Question 1

With respect to the following operating service characteristics of the modes of transportation,which combination is INCORRECTLY specified?

Accepted Answer

A) Speed: air is best; pipeline is worst. 
B) Availability: truck is best; pipeline is worst. 
C) Capability: pipeline is best; water is worst. 
D) Dependability: pipeline is best; air is worst. 
A) Speed: air is best; pipeline is worst. 
B) Availability: truck is best; pipeline is worst. 
C) Capability: pipeline is best; water is worst. 
D) Dependability: pipeline is best; air is worst. C

Question 2

Zanda Corp.can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop.Should Zanda do this?

Accepted Answer

A) Yes,it will save $100. 
B) Yes,it is simpler to do. 
C) No,it will increase cost by $100. 
D) It doesn't matter based on cost. 
A) Yes,it will save $100. 
B) Yes,it is simpler to do. 
C) No,it will increase cost by $100. 
D) It doesn't matter based on cost. C

Question 3

Your company needs to ship 10 heart pacemakers that cost $10,000 each from Indianapolis,Indiana,to Miami,Florida.Which transportation mode should you use?

Accepted Answer

A) Water. 
B) Air. 
C) Rail. 
D) Truck. 
A) Water. 
B) Air. 
C) Rail. 
D) Truck. B

Question 4

You are shipping 200 diamonds to one customer located 2,000 miles away.The value of a diamond is $1,500.You can ship via air for $500 and the diamonds will arrive in two days,or you can ship via a specialty ground carrier for $250 and the diamonds will arrive in four days.You figure your inventory carrying cost is 25 percent.Your customer will immediately transfer funds to your bank account on receipt of the shipment.Using the air carrier would save approximately how much money in total cost? Use 365 days as the number of days in a year.

Accepted Answer

A) Nothing,it would actually cost more. 
B) $150.00 
C) $247.95 
D) $160.96 
A) Nothing,it would actually cost more. 
B) $150.00 
C) $247.95 
D) $160.96

Question 5

Smith Company learned that several other shippers in its hometown had customers located in the same markets that it serves.With this information,Jones should investigate the possibility of:

Accepted Answer

A) Market area consolidation. 
B) Scheduled delivery consolidation. 
C) Pooled delivery consolidation. 
D) Traffic consolidation. 
A) Market area consolidation. 
B) Scheduled delivery consolidation. 
C) Pooled delivery consolidation. 
D) Traffic consolidation.

Question 6

Logistics management is important to an organization because:

Accepted Answer

A) Typically,50 percent to 75 percent of an organization's costs are attributed to logistics. 
B) Logistics affects customer service. 
C) Offshoring of services is increasing. 
D) Its primary role is managing inbound logistics. 
A) Typically,50 percent to 75 percent of an organization's costs are attributed to logistics. 
B) Logistics affects customer service. 
C) Offshoring of services is increasing. 
D) Its primary role is managing inbound logistics.

Question 7

One function of distribution centers (DC)is "consolidation." This means that the warehouse/distribution center is used to:

Accepted Answer

A) Group small inbound loads into larger outbound loads. 
B) Collect products/packaging materials that are sent back for disassembly,reclamation,or disposal. 
C) Hold inventory to buffer the system from variability in either supply or demand. 
D) Hold inventory needed because of seasonal requirements. 
A) Group small inbound loads into larger outbound loads. 
B) Collect products/packaging materials that are sent back for disassembly,reclamation,or disposal. 
C) Hold inventory to buffer the system from variability in either supply or demand. 
D) Hold inventory needed because of seasonal requirements.

Question 8

Zanda Corp.decided to use a more expensive mode of transportation to deliver orders to customers.This decision was likely made after an examination of:

Accepted Answer

A) Cost-to-cost trade-offs. 
B) Consolidation strategies. 
C) Product availability problems. 
D) Cost-to-service trade-offs. 
A) Cost-to-cost trade-offs. 
B) Consolidation strategies. 
C) Product availability problems. 
D) Cost-to-service trade-offs.

Question 9

In the United States,most freight is shipped by:

Accepted Answer

A) Pipeline. 
B) Air. 
C) Rail. 
D) Truck. 
A) Pipeline. 
B) Air. 
C) Rail. 
D) Truck.

Question 10

All of the following are considered when determining total landed costs EXCEPT:

Accepted Answer

A) Fuel costs. 
B) Product liability costs. 
C) Insurance. 
D) Supply chain risk. 
A) Fuel costs. 
B) Product liability costs. 
C) Insurance. 
D) Supply chain risk.

Question 11

Cross-docking:

Accepted Answer

A) Sorts items for production support. 
B) Stores inventory to support seasonal demand. 
C) Combines break-bulk and consolidation activities. 
D) Supports reverse logistics. 
A) Sorts items for production support. 
B) Stores inventory to support seasonal demand. 
C) Combines break-bulk and consolidation activities. 
D) Supports reverse logistics.

Question 12

A company decides to reduce its number of distribution centers (logistically postpone).This decision would result in ___________ or __________.

Accepted Answer

A) Poorer service to customers or higher transportation cost 
B) Better service to customers or less transportation cost 
C) Better service to customers or higher transportation cost 
D) Confusion for customers or for the company 
A) Poorer service to customers or higher transportation cost 
B) Better service to customers or less transportation cost 
C) Better service to customers or higher transportation cost 
D) Confusion for customers or for the company

Question 13

Which transportation mode has the highest level of greenhouse gas emissions per ton?

Accepted Answer

A) Air. 
B) Rail. 
C) Long-haul truck. 
D) Light duty delivery truck. 
A) Air. 
B) Rail. 
C) Long-haul truck. 
D) Light duty delivery truck.

Question 14

With respect to transportation regulation today in the United States:

Accepted Answer

A) There is no economic regulation of transportation. 
B) There is more economic regulation than ever before. 
C) There is very little safety/social regulation. 
D) There is more safety/social regulation than ever before. 
A) There is no economic regulation of transportation. 
B) There is more economic regulation than ever before. 
C) There is very little safety/social regulation. 
D) There is more safety/social regulation than ever before.

Question 15

A company finds the following information about its customers and their locations:   The center of gravity is:

Accepted Answer

A) X* = 52.5; Y* = 57.5. 
B) X* = 58.33; Y* = 65. 
C) X* = 56.66; Y* = 61.66. 
D) Cannot be determined. 
A) X* = 52.5; Y* = 57.5. 
B) X* = 58.33; Y* = 65. 
C) X* = 56.66; Y* = 61.66. 
D) Cannot be determined.

Question 16

Bill's glass store needs to ship an order of 10 chandeliers to a builder about 1,000 miles away.The chandeliers cost about $10,000 each,and Bill will be paid upon delivery.Bill plans to ship the order by truck at a cost of $1,000.The delivery will take 10 days.Bill uses a 30 percent annual inventory carrying cost.What will be the approximate total shipping and transit inventory carrying cost of the shipment? Assume 365 days per year.

Accepted Answer

A) $633.33 
B) $821.92 
C) $1,000.00 
D) $1,821.92 
A) $633.33 
B) $821.92 
C) $1,000.00 
D) $1,821.92

Question 17

Inventory levels:

Accepted Answer

A) Are not affected by the choice of transportation mode. 
B) Are higher when rail rather than truck transportation is used. 
C) Increase when air rather than truck transportation is used. 
D) Are not affected by the number of warehouses used. 
A) Are not affected by the choice of transportation mode. 
B) Are higher when rail rather than truck transportation is used. 
C) Increase when air rather than truck transportation is used. 
D) Are not affected by the number of warehouses used.

Question 18

As the shipping distance increases:

Accepted Answer

A) Variable costs are spread over more miles. 
B) The shipping costs per pound increase. 
C) Economies of scale are achieved. 
D) The cost per unit of distance decreases. 
A) Variable costs are spread over more miles. 
B) The shipping costs per pound increase. 
C) Economies of scale are achieved. 
D) The cost per unit of distance decreases.

Question 19

Zanda Corp.had established a production plant in Thailand.Recently it decided to close the plant and move production to Mexico.This decision was likely made after Zanda:

Accepted Answer

A) Conducted a spend analysis. 
B) Conducted a make-or-buy analysis. 
C) Examined total landed cost. 
D) Evaluated consolidation strategies. 
A) Conducted a spend analysis. 
B) Conducted a make-or-buy analysis. 
C) Examined total landed cost. 
D) Evaluated consolidation strategies.

Question 20

The Smith Company has decided to change its shipping mode from truck to rail.Its inventory levels will:

Accepted Answer

A) Increase. 
B) Decrease. 
C) Not change. 
D) More information is needed to determine the change in inventory levels. 
A) Increase. 
B) Decrease. 
C) Not change. 
D) More information is needed to determine the change in inventory levels.

With respect to the following operating service characteristics of the modes of transportation,which combination is INCORRECTLY specified?

Zanda Corp.can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop.Should Zanda do this?

Your company needs to ship 10 heart pacemakers that cost $10,000 each from Indianapolis,Indiana,to Miami,Florida.Which transportation mode should you use?

Smith Company learned that several other shippers in its hometown had customers located in the same markets that it serves.With this information,Jones should investigate the possibility of:

Logistics management is important to an organization because:

One function of distribution centers (DC)is "consolidation." This means that the warehouse/distribution center is used to:

Zanda Corp.decided to use a more expensive mode of transportation to deliver orders to customers.This decision was likely made after an examination of:

In the United States,most freight is shipped by:

All of the following are considered when determining total landed costs EXCEPT:

Cross-docking:

A company decides to reduce its number of distribution centers (logistically postpone).This decision would result in _ or .

Which transportation mode has the highest level of greenhouse gas emissions per ton?

With respect to transportation regulation today in the United States:

A company finds the following information about its customers and their locations: The center of gravity is:

Inventory levels:

As the shipping distance increases:

Zanda Corp.had established a production plant in Thailand.Recently it decided to close the plant and move production to Mexico.This decision was likely made after Zanda:

The Smith Company has decided to change its shipping mode from truck to rail.Its inventory levels will:

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Managing Processes and Capacity

A: Process Mapping and Analysis

Productprocess Innovation

Manufacturing and Service Process Structures

Managing Quality

A: Quality Improvement Tools

Managing Inventories

Lean Systems

Sourcing and Supply Management

Logistics Management

Demand Planning: Forecasting and Demand Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

A: Advanced Methods for Project Scheduling

Sustainable Operations Management Preparing for the Future

Filters

Exam 9: Customer Service Management

With respect to the following operating service characteristics of the modes of transportation,which combination is INCORRECTLY specified?

Zanda Corp.can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop.Should Zanda do this?

Your company needs to ship 10 heart pacemakers that cost $10,000 each from Indianapolis,Indiana,to Miami,Florida.Which transportation mode should you use?

Smith Company learned that several other shippers in its hometown had customers located in the same markets that it serves.With this information,Jones should investigate the possibility of:

Logistics management is important to an organization because:

One function of distribution centers (DC)is "consolidation." This means that the warehouse/distribution center is used to:

Zanda Corp.decided to use a more expensive mode of transportation to deliver orders to customers.This decision was likely made after an examination of:

In the United States,most freight is shipped by:

All of the following are considered when determining total landed costs EXCEPT:

Cross-docking:

A company decides to reduce its number of distribution centers (logistically postpone).This decision would result in ___________ or __________.

Which transportation mode has the highest level of greenhouse gas emissions per ton?

With respect to transportation regulation today in the United States:

A company finds the following information about its customers and their locations: The center of gravity is:

Inventory levels:

As the shipping distance increases:

Zanda Corp.had established a production plant in Thailand.Recently it decided to close the plant and move production to Mexico.This decision was likely made after Zanda:

The Smith Company has decided to change its shipping mode from truck to rail.Its inventory levels will:

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Managing Processes and Capacity

A: Process Mapping and Analysis

Productprocess Innovation

Manufacturing and Service Process Structures

Managing Quality

A: Quality Improvement Tools

Managing Inventories

Lean Systems

Sourcing and Supply Management

Logistics Management

Demand Planning: Forecasting and Demand Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

A: Advanced Methods for Project Scheduling

Sustainable Operations Management Preparing for the Future

Filters

A company decides to reduce its number of distribution centers (logistically postpone).This decision would result in _ or .