SCMT 3643 Midterm Quiz Questions – Flashcards
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Given that a company can participate in multiple ecosystems at the same time, __________________ becomes a valuable organizational capability.
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... building business-to-business relationships...
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Outsourcing means that...
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...activities that were performed in a manufacturing facility are now performed by a company (a supplier) either in the same country or abroad.
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Which of the following are true regarding carbon footprint and supply chain management?
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All of the above are true The carbon footprint is part of 70% of corporate agenda. Many report green practices to contribute to increase profit. More miles, more sources, more emissions, more management required. All of the above are true.
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Outsourcing and off-shoring are making...
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... supply chains to be longer
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Open borders, reduced barriers, cost effective long-distance transportation and low-cost labor markets resulted in supply chains to be
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More complex
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To manage the efficient and effective flow of products, management needs to balance...
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... speed, cost, and quality.
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Which of the following are true about carbon footprint across the supply chain? (more than one can be true)
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Environmental issues add to the complexity of supply chains and legislation about environmental issues is likely to increase complexity of supply chains
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Inflation, increasing factory wages and longer ocean freight is...
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... increasing near-shoring and re-shoring.
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The importance of Supply Chain Management is reflected by:
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All of the Above The increasing importance of collaboration with supply chain partners SC is a critical part that needs to be adapted to changes in business environment SC capabilities are key to compete based on time-to-market SC executives sitting in the Board All of the Above
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Off-shoring means that...
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...activities that were performed in a manufacturing facility are now performed at a facility in a different geographic location in a foreign country owned by the same company.
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The video suggests that in order to comply with regulations of a foreign country to sell food products there, it may be necessary to do all of the following, except to...
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Remove gluten from the product
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The example of selling organic cosmetics abroad is used in the video to suggest that ...
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For successful sales around the world, tastes, preferences, and needs of a much wider range of customers should be studied and understood
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Which is NOT true of international logistics?
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All of the above statements are true. Internationally, it manages different logistics activities than domestic. It manages logistics activities in different countries. It manages logistics activities between countries. All of the above statements are true.
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What is the impact of international sourcing on inventory management?
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Higher transportation and inventory holding costs
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Which activity is a part of logistics management?
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All of the above Purchasing Transportation Packaging Materials handling All of the above
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Which is NOT true of logistics management?
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It does not deal with reverse flows of goods from the customer back to the manufacturer
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What is the goal of logistics management?
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It is to meet the customers' requirements
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Which complexities are common for international shipping operations?
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All of the above Dealing with multiple transportation modes. Shipment coordination with multiple carriers, including in foreign countries. Higher risk of product damage or delay. Complexity of customs regulations. All of the above.
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What is NOT true of the time factor in international shipping?
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Transportation lead times are very consistent
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The 18th century economist David Ricardo explained that international trade is essential because...
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...every nation has something they do best and if they trade with each other, both parties will live better.
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The challenge for business people engaged in international trade is...
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...to be aware of the multiple existing and proposed Free Trade Agreements because they will affect tariffs, labor costs, and local and regional legislation.
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The WTO agreements provide the legal ground rules for international commerce. As such,...
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...these contracts bind governments to keep their trade policies within the agreed limits
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The key to unlocking the potential of future trade agreements lies in...
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...reducing non-tariff barriers, frequently customs procedures.
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The role of the World Trade Organization is...
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...to provide a global forum for governments to negotiate trade agreements and to settle trade disputes.
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Miller argues that a new supply chain discipline is nascent; he calls it Tariff Engineering. What is tariff engineering as Miller describes it? Tariff engineering is...
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...the configuration of the global supply chain to take advantage of the lower tariffs and preferential treatments.
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As a result of local and regional agreements among nations, the business environment is becoming ...
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...more complex and challenging
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In addition to the agreements organized and approved by the WTO,...
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...there are nations that have bilateral agreements or participate in regional groups to foster regional free trade zones.
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Only a small fraction of business took advantage of the applicable FTAs in force because...
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...management finds the requirements of the FTA so complex that the cost of adhering outweighed the advantages
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The structure of the supply chain, where each supplier, manufacturing facility and distribution center, will be located is the result of the most productive configuration of a number of critical factors. The factors Miller identifies as critical include:
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All are critical factors Labor Fuel and transportation cost Location of existing suppliers The needs of key customers All are critical factors
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The use of a strategically located FTZ may be a good choice as ...
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All of the above a sourcing location a manufacturing location a distribution location All of the above
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What is an inverted tariff?
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A higher rate on parts than on final products.
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When are tariffs paid?
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When goods are transferred from an FTZ into the country.
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Which activities are allowed in an FTZ?
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All of the above storage assembly repairs manufacturing All of the above
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Which is NOT true of access to an FTZ?
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All FTZs are open to all companies
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In the US, FTZs function under supervision of the...
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None of the above DOT FTC USITC ICC None of the above
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Which is NOT a benefit of an FTZ for the government and/or business community of the country it is located in?
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competitive advantages for foreign companies over domestic competitors
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Which is a potential benefit of an FTZ for a foreign company?
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All of the above are benefits delay the payment of tariffs (duties) to help with cash flows and foreign currency availability. Reduce the amount of duties, including down to zero, when the product is transformed in an FTZ. For re-exporting after manufacturing or assembly, take advantage of cheap labor compared to the country of origin and country of final destination. Fix any non-compliance problems (e.g. labeling) to allow the products to enter the country legally. All of the above are benefits.
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The special status of a Foreign Trade Zone (FTZ) in the US means that ...
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an FTZ is not considered part of the US territory for customs purposes.
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How can a foreign company take advantage of an inverted tariff using a public FTZ?
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Bring parts into an FTZ, assemble the final product and transfer it into the country.
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Which is NOT true of a location of an FTZ?
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Only a few US states do not have an FTZ.
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What of the following better represent Magna's strategy?
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Make parts for the top seller cars
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What of the following best describes the situation in which Robert Peterson, the CEO of IBP, is in the caselet?
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Peterson has a public relations issue because IBP has been regarded as manipulative, unfair, and possible even illegal
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How many "caselets" are in the case Regarding NAFTA? (This particular case is unique because rather than one story, the main story, extending NAFTA to Mexico, splits in more than one story)
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3
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The problem Francisco Solis, the Mexican VP at the Sony's Nuevo Laredo plants, was...
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... deal with a newly created agency under the auspices of NAFTA, particularly the U.S. National Administrative Office (NAO)
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Having read all three caselets, what of the following are true?
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This is a tricky question. Sebastian may be setting us up for takeaways from the case discussion
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Magna International ...
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None of the other options are correct
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What of the following is(are) incorrect?
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Sony is new to operating in Mexico
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IBP's case is considerably important because...
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... a bipartisan group of congressional representatives was urging remedial action
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Sony's main reason to establish an operation in Mexico was...
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... because there was a requirement (protectionism) that all product's key components, including materials and labor, had to be wholly North American in origin
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What of the following are correct?
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All of the above are correct
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Tertiary packaging is also called...
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... transportation packaging
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What the customers see is....
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... primary packaging
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What of the following would you label as Breakbulk Cargo...
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A piece of machinery that does not fit in a container and is heavier of the maximum weight of a container load.
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When thinking about the customer service objectives for packaging, we should think of....
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All of the answers are correct
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What retailers handle is ...
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... secondary packaging
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Containers used in air transportation...
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... are not intermodal (inconvenient to use in other transportation modes).
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This picture shows___________ being loaded.
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Breakbulk cargo
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Packaging provides protection. Against what type of protection does packaging provide? 1. Mechanical damage 2. Water damage 3. Theft 4. Pilferage
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i, ii, iii, and iv
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Effective and efficient logistics management results in ...
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... the right materials getting to the right place at the right time in useable condition for the lowest total logistics cost
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What is the objective for the use of the marketing mix?
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***
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Customer service...
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This is a tricky question, all of the above are right.
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What is the output of the logistics function?
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Customer service
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_________ and _________ utility are provided by logistics.
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time, place
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What is a measure of the effectiveness of the logistics system?
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Customer service
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Lambert (1992) argues that effective, efficient marketing requires...
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... management to fully integrate logistics and marketing within the firm's strategic planning process.
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The marketing mix includes:
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Product, price, promotion and place
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From Lambert's point of view, what of the following are necessary for the long-term survival of the firm?
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To be both a low cost producer and a value-added supplier
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Lambert argues that...
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... each element of logistics may vary from market segment to market segment, depending upon customer needs.
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Which costs will need to be taken into account for BOTH domestic and foreign supplier in a more comprehensive and sophisticated calculation of total landed costs?
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inventory costs
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Total landed costs refer to the total cost of a product once it has...
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arrived at the buyer's door.
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According to the video, which costs of dealing with a foreign supplier are NOT hidden or difficult to quantify?
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transportation and insurance
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Which part of the total landed costs should be taken into account for BOTH domestic and foreign supplier?
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quoted price at the origin
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Which is true of the total landed costs?
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They ban be used to support decisions in manufacturing facility location selection.
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To choose between a domestic supplier and a foreign supplier, the video recommends comparing...
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Total landed costs
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Why are total landed costs difficult to calculate?
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All of the above.
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The video likened the calculation of the total landed costs to the calculation of ...
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total logistics costs
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In a final offer to win your business, a British supplier pledges to match the "FOB supplier dock" price of your current, Philadelphia-based supplier by offering you the same price (when converted to US dollars) for the same amount of products delivered to the Port of Philadelphia. Given what you have learned about total landed costs in the video, what should you do?
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Decline the offer, because the total landed costs for the British supplier are very likely to be higher when all factors are considered
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Which part of the total landed costs should be taken into account for BOTH domestic and foreign supplier?
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None of the above costs are part of the total landed costs.
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Tankers
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ships specialized in carrying liquid bulk cargo
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LNG Vessels
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ships that carry Liquified Nitrogen Gas
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Ore and Bulk Ships
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ships with large compartments to carry loads of ore, grain, or coal
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Combination Ships
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special bulk ships that carry both liquid and dry bulk
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General Cargo Vessels
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generic name for ships that carry break bulk cargo of any kind
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Break-Bulk Carriers
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former name for general cargo vessels that carried pallets of goods and were located by stevedores
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Containerships
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a type of general cargo vessels that carry containers
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Roll on-Roll off Vessels
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ships for transportation of vehicles that drive in and out of the vessel through a ramp
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Which is another name for general, or packaged, cargo?
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break-bulk cargo
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Which type of an ocean carrier has the video likened to a city public bus service?
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a liner
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Containerized Cargo
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products placed in containers
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Bulk Cargo
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cargo is free form with no packaging whatsoever
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Break-Bulk Cargo
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packaged products loaded individually
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Neo-Bulk Cargo
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unpackaged products loaded individually
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Project Cargo
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unusual cargo that cannot be routinely shipped
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What is the main differentiating characteristic of a tramp?
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a vessel that does not operate on a fixed schedule and is entirely chartered to one customer
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What is the main differentiating characteristic of a liner?
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a common carrier vessel that sails on a regular schedule and serves many customers
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What is the maximum number of 40-ft containers a 10,000-TEU containership can carry?
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5,000
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Automobiles
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neo-bulk cargo
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Liquefied Natural Gas
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bulk cargo
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Frozen poultry in a 40-ft refrigerated ("reefer") container
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containerized cargo
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Big Helicopter
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project cargo
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Industrial equipment in crates
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break-bulk cargo
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Tankers
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crude oil
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LNG Vessels
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liquefied natural gas
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Ore and Bulk Ships
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iron ore
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Break-bulk reefer vessel
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boxes of frozen poultry
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Containerships
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frozen poultry in a 40-ft refrigerated ("reefer") container
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Roll on-Roll off Vessels
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cars
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What types of ocean carriers were identified in the video?
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private, liners, and tramps
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Tankers
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a private carrier
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Bulk and Break-Bulk Ships
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a tramp
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Containerships
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a liner
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Malcom McLean is best known as a person who...
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introduced containers to ocean shipping
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What is the main differentiating characteristic of a private carrier?
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a vessel owned by a shipper and used to carry its own products
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Logs
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neo-bulk cargo
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Oil
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bulk cargo
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Gasoline in a 30-ft liquid bulk container
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containerized cargo
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Big hydroelectric turbine
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project cargo
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Concentrated grape juice in barrels
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break-bulk cargo
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Which cargo can be shipped as neo-bulk
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automobiles, steel coils, and logs
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Massive volumes of oil on a constant basis
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a private carrier
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Large volumes of cargo on an irregular basis
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a tramp
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Smaller volumes of goods on a regular basis
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a liner
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Sugar can be shipped as
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containerized cargo, bulk cargo, break-bulk cargo
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Which metrics characterize only the commercial (revenue earning) capacity of the vessel?
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net tonnage and TEU
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All the weight in tons that the vessel can carry
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deadweight tonnage
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All volume enclosed spaces in a vessel
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gross tonnage
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Volume capacity of the vessel, excluding the space for water, fuel, and supplies
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net tonnage
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A measure of capacity of containerships
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twenty foot equivalent unit (TEU)
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Which type of an ocean carrier has the video linked to a rental car company?
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a tramp
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Which fact was given in the video to show the importance of air cargo transportation for global supply chains?
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Air cargo transportation accounts for approximately 40% of the world trade in value.
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What is NOT an impact of larger aircraft on the airfreight industry?
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use of larger aircraft has stimulated the growth of GDP of developed and developing countries alike.
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Which is a top airfreight carrier?
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FedEx
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Which products make little sense to be shipped by air?
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bulk commodities
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How have the yields changed in the airfreight industry in the last 20 years?
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They have gone down.
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Which decisions does the video recommend shippers make when it comes to shipping by air?
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all of the above
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Which is true of pallets or containers for airfreight?
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they are used to carry the vast majority of airfreight
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Airfreight rate for a single shipment is based on...
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either its weight or volume
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What options in terms of aircraft and service are available to an airfreight shipper?
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all of the above
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Denser cargo will be charged based on...
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its weight only
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Which are NOT premium rates?
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General Commodity Rates
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The system of airfreight rates is based...
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on both weight and volume of the shipments
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Which factor outside the airline industry has contributed to the consistent growth of airfreight over the years?
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lower barriers to trade by governments around the world
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Which is a type of product/industry that will NOT benefit from the unparalleled speed and reliability that airfreight offers?
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coal for a power plant
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Which is NOT true of air freight forwarders?
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They use their own flight equipment
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Which is NOT a benefit of transporting products by air?
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It is more expensive compared to using ocean carriers.
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The video provides examples of the many questions to consider when determining the best options for your shipment. Which is NOT one of them?
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Can I pay with frequent flier miles?
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Which are likely discounted rates?
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Container Rates and Contract Rates
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Which products make little sense to be shipped by air?
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wheat grain
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What is yield in airfreight?
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revenue per freight ton-mile
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Lighter cargo will be charged based on...
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its volume only
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Which of the following is not a performance metric of interest to global supply chains?
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Market share
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How does the author describe the metrics that are needed to manage global supply chains?
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Timely, complete and actionable
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What of the following is central necessary any global SC metric??
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Supply chain costing
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The author mentions that effective SCM requires reducing cost, increasing inventory velocity and compressing cycle time. What of the following is true?
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Different product categories might require a different mix of these three objectives.
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Which of the following is true regarding sources of costs in global supply chains?
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This is a tricky question, all other options are true.
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What of the following is NOT a characteristic of SCM Accounting?
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Cost are calculated for discrete decision making event
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How does the author describe the data that is necessary for making decision about international operations?
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Accurate, timely and comprehensive
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What of the following is true regarding the costs that have to be considered as potential candidates to understanding costs in Global Supply Chains?
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This is a typical tricky question wrote by Sebastián, all other answers mean the same.
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How do you calculate working capital tied in international trade?
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Accounts receivables, plus the carrying cost of the inventory linked to the international activity minus accounts payable to international suppliers.
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What of the following is does NOT make a difference to cycle time when considering domestic sourcing and offshoring?
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Transportation lead time between the destination port and the distribution center.
