Question 1

To balance inventory capabilities and production capacity constraints, some companies use a practice called ________, which involves the use of a consistent production schedule, both during and beyond times of peak demand.

Accepted Answer

Level loading involves creating a consistent production schedule that evens out demand over time. This helps to balance inventory levels with production capacity, and reduces the need for stockouting or overproduction during peak times. Just in time (JIT) is a related practice, but involves producing goods only when they are needed in the production process, rather than on a schedule. Logistics management and enterprise resource planning (ERP) are broader concepts that may include level loading as part of an overall strategy.

Question 2

Which of the following figures is needed to calculate inventory turnover?

Accepted Answer

The annual cost of sales is needed to calculate inventory turnover, as it is used in the formula of Inventory Turnover Ratio which is (Cost of Goods Sold/Average Inventory).

Question 3

Through the use of ________, a company is able to know exactly where a product is located within the distribution channel.

Accepted Answer

RFID (Radio Frequency Identification) technology allows for the tracking and identification of products through the use of radio waves. This allows a company to have real-time information on where a product is located within the distribution channel. ERP (Enterprise Resource Planning) systems are more focused on managing internal business processes, PRM (Partner Relationship Management) is focused on managing partnerships with vendors and suppliers, VMS (Vendor Management System) is focused on managing the relationships with specific vendors, and JIT (Just-In-Time) is a production strategy focused on minimizing inventory levels.

Question 4

How can a company benefit from just-in-time inventory techniques?

Accepted Answer

The answer of How can a company benefit from just-in-time...

Question 5

Supply chain management includes the coordination of both the physical movement of goods and the sharing of information about those goods.

Accepted Answer

Supply chain management involves managing the flow of goods and information across different stages of a supply chain network, from raw material sourcing to production, distribution, and delivery to customers. Therefore, both physical movement and information sharing are crucial components of effective supply chain management.

Question 6

Explain the rationale for identifying the best modes of transportation for a product.

Accepted Answer

The answer of Explain the rationale for identifying the best...

Question 7

Explain why inventory control has such a major impact on the costs of logistics.

Accepted Answer

The answer of Explain why inventory control has such a...

Question 8

The supply chain only includes components dealing with the flow of materials internal to the firm.

Accepted Answer

The supply chain includes all components involved in the production and distribution of goods and services, both internal and external to the firm. It encompasses suppliers, manufacturers, logistics providers, retailers, and customers.

Question 9

Railroads are best for carrying coal, iron ore, grain, and lumber over long distances.

Accepted Answer

Railroads are equipped with trains that can carry large quantities of heavy and bulk goods such as coal, iron ore, grain, and lumber efficiently over long distances.

Question 10

Which of the following modes of transportation would most likely be used to quickly haul lettuce from California, where it was grown, to markets in Nevada?

Accepted Answer

Trucks are the most commonly used mode of transportation for fresh produce as they provide a quick and efficient way to transport goods over short to medium distances. Since lettuce is a highly perishable product, it needs to be transported quickly to reach the market in fresh condition. Therefore, given the proximity of California and Nevada, it is likely that trucks are the best choice for hauling lettuce from California to markets in Nevada. Railroads, air, and water may be too slow or too expensive for transporting lettuce over such a short distance. Pipelines are not used for transportation of fresh produce.

Question 11

Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should use ________ as its main carrier.

Accepted Answer

Since speed of delivery is a must, air transportation would be the best choice for Jewels for the Rich and Famous to ensure quick delivery to their customers around the world. Railroads, trucks, water, and pipelines are not as efficient or speedy as air transportation.

Question 12

At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in ________.

Accepted Answer

The pickers are engaged in materials handling, which is the movement, storage, and control of materials in warehouses and distribution centers. This involves activities such as picking, packing, and shipping products to customers. The other options do not fully describe the specific activity of the pickers in this scenario.

Question 13

A firm that brings in outside companies to accomplish supply chain activities is using ________.

Accepted Answer

Outsourcing involves bringing in outside companies to accomplish supply chain activities.

Question 14

Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer?

Accepted Answer

The answer of Which of the following includes all the...

Question 15

Explain the concept of the supply chain.

Accepted Answer

The answer of Explain the concept of the supply chain....

Question 16

Through the practice of insourcing, a company brings in an external company to run its ________.

Accepted Answer

Insourcing is the practice of having an external company or contractor perform tasks or operations that would normally be performed in-house. However, insourcing is typically used for essential operations such as manufacturing, IT support, or customer service. Therefore, the best choice is C: essential operations.

Question 17

To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation.

Accepted Answer

The system described is known as just in time (JIT) inventory management, where inventory is ordered and received only as needed for production or sales, reducing the amount of inventory stored and therefore reducing inventory cost.

Question 18

Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport to save money.

Accepted Answer

Since Grayville Rock and Gravel is located in a seaport town and the company they have a contract with is located 500 miles down the coast, switching to water transport would be the most feasible option to save money. It would be faster and more cost-effective to ship the materials by sea than by truck or any other method.

Question 19

Reverse logistics are becoming even more important as more firms seriously consider sustainability as a competitive advantage.

Accepted Answer

Reverse logistics, which involve the management of product returns and end-of-life recycling, are becoming increasingly vital in the pursuit of sustainable business practices. This allows firms to reduce waste, cut costs, and enhance their brand reputation as environmentally responsible organizations. As such, reverse logistics are becoming an important way for firms to gain a competitive advantage in the marketplace.

Question 20

When shipping large amounts of bulk products such as forest products, coal, sand, or rock over large distances, a company should choose large trucks because of their low cost per ton shipped.

Accepted Answer

Large trucks may have a lower cost per ton shipped compared to other transportation modes for short distances, but for long distances, shipping via rail or barge is often more cost-effective. Additionally, large trucks require more fuel and maintenance, and may encounter restrictions on weight limits and road access, which can lead to delays and additional costs.

Quiz 11: Deliver the Goods: Determine the Distribution Strategy