LSCM Chapter Two – Flashcards
Unlock all answers in this set
Unlock answersquestion
t/f The utility created through the basic marketing activities is known as place utility
answer
False
question
t/f transportation is the physical movement or flow of goods
answer
true
question
t/f During the 1990s and 2000s, logistics costs as a percentage of gross national product declined
answer
true
question
t/f An aircraft manufacturer is a good example of an organization with a heavy inbound and simple outbound flow
answer
true
question
t/f 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 serve. This is the logistics channel approach to logistics
answer
true
question
t/f In a logistics system, warehousing should be optimized at the expense of related logistic activities, such as transportation and procurement
answer
False
question
t/f The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis
answer
False
question
t/f To hold down distribution cost, the lowest cost carrier should always be used
answer
False
question
The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
answer
True
question
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?
answer
Seven R's
question
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
answer
general definition
question
All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list:
answer
Marketing**** Transportation Scheduling Forecasting
question
The value that is added to goods through a manufacturing or assembly process is:
answer
form utility
question
14. Which of the answers below is an example of the creation of form utility by a logistics activity?
answer
Breaking bulk and repackaging at a distribution center
question
The utility that is created by moving goods from production points to market points where demand exists is referred to as:
answer
place
question
Logistics creates which utility through production forecasting, production scheduling and inventory control?
answer
quantity utility
question
Time utility depends on
answer
having the product available when the user wants it
question
What is often the largest component of logistics costs?
answer
transportation costs
question
Materials handling is concerned with
answer
short-distance movement
question
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?
answer
customer service
question
It can be argued that ____________ is the second language of logistics and supply chain management.
answer
finance
question
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?
answer
materials handling
question
A ___________ relationship exists between the cost of lost sales and inventory cost
answer
inverse
question
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?
answer
heavy inbound
question
The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs?
answer
promotion costs
question
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
answer
short run analysis
question
A ________________ analysis examines a logistics system over a long time period or range of output
answer
dynamic
question
What are fixed spatial points where goods stop for storage or processing?
answer
nodes
question
An important sustainability issue that has received much more scrutiny in recent years is the:
answer
reduction in packaging waste by using alternate materials
question
What technology has helped make the physical inventory-taking process more efficient and effective?
answer
scanning of bar-coded RFID tags
