question

In the future, how is the heterogeneity of products on a given truckload expected to change?

answer

It is expected to increase.

question

At the economy level, the price of transportation is ______________. At the carrier level, it is __________________.

answer

Inelastic, elastic

question

The long tail of demand refers to an increased _____________________________.

answer

Number of SKUs

question

What percentage of total GDP does transportation account for?

answer

9%

question

Transportation is a key part of retailers' strategies to?

answer

Bridge the physical and digital environments

question

In the U.S., water transportation is divided into which categories?

answer

-Coastal -Lake -Inland

question

In China, what product dominates rail movements?

answer

Coal

question

In the U.S., which is largest in terms of ton miles moved?

answer

Rail

question

Why might starting an LTL carrier be even more difficult than starting a TL carrier?

answer

The capital investment required is much greater.

question

In the U.S., which mode represents the largest total spend?

answer

Motor Carriage

question

Which country is the world's second largest exporter of merchandise?

answer

USA

question

How is the capacity of ocean liners typically measured?

answer

TEU's

question

Which type of firm is an intermediary between an ocean carrier and a shipper?

answer

NVOCC

question

What has happened to the percentage of the population employed in manufacturing since the 1940s?

answer

It has decreased

question

What can be used to determine the classification in which a product fits?

answer

Harmonized Tariff

question

What has happened to the total percentage of GDP associated with manufacturing since the 1940s?

answer

It has not changed

question

How does the in-transit carrying cost % typically relate to the inventory carrying cost % when the inventory is stored in a warehouse?

answer

In-transit carrying cost % is typically lower than the warehouse inventory carrying cost %

question

_______________ is the time between when an order is placed and when it is received and becomes available for use.

answer

Lead time

question

Generally, total annual cost = set up cost + holding cost + safety stock cost + average in-transit inventory cost.

answer

True

question

If the cost of capital for a firm increases, what do you expect happens to the in-transit inventory carrying cost?

answer

In-transit inventory carrying cost increases

question

Annual transit cost is a function of which two items?

answer

Annual demand and the transit rate

question

Which of the following are true? (Mark all that apply.)

answer

If a company is using LTL, then the transportation rate should be considered when calculating the EOQ. If a company is using a truckload carrier, then the transportation rate should not be considered when calculating the EOQ.

question

When comparing two different carriers or modes of transportation, there are probably two major differences; cost and service.

answer

True

question

If using less-than-truckload transportation, which aspects of total cost are affected? (Check all that apply.)

answer

Safety stock cost Transit cost In-transit inventory cost Cycle stock cost

question

If lead time is constant, certain and always the same, then the cost of safety stock must be considered when calculating total inventory cost.

answer

False

question

To estimate average in-transit inventory, the transit time (days) should be multiplied by the ________________________________.

answer

Daily Demand Rate

question

If using truckload transportation and the transit rate increases, what do you expect should happen to the company's order quantity?

answer

Should Stay the Same.

question

To take into account the effects of transportation on total cost, we replace item cost (C) with item cost plus transit rate (C + Cm) in the total annual cost equation

answer

True

question

If using less-than-truckload transportation and the transit rate increases, what do you expect should happen to the company's order quantity?

answer

Increase

question

Which of the following are generally true? (Mark all)

answer

As a firm's degree of globalization increases, is potential for outsourcing internal capabilities for gain advantage with product design increases. Tariffs are the taxes that countries levy on imports from other countries.

question

Which are reasons why a product, like jeans, might be produced in multiple countries?

answer

Labor Specialization Agreements between countries

question

Which primary motivation typically happens first for a U.S. company?

answer

The company wants to produce globally to sell domestically.

question

Which capability is even more important when doing business globally?

answer

Agility

question

Which of the following can be a big problem for U.S. companies when doing business internationally, such as in India and China?

answer

Time Zone Differences Transport Equipment Differences

question

Which are reasons why doing business in China may be challenging? (Check all that apply)

answer

Relationships between business partners are different. Relationships with the government are different. How carriers are used may be different.

question

What is the primary meaning of postponement?

answer

Delay

question

Which if any of the following statements are true. A.) When a company makes finishing touches to a product close to its original point of manufacture, it is practicing postponement. B.) Practicing postponement is probably a losing strategy given the rapid advances in technology. C.) Postponement adds flexibility and agility to manufacturing and distribution processes. D.) Practicing postponement can be advantageous from both an inventory and forecasting standpoint.

answer

C. and D.

question

How does postponement likely affect forecast accuracy?

answer

It increases acuuracy

question

As the degree of globalization increases, which cost is most likely to increase?

answer

Transportation

question

If a company shifts from domestic to offshore production, which of the following statements is/are likely to be true?

answer

Safety Stock increases

question

Reasons to do business globally include ___________. I. Access to new markets II. Access to new or needed products III. Decrease transportation cost IV. Decrease manufacturing cost

answer

I, II, and III

question

Which is and example of postponement

answer

3D Printing

question

As the number of touch-points in a global supply chain increase, which of the following is likely true?

answer

Lead time variability increases

question

Applying the total cost concept within logistics often means trying to account for intangible costs, such as markdowns or lost sales. (T/F)

answer

True

question

The continuous review model is a _________ order quantity model and a ________time model.

answer

fixed, variable

question

______________ is the TMS ability to decide which shipment to tender first.

answer

Sequencing

question

______________ is pulling together shipments that are going to the same geographic area.

answer

Consolidation

question

______________ is making a shipment available to a specific carrier.

answer

Tendering and dispaching

question

What is one of the most important operational aspects of a WMS?

answer

The accuracy of the information/data.

question

In a warehouse management system, records must be maintained for each item in stock showing:

answer

The quantity on hand, received, and shipped.

question

What technology may be used by the warehouse to keep accurate information on incoming items?

answer

Radio frequency identification.

question

Which of the following statements about MRP systems are TRUE?

answer

The lowest quantity of a certain product that a supplier is willing to sell is known as their MOQ.

question

Which MRP system input element specifies how many, and when, the firm plans to produce each end inventory item?

answer

Master Production Schedule

question

What is MRP?

answer

A production planning, scheduling, and inventory control system mainly used to manage manufacturing processes.

question

Inventory requirements of a manufacturer that is part of a distribution requirements planning system are typically calculated from:

answer

foretasted end demand of the downstream partners.

question

MRP and DRP are time-based planning systems. What is the significance of "time" in these systems?

answer

Both specify exactly when products are required to be available.

question

Can DRP be applied to a retailer's business?

answer

Yes

question

Which is often the most important output of a WMS?

answer

Accurate Inventory Information

question

Most transportation management systems optimize mode selection.

answer

False

question

Which type of inventory is being managed by a MRP system?

answer

Raw Materials

question

Which is NOT an input to an MRP system?

answer

Transportation Schedule

question

To which other information system is a WMS usually directly connected?

answer

ERP

question

If using both MRP and DRP, at what level of the supply chain is the independent demand forecasted?

answer

Distribution points to where shipments are made.

question

Which firm uses and MRP system

answer

Manufacturer

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