Question 1

The center-of-gravity method of determining a facility location:

Accepted Answer

The center-of-gravity method primarily focuses on minimizing the distance to various points of interest (such as supply points, markets, or materials), which inherently does not require the consideration of qualitative factors in location decisions. This method is quantitative, using coordinates and volumes to find an optimal location based on distance and quantity metrics.

Question 2

A company finds the following information about its customers and their locations:  The center of gravity is:

Accepted Answer

The answer of A company finds the following information about...

Question 3

Zanda Corp.had established a production plant in Thailand.Recently it decided to close the plant and move production to Mexico.This decision was likely made after Zanda:

Accepted Answer

Moving production from Thailand to Mexico suggests that Zanda evaluated the total landed cost of production in both locations and determined that production in Mexico would result in lower costs overall.

Question 4

What is the center of gravity according to the following information?

Accepted Answer

Without knowing what object the given information refers to, it is impossible to calculate the exact center of gravity. However, based on the options given, the closest choice is option B since it has the highest values for both X and Y which indicates that it is more towards the top right corner of the given coordinate system.

Question 5

A company has determined the ideal number of locations by looking at the trade-offs described in the text.It decides to open more distribution centers than this "ideal." This decision would most likely result in ___________ and __________.

Accepted Answer

Opening more distribution centers than the ideal number typically results in better service to customers due to reduced delivery times and increased responsiveness. However, it also leads to higher costs because of the increased expenses associated with operating more facilities.

Question 6

3PLs:

Accepted Answer

3PLs (third-party logistics providers) specialize in consolidating storage and shipments across multiple customers, reducing overall logistics costs and increasing efficiency. They may also provide additional services such as transportation, inventory management, and order fulfillment, but their primary focus is on consolidating logistics operations. This can actually help reduce supply chain risk by minimizing the impact of disruptions on any single customer. 3PLs typically have significant investments in information systems to track and manage logistics operations across multiple clients.

Question 7

The sum of all product- and logistics-related costs is:

Accepted Answer

The sum of all product- and logistics-related costs is known as the total landed cost. This includes the cost of the product, transportation, customs duties, taxes, and other fees associated with getting the product to its final destination. Total cost of ownership refers to the total lifetime costs of a product, including maintenance and repair costs. Cost-to-cost trade-offs and cost-to-service trade-offs are terms used in supply chain management to weigh the costs and benefits of different supply chain strategies.

Question 8

A company decides to reduce its number of distribution centers (logistically postpone).This decision would result in ___________ or __________.

Accepted Answer

Reducing the number of distribution centers would result in longer transportation distances and higher transportation costs. It may also lead to poorer service to customers due to longer lead times and increased delivery times.

Question 9

Which of the following best describes the concept of total landed cost?

Accepted Answer

Total landed cost is the sum of all product-related and logistics-related costs including transportation, duties, taxes, customs fees, handling, warehousing, and any other costs associated with getting the product into the customer's hands.

Question 10

Zanda Corp.decided to use a more expensive mode of transportation to deliver orders to customers.This decision was likely made after an examination of:

Accepted Answer

The decision to use a more expensive mode of transportation indicates that the company is willing to incur higher costs in order to improve the level of service provided to customers. This suggests a cost-to-service trade-off analysis was performed, where the benefits of improved service were weighed against the costs of using a more expensive transportation method.

Question 11

Zanda Corporation's CEO watched in amazement and frustration as workers handled and loaded individual products onto trucks.She felt handling the individual items was very cumbersome.She should investigate the possibility of:

Accepted Answer

Containerization involves grouping individual products into larger containers or units, which can then be easily handled and loaded onto trucks. This can greatly increase efficiency and reduce the time and effort required for manual handling of individual items. RFID, AS/RS, and private transportation may also offer some benefits, but don't address the specific issue of cumbersome handling of individual products.

Question 12

In determining the number of facility locations,the lowest total cost is typically:

Accepted Answer

The lowest total cost in determining the number of facility locations typically involves a trade-off between transportation costs and inventory costs, rather than being the lowest cost of either category alone.

Question 13

What is the center of gravity according to the following information?

Accepted Answer

The answer of What is the center of gravity according...

Question 14

Stockouts are very costly for a medical device company.The logistics manager has decided to hold more inventory to reduce stockouts.This is an example of:

Accepted Answer

The logistics manager's decision to hold more inventory is a trade-off between the cost of holding that inventory and the cost of stockouts, which is a cost-to-service trade-off. A Market consolidation strategy is a growth strategy where companies merge with other firms in the same market to increase market share. Value density refers to the value of a product relative to its weight and size, and is not relevant in this scenario.

Question 15

Companies that provide a bundle of logistical services to their customers are called:

Accepted Answer

Companies that provide a bundle of logistical services to their customers are called 3PLs or third-party logistics providers. AS/RS providers (A) specialize in automated storage and retrieval systems, common carriers (B) provide transportation services, and contract logistics companies (D) handle the entire logistics process for a specific client but may not provide a bundle of services to multiple customers.

Question 16

All of the following are considered when determining total landed costs EXCEPT:

Accepted Answer

Product liability costs are not typically considered in the calculation of total landed costs, which generally include costs directly related to the production, transportation, and delivery of goods.

Question 17

The benefits of automated storage and retrieval systems (AS/RS)include all of the following EXCEPT:

Accepted Answer

The benefits of AS/RS systems include fewer errors in order picking, increased facility utilization, and lower direct labor costs. However, AS/RS systems involve high fixed costs for installation and maintenance. Therefore, the correct answer is option D, which states that AS/RS systems do not have lower fixed costs.

Question 18

Which of the following is LEAST likely to be considered when determining total landed costs?

Accepted Answer

Product warranty costs are typically not included in total landed costs as they are not directly related to the transportation and import/export of goods. Landed costs usually include factors such as transportation costs, tariffs and duties, customs fees, insurance, and storage fees. Raw material costs, currency exchange rates, and the cost of inventory held as safety stock are all commonly considered in determining total landed costs.

Question 19

Packaging paper towels with six rolls in a package:

Accepted Answer

Packaging paper towels with six rolls in a package is an example of unitization, which involves grouping individual items together into larger, more manageable units. This can make materials handling more efficient and less complex, as well as reduce material handling costs by allowing for easier transportation and storage of goods. RFID (A) is not necessarily involved in this process, and it is not necessarily true that this practice would increase the complexity of materials handling (D).

Quiz 9: Customer Service Management

The center-of-gravity method of determining a facility location:

A company finds the following information about its customers and their locations: The center of gravity is:

Zanda Corp.had established a production plant in Thailand.Recently it decided to close the plant and move production to Mexico.This decision was likely made after Zanda:

What is the center of gravity according to the following information?

A company has determined the ideal number of locations by looking at the trade-offs described in the text.It decides to open more distribution centers than this "ideal." This decision would most likely result in _ and .

3PLs:

The sum of all product- and logistics-related costs is:

A company decides to reduce its number of distribution centers (logistically postpone) .This decision would result in _ or .

Which of the following best describes the concept of total landed cost?

Zanda Corp.decided to use a more expensive mode of transportation to deliver orders to customers.This decision was likely made after an examination of:

Zanda Corporation's CEO watched in amazement and frustration as workers handled and loaded individual products onto trucks.She felt handling the individual items was very cumbersome.She should investigate the possibility of:

In determining the number of facility locations,the lowest total cost is typically:

What is the center of gravity according to the following information?

Stockouts are very costly for a medical device company.The logistics manager has decided to hold more inventory to reduce stockouts.This is an example of:

Companies that provide a bundle of logistical services to their customers are called:

All of the following are considered when determining total landed costs EXCEPT:

The benefits of automated storage and retrieval systems (AS/RS) include all of the following EXCEPT:

Which of the following is LEAST likely to be considered when determining total landed costs?

Packaging paper towels with six rolls in a package:

Quiz 9: Customer Service Management

The center-of-gravity method of determining a facility location:

A company finds the following information about its customers and their locations: The center of gravity is:

Zanda Corp.had established a production plant in Thailand.Recently it decided to close the plant and move production to Mexico.This decision was likely made after Zanda:

What is the center of gravity according to the following information?

A company has determined the ideal number of locations by looking at the trade-offs described in the text.It decides to open more distribution centers than this "ideal." This decision would most likely result in ___________ and __________.

3PLs:

The sum of all product- and logistics-related costs is:

A company decides to reduce its number of distribution centers (logistically postpone) .This decision would result in ___________ or __________.

Which of the following best describes the concept of total landed cost?

Zanda Corp.decided to use a more expensive mode of transportation to deliver orders to customers.This decision was likely made after an examination of:

Zanda Corporation's CEO watched in amazement and frustration as workers handled and loaded individual products onto trucks.She felt handling the individual items was very cumbersome.She should investigate the possibility of:

In determining the number of facility locations,the lowest total cost is typically:

What is the center of gravity according to the following information?

Stockouts are very costly for a medical device company.The logistics manager has decided to hold more inventory to reduce stockouts.This is an example of:

Companies that provide a bundle of logistical services to their customers are called:

All of the following are considered when determining total landed costs EXCEPT:

The benefits of automated storage and retrieval systems (AS/RS) include all of the following EXCEPT:

Which of the following is LEAST likely to be considered when determining total landed costs?

Packaging paper towels with six rolls in a package:

A company has determined the ideal number of locations by looking at the trade-offs described in the text.It decides to open more distribution centers than this "ideal." This decision would most likely result in _ and .

A company decides to reduce its number of distribution centers (logistically postpone) .This decision would result in _ or .