SCM 413 FInal

Pallets and slip-sheets basically perform the same functionality in a material handling system.

True

The three factors fundamental to transportation performance are ______.

cost, speed, and consistency

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

average about eight percent

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

Operational Performance Measures

Alpha Company has a performance standard of 97 percent fill rate. Last month it achieved a 94 percent 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 three-day performance cycle.

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.

Transportation infrastructure investment in the US _______________.

Has been insufficient resulting in structure failures

A carrier estimates cost of providing service and then adds on a percent profit margin. This is called:

Cost of service strategy

Repositioning empty transportation equipment from one geographic location to another to facilitate further loading is called ___________.

Deadheading

Which of the following are not examples of transportation safety regulations?

Market entry and exist restrictions.

According to Weber, a finished product with a weight index of 1.5 should be located:

Close to the intended product customer

Which type of hidden cost is becoming the most apparent to companies who have outsourced globally?

Transit time uncertainty.

Which of the following types of taxes influence global supply chain design?

All of the choices are correct. Duties, Employee income taxes, Value added taxes.

All of the following are examples of international logistics documentation except

Shipping invoice

Which of the following is not a rationale for globalization?

Reduce transportation costs

Phantom freight occurs when:

A buyer pays transportation costs greater then those actually incurred

Base point pricing is an example of

Delivered pricing

Which global region is characterized by minimal infrastructure?

Africa

According to Weber, a weight ratio of less than 1.0, would indicate:

A weight losing product

Slow transit times in global supply chains impact:

Performance cycle structure

An example of an operational consideration to support global supply chains is:

the amount of documentation required

Countertrade is when:

A seller agrees to accept products as payment as part of the sales agreement

Products with short product life cycles:

Be sourced from domestic sources to increase responsiveness

According to Maslow, workers will __________.

Seek physiological needs and safety before friendship and self-esteem issues

The Gallup 12 is:

A survey that is used to measure employee engagement

Fredrick Winslow Taylor is associated with which school of management thought?

Scientific Management

According to McGregor:

Theory X workers do not want to work

An example of postitive reenforcement according to Skinner is:

Monetary bonus

Which of the following is not an example of the service improvements that can be achieved through logistics and supply chain outsourcing?

Reduced total transportation cost.

Among the following choices which is typically the most expensive transportation mode:

Air

Economic regulation of transportation includes all the following, EXCEPT ______.

regulation of drivers

Which of the following is a product characteristic that directly influences transport cost?

The product's density.

To facilitate classification of a large variety of different items being shipped on a single invoice or order, a traffic manager may want to consider ______.

FAK (freight-all-kinds) rates

What is the primary advantage of shipping containers?

All of the choices are correct. -Ease in switching modes. -Handling efficiencies.-Loading and unloading efficiencies

An organization that provides logistics execution system such as warehouse and transportation management systems is ______.

3PL

Which of the following do NOT illustrate the economy of scale advantages of inventory?

Maintaining supply sources.

The tapering principle of transportation rates suggests that ______.

transportation charges increase at a decreasing rate with distance traveled

Ocean transportation from Asia to the west coast of the US would typically require how much time?

Two months.

Transportation economies of scale results in ______.

shipment per unit cost declines as the size increases

The majority of the laborers for 3PL and 4PL organizations are typically ______.

non-union

Generally the least costly method of moving product that is not gaseous, liquid, or slurry is:

Water

Which of the following represents a major reason for the shortage of warehouse labor?

Decrease in the number of laborers who have the technology talent to operate material handling equipment.

Which of the following is not a characteristic of a global supply chain?

Increased standardization.

Since 1995 the use of intermodal transportation has:

Increase significantly

Which combination of transportation operating service characteristics is not correct?

Capability: air is best; truck is worst

Which mode of transportation is least impacted by weather?

Pipeline

An organization that provides non-asset-based global network, inbound and outbound optimization is generally characterized as ______.

4PL or logistics integrator

Which of the following has the greatest impact on safety stock?

Standard deviation of lead time

Which of the following is the most flexible mode of transportation?

Motor.

Which of the following modes of transportation has low fixed and medium variable costs?

Motor

If you want the consignee to be responsible for goods while they are in-transit you should ship products ______.

to FOB origin

Declining transport rates per unit of weight as the weight shipped increases represents ______.

economy of scale

On a percentage basis, which of the following demonstrates the greatest performance improvement when a firm shifts to logistics and supply chain outsourcing?

Reduced fixed assets required for supply chain management.

The transportation economic principle that deals with economy of distance is:

Tapering

Which of the following is not a reason for firms to look for logistics and supply chain outsourcing when they want to expand global?

Logistics and supply chain outsourcing can provide marketing expertise in global regions where the firm has no experience.

Which of the following is not an argument for using best of breed software products?

Solution integration.

The document that lists and details the contents and conditions of a shipment is called ______.

the bill of lading

Which of the following is NOT a driver of consolidation in the third-party logistics industry?

Manufacturing capability.

When firms reduce their replenishment order quantity without changing the amount of safety stock that they hold, which of the following is likely to happen?

Service level to customers will likely decline

There is increasing consolidation for the major logistics and supply chain service providers. Which of the following is the major justification for this consolidation?

To offer a broad platform of integrated services.

International transportation consolidation and expertise is a service generally provided by ______.

freight forwarder

Which of the following modes of transportation has high fixed and low variable costs?

Rail

Which of the following is the likely impact of increased congestion in cities?

All of the choices are correct.-Increased use of alternative fuels.-Restricted delivery times.

Which of the following are the major reasons for supply chain outsourcing?

All of the choices are correct.-To provide more flexibility regarding capacity.-To take advantage of operational economies of scale.To allow the firm to outsource non-core activities.

When a carrier's transportation vehicle is used for temporary product storage a firm typically must pay ______.

demurrage

The mode of transportation hauling the most tonnage is:

Truck

The Jones Company learned that several other shippers located in its hometown had customers located in the same markets it serves. With this information, Jones could find it advantageous to investigate the potential of ______.

pooled delivery consolidation

Logistics and supply chain outsourcing in North America is a ______ industry.

growing

Which of the following transportation modes is the best for end-to-end delivery?

Motor.

If a transportation vehicle has completed a delivery and is returned empty, the situation is called a:

Deadhead

Which of the following types of service providers is most likely to provide a client firm with the most strategic expertise?

4PL or Logistics integrator

Firms that apply a higher inventory carrying cost percent would likely do all of the following, EXCEPT ______.

maximize purchase quantities from suppliers to reduce per unit cost

The consignee is ______.

the customer receiving the product

Which of the following is not a typical activity outsourced to a logistics service provider?

Order management and fulfillment.

Which of the following is not a risk of outsourcing?

The relationship between the outsourcing firm and the 3PL is basically transactional.

Which of the following is not an example of transportation safety regulation?

Transitioning from stage three to stage four diesel engines to reduce emissions.

Which of the following is a risk of outsourcing?

Reduced access to management expertise in the outsourced function.

Which of the following is not an objective of the Harmonized Tariff Schedule (HTSUS)?

Sets the fines for inadmissible products.

Which of the following global strategies is the best for meeting the requirements of globally based customers?

Transnational.

Which strategy is not focused on local markets?

Transnational.

If a company has no international strategy, what should their delivery plan be?

Direct to customer.

Which of the following need special consideration in global supply chain operations?

All of the choices are correct.-Alliances.-Performance cycle.-Transportation.

Which hidden cost can be avoided by switching the country of production for leather shoes?

Import tariffs.

One of the major problems cited regarding the supply chain integration challenge is ______.

visibility of supply chain activities from end-to-end

Which of the following is not an objective reason for globalization?

Increase market access uncertainty.

Which region has the least complex logistics challenges?

North America.

Which of the following is a characteristic of domestic operations?

Transport mainly by truck and rail.

Increased variability arises from which of the following?

Both shifting political environments and unique documentation requirements are correct.

If a product that is to be sold in the U.S. is made in China and shipped by ocean, what cost category is going to be higher than if the product was made domestically?

Both QA inspection and freight.

Which of the following is not a means of reducing direct cost through globalization?

All the above reduce direct costs.

Which of the following is not a way that transportation is impacted by global changes?

Minor constraints on physical infrastructure capacity.

All other things being equal, domestic sourcing would be suggested for ______.

products with many variations

Which of the following is not a hidden cost of outsourcing?

Labor.

Which of the following is not true about information systems integration within global supply chains?

Many firms have fully integrated global information systems.

Which of the following is the most serious enforcement option applied by customs?

Fraud.

Borrowing money to pay for products while they are being shipped is an example of which type of hidden cost?

Finance charges.

Which of the following is not one of the challenges of international boundaries?

Distribution channels.