Question 1  (2 points) The warehouse of today is not a long-term storage facility. 1. True   2. False   Question 2  (2 points) Warehousing is the storage of goods. 1. True   2. False   Question 3  (2 points) Cross-docking is an operation that facilitates the product mixing function. 1. True   2. False   Question 4  (2 points) The three alternative choices in arranging warehouse space are private ownership, public warehousing, and leased warehousing. 1. True   2. False   Question 5  (2 points) The amount of space required in physical distribution warehouses for order picking and assembly depends upon order volume, the nature of the product, and the materials handling equipment used. 1. True   2. False   Question 6  (2 points) At lower output volume, the private warehouse is the best alternative for the ownership decision. 1. True   2. False   Question 7  (2 points) Tom is a manager of a public warehouse. Gemini Products uses Tom's warehouse to store their products. On one occasion, Tom accepted a trailer load of Gemini's products; but left it temporarily outside for two days awaiting space in the warehouse. During those two days, an unusual storm occurred with heavier than normal rain amounts falling. The entire load was ruined. Gemini claimed payment in full for the damaged goods left in Tom's care. Tom is not liable because he had no way of knowing that this storm was going to be so severe and, at the time, there was no inside space for storage of the goods. 1. True   2. False   Question 8  (2 points) The standardization principle states that one should mechanize warehousing operations. 1. True   2. False   Question 9  (2 points) Packaging plays both a marketing role and a logistics role. 1. True   2. False   Question 10  (4 points) Which type of utility does warehousing create in goods? 1. Time   2. Place   3. Form   4. Ownership   Question 11  (4 points) For the inbound logistics system, what is consolidation? 1. Bringing together long-distance, volume shipments which are then shipped short distances in less-than-volume shipments.   2. Bringing together short-distances, less-than-volume shipments which are then shipped long distances in volume quantities   3. Brining together an assortment of different types of finished goods   4. Sorting raw materials by grade, quality, size, cost, etc.   Question 12  (4 points) Cyrus Production has six production plants, each located within a 45 mile circle. Cyrus specializes in small volume custom production of automobile parts. Each plant's daily output is typically small, and in most cases, the outputs do not require any priority shipping arrangements. Shipping each plant's daily output by motor carrier is expensive because the items are shipped by LTL rates. If the outputs were accumulated for a TL shipment, it may take as long as two weeks before a shipment can be made. Instead, the shipments are accumulated at Cyrus' central warehouse into daily TL shipments. This describes which value-added role of warehousing in a logistics system? 1. Smoothing   2. Contingencies   3. Decoupling   4. Transportation consolidation   Question 13  (4 points) Bear Plastics manufactures a large variety of plastic shells for ice coolers and beverages and markets its products in the central United States. In analyzing its order activity for the last five years. Bear's logistics manager discovered that its business was very seasonal, with most orders placed for delivery between October and March. Analysis of warehouse utilization showed high utilization between April and September, but little use otherwise. In fact, warehouse demand was so high during October-March, public warehousing was used. On the strength of this analysis, the logistics manager will make a recommendation to top management about warehouse space. This involves which basic warehouse decision area? 1. Ownership   2. Centralized versus decentralized warehousing   3. Warehouse location   4. warehouse layout   Question 14  (4 points) The centralization-decentralization issue, in its most basic form, asks which question? 1. Who shall own the warehouse   2. How large should the warehouse be   3. What will be stored in the warehouse   4. How many warehouses shall there be   Question 15  (4 points) What are the two basic warehouse operations? 1. Movement and order processing   2. Movement and storage   3. Storage and inventory control   4. Purchasing and storage   Question 16  (4 points) What is the first step in warehouse space requirements determination? 1. Forecast warehousing costs   2. Forecast inventory and safety stock   3. Develop a demand forecast   4. Develop an economic order quantity model   Question 17  (4 points) Sparky Electrical Wholesalers is building a new physical distribution warehouse. The firm's logistics manager insisted that the warehouse designer incorporate three features into the warehouse. First, since electrical wire is the fastest moving item in Sparky's inventory, it be stored in the warehouse's most accessible area. Second transformers are the bulkiest and heaviest items Sparky sells, and must be stored closest to the shipping area. Third, because load sizes of electrical fixtures are large compared to their order size, they should be stored close to the shipping area. Which layout objective is the logistics manager trying to achieve? 1. Protection   2. Resources   3. Capacity utilization   4. Efficiency   Question 18  (4 points) A private warehouse requires a high volume of warehouse throughput for efficient operation. Which is the best reason for this? 1. To spread out fixed cost over large output volumes   2. To spread out variable cost over large output volumes   3. So total unit costs can be allocated on the basis of traffic volume   4. To accomplish total utilization of facilities with declining variable costs.   Question 19  (4 points) This use of public warehousing by a company is all _______ cost. 1. fixed   2. marginal   3. variable   4. taxable   Question 20  (4 points) Generally, at higher volumes of throughput, a firm should utilize: 1. A public warehouse   2. A federal warehouse   3. A local warehouse   4. A private warehouse   5. Either a or d is correct   Question 21  (4 points) Which type of warehouse stores items for producers that wish to postpone payment of taxes on the items stored? 1. Field warehouse   2. Private warehouse   3. Federal warehouse   4. Bonded warehouse   Question 22  (4 points) Under the Uniform Warehouse Receipts Act, the warehousemen's liability is defined as: 1. Dividing the liability, 50-50, with the customer storing the goods   2. Having no liability   3. Generally assuming liability for all damages   4. Being equivalent to common carrier liability   5. Exercising reasonable care   Question 23  (4 points) The operator of a public warehouse bases their rates on? 1. The amount of fragility   2. The value goods are stored   3. Services to be performed   4. All of the above   Question 24  (4 points) Which are most likely as the decentralization of company warehouse is increased? 1. Transport costs increase; inventory costs and costs of lost sales increase   2. Transport costs and cost of lost sales increase; inventory costs decrease   3. Transport costs and inventory costs decrease; cost of lost sales increase   4. Transport costs and cost of lost sales decrease; inventory costs decrease   Question 25  (4 points) How does the number and cost of lost sales for any product of a given degree of substitutability generally vary with the degree of warehouse decentralization? 1. Directly   2. Inversely   3. Vertically   4. Horizontally   Question 26  (4 points) Which occurs when the decentralization of company warehousing increases? 1. A decrease in warehousing cost   2. A constant decrease in total cost   3. A decrease in the cost of lost sales   4. A constant increase in the cost of outbound transportation   Question 27  (4 points) Logistics system efficiency can be gained by combining the use of fewer warehouses with reliable transportation. Customer service can be improved and lower transportation costs realized. Which method can be used to lower transportation costs? 1. Increase throughput rates   2. Decrease inventory turns   3. Consolidation opportunities   4. Movement of less volumes of product   Question 28  (8 points) Describe the operation of cross-docking Question 29  (2 points) When a traffic manager reduces the number of carriers used, market power is increased, and a strategic alliance can be developed between the manager and the carrier. 1. True   2. False   Question 30  (2 points) The straight bill of lading is a negotiable instrument that carriers use to transfer title to the goods transported 1. True   2. False   Question 31  (2 points) The invoice for the carrier's charges for moving a shipment is called a bill of lading. 1. True   2. False   Question 32  (2 points) The term of sale "F.O.B. Delivered" stipulates that the title to the goods being transported passes at the time of delivery. 1. True   2. False   Question 33  (2 points) Jiffy Company buys 500 cases of paper cups from the Paper Cup Company, under the terms "F.O.B. Origin". The cups are damaged in transit. It is the responsibility of Jiffy to submit the damage claim for insurance settlement. 1. True   2. False   Question 34  (2 points) A blanket rate is one that applies to all goods of the same classification. 1. True   2. False   Question 35  (2 points) Pooling permits the shipper to combine many LCL or LTL shipments into one CL or TL shipment and to send it to one destination and one consignee. 1. True   2. False   Question 36  (2 points) Any quantity rates are an exception to the rate-volume relationship. 1. True   2. False   Question 37  (4 points) What is an order bill of lading? 1. An order for goods which a firm issues to a vendor   2. The same as a freight bill   3. A negotiable instrument that acts as a certificate of title   4. A purchase invoice   Question 38  (4 points) All are common carriers exceptions to liability, except for: 1. Act of public authority   2. Act of default by shipper   3. Act of God   4. Act of public enemy   5. Accident which is not the carrier's fault   Question 39  (4 points) What is the carrier's invoice for charges incurred in the movement of a given shipment called? 1. Order bill of lading   2. Straight bill of lading   3. Freight claim   4. Freight bill   Question 40  (4 points) Under the term of sale "F.O.B. Delivered", who has the responsibility of filing a claim for damage arising from the shipment? 1. Buyer   2. Seller   3. Carrier   4. Demurrage agent   Question 41  (4 points) Modular Desk manufactures custom desk units for businesses. Amalgamated Products ordered 50 custom units for its new facility. The desk were ordered F.O.B. Origin because Amalgamated has a private truck fleet to transport the desks. After arrival at Amalgamated, 14 of the desks were found damaged. Amalgamator's driver inspected the desks at Modular's plant and found them all to be in good condition. Who files the damage claim with the insurance company? 1. Modular Desk   2. Amalgamated Products   3. The common carrier   4. The building contractor   Question 42  (4 points) Which applies when rates are based upon the cost of service pricing model? 1. The demand for the service establishes the lower limit of the rate   2. The supply side of pricing is considered   3. Only the common costs incurred must be covered by the carrier   4. Only fixed costs have to be covered by the carrier   Question 43  (4 points) Which applies to the value of service pricing model? 1. The model is used to set the lower limit of a freight rate   2. The model only considers the supply side of the transport pricing function   3. The value of the product to be transported is irrelevant in respect to tranport pricing   4. The model considers the ability of the transported product to withstand the transportation costs   Question 44  (4 points) Which is correct regarding tapered rates? 1. Rates will taper with high value goods but not with low value goods   2. Rates will taper with low value goods but not with high value goods   3. Rates taper because the fixed costs associated with a shipment are spread out as the distance of the shipment increases   4. Shorter shipment distances cost less per mile than longer shipment distances   Question 45  (4 points) Batch Truck Company was given 4000 pounds of lead to transport from Toledo to Findlay, Ohio. The rate per cwt is $0.10. What is the total transportation charge for shipping the lead? The transportation time is two days 1. $4.00   2. $8.00   3. $40.00   4. $80.00   Question 46  (4 points) Which is the line haul service that allows the shipper to stop the shipment in transit and perform some function that physically alters the product's characteristics? 1. Diversion   2. Stop-off   3. Transit privilege   4. Drayage   Question 47  (8 points) What is a bill of lading and explain the differences between a straight bill of lading and an order bill of lading.