Question 1

A firm that maintains a high-volume of demand throughout the year is a better candidate for ________ logistics services than a firm with sporadic demand.

Accepted Answer

The answer of A firm that maintains a high-volume of...

Question 2

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. Assuming no package had more than one error, Perfection's percent perfect order is:

Accepted Answer

The total number of packages with errors is 45,000 + 28,000 + 20,000 = 93,000. 
So the number of perfect orders is 3.1 million - 93,000 = 3,007,000. 
Therefore, the percent perfect order is (3,007,000/3,100,000) x 100% = 96.98%, which rounds up to 97%.

Question 3

An optimal design for a reverse logistics system is usually a simple reversal of the forward logistics system.

Accepted Answer

Reverse logistics involves unique challenges such as handling returns, managing damaged or defective products, and disposing of waste materials. A simple reversal of the forward logistics system may not address these challenges effectively and efficiently. An optimal design for a reverse logistics system requires careful planning and consideration of these specific challenges.

Question 4

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:

Accepted Answer

The landed cost includes the purchase price, transportation cost, and packing/loading cost: $4 + $6 + $1 = $11 per bale.

Question 5

Last year the Monroe Logistics Company reported 40,000 damaged deliveries, 18,000 deliveries to the wrong address, 15,000 late deliveries, 1,200 deliveries billed incorrectly, and 127,000 deliveries handled properly. Assuming no delivery had more than one error, Monroe's percent perfect order is:

Accepted Answer

The percent of perfect orders is calculated by dividing the number of deliveries handled properly by the total number of deliveries, then multiplying by 100.

Total deliveries = 40,000 + 18,000 + 15,000 + 1,200 + 127,000 = 201,200
Proper deliveries = 127,000

Proper deliveries / Total deliveries x 100 = 127,000 / 201,200 x 100 = 63%

Therefore, the percent perfect order is 63%.

Question 6

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

Accepted Answer

Reverse logistics is the process of handling the flow of products, such as returns, from the point of consumption back to the point of origin for the purpose of recapturing value or proper disposal. In this scenario, returning the Garden Weasel would involve reverse logistics to transport the product back to the manufacturer for a refund.

Question 7

The Hurricane Fur Wizards that sold two for $19.99 in July began to make their way back to the supplier in late August thanks to numerous design flaws and some rather spectacular headlines. Which of these statements is most likely true?

Accepted Answer

It is likely that the return of the Hurricane Fur Wizards will cost more than their original shipping cost because of the design flaws and the need to ship them back. There is no information to support any of the other statements as true.

Question 8

Last year the Monroe Logistics Company reported 4,000 damaged deliveries, 1,000 deliveries to the wrong address, 500 late deliveries, and 200 deliveries billed incorrectly. Assuming no delivery had more than one error, how many deliveries were properly handled if their percent perfect order is 87%?

Accepted Answer

The total number of deliveries is 4000 + 1000 + 500 + 200 = 5700. If the percent perfect order is 87%, then the number of properly handled deliveries is 5700 * 0.87 = 4959.

Question 9

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 shipping.

Accepted Answer

The landed cost includes all costs associated with getting a product from the manufacturer to its final destination, not just to the point of shipping. This encompasses the total expenses of producing, storing, transporting, and importing goods, including customs, duties, taxes, and any other charges incurred along the way.

Question 10

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

Accepted Answer

The perfect order metric measures the overall effectiveness and accuracy of the logistics process in meeting customer expectations, while the landed cost metric assesses the efficiency of logistics by including all costs associated with getting the product to the customer, such as transportation, customs duties, and taxes.

Question 11

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:

Accepted Answer

The firm that specializes in transferring cargo to the actual carrier is acting as a freight forwarder. A freight forwarder arranges and coordinates shipments of goods from one place to another, and they typically work with various carriers and logistics providers to do so. They are often called upon to handle complex shipments that involve multiple transport modes and customs requirements, making them an important part of the international trade ecosystem.

Question 12

Ocho deposited the package neatly on the front porch - it was exactly what Lisa ordered, delivered on time and in the right quantity. Ocho's delivery system has completed a perfect order.

Accepted Answer

The statement explicitly states that the package delivered by Ocho was exactly what Lisa ordered, delivered on time and in the right quantity, indicating a perfect order. Therefore, the statement is true.

Question 13

The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago. Sadly, it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon, it was an expensive trip. He packed a cooler with $12 worth of ice regardless of the quantity of shrimp he bought to bring home. The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler. What is the landed cost of a pound of shrimp?

Accepted Answer

The total cost includes the cost of shrimp, the cost of gas for the round trip, and the cost of ice. The round trip distance is 685 miles one way, so it's 1370 miles round trip. At 25 miles per gallon, the car uses 1370 / 25 = 54.8 gallons of gas. At $1.88 per gallon, the gas cost is 54.8 * $1.88 = $103.024. The cost of ice is $12. The cost of 35 pounds of shrimp at $7.99 per pound is 35 * $7.99 = $279.65. The total cost is $103.024 (gas) + $12 (ice) + $279.65 (shrimp) = $394.674. The landed cost per pound of shrimp is $394.674 / 35 = $11.276, which rounds to $11.28 per pound.

Question 14

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

Accepted Answer

The answer of A(n)________ can handle shipments on an as-needed...

Question 15

The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago. Sadly, it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon, it was an expensive and lengthy trip. The cheapest plane tickets that were routinely available cost $199 round trip, but occasionally there was a super sale where the price dropped lower than that. He always packed a cooler with $12 worth of ice regardless of how much shrimp he actually bought. The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler. What is the price of round trip airfare that would make the landed cost of a pound of shrimp the same for both driving and flying?

Accepted Answer

To find the price of round trip airfare that would make the landed cost of a pound of shrimp the same for both driving and flying, we need to calculate the total cost of driving to New Orleans and buying shrimp and compare it to the cost of flying to New Orleans and buying shrimp.

Total cost of driving:
Distance = 685 miles one way 
Gas cost = 685 miles / 25 miles per gallon * $1.88 per gallon = $50.28 round trip 
Shrimp cost = 35 pounds * $7.99 per pound = $279.65 
Total cost = $50.28 + $279.65 + $12 (for ice) = $341.93

Total cost of flying: 
Airfare cost = $199 (or lower) 
Shrimp cost = 35 pounds * $7.99 per pound = $279.65 
Total cost = $199 + $279.65 + $12 (for ice) = $490.65

Now we need to find the airfare price that would make the total cost of flying the same as the total cost of driving:

$341.93 - $279.65 = $62.28 
$62.28/2 = $31.14 (the cost savings of driving one way)

$490.65 - $279.65 = $211 
$211/2 = $105.50 (the additional cost of flying one way)

$105.50 + $199 = $304.50 (round trip airfare cost that would make the landed cost of a pound of shrimp the same for both driving and flying)

So the answer is C) $103

Question 16

The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago. Sadly, it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon, it was an expensive and lengthy trip. Therefore he bought the cheapest plane tickets he could muster at $299 round trip and packed a cooler with $12 worth of ice. The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler. What is the landed cost of a pound of shrimp?

Accepted Answer

The answer of The landlord's favorite place to buy shrimp...

Question 17

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.

Accepted Answer

A common carrier is available to carry any shipments that come their way, while a contract carrier operates under long-term contractual agreements with their clients.

Question 18

A reverse logistics system handles repairs, recycling, returns and remanufacturing.

Accepted Answer

A reverse logistics system includes activities such as repairs, recycling, returns, and remanufacturing.

Question 19

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.

Accepted Answer

Both highway and air transportation offer fast and reliable delivery, making them the best choices for consistently achieving a high level of on-time delivery.

Question 20

Which of these statements about reverse logistics is BEST?

Accepted Answer

Reverse logistics systems often deal with returns, recycling, and disposal, which can be more complex and less cost-efficient than forward logistics due to unpredictability and additional handling requirements.

Quiz 8: Logistics