SCM 413 Exam 1 Flashcards

Logistics value proposition is

the unique commitment of a firm to an individual or customer group

Performance cycle uncertainty has the following trait

the larger the variance to desired goal, the bigger the impact

Warehousing, Materials Handling, and Packaging are unique in the sense that they

are an integral part of the other logistics areas

Logistics systems should be designed to achieve customer service goals while maintaining lowest possible financial investment in

inventory

Performance cycles contain which of the following?

inputs and outputs

Which of the following is not a basic element of logistics service?

product stability

When a transaction proceeds through every step of the order management process without fault, exception handling, or invention this is known as

a perfect order

As a general rule, the slower the product turnover, the more erratic the demand, and therefore the greater the benefit of ___ inventory

centralizing

Orders shipped complete is a measure of

availability

The gap reflecting management's lack of knowledge or understanding of the customer is related to a gap in

knowledge

A focus on customer requirements is associated with

customer process

Warehouse facilities used for inbound materials are known as

supply facing warehouses

The practice when inventory from multiple locations is received and combined for shipments to customers is called

consolidation

Positioning inventory in a local market warehouse in anticipation of responding to customer need during the critical sales period is called

spot-stocking

T/F: Service reliability involves the combined attributes of logistics and concerns a firm's ability to perform all order-related activities as well as provide customers with critical information regarding logistical operations and status

True

Speed, Consistency, Flexibility, and Malfunction Recovery are examples of

Operational Performance Measures

Alpha Company has a performance standard of 97% fill rate. Last month it achieved a 94% fill rate. This is an example of

Performance Gap (Gap 3)

From a buyer's perspective, with respect to operational performance, most supply chain managers would prefer which of the following

a consistent 3 day performance cycle

T/F: Because Class A inventory is rarely shipped, it should be placed in a remote place in a warehouse

False

Logistics competency is an example of

Customer Service

Competence, credibility, courtesy, and access are all dimensions of which of the following

Customer Service Expectations

Multi-firm operational integration across a supply chain is referred to as

Supply Chain Synchronization

The key element of order processing is

achieve accurate information to support logistics performance

What type of satisfaction quality gap exists when internal performance standards do not adequately or accurately reflect customer expectations?

Standards Gap

Warehouse employees who accomplish picking, storage, receiving and outbound tasks are usually called

Associates

The use of a Warehouse Management System (WMS) to route fork trucks on demand is called

Task Interleaving

T/F: When a company cross-docks products, the products are generally in storage for several days

False

T/F: The modern concept of a distribution center means that products are never placed in storage

False

Material such as air bags, wood, or metal used to brace product for transit is called

Dunnage

Basic logistics service is a concept that

Describes the level of service provided all established customers

The Pareto Principle is

Used in logistics to develop fine line inventory classification

The work of logistics involves

Transportation, inventory, order processing, warehousing, and facility network design

Facility network design is concerned with which of the following?

All of the answers

-Location of buildings
-The ownership structure of the buildings
-How many buildings

Supply chain synchronization attempts to achieve which of the following?

Coordinate multiple firms activities across the supply chain

Direct logistics operating arrangement accomplish which of the following?

Ship products direct to the consumer's destination from one or more locations.

Which one of these concepts is not part of logistical integration objectives?

Less parcel shipping

The goal of logistics is to ______

support procurement, manufacturing, and customer accommodation

The logistics value proposition is focused on which two main elements?

Service and Cost

A flow through facility is:

Also often called a cross-dock facility

The work of logistics involves ______.

transportation, inventory, order processing, warehousing, and facility network design

Service reliability is best described as:

The quality dimension of logistics performance

Dwell time is:

The ratio of asset idle time to total time required to complete a mission

A unique feature of integrated logistics is:

Its complexity and scope of operations

Total Cost Logistics Model takes into consideration ______.

all expenditures necessary to perform logistical requirements

Logistics is ______.

All of the above

-the process that links supply chain participants into integrated operations
-the catalyst of activity between different supply chain functional areas such as procurement and warehousing
-a critical component to supply chain success

The 80/20 rule, often called the Pareto principle means: ______.

20% of the SKU base will drive 80% of the demand

T/F: Logistics cost has declined as a percent of GDP over the past 25 years

True

Echelon logistics operating arrangements accomplish which of the following?

Utilize warehouses to create inventory assortments and achieve consolidation economies.

Combined logistics operating arrangements do which of the following?

Use both direct and echelon logistics solutions depending on the specific needs.

The primary reason that total logistics cost has reduced as a percentage of GDP is:

Inventory has decreased as a percent of total cost

In 2016 US business logistics costs represented what portion of Gross Domestic Product (GDP)?

7.5%

Logistical operations have two main flows: ______.

inventory and information

A large, multinational company may have how many different logistics performance cycles?

Potentially thousands

A logistics performance cycle is:

The basic unit of supply chain design and operational control

The difference between a “customer success” focus” and a “customer satisfaction” focus is that:

customer satisfaction deals with expectations, customer success deals with requirements.

From a strategic perspective, companies should strive to:

realize different customer accommodation approaches may be appropriate for different customers

Which of the following is not a distribution channel member?

End consumers

Providing value-added services is a critical aspect of:

customer success

When a firm makes every effort to consistently meet the expectations of its customers, it is clear that the firm is focused on ______.

customer satisfaction

Service as Measured by the Customer discussed in the chapter is an example of ______.

customer success

The most exacting measure of logistics performance regarding availability is:

orders shipped complete

Jones Company makes every effort to consistently meet the expectations of all of its customers. It is clear that Jones company is focused on:

customer satisfaction

A key characteristic of high performance supply chains is to ______.

provide targeted service capabilities to key customer segments

Numerous studies have been performed concerning retail stockouts. While results vary, generally the studies find that stockouts:

average about 8%

From a strategic perspective, firms should strive to ______.

realize different customer accommodation approaches may be appropriate for different customers

Which of the following is a basic service element?

Service reliability

Which level of customer focus achieves customer objectives?

Success

In providing service outputs to consumers, a disadvantage of Internet retailers compared to store-based retailers arises in:

waiting time

Which customer accommodation approach requires a comprehensive, future-oriented supply chain perspective on the part of executives?

Customer success

Basic supply chain service is a concept that ______.

describes the level of service provided to all established customers

In general, offering consumers higher levels of service output in terms of greater spatial convenience or product variety:

results in higher logistics and distribution cost

A firm has found that it provides a 90% order fill rate (orders shipped complete), 90% on time delivery, 90% of its orders arrive at customers destination in perfect condition, and 90% of the time all documentation is correct. These are all of the elements of a perfect order for this company’s customers. What is the best estimate if it’s perfect order performance?

66%

Jones Company promised a customer that the customer would receive at least 98 percent of all items ordered. In fact, the company delivered 95 percent of the items. This is an example of which “gap” in the customer satisfaction model?

Communication gap (Gap 4)

Which of the following is not one of the “service outputs” of a supply chain?

Price

20% of customers/products account for 80% of sales. This is known as which of the following?

Pareto principle

In general, offering consumers higher levels of service output in terms of greater spatial convenience or product variety ______.

results in higher logistics and distribution cost

Providing perfect orders to a customer would be a key aspect of which customer accommodation focus?

customer service

Which of the following is not one of the “service outputs” of a supply chain:

price

Jones Company promised a customer that the customer would receive at least 98% of all items ordered. In fact, the customer received 95% of the items. This is an example of which “gap” in the customer satisfaction model?

communication gap

T/F: Cross docking is a form of sorting

True

When a firm “spot stocks” inventory they are engaged in ______.

placing inventory in a local warehouse in anticipation of future need

One function of a distribution warehouse is consolidation, which means the facility is being used to ______.

group small inbound shipments into one large outbound shipment

When engaged in warehouse picking and a combination of customer order requirements are selected simultaneously the method being employed is called:

Wave selection

A firm that supports an automotive assembly plant by providing just-in time inventory is engaged in ______.

sequencing

When a firm uses cross-docking, inventory:

Moves directly from receiving to shipping

The four economic benefits of warehousing are:

Consolidation, sorting, seasonal storage, and reverse logistics

T/F: Assembly is a primary service expected to be performed by lead suppliers.

True

A company which has limited experience in warehousing who has a need to establish temporary warehouse facilities in multiple cities would most likely use:

Public warehouses

“Slotting” a warehouse means:

Products are assigned a specific warehouse location

Which of the following is not an objective of industrial packaging?

Advertising

A firm that groups small shipments for delivery to a retail mall is doing ______.

pooled delivery

T/F: Recycling is a major part of reverse logistics.

True

When orders are shipped directly to the customer, it is called ______.

drop shipping

Which of the following material handling systems offers the most flexibility?

Information directed

When a firm “spot stocks” inventory they are engaged in:

Placing inventory in a local warehouse in anticipation of future need

A firm that supports an automotive assembly plant by providing just-in time inventory is engaged in:

Sequencing

T/F: A disadvantage of RFID tags versus UPC codes is that RFID is more expensive

True

Which type of material handling system typically has the highest fixed cost and the lowest variable cost?

Automated

When a firm engages in extended storage they normally are:

Holding inventory in excess of typical replenishment requirements

One function of a distribution warehouse is consolidation, which means the facility is being used to

Group small inbound shipments into one large outbound shipment