Deck 2: Role of Logistics in Supply Chains

Question 1

Marketers have begun to recognize the strategic value of place in the marketing mix,as well as the benefits resulting from high-quality logistical services.As a result,which has been recognized as the interface activity between marketing and logistics?

A) product
B) promotion
C) price
D) customer service

Answer 1

D

Question 2

Materials handling is concerned with

A) inventory levels.
B) breaking bulk.
C) scheduling trade-offs.
D) short distance movement.

Answer 2

D

Question 3

Which is created when a product or service is at a point when demanded by customers?

A) form utility
B) place utility
C) time utility
D) possession utility

Answer 3

B

Question 4

Ensuring the availability of the right product,in the right quantity,and the right condition,at the right place,at the right time,for the right customer at the right cost,is which definition of logistics?

A) Seven Rs
B) Council of Logistics Management
C) Society of Logistic Engineers
D) supply chain logistics

Question 5

The utility that is created by moving goods from surplus points to points where demand exists is referred to as:

A) form
B) place
C) time
D) possession

Question 6

The utility created through the basic marketing activities is known as place utility.

Question 7

In a logistics system,warehousing should be optimized at the expense of related logistics activities,such as transportation and procurement.

Question 8

To hold down distribution cost,the lowest cost carrier should always be used.

Question 9

The value that is added to a good through a manufacturing,production,or assembly process is:

A) form utility
B) place utility
C) time utility
D) possession utility

Question 10

Time utility depends on

A) when the carrier picks up the shipment.
B) transportation companies delivering on time.
C) proper forecasting.
D) having the product available when the user wants it.

Question 11

Transportation is the physical movement or flow of goods.

Question 12

The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.

Question 13

The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.

Question 14

Logistics is the process of anticipating customer needs and wants; acquiring the capital,materials,people,technologies,and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner.This is a

A) definition from an inventory perspective.
B) general definition.
C) definition offered by the Society of Logistics Engineers.
D) a definition provided by the Council of Logistics Management.

Question 15

A product's form utility is created when value is added to the product through a manufacturing,production or assembly process.However,logistics activity can provide form utility also.Which is an example of the creation of form utility by a logistics activity?

A) when lumber is cut and made into a chair
B) when a firm's finance manager approves customer purchases on a credit basis
C) when bulk computer disks in different colors are packed in three-color assortments for sale to computer users
D) the breaking bulk and repackaging at a distribution center

Question 16

During the 1990s and 2000s,logistics costs as a percentage of gross national product declined.

Question 17

All four subdivisions of logistics have some common characteristics.Which of the below does not belong in the list:

A) transportation
B) marketing
C) scheduling
D) forecasting

Question 18

What is often the largest component of logistics costs?

A) inventory costs
B) transportation costs
C) shipper-related costs
D) administrative costs

Question 19

Logistics systems having a very heavy inbound flow and a very simple outbound flow are reverse systems.

Question 20

Acme Battery distributes its batteries to warehouses,where they are stored until ordered by a retailer.The warehouses are located close by the retail markets served.This is the logistics channel approach to logistics.

Question 21

The logistics definitions discussed indicate 14 activities for which the logistics manager might be responsible.Name at least eight and briefly discuss any two in detail.

Question 22

Water Cruisers is located in Jacksonville,Florida,and makes small yachts and luxury pontoon boats for customers on the East coast of the United States.Each boat requires thousands of parts purchased from over 1,000 vendors.A number of boats are in production at any one time,so a large number of parts constantly arrive and are stored.Once a boat is finished,it is sailed up the coast to a convenient port for customer delivery.Which type of logistics system does Water Cruisers use?

A) balanced system
B) heavy inbound
C) heavy outbound
D) reverse system

Question 23

What is the definition of logistics which the authors choose and what group had formulated it?

Question 24

What activity is described as the movement of goods into a warehouse,the placement of goods in a warehouse,and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse?

A) materials handling
B) physical distribution
C) business logistics
D) order fulfillment

Question 25

There are five principal types of economic utility that add value to a product or service.Name four of the five and pick one to discuss in more detail.

Question 26

A number of product-related factors affect the cost and importance of logistics.Which is not one of these factors?

A) value
B) density
C) stock keeping units
D) risk of damage

Question 27

What is the primary challenge of logistics?

Question 28

Another dimension of logistics is the micro perspective which examines the relationships between logistics and other functional areas in an organization.What are these other functions? Select one and discuss how it interacts with logistics.

Question 29

Celebrated Products is introducing a new line of celebrity signature sunglasses.The sales manager wants a media blitz to make customers aware of the line and create early sales typical of a "pull" pattern.Which will be a likely result of the marketing manager's plan?

A) a stable demand pattern
B) emergency shipments
C) an erratic demand pattern
D) strain on the logistics system

Question 30

What are established spatial points where goods stop for storage or processing?

A) nodes
B) links
C) cost centers
D) fulfillment centers

Question 31

The text mentions four subdivisions of logistics.Pick one,define and discuss.

Question 32

A balanced system is

A) one where all four management systems are equal
B) logistics expenses are equal to cost of goods sold
C) another name for supply chain management
D) inbound and outbound flows are nearly equal

Question 33

A(n)____ relationship exists between the cost of lost sales and inventory cost.

A) reverse
B) proportional
C) inverse
D) non linear

Question 34

A ____ analysis examines a logistics system over a long time period or range of output.

A) cost center analysis
B) dynamic
C) link node analysis
D) least cost analysis

Question 35

There are a number of product-related factors that can affect the cost and importance of logistics.Identify the factors,and pick one to discuss further.

Question 36

What is ROA? Discuss how it can impact logistics.

Question 37

What are the 4 "PHs"? Select one,and discuss how it affects logistics.

Question 38

When a specific point in time,or level of production,is chosen and costs are developed for the various logistics cost centers,it is called

A) least cost analysis.
B) short run analysis.
C) cost center analysis.
D) link node analysis.

Question 39

Spatial relationship is extremely significant to logistics.Discuss why this is true.