Deck 11: Logistics

Question 1

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

Answer 1

9%

Question 2

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

Answer 2

landed cost

Question 3

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

Answer 3

False

Question 4

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

Question 5

Logistics provides ________ and ________ utility.

Question 6

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 7

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

Question 8

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 9

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 10

Logistics is often defined as the activities that deal with the physical aspects of the movement of goods.

Question 11

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

Question 12

Logistics provides place and form utility.

Question 13

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

Question 14

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

Question 15

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

Question 16

The freight cost per mile has been generally ________ through the last decade.

A)increasing
B)decreasing
C)constant
D)none of the above

Question 17

The freight cost per mile has been generally increasing through the last decade.

Question 18

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

Question 19

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

Question 20

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

Question 21

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 22

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

Question 23

As interest costs and cost of capital increase,firms will place less emphasis on lean inventory management.

Question 24

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 25

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 26

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 27

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 28

Two of the important inventory decisions that logistics managers need to make are when to order and how much to order.

Question 29

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

Question 30

As transportation costs increase,firms will place less emphasis on lean inventory management.

Question 31

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

Question 32

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 33

The standard of service performance in terms of inventory availability and capability that most effectively uses costs is known as ________.

Question 34

Logistics managers are responsible for overseeing only finished goods inventory.

Question 35

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

Question 36

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

Question 37

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 38

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

A)increase.
B)decrease.
C)remain constant.
D)none of the above.

Question 39

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

Question 40

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

Question 41

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 42

The mode of transportation which is the cheapest per tonnage is

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

Question 43

The mode of transportation which has the lowest variable cost is

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

Question 44

The mode of transportation which has the highest fixed cost is

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

Question 45

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 46

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 47

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 48

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

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

Question 49

Logisticians must consider the cost-to-service trade-off when deciding how much safety stock they need to store.

Question 50

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

Question 51

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

Question 52

Which of the following is not one of the inventory decisions that logistics managers need to make?

A)When to order?
B)How much to order?
C)From whom to order?
D)How much extra inventory to hold?

Question 53

The decision about when to order in a logistics system is often dictated by the transportation function.

Question 54

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

Question 55

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 56

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 57

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 58

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 59

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 60

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

Question 61

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

Question 62

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 63

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

Question 64

The decision about when to order in a logistics system is often dictated by the ________ function.

Question 65

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 66

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

Question 67

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

Question 68

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 69

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 units

Question 70

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 71

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

Question 72

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

Question 73

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

Question 74

Logisticians must consider the ________ trade-off when deciding how much safety stock they need to store.

Question 75

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 76

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

Question 77

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

Question 78

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 79

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 80

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