Deck 4: Organizational and Mangerial Issues in Logistics

Question 1

A primary advantage of ____ logistics is its relative efficiency,whereas a primary advantage of ____ logistics is its customer responsiveness.

A)unified; fragmented
B)unified; decentralized
C)fragmented; centralized
D)centralized; decentralized

Answer 1

D

Question 2

What is the most important purpose of warehouse work rules?

A)to control pilferage
B)to keep employees from engaging in unproductive and potentially destructive activities
C)to protect companies from union grievance procedures
D)to give managers control over warehouse workers

Answer 2

B

Question 3

In a ____ logistics structure,logistics activities are managed in multiple departments throughout an organization.

A)unified
B)fragmented
C)decentralized
D)matrix

Answer 3

B

Question 4

A ____ logistics organization means that logistics-related decisions are made separately at the divisional or product group level.

A)fragmented
B)decentralized
C)flexible
D)agile

Question 5

A key attribute of network organizational design is a shift from ____ to ____.

A)function; process
B)centralization; decentralization
C)process; function
D)decentralization; centralization

Question 6

Which of the following is an advantage of a decentralized logistics organization?

A)less expensive than a centralized organization
B)good opportunities for freight consolidation
C)can be responsive to customer service requirements
D)better control over company data

Question 7

____ refers to the amount of output divided by the amount of input.

A)Control
B)Monitoring
C)Productivity
D)Input-output analysis

Question 8

A ____ is a device used to monitor and control the actions taken by a driver and his/her vehicle.

A)tachometer
B)tachograph
C)speedometer
D)regulator

Question 9

A ____ organizational design attempts to create an organization that is responsive to the parameters of the contemporary business environment.

A)matrix
B)network
C)decentralized
D)unified

Question 10

____ can be defined as an organization's ability to address unexpected operational situations.

A)Relevancy
B)Flexibility
C)Accommodation
D)Responsiveness

Question 11

All of the following are reasons why logisticians should be concerned about theft except:

A)stolen products may reappear to compete with other products
B)time and costs associated with theft aren't always covered by insurance
C)some organizations will avoid locating their facilities in areas characterized by high crime rates
D)theft can lead to stockouts in the distribution channel
E)all of the above are reasons

Question 12

One problem with a ____ logistics structure is that because logistics activities are scattered throughout the firm,they likely remain subservient to the objectives of the department in which they are housed.

A)fragmented
B)matrix
C)decentralized
D)hierarchical

Question 13

A ____ logistics organization implies that the corporation maintains a single logistics department that administers the related activities for the entire company from the home office.

A)hierarchical
B)unified
C)centralized
D)command-and-control

Question 14

Productivity improvement efforts in logistics are often directed towards ____.

A)reducing input while increasing output
B)reducing input while holding output constant
C)increasing output while holding input constant
D)increasing output by a greater percentage than inputs are increased

Question 15

____ refers to satisfying current and emerging customer needs.

A)Responsiveness
B)Flexibility
C)Relevancy
D)Accommodation

Question 16

Which of the following is a way to improve to productivity?

A)increase the amount of input while holding output constant
B)decrease the amount of output while holding input constant
C)increase input while at the same time decreasing output
D)increase output while holding input constant

Question 17

____ and ____ are the two basic organizational structures associated with logistics.

A)Centralized; hierarchical
B)Fragmented; centralized
C)Fragmented; unified
D)Unified; hierarchical

Question 18

In a ____ logistics structure,multiple logistics activities are combined into,and managed as,a single department.

A)hierarchical
B)centralized
C)matrix
D)unified

Question 19

____ organizational design has its foundations in the command-and-control military operation,where decision-making and communication often follow a top-down flow.

A)Centralized
B)Unified
C)Matrix
D)Hierarchical

Question 20

Which of the following is an advantage of a centralized logistics organization?

A)less expensive than a decentralized organization
B)good opportunities for freight consolidation
C)can be responsive to customer service requirements
D)easier to manage than a decentralized organization

Question 21

The materials stolen in ____ are usually for the employee's own use.

A)theft
B)non-monetary compensation
C)pilferage
D)demurrage

Question 22

What is the primary difference between pilferage and theft?

A)there is no difference between the two
B)theft refers to stolen merchandise worth more than $500
C)pilferage refers to stolen merchandise worth more than $500
D)pilferage involves a firm's own employees,while theft involves efforts from outsiders
E)none of the above

Question 23

The organization of logistics activities within a firm depends on a number of factors,including the number and location of customers and an organization's size.

Question 24

A decentralized logistics organization means that logistics-related decisions are made at the divisional or product group level and often in different geographic areas.

Question 25

Leading edge organizations are more likely to use a unified,as opposed to fragmented,logistics structure.

Question 26

The large increase in pirate attacks between 2008 and 2009 was due to a surge in attacks off the ____ coast

A)Indonesia
B)China
C)Somalia
D)India

Question 27

Two of the most important U.S.government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency and ____.

A)Department of Transportation
B)Federal Maritime Commission
C)Surface Transportation Board
D)Customs and Border Protection

Question 28

A centralized logistics organization generally results in better customer responsiveness than a decentralized organization.

Question 29

The concept of logistics social responsibility,or corporate social responsibility issues that relate directly to logistics,did not emerge until which decade?

A)2000-2009
B)1990-1999
C)1980-1989
D)1970-1979

Question 30

All of the following are potential benefits to the Customs Trade Partnership Against Terrorism except:

A)lower costs
B)fewer security inspections
C)reduction in cargo theft
D)faster processing time through Customs
E)all of the above are potential benefits

Question 31

With respect to the design of warehouses,one suggestion for energy savings is to make sure that dock doors are not placed on the ____ side of a building.

A)north
B)south
C)east
D)west

Question 32

Which of the following is not one of the three critical factors associated with the process of managing returned goods?

A)why products are returned
B)how many products are returned
C)whether returned goods should be managed internally or outsourced to a third party
D)how to optimize reverse logistics

Question 33

Reverse logistics can be ____ times more expensive than forward logistics.

A)5 to 10
B)6 to 8
C)4 to 5
D)2 to 3
E)None of the above

Question 34

Which of the following is responsible for the security of the U.S.transportation system?

A)Department of Commerce
B)Department of Transportation
C)Transportation Security Administration
D)Surface Transportation Board

Question 35

In a unified logistics structure,multiple logistics activities are combined into,and managed as,a single department.

Question 36

The Importer Security Filing

A)5; 5
B)10; 2
C)4; 8
D)6; 6

Question 37

The two areas in logistics systems where most energy costs occur are ____ and ____.

A)customer service; warehousing
B)packaging; transportation
C)materials handling; packaging
D)warehousing; transportation

Question 38

One problem with a fragmented logistics structure is that because logistics activities are scattered throughout the firm,they likely remain subservient to the objectives of the department in which they are housed.

Question 39

Transportation accounts for approximately ____ of all petroleum consumption in the United States.

A)three-quarters
B)two-thirds
C)one-half
D)one-third

Question 40

In a decentralized logistics structure,logistics activities are managed in multiple departments throughout an organization.

Question 41

Responsiveness refers to satisfying current and emerging customer needs.

Question 42

Union work rules are often very specific in the sense that job descriptions spell out the responsibilities associated with a particular job.

Question 43

Common sense is viewed as basic founding for controlling theft in a logistics system.

Question 44

Pilferage refers to stolen goods valued at more than $1,000.

Question 45

Excess capacity,or unused available space,can be unproductive because it may result in the purchase of additional equipment or space.

Question 46

Experts recommend that the best pilferage policy should be based on zero tolerance.

Question 47

The concept of logistics social responsibility did not emerge until the mid-1990s.

Question 48

Productivity efforts in logistics are often directed at increasing the amount of output while holding input constant.

Question 49

Societal changes are relatively easy to accommodate in a hierarchical,or functional,organizational design.

Question 50

One of the most effective methods of protecting goods from theft or pilferage is to keep them moving through the system.

Question 51

Most Fortune 500 companies employ a chief logistics officer

Question 52

Wireless communications,global positioning systems,and graphical information systems offer tremendous opportunities to improve driver productivity.

Question 53

As a general rule,the same types of supervision can be used for both warehouse workers and truck drivers.

Question 54

Much of the increase in pirate attacks during 2009 was due to a surge in attacks off the Indonesian coast.

Question 55

The postponement of product assembly and labeling until exact customer requirements are known is an example of responsiveness.

Question 56

The odometer is a recording instrument that produces a continuous,timed record of the truck,its speed,and its engine speed.

Question 57

A matrix organizational design can be very responsive to customer requirements.

Question 58

From a logistics perspective,a network organizational design in logistics is manifested in terms of relevancy,responsiveness,and flexibility.

Question 59

As a general rule,logisticians should not be concerned about theft because many organizations carry insurance to compensate themselves in case of theft.

Question 60

Productivity can be defined as the amount of output divided by the amount of input.

Question 61

What longer-range steps should Fosdick take to control the operations of the Providence distribution center?

Question 62

Warehousing and packaging are the two areas in logistics systems where most energy costs occur.

Question 63

How should Fosdick respond to the immediate situation?

Question 64

Roof color is often overlooked as an area for warehousing energy control.

Question 65

Products (goods) cannot be returned simply because a buyer no longer wants, needs, or likes them.

Question 66

Potential logistics social responsibility dimensions include the environment,diversity,safety,and philanthropy,among others.

Question 67

Assume that Fosdick decides that the practice of free lunches from the open cases of goods must be stopped.Develop and present arguments he should give in a meeting with a union shop steward.

Question 68

The terrorist attacks in the United States on September 11,2001 were a defining moment that brought terrorism considerations to the forefront of logistics management.

Question 69

Reverse logistics can be four to five times more expensive than forward logistics.

Question 70

What longer-range steps should Fosdick take to improve the Providence distribution center's productivity?

Question 71

Transportation accounts for about one-half of all petroleum consumption in the United States.

Question 72

The Transportation Worker Identification Credential

Question 73

Companies that participate in the Customs Trade Partnership Against Terrorism are exempt from all import tariffs and all import quotas.

Question 74

What longer-range steps can Fosdick take to reduce the distribution center's high rate of shrinkage?

Question 75

Customs and Border Protection is responsible for securing U.S.borders to protect the American people and the U.S.economy.

Question 76

Much of the situation described in the case seems to revolve around the personality of T.D.Bigelow.How should he be treated? Why?

Question 77

What controls,of the types discussed in this chapter,might have been used by Red Spot Markets to reduce or eliminate the problems discussed in the case?

Question 78

With respect to energy controls,warehousing design suggests that dock doors should not be placed on the west side of a building.

Question 79

The Importer Security Filing(ISF) rule requires carriers to file 10 pieces of information and importers to file two pieces of information.

Question 80

From a logistics perspective,the Transportation Security Administration and the Department of Transportation are two of the most important government entities that were incorporated into the Department of Homeland Security.