Deck 3: Role of Logistics in Supply Chains

Question 1

Materials handling is concerned with:

A) inventory levels.
B) breaking bulk.
C) scheduling trade-offs.
D) short-distance movement.

Answer 1

D

Question 2

The utility that is created by moving goods from production points to market points where demand exists is referred to as _____ utility.

A) form
B) place
C) time
D) possession

Answer 2

B

Question 3

The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.

Answer 3

False

Question 4

Time utility depends on:

A) when the carrier picks up the shipment.
B) transportation companies delivering on time.
C) proper forecasting.
D) having the product available when the user wants it.

Question 5

As the weight density of a product decreases, transportation cost per pound:

A) increases.
B) decreases.
C) stays the same.
D) can't be determined.

Question 6

Transportation is the physical movement or flow of goods.

Question 7

As the dollar value of a product decreases, its inventory value decreases.

Question 8

As the dollar value of a product increases, packaging costs:

A) increase.
B) decrease.
C) stay the same.
D) can't be determined.

Question 9

As a firm spends more on transportation service, cost of lost sales increases.

Question 10

Logistics creates which utility through production forecasting, production scheduling, and inventory control?

A) Form utility
B) Quantity utility
C) Time utility
D) Possession utility

Question 11

What is often the largest component of logistics costs?

A) Inventory costs
B) Transportation costs
C) Shipper-related costs
D) Administrative costs

Question 12

A logistics channel is a supply chain of network organizations engaged in transfer, storage, handling, communication, and other functions that contribute to the efficient flow of goods.

Question 13

Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics?

A) Product
B) Promotion
C) Price
D) Customer service

Question 14

To hold down distribution cost, the lowest cost carrier should always be used.

Question 15

Which of the answers below is an example of the creation of form utility by a logistics activity?

A) When lumber is cut and made into a chair
B) When a firm's finance manager approves customer purchases on a credit basis
C) When Dell combines components with software to produce a computer to a customer's specifications
D) When bulk products are broken and repackaged at a distribution center

Question 16

In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.

Question 17

As a firm spends more on transportation service, cost of lost sales:

A) increase.
B) decrease.
C) stay the same.
D) can't be determined.

Question 18

The utility created through the basic marketing activities is known as place utility.

Question 19

The value that is added to goods through a manufacturing or assembly process is:

A) form utility.
B) place utility.
C) time utility.
D) possession utility.

Question 20

The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.

Question 21

The most important trade-off in logistics is between:

A) warehousing and packaging.
B) inventory and packaging.
C) transportation and warehousing.
D) transportation and inventory.

Question 22

The text mentions four subdivisions of logistics. Pick one, define, and discuss.

Question 23

When a specific point in time, or level of production, is chosen and costs are developed for the various logistics cost centers, it is called:

A) least cost analysis.
B) short-run analysis.
C) cost center analysis.
D) link node analysis.

Question 24

An important sustainability issue that has received much more scrutiny in recent years is the:

A) focus on adequate inventory levels.
B) reduction in packaging waste by using alternate materials.
C) effort to move warehouse storage closer to consumers.
D) emphasis on materials handling and warehouse design.

Question 25

Explain the relationship between logistics and supply chain management?

Question 26

What product characteristics affect logistics costs? Discuss the effects of these characteristics on logistics costs.

Question 27

A(n) _____ relationship exists between the cost of lost sales and inventory cost.

A) reverse
B) proportional
C) inverse
D) nonlinear

Question 28

What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse?

A) Materials handling
B) Physical distribution
C) Business logistics
D) Order fulfillment

Question 29

The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs?

A) Warehousing costs
B) Transportation costs
C) Promotion costs
D) Packaging costs

Question 30

Logistics encompasses a relatively large number of managerial activities. Discuss five of these activities and why they are important to logistics systems.

Question 31

How does logistics add value in the economy? How does logistics add value for firms? What, if any are the differences?

Question 32

What are fixed spatial points where goods stop for storage or processing?

A) Nodes
B) Links
C) Cost centers
D) Fulfillment centers

Question 33

As the dollar value of a product decreases, its transportation cost:

A) increases.
B) decreases.
C) stays the same.
D) can't be determined.

Question 34

Why do companies analyze their logistics systems from the perspective of nodes and links?

Question 35

Physical distribution has a special relationship to marketing. What is the nature of the relationship between logistics and marketing? Is the relationship becoming more or less important? Why?

Question 36

A _____ analysis examines a logistics system over a long time period or range of output.

A) cost center
B) dynamic
C) link node
D) least cost