Deck 9: Logistics

Question 1

A material handling system includes equipment and procedures that are needed to move items within a facility,between a facility and a transportation mode,and between different transportation modes.

Answer 1

True

Question 2

Inventory pooling occurs when a warehouse operator fails to complete shipments and is left with inventory that should be elsewhere.

Answer 2

False

Question 3

The net result of the renaissance in logistics is that logistics costs are expected to decline.

Answer 3

False

Question 4

Between any two locations,a less-than-truckload shipment probably experiences fewer stops and handling than a direct truck shipment.

Question 5

In the United States,the value of goods transported via highway is greater than the value of goods transported by all other transportation modes.

Question 6

A reverse logistics system handles repairs,recycling and goods that require redeployment elsewhere.

Question 7

Packaging is a logistics activity.

Question 8

The most detailed level of a logistics information system is the execution system.

Question 9

Assortment warehousing is a form of warehousing that combines classic operations with light manufacturing and packaging duties in order to assure short customer lead times.

Question 10

The difference between a contract carrier and a common carrier is that the common carrier handles shipments on a case-by-case basis while the contract carrier handles shipments based on long-term contracts.

Question 11

In order for the assignment problem method to yield an optimal solution all of the transportation costs in the area must be identical.

Question 12

Which of these is NOT a logistics activity?

A)material handling
B)inventory management
C)warehousing
D)inspection

Question 13

The landed cost is the sum of all of the logistics activities from packaging at the producer's site through transportation,handling,customs,and any other logistics fees to the point of sale.

Question 14

Cross-docking is essentially the reverse procedure from consolidation warehousing.

Question 15

The solution obtained from an assignment problem is an optimal answer to the problem of shipping goods from multiple sources to multiple destinations.

Question 16

A third party logistics provider is a company that provides services when another firm decides to completely outsource the logistics function.

Question 17

A company interested in consistently achieving a high level of on-time delivery would be best served by the highway or air modalities of transportation.

Question 18

Roadrailers are considered a multimodal solution when all of their capabilities are utilized.

Question 19

The perfect order measures how effectively logistics serves the customer but the landed cost measures how efficiently logistics provides that service.

Question 20

In order for the weighted center of gravity method to yield an optimal solution all of the transportation costs in the area must be identical.

Question 21

The drought of 2011 devastated hay crops in the plains states and horse owners ranged far and wide to purchase hay for their horses when winter arrived.Hay can be purchased "up north" for $4 a bale and a few entrepreneurs with large trailers were more than willing to pick up a few hundred bales and haul them south where demand was high.The transportation cost was $6 per bale and a packing and loading cost of $1 was typical.The landed cost of a bale of hay this winter was:

A)$4.
B)$6.
C)$10.
D)$11.

Question 22

Which of these statements about reverse logistics is BEST?

A)Reverse logistics systems are usually less cost-efficient than forward-based systems.
B)Reverse logistics systems are usually designed to be less flexible than forward-based systems.
C)Reverse logistics systems usually play no role in customer satisfaction.
D)Reverse logistics systems usually use the same processes and players that comprise the forward-based system.

Question 23

The mode of transportation that is highly cost effective for bulky items but has relatively poor delivery reliability and speed is:

A)highway.
B)water.
C)rail.
D)air.

Question 24

One form of warehousing that features light manufacturing and packaging duties and allows firms to put off final assembly or packaging until the last possible moment is:

A)assortment warehousing.
B)spot stock warehousing.
C)postponement warehousing.
D)pac-man warehousing.

Question 25

The transportation mode with the highest dollar value of freight in the United States is:

A)water.
B)rail.
C)highway.
D)pipeline.

Question 26

What percent of North American gross domestic product is accounted for by logistics?

A)almost 8 percent
B)almost 12 percent
C)almost 16 percent
D)almost 20 percent

Question 27

Cargo is loaded and unloaded only once with:

A)direct truck shipment.
B)less-than-truckload shipment.
C)multimodal solutions.
D)None of these modes always has only one loading and unloading.

Question 28

Hub and spoke systems are characterized by:

A)"spokes" that are represented by the sites that receive the goods.
B)"hubs" that hold inventory until the appropriate season or upswing in demand.
C)inventory locations that are close to producers,not customers.
D)warehouses that are purely sorting facilities.

Question 29

The most detailed level of logistics information systems is the:

A)decision support system.
B)planning system.
C)material handling system.
D)execution system.

Question 30

This transportation mode is often the most expensive on a per pound basis.

A)air
B)rail
C)water
D)highway

Question 31

Universal Exports has several crates it needs to send from the United Kingdom to North Korea.They have located a firm that specializes in transferring cargo to the actual carrier that will bring the crates into North Korea.This firm could be described as:

A)an interlocuter.
B)a customs broker.
C)a freight forwarder.
D)a mercenary.

Question 32

The transportation mode other than highway with the highest annual tonnage in the United States is:

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

Question 33

A logistics manager uses this type of system to select a carrier for an outgoing shipment or to develop a weekly schedule of deliveries.

A)decision support
B)planning
C)execution
D)operating

Question 34

Which of the following is a type of material handling equipment?

A)3PL
B)ASRS
C)LTL
D)RFID

Question 35

Last year the Perfection Logistics Company delivered 3.1 million packages and damaged 45,000 deliveries,sent 28,000 to the wrong address,and was late 20,000 times.Their percent perfect order is:

A)93000
B)3007000
C)97%
D)93.7%

Question 36

Which of these statements about inventory management is BEST?

A)Spot stock warehouses are more useful with less inventory in the system.
B)A system using air transportation experiences higher costs due to higher levels of inventory.
C)Cross-docking facilities don't need to match incoming and outgoing demand since they typically retain much of their inventory for a week or longer.
D)A system using water and rail transportation tends to have higher levels of inventory.

Question 37

A firm that is interested in consistent on-time delivery would probably design their transportation and warehousing system to include:

A)air transportation with a spot stock warehouse.
B)rail transportation with a consolidation warehouse.
C)water transportation with a hub and spoke warehouse.
D)pipeline transportation with a postponement warehouse.

Question 38

Which of the following is an example of consolidation warehousing?

A)Large shipments from multiple suppliers are re-sorted into customized shipments to individual stores.
B)A single manufacturer takes output directly from a single manufacturing plant and sends it directly to a single customer.
C)A single manufacturer takes output from several of its manufacturing plants and combines them into one shipment to a major customer.
D)A single manufacturer holds a wide array of goods close to the source of demand.

Question 39

A service firm that takes care of all of the logistics requirements for other companies is a:

A)common carrier.
B)contract carrier.
C)third party logistics provider.
D)freight forwarder.

Question 40

The fireworks that were produced year-round in South Africa were sent to warehouses around the United States during the months of May and June in anticipation of large demand for the July 4th holiday.The warehousing system that is BEST suited to handle this situation is the:

A)assortment warehouse.
B)postponement warehouse.
C)spot stock warehouse.
D)break-bulk warehouse.

Question 41

Using the map and annual volumes shown next to each location,what is the BEST location for a central warehouse that can be used to service all of the locations?

A)Near (2,3)
B)Near (3,2)
C)Near (3,4)
D)Near (4,3)

Question 42

The printer manufacturer shipped all finished goods to a centrally located warehouse just down the street from an international airport.When orders came in from one country,workers at the warehouse added instruction manuals in that language and included a power supply that fit the appropriate electrical distribution system.This is an example of ________.

Question 43

What are the three main categories of logistics information systems? What function does each serve?

Question 44

Choose a major manufacturer and a major retailer and describe two types of warehousing each might use and why they use it.

Question 45

The online tracking systems offered by overnight carriers are examples of logistics information systems known as ________.

Question 46

Acme wants to locate a warehouse to serve their major customers that are shown in the table.What is the location that will minimize the transportation costs for their family of products?

A)Near (3,4)
B)Near (4,5)
C)Near (5,6)
D)Near (6,5)

Question 47

The complicated gift basket was delivered exactly as it was designed and in plenty of time to be enjoyed during seasonal celebrations.From a logistics performance standpoint,the product could be considered a(n)________.

Question 48

Define logistics and explain why it is critical.

Question 49

A(n)________ can handle shipments on an as-needed basis with no long-term contract required.

Question 50

Plants A,B,C,and D produce the same item that is demanded by customers W,X,Y,and Z.Customer demand and plant capacity are shown in the bottom row and rightmost column in the table.The cost to ship one unit between each combination of plants and customers is also shown in the table.The corporation wishes to minimize the total transportation costs of this assignment problem.

What is a suitable constraint?

A)Minimize Cost = $3Saw + $6Sax + $4Say + $2Saz
B)Minimize Cost = $3Saw + $7Sbw + $10Scw + $12Sdw
C)Saw + Sbw + Scw + Sdw <= 25,000
D)Saw + Sax + Say + Saz <= 22,000

Question 51

The ________ mode of transportation is highly cost effective for bulky items but has relatively poor delivery reliability and speed.

Question 52

________ is a form of warehousing in which smaller outgoing shipments are created from large incoming shipments.

Question 53

Your new Garden Weasel fails to "completely satisfy" you so you decide to return it for a full refund.What is the name for the system that will carry your weasel back to the manufacturer?

A)upstream logistics
B)reverse ordering
C)upstream ordering
D)reverse logistics

Question 54

A location model that looks at the problem of serving various demand points from multiple supply points at the lowest cost is the ________.

Question 55

Compare any four transportation modes by volume of goods moved in the United States and apparent strengths and weaknesses.

Question 56

The goods entered doors on one side of the massive building and crossed the floor to the other side,where they were loaded on delivery trucks headed out on their delivery routes.The screams of the workers were drowned out by the constant traffic from the nearby airport and rail yard,making this an ideal ________ for the retail giant.

Question 57

A(n)________ uses more than one transportation mode through physical,information,and monetary flows that are as seamless as possible.

Question 58

Plants A,B,C,and D produce the same item that is demanded by customers W,X,Y,and Z.Customer demand and plant capacity are shown in the bottom row and rightmost column in the table.The cost to ship one unit between each combination of plants and customers is also shown in the table.The corporation wishes to minimize the total transportation costs of this assignment problem.

Which of these is part of an appropriate objective function?

A)$12DW + $15DX + $13DY + $11 DZ
B)-$3AW - $7BW - $10CW - $12DW
C)CW + CX + CY + CZ = 14,000
D)CW + CX + CY + CZ ≤ 14,000

Question 59

It looked like a scene right out of the Transformers series,albeit in a far more functional format.With the push of a button the rail car's wheels folded up into the body of the car and wheels suitable for highway transportation appeared out of nowhere.The whole process took only a minute or so and the ________ was ready to deliver steaming burritos to the growing crowd at the center of town.

Question 60

Seasonal goods such as holiday decorations and recreational equipment may be placed in a(n)________ close to the marketplace.

Question 61

What is a perfect order and what are five elements that might comprise such a measure?

Question 62

Plants A,B,C,and D produce the same item that is demanded by customers W,X,Y,and Z in the amounts shown in the table.The cost to ship one unit between each combination of plants and customers is also shown in the table.The corporation wishes to minimize the total transportation costs of this assignment problem.
What are the decision variables?
What is the objective function?
What are the constraints?

Question 63

Compare the advantages and disadvantages of ownership of logistics assets.What factors should be considered when deciding whether to own or outsource the assets needed to execute the logistics function?

Question 64

A producer of action figures is in a quandary about where to locate a central warehouse that will serve all of their regional centers for the coming millennium.They have predicted average annual demands for the following locations in the table.
Where should they locate their central warehouse?