Question 1

Poor logistics management can bring a supply chain to its knees,regardless of the quality of the products.

Accepted Answer

Poor logistics management can result in delays, errors, and inefficiencies that can ultimately lead to disruptions in the supply chain, affecting the timely delivery of products to customers. Therefore, even high-quality products may not be delivered on time or in the expected condition if logistics management is not up to standard.

Question 2

Logistics is what creates the efficient flow of goods between supply chain partners,allowing profits and competitive advantage to be maximized.

Accepted Answer

Logistics plays a critical role in facilitating the efficient movement of goods between supply chain partners, which can lead to higher profits and a competitive edge. Therefore, the statement is true.

Question 3

With FOB pricing,a supplier is the legal owner of a product until the product reaches its destination.

Accepted Answer

True

Question 4

While high speed trains in the United States are commonly utilized to provide quick delivery of product,countries like Japan and France are struggling to develop a competitive high-speed rail system.

Accepted Answer

This statement is incorrect. Countries like Japan and France already have successful high-speed rail systems and continue to invest in their development and expansion.

Question 5

BNSF Logistics and Con-way are both considered third-party logistics providers.

Accepted Answer

Both BNSF Logistics and Con-way provide third-party logistics services, including transportation and supply chain management.

Question 6

The responsibility of transportation is to create both time utility and place utility,which means that products will be delivered at precisely the right time to the desired location.

Accepted Answer

Transportation plays a crucial role in creating both time utility and place utility by ensuring that products are delivered at the right time and to the desired location.

Question 7

Generally speaking,rail carriers are less expensive than motor carriers.

Accepted Answer

Rail carriers typically offer lower costs for long-distance and bulk shipments due to their ability to move large volumes of goods efficiently and with less fuel per ton-mile compared to motor carriers.

Question 8

Reverse logistics refers to the movement and storage of returned goods.

Accepted Answer

Reverse logistics does indeed refer to the movement and storage of returned goods.

Question 9

Private warehouses refer to warehouses that are owned by the firm storing the goods.

Accepted Answer

Private warehouses are owned by the company or firm that uses them for storing their goods.

Question 10

A small LTL shipment that originates on a truck in Los Angeles and is moved from Los Angeles to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

Accepted Answer

An intermodal shipment involves the use of multiple modes of transportation, such as a combination of truck, rail, and/or ship. In the given scenario, only trucks are used, so it would not be considered an intermodal shipment.

Question 11

Limitations of air carrier transport include cost and airport accessibility.

Accepted Answer

Air carrier transport can be expensive compared to other modes of transportation, and some remote regions may not have easy access to airports.

Question 12

While transportation regulation and deregulation both have their supporters,proponents of regulation consider it to be good since it is said to encourage competition and allows the negotiation of prices to dictate market costs.

Accepted Answer

Proponents of regulation argue that it can protect consumers from monopolies or price gouging, but it can also limit competition and innovation. Deregulation, on the other hand, can increase competition and lower prices, but it can also lead to unsafe practices or market instability. Supporters of each approach have their own arguments and criticisms.

Question 13

According to the textbook,the five basic modes of transportation are motor,rail,air,water,and cyberspace.

Accepted Answer

The five basic modes of transportation typically include motor, rail, air, water, and pipeline, not cyberspace. Cyberspace is related to digital communication rather than physical transportation.

Question 14

Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases,work in progress inventories,and finished goods inventories,receiving shipments,breaking down shipments,repackaging,and the distribution of components.

Accepted Answer

Efficient supply chain management distribution does require modern warehouses to focus on a variety of functions such as storing inventories, receiving and distributing shipments, and repackaging.

Question 15

Risk pooling is a strategy that attempts to use fewer warehouses to decrease the required safety stock levels since the negatively correlated market demands reduce the overall demand variance across the markets which the centralized warehouse services.

Accepted Answer

This statement accurately describes the concept of risk pooling. By using a centralized warehouse to serve multiple markets, the variability of demand across those markets is reduced, allowing for lower safety stock levels and potentially lower overall inventory costs.

Question 16

From a marketing perspective,an effective reverse logistic process can create goodwill and enhance customers' perceptions of product quality.

Accepted Answer

Effective reverse logistic process ensures that products are recycled or disposed of properly, which can create a positive impression of the company's commitment to social responsibility and quality standards in the minds of the customers. This positive impression can lead to increased customer loyalty and potentially attract new customers, thereby enhancing the company's overall brand image and reputation.

Question 17

Warehouse Management Systems (WMS)allow firms to find carriers,select the best mix of transportation services and pricing to determine the best use of containers or truck trailers,better manage transportation contracts,track fuel usage and track carrier performance.

Accepted Answer

Warehouse Management Systems (WMS) are primarily designed to manage the storage and movement of materials within a warehouse, not to manage transportation or carrier performance. Systems designed for transportation management are known as Transportation Management Systems (TMS).

Question 18

International intermediaries can provide shipping,consolidation,and other import and export services.Some examples of these international intermediaries include: NVOCCs and trading companies.

Accepted Answer

International intermediaries such as NVOCCs and trading companies do provide shipping, consolidation, and other import and export services.

Question 19

Some of the e-commerce related services that transportation companies offer nowadays to remain competitive include allowing customers to plan itineraries,get freight quotes,and track shipments online.

Accepted Answer

This statement is true. Many transportation companies offer e-commerce services such as itinerary planning, freight quoting, and shipment tracking in order to remain competitive in the market.

Question 20

Because of strict regulations,third-party logistics (3PL)services cannot assist with customs clearance.

Accepted Answer

This statement is false. Many 3PL services offer customs clearance as part of their services, although it may vary depending on the specific regulations of a country or region.

Quiz 9: Domestic Usand Global Logistics