Deck 7: Logistics

Question 1

A firm's finances are impacted significantly by the logistics function because logistics:

A) Is asset intense
B) Can impact on financial measures
C) Involves capital expenditures
D) Is responsible for inventory
E) All of the above

Answer 1

E

Question 2

Achieving cost efficiencies through maximizing freight and miles travelled is known as:

A) Economies of scale
B) Less-than-truckload
C) Place utility
D) Economies of distance
E) None of the above

Answer 2

D

Question 3

Managing the logistics function in a service industry requires ________ focus compared to a manufacturing industry :

A) Less
B) More
C) Equal

Answer 3

C

Question 4

__________ is responsible for all activities related to delivering products at the right place and right time.

A) Manufacturing
B) Marketing
C) Sourcing
D) Logistics
E) Finance

Question 5

Logistics addresses the __________ part of the supply chain:

A) Channels of distribution
B) Upstream and downstream
C) Upstream
D) Downstream
E) None of the above

Question 6

The logistics function significantly impacts operations in the area of :

A) Inventory positioning
B) Financial management
C) Operations scheduling
D) Distribution channels
E) a and c

Question 7

________ transportation might be best utilized for products with a short product life cycle and unpredictable demand:

A) Truck
B) Air
C) Water
D) Rail
E) None of the above

Question 8

The inbound side of logistics works primarily with which function:

A) Manufacturing
B) Sourcing
C) Operations
D) Marketing
E) Finance

Question 9

It is believed that the most important task of logistics is:

A) Storage
B) Material handling
C) Packaging
D) Inventory control
E) Transportation

Question 10

The outbound side of logistics works primarily with which function:

A) Manufacturing
B) Sourcing
C) Operations
D) Marketing
E) Finance

Question 11

Infrastructure investment is a primary reason why many firms _________ the logistics function.

A) Manage
B) Eliminate
C) Outsource
D) Insource
E) Control

Question 12

The ability of customers to easily return goods has become a(n) ___________ for most retail and Internet businesses:

A) Order fulfillment
B) Order qualifier
C) Challenge
D) Value add
E) b and c

Question 13

Factors in the marketplace that elevated logistics away from primarily a physical distribution focus include:

A) Growth of supply chain management
B) Global supply chains
C) Cost
D) Multiple distribution channels
E) a and b

Question 14

The _______ demand system is responsive to actual customer demand and is unpredictable:

A) Push
B) Pull
C) Stable
D) Innovative
E) Functional

Question 15

The outbound side of logistics focuses significantly on:

A) Operations
B) Sourcing
C) Order fulfillment
D) Demand planning
E) Total cost of ownership

Question 16

Logistics decisions related to ________ emphasize maintaining product integrity:

A) Marketing
B) Finance
C) Operations
D) Order fulfillment
E) Packaging

Question 17

Ensuring that logistics delivers products at the right quantities to customers relates to:

A) Customer service
B) Order fulfillment
C) Quantity utility
D) Place utility
E) Time utility

Question 18

__________ logistics is the process of moving products upstream from the customer to the manufacturer or supplier:

A) Military
B) Business
C) Event
D) Reverse
E) None of the above

Question 19

The most effective mode for transporting grain or gravel would likely be:

A) Truck
B) Air
C) Pipeline
D) Rail
E) None of the above

Question 20

The _______ demand system is based upon anticipated demand and is more predictable:

A) Push
B) Pull
C) Stable
D) Innovative
E) Functional

Question 21

The outbound side of the logistics function works with sourcing.

Question 22

Three types of logistics functions include military, business, and global.

Question 23

Logistics delivers the product to a customer location, so it does not have a close connection to marketing or customers.

Question 24

Transportation modes with high variable costs include:

A) Truck
B) Air
C) Water
D) Rail
E) b and d

Question 25

Logistics has evolved from being primarily inbound focused to reaching across the supply chain.

Question 26

Transportation modes with high fixed costs include:

A) Truck
B) Air
C) Water
D) Rail
E) b and d

Question 27

Reconfiguring batches of products into smaller quantities or local delivery is known as:

A) Break-bulk
B) Just-in-time
C) Cross-docking
D) Inventory management
E) All of the above

Question 28

Product packaging is a decision that must be made between logistics, marketing, and operations.

Question 29

A "pull" system of demand is more unpredictable and requires logistics to be responsive to customers.

Question 30

The inbound side of the logistics function works with marketing.

Question 31

Logistics focuses primarily on the "downstream" part of the supply chain.

Question 32

Functions of a warehouse or distribution center might include storage and:

A) Mixing inventory assortments
B) Demand planning
C) Repair or assembly of products
D) Supplier management
E) a and c

Question 33

Logistics provides supply chain management with time, place, and packaging utility.

Question 34

Logistics has a significant financial impact on an organization because of the amount of capital expenditures required.

Question 35

Significant investment in assets and infrastructure is a requirement of logistics.

Question 36

A significant area of impact that logistics has on operations is inventory management.

Question 37

Reverse logistics directly adds value to a company because returns are an "order qualifier" for customers.

Question 38

A "push" system of demand creates a more predictable environment the logistics function.

Question 39

Companies that strategically coordinate their customers' supply chains are known as:

A) Suppliers
B) 3PL providers
C) Distributors
D) Manufacturers
E) None of the above

Question 40

Logistics is the function responsible for getting products to the right place at the right time.

Question 41

Order fulfillment is a responsibility of logistics that involves working directly with a customer.

Question 42

Water and rail transportation modes are best utilized for shipping bulky, heavy shipments over long distances.

Question 43

Storage is typically viewed as the most important task of the logistics function.

Question 44

When seeking to maximize economies of distance, logistics should utilize less-than-truckload shipments.

Question 45

Briefly describe the reverse logistics process and its impact on a firm's supply chain.

Question 46

Shipping by air transportation mode would be most ideal for pharmaceutical or high-tech products.

Question 47

Briefly describe the four key areas of impact that logistics has on an organization.

Question 48

Storage decisions require a firm to balance costs and responsiveness to customers.

Question 49

In a cross-docking operation, products are never put into storage at the warehouse.

Question 50

Selecting the best mode of transportation for a product requires an understanding of the product being transported and customer service strategy.

Question 51

Select three distinct modes of transportation and describe the advantages and disadvantages of each mode, and provide an example of a product that would best fit each mode.

Question 52

Firms often outsource logistics functions to third-party logistics providers (3PL) because of their expertise and ability to provide cost savings to the firm.

Question 53

The concept of "place utility" is only focused on delivering products to the right location for the customer with little regard to cost.