Deck 15: Global Logistics and Distribution

Question 1

_____ transportation refers to the seamless transfer of goods from one mode of transportation (such as an aircraft) to another (such as a ship) and vice versa without the hassle of unpacking and repackaging of goods to suit the dimensions of the mode of transportation being used.

A)Dual shipping
B)Bi-modal
C)Intercontinental
D)Dual-basic
E)Intermodal

Answer 1

E

Question 2

The most important factors in determining an optimal mode of transportation for foreign markets are the value-to-volume ratio, perishability of the product, and:

A)the cost of transportation.
B)intermodal ratio.
C)total cost ratio to inventory and warehousing expense.
D)the cost of insurance.
E)the distance to speed relationship.

Answer 2

A

Question 3

_____ refers to the movement of the firm's finished products to its customers, consisting of transportation, warehousing, inventory, customer service/order entry, and admission.

A)Physical distribution
B)Purchasing
C)Intermodal transportation
D)Global logistics
E)Materials management

Answer 3

A

Question 4

The global logistics process begins with which of the following?

A)materials management
B)processing and assembly
C)physical distribution
D)raw materials, components, and supplies
E)finished products ready for shipment

Question 5

All of the following are activities that occur during physical distribution except:

A)transportation
B)warehousing
C)inventory
D)order entry
E)promotion and advertising

Question 6

_____ refers to the means of keeping continuous tabs on the exact location of the goods being shipped in the logistics chain.

A)Data processing
B)Messaging service
C)Tracking technology
D)Computerized messaging
E)Hybrid technology

Question 7

_____ refers to the inflow of raw materials, parts, and supplies in and through the firm.

A)Global logistics
B)Physical distribution
C)Materials management
D)Purchasing processes
E)Global distribution

Question 8

As firms start operating on a global basis, _____ need to manage the shipping of raw materials, components, and supplies among various manufacturing sites at the most economical and reliable rates.

A)human resource managers
B)logistics managers
C)operations managers
D)outsourcing managers
E)information technology managers

Question 9

Global logistics encompasses:

A)advertising and personal selling.
B)purchasing and manufacturing.
C)materials management and trucking.
D)materials management and physical distribution.
E)pricing and manufacturing.

Question 10

In 2017, the total logistics cost represented about 7.7 percent of the GDP in the _____.

A)U.S.
B)Ireland
C)Portugal
D)Belgium
E)Romania

Question 11

According to the textbook, which of the following famous business thinkers characterized logistics as being "the darkest continent of business?"

A)Philip Kotler
B)Stephen Covey
C)Michaele Porter
D)Peter Drucker
E)Tom Peters

Question 12

With respect to distribution costs, a geographically large country such as the United States will normally incur more _____ costs than in smaller countries.

A)transportation, insurance, and inventory
B)warehousing, customer service/order entry, and general administration
C)transportation and inventory
D)materials handling
E)warehousing and transportation

Question 13

With electronic tracking technology, shippers are able to quickly react to any disruption in the shipments because the shipper knows where exactly the goods are in real time and:

A)labor can be adjusted accordingly.
B)the alternative means can be quickly mobilized should problems develop.
C)costs can always be evaluated.
D)losses are rare.
E)customer service is now at a premium.

Question 14

When raw materials, components, and supplies are converted or manipulated for processing and assembly by the firm, the process is monitored and controlled by the _____ function of the firm.

A)physical distribution
B)purchasing
C)intermodal transportation
D)materials handling
E)materials management

Question 15

_____ is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost.

A)Global goods flow
B)Global distribution
C)Global logistics
D)Global wholesaling
E)Global shipping

Question 16

In global logistics and distribution, Coca-Cola's success relies largely on its global distribution arm, _____, the world's largest bottler group.

A)Coca-Cola Enterprises
B)Coca-Cola Network
C)Coca-Cola Web
D)Coca-Cola Team
E)Coca-Cola Trucking Co.

Question 17

The bulk of international trade is handled by _____.

A)ocean shipping
B)air transport
C)trucking services
D)railroads
E)inland waterways

Question 18

All of the following factors contributed significantly to the increased complexity and cost of global logistics as compared to domestic logistics except:

A)exchange rate fluctuation.
B)distance.
C)domestic intermediaries.
D)foreign intermediaries.
E)negotiations with government officials and distributors.

Question 19

In the mid-1990s, the U.S.dollar depreciated while the Japanese yen soared in value.Honda found that it was much cheaper to ship its Accord models to Europe from its Ohio plant than from Japan.This could most accurately be classed as a move made because of problems or opportunities with:

A)distance.
B)logistics.
C)exchange rate fluctuations.
D)foreign intermediaries.
E)domestic intermediaries.

Question 20

Which of the following factors contribute significantly to the increased complexity and cost of global logistics as compared to domestic logistics?

A)domestic intermediaries
B)service
C)purchasing
D)exchange rate fluctuation
E)materials handling

Question 21

Multinational corporations can use _____ as a strategic tool in dealing with currency fluctuations and as a hedge against inflation.

A)buying power
B)just-in-time management
C)just-in-time delivery
D)purchasing management
E)inventory

Question 22

_____ affects the company's decision about where to source and market, based on lower cost of labor and other resources in one country relative to another.

A)Relative advantage
B)Absolute cost advantage
C)Comparative advantage
D)Competitive advantage
E)Sourcing advantage

Question 23

_____ influences decisions regarding what activities and technologies a company should concentrate its investment and managerial resources in (in relation to its competitors in the industry).

A)Relative advantage
B)Absolute cost advantage
C)Comparative advantage
D)Competitive advantage
E)Sourcing advantage

Question 24

_____ inventories also provide a hedge against inflation because the value of the goods/parts held in inventory remains the same compared to the buying power of local currency.

A)High-tech
B)Low-tech
C)High
D)Low
E)None of the above

Question 25

By increasing _____ before imminent depreciation of a currency instead of holding cash, the firm may reduce its exposure to currency depreciation losses.

A)buying power
B)plant and equipment
C)trucks
D)materials handling equipment (such as forklifts)
E)inventory

Question 26

_____ refers to coordinating production and distribution across geographic boundaries.

A)Rationalization
B)Utility management
C)Physical distribution management
D)Logistical integration
E)Logistic modeling

Question 27

If a company wished to ship semiconductor chips abroad, they would probably choose:

A)ocean shipping
B)air freight
C)truck
D)rail
E)barge

Question 28

The _____ of the product refers to the quality degradation over time and/or product obsolescence along the product life cycle.

A)perishability
B)cost of transportation
C)cost of insurance
D)value-to-volume ratio
E)intermodal ratio

Question 29

The primary forms of ocean shipping include all of the following except:

A)liner service
B)bulk shipping
C)tanker shipping
D)irregular runs
E)FedEx surface

Question 30

The _____ is determined by how much value is added to the materials used in the product.

A)perishability of the product
B)cost of transportation
C)the cost of insurance
D)the value-to-volume ratio
E)the intermodal ratio

Question 31

Information technology, electronic data interchange, and intermodal transportation have made _____ a reality in physical distribution.

A)low cost transportation
B)a "no returns" policy
C)ultimate distribution service
D)just-in-time delivery
E)accurate purchasing management

Question 32

Sourcing strategy includes two basic choices.One of these is insourcing and the other is _____.

A)importing
B)outsourcing
C)in-sourcing
D)matrix manipulation
E)horizontal integration

Question 33

As a type of in sourcing, _____ is when a company procures major components in-house by producing them domestically.

A)domestic in-house sourcing
B)offshore subsidiary sourcing
C)domestic purchasing arrangement
D)offshore outsourcing (offshore sourcing)
E)export management company

Question 34

The trend toward third-party logistics is a result of the _____ and the _____.

A)internet, enterprise resource planning
B)internet, technology simulations
C)internet, customer relationship management
D)internet, intranet
E)none of the above

Question 35

If a product were to be categorized as being heavy, bulky, and nonperishable, probably the best form of global shipping would be:

A)ocean shipping
B)air freight
C)truck
D)rail
E)barge

Question 36

The traditional logistics strategy involves _____ based on forecasting and inventory speculation.

A)supply and demand
B)anticipatory demand management
C)inventory volume equations
D)purchasing ratios
E)microeconomic principles

Question 37

_____ means reducing resources to achieve more efficient and cost-effective operations.

A)Rationalization
B)Utility management
C)Physical distribution management
D)Logistic integration
E)Logistic modeling

Question 38

The internet and intranet facilitate _____.

A)parallel delivery.
B)cheap delivery.
C)expensive delivery.
D)forward-time delivery.
E)on-time delivery.

Question 39

Another profound change in the last decade is the proliferation of _____.

A)IT warehouses
B)e-commerce
C)information technology
D)global shipping traffic
E)global air traffic

Question 40

All of the following are important factors in determining an optimal mode of transportation to be used in foreign markets except:

A)the cost of transportation.
B)the value-to-volume ratio.
C)the perishability of the product.
D)obsolescence along the product life cycle.
E)the cost of insurance.

Question 41

A _____ is an area that is located within a nation, but is considered outside of the customs territory of the nation.

A)border zone
B)red zone district
C)warehouse district
D)dock facility
E)free trade zone

Question 42

Industrialized countries tend to have a lower distribution outlet density than the _____.

A)regional markets
B)global markets
C)world markets
D)submerging markets
E)emerging markets

Question 43

On-time retail information management carries two distinct advantages which are:

A)reduced inventory and accounting information at the retail level.
B)reduced inventory and market information at the retail level.
C)reduced inventory and manufacturing information at the retail level.
D)reduced inventory and production information at the retail level.
E)reduced inventory and outsourcing information at the retail level.

Question 44

In which of the following countries are store brands marginal players because of loyalty to national or manufacturer brands?

A)United States.
B)United Kingdom.
C)Japan.
D)France.
E)Canada.

Question 45

_____ is the fastest growing internet market in Asia.

A)China
B)India
C)Indonesia
D)Hong Kong
E)South Korea

Question 46

If a retail firm sells a product under its own store name it is called a:

A)unique brand.
B)vertical brand.
C)horizontal brand.
D)store brand or private label.
E)hybrid label.

Question 47

Typical B2B procurement systems rely on _____ that emphasize the lowest bids on a global basis.

A)promotions
B)selling
C)manufacturing
D)auctions
E)production

Question 48

When Heinz sells its soup products to grocery store chains and allows them to put their own store names on the product, the product is being sold as a:

A)domestic brand.
B)national brand.
C)manufacturers brand.
D)store brand or private label.
E)service label.

Question 49

As a type of outsourcing, _____ is when a company buys major components from independent suppliers overseas.

A)domestic in-house sourcing
B)offshore subsidiary sourcing
C)a domestic purchasing arrangement
D)offshore outsourcing (offshore sourcing)
E)export management company

Question 50

As a type of intra-firm sourcing, _____ is when a company procures major components from its foreign subsidiary.

A)domestic in-house sourcing
B)offshore insourcing
C)domestic purchasing arrangement
D)offshore outsourcing (offshore sourcing)
E)export management company

Question 51

At the macro-level, benefits of using a free trade zone include all of the following except:

A)increased investment and employment.
B)more revenue through increased local taxes.
C)obtaining a beachhead in a foreign market without being in the mainstream distribution process.
D)the ability to reassemble large shipments into different groupings.
E)no duties on labor.

Question 52

Which of the following should a company not do with a foreign intermediaries?

A)treat companies as short-term partners
B)withhold information from the distribution partner
C)allow the distribution partner to make marketing strategy decisions
E)all of the above

Question 53

In the United States, a free trade zone is officially called a _____.

A)Maquiladora operation
B)border zone
C)red zone district
D)Foreign Trade Zone
E)Channel Zone

Question 54

In essence, companies have two options when it comes to configuring their international distribution systems.A firm may decide to sell directly to its customers in a foreign market by using its own local salesforce or through the internet or:

A)a firm may decide to create an intermediary at the local level
B)a firm may decide to use the resources of independent intermediaries, most often at the local level.
C)a firm can request the distribution assistance of a local government
D)a firm can decide to distribute only in its region

Question 55

Companies that outsource to the extent that they adopt a "designer role" in global competition (i.e., offer innovations in product design without investing in manufacturing process technology) have been described by some as being:

A)vertical corporations.
B)horizontal corporations.
C)hollow corporations.
D)supply and demand corporations.
E)monopoly manufacturers.

Question 56

As a branding strategy, _____ is especially attractive to MNCs that face well-entrenched incumbent brands in the markets they plan to enter.(This overcomes the problem of shelf-space denial.)

A)domestic branding
B)national branding
C)manufacturers branding
D)store branding or private labeling
E)service labeling

Question 57

Duty deferral and elimination, lower tariff rates, exchange rate hedging, and a "Made in U.S.A." designation are all benefits of using a _____.

A)Maquiladora operation
B)border zone
C)red zone district
D)Foreign Trade Zone
E)Channel Zone

Question 58

All of the following are benefits of using a free trade zone except:

A)duty deferral and elimination.
B)lower tariff rates.
C)no government interference in intelligence gathering activities.
D)exchange rate hedging.
E)"Made in U.S.A." designation.

Question 59

Covisint is probably the largest global online _____ procurement system dedicated to the auto industry.

A)C2B
B)B2B
C)B2G
D)C2C
E)B2C

Question 60

Until recently, the Large Scale Retail Store Law in _____ helped to protect small retail stores.

A)Singapore
B)Pakistan
C)Indonesia
D)Japan
E)South Korea

Question 61

Materials management does not include the inflow of raw material, parts, and supplies through the firm.

Question 62

Various governments have established _____.

A)export processing circles.
B)export processing groups.
C)export processing clans.
D)export processing networks.
E)export processing zones.

Question 63

Physical distribution refers to the inflow of raw materials, parts, and supplies in and through the firm.

Question 64

In the US, the Jones Act requires passengers and merchandise being transported by ship within the United States to travel on U.S.-built, U.S.-owned and U.S.-staffed vessels.

Question 65

Air freight represents more than 40 percent of the value of goods shipped in international commerce.

Question 66

Coca-Cola Enterprises is a whole owned subsidiary of the Coca-Cola Company.

Question 67

In the US, the Merchant Marine Act of 1920 significantly reduces the costs of logistics in and around the United States.

Question 68

Materials management refers to the movement of the firm's finished products to its customers, consisting of transportation, warehousing, inventory, customer service/order entry, and administration.

Question 69

In _____, store hours are limited and stores do not open on Sundays.

A)Germany
B)USA
C)Mexico
D)Brazil
E)UK

Question 70

Honda, a Japanese automobile manufacturer, owns a number of highly successful specialty tofu restaurants in Tokyo frequented by young trendsetters in Japan.

Question 71

Changes in aircraft design have now enabled air transshipment of relatively bulky products.

Question 72

Today's modern jumbo cargo jets, such as the C-130 and the AN-32, can carry more than 200 tons of cargo.

Question 73

Global logistics encompasses materials management only.

Question 74

The bulk of international trade is handled by airlines.

Question 75

In geographically concentrated countries, such as Japan and Britain, firms tend to incur relatively more warehousing, customer service/order entry, and general administrative costs than in geographically larger countries.

Question 76

Honda, a Japanese automobile manufacturer, owns its own fleet of cargo ships and uses them to ship soybeans.

Question 77

In intermodal transportation, only one type of transportation is employed.

Question 78

In Asian countries, personal "connections" of who knows whom frequently seem to outweigh the Western economic principle of profit maximization or cost minimization in conducting business.

Question 79

_____ usually provide tax- and duty-free treatment of production facilities whose output is meant to be exported.

A)Gray products processing zones
B)High-tech processing zones
C)Maquiladora processing zones
D)Export processing zones
E)Import processing zones

Question 80

Ocean shipping is used extensively for the transport of heavy perishable cargoes.