470 Flashcard Set

Question: What is the most efficient way of minimizing empty miles in transportation? Answer: Picking up lots from suppliers after drop-off to customers.

Question: Which cross-border logistics decision will affect an organization's customs tax liabilities? Answer: Production location.

Question: Which agency helps prepare and submit customs declarations on behalf of an importer or exporter? Answer: Freight forwarder.

Question: Which international law focuses on harmonizing customs procedures throughout the world? Answer: Trade Facilitation Agreement (TFA).

Question: What is one of the goals of the Kyoto customs convention? Answer: To make customs procedures more predictable.

Question: Which factor helps define and categorize customs tariff rates? Answer: Commodity code.

Question: Which transport document is essential for maritime cargo? Answer: Bill of Lading.

Question: What is the purpose of a freight forwarder? Answer: To oversee and manage the movement of freight.

Question: Which logistics design element focuses on the structure of the physical network, such as the placement of warehouses? Answer: Logistics network design.

Question: What is the main advantage of using a vendor-managed inventory (VMI) system? Answer: Allowing the vendor to manage stock levels.

Question: Which system produces goods against known customer orders, as opposed to expected demand? Answer: Pull System.

Question: What is the role of a distribution center in logistics? Answer: Holding inventory and decoupling demand requirements from production capabilities.

Question: What is the difference between forward logistics and reverse logistics? Answer: Forward logistics moves products to the customer; reverse logistics moves products back to the seller.

Question: Which certification is related to Environmental Management Systems in logistics? Answer: ISO 14000.

Question: What is the role of inbound logistics? Answer: Managing the receipt of materials into the business.

Question: Which approach focuses on minimizing the environmental impact of products and their packaging? Answer: Sustainability and circular economy.

Question: What are the two fundamental principles set by the World Trade Organization (WTO) to ensure fair trade? Answer: National Treatment and Most Favored Nation (MFN).

Question: Which type of logistics focuses on moving products from customers or destinations for disposal or to recapture the value? Answer: Reverse.

Question: What must a company do well to effectively manage heavy inbound logistics? Answer: Select suppliers, manage distribution centers, and plan for timely transportation.

Question: Which level of trade-off is used when making a trade-off between optimizing production run lengths and the associated warehousing costs of storing the finished product? Answer: Between company function.

Question: What is a type of distribution channel used for sending physical industrial products from a manufacturer or supplier to a factory? Answer: Business-to-Business (B2B).

Question: What are systems that can analyze every transaction and determine the most efficient shipping location? Answer: Distributed Order Management (DOM).

Question: Which mode of transportation consists of the majority of the world's international trade? Answer: Maritime.

Question: What is one advantage of air transport? Answer: It enables long distance travel in a short amount of time.

Question: What is the component of the modal selection process that involves understanding the product's physical nature? Answer: Consignment Factors.

Question: Which high-risk product would necessitate a specialized distribution system designed to contain and minimize the risk? Answer: Newspapers.

Question: Which classification in a 4 V's system is impacted for a toy company that sells 100- and 250-piece jigsaw puzzles, specifically referring to volume? Answer: Variety.

Question: Which product characteristic is addressed when a company ships a notepad to a customer using a padded envelope instead of a box, which relates to size? Answer: Size.

Question: Which agency is responsible for trade facilitation, the protection of society, and revenue collection at the border? Answer: Customs.

Question: What does ABC analysis help companies minimize? Answer: Excess inventory.

Question: Which system involves centralized inventory from which customers are supplied directly? Answer: Direct system.

Question: Tariff quotas allow importers to: Answer: Benefit from temporarily lower tariff rates.

Question: Anti-dumping and countervailing measures are designed to: Answer: Offset the advantages of unfairly priced imports.

Question: Which of the following is NOT one of the three broad regulatory focal points for controlled goods at the border? Answer: High-tech electronics.

Question: The WTO's SPS Agreement focuses on which of the following? Answer: Ensuring food safety and protecting plant and animal health.

Question: Incoterms are used to: Answer: Define the obligations, risks, and costs between buyers and sellers.

Question: What is one objective of Coordinated Border Management? Answer: Streamlining operations and reducing trade compliance costs.

Question: The WCO SAFE Framework of Standards aims to: Answer: Safeguard supply chain security without disrupting global trade.

Question: Which of the following is a pillar of the WCO SAFE Framework of Standards? Answer: Customs-business cooperation.

Question: Why might a company choose to hold stock? Answer: To minimize production costs and accommodate variations in demand.

Question: Which of the following is NOT a type of stock typically held by companies in supply chains? Answer: Environmental stock.

Question: What is the term used to describe the amplification of small changes in demand as they move back through the supply chain? Answer: Bullwhip effect.

Question: The balanced scorecard translates a company's strategic mission into tangible objectives and measures in which four perspectives? Answer: Financial, Customer, Internal, Innovation & Learning.

Question: What is the purpose of the SCOR® model in supply chain management? Answer: To monitor cost and performance.

Question: Which of the following is NOT an objective of performance monitoring and control? Answer: Increase lead time in operations.

Question: Which accounting method addresses problems like the inability to identify cost implications for specific markets? Answer: Activity-Based Costing (ABC).

Question: What is one of the primary reasons organizations choose to outsource logistics operations? Answer: To focus on core business or competence.

Question: What is critical for maintaining a good third-party logistics (3PL) and client relationship? Answer: High degree of trust and collaboration.

Question: Which of the following is NOT a stage in the outsourcing management process? Answer: Minimize client interaction.

Question: What is a key difference between goods and services in terms of logistics? Answer: Goods can be stored as physical inventory, while services cannot.

Question: Which of the following is NOT a component of a Customer Benefit Package (CBP)? Answer: Logistics plan.

Question: What are the three dimensions of the Triple Bottom Line (TBL) for measuring sustainability? Answer: Environmental, Social, Economic.

Question: Operational efficiency in logistics is measured by: Answer: Providing goods and services with minimal waste and maximum utilization of resources.

Question: Which of the following is NOT a key performance measure in customer satisfaction systems? Answer: Profitability.

Question: What is the difference between hard technology and soft technology in logistics? Answer: Hard technology involves physical devices, while soft technology refers to software and systems.

Question: What is the role of Computer-Integrated Manufacturing Systems (CIMs) in logistics? Answer: Automate and control production activities.

Question: What is the primary benefit of using Computer-Aided Design (CAD) in logistics? Answer: Allows engineers to design and test products before physical production.

Question: Scalability in logistics refers to: Answer: The ability to increase services with minimal incremental costs.

Question: Which of the following is NOT a key step in project management for logistics operations? Answer: Eliminating risks.

Question: When designing a warehouse, which of the following is the most important factor to consider? Answer: Space optimization and workflow efficiency.

Question: How does automation improve warehouse efficiency? Answer: By reducing human error and labor costs.

Question: Which of the following is a critical component of effective yard management? Answer: Tracking vehicle movements and managing dock availability.

Question: What is the role of project control in warehouse management? Answer: Monitoring progress, anticipating problems, and adjusting the schedule.

Question: Why is resource planning important in warehouse logistics? Answer: To ensure sufficient resources are available for smooth operations.

Question: A small business needs to cross a bridge in a delivery van to transport its products across the international border to a neighboring country. Which practice can the business use to assist the international agencies stationed there to ensure the efficient clearance of the products across the border? Answer: Improving declarations and documentation.

Question: A busy international shipping company needs to hire a customs and trade compliance manager and is creating an employment request for its human resources team. Which skill will the applicant need to be successful in this role? Answer: The ability to ensure successful systems deployment for vigorous trade operations.

Question: What is a characteristic of the Corrupt Practice Act of 1977? Answer: It involves the use of corporations making unsanctioned payments both inside and outside the country.

Question: What is a key component of the supply cost that is specific to international trade? Answer: Cross-border tariffs cost.

Question: Which supply chain strategy is used to address demand changes using an agile method? Answer: Quick response.

Question: What is one of the benefits of efficient consumer response (ECR) in global trade? Answer: Improved service level.

Question: A country with an economy that is highly dependent on garment manufacturing and retail is having a problem with its border control mechanisms. Which challenge will a garment manufacturing company face while doing business with this country? Answer: Increased competition from foreign brands.

Question: Which agency helps in improving safety in the international trade and supply chain? Answer: Border Enforcement Security Task Force (BEST).

Question: A manager is planning inventory by calculating the average demand for products for the next production period based on the actual demand from the previous two years. Which quantitative forecasting method is the manager using? Answer: Moving average.

Question: A manufacturing company keeps partially finished stock at a nearby supplier's warehouse to ensure that stock deliveries can be made within an hour and goods can be completed and shipped to customers immediately. Which stock type is being held at the warehouse? Answer: In-process.

Question: A company holds stock supplies that are equivalent to the typical demand required to meet frequent customer purchases for one quarter. Which stock type does the firm hold? Answer: Cycle.

Question: Using the Pareto analysis, a manager makes a policy decision that says product lines that are sold quickly will be available at all distribution centers at a 90% availability level. Which category does the manager assign to these product lines? Answer: A Line.

Question: A manager discovers that each time an order is transported to customers, the delivery vehicle returns empty, which increases costs. How could the firm decrease costs by optimizing the return journey? Answer: By collecting raw materials on the return trip.

Question: A company's distribution process moves goods from the production facility to the warehouse, to local distribution centers, and then on to customers. Which distribution process is the company using? Answer: Echelon.

Question: A manager learns that the manufacturing plant has half of the required inventory to complete a customer's order and calculates the penalty for not holding adequate stock. Which element of inventory-holding cost is the manager analyzing? Answer: Storage cost.

Question: A firm rapidly increases its variety of goods, requiring it to order a larger assortment of inventory. Which factor is influencing rising inventory costs? Answer: Increased product proliferation.

Question: A manager evaluates key performance indicators related to cost centers and operations standards and compares the variance between actual costs and performance data to take corrective action. What is the manager evaluating? Answer: Operating control system.

Question: A manager is evaluating the effectiveness of an operations control system and discovers that the data does not include all the product's stages of production and distribution that are necessary to make decisions. Which principle associated with the system should be a concern? Answer: Validity.

Question: A firm is establishing a measurement system to evaluate the effectiveness of its operational functions. Managers with different levels of policy and decision-making authority will be contributing to and implementing improvements based on the data produced by the system. Which best practice should the firm consider as it develops its measurement system? Answer: Hierarchy of needs.

Question: A company identifies world-class standards used by other companies in a variety of global industries to establish a fundamental measure of its operating efficiency compared to other organizations to identify variances that will allow it to employ continuous improvements and close performance gaps. Which process is the firm engaged in? Answer: Benchmarking.

Question: A company uses technology to control all activities, automated equipment, and radio frequency communications with operators in its finished-goods distribution centers. Which system is the company using? Answer: Warehouse management.

Question: A firm donates materials to an aid agency following a natural disaster and asks to be notified when the materials have reached the final end users. When will the aid agency contact the firm? Answer: When materials are distributed.

Question: A community college raises funds to support humanitarian aid in another country that is experiencing a famine. Which role does the community college play? Answer: Donor.

Question: A firm uses a balanced scorecard approach to measure its learning and innovation perspective related to the impact of research and development on new-to-market goods. Which metric does the firm use? Answer: New product introduction.

Question: A firm uses an online system to contract transportation that is similar to an online trading platform used for logistics that is hosted by a third-party agency. Which platform is the firm using? Answer: Digital freight exchange software.

Question: A firm monitors all its distribution centers to determine how expenses such as labor and rent vary from location to location. Which performance indicator does the firm monitor? Answer: Regional cost variations.

Question: A firm uses a formal benchmarking system that considers the requirements of the company's customers and focuses on improving supplier performance for consumers. Which system does the firm use? Answer: Quality function deployment.

Question: A firm uses a formal benchmarking framework that applies standards based on productivity and operational performance excellence officially recognized in the United States. Which framework is the firm using? Answer: Malcolm Baldridge National Quality Award criteria.

Question: A manufacturer wants to streamline its operations and focus on its core business area and decides to outsource its distribution and logistics to a third party. How will this decision impact the manufacturer? Answer: It will cause a decrease in logistics decision-making control.

Question: A manufacturer decides to outsource its distribution and logistics to a third party to provide facilities, distribution centers, and transport vehicles. What is the impact of this decision on the manufacturer? Answer: It will provide investment opportunities in more profitable business areas.

Question: A firm has decided to use a multiuser third-party distribution and logistics agency. Which advantage is gained from this decision? Answer: Economies of scale can be achieved with other firms.

Question: A firm with a strong reputation for quality has decided to outsource its distribution and logistics operations to a multiuser third-party agency start-up that is not well known in the industry. Which scenario is the firm likely to experience as a result of this decision? Answer: The third-party brand could interfere with the firm's brand.

Question: A firm decides to outsource its operations management functions. Which first step should the firm take to consider this relationship? Answer: Identify service requirements and costs.

Question: A third-party distribution and logistics provider decides to scale back from serving multiple users to serving as a dedicated outsourcing firm. Which capability allows the firm to charge more for its services? Answer: Specialization of knowledge and expertise.

Question: A firm has established an outsourcing relationship and monitors the achievement of provider activity targets during review meetings that include open-book audits with different levels of decision-makers. What is the firm engaged in? Answer: Performance tracking.

Question: A firm writes a clause into a contract with a third-party logistics provider that the provider will receive a percentage of the profits whenever the provider exceeds its performance targets. Which approach is the firm using? Answer: Gainsharing-based activity incentive.

Question: A warehouse manager wants to connect the picking operations to its warehouse management system (WMS) to eliminate human intervention from its operations. Which type of inventory management system can help the manager? Answer: Automated storage/retrieval system.

Question: A company is evaluating its options for storing long turbine blades in a warehouse with minimal investment costs. Which storage system should the company use? Answer: Cantilevered racking.

Question: A home utensils company wants to reduce its direct labor costs in its warehouse operations. Which warehouse activity should the company focus on to drive the biggest reduction? Answer: Picking.

Question: Two pickers in a warehouse have picking productivity of 100 lines per hour and 200 lines per hour, respectively. What is the reason for the difference in productivity? Answer: Picking method.

Question: The average picking productivity of two warehouses is X orders per picker per hour and 2X orders per picker per hour, respectively. What is the reason for the productivity difference? Answer: Picking equipment usage.

Question: A large warehouse yard wants to automate the process of assigning bays for loading and unloading vehicles. Which technology can help the warehouse yard? Answer: Geofencing.

Question: What is an example of short-term planning in warehouse management? Answer: Workload planning based on order receipts.

Question: Which operational metric can help a corporation improve its warehouse employee safety statistics? Answer: Days without an accident.

Question: A warehouse received a vehicle with stock on the twelfth day of the month and moved it to the storage location on the fifteenth day of the month. The customer's order for the product was received on the sixteenth day of the same month, and it was dispatched on the seventeenth. What is the put-away cycle time for this operation? Answer: Three days.

Question: Four warehouses have annual stock turnover ratios of the following: W=4, X=5, Y=8, Z=10. Which warehouse holds the lowest level of inventory? Answer: Z.

Question: A company wants to improve its put-away efficiency across its storage network by using advanced systems. Which system can help the company achieve this goal? Answer: Warehouse management system (WMS).

Question: Which operational decision would affect a shipping company's functionality? Answer: Vehicle maintenance.

Question: Why do companies outsource distribution operations? Answer: To reduce logistics costs.

Question: How are fourth-party logistics (4PL) provider solutions delivered? Answer: Across the entire supply chain.

Question: Which type of transportation mode is optimal for shipping a package containing an expensive antique vase a very long distance? Answer: Air.

Question: Which surcharge is used to account for variations in marine fuel pricing? Answer: Bunker adjustment surcharge.

Question: What are the two key factors used in the selection of the most appropriate type of road transport for a large shipment? Answer: Weight and volume of cargo.

Question: A company is distributing four products (A, B, C, and D) with the following volume-to-weight ratios: A 100, B 600, C 1000, D 250. Which product has the lowest volume-to-weight ratio? Answer: Product A.

Question: Which stage of the product life cycle (PLC) function has the greatest positive slope? Answer: Growth.

Question: A skincare company is facing a large amount of fluctuation in the demand for its products. Which operational means of production strategy should the company use in this situation? Answer: Variability-based.

Question: A large chemical company produces a water treatment chemical that is used in the purification process for municipal water treatment facilities. Which manufacturing process should the chemical company use? Answer: Continuous production.

Question: Which type of company performance ability minimizes waste in its production process? Answer: Quality performance.

Question: A company is reengineering its logistics network by lowering costs. How will this action affect the network? Answer: The number of facilities decreases.

Question: A supermarket chain produces its own brand of food products that it uses as a replacement for brand-name items when stock levels are low. The products are essentially identical to those it purchases from brand-name manufacturers. What is the result of this strategy for the supermarket chain? Answer: It decreases logistics costs.

Question: What happens to product sales in the introductory phase of the product life cycle (PLC)? Answer: They increase at an increasing rate.

Question: Which type of logistics should a company interested in improving its recycling operations focus on? Answer: Reverse.

Question: A company's distribution center receives large shipments from its manufacturing plants, which are then shipped out as smaller shipments to customers. Which type of operation is the distribution center using? Answer: Break-bulk.

Question: A government entity sets a road tax exemption for electric vehicles. What is this type of government action called? Answer: Incentive.

Question: What are the two main components of logistics? Answer: Materials Management and Distribution.

Question: What does the Total Logistics Concept (TLC) aim to achieve? Answer: Treating all logistics elements as a single integrated system.

Question: What is the primary goal of a cost leader in logistics? Answer: To minimize costs and maximize productivity.

Question: What does sub-optimization in logistics refer to? Answer: Optimizing one part at the expense of overall performance.

Question: Which of the following is a global logistics complexity? Answer: Complicated supply chain networks.

Question: Which transportation mode is known for its high bulk-handling capacity and energy efficiency? Answer: Rail Freight.

Question: What is a "TEU" in the context of maritime transport? Answer: Twenty-foot Equivalent Unit.

Question: Which of the following is a common shipping surcharge? Answer: Bunker Adjustment Factor (BAF).

Question: How do logistics and supply chain management relate to one another? Answer: Logistics is a subset of supply chain management, which covers additional activities beyond logistics.

Question: What is a distribution channel focusing on transactions and nonphysical movement of goods? Answer: Trading.

Question: Large companies tend to have proportionately lower logistics costs than smaller companies. Answer: True.

Question: When making strategic decisions about logistics and distribution systems, the total system should be considered, not just an individual element or subsystem in isolation. Answer: True.

Question: What is an advantage of vehicle leasing to a vehicle operator? Answer: The operator knows the fixed cost of a vehicle while having full use of the vehicle.

Question: What is the mode of transport involving successive modes without handling goods? Answer: Intermodal.

Question: What is the mode of transport for long distances in short time? Answer: Air.

Question: The key considerations to selecting appropriate transport modes are operational factors, transport mode characteristics, consignment factors, and cost and service requirements. Answer: True.

Question: Railways play a key role in transporting intermodal containers as well as bulk freight. Answer: True.

Question: What is the product characteristic in a drawbar trailer outfit? Answer: Volume-to-weight ratio.

Question: What is the purpose of distribution centers and warehouses? Answer: To hold inventory and provide better customer service.

Question: Which function provides internal source inputs to S&OP (sales & operations) process? Answer: Finance.

Question: The four stages of the product life cycle are introductory, growth, maturity, and decline? Answer: True.

Question: Logistics managers' can contribute to and benefit from logistics planning in an organization's overall corporate strategy by making decisions about how to market products. Answer: FALSE.

Question: What is an example of reverse logistics? Answer: Recycling.

Question: Which activities do companies that are heavy in outbound logistics constantly perform? Answer: Emphasizing facilities, reevaluating distribution, and seek to reduce delivery costs.

Question: What is an example of a governmental measure using financial grants and incentives to achieve commitment to reducing environmental impact? Answer: Road tax reductions and exemptions for electric vehicles.

Question: Which cross-border documents confirm compliance with regulatory specifications? Answer: Certificates.

Question: Which area of protection on the World Trade Organization's (WTO) list of permitted prohibitions and restrictions includes copyrights? Answer: Industrial and commercial intellectual property.

Question: What is an example of a World Trade Organization (WTO) regulatory concern related to public policy? Answer: Strategic export control.

Question: A key principle stating that the lower the costs for moving goods, the greater the market catchment. Answer: True.

Question: Cross-border logistics regulations are mode-specific, focusing on vehicle safety and standards, constraints on the supply of transport services, the environment, and transport security. Answer: True.

Question: Which institutional arrangement model integrates customs and taxes? Answer: Revenue authority.

Question: What serves as a blueprint for contemporary customs procedures? Answer: The World Customs Organization's (WCO) Kyoto Convention.

Question: Which duty is outside of a customs and trade compliance manager's responsibilities? Answer: Deciding how to target customer groups, launch plans, and market products in each market.

Question: The executive part of a customs officer's responsibilities focuses on processing customs declarations, ideally as efficiently and effectively as possible. Answer: False.

Question: Indirect taxes are taxes levied on income or profit and paid as corporate or business taxes or income tax. Answer: False.

Question: Which aspect of society is directly threatened by the import of counterfeit goods? Answer: Commercial property.

Question: Which type of customs entity operates at a district level? Answer: Devolved Units.

Question: Which World Customs Organization (WCO) SAFE Framework of Standards pillar maintains that customs administrations work cooperatively in line with common standards to safeguard supply chain security without disrupting it? Answer: Customs-to-customs cooperation.

Question: The single window concept refers to the idea that different countries implement systems (preferably electronic) enabling all government agencies to interact with the business community via one interface. Answer: True.

Question: A supply chain network configuration comprises these three terms: costs, the flow of goods within, and responsiveness to customer needs. Answer: True.

Question: What is the implication of the World Trade Organization's (WTO) most-favored-nation (MFN) principle for the multilateral trading system? Answer: With some exceptions, countries cannot usually discriminate between their trading partners.

Question: Which party is responsible for holding cross-border goods in temporary storage until cleared by the authorities? Answer: Terminal Operators.

Question: Which cross-border regulation should a country impose if it wants to manage market and consumer protections? Answer: Product labeling requirements, including product descriptions and ingredient details.

Question: Which work responsibility is outside a customs agency's scope of work? Answer: Wage earners' well-being.

Question: Which institutional arrangement model is responsible for both customs administration and immigration services? Answer: Border protection service.

Question: Which situation would prompt a country to levy countervailing duties? Answer: Foreign companies benefit from unfair subsidies, disabling domestic businesses' abilities to compete.

Question: What is an example of direct taxes? Answer: Income taxes.

Question: Which responsibility is outside the scope of the duties of a customs and trade compliance manager? Answer: Determining and forecasting sales for each product.

Question: Which aspect of society is directly threatened by an adverse climate for international trade investment? Answer: National income.

Question: Which pillar supports the World Customs Organization's (WCO) Framework of Standards? Answer: Customs-to-business cooperation.

Question: Why must shippers provide advance manifests before cross-border shipments arrive at their destinations? Answer: To enable customs to assess cargo risks.

Question: What must a business show to customs to qualify for preferential treatment? Answer: That safety and security provisions are in place.

Question: Which type of stock held in the distribution chain is for eventual transfer to the final customer? Answer: Pipeline.

Question: Which principal element of inventory holding costs refers to stock management and insurance costs? Answer: Service cost.

Question: How is the square root law used in inventory planning? Answer: To estimate inventory reduction resulting from a distribution center reduction project.

Question: Square root law states that the total safety stockholding in a distribution system is proportional to the square root of the number of product variations. Answer: False.

Question: The economic order quantity (EOQ) is essential for optimizing and balancing the costs associated with ordering, holding inventory, and still having some safety stock as a buffer. Answer: True.

Question: Which method is a systematic, broad business approach that translates a business operation's strategic mission into tangible objectives and measures? Answer: Balanced scorecard.

Question: Which measurement on a balanced scorecard includes product market share? Answer: Financial.

Question: What is the main difference between commercial and humanitarian supply chains? Answer: Objective to make a profit.

Question: One of the major causes of deviation in an operating control system is price changes. Answer: True.

Question: Measuring whether an operation meets set service levels at an acceptable cost is necessary regardless of whether the operation is in-house or outsourced. Answer: True.

Question: Which outsourced performance management technique involves separating the contract from the rest of the client's business activity? Answer: Subsidiary Reporting.

Question: What benefits a manufacturer using a third-party logistics (3PL) company outsourcing logistics? Answer: Focusing on the company's core competencies.

Question: Which total cost of ownership (TCO) analysis stage includes customs duties? Answer: Acquisition.

Question: Multiuser distribution differs from dedicated operations by catering to a group of client companies within the service provider's operation rather than a single client. Answer: True.

Question: A company can use a trade-off analysis between cost and service when deciding between dedicated operations or multiuser distribution operations for outsourcing distribution. Answer: True.

Question: Which type of inventory stock covers unpredictable daily or weekly fluctuations in demand? Answer: Safety.

Question: Which cost component of inventory holding costs is the largest? Answer: Capital Financing.

Question: What is a disadvantage of low stock levels? Answer: High ordering costs.

Question: What is the meaning of lead-time gap? Answer: The difference between the logistics lead time and the customer's order cycle time.

Question: Which management method supports cost and performance monitoring? Answer: Supply chain operations reference (SCOR) model.

Question: Which performance measurement approach identifies and accounts for the specific characteristics of a customer's ordering, storage, and delivery requirements? Answer: Activity-based costing.

Question: What is the key characteristic of final mile transportation? Answer: Distribution of products to the customers.

Question: Which humanitarian sector performance measurement uses results from how well the field operations staff estimated what was required to meet the needs of an emergency? Answer: Assessment accuracy.

Question: What is an advantage of a multiuser distribution operation? Answer: Higher delivery frequency from load consolidation.

Question: Which metric can monitor an outsourced company's ability to manage stock levels and avoid stockouts of recommended products? Answer: Order fill rate.

Question: Which outsourcing management stage includes open-book audits? Answer: Tracking performance.

Question: Which total cost of ownership (TCO) analysis category includes repair parts? Answer: Usage costs.

Question: What is a cross-dock center's purpose? Answer: To transfer goods directly from the incoming to the outgoing vehicles.

Question: Which part of warehousing logistics involves retrieving the correct quantity of goods from the warehouse in time to meet the required service level? Answer: Order picking.

Question: A warehouse received twice as many raw material units as ordered. Which warehouse area should a warehouse employee send the products to? Answer: Overage.

Question: Due to their height and narrow aisles, automated storage and retrieval systems (AS/RS) offer good space utilization and high throughput levels. Answer: True.

Question: Block stacking is the simplest storage form and requires no racking equipment. Answer: True.

Question: Which type of picking allows for picking all units ordered for each item at once and sorting them into each order at the end? Answer: Batch Pick.

Question: Which term is an example of a management factor that influences pick rates? Answer: Workload balancing.

Question: Which activity uses a yard management system (YMS)? Answer: Determining which trailer to bring to the dock doors.

Question: The main disadvantage of batch picking is that pickers typically walk the entire pick face for a single order. Answer: False.

Question: Picking systems manage the overall control of activities in large warehouse yards. Answer: False.

Question: What is an example of a joint indicator for warehouse performance? Answer: On-time-in-full.

Question: Which product requires a warehouse with special design features? Answer: Paint.

Question: What is an example of a metric related to resource utilization? Answer: Number of standard hours worked.

Question: A labor management system (LMS) is an information technology system that facilitates workload planning at a warehouse. Answer: True.

Question: Workload planning is a short-term planning process. Answer: True.

Question: A company's equipment frequently breaks down and requires repairs. For this reason, it intentionally sets up a decoupling node in its network to hold critical repair parts. Which warehouse type should the company use to address the expected frequent [breakdowns]? Answer: Inventory holding point.

Question: Which palletized storage system enables a strict first in, first out (FIFO) approach? Answer: Adjustable pallet racking.

Question: Which equipment is suitable for handling long loads? Answer: Multidirectional truck.

Question: What is the most common warehouse measurement metric associated with customer satisfaction? Answer: Fill rate.

Question: Which factor determines the timing of the waves in wave picking? Answer: Number of customer orders.

Question: What is a benefit of using geofencing in a distribution center's yard? Answer: Identifying when vehicles move across a boundary to a specific yard area.

Question: Which solution helps balance an order picker's workload between zones in zone picking? Answer: Passing the order whenever pickers meet in the next zone.

Question: What is a continuous order release for picking driven by optimization software based on the workloads of various warehouse processes? Answer: Waveless picking.

Question: Which system facilitates employees' workload planning at a warehouse? Answer: Labor management system (LMS).

Question: Which metric is related to service level? Answer: Percentage of orders dispatched on time.

Question: Which management system focuses on medium-term planning? Answer: Distributed order management (DOM).

Question: Which shareholder expectation factor impacts warehousing decisions? Answer: Corporate objectives.

Question: Cross-dock center Answer: A warehouse type used to address frequent equipment breakdowns and repairs.

Question: FIFO approach Answer: A strict first in, first out storage system.

Question: Equipment for long loads Answer: Multidirectional truck is suitable for handling long loads.

Question: Customer satisfaction metric Answer: Fill rate is the most common warehouse measurement metric associated with customer satisfaction.

Question: Wave picking timing factor Answer: Determined by the number of customer orders.

Question: Geofencing benefit Answer: Identifying when vehicles move across a boundary to a specific yard area.

Question: Zone picking workload balance solution Answer: Establishing fixed boundaries between the different zones.

Question: Continuous order release Answer: Waveless picking is driven by optimization software based on workloads.

Question: Labor management system (LMS) Answer: Facilitates employees' workload planning at a warehouse.

Question: Service level metric Answer: Percentage of orders dispatched on time.

Question: Medium-term planning management system Answer: Warehouse management system (WMS) focuses on medium-term planning.

Question: Which of the following is a type of distribution center? Answer: Trans-shipment site or cross-docking center.

Question: What is an example of an alternative "final mile" solution in logistics? Answer: Urban or city warehouses for fast availability.

Question: Which of the following goods are typically subject to excise duties? Answer: Alcohol, mineral oils, and tobacco.

Question: Example of external environmental impact on society Answer: Greenhouse gas emitted by a delivery truck.

Question: One way a company can increase transport efficiency is to use slip sheets in place of pallets. Answer: TRUE.

Question: Logistics managers are under pressure from customers and external stakeholders to reduce environmental impacts because freight transport and warehousing account for a significant impact on global greenhouse gas emissions. Answer: TRUE.