470 Flashcard Set

What is the most efficient way of minimizing empty miles in transportation?

Picking up lots from suppliers after drop-off to customers.

Which cross-border logistics decision affects an organization's customs tax liabilities?

Production location.

Which agency helps prepare and submit customs declarations on behalf of an importer or exporter?

Freight forwarder.

Which international law focuses on harmonizing customs procedures throughout the world?

Trade Facilitation Agreement (TFA).

What is one of the goals of the Kyoto customs convention?

To make customs procedures more predictable.

Which factor helps define and categorize customs tariff rates?

Commodity code.

Which transport document is essential for maritime cargo?

Bill of Lading.

What is the purpose of a freight forwarder?

To oversee and manage the movement of freight.

Which logistics design element focuses on the structure of the physical network?

Logistics network design.

What is the main advantage of using a vendor-managed inventory (VMI) system?

Allowing the vendor to manage stock levels.

Which system produces goods against known customer orders?

Pull System.

What is the role of a distribution center in logistics?

Holding inventory and decoupling demand requirements from production capabilities.

What is the difference between forward logistics and reverse logistics?

Forward logistics moves products to the customer; reverse logistics moves products back to the seller.

Which certification is related to Environmental Management Systems in logistics?

ISO 14000.

What is the role of inbound logistics?

Managing the receipt of materials into the business.

Which approach focuses on minimizing the environmental impact of products?

Sustainability and circular economy.

What are the two fundamental principles set by the World Trade Organization (WTO) to ensure fair trade?

National Treatment and Most Favored Nation (MFN).

Which type of logistics focuses on moving products for disposal?

Reverse.

What must a company do well to effectively manage heavy inbound logistics?

Select suppliers, manage distribution centers, and plan for timely transportation.

Which level of trade-off is used when optimizing production run lengths?

Between company function.

What is a type of distribution channel for sending physical products from a manufacturer to a factory?

Business-to-Business (B2B).

What are systems that can analyze every transaction for shipping efficiency?

Distributed Order Management (DOM).

Which mode of transportation consists of the majority of the world's international trade?

Maritime.

What is one advantage of air transport?

It enables long distance travel in a short amount of time.

What is the component of the modal selection process that involves understanding the product's nature?

Consignment Factors.

Which high-risk product necessitates a specialized distribution system?

Newspapers.

Which classification in a 4 V's system impacts a toy company selling jigsaw puzzles?

Variety.

What characteristic is addressed when shipping a notepad using a padded envelope?

Size.

Which agency is responsible for trade facilitation at the border?

Customs.

What does ABC analysis help companies minimize?

Excess inventory.

What system involves centralized inventory for direct customer supply?

Direct system.

Tariff quotas allow importers to:

Benefit from temporarily lower tariff rates.

Anti-dumping measures are designed to:

Offset unfairly priced imports.

Which is NOT a focal point for controlled goods at the border?

High-tech electronics.

The WTO's SPS Agreement focuses on:

Ensuring food safety and protecting health.

Incoterms are used to:

Define obligations, risks, and costs between buyers and sellers.

What is one objective of Coordinated Border Management?

Streamlining operations and reducing trade compliance costs.

The WCO SAFE Framework aims to:

Safeguard supply chain security without disrupting trade.

Which is a pillar of the WCO SAFE Framework?

Customs-business cooperation.

Why might a company choose to hold stock?

Minimize production costs and accommodate demand variations.

Which is NOT a type of stock held by companies?

Environmental stock.

What describes the amplification of demand changes back through the supply chain?

Bullwhip effect.

The balanced scorecard translates a company's mission into objectives in which perspectives?

Financial, Customer, Internal, Innovation & Learning.

What is the purpose of the SCOR model in supply chain management?

To monitor cost and performance.

Which is NOT an objective of performance monitoring?

Increase lead time in operations.

Which accounting method addresses cost implications for specific markets?

Activity-Based Costing.

What is a primary reason organizations outsource logistics operations?

Focus on core business.

What is critical for a good 3PL and client relationship?

High degree of trust and collaboration.

Which is NOT a stage in the outsourcing management process?

Minimize client interaction.

What is a key difference between goods and services in logistics?

Goods can be stored as inventory, while services cannot.

Which is NOT a component of a Customer Benefit Package (CBP)?

Logistics plan.

What are the three dimensions of the Triple Bottom Line (TBL)?

Environmental, Social, Economic.

Operational efficiency in logistics is measured by:

Providing goods and services with minimal waste and maximum resource utilization.

Which is NOT a key performance measure in customer satisfaction systems?

Profitability.

What is the difference between hard and soft technology in logistics?

Hard technology involves physical devices, while soft refers to software.

What is the role of Computer-Integrated Manufacturing Systems (CIMs) in logistics?

Automate and control production activities.

What is the primary benefit of using CAD in logistics?

Allows design and test products before production.

Scalability in logistics refers to:

The ability to increase services with minimal costs.

Which is NOT a key step in project management for logistics operations?

Eliminating risks.

When designing a warehouse, which factor is most important?

Space optimization and workflow efficiency.

How does automation improve warehouse efficiency?

By reducing human error and labor costs.

Which is a critical component of effective yard management?

Tracking vehicle movements and managing dock availability.

What is the role of project control in warehouse management?

Monitoring progress, anticipating problems, and adjusting schedules.

Why is resource planning important in warehouse logistics?

To ensure sufficient resources for smooth operations.

What practice can assist international agencies for efficient clearance across the border?

Improving declarations and documentation.

Which skill will a customs compliance manager need?

Ensuring successful systems deployment for trade operations.

What is a characteristic of the Corrupt Practice Act of 1977?

Involves unsanctioned corporate payments.

What is a key component of supply costs specific to trade?

Cross-border tariffs cost.

Which supply chain strategy addresses demand changes using an agile method?

Quick response.

What is one benefit of efficient consumer response (ECR) in trade?

Improved service level.

Which challenge does a garment company face in a country with strict border controls?

Increased competition from foreign brands.

Which agency helps improve safety in international trade?

Border Enforcement Security Task Force (BEST).

What quantitative forecasting method calculates average demand based on previous sales?

Moving average.

Which stock type is kept at a supplier's warehouse for quick delivery?

In-process.

Which stock type meets typical demand for customer purchases for one quarter?

Cycle.

Using Pareto analysis, which product line is available at a 90% availability level?

A Line.

How could a firm decrease costs by optimizing the return journey?

By collecting raw materials on the return trip.

Which distribution process is used by a company moving goods from production to customers?

Echelon.

What is the inventory-holding cost element being analyzed if a manager finds inadequate stock?

Storage cost.

What factor influences rising inventory costs due to increased product variety?

Increased product proliferation.

What is the manager evaluating when comparing costs and performance data?

Operating control system.

Which principle should concern a manager if production data is incomplete?

Validity.

What best practice should a firm consider developing a measurement system?

Hierarchy of needs.

Which process involves using world-class standards to measure efficiency?

Benchmarking.

What system is a company using if it automates activities in its distribution centers?

Warehouse management.

When does an aid agency contact a firm that donates materials?

When materials are distributed.

What role does a community college play in humanitarian aid?

Donor.

What metric does a firm use for measuring R&D impact on new products?

New product introduction.

What platform does a firm use for online transportation contracts?

Digital freight exchange software.

Which performance indicator do firms monitor for regional cost variations?

Regional cost variations.

What system does a firm use for improving supplier performance based on customer needs?

Quality function deployment.

Which benchmarking framework uses recognized standards in the US?

Malcolm Baldridge National Quality Award criteria.

What impact does outsourcing logistics have on a manufacturer?

Decrease in logistics decision-making control.

What impact does outsourcing logistics provide in investment opportunities?

Investment opportunities in profitable business areas.

What advantage is gained from using a multiuser third-party logistics provider?

Economies of scale with other firms.

What scenario might a firm experience when outsourcing to an unknown agency?

Third-party brand could interfere with the firm's brand.

What is the first step when outsourcing operations management functions?

Identify service requirements and costs.

What capability allows a provider to charge more when focusing on dedicated service?

Specialization of knowledge and expertise.

What action is a firm engaged in when monitoring activity targets during performance reviews?

Performance tracking.

What approach uses profit sharing with performance targets in contracts?

Gainsharing-based activity incentive.