Deck 16: Global Logistics and Materials Management

Question 1

Tramp service is when homeless people are recruited to provide hands-on help in unloading freight on shipping lanes and trucking docks.

Answer 1

False

Question 2

In the trade-off concept, the ownership of the name or logo of a designer is traded for a mark of a different company.

Answer 2

False

Question 3

Bulk service mainly provides contractual service for individual voyages or for prolonged periods of time.

Answer 3

True

Question 4

Container ships are cargo vessels that carry standardized containers and greatly facilitate the loading and unloading of cargo and intermodal transfers.

Question 5

Reliability is related to the vagaries of nature, which can impose delays on transportation services.

Question 6

Materials management is the timely movement of raw materials, parts, and supplies into and through a firm.

Question 7

International logistics is the use of logic in advertising to persuade a customer to buy.

Question 8

Within each country, an international firm faces specific logistical attributes that may be quite different from those experienced at home.

Question 9

Currency variations are changes in exchange rates that can affect the purchases and profitability of the international firm.

Question 10

The total cost concept is the only logistical concept used by international management.

Question 11

Supply chain management is an integration of the three major concepts of logistics in which a series of value-added activities connect a company's supply side with its demand side.

Question 12

Density is the amount of saturation the shipping channel has at any given time.

Question 13

Transportation modes are buttons on web sites that give transporters a way to virtually transport ideas through e-commerce channels.

Question 14

A bill of lading is a document that acknowledges the receipt of goods and represents the basic contract between the shipper and the carrier.

Question 15

Liner service is sending telephone or fax notice of shipments of products coming within 24 hours.

Question 16

The systems concept is one of three major logistics concepts used by international management and is based on the notion that materials-flow activities within and outside the firm are so extensive and complex that they can be considered only in the context of their interaction.

Question 17

Basic differences in international logistics emerge because the corporation is active in more than one country.

Question 18

Logistics costs comprise almost three-fourths of the total landed cost of an international order.

Question 19

Physical distribution is the use of physics in helping marketers determine spoilage rates of perishable products.

Question 20

In domestic operations, logistics decisions are guided by the experience of the manager, possible industry comparison, an intimate knowledge of trends, and the development of heuristics.

Question 21

Bulk service is:

A) breaking down materials into packaging that is distributable.
B) ocean freight service that mainly provides contractual services for individual voyages for prolonged periods of time.
C) a large container of unpackaged items.
D) a set of predetermined shipping containers.

Question 22

Liner service is:

A) the coating on the inside of shipping containers that secures the product.
B) information given to managers so they can communicate in the international language.
C) regularly scheduled passage of ocean freight on established routes.
D) the straight lines of shipping channels.

Question 23

The integration of the three concepts of logistics, resulting in the new paradigm where a series of value-adding activities concentrate a company's supply side with its demand side, is called:

A) supply-chain management.
B) interactive management.
C) systems side management.
D) free enterprise management.

Question 24

A manager has a choice between airfreight, ocean freight, pipeline, rail, and trucking when choosing the best:

A) delivery situation.
B) transportation mode.
C) modal of transport.
D) vector.

Question 25

Tramp service is:

A) providing jobs for homeless by giving them dock jobs.
B) ramping products to and from liners with a t-ramp.
C) ocean freight service available for irregular routes and is scheduled on demand.
D) airline service on the Tarmac.

Question 26

Which of the following is not one of the guideposts that the experienced manager uses for logistics decisions?

A) Heuristics
B) Rules of thumb
C) Intimate knowledge of trends
D) Pricing strategy

Question 27

The second phase of the movement of materials that is of logistical importance is the movement of a firm's finished product to its customers, and it is called the:

A) problem identification phase.
B) content alignment phase.
C) physical distribution phase.
D) outside pandering phase.

Question 28

___________ is the logistics concept that recognizes the linkages with logistics systems that result from the interactions.

A) The trade-off concept
B) The marketing myopic concept
C) The preventative defense concept
D) The initial operating concept

Question 29

What is the first phase of the movement of materials that is of logistical importance?

A) Redirecting
B) Vocalization
C) Freeport induction
D) Materials management

Question 30

What percentage of the total landed cost of an international order is the logistics' cost?

A) 10-30%
B) 45%
C) 75%
D) 87%

Question 31

RORO is an acronym for what?

A) Roll-on-roll-off vessels
B) Right option, real option
C) Revising ocean rigging operations
D) Radio on radio off

Question 32

China is struggling to get demand and supply in line. The country is battling with all of the following except:

A) lack of demand.
B) insufficient transportation systems.
C) intellectual property theft.
D) poor lines of supply.

Question 33

Changes in exchange rates that can affect the purchase and profitability of the international firm are called:

A) fluctuations.
B) synergies.
C) currency variations.
D) placating.

Question 34

Cargo vessels that carry standardized containers that greatly facilitate the loading and unloading of cargo and intermodal transfers are called:

A) shipment ships.
B) product vessels.
C) tangible vessels.
D) container ships.

Question 35

International logistics is the design and management of a system that controls the flow of the materials in all but which of the following?

A) Into the company
B) Through the company
C) To competitors' companies
D) Out of the international corporation

Question 36

___________ is the logistics concept in which cost is used as a basis for measurement for the purpose of minimizing the firm's overall logistics cost by implementing the systems concept appropriately.

A) The inert management concept
B) The total cost concept
C) The volume and reduction concept
D) The earmarkings concept

Question 37

To obtain and maintain favorable results from the complex international environment, the international logistics manager must coordinate activities globally as well as:

A) conditionally and unconditionally.
B) nocturnally and twenty-four hours per day.
C) within and outside the firm.
D) with pragmaticism and skepticism.

Question 38

Which of the following is not one of the intermediaries that participate in the international logistics process?

A) Freight forwarders
B) Customs agents
C) Banks
D) Delivery agents

Question 39

One of the three major concepts of the logistics of international management, _______ concept is based on the notion that materials-flow activities within and outside of the firm are so extensive and complex that they can be considered only in the context of their interaction.

A) aggregation
B) ego and the id
C) overland
D) systems

Question 40

For the international firm, customer locations and sourcing opportunities are widely dispersed, therefore the physical distribution and logistics aspects of international marketing:

A) need to take a second look at the product mix.
B) have great importance.
C) are of minimal importance.
D) interfere with the overall marketing landscape.

Question 41

High value items are more likely to be shipped by air, particularly if they have a high:

A) density.
B) value.
C) space context.
D) Price.

Question 42

On what is international transportation service pricing usually based?

A) Volume
B) Content
C) Cost and value of the service to the shipper
D) Standard rate and data

Question 43

What is the major reason for the lack of local ports in developing countries?

A) Governments lack the necessary resources to construct and service ports.
B) Native people do not wish to destroy the ecosystem.
C) Shipping channels only go to international ports.
D) Five governors have brought environmental questions.

Question 44

Which of the following is true about international shipments?

A) They are usually small.
B) They usually involve not just one carrier but multiple types of carriers.
C) They are usually minimal.
D) They usually involve cultural deposits.

Question 45

Why are reverse distribution systems important?

Question 46

A license that may be required by certain countries for particular types or amounts of imported goods is called:

A) certification clarification.
B) mining differential.
C) placards.
D) an import license.

Question 47

The most important document to the shipper, the carrier, and the buyer is a document that acknowledges receipt of the goods, represents the basic contract between the shipping and the carrier, and serves as evidence of title to the goods for collection by the purchase which is required for export. What is this document called?

A) Shipping log
B) Port tally
C) Bill of lading
D) Document of authenticity

Question 48

What is the greatest constraint in international ocean shipping?

A) Military maneuvers
B) Seasickness.
C) Lack of ports and port services
D) Length of time

Question 49

Providers of both ocean and airfreight services wrestle with the issue of the vagaries of nature which can impose delays on transportation services. This issue is called:

A) constancy.
B) validity.
C) pressing.
D) reliability.

Question 50

How can inventory be used as a strategic tool?

Question 51

Which of the following is not one of the major efforts airlines have made to increase the volume of air freight?

A) Developed better and more efficient ground facilities
B) Introduced airfreight containers
C) Liquidated ground freight services
D) Marketed a wide variety of special services

Question 52

The expense of maintaining inventories is called:

A) the retailers' overhead.
B) shipping responsibility.
C) inventory carrying costs.
D) assumable prices.

Question 53

Why is international logistics management growing in importance?

Question 54

When a shipper is going to ship corrosives, flammables, and poisons, he must submit a:

A) voyager sheet.
B) inventory list on overseas web pages.
C) shipper's declaration for dangerous goods.
D) PPTOC.

Question 55

A consular invoice is:

A) required by the consulate.
B) a joint complaint by both parties for damages in shipping.
C) a document required by certain countries for data collection purposes.
D) a photocopy of the actual invoice.

Question 56

The shipper's export declaration:

A) is a political statement between two countries.
B) is a valuable tenant and is historically used by shipping captains.
C) voids previous contracts.
D) is a document that states proper authorization for export and serves as a means for governmental data collection efforts.

Question 57

The period between departure and arrival of the carrier is called:

A) shipping.
B) transit time.
C) volume radiation.
D) present danger.

Question 58

A document required by certain countries to ensure correct tariffs are paid is called:

A) a certificate of origin.
B) tariff paperwork.
C) the sunshine law.
D) a clarification memo.