Question 1

Materials management does not include the inflow of raw material, parts, and supplies through the firm.

Accepted Answer

Materials management encompasses the planning and control of the flow of materials, including the inflow of raw materials, parts, and supplies through the firm, to ensure that the right materials are available at the right time and place in the correct quantities.

Question 2

Various governments have established _____.

Accepted Answer

Export processing zones (EPZs) are areas within countries where special customs and tax rules apply, typically to encourage foreign investment and promote exports. These zones are established by governments to foster economic growth.

Question 3

Physical distribution refers to the inflow of raw materials, parts, and supplies in and through the firm.

Accepted Answer

Physical distribution primarily concerns the movement of finished goods from the end of the production line to the consumer, including warehousing, transportation, inventory management, and order processing. The inflow of raw materials, parts, and supplies is typically referred to as inbound logistics or supply chain management.

Question 4

In the US, the Jones Act requires passengers and merchandise being transported by ship within the United States to travel on U.S.-built, U.S.-owned and U.S.-staffed vessels.

Accepted Answer

The Jones Act, part of the Merchant Marine Act of 1920, mandates that transportation of goods and passengers between U.S. ports be conducted by ships that are U.S.-built, U.S.-owned, and U.S.-crewed.

Question 5

Air freight represents more than 40 percent of the value of goods shipped in international commerce.

Accepted Answer

The answer of Air freight represents more than 40 percent...

Question 6

Coca-Cola Enterprises is a whole owned subsidiary of the Coca-Cola Company.

Accepted Answer

Coca-Cola Enterprises was an independent bottling company, and although it was a major bottler for The Coca-Cola Company, it was not a wholly owned subsidiary. It merged with other bottlers in 2016 to form Coca-Cola European Partners.

Question 7

In the US, the Merchant Marine Act of 1920 significantly reduces the costs of logistics in and around the United States.

Accepted Answer

The Merchant Marine Act of 1920, also known as the Jones Act, requires goods transported between U.S. ports to be carried on ships that are built, owned, and operated by United States citizens or permanent residents, which often increases the costs of logistics due to limited competition and higher operational costs of U.S.-flagged ships.

Question 8

Materials management refers to the movement of the firm's finished products to its customers, consisting of transportation, warehousing, inventory, customer service/order entry, and administration.

Accepted Answer

Materials management primarily focuses on the procurement, handling, and movement of raw materials and components within a firm, from the point of their receipt to their use in manufacturing, rather than the movement of finished products to customers.

Question 9

In _____, store hours are limited and stores do not open on Sundays.

Accepted Answer

In Germany, store hours are indeed limited by law, and most stores do not open on Sundays, reflecting the country's strong tradition of keeping Sunday as a day of rest.

Question 10

Honda, a Japanese automobile manufacturer, owns a number of highly successful specialty tofu restaurants in Tokyo frequented by young trendsetters in Japan.

Accepted Answer

The answer of Honda, a Japanese automobile manufacturer, owns a...

Question 11

Changes in aircraft design have now enabled air transshipment of relatively bulky products.

Accepted Answer

Advancements in aircraft design, including larger cargo holds and increased fuel efficiency, have made it feasible to transport bulkier products by air, which was previously limited due to space and cost constraints.

Question 12

Today's modern jumbo cargo jets, such as the C-130 and the AN-32, can carry more than 200 tons of cargo.

Accepted Answer

The C-130 and the AN-32 are not classified as jumbo cargo jets and cannot carry more than 200 tons of cargo. The C-130's maximum payload is about 19 tons, and the AN-32 can carry around 7.5 tons.

Question 13

Global logistics encompasses materials management only.

Accepted Answer

Global logistics involves the planning, implementation, and control of the flow and storage of goods, services, and related information from the point of origin to the point of consumption on a global scale, not just materials management.

Question 14

The bulk of international trade is handled by airlines.

Accepted Answer

The majority of international trade is actually transported by sea, due to the ability to move large volumes of goods more economically compared to air transport.

Question 15

In geographically concentrated countries, such as Japan and Britain, firms tend to incur relatively more warehousing, customer service/order entry, and general administrative costs than in geographically larger countries.

Accepted Answer

In geographically concentrated countries, firms tend to incur relatively more warehousing, customer service/order entry, and general administrative costs than in geographically larger countries because of the higher costs associated with transportation and logistics.

Question 16

Honda, a Japanese automobile manufacturer, owns its own fleet of cargo ships and uses them to ship soybeans.

Accepted Answer

Honda is a Japanese automobile manufacturer, and it does not own or operate a fleet of cargo ships.

Question 17

In intermodal transportation, only one type of transportation is employed.

Accepted Answer

Intermodal transportation involves using two or more modes of transportation (e.g., rail, ship, and truck) to move goods from origin to destination, not just one.

Question 18

In Asian countries, personal "connections" of who knows whom frequently seem to outweigh the Western economic principle of profit maximization or cost minimization in conducting business.

Accepted Answer

In many Asian countries, the concept of "guanxi" in China, or similar notions of personal networks and relationships, plays a crucial role in business practices, often taking precedence over purely economic considerations like profit maximization or cost minimization. These connections can influence decisions, partnerships, and opportunities, reflecting a cultural emphasis on trust and mutual obligations.

Question 19

_____ usually provide tax- and duty-free treatment of production facilities whose output is meant to be exported.

Accepted Answer

Export processing zones (EPZs) are areas within a country where goods can be manufactured, processed, and exported without the usual tax and duty regulations, specifically to encourage export-oriented production.

Question 20

Ocean shipping is used extensively for the transport of heavy perishable cargoes.

Accepted Answer

Ocean shipping is commonly used for heavy and bulk cargoes, but air freight is typically preferred for perishable goods due to faster transit times.

Quiz 15: Global Logistics and Distribution