Deck 14: Logistics Management

Question 1

8)The order fulfillment process ______.

A)may be done in-house
B)cannot be outsourced
C)cannot be offshored
D)is supervised by a government agency

Answer 1

A

Question 2

17)Which of the following is NOT one of the key transportation metrics for a company?

A)the manufacturing cost per product
B)the ability to transport a variety of different products
C)the volume of freight that can transported at one time
D)the ability to adapt to shipping changes and contingencies

Answer 2

A

Question 3

14)If a company's target market consists of price conscious customers,a company may ______.

A)use slower modes of transportation
B)carry low levels of inventory
C)carry poor quality goods
D)avoid outsourcing entirely

Answer 3

A

Question 4

9)The order fulfillment process may be outsourced to a third party so that the outsourcing company can ______.

A)focus on its core business
B)pass the increase in prices to end consumers
C)circumvent government regulation
D)achieve ISO certification

Question 5

6)Which of the following is NOT true of order fulfillment process?

A)It varies in complexity.
B)It may be simple when orders are filled from inventory of made-to-stock items.
C)It may be complicated for items made to order.
D)It is heavily regulated by the government.

Question 6

4)The benefits of integrated logistics management (ILM)include ______.

A)keeping logistics costs down
B)contributing to employee morale
C)contributing to employee motivation
D)circumventing government regulations

Question 7

19)With regard to participants in transportation of goods and services,which of the following statements is true?

A)Infrastructure owners focus on maximizing the return on their investments.
B)The shipper focuses on maximizing the total landed cost.
C)The purchaser of transportation focuses on obtaining services at the highest possible costs.
D)The primary firm may not use any transportation with a view to reducing cost of operations.

Question 8

2)For most companies,logistics costs typically represent ______.

A)between 10% to 35% of gross sales revenues
B)between 10% to 35% of net sales revenues
C)between 35% to 45% of gross sales revenues
D)between 35% to 45% of net sales revenues

Question 9

10)Which of the following statements is true with regard to transportation costs?

A)They are a significant portion of a firm's total supply chain expenses.
B)They represent more than 80% of total logistics costs.
C)They are not reflected in a company's financial statements.
D)They discourage a firm from outsourcing.

Question 10

7)A failure in the order fulfillment process can ______.

A)lead to loss of market share
B)reduce the elasticity of demand
C)invoke government regulation
D)lead to noncompliance with ISO standards

Question 11

5)Which of the following is NOT true of order fulfillment?

A)It is the process by which a company responds to customer orders.
B)It includes all the activities from the initial contact with the customer to the delivery of that order.
C)It is a critical logistics activity.
D)It is heavily regulated by the government.

Question 12

18)Which of the following is NOT one of the four key participants in managing transportation for a company?

A)consignor
B)consignee
C)carrier
D)insurance provider

Question 13

20)The two modes of transportation are ______.

A)basic and advanced
B)advanced and intermodal
C)basic and intermodal
D)government regulated and not regulated

Question 14

1)Which of the following is NOT likely to be a factor in determining logistics costs?

A)the nature of the company's business
B)the company's geographic location
C)the weight and value of the company's products
D)the cost of raw materials procured by the company

Question 15

15)Which of the following correctly pairs an item with the speed of transportation?

A)fresh fish from Alaska: emphasis on slow transportation
B)fashion garments from Benetton: emphasis on fast transportation
C)furniture from Ikea: emphasis on fast transportation
D)bananas from Honduras: emphasis on slow transportation

Question 16

11)Which of the following is NOT considered to be part of a transportation network?

A)pipelines
B)highways
C)shipping sea lanes
D)electronic circuitry

Question 17

3)Integrated logistics management (ILM)refers to ______.

A)a computer system that integrates ordering,transportation,and warehousing of supplies of raw materials
B)the practices used to ensure a continuous and uninterrupted flow of materials and products from suppliers to manufacturers to the final consumers
C)mechanisms by which government regulations can be circumvented
D)infinitely low-cost management techniques

Question 18

16)The key transportation performance metrics to a company are ______.

A)the manufacturing cost per product
B)the elapsed transit time from the initial pickup point to the final delivery point
C)the time taken by the consumer to pick up goods from the retail outlet
D)the frequency of government inspection of transportation network

Question 19

12)Transportation of goods has become a complex undertaking due to ______.

A)increased use of computers and digitization
B)unstable oil prices
C)government regulations
D)the Interstate Commerce Commission

Question 20

13)The role transportation plays in an individual firm ______.

A)influences the firm's competitive strategy
B)depends on the firm's competitive strategy
C)influences the firm's corporate strategy
D)depends on the firm's corporate strategy

Question 21

36)A disadvantage of LTL shipping is that it ______.

A)costs much more than FedEx or UPS
B)has a higher risk of product damage or loss because of the frequent freight handling at the terminals
C)is more regulated than other forms of shipping
D)frequently does not meet ISO requirements

Question 22

33)In regard to motor-carrier shipping,which of the following statements is true?

A)LTL means larger-than-truckload.
B)FTL means full truckload.
C)FTL means fixed truckload.
D)FTL means floating truckload.

Question 23

37)Full truckload shipping (FTL)involves transportation ______.

A)of homogeneous goods
B)that is exemplified by FedEx or UPS
C)that is particularly suitable for liquids (oils,liquid chemicals,etc.)
D)that is highly regulated

Question 24

21)Which of the following is NOT one of the basic modes of transportation?

A)air
B)rail
C)wormhole
D)pipeline

Question 25

27)Most air freight is transported ______.

A)by intermodal transport
B)in passenger planes
C)in special freighters
D)in Airbus aircraft

Question 26

26)In the context of air transport,secondary transportation means ______.

A)transportation that is not as fast as air transport
B)transportation to get goods to/from airport
C)transportation between airports in a journey that involves multiple transportation points
D)transportation to get raw materials (rather than finished goods)

Question 27

29)Motor-carrier costs in the United States ______.

A)are double those of total transportation costs as in the European Union
B)are 77% of the total transportation costs in the United States
C)are half the cost of air transport in the United States
D)are low because these are regulated by the government

Question 28

38)Full truckload carriers are often contracted for transporting ______.

A)food and perishable items
B)liquids (e.g.,oils)
C)nonregulated goods
D)packages for different destinations

Question 29

31)An advantage of transportation by trucks is that ______.

A)they can be used with intermodal transportation
B)they can travel over water
C)they can carry more goods per dollar of fuel costs
D)they are not regulated by government

Question 30

30)In comparison to other modes of transportation,motor carriers ______.

A)are safer
B)provide more flexibility
C)are faster for long distances
D)are much more expensive

Question 31

32)For medium distances,quicker delivery times are provided by ______.

A)air transport
B)sea transport
C)truck transport
D)pipeline

Question 32

28)Increased security measures in airports ______.

A)have contributed to more secure transportation
B)have had a negative impact on the reliability of air transportation for goods
C)have reduced the cost of transportation
D)have made transport of goods faster

Question 33

24)The air mode of transportation is ideal when ______.

A)the delivery speed or reliability is critical
B)the goods to be transported have a low value-to-weight ratio
C)the quantity of goods to be transported is high
D)the goods to be transported are hazardous in nature

Question 34

25)The line-haul cost is ______.

A)the cost of moving the goods from the point of origin to the final destination point
B)the cost of packaging goods for transportation
C)the cost incurred by customer in transporting goods purchased
D)the cost regulated by a government agency

Question 35

23)The mode that represents the highest percentage of U.S.transportation cost in recent years is ______.

A)air
B)pipelines
C)water
D)truck

Question 36

34)With LTL,______.

A)we are talking about less-than-tariff load
B)shippers may combine orders from several shippers
C)shipping is not regulated
D)shipping may not meet ISO requirements

Question 37

39)Which of the following is true with regard to FTL?

A)Carriers transit times are much shorter.
B)They make more frequent stops.
C)The risk of damage to products is higher.
D)Freight frequently needs to be repackaged en route.

Question 38

22)Which one of the following is influenced by the mode of transportation used by a company?

A)cost
B)quality of raw materials purchased
C)extent of government supervision
D)compliance with ISO requirements

Question 39

35)An advantage of LTL shipping is that ______.

A)it costs less than FedEx or UPS
B)the transit times are shorter than FTL
C)it is particularly convenient for very large consignments
D)it is very suitable for shipping liquids

Question 40

40)The main disadvantage of using FTL carriers is the ______.

A)short haul
B)long haul
C)backhaul
D)rehaul

Question 41

60)Packaging goods serves to ______.

A)hide defects in products
B)promote,identify,and inform the consumer
C)thwart government inspection
D)increase product manufacturing time

Question 42

52)A key characteristic of the direct-shipment design is ______.

A)faster delivery
B)multiple transit points
C)better compliance with government requirements
D)poor quality control

Question 43

51)When a firm uses a direct-shipment design,______.

A)each supplier sends shipments directly to each of the buying firm's locations
B)the only decision the buying company's purchasing manager has to make is the quantity of goods to be ordered
C)the only decision the buying company's purchasing manager has to make is the date the goods are to be delivered
C)the only decision the buying company's purchasing manager has to make is the price of goods to be ordered

Question 44

58)Temporal aggregation refers to ______.

A)temporarily aggregating customer orders till economies of scale can be achieved
B)combining orders from the same customer over a period of time
C)waiting to make sure customer has ordered a full truckload
D)waiting for customers in a given country to order such that a full shipload of products can be accumulated

Question 45

42)Which of the following is FALSE with regard to transport by rail?

A)Railroads generate the most revenue in terms of ton-miles shipped.
B)The railroad industry has few freight carriers.
C)Customers relying on transporting freight by rail have many choices.
D)Customers face pricing inflexibility.

Question 46

59)Temporal aggregation ______.

A)will reduce transportation costs
B)will increase the firm's responsiveness
C)will eliminate the need for quality control
D)will increase the need for cross-docking

Question 47

45)Which of the following is NOT a characteristic of transportation by rail?

A)inflexibility as routes and timings are predetermined
B)slower in comparison to shipping by air or truck
C)lower cost in comparison to shipping by truck
D)potential for product damage

Question 48

57)To deliver customer orders quickly,a company has to ______.

A)use faster modes for LTL shipments
B)have more distribution centers located closer to supplier locations
C)avoid quality inspections of products after production
D)reduce packaging requirements

Question 49

46)The most dominant transportation mode for international freight is ______.

A)air
B)water
C)truck
D)rail

Question 50

49)The cost of transporting a barrel of petroleum by pipeline from Houston to the New York harbor is ______.

A)$1
B)$2
C)$3
D)$4

Question 51

41)The backhaul contributes to ______.

A)less regulation by government agencies
B)higher transportation costs for shippers
C)failure to meet ISO standards
D)reduced packaging requirements

Question 52

53)A milk run is a delivery system in which ______.

A)shipments are picked up from several suppliers and the goods are delivered to a single location
B)shipments are picked up from a single supplier and delivered to a single location
C)government regulations do not apply
D)there is poor quality control

Question 53

48)Which of the following is a commodity that is NOT transported by pipeline?

A)oil
B)gas
C)coal
D)coffee slurry

Question 54

44)One of the safest modes of transport is ______.

A)rail
B)sea
C)truck
D)air

Question 55

54)Cross-docking is a logistics practice in which ______.

A)inbound shipments from a carrier are transferred to outbound carriers with little or no intermediate storage in between
B)returned goods from customers are transferred directly to the manufacturer without storage in an intermediate warehouse
C)intermodal transportation is completely avoided
D)transportation is accomplished using a single carrier

Question 56

43)Which of the following is usually NOT a characteristic of rail transport?

A)high-value freight
B)bulk freight
C)a wide variety of products
D)transportation over long distances

Question 57

50)The benefits of transportation by pipeline include ______.

A)more disruptions from inclement weather
B)more worker strikes and absenteeism
C)safety and security
D)the need to switch transportation points

Question 58

47)Which of the following is true with regard to energy efficiency of transportation modes?

A)Water is less than half as energy efficient as by air.
B)Water is less than half as energy efficient as trucks.
C)Transportation by train is more energy efficient than transportation by truck.
D)Transportation by water is less energy efficient than transportation by rail.

Question 59

56)A company may need to trade-off between ______.

A)transportation costs and responsiveness to its customers
B)transportation costs and compliance with government regulations
C)government regulations and responsiveness to its customers
D)responsiveness to its customers and ISO standards

Question 60

55)Distribution centers are useful as ______.

A)intermediate storage locations
B)direct retailing points
C)quality control points
D)they eliminate need for distributed manufacturing

Question 61

65)Which of the following is NOT a standard symbol on a product's package?

A)industry certification
B)proof of purchase
C)consumer report certification
D)information about a product's use and safety

Question 62

72)Which of the following terms is correctly paired with its description?

A)supply warehouses: part of a manufacturing plant and used for long-term storage
B)cross-docking warehouses: typically used for storing finished goods for a short period of time before they are sorted and shipped to their destinations.
C)retail warehouses: storage from which sales to end consumers can be made
D)intermodal warehouses: typically used for storing finished goods between two different modes of transportation

Question 63

69)Cost of handling alone accounts for ______.

A)20% to 25% of total logistics costs
B)20% to 25% of total manufacturing costs
C)12% to 15% of total logistics costs
D)12% to 15% of total manufacturing costs

Question 64

80)Which of the following is NOT part of a facilities network design?

A)warehouses
B)distribution centers
C)service centers
D)locations close to modes of transport

Question 65

73)Which of the following statements is true about warehousing costs?

A)Warehousing costs are a significant part of logistics costs.
B)Warehousing costs are an unnecessary part of logistics costs.
C)Warehousing costs can be minimized by manufacturing the right products.
D)Warehousing costs are strongly influenced by need for quality inspection.

Question 66

70)Which of the following is NOT one of the four categories of tools and equipment used in materials handling systems?

A)storage and handling equipment
B)engineered systems
C)pricing and labeling systems
D)industrial trucks

Question 67

74)Which of the following is usually NOT a reason why warehouses are used as intermediate storage facilities?

A)An imbalance always exists between the quantity of goods produced and the demand for these goods.
B)Warehouses enable companies to regulate the rate of flow of goods between production and consumption points.
C)Warehouses enable businesses to take advantage of volume discounts in procurement of raw materials.
D)Warehouses comply with regulations governing maintenance of minimum inventories.

Question 68

64)Which of the following correctly pairs the type of packaging with its description?

A)primary packaging: the material that is mixed with the contents of a product
B)secondary packaging: outer wrappings that envelop and protect tertiary packages
C)tertiary packaging: protects products during transportation and bulk handling
D)security packaging: packaging used to secure goods from theft

Question 69

75)In recent years,the trend in warehousing has been ______.

A)to have fewer but more centralized warehouses
B)to have a greater number of warehouses that are more decentralized
C)to have a greater number of warehouses that are more centralized
D)to have fewer but more decentralized warehouses

Question 70

71)Warehousing management ensures that ______.

A)goods are properly stored
B)goods are properly tracked
C)goods are properly distributed
D)goods are properly marketed

Question 71

63)In packaging high-value items,shippers may use ______.

A)IDFR tags
B)GPS devices
C)armed guards hidden inside each package
D)the assistance of the NSA

Question 72

66)The retail and logistics industries use bar codes,universal product codes,and RFID labels to ______.

A)identify the product
B)deceive customers about products
C)encourage customers to buy products they do not want
D)hide product defects

Question 73

77)With regard to RFID in inventory management,which of the following is NOT a benefit of RFID?

A)It helps to effectively manage inventory.
B)It helps to identify the location of specific goods.
C)It helps to track goods lost in transit.
D)It expedites inventory management.

Question 74

61)Which of the following is NOT an objective of packaging goods?

A)promote efficiency
B)educate the customer
C)protect the goods
D)thwart government inspection

Question 75

62)In packaging,dye packs are ______.

A)freebies for people who wish to dye their hair
B)used to prevent theft
C)often made available in different colors
D)used to increase the manufacturing cost of a product

Question 76

67)In comparison to transportation by truck,which mode of transport is safer (in the sense it is not as prone to accidents)and also more energy efficient?

A)water
B)air
C)rail
D)bike

Question 77

76)Which of the following is NOT one of the technologies used in warehouse management systems?

A)voice-activated packaging
B)RFID
C)discard-to-light technology
D)voice-activated packaging

Question 78

68)Which of the following is NOT a function of materials handling?

A)short-distance movement (within a plant or warehousing facility)
B)protection of materials (within a plant or warehousing facility)
C)protection of people (within a plant or warehousing facility)
D)long-haul transportation (between plant and warehousing facility)

Question 79

78)Reverse logistics refer to ______.

A)managing product returns
B)repackaging damaged products to hide defects
C)marketing of products returned once by customers
D)advertising of products returned once by customers

Question 80

79)In addition to deciding whether to use supply warehouses,cross-docking warehouses,and/or distribution centers,companies must also decide whether to ______.

A)rent a public warehouse
B)use a contract warehouse
C)own a private warehouse
D)combine renting,contracting,and/or owning