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Question 1 (3 points)
Turbulance, uncertainty, and rapid change
are all part of the environment of today's world of commerce
1. True
2. False
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Question 2 (3 points)
More informed consumers tend to have higher
levels of tolerance for quality
1. True
2. False
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Question 3 (3 points)
Power has shifted over the past two decades
plus from the manufacturer to the retailer in supply chains
1. True
2. false
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Question 4 (3 points)
Transportation firms, liberated from the shackles
of regulation, are now more and more full service providers
1. True
2. False
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Question 5 (3 points)
Globalization is a dominant driving force
for world economics, and is rarely impacted by advances in technology
1. True
2. False
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Question 6 (3 points)
Landed cost refers to the purchase price of
a product
1. True
2. False
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Question 7 (3 points)
In terms of globalization, the complexity
of logistics and transportation will decrease because of the length (distance
and time)of the supply chains
1. True
2. False
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Question 8 (3 points)
Demand chain management and demand flow management
are synonyms for supply chain management
1. True
2. False
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Question 9 (5 points)
Which is an attempt to increase the velocity
of inventory in the packaged goods industry throughout the supply chains
of wholesalers, distributors, and ultimately to the customers?
1. ECR
2. JIT
3. TQM
4. EDI
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Question 10 (5 points)
What is false regarding customer service?
1. There exists different levels of customer service
2. A minimum level is required to stay in business
3. All customers should be treated equally
4. Priorities should be made amongst customers
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Question 11 (5 points)
Efficient consumer response has generated
savings in excess of $30 billion per year. What has been done with these
savings?
1. They have been passed on to shareholders
2. They have been distributed among supply chain members
3. They have been used to lower the price paid by consumers
for those products
4. They have been applied to company overhead costs
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Question 12 (5 points)
What has had an impact on the empowerment
of the consumer over the past couple of decades?
1. Internet allows for greater information dissemination
2. Demographics have changed
3. Neither a. nor b.
4. A. and B. are both correct
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Question 13 (5 points)
By not providing vendors with sufficient lead
time information or requiring customers to buy in large quantities, firms
may experience an increase in:
1. Purchase price
2. Delivery costs
3. Inventory carrying costs
4. Transportation costs
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Question 14 (5 points)
Successful supply chain integration is based
upon achieving what objectives?
1. Recognizing the final customer's service level requirements
2. Deciding where to position inventories along the supply chain
and how much to stock at each point
3. Developing appropriate policies and procedures for managing
the supply chain as a single entity
4. All of the above
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Question 15 (5 points)
The total systems cost concept is based on?
1. Logistics efficiency
2. Relationships between elements the various elements of a
distribution system
3. Quality can be impacted by use of the lowest cost system
4. Product variety
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Question 16 (5 points)
What are the four "legs" of business operations
which have undergone deregulation over the past several years?
1. Transportation, financial, power, and communication
2. Transportation, financial, power, and technology
3. Financial, power, communications, and medical
4. Financial, power, communications, and accounting
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Question 17 (5 points)
With the growing interest in recycling and
waste management, manufacturers are implementing:
1. "Push" systems
2. "Pull" systems
3. Reverse logistics systems
4. Bureaucratic regulatory systems
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Question 18 (5 points)
What is the best level of inventory to keep
in distribution centers?
1. Sufficient to insure that there are no stockouts with the
resultant lost orders
2. A 6 months to 1 year supply because of seasonality
3. A level which will provide an acceptable level of service
while minimizing carrying costs
4. Levels sufficent to insure a fully competitive response
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Question 19 (15 points)
Successful supply chain management is based upon the integration
and management of three types of "flows" or basic processes. Explain what
they are
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Question 20 (3 points)
During the 1980s, logistics costs as a percentage
of gross national product declined
1. True
2. False
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Question 21 (3 points)
Transportation is the physical movement or
flow of goods
1. True
2. False
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Question 22 (3 points)
Logistics systems having a very heavy inbound
flow and a very simple outbound flow are reverse systems
1. True
2. False
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Question 23 (3 points)
In a logistics system, warehousing should
be optimized at the expense of related logistics activities such as transportation
and procurement
1. True
2. False
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Question 24 (3 points)
Jeris Products is evaluating two logistics
systems for the distribution of its products. The cost of system 1 is $0.18
per unit regardless of volume. System 2 cost is $0.22 per unit regardless
of volume. System 2 should be selected because its higher cost indicates
that the quality of service provided is better
1. True
2. False
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Question 25 (5 points)
The Council of Logistics Management (CLM)
definition of logistics focuses attention on two interrelated basic activities.
They are:
1. Supply and demand
2. Costs and services
3. Movement and storage
4. Inventory and supply
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Question 26 (5 points)
The value that is added to a good through
a manufacturing, production, or assembly process is:
1. Form utility
2. Place utility
3. Time utility
4. Possession utility
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Question 27 (5 points)
The utility that is created by moving goods
from surplus points to points where demand exists is referred to as:
1. Form
2. Place
3. Time
4. Possession
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Question 28 (5 points)
In 1993 which was the largest component of
logistics costs?
1. Inventory costs
2. Transportation costs
3. Shipper-related costs
4. Administrative costs
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Question 29 (5 points)
Celebrated Products is introducing a new line
of celebrity signature sunglasses. The sales manager wants a media blitz
to make customers aware of the line and create early sales typical of a
"pull" pattern. Which is to be likely result of the marketing manager's
plan?
1. A stable demand pattern
2. Emergency shipments
3. An erratic demand pattern
4. Strain on the logistics system
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Question 30 (5 points)
What activity involves the movement of goods
into a warehouse, the placement of goods in a warehouse, and the movements
of goods from storage to order picking areas and eventually to dock areas
for transportation out of the warehouse?
1. Materials handling
2. Physical distribution
3. Business logistics
4. Order fulfillment
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Question 31 (5 points)
Water Cruisers is located in Jacksonville,
Florida, and makes small yachts and luxury pontoon boats for customers
on the East coast of United States. Each boat requires thousands of parts
purchased from over 1000 vendors. A number of boats are in production at
any one time, so a large number of parts constantly arrive and are stored.
Once a boat is finished, it is sailed up the coast to a convenient port
for customer delivery. Which type of logistics system does Water Cruisers
use?
1. Balanced system
2. Heavy inbound
3. Heavy outbound
4. Reverse system
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Question 32 (5 points)
The transportation network that connects the
nodes in a logistics system is referred to as:
1. Nodes
2. Carriers
3. Hubs
4. Links
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Question 33 (5 points)
What can be expected if a firm can improve
customer service by shortening customer order cycles?
1. An increase in the firm's logistics costs and a rise in product
price
2. Customers will be able to operate with less inventory and
lower costs
3. Customers will have to increase their inventory investment
and change their purchasing practices
4. That the firm's marketing goals will be achieved at the expense
of their production goals
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Question 34 (5 points)
The relationship between the weight of an
object and the space that it occupies is called:
1. Mass
2. Spatial mass
3. Density
4. Entropy
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Question 35 (16 points)
Explain the interfaces of logistics with operations
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Question 36 (15 points)
Distinguish between materials management and physical
distribution as logistics areas
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Question 37 (15 points)
Discuss the levels of optimality in logistics system analysis
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