Deck 4: Organizational and Mangerial Issues in Logistics

Question 1

____ refers to the integration of Six Sigma and the Lean approach.
a. ISO 9000
b. quality management
c. supply chain management
d. Lean Six Sigma

Answer 1

Lean Six Sigma

Question 2

In a ____ logistics structure, multiple logistics activities are combined into, and managed as, a single department.
a. hierchical
b. centralized
c. matrix
d. unified

Answer 2

unified

Question 3

A key attribute of network organizational design is a shift from ____ to ____.
a. function; process
b. centralization; decentralization
c. process; function
d. decentralization; centralization

Answer 3

function; process

Question 4

A ____ is a device used to monitor and control the actions taken by a driver and his/her vehicle.
a. tachograph
b. tachometer
c. speedometer
d. regulator

Question 5

A ____ organizational design attempts to create an organization that is responsive to the parameters of the contemporary business environment.
a. matrix
b. network
c. decentralized
d. unified

Question 6

____ can be defined as an organization's ability to address unexpected operational situations.
a. relevancy
b. flexibility
c. accommodation
d. responsiveness

Question 7

What is the most important purpose of warehouse work rules?
a. to control pilferage
b. to keep employees from engaging in unproductive and potentially destructive activities
c. to protect companies from union grievance procedures
d. to give managers control over warehouse workers

Question 8

____ refers to the amount of output divided by the amount of input.
a. control
b. monitoring
c. productivity
d. input-output analysis

Question 9

____ organizational design has its foundations in the command-and-control military operation, where decision-making and communication often follow a top-down flow.
a. centralized
b. unified
c. matrix
d. hierarchical

Question 10

____ and ____ are the two basic organizational structures associated with logistics.
a. centralized; hierarchical
b. fragmented; centralized
c. fragmented; unified
d. unified; hierarchical

Question 11

Productivity improvement efforts in logistics are often directed towards ____.
a. reducing input while increasing output
b. increasing output by a greater percentage than inputs are increased
c. reducing input while holding output constant
d. increasing output while holding input constant

Question 12

A primary advantage of ____ logistics is its relative efficiency, whereas a primary advantage of ____ logistics is its customer responsiveness.
a. unified; fragmented
b. unified; decentralized
c. centralized; decentralized
d. fragmented; centralized

Question 13

A ____ logistics organization means that logistics-related decisions are made separately at the divisional or product group level.
a. fragmented
b. decentralized
c. flexible
d. agile

Question 14

A ____ logistics organization implies that the corporation maintains a single logistics department that administers the related activities for the entire company from the home office.
a. centralized
b. hierarchical
c. unified
d. command-and-control

Question 15

____ refers to satisfying current and emerging customer needs.
a. responsiveness
b. flexibility
c. relevancy
d. accommodation

Question 16

Which of the following is an advantage of a centralized logistics organization?
a. less expensive than a decentralized organization
b. good opportunities for freight consolidation
c. can be responsive to customer service requirements
d. easier to manage than a decentralized organization

Question 17

____ is a set of generic standards used to document, implement, and demonstrate quality management and assurance systems.
a. benchmarking
b. Six Sigma
c. ISO 9000
d. ISO 14000

Question 18

One problem with a ____ logistics structure is that because logistics activities are scattered throughout a firm, they likely remain subservient to the objectives of the department in which they are housed.
a. fragmented
b. matrix
c. decentralized
d. hierarchicial

Question 19

In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.
a. unified
b. fragmented
c. decentralized
d. matrix

Question 20

Which of the following is an advantage of a decentralized logistics organization?
a. less expensive than a centralized organization
b. good opportunities for freight consolidation
c. better control over company data
d. can be responsive to customer service requirements

Question 21

From a logistics perspective, two of most important government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency and ____.
a. Department of Transportation
b. Federal Maritime Commission
c. Surface Transportation Board
d. Customs and Border Protection

Question 22

Transportation accounts for approximately ____ of all petroleum consumption in the United States.
a. three-quarters
b. two-thirds
c. one-half
d. one-third

Question 23

The organization of logistics activities within a firm depends on a number of factors, including the number and location of customers and an organization's size.

Question 24

What is a key difference between IS0 9000 and the Baldrige Quality Award?
a. only the Baldrige Award focuses on quality
b. the Baldrige Award is more externally focused than is ISO 9000
c. ISO 9000 is more externally focused than the Baldrige Award
d. ISO 9000 focuses more on lean practices than does the Baldrige Award

Question 25

Which of the following is not one of the three critical factors associated with the process of managing returned goods?
a. why products are returned
b. whether returned goods should be managed internally or outsourced to a third party
c. how to optimize reverse logistics
d. how many products are returned

Question 26

In a unified logistics structure, multiple logistics activities are combined into, and managed as, a single department.

Question 27

A centralized logistics organization generally results in better customer responsiveness than a decentralized logistics organization.

Question 28

With respect to the design of warehouses, one suggestion for energy savings is to make sure that dock doors are not placed on the ____ of a building.
a. west
b. east
c. north
d. south

Question 29

One problem with a fragmented logistics structure is because logistics activities are scattered throughout the firm, they likely remain subservient to the objectives of the departments in which they are housed.

Question 30

The Importer Security Filing (ISF) rule requires importers to file ____ pieces of information and carriers to file ____ pieces of information.
a. 10; 2
b. 5; 5
c. 2; 10
d. 4; 8

Question 31

The ____ has been established to identify uncertainty sources that can affect the risk exposure for logistics activities.
a. Logistics Uncertainty Index
b. Logistics Uncertainty Pyramid Model
c. Logistics Risk Consortium
d. Logistics Risk Factor

Question 32

____ complexity refers to the growing number nodes and the associated changes to the links in the logistics system.
a. process
b. range
c. network
d. system

Question 33

The ____ is responsible for the security of the U.S. transportation system.
a. Department of Commerce
b. Department of Transportation
c. Transportation Security Administration
d. U.S. State Department

Question 34

____ complexity centers on the implications associated with the increasing number of products that most companies continue to face in an effort to differentiate themselves with their customers.
a. process
b. range
c. network
d. system

Question 35

The two areas in logistics systems where most energy costs occur are ____ and ____.
a. warehousing; transportation
b. packaging; transportation
c. materials handling; packaging
d. warehousing; materials handling

Question 36

The concept of logistics social responsibility, or corporate social responsibility issues that relate directly to logistics, did not emerge until which decade?
a. 1970-1979
b. 1980-1989
c. 1990-1999
d. 2000-2009

Question 37

All of the following are reasons why logisticians should be concerned about theft, except:
a. stolen products may reappear to compete with other products
b. the time and costs associated with theft aren't always covered by insurance
c. some organizations will avoid locating their facilities in areas characterized by high crime rates
d. theft can lead to stockouts in the distribution channel
e. all of the above are reasons to be concerned about theft

Question 38

In a decentralized logistics structure, logistics activities are managed in multiple departments throughout an organization.

Question 39

What is the primary difference between pilferage and theft?
a. there is no difference between the two
b. pilferage involves a firm's own employees, while theft involves efforts from outsiders
c. theft refers to stolen merchandise worth more than $500
d. pilferage refers to stolen merchandise worth more than $500

Question 40

The materials stolen in ____ are usually for the employee's own use.
a. theft
b. demurrage
c. non-monetary compensation
d. pilferage

Question 41

Productivity efforts in logistics are often directed at increasing the amount of output while holding input constant.

Question 42

Terrorism can be viewed as an illegal use of or threat of force or violence made by a group or an individual against a person, a company, or somebody's property with a goal of menacing the target, often grounded in politics or ideology.

Question 43

As a general rule, the same types of supervision can be used for both warehouse workers and truck drivers.

Question 44

Responsiveness refers to satisfying current and emerging customer needs.

Question 45

From a logistics perspective, a network organizational design in logistics is manifested in terms of relevancy, responsiveness, and flexibility.

Question 46

Societal changes are relatively easy to accommodate in a hierarchical, or functional, organizational design.

Question 47

Wireless communications, global positioning systems, and graphical information systems offer tremendous opportunities to improve driver productivity. .

Question 48

The postponement of product assembly and labeling until exact customer requirements are known is an example of responsiveness.

Question 49

Excess capacity, or unused available space, can be unproductive because it may result in the purchase of additional equipment or space.

Question 50

The integration of Six Sigma with the Lean approach refers to Lean Six Sigma.

Question 51

The majority of Fortune 500 companies employ a chief logistics officer.

Question 52

A decentralized logistics organization means that logistics-related decisions are made at the divisional or product group level and often in different geographic areas.

Question 53

Logistics service quality relates to a firm's ability to deliver products, materials and services without defects or errors to both internal and external customers.

Question 54

ISO 9000 involves organizations benchmarking themselves against organizations from outside their particular industry.

Question 55

The odometer is a recording instrument that produces a continuous, timed record of the truck, its speed, and its engine speed.

Question 56

ISO 14000 is a set of generic standards used to document, implement, and demonstrate quality management and assurance systems.

Question 57

Productivity can be defined as the amount of output divided by the amount of input.

Question 58

Union work rules are often very specific in the sense that job descriptions spell out the responsibilities associated with a particular job.

Question 59

The Logistics Uncertainty Index has been established to identify uncertainty sources that can affect the risk exposure for logistics activities.

Question 60

A matrix organizational design can be very responsive to customer requirements.

Question 61

Warehousing and packaging are the two areas in logistics systems where the most energy costs occur.

Question 62

Reverse logistics can be four to five times more expensive than forward logistics.

Question 63

What longer-range steps can Fosdick take to reduce the distribution center's high rate of shrinkage?

Question 64

Logistics does not have an inherent connection to sustainability.

Question 65

What longer-range steps should Fosdick take to control the operations of the Providence distribution center?

Question 66

What longer-range steps should Fosdick take to improve the Providence distribution center's productivity?

Question 67

Companies that participate in the Customs Trade Partnership Against Terrorism are exempt from all import tariffs and all import quotas.

Question 68

How should Fosdick respond to the immediate situation?

Question 69

One of the most effective methods of protecting goods from theft or pilferage is to keep them moving through the system.

Question 70

What controls, of the types discussed in this chapter, might have been used by Red Spot Markets to reduce or eliminate the problems discussed in the case?

Question 71

Network complexity refers to the growing number of nodes and the associated changes to the links in logistics systems.

Question 72

The Transportation Worker Identification Credential (TWIC) uses biometric data to exclude certain workers from secure areas at ports and terminals.

Question 73

Customs and Border Protection is responsible for securing U.S. borders to protect the American people and the U.S. economy.

Question 74

From a logistical perspective, the Transportation Security Administration and the Department of Transportation are two of the most important government entities that were incorporated into the Department of Homeland Security.

Question 75

Potential logistics social responsibility dimensions include the environment, diversity, safety, and philanthropy, among others.

Question 76

Experts recommend that the best pilferage policy should be based on zero tolerance.

Question 77

The Importer Security Filing (ISF) rule requires carriers to file 10 pieces of information and importers to file two pieces of information.

Question 78

System complexity centers on the implications associated with the increasing number of products that most companies continue to face in an effort to differentiate themselves with their customers.

Question 79

Roof color is often overlooked as an area for warehousing energy control.

Question 80

Transportation accounts for about one-half of all petroleum consumption in the United States.