Deck 3: Role of Logistics in Supply Chains

Question 1

The network of activities, facilities, and personnel required to organize, schedule, and deploy the resources to stage the Olympics is an example of event logistics.

Answer 1

True

Question 2

As a firm spends more on transportation service, cost of lost sales increases.

Answer 2

False

Question 3

Which of the answers below 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 Dell combines components with software to produce a computer to a customer's specifications
D) When bulk products are broken and repackaged at a distribution center

Answer 3

D

Question 4

A national drug store chain arranging to have Valentine greeting cards and candies in its stores by mid-January is an example of which utility?

A) Place utility
B) Quantity utility
C) Time utility
D) Form utility

Question 5

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

Question 6

The utility that is created by delivering the proper quantities of an item to where it is demanded is referred to as _____ utility.

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

Question 7

As the dollar value of a product increases, packaging costs:

A) increase.
B) decrease.
C) stay the same.
D) can't be determined.

Question 8

The value that is added to goods through a manufacturing or assembly process is:

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

Question 9

As the weight density of a product decreases, transportation cost per pound:

A) increases.
B) decreases.
C) stays the same.
D) can't be determined.

Question 10

The time that elapses from when a customer places an order until the customer receives the order is referred to as order lead time.

Question 11

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

Question 12

What is often the largest component of logistics costs?

A) Inventory costs
B) Transportation costs
C) Shipper-related costs
D) Administrative costs

Question 13

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

Question 14

Carrie, the logistics manager of an appliance manufacturer, has been tasked with designing the warehouse at the company's new facility. At the moment, she is working out where trucks will deliver raw supplies and pick up finished products for shipment, which is an important element of:

A) inventory control.
B) transportation .
C) materials handling .
D) production planning .

Question 15

The trend toward "pull" systems where the product is "pulled" in response to demand (as opposed to being "pushed" in advance of demand) increases inventory levels, which can increase total logistics costs even though production costs may decrease.

Question 16

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

Question 17

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

Question 18

Logistics creates which utility through the movement of goods from production points to markets where there is a demand for the finished product?

A) Possession utility
B) Place utility
C) Time utility
D) Form utility

Question 19

As the dollar value of a product decreases, its inventory value decreases.

Question 20

As a firm spends more on transportation service, cost of lost sales:

A) increase.
B) decrease.
C) stay the same.
D) can't be determined.

Question 21

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 22

Explain the relationship between logistics and supply chain management.

Question 23

The most important trade-off in logistics is between:

A) warehousing and packaging.
B) inventory and packaging.
C) transportation and warehousing.
D) transportation and inventory.

Question 24

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

A) reverse
B) proportional
C) inverse
D) nonlinear

Question 25

Logistics encompasses a relatively large number of managerial activities. Discuss five of these activities and why they are important to logistics systems.

Question 26

An important sustainability issue that has received much more scrutiny in recent years is the:

A) focus on adequate inventory levels.
B) reduction in packaging waste by using alternate materials.
C) effort to move warehouse storage closer to consumers.
D) emphasis on materials handling and warehouse design.

Question 27

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

Question 28

What product characteristics affect logistics costs? Discuss the effects of these characteristics on logistics costs.

Question 29

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

A) Nodes
B) Links
C) Cost centers
D) Fulfillment centers

Question 30

Why do companies analyze their logistics systems from the perspective of nodes and links?

Question 31

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

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

Question 32

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 33

The _____ includes activities such as order transmission, order receipt, order processing, order preparation (picking and packing), and order shipment.

A) inventory process
B) customer cycle
C) order cycle
D) order fulfillment process

Question 34

Physical distribution has a special relationship to marketing. What is the nature of the relationship between logistics and marketing? Is the relationship becoming more or less important? Why?

Question 35

How does logistics add value for firms?

Question 36

As the dollar value of a product decreases, its transportation cost:

A) increases.
B) decreases.
C) stays the same.
D) can't be determined.