Question 1

_____ is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's needs.

Accepted Answer

This is the definition of an inventory control system.

Question 2

The growers of Vidalia onions have determined that their chief priority for choosing a transportation mode within the United States is transit time.However,this must be tempered by practical cost considerations.In light of these considerations,Vidalia onion growers should use _____ to ship their onions.

Accepted Answer

Motor carriers are not as fast as airplanes,but they are less expensive,particularly when dealing with a bulky product like onions.

Question 3

The goal of inventory control is to:

Accepted Answer

Inventory decisions affect physical distribution costs and service levels.The goal is to balance minimum inventory levels while meeting customer needs for stock.

Question 4

The goal of any effective materials-handling system is to:

Accepted Answer

Each time a product is handled,the cost and risk of damage increase.

Question 5

A materials-handling system does all of the following EXCEPT:

Accepted Answer

A materials-handling system moves inventory into,within,and out of the warehouse.Transporting occurs before and after the warehouse.

Question 6

The relative ease with which a shipment can be located and transferred is:

Accepted Answer

This defines traceability.

Question 7

When using _____,suppliers assume the responsibility for managing inventories at customer locations through the use of highly automated electronic messaging systems,which allow the exchange of information between vendors and customers.

Accepted Answer

Automatic replenishment programs allow suppliers to view the inventory being held at the next tier of the supply chain in real time.

Question 8

The mode of transportation that provides the most accessibility is:

Accepted Answer

Motor carriers (trucks)can go to more locations than any of the other modes of transportation.

Question 9

Cross-docking:

Accepted Answer

Cross-docking is a tactic where materials or goods are unloaded from an outbound carrier and transferred directly to an inbound carrier with little or no storage taking place in between.

Question 10

All of the following are criteria used to choose a mode of transportation EXCEPT:

Accepted Answer

Criteria used include relative cost,transit time,reliability,capability,accessibility,and traceability.

Question 11

In which logistical component of the supply chain will you find distribution resource planning (DRP)a common feature?

Accepted Answer

Distribution resource planning (DRP)is an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer.

Question 12

All of the following are types of inputs used in both materials requirement planning and distribution resource planning EXCEPT:

Accepted Answer

Both inventory systems use various inputs,such as sales forecasts,available inventory,outstanding orders,lead times,and mode of transportation to be used,to determine what actions must be taken to replenish goods at all points in the supply chain.

Question 13

_____ is the direct electronic transmission,from computer to computer,of standard business forms between two organizations.When this technique is used,orders can become virtually paperless,and information about the order is available to both firms.

Accepted Answer

EDI is information technology that replaces the paper documents that usually accompany business transactions.

Question 14

ZuTech makes sensitive monitors for measuring exposure to hazardous materials.ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse and shipping docks.ZuTech should consider reducing the number of times an item is moved in the warehouse by installing a(n):

Accepted Answer

The goal of the materials-handling system is to move items quickly with minimal handling.

Question 15

One major advantage of pipelines over other modes of transportation is:

Accepted Answer

Pipelines are rarely interrupted by weather,traffic,or labor disputes.

Question 16

Upon investigating sales of a given HP printer by a retailer,the company found that orders from the merchant exhibited far bigger movements that what was seen by changes in actual sales of the item.This is an example of:

Accepted Answer

The bullwhip effect is a distortion that occurs within a supply chain when demand and supply are not aligned.

Question 17

Which of the following moves inventory into,within,and out of a warehouse?

Accepted Answer

A materials handling system is a method of moving inventory into,within,and out of the warehouse.

Question 18

Which of the following is the inventory control system that manages the replenishment of raw materials,supplies,and components from the supplier to the manufacturer?

Accepted Answer

This is the definition of materials requirement planning (MRP),which is also referred to as materials management.

Question 19

In which logistical component of the supply chain will you find electronic data interchange a common feature?

Accepted Answer

Order processing is becoming more automated through the use of computer technology known as electronic data interchange (EDI).

Question 20

_____ provides time utility to buyers and sellers and aids manufacturers in managing supply and demand.

Accepted Answer

Storage is necessary to match supply with demand and to provide a level of safety stock.

Quiz 14: Supply Chain Management