Deck 16: Logistics

Question 1

The purpose of the ________ is to minimize the firm's overall logistics cost by implementing the systems concept appropriately.

A)trade-off concept
B)total cost concept
C)liner service
D)tramp service
E)ex-works

Answer 1

B

Question 2

________ is the design and management of a system that controls the forward and reverse flow of materials,services,and information into,through,and out of the international corporation.

A)One-stop logistics
B)Order cycle time
C)International logistics
D)Materials management
E)Physical distribution

Answer 2

C

Question 3

Of the following,which is NOT true of a domestic logistics manager?

A)Domestic logistics managers use their experience to guide their decisions.
B)Domestic logistics managers depend on educated guesses to determine the steps required to obtain a desired service level.
C)Domestic logistics managers use an intimate knowledge of trends to guide their decisions.
D)Domestic logistic managers rely on rules of thumb to make decisions.
E)Domestic logistic managers rely on industry comparisons to make decisions.

Answer 3

B

Question 4

The second phase in the movement of materials is ________.

A)physical distribution
B)materials management
C)systems concept
D)supply-chain management
E)extended enterprise

Question 5

A decision concept that recognizes linkages within the decision system is known as ________.

A)total cost concept
B)trade-off concept
C)logistics platform
D)supply-chain management
E)systems requirements

Question 6

China is ________ on the list of the top ten U.S.trading partners.

A)first
B)second
C)third
D)fourth
E)fifth

Question 7

________ is ocean shipping via irregular routes,scheduled only on demand.

A)Sea bridges
B)Tramp service
C)Bulk service
D)Roll-on-roll-off
E)Liner service

Question 8

The international transportation of goods can be divided into three components:

A)Infrastructure,the availability of modes,and the choice of modes among the given alternatives
B)Rail networking,intra-firm structure,and the availability of modes
C)The timing of modes among the given alternatives,energy-efficiency of modes,and the availability of modes
D)Energy-efficiency of modes,infrastructure,and rail networking
E)The availability of modes,infrastructure,and energy-efficiency of modes

Question 9

Liner service,bulk service,and tramp or charter service are types of ________.

A)air shipping
B)ground shipping
C)ocean shipping
D)pipeline shipping
E)railroad shipping

Question 10

Great Soda Company,located in Canada,uses both land and sea bridges to transfer freight to international locations.Great Soda Company is utilizing ________.

A)intermodal movements
B)container ships
C)tramp service
D)bulk service
E)roll-on-roll-off

Question 11

The first phase in the movement of materials is ________.

A)physical distribution
B)materials management
C)systems concept
D)supply-chain management
E)extended enterprise

Question 12

Vital to a firm's competitive position,the firm's ________ is determined by a location's ease and convenience of market reach under favorable cost circumstances.

A)intermodal movements
B)sea bridges
C)transit time
D)logistics platform
E)reliability

Question 13

The fundamentals of a country's ________ system remain the best predictor of cost and efficiency.

A)legal
B)ethical
C)technological
D)judicial
E)logistics

Question 14

Approximately ________ percent of the world's manufactured exports by weight travel by air.

A)10
B)20
C)30
D)40
E)50

Question 15

Advances in ________ have been crucial to progress in supply-chain management and supplier coordination.For example,TaylorMade-Adidas' golfing branch-uses supply-chain management and execution software in order to optimize performance.

A)the legal system
B)information technology
C)the automotive navigation
D)management outsourcing
E)transit time

Question 16

A reduction of inventories will save money but may increase the need for costly emergency shipments.This is an example of the ________.

A)trade-off concept
B)total cost concept
C)liner service
D)tramp service
E)ex-works

Question 17

Airlines have made major efforts to increase the volume of airfreight.Of the following,which is NOT one of those major efforts?

A)They are developing better,more efficient ground facilities.
B)They are introducing airfreight containers.
C)They are providing marketing and a wide variety of special services to shippers.
D)They are offering incentives for pilots wishing to transport freight.
E)They are developing jumbo cargo planes and combination passenger and cargo aircraft.

Question 18

Of the following,which is the best freight transportation mode?

A)Water
B)Air
C)Rail
D)Pipeline
E)It depends on the strategic situation of the firm and the country

Question 19

Logistics can comprise between ________ and ________ percent of the total land cost of an international order.

A)5; 10
B)10; 30
C)35; 50
D)65; 75
E)75; 90

Question 20

If a firm's primary concern is lower inventory cost,the firm can develop ________ delivery system.

A)JIT
B)EDI
C)ESI
D)CPT
E)DDP

Question 21

The capability of a shipper to obtain information about the location of the shipment at any time is known as ________.

A)reliability
B)predictability
C)preferential policies
D)tracking
E)incoterms

Question 22

Areas created by a country to attract foreign investors,in which there are no tariffs,substantial tax incentives,and low prices for land and labor are called ________.

A)export declarations
B)ports
C)maquiladoras
D)foreign trade zones
E)special economic zones

Question 23

With ________,the seller delivers the goods,with import duties paid,including inland transportation from import point to the buyer's premises.

A)carriage paid to
B)delivered duty paid
C)delivered duty unpaid
D)free alongside ship
E)free on board

Question 24

In the simplest form of exporting,the only documents needed are ________ and ________.

A)a bill of lading; a shipper's order
B)export documentation; a shipper's order
C)a shipper's order; a commercial invoice
D)a bill of lading; an export declaration
E)a commercial invoice; a straight bill of lading

Question 25

________ is the direct transfer of information technology between computers of trading partners.

A)EDI
B)RORO
C)DDU
D)CPT
E)EXW

Question 26

In deciding the level of inventory to be maintained,the international manager must consider three factors:

A)Transit time,predictability,and desired customer service levels
B)Predictability,the order cycle time,and the use of inventories as a strategic tool
C)Noneconomic factors,desired customer service levels,and transit time
D)The order cycle time,desired customer service levels,and use of inventories as a strategic tool
E)Predictability,transit time,and the order cycle time

Question 27

Of the following modes of transportation,which is the LEAST dependable?

A)Air
B)Pipeline
C)Highway
D)Rail
E)Water

Question 28

Levi Strauss,the blue jeans manufacturer,offers customers in some of its stores the chance to be measured by a body scanner.Less than an hour after each measurement,a Levi factory has begun to cut the jeans of their choice.Levi Strauss is making efforts to reduce the ________ of its products.

A)predictability
B)reliability
C)transit time
D)delivery duty paid (DDP)
E)order exposed time

Question 29

When selecting a mode of transport,the manager must consider the performance of each mode on the following dimensions:

A)Transit time,predictability,cost,and noneconomic factors
B)Transit time,reliability,cost,and noneconomic factors
C)Predictability,reliability,transit time,and cost
D)Noneconomic factors,transit time,predictability,reliability
E)Cost,predictability,transit time,and tracking

Question 30

If each subsidiary in an international market is made a profit center in itself and each one carries full responsibility for its performance,the subsidiary is said to be ________.

A)domestic
B)outsourced
C)centralized
D)decentralized
E)headquartered

Question 31

Nowadays,for the average import shipment to the United States,shippers pay ________ in transportation costs for every ________ paid in tariffs.

A)$2; $1
B)$3; $20
C)$5; $50
D)$8; $20
E)$9; $1

Question 32

Toys For Tots Company set a customer service goal to fill all customer orders in three days,making their customer service level 100 percent.However,within the same three days,only 70 percent of the orders were filled.The customer service level of Toys For Tots is at ________ percent.

A)30
B)50
C)70
D)90
E)100

Question 33

Prices quoted in ________ apply only at the point of origin,and the seller agrees to place the goods at the disposal of the buyer at the specified place on the date or within the fixed period.

A)free carrier
B)free alongside ship
C)ex-works
D)free on board
E)cost and freight

Question 34

________ can be useful as transshipment points to reduce logistics cost and redesign marketing approaches.

A)Ports
B)Foreign trade zones
C)Export declarations
D)Rail cargo zones
E)Special economic areas

Question 35

There are two types of bills:

A)Good and bad
B)Negotiable and nonnegotiable
C)Right and wrong
D)Flexible and present
E)Fixed and variable

Question 36

The ________ addresses how many distribution centers to have and where to locate them.

A)location decision
B)position decision
C)pricing decision
D)marketing decision
E)market share decision

Question 37

Incoterms are divided into four categories.Of the following,which is NOT one of those categories?

A)E-terms
B)F-terms
C)C-terms
D)D-terms
E)S-terms

Question 38

________ allows shippers to buy all the transportation modes and functional services from a single carrier,instead of going through the pain of choosing different third parties for each service.

A)One-stop logistics
B)Reverse distribution
C) Foreign trade zones
D)Incoterms
E)Sea bridges

Question 39

A significant characteristic of the ________ approach to international logistics is the existence of headquarters staff that retains decision-making power over logistics activities affecting international subsidiaries.

A)domestic
B)outsourcing
C)centralized
D)decentralized
E)headquartered

Question 40

The responsibility for appropriate packaging rests with the ________ of goods.

A)buyer
B)carrier
C)manufacturer
D)shipper
E)distributor

Question 41

Advances in information technology are transforming America into a nation of "track-a-holics" because it appears that everyone wants the ability to electronically track the whereabouts of the products they order or ship.

Question 42

Key to business logistics are three major concepts: (1)the systems concept,(2)the total cost concept,and (3)the trade-off concept.

Question 43

Inventory carrying costs and transportation costs are not a function of the general health of the economy.

Question 44

International transportation services are usually priced on the basis of both cost of the service provided and the value of the service to the shipper.

Question 45

International packaging often serves the dual purpose of protection and display.

Question 46

After the terrorist attacks of 2001,companies have had to learn that the pace of international transactions has ________.

A)become faster
B)stayed the same
C)slowed down
D)sped up
E)stopped

Question 47

Shipper's order bills of lading are nonnegotiable.

Question 48

The rise in cargo theft and pilferage has given birth to a whole new industry of "risk consultancies," which are contracted by exasperates ship owners to safeguard their vessels.

Question 49

The purpose of establishing inventory systems is different for domestic and international operations.

Question 50

In Germany,car manufacturers are required to take back their used vehicles for dismantling and recycling purposes.This is an example of ________.

A)transit time
B)tracking
C)one-stop logistics
D)order cycle time
E)reverse distribution

Question 51

"Winners" of Roberts Express "Shipments from Hell" contest have nightmare tales of late,lost,broken,or even burned shipments.

Question 52

Air is the mode of transportation with the fastest speed and highest cost.

Question 53

In the United States,Internet sales are expected to increase by ________ percent annually through 2010.

A)5
B)9
C)15
D)20
E)25

Question 54

Railroads are not always the best mode of transportation.

Question 55

The period between departure and arrival of the carrier is the same for ocean freight and air freight.

Question 56

Non-perishable products require longer transit times.

Question 57

A system responding to the need for product returns that ensures a firm can retrieve a product from the market for subsequent use,recycling,or disposal is called ________.

A)transit time
B)tracking
C)one-stop logistics
D)order cycle time
E)reverse distribution

Question 58

The first phase in the movement of materials is physical distribution.

Question 59

All parties of the arrangement benefit from foreign trade zones.

Question 60

Of the following,which is NOT true regarding the supply chain and the Internet?

A)The Internet is a tool that is accessible to all people across the globe.
B)Companies wishing to enter e-commerce will not have to do so on their own.
C)The acceptance of e-commerce is not uniform.
D)Access to the Internet is undergoing major expansion through new technologies.
E)For industries such as music and motion pictures,the Internet is both an opportunity and a threat.

Question 61

Ocean shipping characterized by regularly scheduled passage on established routes is known as ________.

Question 62

The ________ is a decision paradigm that recognizes linkages within the decision system.

Question 63

A decision framework that uses cost as a basis for measurement in order to evaluate and optimize logistical activities is known as the ________.

Question 64

The forwarding of freight by an ocean carrier is called ________.

Question 65

________ refers to the transfer of freight from one mode or type of transportation to another.

Question 66

The ________ is a view of logistics based on the notion that materials-flow activities are so complex that they can be considered only in the context of their interaction.

Question 67

Ocean shipping provided on contract either for individual voyages or for prolonged periods of time is referred to as ________.

Question 68

The ________ is vital to a firm's competitive position; it is determined by a location's ease and convenience of market reach under favorable cost circumstances.

Question 69

________ refers to the movement of finished products from suppliers to customers.

Question 70

The timely movement of raw materials,parts,and supplies into and through the firm is called ________.

Question 71

After the terrorist attacks of 2001,companies have had to learn that the pace of international transactions has sped up and that formerly routine steps will now be faster.

Question 72

________ refers to ocean shipping via irregular routes,scheduled only on demand.

Question 73

A(n)________ occurs when companies consider the entire supply chain to be a single organization that needs to be managed for purposes of both efficiency and effectiveness.

Question 74

The acceptance of e-commerce is uniform; it is widely accepted internationally.

Question 75

The transfer of freight among various modes of transportation at sea is known as ________.

Question 76

Importers to the United States and the customs brokers who serve them are feeling pressure to help secure U.S.borders.

Question 77

Retrieval of recyclable goods should not be restricted to short-term consumer goods,such as bottles.

Question 78

A decision concept that recognizes linkages within the decision system is called ________.

Question 79

Reverse logistics concerns the handling and disposition of returned products and use of related materials and information.

Question 80

________ refers to the transfer of ocean freight on land among various mode of transportation.