Deck 8: Logistics

Question 1

Hub and spoke systems are characterized by:

A) "spokes" that are represented by the sites that receive the goods.
B) "hubs" that hold inventory until the appropriate season or upswing in demand.
C) inventory locations that are close to producers, not customers.
D) warehouses that are used as sorting facilities.

Answer 1

D

Question 2

Between any two locations,a less-than-truckload shipment probably experiences fewer stops and handling than a direct truck shipment.

Answer 2

False

Question 3

This transportation mode is often the most expensive on a per pound basis.

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

Answer 3

A

Question 4

Inventory pooling occurs when a warehouse operator fails to complete shipments and is left with inventory that should be elsewhere.

Question 5

Roadrailers are considered a multimodal solution when all of their capabilities are utilized.

Question 6

Packaging is a logistics activity.

Question 7

The transportation mode with the highest dollar value of freight in the United States is:

A) water.
B) rail.
C) highway.
D) pipeline.

Question 8

Assortment warehousing is a form of warehousing that combines classic operations with light manufacturing and packaging duties in order to assure short customer lead times.

Question 9

A material handling system includes equipment and procedures that are needed to move items within a facility,between a facility and a transportation mode,and between different transportation modes.

Question 10

The net result of the renaissance in logistics is that logistics costs are expected to decline.

Question 11

Define logistics and explain why it is critical.

Question 12

What percent of North American gross domestic product is accounted for by logistics?

A) almost 8 percent
B) almost 12 percent
C) almost 16 percent
D) almost 20 percent

Question 13

Cross-docking is essentially the reverse flow from consolidation warehousing.

Question 14

Which of these is NOT a logistics activity?

A) material handling
B) inventory management
C) warehousing
D) inspection

Question 15

The most detailed level of a logistics information system is the execution system.

Question 16

In the United States,the value of goods transported via highway is greater than the value of goods transported by all other transportation modes.

Question 17

Which of the following is an example of consolidation warehousing?

A) Large shipments from multiple suppliers are re-sorted into customized shipments to individual stores.
B) A single manufacturer takes output directly from a single manufacturing plant and sends it directly to a single customer.
C) A single manufacturer takes output from several of its manufacturing plants and combines them into one shipment to a major customer.
D) A single manufacturer holds a wide array of goods close to the source of demand.

Question 18

The mode of transportation that is highly cost effective for bulky items but has relatively poor delivery speed is:

A) highway.
B) water.
C) rail.
D) air.

Question 19

Cargo is loaded and unloaded only once with:

A) direct truck shipment.
B) less-than-truckload shipment.
C) multimodal solutions.
D) None of these modes always has only one loading and unloading.

Question 20

The transportation mode other than highway with the highest annual tonnage in the United States is:

A) air.
B) water.
C) rail.
D) pipeline.

Question 21

Compare any four transportation modes by volume of goods moved in the United States and apparent strengths and weaknesses.

Question 22

The printer manufacturer shipped all finished goods to a centrally located warehouse just down the street from an international airport.When orders came in from one country,workers at the warehouse added instruction manuals in that language and included a power supply that fit the appropriate electrical distribution system.This is an example of ________.

Question 23

It looked like a scene right out of the Transformers series,albeit in a far more functional format.With the push of a button the rail car's wheels folded up into the body of the car and wheels suitable for highway transportation appeared out of nowhere.The whole process took only a minute or so and the ________ was ready to deliver steaming burritos to the growing crowd at the center of town.

Question 24

The most detailed level of logistics information systems is the:

A) decision support system.
B) planning system.
C) material handling system.
D) execution system.

Question 25

Choose a major manufacturer and a major retailer and describe two types of warehousing each might use and why they use it.

Question 26

The ________ mode of transportation is highly cost effective for bulky items but has relatively poor delivery speed.

Question 27

What are the three main categories of logistics information systems? What function does each serve?

Question 28

The difference between a contract carrier and a common carrier is that the common carrier handles shipments on a case-by-case basis while the contract carrier handles shipments based on long-term contracts.

Question 29

Seasonal goods such as holiday decorations and recreational equipment may be placed in a(n)________ close to the marketplace.

Question 30

The perfect order measures how effectively logistics serves the customer while the landed cost measures how efficiently logistics provides that service.

Question 31

The fireworks that were produced year-round in South Africa were sent to warehouses around the United States during the months of May and June in anticipation of large demand for the July 4th holiday.The warehousing system that is BEST suited to handle this situation is the:

A) assortment warehouse.
B) postponement warehouse.
C) spot stock warehouse.
D) break-bulk warehouse.

Question 32

A(n)________ uses more than one transportation mode through physical,information,and monetary flows that are as seamless as possible.

Question 33

Which of the following is a type of material handling equipment?

A) 3PL
B) ASRS
C) LTL
D) RFID

Question 34

A logistics manager uses this type of logistics information system to select a carrier for an outgoing shipment or to develop a weekly schedule of deliveries.

A) decision support
B) planning
C) execution
D) operating

Question 35

________ is a form of warehousing in which smaller outgoing shipments are created from large incoming shipments.

Question 36

One form of warehousing that features light manufacturing and packaging duties and allows firms to put off final assembly or packaging until the last possible moment is:

A) assortment warehousing.
B) spot stock warehousing.
C) postponement warehousing.
D) pac-man warehousing.

Question 37

The online tracking systems offered by overnight carriers are examples of logistics information systems known as ________.

Question 38

A company interested in consistently achieving a high level of on-time delivery would be best served by the highway or air modalities of transportation.

Question 39

The goods entered doors on one side of the massive building and crossed the floor to the other side,where they were loaded on delivery trucks headed out on their delivery routes.The screams of the workers were drowned out by the constant traffic from the nearby airport and rail yard,making this an ideal ________ for the retail giant.

Question 40

Which of these statements about inventory management is BEST?

A) Spot stock warehouses are more useful with less inventory in the system.
B) A system using air transportation experiences higher costs due to higher levels of inventory.
C) Cross-docking facilities don't need to match incoming and outgoing demand since they typically retain much of their inventory for a week or longer.
D) A system using water and rail transportation tends to have higher levels of inventory.

Question 41

A reverse logistics system handles repairs,recycling,returns and remanufacturing.

Question 42

Your new Garden Weasel fails to "completely satisfy" you so you decide to return it for a full refund.What is the name for the system that will carry your weasel back to the manufacturer?

A) upstream logistics
B) reverse ordering
C) upstream ordering
D) reverse logistics

Question 43

A service firm that takes care of all of the logistics requirements for other companies is a:

A) common carrier.
B) contract carrier.
C) third party logistics provider.
D) freight forwarder.

Question 44

In order for the weighted center of gravity method to yield an optimal solution all of the transportation costs in the area must be identical.

Question 45

Last year the Monroe Logistics Company reported 4,000 damaged deliveries,1,000 deliveries to the wrong address,500 late deliveries,and 200 deliveries billed incorrectly.Assuming no delivery had more than one error,how many deliveries were properly handled if their percent perfect order is 87%?

A) 38,145
B) 40,622
C) 43,845
D) 47,561

Question 46

The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago.Sadly,it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon,it was an expensive and lengthy trip.The cheapest plane tickets that were routinely available cost $199 round trip,but occasionally there was a super sale where the price dropped lower than that.He always packed a cooler with $12 worth of ice regardless of how much shrimp he actually bought.The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler.What is the price of round trip airfare that would make the landed cost of a pound of shrimp the same for both driving and flying?

A) $112.85
B) $168.87
C) $103.02
D) $147.26

Question 47

What is a perfect order and what are five elements that might comprise such a measure?

Question 48

Which of these statements about reverse logistics is BEST?

A) Reverse logistics systems are usually less cost-efficient than forward-based systems.
B) Reverse logistics systems are usually designed to be less flexible than forward-based systems.
C) Reverse logistics systems usually play no role in customer satisfaction.
D) Reverse logistics systems usually use the same processes and players that comprise the forward-based system.

Question 49

A(n)________ can handle shipments on an as-needed basis with no long-term contract required.

Question 50

A firm that is interested in consistent on-time delivery would probably design their transportation and warehousing system to include:

A) air transportation with a spot stock warehouse.
B) rail transportation with a consolidation warehouse.
C) water transportation with a hub and spoke warehouse.
D) pipeline transportation with a postponement warehouse.

Question 51

The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago.Sadly,it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon,it was an expensive and lengthy trip.The cheapest plane tickets that were routinely available cost $199 round trip,but occasionally there was a super sale where the price dropped lower than that.He always packed a cooler with $12 worth of ice regardless of how much shrimp he actually bought.The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler.What is the price of round trip airfare that would make the landed cost of a pound of shrimp the same for both driving and flying and what is that landed cost?

Question 52

Last year the Monroe Logistics Company reported 40,000 damaged deliveries,18,000 deliveries to the wrong address,15,000 late deliveries,1,200 deliveries billed incorrectly,and 127,000 deliveries handled properly.Assuming no delivery had more than one error,Monroe's percent perfect order is:

A) 37%
B) 42%
C) 58%
D) 63%

Question 53

The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago.Sadly,it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon,it was an expensive trip.He packed a cooler with $12 worth of ice regardless of the quantity of shrimp he bought to bring home.The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler.What is the landed cost of a pound of shrimp?

A) $11.28
B) $9.80
C) $9.42
D) $8.78

Question 54

The drought of 2011 devastated hay crops in the plains states and horse owners ranged far and wide to purchase hay for their horses when winter arrived.Hay can be purchased "up north" for $4 a bale and a few entrepreneurs with large trailers were more than willing to pick up a few hundred bales and haul them south where demand was high.The transportation cost was $6 per bale and a packing and loading cost of $1 was typical.The landed cost of a bale of hay this winter was:

A) $4.
B) $6.
C) $10.
D) $11.

Question 55

Compare the advantages and disadvantages of ownership of logistics assets.What factors should be considered when deciding whether to own or outsource the assets needed to execute the logistics function?

Question 56

Last year the Perfection Logistics Company delivered 3.1 million packages and damaged 45,000 deliveries,sent 28,000 to the wrong address,and was late 20,000 times.Assuming no package had more than one error,Perfection's percent perfect order is:

A) 93000
B) 3007000
C) 97%
D) 93.7%

Question 57

The complicated gift basket was delivered exactly as it was designed and in plenty of time to be enjoyed during seasonal celebrations.From a logistics performance standpoint,the product could be considered a(n)________.

Question 58

The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago.Sadly,it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon,it was an expensive and lengthy trip.Therefore he bought the cheapest plane tickets he could muster at $299 round trip and packed a cooler with $12 worth of ice.The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler.What is the landed cost of a pound of shrimp?

A) $11.28
B) $16.88
C) $9.80
D) $14.78

Question 59

Universal Exports has several crates it needs to send from the United Kingdom to North Korea.They have located a firm that specializes in transferring cargo to the actual carrier that will bring the crates into North Korea.This firm could be described as:

A) an interlocuter.
B) a customs broker.
C) a freight forwarder.
D) a mercenary.

Question 60

The landed cost is the sum of all of the logistics activities from packaging at the producer's site through transportation,handling,customs,and any other logistics fees to the point of sale.

Question 61

In order for the assignment problem method to yield an optimal solution all of the transportation costs in the area must be identical.

Question 62

A location model that looks at the problem of serving various demand points from multiple supply points at the lowest cost is the ________.

Question 63

customers is also shown in the table. The corporation wishes to minimize the total transportation costs of this assignment problem. Use the table to answer the following questions.

Refer to the scenario above.What is a suitable constraint?

A) Minimize Cost = $3∗S_AW + $6∗S_AX + $4∗S_AY + $2∗S_AZ
B) Minimize Cost = $3∗S_AW + $7∗S_BW + $10∗Scw + $12∗S_DW
C) S_AW + S_BW + S_CW + S_DW ≤ 25,000
D) S_AW + S_AX + S_AY + S_AZ ≤ 22,000

Question 64

The solution obtained from an assignment problem is an optimal answer to the problem of shipping goods from multiple sources to multiple destinations.

Question 65

A producer of action figures is in a quandary about where to locate a central warehouse that will serve all of their regional centers for the coming millennium.They have predicted average annual demands for the following locations in the table.
Where should they locate their central warehouse?

Question 66

Using the map and annual volumes shown next to each location,what is the BEST location for a central warehouse that can be used to service all of the locations?

A) Near (2,3)
B) Near (3,2)
C) Near (3,4)
D) Near (4,3)

Question 67

The Times-Picayune is searching for an ideal spotting station for the morning paper.Neighborhoods,their location on an XY grid of the city,and morning volume are shown in the table.What is the location that will minimize the transportation costs for the newspaper?

A) Near (3.0, 4.5)
B) Near (4.5, 5.0)
C) Near (2.5, 2.5)
D) Near (1.5, 4.0)

Question 68

Acme wants to locate a warehouse to serve their major customers that are shown in the table.What is the location that will minimize the transportation costs for their family of products?

A) Near (3,4)
B) Near (4,5)
C) Near (5,6)
D) Near (6,5)

Question 69

Each of the four production sites ships ten units to each of the four customers.What is the cost of this initial trial shipment plan?

A) $1960
B) $2080
C) $2120
D) $2230

Question 70

The assignment model assumes that:

A) there are no economies of scale in shipping from one point to another.
B) the total amount shipped must exceed plant capacity.
C) the total amount shipped must not exceed demand at each location.
D) negative shipment quantities are acceptable as long as they are balanced by a positive shipment elsewhere.

Question 71

Plants in Vienna, Lucerne, Bruhl, and Salzburg produce the same item that is demanded by customers in London, Paris, Milan, and Athens. Customer demand and plant capacity are shown in the bottom row and rightmost column in the table. The cost to ship one unit between each combination of plants and customers is also shown in the table. The corporation wishes to minimize the total transportation costs of this assignment problem. Use the table below to answer the following questions.

Refer to the scenario above.What is a suitable constraint?

A) Minimize Cost = $19∗S_VL + $16∗S_VP + $3∗S_VM + $8∗S_VA
B) Minimize Cost = $19∗S_VL + $15∗S_LL + $13∗S_BL + $16∗S_SL
C) S_BL + S_BP + S_BM + S_BA ≤ 400
D) 3∗S_VM + 17∗S_LM + 18∗S_BM + 18∗S_SM = 620

Question 72

The Times-Picayune is searching for an ideal spotting station for the morning paper.Neighborhoods,their location on an XY grid of the city,and morning volume are shown in the table.What is the location that will minimize the transportation costs for the newspaper?

A) Near (3.1,4.6)
B) Near (4.3,5.8)
C) Near (2.5,5.2)
D) Near (6.4,2.5)

Question 73

Plants in Vienna, Lucerne, Bruhl, and Salzburg produce the same item that is demanded by customers in London, Paris, Milan, and Athens. Customer demand and plant capacity are shown in the bottom row and rightmost column in the table. The cost to ship one unit between each combination of plants and customers is also shown in the table. The corporation wishes to minimize the total transportation costs of this assignment problem. Use this tidy table to answer the following questions.

Refer to the scenario above.Formulate an appropriate objective function and constraints to model this as an assignment problem.

Question 74

Plants A,B,C,and D produce the same item that is demanded by customers W,X,Y,and Z in the amounts shown in the table.The cost to ship one unit between each combination of plants and customers is also shown in the table.The corporation wishes to minimize the total transportation costs of this assignment problem.
What are the decision variables?
What is the objective function?
What are the constraints?

Question 75

customers is also shown in the table. The corporation wishes to minimize the total transportation costs of this assignment problem. Use the table to answer the following questions.

Refer to the scenario above.Which of these is part of an appropriate objective function?

A) $12∗DW + $15∗DX + $13∗DY + $11∗DZ
B) -$3∗AW - $7∗BW - $10∗CW - $12∗DW
C) CW + CX + CY + CZ = 14,000
D) CW + CX + CY + CZ ≤ 14,000

Question 76

The Times-Picayune is searching for an ideal spotting station for the morning paper.Neighborhoods,their location on an XY grid of the city,and morning volume are shown in the table.What is the location that will minimize the transportation costs for the newspaper?

Question 77

Plants in Vienna, Lucerne, Bruhl, and Salzburg produce the same item that is demanded by customers in London, Paris, Milan, and Athens. Customer demand and plant capacity are shown in the bottom row and rightmost column in the table. The cost to ship one unit between each combination of plants and customers is also shown in the table. The corporation wishes to minimize the total transportation costs of this assignment problem. Use this tidy table to answer the following questions.

Refer to the scenario above.What is the objective function?

Question 78

Plants in Vienna, Lucerne, Bruhl, and Salzburg produce the same item that is demanded by customers in London, Paris, Milan, and Athens. Customer demand and plant capacity are shown in the bottom row and rightmost column in the table. The cost to ship one unit between each combination of plants and customers is also shown in the table. The corporation wishes to minimize the total transportation costs of this assignment problem. Use the table below to answer the following questions.

Refer to the scenario above.What of these equations would be part of the appropriate objective function?

A) $19∗S_VL + $16∗S_LL + $3∗Sbl + $8∗S_SL
B) S_BL + S_BP + S_BM + S_BA
C) $19∗S_VL + $16∗S_VP + $3∗S_VM + $8∗S_VA
D) 3∗S_VM + 17∗S_LM + 18∗S_BM + 18∗S_SM