Question 1

The finance department tends to measure inventory in terms of units whereas logistics tends to measure inventory in terms of its cost or value.

Accepted Answer

A) True 
 B)False

Question 2

The purpose of logistics is to maximize customer service.

Accepted Answer

A) True 
 B)False

Question 3

Landed costs refer to the price of a product at its source.

Accepted Answer

A) True 
 B)False

Question 4

Enticing customers with the promise of a low-priced product,only to find that it is unavailable,but having a higher-priced substitute product readily available refers to ___________.

Accepted Answer

A) loss-leader marketing 
B) unfair trade practices 
C) bait-and-switch tactics 
D) price lining

Question 5

Logistics clearly contributes to time and form utility.

Accepted Answer

A) True 
 B)False

Question 6

The four basic components of the marketing mix include all of the following except:

Accepted Answer

A) price. 
B) production. 
C) place. 
D) promotion.

Question 7

Logistics is only concerned with forward flows-that is,those directed toward the point of consumption.

Accepted Answer

A) True 
 B)False

Question 8

The costliest logistics activity in many firms is ___________.

Accepted Answer

A) industrial packaging 
B) transportation management 
C) order management 
D) warehousing management

Question 9

The current definition of logistics,as promulgated by the Council of Supply Chain Management Professionals (CSCMP),suggests that logistics is part of supply chain management.

Accepted Answer

A) True 
 B)False

Question 10

Interfunctional logistics attempts to coordinate materials management and physical distribution in a cost-efficient manner that supports an organization's customer service objectives.

Accepted Answer

A) True 
 B)False

Question 11

___________ refers to breaking a homogeneous supply into smaller lots.

Accepted Answer

A) Sorting out 
B) Allocating 
C) Accumulating 
D) Assorting

Question 12

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.

Accepted Answer

A) systems 
B) supply chain 
C) physical distribution 
D) materials management

Question 13

A cost trade-off is a situation where:

Accepted Answer

A) all costs react according to their individual degrees of inflation in the economy. 
B) all costs are reflected as a percentage variation from standard costs. 
C) some costs increase and some costs decrease. 
D) some costs are eliminated by efficient management controls.

Question 14

Landed costs refer to:

Accepted Answer

A) the costs of a product shipped via surface transport. 
B) the costs of a product that is quoted cash on delivery (CO
D) . 
C) the costs of a prepaid shipment. 
D) a price that includes both the cost of the product plus transportation to the buyer.

Question 15

Physical distribution is synonymous with materials management.

Accepted Answer

A) True 
 B)False

Question 16

The ownership channel consists of all parties except:

Accepted Answer

A) customers. 
B) manufacturers. 
C) wholesalers. 
D) retailers.

Question 17

The movement and storage of materials into a firm refers to ___________.

Accepted Answer

A) physical distribution 
B) materials management 
C) supply chain management 
D) materials handling

Question 18

Superior logistics is an essential component of corporate strategies for many big-box retailers.

Accepted Answer

A) True 
 B)False

Question 19

___________ refers to the removal of intermediaries between producer and consumer.

Accepted Answer

A) Direct channel 
B) Market demassification 
C) Consolidation 
D) Disintermediation

Question 20

Humanitarian logistics represents an emerging application of logistics to not-for-profit organizations.

Accepted Answer

A) True 
 B)False

Exam 1: An Overview of Logistics

The finance department tends to measure inventory in terms of units whereas logistics tends to measure inventory in terms of its cost or value.

The purpose of logistics is to maximize customer service.

Landed costs refer to the price of a product at its source.

Enticing customers with the promise of a low-priced product,only to find that it is unavailable,but having a higher-priced substitute product readily available refers to ___________.

Logistics clearly contributes to time and form utility.

The four basic components of the marketing mix include all of the following except:

Logistics is only concerned with forward flows-that is,those directed toward the point of consumption.

The costliest logistics activity in many firms is ___________.

The current definition of logistics,as promulgated by the Council of Supply Chain Management Professionals (CSCMP),suggests that logistics is part of supply chain management.

Interfunctional logistics attempts to coordinate materials management and physical distribution in a cost-efficient manner that supports an organization's customer service objectives.

___________ refers to breaking a homogeneous supply into smaller lots.

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.

A cost trade-off is a situation where:

Landed costs refer to:

Physical distribution is synonymous with materials management.

The ownership channel consists of all parties except:

The movement and storage of materials into a firm refers to ___________.

Superior logistics is an essential component of corporate strategies for many big-box retailers.

___________ refers to the removal of intermediaries between producer and consumer.

Humanitarian logistics represents an emerging application of logistics to not-for-profit organizations.