Deck 1: An Overview of Logistics

Question 1

What concept refers to the storage of finished product and movement to the customer?

A)Inbound logistics
B)Supply chain management
C)Physical distribution
D)Materials management

Answer 1

C

Question 2

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.

A)supply chain
B)systems
C)interfunctionality
D)total cost

Answer 2

B

Question 3

All of the following terms have been used to refer to business logistics except:

A)business logistics
B)industrial distribution
C)logistics management
D)physical distribution
E)all of the above are correct

Answer 3

E

Question 4

A cost trade-off is a situation where:

A)all costs react according to their individual degrees of inflation in the economy
B)all costs are reflected as a percentage variation from standard costs
C)some costs increase and some costs decrease
D)some costs are eliminated by efficient management controls

Question 5

World trade grew at an average annual rate of approximately ___________ percent between 1997 and 2007.

A)10
B)8
C)6
D)4

Question 6

What two logistics activities make the heaviest use of the Internet?

A)Warehousing and inventory management
B)Purchasing and transportation
C)Inventory management and purchasing
D)Transportation and warehousing

Question 7

___________ refers to the removal of intermediaries between producer and consumer.

A)Direct channels
B)Market demassification
C)Consolidation
D)Disintermediation

Question 8

___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.

A)Time
B)Place
C)Form
D)Possession

Question 9

"How well a company does what it says it's going to do" represents ___________.

A)efficiency
B)productivity
C)leading edge logistics
D)effectiveness

Question 10

The ___________ department often measures inventory in terms of its cost or value in dollars,whereas ___________ tends to measure inventory in terms of units.

A)Marketing; logistics
B)Finance; production
C)Marketing; production
D)Finance; logistics

Question 11

___________ are characterized by large market share and low prices.

A)Category killers
B)Mass merchandisers
C)Power retailers
D)Do-it-yourself

Question 12

Logistics clearly contributes to ___________ and ___________ utility.

A)time; place
B)form; time
C)place; form
D)possession; time
E)none of the above

Question 13

The ___________ concept suggests that there are an ever-increasing number of market segments with distinct preferences.

A)rhochrematics
B)relationship marketing
C)market demassification
D)niche marketing

Question 14

Every customer getting the same type and levels of logistics service refers to ___________.

A)tailored logistics
B)mass logistics
C)effectiveness
D)efficiency

Question 15

All of the following are types of economic utility,except:

A)Time
B)Production
C)Place
D)Possession
E)All of the above are types of economic utility

Question 16

What concept refers to "how well company resources are used to achieve what a company promises it can do?"

A)Efficiency
B)Productivity
C)Reengineering
D)Effectiveness

Question 17

The movement and storage of materials into a firm refers to:

A)physical distribution
B)materials management
C)materials handling
D)supply chain management

Question 18

___________ utility refers to having products available where they are needed by customers.

A)Possession
B)Time
C)Place
D)Form

Question 19

Logistics managers use the ___________ approach to coordinate inbound logistics,materials management,and physical distribution in a cost efficient manner.

A)total cost
B)supply chain
C)mass logistics
D)interfunctional

Question 20

Which of the following is not a reason for the increased importance of logistics?

A)growing power of manufacturers
B)reduction in economic regulation
C)globalization of trade
D)technological advances
E)all of the above are reasons

Question 21

The current definition of logistics,as promulgated by the Council of Supply Chain Management Professionals,suggests that logistics is part of the supply chain process.

Question 22

Absolute and relative logistics costs in relation to Gross Domestic Product vary from country to country.

Question 23

Which channel covers the movement of title to the goods?

A)promotions
B)logistics
C)finance
D)ownership

Question 24

____________ refers to being out of an item at the same time there is demand for it.

A)Intensive distribution
B)Stockout
C)Rhochrematics
D)Supplier indifference

Question 25

The four general types of economic utility are production,possession,time,and place.

Question 26

Logistics is only concerned with forward flows,that is,those directed towards the point of consumption.

Question 27

Which of the following is not a logistics-related activity?

A)Customer service
B)International logistics
C)Materials handling
D)Procurement
E)All of the above are logistics-related activities

Question 28

____________ refers to breaking a homogenous supply into smaller lots.

A)Sorting out
B)Allocating
C)Accumulating
D)Assorting

Question 29

____________ is bringing together similar stocks from different sources.

A)Accumulating
B)Assorting
C)Auditing
D)Allocating

Question 30

U.S.News & World Report suggests that logistics employment should increase by ____________ percent through 2018.

A)10
B)15
C)20
D)25

Question 31

___________ refers to the delay of value-added activities such as assembly,production,and packaging to the latest possible time.

A)Building blocks
B)Deferral
C)Demurrage
D)Postponement

Question 32

Logistics clearly contributes to time and form utility.

Question 33

A common interface between production and logistics involves:

A)the use of plastic versus wood pallets
B)the mode of transportation
C)shipment pricing
D)the length of production runs

Question 34

The four basic components of the marketing mix include all of the following except:

A)price
B)production
C)product
D)place

Question 35

Landed costs refer to:

A)a product that is shipped via surface transport
B)a product that is quoted cash on delivery
C)a prepaid shipment
D)a price that includes both the cost of the product plus transportation to the buyer

Question 36

Which of the following is not part of the marketing channel?

A)the logistics channel
B)the negotiations channel
C)the promotion channel
D)the finance channel
E)all are part of the marketing channel

Question 37

The ownership channel consists of all parties except:

A)customers
B)manufacturers
C)wholesalers
D)retailers

Question 38

The most costly logistics activity in many firms is ____________.

A)industrial packaging
B)warehousing management
C)order management
D)transportation management

Question 39

Branding alliances allow customers to purchase products from two or more name-brand retailers at one store location.Which of the following statements about branding alliances is false?

A)They offer potential customers convenience by satisfying multiple needs at one place
B)They boost brand awareness
C)They don't create any logistical challenges
D)They increase customer spending per transaction
E)All of the above are true

Question 40

Channel intermediaries:

A)assume temporary ownership of the goods
B)fill niches
C)disappear as the market becomes organized
D)tend to lack focus

Question 41

Stockouts refer to a situation where a company is out of an item at the same time that there is demand for that item.

Question 42

Physical distribution is synonymous with materials management.

Question 43

The Internet has done little to improve logistical effectiveness and efficiency.

Question 44

In mass logistics,groups of customers with similar logistical needs and wants are provided with logistics services appropriate to those wants and needs.

Question 45

The purpose of logistics is to maximize customer service.

Question 46

Logistics has played a minor role in the growth of global trade.

Question 47

Market demassification suggests that an ever-increasing number of market segments have distinct preferences.

Question 48

Reductions in economic regulation allowed individual transportation companies flexibility in pricing and service.

Question 49

Logistical principles apply only to for-profit organizations.

Question 50

The finance department tends to measure inventory in terms of units while logistics tends to measure inventory in terms of its cost / value.

Question 51

Postponement is the delay of value-added activities such as assembly,production,and packaging to the latest possible time.

Question 52

Logistical decisions tend not to be impacted by marketers' growing emphasis on offering sustainable products.

Question 53

The key to the total cost approach is that all relevant cost items are considered simultaneously when making a decision.

Question 54

Superior logistics is an essential component of corporate strategies for many power retailers.

Question 55

The systems approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of the major functional areas of a firm.

Question 56

Disintermediation refers the removal of intermediaries between producer and consumer.

Question 57

Interfunctional logistics attempts to coordinate inbound logistics,materials manage?ment,and physical distribution in a cost efficient manner that supports an organization's customer service objectives.

Question 58

Logistics offers many companies an important route for creating marketing superiority.

Question 59

Long production runs sometimes result in excessive inventory of products with limited demand for them.

Question 60

Landed costs refer to the price of a product at the source.

Question 61

The most significant contribution that the logistics channel makes to the overall channel process is the sorting function.

Question 62

Demand forecasting is not considered to be a logistics-related activity.

Question 63

A broker is a type of intermediary often associated with the negotiations channel.

Question 64

There are relatively few opportunities for employment in the logistics sector.

Question 65

Advertising agencies are a channel intermediary that might be found in the promotions channel.

Question 66

Many promotional decisions,such as pricing campaigns that lower the price of certain items,require close coordination between marketing and logistics.

Question 67

List and discuss the advantages and disadvantages of stocking Super Gyms at the distribution centers and then having the truck that make deliveries from the distribution center to the retail stores and also make deliveries of Super Gyms to individual customers.

Question 68

Intermediaries assume ownership of goods while they're in the marketing channel.

Question 69

List and discuss the advantages and disadvantages of purchasing a two-wheeled trailer for each store to use for delivering Super Gyms.

Question 70

List and discuss the advantages and disadvantages of having local trucking companies deliver the Super Gym from the retail stores to the customers.

Question 71

List and discuss the advantages and disadvantages of charging the customer for home delivery if they are unable to carry the Super Gym home.

Question 72

There is no linkage between the promotions and logistics channel.

Question 73

Which alternative would you prefer? Why?

Question 74

A commonly used logistics intermediary is the freight forwarder.

Question 75

The negotiations channel is the one where buy and sell agreements are reached.

Question 76

The financing channel handles a company's credit and payment for goods.

Question 77

Transportation represents the most costly logistics activity in many organizations.

Question 78

The sorting function has four steps.

Question 79

The sorting function takes place between retailers and the consumer.

Question 80

It is better for a logistics manager to be a generalist rather than a specialist.