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

warehouses that are used as sorting facilities.

Question 2

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

Answer 2

True

Question 3

The most detailed level of logistics information systems is the:

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

Answer 3

execution system.

Question 4

Define logistics and explain why it is critical.

Question 5

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 6

What percent of North American gross domestic product from way back in 2012 was accounted for by logistics?

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

Question 7

The mode of transportation that is highly cost effective for bulky items but has relatively poor delivery reliability and speed and the lowest number of convenient locations is:

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

Question 8

Which of these is NOT a logistics activity?

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

Question 9

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 10

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

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

Question 11

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 12

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

Question 13

A material handling system includes the 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 14

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

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

Question 15

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 a(n):

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

Question 16

Which of the following describes 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 17

Which of these statements about inventory management is BEST?

A)Spot stock warehouses need less inventory to meet the needs of customers.
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 18

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

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

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

Packaging is a logistics activity.

Question 21

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

Question 22

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

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

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

Question 25

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 26

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 27

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

Question 28

What is multimodal transportation and why is it an attractive option?

Question 29

A firm that is interested in consistent on-time delivery may be best to 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 30

Cross-docking is the reverse action of consolidation warehousing.

Question 31

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

Question 32

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

Question 33

The goods entered doors on one side of the massive building and crossed the floor to the other side, where they were sorted and 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 34

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 35

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

Question 36

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

Question 37

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

Question 38

Roadrailers are considered a multimodal solution when they switch from rail to ground transportation faster than you can say "Optimus Prime."

Question 39

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

Question 40

The ________ mode of transportation is highly cost effective for bulky items but has relatively poor delivery speed and by far the fewest locations.

Question 41

A firm that maintains a high-volume of demand throughout the year is a better candidate for ________ logistics services than a firm with sporadic demand.

Question 42

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 43

An optimal design for a reverse logistics system is usually a simple reversal of the forward logistics system.

Question 44

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 45

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 46

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

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

Question 47

The Hurricane Fur Wizards that sold two for $19.99 in July began to make their way back to the supplier in late August thanks to numerous design flaws and some rather spectacular headlines. Which of these statements is most likely true?

A)The Hurricane Fur Wizards will come back to the supplier in their original packaging.
B)The Hurricane Fur Wizards will return to the manufacturer on a well-established and predictable schedule.
C)On a per-unit basis, the return of the Hurricane Fur Wizards will likely cost more than their original shipping cost.
D)A single carrier will be employed to bring all Hurricane Fur Wizards back to the supplier.

Question 48

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 49

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 shipping.

Question 50

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

Question 51

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 intermediary
B)a customs broker.
C)a freight forwarder.
D)a mercenary.

Question 52

Ocho deposited the package neatly on the front porch - it was exactly what Lisa ordered, delivered on time and in the right quantity. Ocho's delivery system has completed a perfect order.

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

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

Question 55

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)$113
B)$169
C)$103
D)$147

Question 56

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 57

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 58

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

Question 59

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 60

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 61

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 62

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 63

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? $$\begin{array} { | l | c | c | c | } \hline { \text { Customer } } & \text { Annual Volume } & \text { X-Coordinate } & \text { Y-Coordinate } \\\hline \text { Florida } & 7 & 3 & 7 \\\hline \text { Desire } & 39 & 7 & 5 \\\hline \text { Lafitte } & 245 & 1 & 3 \\\hline \text { Iberville } & 116 & 2 & 5 \\\hline \text { Guste } & 55 & 1 & 6 \\\hline \text { CJ Peete } & 284 & 1 & 4 \\\hline\end{array}$$

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 64

What logistics and warehousing alternatives are most attractive to a company that competes based upon volume and design flexibility? Why?

Question 65

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 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 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 68

All of the participants on the India Immersion study tour were enchanted by the auto rickshaws whizzing smartly around Bangalore. They found a company willing to ship a dozen units to the United States, but had some difficulty locating a(n)________ to handle the customs requirements to actually bring them in the country.

Question 69

The cost of the donuts for the ISOM department's fall meeting was $73.11 and the delivery and warehousing service was another $26.89, bringing the ________ to an even $100.

Question 70

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 question(s).
$$\begin{array} { | l | c | c | c | c | c | } \hline & \text { London } & \text { Paris } & \text { Milan } & \text { Athens } & \text { Total Capacity } \\\hline \text { Vienna } & \$ 19 & 16 & 3 & 8 & 600 \\\hline \text { Lucerne } & 15 & 17 & 17 & 13 & 500 \\\hline \text { Bruhl } & 13 & 18 & 18 & 7 & 400 \\\hline \text { Salzburg } & 16 & 18 & 18 & 7 & 470 \\\hline \text { Total Demand } & 500 & 450 & 620 & 400 & \\\hline\end{array}$$

-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 71

What are the key challenges of implementing a reverse logistics system?

Question 72

Plants A, B, C, and D produce the same item that is demanded by customers W, X, Y, and Z. 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 to answer the following question(s).
$$\begin{array} { | c | c | c | c | c | c | } \hline & \mathbf { W } & \mathbf { X } & \mathbf { Y } & \mathbf { Z } & \text { Total Supply } \\\hline \text { A } & \$ 3 & \$ 6 & \$ 4 & \$ 2 & 22,000 \\\hline \text { B } & \$ 7 & \$ 10 & \$ 8 & \$ 6 & 19,000 \\\hline \text { C } & \$ 10 & \$ 13 & \$ 11 & \$ 9 & 14,000 \\\hline \text { D } & \$ 12 & \$ 15 & \$ 13 & \$ 11 & 15,000 \\\hline \text { Total Demand } & 25,000 & 15,000 & 18,000 & 12,000 & \\\hline\end{array}$$

-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 73

The crowdsourced logistics firm Fed-Ups was developed by two whiz kids that were fed up with paying the exorbitant shipping cost to deliver burritos to their parents' basements. The first month was plagued by a few problems - some participants proved incapable of locating addresses, others had a fear of the outside world, and there was a surprising amount of breakage. Still, they were encouraged as they reviewed the first month's statistics.
Calculate a maximum and a minimum percentage of perfect orders using the data.

Question 74

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? $$\begin{array} { | l | c | c | c | } \hline { \text { Customer } } & \text { Annual Volume } & \text { X-Coordinate } & \text { Y-Coordinate } \\\hline \text { Florida } & 250 & 3 & 7 \\\hline \text { Desire } & 125 & 7 & 5 \\\hline \text { Lafitte } & 178 & 1 & 3 \\\hline \text { Iberville } & 264 & 2 & 5 \\\hline \text { Guste } & 137 & 1 & 6 \\\hline \text { CJ Peete } & 55 & 1 & 4 \\\hline\end{array}$$

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 75

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

Question 76

Betz Manufacturing's ________ system was designed specifically to handle warranty repairs which supported their green initiative where their products would be disassembled and 100% recycled at the end of their useful life.

Question 77

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 78

Plants A, B, C, and D produce the same item that is demanded by customers W, X, Y, and Z. 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 to answer the following question(s).
$$\begin{array} { | c | c | c | c | c | c | } \hline & \mathbf { W } & \mathbf { X } & \mathbf { Y } & \mathbf { Z } & \text { Total Supply } \\\hline \text { A } & \$ 3 & \$ 6 & \$ 4 & \$ 2 & 22,000 \\\hline \text { B } & \$ 7 & \$ 10 & \$ 8 & \$ 6 & 19,000 \\\hline \text { C } & \$ 10 & \$ 13 & \$ 11 & \$ 9 & 14,000 \\\hline \text { D } & \$ 12 & \$ 15 & \$ 13 & \$ 11 & 15,000 \\\hline \text { Total Demand } & 25,000 & 15,000 & 18,000 & 12,000 & \\\hline\end{array}$$

-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 79

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 question(s).
$$\begin{array} { | l | c | c | c | c | c | } \hline & \text { London } & \text { Paris } & \text { Milan } & \text { Athens } & \text { Total Capacity } \\\hline \text { Vienna } & \$ 19 & 16 & 3 & 8 & 600 \\\hline \text { Lucerne } & 15 & 17 & 17 & 13 & 500 \\\hline \text { Bruhl } & 13 & 18 & 18 & 7 & 400 \\\hline \text { Salzburg } & 16 & 18 & 18 & 7 & 470 \\\hline \text { Total Demand } & 500 & 450 & 620 & 400 & \\\hline\end{array}$$

-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

Question 80

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? $$\begin{array} { | l | c | c | c | } \hline { \text { Customer } } & \text { Annual Volume } & \text { X-Coordinate } & \text { Y-Coordinate } \\\hline \text { Coyote, LLC } & 25 & 3 & 7 \\\hline \text { Destry } & 13 & 5 & 2 \\\hline \text { Kingston Inc. } & 6 & 8 & 4 \\\hline \text { Ed Wood Productions } & 4 & 1 & 5 \\\hline\end{array}$$

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