Deck 15: Global Logistics and Distribution

Question 1

With electronic tracking technology, shippers are able to quickly react to any disruption in the shipments because the shipper knows where exactly the goods are
In real time and:

A) labor can be adjusted accordingly.
B) the alternative means can be quickly mobilized should problems develop.
C) costs can always be evaluated.
D) losses are rare.
E) customer service is now at a premium.

Answer 1

B

Question 2

________________ is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national
Boundaries to achieve its corporate objectives at a minimum total cost.

A) Global goods flow
B) Global distribution
C) Global logistics
D) Global wholesaling
E) Global shipping

Answer 2

C

Question 3

According to the textbook, which of the following famous business thinkers characterized logistics as being "the darkest continent of business?"

A) Philip Kotler.
B) Stephen Covey.
C) Michael E. Porter.
D) Peter Drucker.
E) Tom Peters.

Answer 3

D

Question 4

When raw materials, components, and supplies are converted or manipulated for processing and assembly by the firm, the process is monitored and controlled by
The ________________________ function of the firm.

A) physical distribution
B) purchasing
C) intermodal transportation
D) materials handling
E) materials management

Question 5

Recently the U.S. dollar depreciated while the Japanese yen soared in value. Honda found that it was much cheaper to ship its Accord models to Europe from its Ohio
Plant than from Japan. This could most accurately be classed as a move made
Because of problems or opportunities with:

A) distance.
B) logistics.
C) exchange rate fluctuations.
D) foreign intermediaries.
E) domestic intermediaries.

Question 6

All of the following factors contributed significantly to the increased complexity and cost of global logistics as compared to domestic logistics EXCEPT:

A) exchange rate fluctuation.
B) distance.
C) domestic intermediaries.
D) foreign intermediaries.
E) negotiations with government officials and distributors.

Question 7

_______________________ refers to the movement of the firm's finished products to its customers, consisting of transportation, warehousing, inventory, customer
Service/order entry, and admission.

A) Physical distribution
B) Purchasing
C) Intermodal transportation
D) Global logistics
E) Materials management

Question 8

Which of the following factors contribute significantly to the increased complexity and cost of global logistics as compared to domestic logistics?

A) domestic intermediaries
B) service
C) purchasing
D) exchange rate fluctuation
E) materials handling

Question 9

__________________ transportation refers to the seamless transfer of goods from one mode of transportation (such as an aircraft) to another (such as a ship) and
Vice versa without the hassle of unpacking and repackaging of goods to suit the
Dimensions of the mode of transportation being used.

A) Bi-polar
B) Bi-modal
C) Intercontinental
D) Dual-basic
E) Intermodal

Question 10

In global logistics and distribution, Coca-Cola's success relies largely on its global distribution arm, ______________________, the world's largest bottler group.

A) Coca-Cola Enterprises
B) Coca-Cola Network
C) Coca-Cola Web
D) Coca-Cola Team
E) Coca-Cola Trucking Co.

Question 11

__________________ refers to the means of keeping continuous tabs on the exact location of the goods being shipped in the logistics chain.

A) Data processing
B) Messaging service
C) Tracking technology
D) Computerized messaging
E) Hybrid technology

Question 12

All of the following are activities that occur during physical distribution EXCEPT:

A) transportation.
B) warehousing.
C) inventory.
D) order entry.
E) promotion and advertising.

Question 13

Global logistics encompasses:

A) advertising and personal selling.
B) purchasing and manufacturing.
C) materials management and trucking.
D) materials management and physical distribution.
E) pricing and manufacturing.

Question 14

The global logistics process begins with which of the following?

A) materials management
B) processing and assembly
C) physical distribution
D) raw materials, components, and supplies
E) finished products ready for shipment

Question 15

___________________ refers to the inflow of raw materials, parts, and supplies in and through the firm.

A) Global logistics
B) Physical distribution
C) Materials management
D) Purchasing processes
E) Global distribution

Question 16

With respect to distribution costs, a geographically large country such as the United States will normally incur more ______________________ costs than in smaller
Countries.

A) transportation, insurance, and inventory
B) warehousing, customer service/order entry, and general administration
C) transportation and inventory
D) materials handling
E) warehousing and transportation

Question 17

In 2011, the total logistics cost represented about 8.5 percent of the GDP, or $1 trillion in the _________________.

A) U.S.
B) Ireland
C) Portugal
D) Belgium
E) Romania

Question 18

The bulk of international trade is handled by ________________________.

A) ocean shipping
B) air transport
C) trucking services
D) railroads
E) inland waterways

Question 19

In 2012, in the U.S., the total logistics cost was ______ percent of the U.S. GDP.

A) 1
B) 3
C) 5.5
D) 8.5
E) 10.5

Question 20

As firms start operating on a global basis, ___________________ need to manage the shipping of raw materials, components, and supplies among various manufacturing sites at the most economical and reliable rates.

A) human resource managers
B) logistics managers
C) operations managers
D) outsourcing managers
E) information technology managers

Question 21

_________________ means reducing resources to achieve more efficient and cost-effective operations.

A) Rationalization
B) Utility management
C) Physical distribution management
D) Logistic integration
E) Logistic modeling

Question 22

The ________________ of the product refers to the quality degradation over time and/or product obsolescence along the product life cycle.

A) perishability
B) cost of transportation
C) cost of insurance
D) value-to-volume ratio
E) intermodal ratio

Question 23

The _________________ is determined by how much value is added to the materials used in the product.

A) perishability of the product
B) cost of transportation
C) the cost of insurance
D) the value-to-volume ratio
E) the intermodal ratio

Question 24

Multinational corporations can use ________________ as a strategic tool in dealing with currency fluctuations and as a hedge against inflation.

A) buying power
B) just-in-time management
C) just-in-time delivery
D) purchasing management
E) inventory

Question 25

All of the following are important factors in determining an optimal mode of transportation to be used in foreign markets EXCEPT:

A) the cost of transportation.
B) the value-to-volume ratio.
C) the perishability of the product.
D) obsolescence along the product life cycle.
E) the cost of insurance.

Question 26

__________________ refers to coordinating production and distribution across geographic boundaries.

A) Rationalization
B) Utility management
C) Physical distribution management
D) Logistic integration
E) Logistic modeling

Question 27

By increasing ___________________ before imminent depreciation of a currency instead of holding cash, the firm may reduce its exposure to currency depreciation
Losses.

A) buying power
B) plant and equipment
C) trucks
D) materials handling equipment (such as forklifts)
E) inventory

Question 28

Another profound change in the last decade is the proliferation of _______________.

A) IT warehouses
B) e-commerce
C) information technology
D) global shipping traffic
E) global air traffic

Question 29

If a product were to be categorized as being heavy, bulky, and nonperishable, probably the best form of global shipping would be:

A) ocean shipping.
B) air freight.
C) truck.
D) rail.
E) barge.

Question 30

The primary forms of ocean shipping include all of the following EXCEPT:

A) liner service.
B) bulk shipping.
C) tanker shipping.
D) irregular runs.
E) FedEx surface.

Question 31

3PL stands for:

A) third-party logistics.
B) third-power logistics.
C) third-peer logistics.
D) third-production logistics.
E) none of the above.

Question 32

The largest third-party logistics sector is the value-added ________________ and _________________ industry.

A) warehousing, purchasing
B) warehousing, manufacturing
C) warehousing, distribution
D) warehousing, painting
E) none of the above

Question 33

The trend toward third-party logistics is a result of the _____________ and the _____________.

A) Internet, enterprise resource planning
B) Internet, technology simulations
C) Internet, customer relationship management
D) Internet, Intranet
E) none of the above

Question 34

Research has shown that if Nike or Reebok were to be transporting their footwear from plants in Asia to the United States, they would probably choose which of the
Following transportation modes?

A) ocean shipping
B) air freight
C) truck
D) rail
E) barge

Question 35

The traditional logistics strategy involves ____________________ based on forecasting and inventory speculation.

A) supply and demand
B) anticipatory demand management
C) inventory volume equations
D) purchasing ratios
E) microeconomic principles

Question 36

___________ inventories also provide a hedge against inflation because the value of the goods/parts held in inventory remains the same compared to the buying power of
Local currency.

A) High-tech
B) Low-tech
C) High
D) Low
E) None of the above

Question 37

Information technology, electronic data interchange, and intermodal transportation have made ____________________ a reality in physical distribution.

A) low cost transportation
B) a "no returns" policy
C) ultimate distribution service
D) just-in-time delivery
E) accurate purchasing management

Question 38

If a company wished to ship semiconductor chips abroad, they would probably choose:

A) ocean shipping.
B) air freight.
C) truck.
D) rail.
E) barge.

Question 39

The most important factors in determining an optimal mode of transportation for foreign markets are the value-to-volume ratio, perishability of the product, and:

A) the cost of transportation.
B) intermodal ratio.
C) total cost ratio to inventory and warehousing expense.
D) the cost of insurance.
E) the distance to speed relationship.

Question 40

All of the following are viable options for shipping products internationally on a global basis (anywhere in the world) EXCEPT:

A) ocean shipping.
B) air freight.
C) cargo liner service.
D) truck.
E) intermodal transportation.

Question 41

Various governments have established ____________________________.

A) export processing circles.
B) export processing groups.
C) export processing clans.
D) export processing networks.
E) export processing zones.

Question 42

As a type of intra-firm sourcing, _____________________ is when a company procures major components in-house by producing them domestically.

A) domestic in-house sourcing
B) offshore subsidiary sourcing
C) domestic purchasing arrangement
D) offshore outsourcing (offshore sourcing)
E) export management company

Question 43

Japan has established trade zones to increase __________________.

A) maquiladora operations
B) assembly operations
C) imports
D) exports
E) none of the above

Question 44

As a type of outsourcing, _____________________ is when a company buys major components from independent suppliers overseas.

A) domestic in-house sourcing
B) offshore subsidiary sourcing
C) a domestic purchasing arrangement
D) offshore outsourcing (offshore sourcing)
E) export management company

Question 45

Sourcing strategy includes two basic choices. One of these is intra-firm sourcing and the other is __________________.

A) importing
B) outsourcing
C) in-sourcing
D) matrix manipulation
E) horizontal integration

Question 46

__________________ affects the company's decision about where to source and market, based on lower cost of labor and other resources in one country relative to
Another.

A) Relative advantage
B) Absolute cost advantage
C) Comparative advantage
D) Competitive advantage
E) Sourcing advantage

Question 47

A __________________ is an area that is located within a nation, but is considered outside of the customs territory of the nation.

A) border zone
B) red zone district
C) warehouse district
D) dock facility
E) free trade zone

Question 48

_________________ influences decisions regarding what activities and technologies a company should concentrate its investment and managerial
Resources in (in relation to its competitors in the industry).

A) Relative advantage
B) Absolute cost advantage
C) Comparative advantage
D) Competitive advantage
E) Sourcing advantage

Question 49

Some distribution companies even find that the best way to be successful is to create a distribution ________________.

A) alliances
B) mergers
C) acquisitions
D) consortia
E) joint ventures

Question 50

In the United States, a free trade zone is officially called a __________________.

A) Maquiladora operation
B) border zone
C) red zone district
D) Foreign Trade Zone
E) Channel Zone

Question 51

The Internet and Intranet facilitate __________________________.

A) parallel delivery.
B) cheap delivery.
C) expensive delivery.
D) forward-time delivery.
E) on-time delivery.

Question 52

All of the following are benefits of using a free trade zone EXCEPT:

A) duty deferral and elimination.
B) lower tariff rates.
C) no government interference in intelligence gathering activities.
D) exchange rate hedging.
E) "Made in U.S.A." designation.

Question 53

Duty deferral and elimination, lower tariff rates, exchange rate hedging, and a "Made in U.S.A." designation are all benefits of using a __________________.

A) Maquiladora operation
B) border zone
C) red zone district
D) Foreign Trade Zone
E) Channel Zone

Question 54

Typical B2B procurement systems rely on _______________ that emphasize the lowest bids on a global basis.

A) promotions
B) selling
C) manufacturing
D) auctions
E) production

Question 55

Companies that outsource to the extent that they adopt a "designer role" in global competition (i.e., offer innovations in product design without investing
In manufacturing process technology) have been described by some as being:

A) vertical corporations.
B) horizontal corporations.
C) hollow corporations.
D) supply and demand corporations.
E) monopoly manufacturers.

Question 56

Covisint is probably the largest global online ________ procurement system.

A) C2B
B) B2B
C) B2G
D) C2C
E) B2C

Question 57

At the macro-level, benefits of using a free trade zone include all of the following EXCEPT:

A) increased investment and employment.
B) more revenue through increased local taxes.
C) obtaining a beachhead in a foreign market without being in the mainstream distribution process.
D) the ability to reassemble large shipments into different groupings.
E) no duties on labor.

Question 58

_________________________ usually provide tax- and duty-free treatment of production facilities whose output is meant to be exported.

A) Gray products processing zones
B) High-tech processing zones
C) Maquiladora processing zones
D) Export processing zones
E) Import processing zones

Question 59

As a type of outsourcing, _____________________ is when a company buys major components from independent suppliers at home.

A) domestic in-house sourcing
B) offshore subsidiary sourcing
C) a domestic purchasing arrangement
D) offshore outsourcing (offshore sourcing)
E) export management company

Question 60

As a type of intra-firm sourcing, _____________________ is when a company procures major components from its foreign subsidiary.

A) domestic in-house sourcing
B) offshore subsidiary sourcing
C) domestic purchasing arrangement
D) offshore outsourcing (offshore sourcing)
E) export management company

Question 61

With respect to strategies available to the business unit, a ____________ strategy appears to be more effective than a __________ strategy in emerging markets.

A) service/product
B) product/service
C) push/pull
D) pull/push
E) pull/parallel

Question 62

The Large Scale Retail Store Law (LSRSL) in _______________ helped to protect small retail stores.

A) Singapore
B) Pakistan
C) Indonesia
D) Japan
E) South Korea

Question 63

As a branding strategy, _______________ is especially attractive to MNCs that face well-entrenched incumbent brands in the markets they plan to enter. (This
Overcomes the problem of shelf-space denial.)

A) domestic branding
B) national branding
C) manufacturers branding
D) store branding or private labeling
E) service labeling

Question 64

To show the increasing power of retailers in today's business world, the traditional supply chain that was once powered by the manufacturer has been turned around.
Distribution today is characterized as being ____________ in nature.

A) push
B) pull
C) vertical shove
D) horizontal slant
E) parallelism

Question 65

All of the following are factors that have explained the success of private labels in recent years EXCEPT:

A) better packaging decoration.
B) improved quality of private-label products.
C) development of premium private-label brands.
D) expansion into new product categories.
E) internationalization of retail chains.

Question 66

The traditional supply chain powered by manufacturer push is becoming a:

A) demand chain driven by logistics.
B) demand chain driven by advertising.
C) service chain driven by customer service.
D) service chain driven by response time.
E) demand chain driven by customer pull.

Question 67

_______________ is the fastest growing Internet market in Asia.

A) China
B) India
C) Indonesia
D) Hong Kong
E) South Korea

Question 68

In which of the following countries are store brands marginal players because of loyalty to national or manufacturer brands?

A) United States.
B) United Kingdom.
C) Japan.
D) France.
E) Canada.

Question 69

Mexico's border industrialization program was developed in __________.

A) 1945
B) 1955
C) 1965
D) 1975
E) 1985

Question 70

Mexico permits _______ percent foreign ownership of the maquiladora plants in the designated maquiladora zone.

A) 25
B) 50
C) 75
D) 90
E) 100

Question 71

On-time retail information management carries two distinct advantages which are:

A) reduced inventory and accounting information at the retail level.
B) reduced inventory and market information at the retail level.
C) reduced inventory and manufacturing information at the retail level.
D) reduced inventory and production information at the retail level.
E) reduced inventory and outsourcing information at the retail level.

Question 72

Which of the following should a company NOT do with a channel partner?

A) seek companies with good contacts
B) treat companies as short-term partners
C) withhold information from the distribution partner
D) allow the distribution partner to make marketing strategy decisions
E) all of the above

Question 73

When Heinz sells its soup products to grocery store chains and allows them to put their own store names on the product, the product is being sold as a:

A) domestic brand.
B) national brand.
C) manufacturers brand.
D) store brand or private label.
E) service label.

Question 74

In Mexico, the free trade zone program (also called the in-bond or twin-plant program) is called the _____________________________.

A) Maquiladora operation or industry
B) border zone
C) red zone district
D) Foreign Trade Zone
E) Channel Zone

Question 75

The Mexican version of the free trade zone is called the _________________.

A) Maquiladora operation or industry
B) border zone
C) red zone district
D) Foreign Trade Zone
E) Channel Zone

Question 76

If a retail firm sells a product under its own store name it is called a:

A) unique brand.
B) vertical brand.
C) horizontal brand.
D) store brand or private label.
E) hybrid label.

Question 77

In Mexico another name for the Maquiladora operation or industry is the:

A) in-bond or twin-plant program.
B) bonded warehouse.
C) border zone.
D) cross border zone.
E) indentured zone.

Question 78

Mexico allows duty-free imports of machinery and equipment for manufacturing as well as components for further processing and assembly, as long as at least 80
Percent of the plant's output is exported. This is called a _______________
Industry.

A) moonlighting
B) cross border
C) gray market
D) TRW
E) Maquiladora

Question 79

In _________________, store hours are limited and stores do not open on Sundays.

A) Germany
B) USA
C) Mexico
D) Brazil
E) UK

Question 80

Industrialized countries tend to have a lower distribution outlet density than the _______________________.

A) regional markets
B) global markets
C) world markets
D) submerging markets
E) emerging markets