Deck 12: Logistics: Positioning Goods in the Supply Chain

Question 1

Logistics and supply management are synonymous.

Answer 1

False

Question 2

Distribution network design should not consider future needs

Answer 2

False

Question 3

Third party logistics providers range from small narrow firms to firms that provide a range of transportation, warehousing, and consulting services

Answer 3

True

Question 4

Cost should be the most important consideration when selecting a 3PL provider.

Question 5

The system used to return products from the customer back to the producer is known as asset recovery

Question 6

The use air transport for commercial freight has remained constant in the U.S.

Question 7

The cheapest way to move freight via truck is by maximizing LTL shipments

Question 8

Air transport is particularly attractive for products with short shelf life or short life cycle.

Question 9

The center of gravity method is a subjective approach to identifying the best supplier.

Question 10

Consideration of a potential 3PL provider should include

A) Product quality
B) Culture
C) Warehousing approach
D) Transition cost

Question 11

The process of bringing returned goods back to the producer is known as

A) Forward logistics
B) Cross docking
C) Reverse logistics
D) Asset recovery

Question 12

The fastest growing commercial freight transportation mode is

A) Truck
B) Rail
C) Marine
D) Air

Question 13

Compared to truck transport, rail transport is

A) Less flexible
B) More expensive
C) Safer
D) Faster

Question 14

Intermodal transport refers to

A) Transport that crosses state lines
B) Transport that crosses international borders
C) Transport that uses at least two different modes
D) Transport by containership

Question 15

One disadvantage of containerized transport is

A) The difficulty of moving the container from a ship to a truck
B) The need to stack containers to store them
C) The lack of available containers
D) The low container capacity on ships

Question 16

Incoterms refers to

A) International Container Terminals
B) Definitions that define who pays for the various parts of a product's transportation
C) Intercontinental Cooperation Terms
D) Interstate Commerce Terminal policies

Question 17

The distribution strategy that utilizes bulk shipments to a distribution center and immediately redirects the contents in mixed shipments to retailers is referred to as:

A) Warehousing
B) Direct shipment
C) Cross-docking
D) Pooling
E) None of the above

Question 18

The strengths of a warehousing strategy are:

A) Risk pooling and reduced inbound transportation costs
B) Accurate forecasts and reduced bullwhip effect
C) Reduced inventory carrying costs and reduced transportation costs
D) Enhanced response time and lower levels of inventory

Question 19

Which of the following statements is true about cross-docking?

A) Cross-docking is the most sophisticated of the three distribution strategies.
B) Cross-docking strategies are particularly suitable for small distribution systems.
C) Cross-docking requires less communication between suppliers and retailers than other strategies.
D) Cross-docking allows retailers to take shipments directly from suppliers.

Question 20

Which of the following statement is not true about distribution strategies?

A) Distribution strategies address the approach used to distribute products to other places.
B) The most sophisticated of the three distribution strategies is cross-docking.
C) The distribution strategy selected has implications for a variety of resources.
D) In a cross-docking strategy, advantages are gained from risk-pooling.

Question 21

Shipments from suppliers to a consolidation warehouse are likely to

A) be FTL
B) be PFTL
C) be LTL
D) be bullwhipped

Question 22

Delaying the commitment of products to the final configuration is known as

A) Free on board (FOB)
B) Warehousing
C) Postponement
D) Direct shipment

Question 23

The key advantage to direct shipping would be

A) Lower total transportation costs
B) The use of FTL shipments
C) No warehousing costs
D) Postponement

Question 24

The center-of-gravity method of locating distribution centers

A) Compares the three different warehousing strategies and selects the optimum
B) Considers the number of shipments and locations of retailers
C) The differences between rail, truck, and air transport
D) Recognizes the differences between inbound and outbound costs

Question 25

In a center-of-gravity calculation, the location of a distribution center

A) Is determined using decision-tree analysis
B) Is a function of the number of shipments and the location of the retailers
C) Is not affected by the location of the individual retailers
D) Is intended to minimize shipment time

Question 26

C-TPAT is connected most closely to

A) Radio frequency identification
B) Risk pooling
C) Trading communities
D) Supply chain security

Question 27

RFID refers to

A) Combining GPS and ERP systems
B) The use of a tag which can be "read" by a reader
C) Policies that define who pays for various parts of shipping goods
D) Wal-Mart's approach to distribution networking

Question 28

The cost of a product, including all logistics costs, is known as

A) Delivered cost
B) F. O. B cost
C) Total cost
D) Landed cost

Question 29

_____ ______ utilizes increased levels of inventory held centrally in a warehouse and less inventory at retailers to reduce the total amount of inventory in the system.

Question 30

The disposition of a product returned through the reverse logistics network when sold again is known as _____ _____

Question 31

LTL refers to transporting in trucks that ____ ____ full

Question 32

C-TPAT is a voluntary program to drive improvements in ____ _____ _____.

Question 33

Supply chain applications of RFID technology are expected to include _____, _____, _____, and _____

Question 34

The use of an air carrier to transport goods has the advantage of _______.

Question 35

_____ are specifically designed to carry cargo that is packed in standard size containers.

Question 36

The least flexible of any transportation mode is ______ _____.

Question 37

The world inventory of containers is over ____ ______

Question 38

A product's landed cost is the cost of the _____ plus all of the costs of _____ activities.

Question 39

Match these items.

-Containership

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 40

Match these items.

-Full truckload (FTL)

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 41

Match these items.

-Cross docking

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 42

Match these items.

-C-TPAT

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 43

Match these items.

-Logistics

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 44

Match these items.

-Direct Shipment

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 45

Match these items.

-Landed cost

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 46

Match these items.

-Integrated transport carrier

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 47

Match these items.

-Double-stacking

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 48

Match these items.

-Intermodal transport

A) At least two different transportation modes are used in moving the goods from origin to destination
B) A cooperative program between businesses and the U.S. government to improve supply chain security
C) The flow and storage of goods, services, and related information from production to consumption
D) A ship designed to carry cargo that is packed in standard size metal containers
E) A product's cost including all of the per product costs of logistics activities
F) Transporting goods in a truck that is full
G) Continuous shipment from suppliers to warehouses, where goods are redirected and delivered to retailers in continuous shipments
H) Stacking containers two high on railcars
I) Shipping directly from manufacturer suppliers to retailers
J) Utilizes a combination of at least two modes to move goods from origin to destination

Question 49

A clothing retailer is considering two possible suppliers for "hoody" sweatshirts. One supplier offers cases of 20 sweatshirts for $210. Shipping from the manufacturer to the port is $14 per case. Marine transport works out to $31 per case. UPS shipment from the U.S. port to the store adds $27 per case. What is the landed cost for a sweatshirt?

Question 50

Determine the coordinates of the center-of-gravity for the problem given below.
$\begin{array}{cccc} \text {Supplier} &\text { Monthly Shipments} & \text {X coordinate} &\text { Y coordinate }\\\text {A} & 8 & 30 & 90 \\\text {B} & 4 & 60 & 20 \\\text {C} & 6 & 40 & 80 \\\text {D} & 3 & 10 & 70\end{array}$

Question 51

Compare the advantages and disadvantages of truck, air, rail, and marine modes of freight shipment.

Question 52

How has containerization affected global logistics?

Question 53

Why are the Incoterms an important part of logistics?

Question 54

Compare direct shipment, warehousing, and cross docking.

Question 55

Compare the strengths and weaknesses of air, road, and marine transport.