Studied by 90 people
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
Note 
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