question

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.

answer

true

question

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.

answer

true

question

Globalization has had little effect on consumers.

answer

false

question

Supply and demand has become less volatile as managers become more adept at controlling the elements.

answer

false

question

Outsourcing is a fairly new concept.

answer

false

question

SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.

answer

true

question

7. 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.

answer

false

question

8. 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.

answer

false

question

9. 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.

answer

true

question

10. The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2

answer

false

question

11. 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.

answer

true

question

12. Supply chain managers no longer need to worry about suboptimization in light of today's technology.

answer

false

question

The utility created through the basic marketing activities is known as place utility.

answer

false

question

Transportation is the physical movement or flow of goods.

answer

true

question

During the 1990s and 2000s, logistics costs as a percentage of gross national product declined.

answer

true

question

An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow.

answer

true

question

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

question

In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.

answer

false

question

The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.

answer

false

question

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

1. Globalization is not considered to be one of the external factors driving change in logistics.

answer

false

question

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.

answer

true

question

The supply chain should manage four important flows, namely, materials and products, information, financials, and demand.

answer

true

question

Operating globally has become harder to accomplish for individuals and small companies.

answer

false

question

The terms of a demise charter transfers full control of the chartered vessel to the charterer.

answer

true

question

Customs Trade Partnership Against Terrorism (C-TPAT) is a mandatory program in which importers must participate.

answer

false

question

The North American Free Trade Agreement has removed all trade barriers between the U.S., Canada, and Mexico.

answer

false

question

A maquiladora plant can be located anywhere in South America.

answer

false

question

Ocean transportation offsets slower service with lower rates than other modes

answer

true

question

A firm using air transportation cannot use the same packaging for international shipping as for domestic shipping because many cargo aircraft are not pressurized.

answer

false

question

A Foreign Freight Forwarder is unregulated by the government.

answer

false

question

Export Trading Companies and Export Management Companies are essentially the same.

answer

false

question

An importer can store goods in a bonded warehouse for up to three years without paying duty.

answer

true

question

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.

answer

false

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

5. 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

question

6. External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand.

answer

false

question

7. 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

9. 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

11. Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.

answer

true

question

12. While there are four types of forecast error measures that can be used, none are foolproof.

answer

true

question

13. 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

14. Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.

answer

false

question

15. 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

16. An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs.

answer

true

question

17. Integrated fulfillment is preferred to dedicated fulfillment.

answer

false

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

9 "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

11. Process D1: Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC cycle model.

answer

true

question

12. There are ten principal activities to the OTC model.

answer

false

question

13. 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

15. 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

18. There are four types of communications that exist between a buyer and a seller.

answer

false

question

19. There are five logistics performance metrics from the buyer's point of view.

answer

true

question

20. A stockout always results in a back order.

answer

false

question

21. For the best service, all products should be available at all levels regardless of cost.

answer

false

lscm exam 1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards