

People
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The term supply chain information system (SCIS) is defined as
answer

information system that automate the flow of information between a firm and its suppliers
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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

data synchronization tools
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Supply Chain software includes technologies that
answer

1. address virtually every function and task that occurs in the supply chain. 2. help organizations plan, execute, and control supply chain activities in real time. 3. help to maintain visibility of inventory
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ERP systems
answer

have information elements needed by SCIS applications
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Managers have several options for software development and implementation. They include
answer

1. internal development. 2. third party logistics firms. 3. external software vendors.
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The textbook provides an example of how SanDisk improved forecast accuracy by 25%, and achieved higher inventory turns and a lower cost structure as a result of implementing
answer

an advanced planning solution
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Due to mergers and acquisitions in the software industry and ERP vendors moving into the supply chain applications market space, it is possible to purchase
answer

supply chain software duties that combine planning, execution, event management, and related capabilities
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On-demand supply chain software that is not installed on a company computer is gaining in popularity. An issue to be addressed with this purchase option is
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1. Functionality may not be as robust as traditional software 2. Data control is an issue 3. Total cost of ownership could exceed purchase cost over the long run
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Synchronization:
answer

the ability to coordinate, organize and manage end-to-end supply chain flows – products, services, information, and financials – in such a way that the supply chain functions as a single entity
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Adaptability:
answer

the degree to which respective supply chain members can change practices, processes and/or structures of systems and networks in response to unexpected events, their effects or impacts
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Velocity:
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the speed at which end-to-end flows occur in the supply chain. It encompasses speed-to-market for new product introduction and execution which conditions are rapidly changing
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Optimization:
answer

the alignment of global supply chain resources – both tangible and intangible, own or outsourced – to facilitate the success of supply chain members
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Profitability:
answer

the result of creating value through supply chain activities. Asset performance, working capital, returns on investment for infrastructure, technology, and people are some of the critical parts that create value in a global environment.
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The 10 golden rules for success are:
answer

1. Secure the commitment of senior management. 2. Remember that it is not just an information technology project. 3. Align the project with business goals. 4. Understand the software capabilities. 5. Select partners carefully. 6. Follow a proven implementation methodology. 7. Take a step-by-step approach for incremental value gains. 8. Be prepared to change business processes. 9. Keep end users informed and involved. 10. Measure success with key performance indicators (KPIs).
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What are supply chain execution tools?
answer

Tools carry out key tasks from the time an order is placed until it is fulfilled. This order-driven category of software focuses on the day-today activities required to buy, make, and deliver the materials that flow through the supply chain
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What is Enterprise Resource Planning (ERP) software?
answer

ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses
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What is XML?
answer

XML is a robust, logically verifiable text format based on international standards. It provides a flexible way to create structured, common information formats and share both the format and the data via the Internet, intranets, and other networks
question

What is the significance of Globalization in Supply Chain Management?
answer

globalization is the most frequently cited change factor by business leaders, and it has replaced the post-World War II Cold War as the dominant driving force in world economics.
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What is Vendor Managed Inventory?
answer

vendor-managed inventory (VMI) usually means that the manufacturer will manage the inventory of its products (and possibly related products) at the retailer’s warehouse(s) and reorder as appropriate for customer fulfillment
question

What are the four subdivisions of logistics?
answer

1. business 2. military 3. event 4. service
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What are the five principal types of economic utility that add value to a product or service?
answer

1. form 2. time 3. place 4. quantity 5. possession
question

What are 14 activities that the logistics manager might be responsible?
answer

• Transportation • Warehousing and storage • Industrial packaging • Materials handling • Inventory control • Order fulfillment • Inventory forecasting • Production planning and scheduling • Procurement • Customer service • Facility location • Return goods handling • Parts and service support • Salvage and scrap disposal
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Why are spatial relationships important to logistics?
answer

Refers to the location of fixed points in the logistics system with respect to demand and supply points. Spatial relationships are very important to transportation costs, since these costs tend to increase with distance
question

What are the four important characteristics of global markets and strategy from a customer service perspective?
answer

1. companies attempt to standardize to reduce complexity, but they recognize that global markets need some customization. 2. global competition reduces the product life cycle since products can be copied or reengineered quickly by competitors. 3. traditional organizational structures and related business models frequently change since companies get more involved in outsourced manufacturing and some logistical activities such as transportation, warehousing, and order fulfillment. 4. globalization introduces more volatility and complexity
question

What are six steps in the process model for forming and sustaining supply chain relationships?
answer

Step 1: Perform Strategic Assessment Step 2: Decision to Form Relationship Step 3: Evaluate Alternatives Step 4: Select Partner(s) Step 5: Structure Operating Model Step 6: Implementation and Continuous Improvement
question

What are the four primary drivers?
answer

• Asset/cost efficiency • Customer service • Marketing advantage • Profit stability/growth
question

What are the main types of facilities?
answer

• Corporate compatibility • Management philosophy and techniques • Mutuality of commitment to relationship formation • Symmetry on key factors such as relative size, financial strength, and so on
question

Horizontal collaboration:
answer

refers to a relationship that is buyer to buyer and/or seller to seller
question

Vertical collaboration:
answer

refers to collaboration typically among buyers and sellers in the supply chain.
question

What are the five types of third-party logistics firms?
answer

transportation-based, warehouse/distribution-based, forwarder-based, financial-based, and information-based firms
question

A good metric:
answer

• Is quantitative • Is easy to understand • Encourages appropriate behavior • Is visible • Is defined and mutually understood • Encompasses both outputs and inputs • Measures only what is important • Is multidimensional • Uses economies of effort • Facilitates trust
question

Four major categories that provide a useful way to classify supply chain performance metrics:
answer

(1) time, (2) quality, (3) cost, and (4) supporting metrics.
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
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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 smoothing 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 department, which selects the physical structures and intermediaries through which the product(s) 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

An outbound-to-customer logistics system is also referred to as
answer

physical distribution
question

An inbound-to-operations logistics system is also referred to as
answer

physical supply
question

Demand management includes
answer

flows of products, services, and capital
question

The term functional silos refers to:
answer

lack of coordination between departments
question

Oversupply is created by
answer

phantom demand
question

The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions
answer

customer demand
question

The internal balancing method deals with
answer

inventory and production flexibility
question

One type of demand fluctuation is caused by random variation. What is random variation?
answer

a development that cannot normally be anticipated
question

The weighted moving average method assigns
answer

a weight to each previous period
question

Exponential smoothing
answer

is one of the most commonly used techniques
question

Four types of forecast error measures can be used. Which one of the following is not one of the four types? a. cumulative sum of forecast errors b. exponential smoothing for trends c. mean squared error d. mean absolute deviation
answer

exponential smoothing for trends
question

Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are
answer

quick response (QR), vendor-managed inventory (VMI), and efficient consumer response (ECR)
question

What are the two types of demand?
answer

(1) independent demand, which is the demand for the primary item (2) dependent demand, which is directly influenced by the demand for the independent item.
question

Four types of forecast error measures:
answer

1. cumulative sum of forecast errors (CFE) 2. mean squared error (MSE) 3. mean absolute deviation (MAD) 4. mean absolute percent error (MAPE)
question

Direct-to-customer (DTC) fulfillment channel structures:
answer

• Integrated Fulfillment • Dedicated Fulfillment • Outsourced Fulfillment • Drop Ship Fulfillment • Store Fulfillment • Flow-through fulfillment
question

Customer service is anything that touches the customer.
answer

True
question

Most organizations employ all six definitions of customer service in their order 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 servicing a customer’s 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 for customer service applications
answer

False
question

With the proper information on how a customer’s interaction with the shipper drives the firm’s 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

False
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 Determine 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 augmented 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 buyer’s 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

Pareto Analysis (also known as the 80/20 rule) may be used to classify parts, customers, or activities. Which is the best measurement to use when classifying customers with Pareto Analysis for the purpose of business expansion?
answer

Profitability per customer
question

Customer service can be defined as
answer

anything that touches the customer
question

Customer relationship management is the art and science of
answer

positioning customers to improve the profitability of the organization
question

What are the steps in the CRM process?
answer

segment customer base, identify service/package, then measure service and improve
question

Activity Based Costing
answer

can be combined with customer segmentation
question

Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.
answer

gross sales
question

Those customers who are in the “Danger Zone” segment are
answer

the least profitable
question

Order management system represents the principal means by which
answer

buyers and sellers communicate information relating to individuals orders of product
question

The term replenishment cycle refers to
answer

the acquisition of additional inventory
question

While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on
answer

variability or consistency of this process
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
question

The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix
answer

place
question

Which is NOT part of dependability?
answer

consistent pricing
question

The SCOR model provides suggested metrics
answer

across multiple dimensions for each of the five Level One processes
question

Four basic steps in the implementation of the CRM process in a business-to- business environment
answer

1. segment the customer base by profitability 2. identify the product/service package for each customer 3. develop and execute best processes 4. measure performance and continuously improve
question

Process D1 13 steps
answer

page 273
question

There are three different perspectives on customer service:
answer

(1) as a philosophy, (2) as a set of performance measures, and (3) as an activity
question

Customer service can be viewed as having four distinct dimensions from the perspective of logistics:
answer

1. time 2. dependability 3. communication 4. convenience
question

When a seller is unable to satisfy demand with available inventory (a stockout), one of four possible events might occur:
answer

1. buyer waits 2. back orders 3. lost sales 4. lost customer
question

Inventory management is not as important as it once was due to other factors that have come into play
answer

False
question

Inventory and the GDP grew at the same rate from 1994 through 2010
answer

False
question

Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention.
answer

False
question

“Batching economies” and “cycle stocks” are the same
answer

True
question

Purchase economies and transportation economies are not complementary
answer

False
question

Setting safety stock levels for an organization is now a science
answer

False
question

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply.
answer

True
question

Many companies can make a case for using a formal logistics organization to help resolve inventory objective conflicts
answer

True
question

Capital cost is also called interest or opportunity cost
answer

True
question

Storage space costs are not variable
answer

False
question

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself
answer

True
question

The reorder point depends on the orders in-house at that time.
answer

False
question

EOQ can only be used for “push” inventory
answer

False
question

Most organizations would not operate under conditions of certainty for a variety of reasons
answer

True
question

In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels.
answer

True
question

JIT, MRP, MRP II, and DRP all incorporate some version of the basic EOQ model into their philosophies.
answer

True
question

JIT was developed in the U.S. and copied by the Japanese
answer

False
question

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory
answer

False
question

MRP has been known for some time but lacked interest until recently
answer

True
question

MRPII will not allow an organization to integrate financial planning with operations and logistics
answer

False
question

The ABC analysis is based on Pareto’s Law
answer

True
question

Inventory as an asset on the balance sheet and a __________ on the income statement
answer

variable expense
question

Inventory and the GDP grew by ______ amounts between 1994 and 2010
answer

different
question

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?
answer

demand
question

WIP inventories
answer

are associated with manufacturing
question

Seasonal stocks are not influenced by
answer

EOQ
question

Which department does not have any impact on inventory
answer

corporate governance
question

Capital cost focuses on the cost of capital tied up in ________ and the resulting lost opportunity from investing that capital elsewhere
answer

inventory
question

Ordering cost refers to the expense of placing an order and
answer

does not include the cost of the product
question

In the event of a “stockout” one of the things that could happen is
answer

extra shipping cost may be incurred
question

Dependent demand relates to
answer

demand for another inventory item or product
question

An organization selling its products FOB destination holds the title to the goods until
answer

products reach the customer’s facility
question

JIT is a _______ system
answer

pull
question

A DRP system is usually coupled with a _______ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods
answer

MRP
question

Batching economies or cycle stocks usually arise from three sources:
answer

1. procurement 2. production 3. transportation
question

Pull system approach
answer

relies on customer orders to move product through a logistics system
question

Push system approach
answer

uses inventory replenishment techniques in anticipation of demand to move products
question

An MRP system:
answer

consists of a set of logically related procedures, decision rules, and records designed to translate a master production schedule into time-phased net inventory requirements and the planned coverage of such requirements for each component item needed to implement this schedule.
question

ABC analysis:
answer

A items are considered to be the most important, with B items being of lesser importance, and C items being the least important
question

Procuring inexpensive transportation is the major goal of supply chain managers
answer

False
question

Given the availability of information, transportation buying has become comparatively easy
answer

False
question

The growth of outsourcing has created transportation challenges
answer

True
question

CBP is now enforcing the “48 Hour Rule”.
answer

False
question

Motor carrier cost is highly variable
answer

True
question

Railroad’s length of haul is longer than that of motor carriers.
answer

True
question

The railroads have not shared in the growth in transportation and so do not have any capacity issue
answer

False
question

Nonintegrated air carriers do not supply door-to-door service
answer

True
question

Pipeline costs are predominantly fixed
answer

True
question

Intermodal growth base been flat.
answer

False
question

The responsibly for transportation management is typically not assigned to any one management discipline in an organization
answer

False
question

Outsourcing transportation is a “buy” decision
answer

True
question

All modes of transportation provide the same basic service
answer

True
question

Railroads have accessibility limitations
answer

True
question

Some companies like PepsiCo have chosen to move freight on company operated equipment, despite the fact that these private fleets cost more than for-hire carriers
answer

False
question

Product value is an important factor in modal selection
answer

True
question

Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized.
answer

False
question

The main strategy behind routing guides is to maintain very tight control of transportation costs
answer

False
question

A bill of lading can be either straight or order
answer

True
question

A carrier is never excused from a claim.
answer

False
question

A key requirement for service quality monitoring is information
answer

True
question

KPI is another term for a shipping document
answer

False
question

Transportation efficiency promotes __________ in the supply chain
answer

competition
question

The distances in today’s global supply chains produce
answer

higher costs, longer transit times, and more disruptions
question

Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition?
answer

accessibility
question

Security legislation
answer

has caused expense issues for carriers
question

Which is not a mode of transportation?
answer

3PL
question

Air carriers were historically looked upon as
answer

emergency only carriers
question

Challenges for the trucking industry include:
answer

competition
question

Railroads fall into a group called:
answer

natural monopolies
question

Trade imbalances affect
answer

water carriers
question

Which management area in an organization does not normally have transportation responsibility?
answer

manufacturing
question

Terms of sale establish
answer

when ownership and title of the goods passes from seller to buyer
question

Desirability refers to:
answer

characteristics that influence modal selection
question

The main strategy behind routing guides is to:
answer

promote supply chain excellence
question

Which of these is not a freight document: routing guide, bill of lading, freight bill, or freight claims form?
answer

routing guide
question

Five primary modes of transportation
answer

1. motor carriers 2. railroads 3. air carriers 4. water 5. pipeline
question

Intermodal transportation service:
answer

refers to the use of two or more carriers of different modes in the origin-to-destination movement of freight
question

Free-on-board (FOB):
answer

terms of sale specify when the ownership and title of the goods pass from a seller to a buyer in a domestic transaction
question

Key determinants in choosing a mode
answer

1. accessibility 2. transit time 3. reliability 4. product safety 5. cost
question

The bill of lading:
answer

probably the single most important transportation document; originates the shipment, provides all the information the carrier needs to accomplish the move, stipulates the transportation contract terms including the scope of the carrier’s liability for loss and damage, acts as a receipt for the goods the shipper tenders to the carrier, and in some cases shows certificate of title to the goods.
question

The freight bill:
answer

the carrier’s invoice for the fees the carrier charges to move a given shipment. The freight bill lists the shipment, origin and destination, consignee, items, total weight, and total charges.
question

Freight claims form:
answer

a document that the transportation buyer files with the carrier to recoup monetary losses resulting from the carrier’s failure to properly protect the freight. The shipper must file in writing freight claims with the carrier within a timeframe specified in the contract
question

Transportation management systems (TMS):
answer

defined as information technologies used to plan, optimize, and execute transportation operations
question

Efficiency of distribution facilities and networks is not nearly as critical as their speed.
answer

False
question

Inventory handling, storage, and processing facilities help supply chains create time and place utility
answer

True
question

Sortation refers a type of conveyer equipment.
answer

False
question

Organizations may benefit substantially from the establishment of one or several warehouses to reduce transportation costs.
answer

True
question

A common fulfillment strategy of many firms is to use the normal distribution network for most items including their low-velocity items
answer

False
question

One of the primary tradeoffs at the facility level is space versus equipment.
answer

True
question

It is not difficult to find and train high-quality personnel for DC operations.
answer

False
question

When establishing a distribution strategy, the first and most obvious consideration is the product
answer

True
question

Cross-docks typically increase transportation costs
answer

False
question

The drawback of centralized inventory is the long distance to customers, which typically extends lead times and results in higher transportation costs
answer

True
question

Contract warehousing is different than 3PL warehousing
answer

False
question

The first facility consideration is to determine the size of each operation within the network
answer

True
question

After the layout of the operations is determined, attention shifts to the facility size of the operations within the distribution operation
answer

False
question

Slotting is defined as the placement of product in a facility for the purpose of optimizing materials handling and space efficiency
answer

True
question

Product handling functions include both receiving and shipping.
answer

True
question

KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant data.
answer

False
question

Order accuracy and order completeness are the same
answer

False
question

Asset utilization is very important in a 3PL warehouse
answer

False
question

WMS is more than a simple database that provides stock location information
answer

True
question

The roles of the distribution center include __________
answer

balancing supply and demand, protecting against uncertainty, and promoting transportation economies
question

Distribution facilities can provide numerous services, depending on the requirements of the supply chain. Which of these is not a typical service?
answer

activity
question

One important interaction that must be considered is the tradeoff between distribution and ________
answer

transportation
question

The primary tradeoffs and relationships between resources include the following
answer

space vs. equipment, equipment v. people, and people v. space
question

Potential labor problems for distribution centers may be the result of
answer

the graying of America
question

Certain raw materials can be stored
answer

outside
question

A downside of direct shipping is
answer

can create higher transportation costs
question

The drawback of centralized inventor is:
answer

that it extends lead times and results in higher transportation costs
question

The key financial consideration in choosing between private and 3PL distribution options is
answer

volume of product being moved
question

The first facility consideration is to determine
answer

the size of each operation within the network
question

The primary facility operations focus is
answer

on the movement and storage of product
question

Which is these is not a support function? a. inventory control b. safety, maintenance, and sanitation c. information technology d. movement and storage
answer

movement and storage
question

Asset utilization is a very important aspect of
answer

private distribution facilities
question

Product handling involves five primary processes:
answer

(1) receiving—transferring goods into the facility from the transport network, (2) put-away—moving goods into storage locations, (3) order picking—selecting goods for customer orders, (4) replenishment—moving product from storage locations to picking slots, and (5) shipping—loading goods for delivery to the customer
question

The efficiency and effectiveness of a logistics/supply chain operation are constrained by the location of plants and warehouses in its overall network
answer

True
question

Logistics facilities and their locations are relatively variable and easily modified in the short term
answer

False
question

Corporate reengineering is often a reason for examining the firm’s current logistics/supply chain network.
answer

True
question

Labor-intensive industries place significant emphasis on the availability and cost of labor.
answer

True
question

The quality of life locational determinant is most important to companies that must attract and retain an unskilled, static work force.
answer

False
question

Facilities may sometimes be located where senior officers prefer
answer

True
question

The grid technique determines the highest cost facility location in an area
answer

False
question

The grid technique will evaluate all transportation rates equally
answer

False
question

In a commercial zone, the same transportation rate is applied from an origin to any point in the zone.
answer

True
question

One impact that the transit privilege has on facility location is that intermediate locations can be optimum.
answer

True
question

In the short run, the firm’s network is _________ while in the long run it is ________.
answer

fixed, variable
question

What type of change may suggest a need to reevaluate and/or redesign a firm’s logistics network?
answer

change in customer service requirements, change in corporate ownership, and shifting locations of customer and/or supply markets
question

Which is true regarding the facility/supply chain network design decision?
answer

it should be coordinated closely with the corporate and overall business strategies that may be in place
question

What is NOT true regarding logistics network design?
answer

“what-if” types of analysis can be conducted later, after the final network design has been established.
question

The logistics/supply chain network transformation team is responsible for all elements of the logistics network ___________
answer

design process
question

The logistics ______ provides members of the transformation team with a comprehensive perspective on the firm’s logistics process
answer

audit
question

The ___________ serves as a useful road map for moving from the current logistics network to the desired one
answer

implementation plan
question

The logistics/supply chain network transformation team
answer

must be aware of the firm’s overall business and corporate strategies and the supply chain in which it participates
question

Which major locational determinant considers locating near the competition?
answer

company preference
question

What is true regarding optimization models?
answer

Optimization models are based on precise mathematical procedures that are guaranteed to find the “best” solution for the problem under evaluation
question

Which of these is NOT a trend in today’s logistics environment that may have significant effects on decisions involving logistics facility location?
answer

addition of many wholesaler/distributor operations
question

The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as
answer

a center of gravity
question

The optimization model is based on
answer

precise mathematical procedures
question

Heurisitic models
answer

are able to accommodate broad problem definitions
question

Simulation models
answer

allow the decision maker to test the effects of alternative locations
question

The classic objective of a network design model has been
answer

to establish the number, location, and size of finished goods distribution centers and associated product flows
question

The grid technique
answer

assumes that the raw materials sources and finished goods markets are fixed
question

Which is an advantage of the grid technique for facility location?
answer

computationally, it is relatively easy to use
question

Application of the grid technique to the location of a city warehouse
answer

incorporate a blanket rate structure that applies to the same rate of origin to any point within the city or commercial zone
question

Which is the correct regarding tapering rates?
answer

the principle is based on the carrier’s ability to spread certain fixed shipment costs over a greater number of miles
question

Which is correct regarding the transit privilege?
answer

it permits the shipper to stop the shipment in transit and physically chafe the product’s characteristics
question

What is the effect of tapering rates on facility location?
answer

pulls the location toward the source or market
question

When a blanket rate structure is used, which factor is eliminated as a locational determinant?
answer

transportation rate
question

What advantage does the transit privilege give to shippers located at intermediate locations?
answer

a lower, long-distance through rate charged for the shipment
question

Simulation is defined as
answer

“the process of designing a model of a real system and conducting experiments with this model for the purpose either of understanding the behavior of the system or of evaluating various strategies within the limits imposed by a criterion or set of criteria for the operation of the system.”
question

The blanket rate
answer

does not increase with distance; it remains the same from one origin to all points in the blanket area
question

Procurement serves as a critical link between members of the supply chain
answer

True
question

Distinctives are low-risk, high value items that are fundamental to the company’s finished product
answer

False
question

Strategic sourcing is almost the same as procurement
answer

False
question

There are seven steps in the Strategic Sourcing Methodology
answer

True
question

When a firm makes a “make” decision when analyzing whether to “make or buy”, they may still have to purchase some types of inputs from outside suppliers
answer

True
question

The first step in managing sourcing and procurement is to determine the type of purchase.
answer

True
question

The most important factor in vendor selection is usually financial health
answer

False
question

Some firms are moving towards increasing their number of suppliers in order to encourage competition and lower procurement costs
answer

False
question

Vendors may offer varying levels of discounts from their published prices
answer

True
question

Traditional basic input costs and direct transaction costs are the same
answer

False
question

Landed costs are independent of sales/FOB terms
answer

False
question

e-Sourcing and e-Procurement are the same
answer

True
question

An advantage of e-Sourcing and e-Procurement is that there is little risk involved
answer

False
question

Which of these is not a form of purchasing? a. purchasing b. procurement c. process improvement d. sourcing
answer

process improvement
question

There are several classifications of purchased items. Which of the following is NOT one of those? a. commodities b. generics c. cash cows d. criticals
answer

cash cows
question

In the Item Procurement Importance Matrix, what item is described as low risk, low value? a. generics b. commodities c. criticals d. distinctives
answer

generics
question

In the Item Procurement Importance Matrix, what is described as high risk, high value? a. generics b. commodities c. criticals d. distinctives
answer

criticals
question

In the Item Procurement Importance Matrix, what describes high risk, low value? a. generics b. commodities c. criticals d. distinctives
answer

distinctives
question

Strategic sourcing as a process is far more broad and comprehensive than procurement. Overall, the process starts with the formation of a
answer

steering committee
question

In the Assess Supply Market step, the firm
answer

identifies all possible suppliers that might be able to satisfy the user’s needs
question

In the Execute Sourcing Strategy step, the most important thing is to
answer

choose a supplier or suppliers, depending on the objectives of the sourcing decision
question

What vendor selection criteria are described by vendor attitude, cultural compatibility, training aids, packaging, and repair service?
answer

financial considerations
question

There are four steps in the Managing Sourcing and Procurement Processes. Which does not belong? a. determine the type of purchase b. determine the necessary levels of investment c. evaluate the effectiveness of the strategic sourcing process d. examine off shore and e-procurement suppliers
answer

examine off shore and e-procurement suppliers
question

What vendor selection criteria are described by price and financial stability?
answer

financial
question

What vendor selection criteria are described by production capability, labor relations, and operating controls?
answer

capability
question

Which of the following is NOT a source of price?
answer

wholesale price index
question

__________ exist for basic raw materials such as grain, oil, and sugar.
answer

commodity markets
question

The concept that represents the sum of all costs associated with making and delivering products to the point where they are needed is called
answer

total landed cost
question

What is an amalgam of catalogs from vendors within a market that is available via the Internet called?
answer

electronic marketplace
question

Companies with 10,000 purchase transactions or more per year should consider
answer

transactional procurement solutions
question

Procurement:
answer

Refers to the process of managing a broad range of processes that are associated with a company’s need to procure goods and services that are required to manufacture a product (direct) or to operate the organization (indirect
question

Strategic sourcing:
answer

focuses more on supply chain impacts of procurement and purchasing decisions, and works cross-functionally within the business to help achieve the organization’s overall business goals
question

Generics
answer

low-risk, low-value items and services that typically do not enter the final product; ex: office suppliers
question

Commodities
answer

items or services that are low in risk but high in value; ex: basic production materials (bolts)
question

Distinctives
answer

high-risk, low-value items and services; ex: engineered items
question

Criticals
answer

high-risk, high-value items that give the final product a competitive advantage in the marketplace
question

Manufacturing and production operations create form utility
answer

True
question

Most processes are basically organized the same.
answer

False
question

Processes that can produce a range of products are said to have economies of scope
answer

True
question

World-class organizations can improve performance along multiple dimensions without making extensive performance tradeoffs or sacrifices.
answer

True
question

Companies now use strategies that are lean, flexible, or adaptive; they wait for customers to push products to the market.
answer

False
question

The “bullwhip” effect occurs when forecast errors are magnified and demand variability increases as orders move upstream from retailers to distributors to producers
answer

True
question

One type of reactive capability is machine flexibility
answer

True
question

Routing flexibility is a term used in connection with how spare parts move through the supply chain.
answer

False
question

Offshoring is a term that means relocating an activity to a contract manufacturer in another country
answer

True
question

Capacity planning and materials planning are the same
answer

False
question

Resource requirements planning (RRP) is a long-run, macro-level planning tool
answer

True
question

The materials requirement plan (MRP) is a long-range materials plan that converts information regarding end-items in the MPS into a set of time-phased component and part requirements.
answer

False
question

Ship to order is another version one of four manufacturing methods
answer

False
question

Delayed differentiation is a hybrid strategy in which a common product platform is built to stock. It is later differentiated by assigning to it certain customer-specific features, only after demand is realized
answer

True
question

A workcenter and a manufacturing cell are the same
answer

False
question

Packaging is very important in the manufacturing operation
answer

False
question

Form utility drives the need for
answer

supply chain capabilities, time utility, and place utility
question

A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma best practices, and real-time actionable intelligence from the factory floor is called
answer

adaptive manufacturing
question

In assemble-to-order production,
answer

the finished product is generally a combination of common components and a limited number of options or accessories made available to the customer
question

Processes that can produce a range of products are said to have
answer

economies of scope
question

Which is NOT a major challenge for many established manufacturers?
answer

expanding life cycles
question

A push-based strategy works well for supply chains that focus on
answer

the immediate delivery of off-the-shelf, low-cost, standardized goods
question

Lean production relies upon
answer

pull-based systems
question

Which of the following is not a reactive capability strategy? a. machine flexibility b. routing flexibility c. resource requirements planning d. offshoring
answer

resource requirements planning
question

Capacity is
answer

the maximum amount of work that an organization is capable of completing in a given period of time
question

Resource requirements planning (RRP):
answer

is a long run, macro level planning tool
question

Which of these is NOT a production method? a. make-to-stock b. delayed differentiation c. build to order d. assemble to order
answer

delayed differentiation
question

A project layout is:
answer

a fixed location layout where the product remains in place for the duration of production
question

Packaging is
answer

critical to logistics
question

Offshoring
answer

When an activity is relocated to a contract manufacturer in another country
question

capacity requirements planning (CRP)
answer

is used to check the feasibility of the materials requirement plan
question

Aggregate production plan (APP)
answer

is a long-range materials plan that translates annual business plans, marketing plans, and forecasts into a production plan for all products produced by a facility.
question

Master production schedule (MPS)
answer

is a medium-range plan that is more detailed than the APP; breaks down the APP, listing the exact end items to be produced within a specific period
question

Materials requirement plan (MRP)
answer

is a short-range materials plan that converts information regarding end-items in the MPS into a set of time-phased component and part requirements
question

Four assembly processes
answer

1.make to stock 2. assemble to order 3. build to order 4. engineer to order
question

Workcenter
answer

is a process-focused layout that groups together similar equipment or functions
question

Manufacturing cell
answer

is another process-focused layout that dedicates production areas to a narrow range of products that are similar in processing requirements
question

Assembly line
answer

is a product-focused layout in which machines and workers are arranged according to the progressive sequence of operations need to make a product
question

Continuous process facilities
answer

are similar to assembly lines, with product flowing through a predetermined sequence of stops
question

There has been an increased interest in sustainability among profit-oriented companies
answer

True
question

Though many organizations have taken measures to be “green”, these efforts always require additional expense and additional investment.
answer

False
question

On the outbound side of the supply chain, green initiatives might include total quality environment management, and various product end-of-life practices
answer

False
question

The terms reverse logistics systems, product recovery systems, product return networks, and enterprise returns management all refer to the same system
answer

True
question

Traditionally, product returns were viewed as a waste stream.
answer

True
question

Reverse logistics is relatively new
answer

False
question

Returns can be a high as 50 percent of sales
answer

True
question

Reverse logistics and closed loop systems are the same
answer

False
question

An example for a closed loop system would be Xerox’s cartridge re-use system
answer

True
question

Reverse logistics systems are much easier to operate than closed loop systems
answer

False
question

Environmental concerns have been the single impetus behind reverse logistics systems and closed loop supply chains.
answer

False
question

Manufacturing managers often think it is more costly to remanufacture or refurbish than to produce new product.
answer

True
question

3PLs typically lack the skills to manage reverse flows
answer

False
question

Reverse logistics systems can have a positive impact on a firm’s profitability
answer

True
question

From a business and supply chain perspective, ______________ are usually based upon a recognition that industrial systems need to be in harmony with nature by not depleting resources beyond their replacement or regeneration rate
answer

sustainability practices
question

Green procurement strategies usually require collaboration with _____________.
answer

supplies or vendors
question

The reverse direction of flow has often been regarded as a
answer

cost center, a waste stream, but a necessary evil
question

Information and __________ are important dimensions of reverse logistics and closed-loop supply chains.
answer

financials
question

Green laws have
answer

had a major impact on firms
question

The recent increased focus on reverse flows is attributable to
answer

significant increase in volume of reverse flows
question

Retailers lose, on average _____ percent of gross sales due to returns
answer

3-5
question

A closed loop system deals with
answer

both forward and reverse flows
question

A situation where a garage returns worn tires for retreading and receives them back is called a
answer

closed-loop system
question

Recycling and environmental concerns
answer

are often related to regulatory policy at the local, state, and federal level
question

Transportation may account for as much as ____ percent of the cost of reverse flow
answer

25
question

A major challenge is ___________ of total cost of the return flow processes.
answer

the estimation
question

Total life cycle considerations (TLC)
answer

are figuring more prominently into reverse logistics programs
question

Which of these does NOT belong in the recommendations of the Reverse Logistics Educational Council? a. manufacturing b. gatekeeping c. zero returns d. information systems
answer

maufacturing
question

Reverse logistics
answer

The process of moving or transporting goods from their final forward destination for the purpose of capturing value or for proper disposal
question

Closed-loop supply chains
answer

Designed and managed to explicitly consider both forward and reverse flows activities in a supply chain.
question

Three major focuses for reverse logistics systems
answer

1. Customer returns 2. environmental challenges 3. economic value
question

The seven principles of supply chain management have stood the test of time very well.
answer

True
question

The first principle of supply chain management is to segment customers based on profit
answer

False
question

The fourth principle of supply chain management is to differentiate products closer to the customer.
answer

True
question

Technology and data are already very well integrated into supply chain management
answer

False
question

Corporate executives are already well aware of the impact supply chain management can have on their businesses.
answer

False
question

CEOs view SCM initiatives as being primarily focused on cost reduction
answer

True
question

For businesses, collaboration skills are very important to develop
answer

True
question

The primary goal of a differentiation strategy is make your firm’s products appear to be different than your competitors’ products
answer

False
question

An effective time-based strategy should consider the tradeoffs between transportation, inventory, and warehousing costs
answer

True
question

Decision making is part of the Cycle Time Reduction strategy
answer

True
question

The most compelling “financial strategy” is the pursuit of cost reduction and profit improvement
answer

False
question

The “facility utilization” strategy places a high priority on making sure that all supply chain facilities create value only for the individual organizations
answer

False
question

Outsourcing is a way to reduce asset investment as well as to address strategic and customer- focused objectives
answer

True
question

As a result of the economic recession that occurred in the 2008-2010 timeframe, growth in supply chain technology has stagnated.
answer

False
question

It is anticipated that software as a service (SaaS), GPS and Cloud Computing technologies should assist significantly in achieving enhanced supply chain flexibility and facilitating network-type solutions
answer

True
question

Key performance indicators (KPIs) that require ownership and commitment to the objectives by all involved parties are needed for the success of relationship-based strategies
answer

True
question

Which of the following does not belong in the list of the seven principles of supply chain management? a. Segment Customers Based on Service Needs b. Differentiate Products Closer to the Customer c. Develop Outsourcing Strategy to Maximize Asset Utilization d. Adopt Channel-Spanning Performance Measures
answer

Develop outsourcing strategy to maximize asset utilization
question

When a firm “customizes” their supply chain, it is
answer

tailoring the chain to be responsive of the needs of individual customer segments
question

When a firm “sources strategically,” it is
answer

working together with customers and supplies in a creative, positive way
question

Corporate leaders
answer

do not clearly understand the importance of supply chain excellence
question

CEOs view SCM initiatives
answer

being primarily focused on cost reduction
question

Which of the following is not part of how world class collaboration skills are developed?
answer

determine how the benefits will be shared
question

There are ________ high-priority areas in which it is important to develop effective logistics and supply chain strategies
answer

five
question

Time-based strategies could affect
answer

the length of the cash to cash cycle
question

Time-Reduction Logistics Initiatives
answer

could change push to pull
question

The most compelling financial strategy is
answer

operational efficiency
question

This information technology is a shelf-level collaboration solution between consumer goods manufacturers and retailers, wherein the manufacturers pull in the point-of-sale (POS) data and other data that minimizes the bullwhip effect
answer

Warehouse technology
question

Facility Utilization and Equipment Utilization Strategies are
answer

complementary
question

A 4PL is
answer

a 3PL looked to for providing competencies related to knowledge availability, information technology, and skills in forming and sustaining supply chain relationships
question

Collaboration occurs when
answer

companies leverage each other on an operational basis so that together they perform better than they did separately.
question

Questions regarding financial vs. non-financial benefits of collaboration include
answer

whether collaboration pays for itself
question

Seven principles of supply chain management
answer

1. segment customers based on service needs 2. customize the logistics network 3. listen to signals of market demand and plan 4. differentiate products closer to the customer 5. source strategically 6. develop a supply chain wide technology strategy 7. adopt channel-spanning performance measures

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