Deck 11: Logistics

Question 1

Logistics provides place and form utility.

Answer 1

False

Question 2

Logistics cost as a percentage of GDP is higher for the United States as compared to China.

Answer 2

False

Question 3

More economically advanced countries spend ________ as a percentage of GDP on logistics than less economically advanced countries.

A)more
B)less
C)about the same
D)None of the above

Answer 3

B

Question 4

The ability of companies to deliver their product or services to a market affordably is known as ________.

Question 5

More economically advanced countries spend less as a percentage of GDP on logistics than less economically advanced countries.

Question 6

Logistics provides which of the following utilities?

A)Form
B)Place
C)Time
D)Both A and B above
E)Both B and C above

Question 7

Which of the following is not part of the logistics function?

A)Transportation of goods
B)Storage of goods
C)Customer selection
D)Managing customer returns

Question 8

The transportation and storage of goods and materials is called ________.

Question 9

More economically advanced countries spend ________ as a percentage of GDP on logistics than less economically advanced countries.

Question 10

In which of the following areas does logistics not contribute a direct competitive advantage?

A)Cost
B)Product access
C)Product design
D)Sustainability

Question 11

Discuss some of the coming changes in Logistics.

Question 12

Logistics cost as a percentage of GDP for the United States is approximately ________.

Question 13

Logistics provides ________ and ________ utility.

Question 14

Discuss the Last Mile Supply Chain Problem faced by e-commerce companies like Amazon.

Question 15

Logistics deals with planning,implementing and controlling the flow and storage of goods,services and related information.

Question 16

Trading the cost of improving service with service levels is known as a

A)cost-to-cost trade-off.
B)modal trade-off.
C)cost-to-service trade-off.
D)None of the above

Question 17

The total cost to get the product to the consumer is known as ________.

Question 18

A higher logistics cost as a percentage of GDP for a country makes that country more competitive globally.

Question 19

Trading speed of delivery with saving fuel is known as a

A)cost-to-cost trade-off.
B)modal trade-off.
C)cost-to-service trade-off.
D)None of the above

Question 20

Logistics is concerned with only the transportation of goods across the supply chain.

Question 21

A trucking company is exploring the cost-to-cost trade-offs given the following information:
Fuel cost (diesel): $3.5 per gallon
Distance to be traveled: 700 miles
Mileage at 70 mph: 5 miles per gallon
Mileage at 60 mph: 6 miles per gallon
Cost of delay if delivery commitment is missed: $75.
What speed should the trucks use?

Question 22

From a process perspective,which one of the following is not a function that logisticians manage?

A)Product design
B)Demand processing
C)Inventory management
D)Warehousing

Question 23

Demand created as managers conceptualize forecasts and guess at future demand is known as

A)independent demand.
B)derived demand.
C)dependent demand.
D)parent demand.

Question 24

The mode of transportation (among the non-pipeline carriers)which is the cheapest per tonnage is

A)trucks.
B)rail.
C)air.
D)maritime shipping.

Question 25

Trading speed of delivery with saving fuel is known as a cost-to-service trade-off.

Question 26

Which of the following is true about derived demand?

A)It is actual customer demand
B)It only exists on paper
C)It helps in reducing inventories
D)It takes actual customer demand into consideration

Question 27

A firm decides to use a less expensive mode of transportation like train,even though it is slower.This is an example of a

A)cost-to-cost trade-off.
B)modal trade-off.
C)cost-to-service trade-off.
D)None of the above

Question 28

Trading speed of delivery with saving fuel is known as a ________ trade-off.

Question 29

The threshold service level is the maximum level of service beyond which customer satisfaction starts decreasing.

Question 30

A firm provides a directive to all their truck drivers to not exceed a speed of 60 miles per hour (mph),even if a higher speed is permitted by law.Although this would probably mean that delivery commitments are missed,it also results in an optimal use of fuel.This is an example of a

A)cost-to-cost trade-off.
B)modal trade-off.
C)cost-to-service trade-off.
D)None of the above

Question 31

As the minimum required order quantity increases without any change in the procurement price,landed costs will decrease.

Question 32

Which of the following is not a factor in computation of landed costs?

A)Transportation costs
B)Ordering costs
C)Final product selling price
D)Required order quantity

Question 33

If transportation prices continue to rise and if inventory costs continue to fall,holding the minimal inventories prescribed by lean manufacturing may become more expensive.

Question 34

Which of the following is usually the second largest cost,behind the cost of goods sold that a company will incur?

A)Transportation
B)Warehousing
C)Inventory
D)Customer service

Question 35

Trading the cost of improving service with service levels is known as a ________ trade-off.

Question 36

The mode of transportation within the United States that carries the most weight in terms of tons is

A)trucks.
B)rail.
C)air.
D)maritime shipping.

Question 37

Trading the cost of improving service with service levels is known as a cost-to-cost trade-off.

Question 38

The standard of service performance in terms of inventory availability and capability provided at a reasonable cost is known as ________.

Question 39

A firm decides to target a 95% service level,realizing that this will require significantly less inventory as compared to a 99% service level.This is an example of a

A)cost-to-cost trade-off.
B)modal trade-off.
C)cost-to-service trade-off.
D)None of the above

Question 40

If transportation prices decrease and if inventory costs increase,holding the minimal inventories prescribed by lean manufacturing may become more expensive.

Question 41

The mode of transportation which has the highest fixed cost is

A)trucks.
B)rail.
C)air.
D)maritime shipping.

Question 42

A method used to reduce the number of trucks or other carriers needed for shipping when networks of cities are involved in the delivery is known as

A)consolidation warehousing.
B)cross docking.
C)break bulk facilities.
D)hub and spoke system.

Question 43

At present,a firm has 75,000 units of safety stock located in 25 facilities.They are considering reducing the number of warehouses and consolidating to 16 facilities.What will be the new safety stock inventory as a result?

A)45,000 units
B)60,000 units
C)75,000 units
D)100,000 units

Question 44

A warehousing approach whereby large shipments come in and are broken down into smaller shipments to several locations is known as

A)consolidation warehousing.
B)cross docking.
C)break bulk facilities.
D)hub and spoke system.

Question 45

Best Tools wants to locate a warehouse to serve their major distributors that are shown in the table below.What are the x and y coordinates for the location that will minimize the transportation costs for their distribution network?

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

Question 46

Taking small shipments and combining them into more economical larger shipments is known as

A)consolidation warehousing.
B)cross docking.
C)break bulk facilities.
D)hub and spoke system.

Question 47

The trade bloc consisting of the United States,Mexico and Canada is known as

A)ASEAN.
B)NAFTA.
C)COSMO.
D)SAARC.

Question 48

The mode of transportation which has the highest fuel economy as measured by number of ton-miles per gallon of fuel is

A)trucks.
B)rail.
C)air.
D)maritime shipping.

Question 49

The mode of transportation which has the highest fixed cost is truck.

Question 50

A Frito-Lay's distributor receives a large shipment of product from a centralized production facility and the product is then sorted and loaded on a number of delivery vans for delivery to several stores,thus reducing transportation costs through economical shipping.Such a technique is known as

A)consolidation warehousing.
B)cross docking.
C)break bulk facilities.
D)hub and spoke system.

Question 51

At present,a firm has 75,000 units of safety stock located in 25 facilities.They are considering reducing the number of warehouses and consolidating to 16 facilities.What will be the new amount of safety stock inventory if each unit in inventory is valued at $2?

A)$45,000
B)$60,000
C)$75,000
D)$120,000

Question 52

The mode of transportation which has the lowest variable cost is

A)trucks.
B)rail.
C)air.
D)pipeline.

Question 53

The mode of transportation which has the highest carbon footprint as measured by grams per metric ton/km is

A)trucks.
B)rail.
C)air.
D)maritime shipping.

Question 54

A large load of KitchenAid blenders is shipped to a large regional warehouse of a major retailer.The received shipment pallets are broken down,so that two blenders may be shipped to one store,another 3 shipped to a second store and so on.Such a technique is known as

A)consolidation warehousing.
B)cross docking.
C)break bulk facilities.
D)hub and spoke system.

Question 55

Demand created as managers conceptualize forecasts and guess at future demand is known as dependent demand.

Question 56

Places where large shipments of the same items are broken out and separated to go to separate locations are known as

A)consolidation warehousing.
B)cross docking.
C)break bulk facilities.
D)hub and spoke system.

Question 57

Logistics managers are responsible for overseeing only finished goods inventory.

Question 58

Transportation is usually the largest cost,even higher than the cost of goods sold that a company will incur.

Question 59

Derived demand is actual customer demand that logisticians should consider for fulfillment.

Question 60

The mode of transportation which is the most versatile in terms of shipping products door to door is

A)trucks.
B)rail.
C)air.
D)maritime shipping.

Question 61

The mode of transportation which has the highest fixed cost is ________.

Question 62

A company which provides all or part of the logistics function for another company is known as ________.

Question 63

The mode of transportation which has the lowest variable cost is pipeline.

Question 64

A warehousing approach whereby large shipments come in and are broken down into smaller shipments to several locations is known as ________.

Question 65

Functions such as purchasing and production that are not traditional logistics functions are known as ________.

Question 66

A calculation for computing the safety stock inventory in warehouses,given the number of warehouses,is known as the ________.

Question 67

An individual or company that facilitates moving product from producer to final destination often across international borders is known as ________.

Question 68

An optimization technique for allocating shipments from sources to destinations is known as the ________.

Question 69

The mode of transportation which has the lowest variable cost is ________.

Question 70

The mode of transportation which has the highest fuel economy as measured by number of ton-miles per gallon of fuel is ________.

Question 71

________ is usually the second largest cost,behind the cost of goods sold that a company will incur.

Question 72

The trade bloc consisting of the United States,Mexico and Canada is known as ________.

Question 73

Taking small shipments and combining them into more economical larger shipments is known as ________.

Question 74

The mode of transportation which is the most versatile in terms of shipping products door to door is ________.

Question 75

The mode of transportation within the United States that carries the most weight in terms of tons is ________.

Question 76

A facility for storing inventory is known as a ________.

Question 77

Demand created as managers conceptualize forecasts and guess at future demand is known as ________.

Question 78

The mode of transportation which is the cheapest per tonnage is rail.

Question 79

A method to identify a good location for the placement of a new facility which reduces transportation costs is known as the ________.

Question 80

The mode of transportation (among the non-pipeline carriers)which is the cheapest per tonnage is ________.