Question 1

Intermodal transportation refers to transportation that occurs across state lines.

Accepted Answer

Intermodal transportation refers to the use of two or more different modes of transportation in moving goods from origin to destination, not specifically across state lines.

Question 2

Warehousing activities can be organized into three basic functions: storage, movement, and re-stocking.

Accepted Answer

Warehousing activities are typically organized into two basic functions: storage and movement. Re-stocking is considered a part of the movement function, not a separate basic function.

Question 3

Costs required to make or buy a product including taxes, insurance and warehousing space to store the goods are referred to as inventory carrying costs.

Accepted Answer

Inventory carrying costs include all expenses related to holding and storing unsold goods, which encompasses taxes, insurance, and warehousing costs among others.

Question 4

When a company recognizes the importance of sharing supply and demand information with suppliers and customers, it is practicing supply chain management.

Accepted Answer

The answer of When a company recognizes the importance of...

Question 5

Effective materials management supports marketing objectives by making sure that goods are available to ship to customers in an efficient and effective manner.

Accepted Answer

Effective materials management ensures that the right materials are available for production at the right time, which in turn ensures that finished goods are ready to be shipped to customers when needed, supporting marketing objectives by meeting customer demand efficiently.

Question 6

The terms push strategy and responsive supply chain are synonymous.

Accepted Answer

A push strategy in supply chain management involves producing goods based on forecasted demand, while a responsive supply chain (often associated with a pull strategy) focuses on responding quickly to actual demand. They are not synonymous but represent different approaches.

Question 7

Put-away refers to moving goods to their temporary or semi-permanent storage location and updating inventory records.

Accepted Answer

Put-away is the process of moving goods from the receiving area to their designated storage location in a warehouse or distribution center and updating the inventory records to reflect their new location.

Question 8

Logistics is that part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer.

Accepted Answer

Logistics is indeed a crucial component of supply chain management focused on the efficient and effective movement and storage of goods, services, and related information from the point of origin to the point of consumption to meet customer requirements.

Question 9

The main advantage of a supply chain pull strategy is that it allows firms to achieve economies of scale.

Accepted Answer

A supply chain pull strategy focuses on producing goods in response to actual demand rather than forecasting, which reduces inventory costs and waste but does not primarily aim at achieving economies of scale.

Question 10

Transportation management is part of a firm's distribution activities.

Accepted Answer

Transportation management is a key element of the logistics and distribution process, involving the planning, execution, and control of moving goods and services from origin to destination efficiently.

Question 11

A set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer is referred to as a marketing chain.

Accepted Answer

This description refers to a supply chain, not a marketing chain. A supply chain involves the flow of goods, services, money, and information from suppliers to customers, while marketing chain specifically pertains to the distribution aspect of marketing.

Question 12

Distribution involves holding inventories of both intermediate materials and finished goods.

Accepted Answer

The answer of Distribution involves holding inventories of both intermediate...

Question 13

Enterprise resource planning (ERP)systems are data management systems that are used exclusively to determine efficient transportation routes.

Accepted Answer

ERP systems are integrated management systems that help manage and integrate the important parts of a business, including planning, purchasing, inventory, sales, marketing, finance, human resources, and more, not exclusively for determining efficient transportation routes.

Question 14

Picking involves unloading goods from a carrier, updating inventory records, and quality inspection, if required.

Accepted Answer

Picking involves selecting and gathering products from a warehouse to fulfill customer orders, not unloading goods from a carrier.

Question 15

Of all the logistics functions, transportation management is the least important.

Accepted Answer

Transportation management is crucial in logistics as it involves the movement of goods from one location to another, directly affecting delivery times, costs, and overall supply chain efficiency.

Question 16

An omnichannel is a type of retail that offers different methods of shopping and delivery of products to consumers.

Accepted Answer

Omnichannel retail refers to a multichannel approach to sales that seeks to provide customers with a seamless shopping experience, whether they're shopping online from a mobile device, a laptop, or in a brick-and-mortar store. It integrates various methods of shopping and delivery to offer a cohesive customer experience.

Question 17

Due to the universal accessibility of motor transport, most shipments will include some leg of the journey that will be completed by truck.

Accepted Answer

Trucks offer flexible point-to-point service, making them a common choice for at least a portion of the transportation journey for many types of shipments, especially for the "last mile" delivery.

Question 18

During the maturity and decline stages, a firm may want to stick with the maximum flexibility a pull strategy allows or follow a hybrid strategy that commits to inventory of raw and packaging materials without committing to a large amount of finished goods inventory.

Accepted Answer

The answer of During the maturity and decline stages, a...

Question 19

A purchase order is a legal obligation to buy from a supplier a certain amount of goods for an agreed upon price.

Accepted Answer

A purchase order is indeed a document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services, and it serves as a legal obligation to purchase those goods under the specified terms.

Question 20

The ultimate objective of supply chain management is to integrate related companies in order to facilitate coordinating activities across the supply chain in a manner that improves the entire chain's performance.

Accepted Answer

The ultimate objective of supply chain management is indeed to integrate and coordinate activities across the supply chain to improve the performance of the entire chain, focusing on efficiency, cost reduction, and delivering better value to the end customer.

Quiz 10: Supply Chain and Logistics Management