Deck 3: Strategic and Financial Logistics

Question 1

___________ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes.

A)Marketing
B)Production
C)Finance
D)Logistics

Answer 1

Logistics

Question 2

When developing logistics strategy,an)___________ strategy refers to the management of logistics activities with a focus on costs.

A)market
B)process
C)differentiation
D)information

Answer 2

process

Question 3

Which of the following does not appear on the balance sheet?

A)assets
B)owners' equity
C)liabilities
D)net income

Answer 3

net income

Question 4

The ___________ shows revenues,expenses,and profit for a period of time.

A)balance sheet
B)current ratio
C)income statement
D)statement of cash flows

Question 5

In general,the ___________ measures the profitability of the products and/or services provided by a company.

A)balance sheet
B)Strategic Profit Model SPM)
C)Balanced Scorecard BSC)
D)income statement

Question 6

Which of the following is not a level at which strategy can be formulated?

A)corporate
B)business unit
C)functional
D)individual location

Question 7

___________ strategy is focused on determining the goals for the company,the types of businesses in which the company should compete,and the way the company will be managed.

A)Functional level
B)Business unit level
C)Divisional level
D)Corporate level

Question 8

A ___________ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.

A)focus
B)differentiation
C)value enhancement
D)market orientation

Question 9

An)___________ entails the functional units of an organization providing input into the other levels of strategy formulation.

A)supply chain
B)differentiation strategy
C)hierarchy of strategy
D)enterprise resource system

Question 10

Which of the following does not affect cash flows within an organization?

A)revenue growth
B)asset utilization
C)inventory
D)accounts receivable

Question 11

Depending on industry and product type,reverse logistics costs as a percent of revenue can range between ___________ and ___________ percent.

A)5;10
B)4;8
C)3;6
D)2;4

Question 12

Which of the following is not a potential type of logistics strategy decision?

A)investments in technology that support logistics activities
B)selection of appropriate transportation modes
C)deployment of inventory
D)product availability

Question 13

Which of the following is not one of the generic strategies that can be pursued by an organization,as identified by strategist Michael Porter?

A)value enhancement
B)differentiation
C)cost leadership
D)focus

Question 14

The balance sheet reflects the assets,liabilities,and ___________ at a given point in time.

A)costs of goods sold
B)net income
C)owners' equity
D)asset turnover

Question 15

An)___________ strategy allows retail customers to order products anywhere,any time,and on any device,while also allowing them to take delivery when and where they want.

A)value co-creation
B)omnichannel
C)hybrid logistics
D)information-centric

Question 16

Strategy at a ___________ level is primarily focused on the products and services provided to customers and on finding ways to develop and maintain a sustainable competitive advantage with these customers.

A)functional
B)business unit
C)divisional
D)corporate

Question 17

The ___________ reflects the assets,liabilities,and owners' equity at a given point in time.

A)Balanced Scorecard BSC)
B)balance sheet
C)income statement
D)Strategic Profit Model SPM)

Question 18

An)___________ strategy refers to management of logistical activities with a goal of achieving coordination and collaboration through the channel.

A)market
B)process
C)differentiation
D)information

Question 19

Which of the following represents the preferred hierarchy of strategy i.e. ,from the first strategy to be developed to the last to be developed)?

A)corporate $\rightarrow$ business unit $\rightarrow$ functional
B)functional $\rightarrow$ business unit $\rightarrow$ corporate
C)corporate $\rightarrow$ business unit $\rightarrow$ divisional
D)business unit $\rightarrow$ divisional $\rightarrow$ functional

Question 20

Which generic strategy concentrates an organization's effort on a narrowly defined market to achieve either a cost leadership or differentiation strategy?

A)hybrid
B)market orientation
C)tailored
D)focus

Question 21

The current ratio is calculated by dividing ___________ by ___________.

A)total current assets;total current liabilities
B)total current liabilities;total current assets
C)total assets;total liabilities
D)total liabilities;total assets

Question 22

With respect to net profit margin,the most relevant categories for logistics managers to consider are:

A)sales,costs of goods sold,and asset turnover.
B)accounts receivable,costs of goods sold,and total expenses.
C)sales,costs of goods sold,and total expenses.
D)inventory,accounts receivable,and total expenses.

Question 23

With respect to asset turnover,___________ is typically the most relevant logistics asset.

A)warehousing
B)inventory
C)transportation equipment
D)materials handling equipment

Question 24

Strategy can be formulated at a corporate level,a business unit level,and a functional level.

Question 25

Developing financial fluency is a critical skill for contemporary logistics managers.

Question 26

What provides the framework for conducting return on assets ROA)analysis by incorporating revenues and expenses to generate net profit margin,as well as inclusion of assets to measure asset turnover?

A)Balanced Scorecard BSC)
B)Strategic Profit Model SPM)
C)Balance Sheet
D)Supply Chain Operations Reference Model

Question 27

What is the formula for asset turnover?

A)total sales divided by total assets
B)net profit divided by total assets
C)return on assets divided by total assets
D)return on investment divided by return on net worth

Question 28

Logistics measurement systems have been traditionally designed to include information on how many types of performance?

A)two
B)three
C)four
D)five

Question 29

The ___________ is based on the belief that management should evaluate their business from four different perspectives.

A)Balanced Scorecard BSC)
B)Strategic Profit Model SPM)
C)Boston Consulting Group Matrix
D)Gross Margin Return on Inventory

Question 30

Strategist Michael Porter identified three generic strategies that can be pursued by an organization-namely,cost leadership,differentiation,and value enhancement.

Question 31

Logistics performance is important for achieving competitive advantage for many firms.

Question 32

Performance measurement in ___________ is used to identify design and operations options that provide benefits in terms of increased speed or reduced costs.

A)materials handling
B)warehousing
C)packaging
D)order management

Question 33

The Balanced Scorecard BSC)approach is based on the belief that management should evaluate their business from ___________ distinct perspectives.

A)two
B)three
C)four
D)five

Question 34

Which of the following is a common measure of organizational financial success?

A)Net profit margin
B)Income statement
C)Current ratio
D)Return on Investment ROI)

Question 35

Depending on the industry and product type,reverse logistics costs as a percentage of revenues can range between 2 and 4 percent.

Question 36

Return on assets ROA)equals:

A)current assets divided by total assets.
B)return on investment divided by return on net worth.
C)net profit margin times asset turnover.
D)total assets divided by costs of goods sold.

Question 37

Strategy at a business unit level is primarily focused on the types of businesses in which the company should compete and the way the company should be managed.

Question 38

The ___________ Act has implications for logistics managers in terms of internal controls,off balance sheet obligations,and timely reporting of material events.

A)Glass-Steagall
B)Financial Managers
C)Sarbanes-Oxley
D)Regulatory Accountability

Question 39

What is the formula for net profit margin?

A)Gross Profit minus Interest Expenses
B)Sales divided by Costs of Goods Sold
C)Total Sales divided by Total Assets
D)Net Profit divided by Sales

Question 40

Suppose that a logistics manager is able to eliminate some unnecessary inventory,which reduces the value of current assets as well as total asset value.What is the corresponding impact on inventory turnover and return on assets ROA)?

A)Both inventory turnover and ROA increase.
B)Inventory turnover increases and ROA decreases.
C)Inventory turnover decreases and ROA increases.
D)Both inventory turnover and ROA decrease.

Question 41

In terms of the statement of cash flows,the connections between logistics activities and cash flows occur primarily in the operating and financing areas.

Question 42

Marketing goals in areas such as product availability,desired customer service levels,and packaging design have limited influence on logistics decisions.

Question 43

An omnichannel strategy allows retail customers to order products anywhere,any time,and on any device,while also allowing them to take delivery when and where they want.

Question 44

The hierarchy of strategy entails the functional units of an organization providing input into the other levels of strategy formulation.

Question 45

The income statement details how an organization generates cash and where cash is used during a defined period of time.

Question 46

An understanding of financial terminology can help logisticians to manage logistical activities to improve their company's financial performance.

Question 47

Return on assets ROA)equals net profit margin times asset turnover.

Question 48

The income statement is the same thing as the balance sheet.

Question 49

In general,the income statement measures the profitability of the products and/or service provided by a company.

Question 50

Functional level strategies exist in marketing and production,but not in logistics.

Question 51

Three primary areas where the Sarbanes-Oxley Act SOX)has implications for logistics managers are internal controls,off balance sheet obligations,and timely reporting of material events.

Question 52

The balance sheet reflects the assets,liabilities,and costs of goods sold at a given point in time.

Question 53

A process strategy refers to management of logistics activities across business units with a focus on reducing complexity for customers.

Question 54

The current ratio is calculated by dividing total current liabilities by total current assets.

Question 55

Research indicates a positive benefit to aligning functional strategies,such as marketing or logistics,with the overall corporate strategy.

Question 56

A common measure of organizational financial success is return on investment ROI).

Question 57

A differentiation strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that customers perceive to be distinct from competitor offerings.

Question 58

Superior logistics service can have a positive influence on an organization's financial performance.

Question 59

Long-term assets have a useful life of more than two years.

Question 60

Owners' equity is the difference between what a company owns and what it owes at any particular point in time.

Question 61

When applying performance measures to logistics activities,determination of the key measures should be tailored to the individual organization and level of decision making.

Question 62

The cash-to-cash cycle looks at how long an organization's cash is tied up in receivables,payables,and inventory.

Question 63

The measures associated with the Balanced Scorecard BSC)can be at a strategic or tactical level.

Question 64

A decision to invest in an electronic data interchange system that would increase invoice accuracy should result in a lower amount of accounts receivable.

Question 65

Best in Class companies tend to use transportation scorecards less frequently than other companies.

Question 66

A reduction in inventory would increase inventory turnover,which means an increase in that organization's return on assets ROA).

Question 67

Operationally,net profit margin is net profit divided by cost of goods sold.

Question 68

The primary influence of logistics activities on sales would be through the improvement of customer service.

Question 69

The Balanced Scorecard BSC)is based on the belief that management should evaluate their business from five different perspectives.

Question 70

Asset turnover is calculated by dividing return on assets by total assets.

Question 71

According to the Balanced Scorecard BSC)approach,the financial perspective is considered the best indicator of whether or not logistics strategy is being properly implemented and executed.

Question 72

The Balanced Scorecard BSC)provides the framework for conducting return on assets ROA)analysis by incorporating revenues and expenses to generate net profit margin,as well as inclusion of assets to measure asset turnover.

Question 73

With respect to asset turnover,inventory is typically the most relevant logistics asset.

Question 74

With respect to net profit margin,the most relevant categories for logistics managers to consider are sales,costs of goods sold,and asset turnover.