Question 1

Logistics affects the supply chain function by:

Accepted Answer

Logistics plays a crucial role in determining how deliveries can be made in a timely manner, creating the flow of goods between supply chain partners, and providing time and place utility. Therefore, all of these options are correct.

Question 2

Which of the following is a direct benefit from the adoption of NAFTA?​

Accepted Answer

NAFTA was specifically created to increase trade between the U.S., Mexico, and Canada by eliminating tariffs and other trade barriers. While it may have indirectly affected other aspects, such as immigration patterns and job opportunities, the primary goal and direct benefit of NAFTA was increased trade among these countries. Option B is partially correct as it can be a benefit for the US, but NAFTA was not created to provide manufacturing job opportunities. Option D is incorrect as NAFTA was only meant for the trade between US, Canada, and Mexico, not China.

Question 3

Which of the following is NOT a characteristic of cost-of-service pricing?

Accepted Answer

Cost-of-service pricing is based on the carrier's costs of providing transportation, so prices are not set at the highest level the market will bear. Instead, prices are meant to cover the carrier's costs and provide a fair profit margin.

Question 4

Which of the following modes of cargo transport can be characterized as being the most inexpensive and very slow,yet good for transporting very heavy goods a long-distance?​

Accepted Answer

Water carriers, such as ships or barges, are the most inexpensive mode of cargo transport and are suitable for transporting very heavy goods over long distances. However, they are also very slow due to their reliance on natural waterways and can take several weeks or even months to complete a journey.

Question 5

According to the text,a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as:

Accepted Answer

The answer of According to the text,a warehouse location strategy...

Question 6

Which of the following is NOT consistent with a decentralized warehousing system?​

Accepted Answer

A decentralized warehousing system involves spreading inventory across multiple locations, which can increase safety stocks and lead times due to the need to maintain inventory levels at each location. However, it can also result in lower transportation fees due to reduced distances traveled and potentially quicker delivery times. While there may be some cost savings in terms of reduced transportation costs, the overall operating costs may not necessarily be lower as there are additional costs involved in managing multiple warehouses. Therefore, option D is not consistent with a decentralized warehousing system.

Question 7

Which of the following types of warehouses takes a large number of LTL shipments and repackages them in TL or CL quantities to a manufacturer or user-facility located in another area or region?​

Accepted Answer

A consolidation warehouse takes LTL shipments and combines them into TL or CL quantities for transportation to a manufacturer or user-facility in another area or region. Private warehouses are owned and operated by a single company and are not typically used for consolidating shipments. Breakbulk warehouses are used for storing and transferring goods between different modes of transportation, but do not necessarily involve combining LTL shipments. Public warehouses are operated by third-party logistics providers and offer storage and distribution services, but may not specialize in consolidating LTL shipments.

Question 8

Which of the following carriers typically transports goods for the company that owns the carrier,they are not subject to economic regulation,and since the fleets are rather large the cost of transport is very likely less than if the company had hired another company to provide the service?

Accepted Answer

Private Carrier typically transports goods for the company that owns the carrier, they are not subject to economic regulation, and since the fleets are rather large the cost of transport is very likely less than if the company had hired another company to provide the service.

Question 9

According to the text,FOB destination pricing is typically preferred for all of the following EXCEPT:

Accepted Answer

FOB destination pricing is typically preferred for high-value shipments, when the buyer has little transportation expertise, and for small shipments because it simplifies the process for the buyer and ensures that the seller is responsible for the goods until they are received. However, whether the order is reoccurring or not does not inherently affect the preference for FOB destination pricing.

Question 10

It is argued that transportation deregulation is good because:

Accepted Answer

Transportation deregulation encourages competition, which can lead to lower prices and better service for consumers. It also allows prices to adjust based on market factors such as supply, demand, and negotiations between parties. Therefore, both A and B are valid reasons why transportation deregulation is good.

Question 11

A furniture manufacturer presently owns a total of four warehouses in the following cities Sacramento,Phoenix,Cincinnati,and Atlanta.The average inventory levels for the four warehouses are 8000 units,10,000 units,10,000 units,and 8000 units,respectively.They plan on moving all of their inventory to one warehouse in Memphis.Using the square root rule,what will be the required average inventory level at the new central Memphis warehouse required to maintain the system's present customer service level? (Choose the closest answer.)

Accepted Answer

According to the square root rule, the optimal inventory level at a central warehouse is equal to the square root of the sum of squares of inventory levels at all warehouses. Applying the formula, we get:
√(8000² + 10000² + 10000² + 8000²) = √(144,000,000) ≈ 12,000 units
Therefore, the required average inventory level at the new central Memphis warehouse will be approximately 12,000 units, which is closest to option B) 18000.

Question 12

Which of the following legislative acts is NOT in support of transportation deregulation?

Accepted Answer

The answer of Which of the following legislative acts is...

Question 13

Foreign-trade zones are:

Accepted Answer

Foreign-trade zones are secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes. This is done to encourage trade and increase competitiveness for U.S. companies in the global marketplace.

Question 14

The following are all examples of lean warehousing capabilities EXCEPT:

Accepted Answer

Decreased assembly operations are not a capability of lean warehousing. The other options, greater emphasis on crossdocking, reduced lot sizes and shipping quantities, and increased automation, are all examples of lean warehousing capabilities.

Question 15

The first major transportation regulation in the U.S.was which of the following:

Accepted Answer

The Granger Laws were the first major attempt to regulate transportation in the U.S., specifically targeting railroad practices in the 1870s. These laws were enacted by Midwestern states to regulate rising fare prices of transportation and grain storage.

Question 16

The acts of receiving shipments,breaking down shipments,repackaging shipments,and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as:

Accepted Answer

The process described in the question is known as crossdocking, which involves receiving large shipments, breaking them down quickly, and immediately sending the components out to their destinations without long-term storage. This method reduces handling costs, inventory costs, and transit time. Piggybacking refers to using one transportation mode to supplement another, transshipping is the process of transferring goods to another vessel for further transportation, and customs brokering involves navigating customs regulations for international shipments.

Question 17

Which of the following international intermediaries helps foreign buyers and sellers find each other and then handles all of the shipping arrangements and documentation preparation?

Accepted Answer

A trading company helps foreign buyers and sellers find each other and also handles all of the shipping arrangements and documentation preparation. Customs broker provides assistance in clearing goods through customs, Foreign freight forwarder arranges for transportation and shipping of goods while the NVOCC (Non-Vessel Operating Common Carrier) is a type of ocean freight forwarder that offers transporting goods through ocean carrier.

Question 18

What does LTL stand for in the transportation industry?

Accepted Answer

LTL stands for Less-Than-Truckload, which refers to a shipment of freight that does not require an entire truck but is not small enough for parcel shipping.

Question 19

The process of planning,implementing,and controlling procedures for the efficient and effective transportation and storage of goods including services,and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirementsis also referred to as:

Accepted Answer

The description given refers to the concept of logistics, which involves the comprehensive management of transporting and storing goods and services. Operations relate to the overall management of business activities, while transportation planning primarily focuses on the organization of transportation modes and routes. Procurement refers to the acquisition of goods and services, rather than their transportation and storage.

Question 20

Which of the following would be considered an act of deregulation?​

Accepted Answer

The Trucking Industry Regulatory Reform Act freed motor carriers from filing rates with the Interstate Commerce Commission, which is a form of deregulation. Choices A, B, and D are all examples of regulations, such as establishing maximum rates or giving the Interstate Commerce Commission control over certain industries.

Quiz 9: Domestic Usand Global Logistics