ASCM 629 Strategic Purchasing and Logistics Midterm Answers

ASCM 629 Strategic Purchasing and Logistics Midterm Answers

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ASCM 629 Midterm Examination Answers / Strategic Purchasing and Logistics

Question 1

1 / 1 point

A Supply Chain is best described by which of the following:

Question options:

	A)  A group of cooperative carriers.
	B)  A group of collaborative companies.
	C)  A formal association of competitive companies.
	D)  Two firms who create a strategic alliance.
	E)  A link-node network illustrated in academic readings.
Question 2		1 / 1 point

Which of the following best describes an integrative supply chain process:

Question options:

	An planning approach that links together independent parts.
	A concept that identifies independent parts.
	A conglomeration of functions.
	The fusion of critical components of a supply chain.
	A supply chain that effectively interfaces transportation and warehousing functions.
Question 3		1 / 1 point

What is the primary reason that time to market has decreased over the past two decades?

Question options:

	Improvement in Federal Highways.
	Better Sea Ports.
	Development of Double Stack Containers.
	Manufacturing Technology.
	Information Technology.
Question 4		0 / 1 point

The concept of postponement:

Question options:

	Involves two organizations working together to delay delivery.
	Involves strategic delay of the delivery.
	Seeks to reduce the risk of delivery resulting from poor weather forecasting.
	Seeks to reduce the risk of product forecasting.
	Seeks to reduce the risk of expectations.
Question 5		1 / 1 point

Collaboration is the act of:

Question options:

	Sharing secret information.
	Working with competitors.
	Integrating a supply chain.
	Obtaining legal guidance while arranging selected supply chain arrangements.
	Satisfying all federal, state, and local safety requirements.
Question 6		0 / 1 point

An Integrated Service Provider (ISP) seeks to:

Question options:

	Provide critical operational functionality in a supply chain.
	Excels in providing a specialized service such as dedicated contract carriage.
	Typically brings together two otherwise separate functions.
	Facilitates corporate mergers between transportation service carriers operating in different modes.
	Integrates safety and economic regulations for transportation and warehousing services.
Question 7		0 / 1 point

The lowest total process cost is:

Question options:

	Always the sum of the lowest cost for each involved function.
	The lowest cost for each involved function.
	Sometimes the lowest cost for each involved function.
	Usually involving careful cost integration.
	A sub-optimal solution for careful cost integration.
Question 8		1 / 1 point

Geographic postponement is characterized by:

Question options:

	Manufacturing products that are customized at the origin factory.
	Manufacturing products that are customized at a distribution center.
	Manufacturing products that are delivered to customers for final assembly and customization.
	Delayed shipping from a centrally-located distribution center.
	Accelerated shipping from a centrally-located distribution center.
Question 9		1 / 1 point

Cash-to-Cash Conversion is:

Question options:

	Typically related to an inventory turn.
	Related to freight payment for shipments received by a consignee.
	The time required to convert raw materials into finished inventory.
	A measure of manufacturing efficiency.
	Related to global currency exchange.
Question 10		1 / 1 point

"Dwell time" is:

Question options:

	A key component of system design.
	The ratio of asset idle time to total time required to complete a function.
	The total time inventory is waiting to be processed.
	A key concept in manufacturing efficiency.
	The average duration for building a house in the residential construction industry.
Question 11		1 / 1 point

A unique feature of integrated logistics is:

Question options:

	The newness of the concept after Steve Jobs announced its adoption by Apple as a part of the "Y2K" computer preparations.
	That it is fundamentally similar to military operations.
	Complexity and scope of operations.
	The fact that it employees many people, particularly in the Information Technology industry.
	That it is limited to the United States because of federal cross-border terrorism controls.
Question 12		1 / 1 point

Basic logistics service is a concept that:

Question options:

	Describes the level of service provided all established customers.
	Is involved in designing a distribution network.
	Only involves availability.
	Only involves reliability.
	Only involves economic viability.
Question 13		1 / 1 point

A  logistics performance cycle is:

Question options:

	A format for improved measurement of overall materiel handling cost and service.
	The basic unit of supply chain design and operational control.
	An important metric for transportation service provider performance measurement.
	Typically echeloned in low, medium, and high support levels.
	Typically segmented into short, medium, and long-term support levels.
Question 14		1 / 1 point

The term "Mother Facility" is often used when describing:

Question options:

	The oldest or original facility in a network.
	A facility that is dedicated to servicing a manufacturing facility.
	The source of financial aid for graduate students.
	The logistics linkage of that entity to the "Father Factory."
	An inventory replenishment source for smaller facilities.
Question 15		1 / 1 point

A flow-through facility is:

Question options:

	Typically found in the beverage industry.
	Also often called a cross-dock facility.
	A specialized warehouse that performs value-added services.
	Dedicated to the support of an integrated service provider.
	Also used for "Reverse Logistics" back-flows of recycled materiel.
Question 16		0 / 1 point

The "Pareto Principle" is:

Question options:

	Unique to logistical performance measurement analysis.
	Often used in logistical performance measurement analysis.
	A concept developed in manufacturing to integrate logistics and procurement.
	Utilized in logistics stratification to develop fine-line inventory classification.
	Seldom the end result of logistics system design.
Question 17		0 / 1 point

Service reliability is best described as:

Question options:

	The measure of stock availability that is most critical in system design.
	The measure of production capability that is most critical in system design.
	The speed and consistency of order cycle performance.
	The unquantifiable quality dimension of logistics performance.
	The key attribute of transportation integration.
Question 18		1 / 1 point

The primary reason that total logistics cost has reduced as a percentage of Gross Domestic Product (GDP) is because:

Question options:

	Inventory has increased as a percentage of total cost.
	Inventory has decreased as a percentage of total cost.
	Manufacturing has increased as a percentage of total cost.
	Manufacturing has decreased as a percentage of total cost.
	Nominal GDP has increased.
	Nominal GDP has decreased.
Question 19		1 / 1 point

The work of logistics involves:

Question options:

	Order processing, inventory, and manufacturing.
	Inventory, transportation, manufacturing and procurement.
	Manufacturing, customer accommodation, and purchasing.
	Transportation, inventory, order processing, warehousing, and facility network design.
	Contract management of an organization's buying and selling.
Question 20		1 / 1 point

The logistics performance cycle:

Question options:

	Is the basic unit of supply chain design and control.
	Relates to transportation control.
	Is an important concept in inventory control.
	Is comprised of 80 percent pre-transaction and 20 percent post-transaction metrics.
	Includes a five percent non-performance component under Lean Six Sigma procedures.
Question 21		1 / 1 point

In general, offering consumers higher levels of service output in terms of greater spatial convenience or product variety:

Question options:

	Has little impact on logistics and distribution cost.
	Results in lower logistics and distribution cost.
	Results in higher logistics and distribution cost.
	Does not impact configuration of a supply chain.
	Is only a consideration when products offered are manufactured outside of the United States of America.
Question 22		0 / 1 point

In promotional material for its model X7Q portable bar code scanner, the ScanRite Company states that the mean time between failures for the scanner is 5,000 operating hours under usual warehouse conditions.  Which of the following dimensions of quality does this indicate?

Question options:

	Functionality
	Durability
	Performance
	Reliability
	Economy
Question 23		1 / 1 point

In providing service outputs to consumers, a disadvantage of Internet retailers compared to store-based retailers arises from:

Question options:

	product variety and assortment.
	lot size.
	price.
	waiting time.
	currency exchange.
Question 24		0 / 1 point

The most exacting measure of logistics performance regarding availability is:

Question options:

	Stock-out frequency.
	Orders shipped complete.
	Fill rate.
	Average number of stock-keeping units on hand.
	Average value of stock-keeping units on hand.
Question 25		1 / 1 point

Which of the following is not one of the "service outputs" of a supply chain?

Question options:

	Lot size.
	Waiting time.
	Price.
	Spatial convenience.
	Economic order quantity.
Question 26		0 / 1 point

Numerous studies have been performed concerning retail stock-outs. While results vary, generally the studies find that stock-outs:

Question options:

	Are extremely rare.
	Cannot be controlled using current inventory management techniques.
	Are less frequent for items that are being specifically promoted by a retailer.
	Are usually the result of foreign trade embargos.
	Creates lost sales.
Question 27		0 / 1 point

With respect to operational performance, most logistics managers would prefer which of the following:

Question options:

	A consistent #-days performance cycle, for which "#" can be any specific number of days.
	A performance cycle that averages #-days, with a range of 1 day to four days.
	A performance cycle that averages X-days, but ranges from 1 day to #-days.
	A five-day performance cycle with 95 percent certainty.
	A two-day performance cycle with 80 percent certainty.
Question 28		0 / 1 point

Scheer Energy Company promised a customer that the customer would receive at least 98 percent of all items ordered.  In fact, the customer received 90 percent of the items.  This is an example of which "gap" in the customer satisfaction model?

Question options:

	Performance gap.
	Knowledge gap.
	Standards gap.
	Communication gap.
	Credibility gap.
Question 29		0 / 1 point

The difference between a "customer success" focus and a "customer satisfaction" focus is that:

Question options:

	Customer satisfaction is more difficult to achieve.
	Customer success deals with expectations of customers while customer satisfaction deals with their requirements.
	Customer satisfaction deals with expectations, customer success deals with requirements.
	Both are the same as "customer service."
	There really isn't any difference between these two terms.
Question 30		0 / 1 point

Providing perfect orders to a customer would be a key aspect of which customer accommodation focus?

Question options:

	Customer service.
	Customer satisfaction.
	Customer success.
	Customer contentment.
	Customer happiness.
Question 31		0 / 1 point

Scheer Energy Company makes every effort to consistently meet the expectations of all of its customers.  It is clear that this company is focused upon:

Question options:

	Customer service.
	Customer satisfaction.
	Customer happiness.
	Customer success.
	Customer contentment.
Question 32		0 / 1 point

Which customer accommodation approach requires a comprehensive supply chain perspective on the part of logistics executives?

Question options:

	Customer success
	Customer satisfaction
	Customer service
	Customer contentment
	Customer happiness
	A and C
	B, D and E
	B and F
	C, D and E
Question 33		1 / 1 point

Providing value-added services is a critical aspect of:

Question options:

	Customer service
	Customer satisfaction
	Customer happiness
	Customer contentment
	Customer success
Question 34		1 / 1 point

From a strategic perspective, companies should strive to:

Question options:

	Provide customer success to all customers.
	Realize different customer accommodation approaches may be appropriate for different customers.
	All customers desire close customer success types of relationships.
	Never refuse to do business with a customer.
	Refuse business with customers with Internet review ratings that are lower than 70 percent of the "customer happiness" scale during past year on-line transactions.
Question 35		1 / 1 point

Scheer Energy Company has a performance standard of 97 percent fill rate.  Last month it achieved a 94 percent fill rate.  This is an example of a:

Question options:

	Knowledge gap
	Standards gap
	Performance gap
	Perception gap
	Standard deviation percentage gap
Question 36		1 / 1 point

On-time delivery is an aspect of a company's performance for:

Question options:

	Availability.
	Operational performance.
	Malfunction recovery speed.
	On-time pick-up.
	"Wave picking" at a distribution center.
Question 37		1 / 1 point

Since Wal-Mart and Target are both mass merchandisers, they both have identical logistical service requirements from suppliers.

Question options:

	True.
	False.
	Both companies have the same logistical service requirements from suppliers as Amazon.
	True, if the suppliers are domestic only.
	False, if the suppliers are domestic only.
Question 38		1 / 1 point

Providing greater spatial convenience to customers typically requires greater logistics expense.

Question options:

	True.
	False.
	Spatial convenience to customers is secondary to dimensional advantage when considering logistics expense.
	True, if the customers are in major metropolitan areas only.
	False, if the customers are in major metropolitan areas only.
Question 39		1 / 1 point

Companies should strive to offer the same fill rate performance on all items they stock.

Question options:

	True.
	False.
	Fill rate performance is secondary to the in-stock advantage when considering logistics expense.
	True, if the customers are in major metropolitan areas only.
	False, if the customers are in major metropolitan areas only.
Question 40		0 / 1 point

Good logistics practice involves developing operations in which malfunctions never occur.

Question options:

	True.
	False.
	Malfunction performance is acceptable when required to minimize logistics expense.
	True, if the malfunctions are limited to processing orders under $100.
	False, if the malfunctions consistently reduce logistics expense.
Question 41		0 / 1 point

Which of the following levels of supply chain information systems is most likely to provide the firm with a competitive advantage?

Question options:

	Strategic planning
	Decision analysis
	Management control
	Transaction system
	Warehouse order-picking system
	Logistics network simulation
Question 42		0 / 1 point

Which of the following characterizes the decision analysis component of a supply chain information system?

Question options:

	High risk and extensive options.
	Efficiency-driven activity focus.
	Feedback for performance evaluation.
	Effectiveness activity focus.
	Interactivity with corporate financial and accounting systems.
Question 43		0 / 1 point

Which of the following modules are not included in Enterprise Operations?

Question options:

	Customer accommodation
	Manufacturing
	Accounts receivable and payable
	Inventory deployment
	Shipping and receiving
Question 44		0 / 1 point

The sales and operations planning module belongs to which of the following subsystems?

Question options:

	Enterprise resource planning
	Enterprise operations
	Enterprise planning and monitoring
	Supply chain visibility and event management
	Exceptions processing
Question 45		0 / 1 point

Inventory deployment is responsible for which of the following activities?

Question options:

	Finished inventory management
	Warehouse management
	Manufacturing resource planning
	Advanced planning and scheduling
	Transportation management
Question 46		0 / 1 point

The resource management module of an Advanced Planning and Scheduling (APS) system:

Question options:

	Develops the requirement projections for the planning horizon
	Defines and coordinates supply chain system resources and constraints
	Is the computational engine of the supply chain planning system
	Specifies the resource assignments and communicates them to the Enterprise Resource Planning (ERP) system.
	Specifies the resource assignments and communicates them to the Transportation Management Planning (TMP) system.
Question 47		0 / 1 point

Which of the following is not a benefit of integrated supply chain planning?

Question options:

	Ability to plan with shorter lead times.
	Data integrity.
	Integrated cross-functional planning.
	Improved asset utilization.
	Ability to plan using heuristic algorithms.
Question 48		1 / 1 point

Which of the following activities are not a capability of a supply chain visibility and event management system?

Question options:

	Rerouting
	Notification
	Inventory planning
	Diversion and re-consignment
	Redelivery
Question 49		1 / 1 point

A supply chain compliance system:

Question options:

	Results in reduced inventories.
	Authorizes that the trade partners are approved economic operators.
	Monitors Customs-Trade Partnership Against Terrorism (C-TPAT) compliance.
	B and C only.
	A and C only.
Question 50		1 / 1 point

Radio Frequency Data Communications:

Question options:

	Facilitates two-way information exchange within a relatively small area.
	Is used on transport vehicles and shipping containers to track product movement.
	Is captured via a fixed or handheld scanner device.
	Can be either active or passive mode.
	Can only be passive mode.
Question 51		0 / 1 point

The objective of Extensible Markup Language (XML):

Question options:

	Allow for more flexibility when exchanging information between supply chain partners.
	Defines precise formats for information exchange.
	Can be easily converted to Hyper Text Markup Language (HTML).
	A and C.
	B and C.
Question 52		0 / 1 point

Software as a Service (SaaS) allows for the following, except:

Question options:

	Shifts much of the software and related hardware cost from fixed to variable based on time or number of transactions.
	Typically allows data access via the Internet.
	Increases the company's control over data.
	Reduces the need for firms to develop and maintain specialized expertise.
	A, B, C, and D are all SaaS capabilities or features.
Question 53		1 / 1 point

John Jones has a DVD player which a friend described as being of poor quality since it doesn't have a remote control.  The friend is focusing on what aspect of quality?

Question options:

	Conformance
	Aesthetics
	Features
	Durability
	Reliability
Question 54		1 / 1 point

John Jones told his friend that his DVD player is over 13 years old while most DVD players only last about 10 years.  He is focusing on which aspect of quality?

Question options:

	Conformance
	Aesthetics
	Features
	Durability
	Reliability
Question 55		1 / 1 point

A company has decided that it no longer needs to extensively count and inspect the products it receives from a particular supplier.  This suggests that the company has begun:

Question options:

	Volume consolidation
	Supplier operational integration
	Value management
	Analysis of total cost of ownership
	Shippers "Load and Count" on transportation Bills of Lading combined with a carrier's delivery driver performing the product inspection.
Question 56		1 / 1 point

Generally speaking, procurement can have a greater impact on the net income of a company than most other departments.  This is due to the fact that:

Question options:

	Manufacturing relies on purchasing to identify high quality suppliers.
	Suppliers want to reduce their prices to their customers.
	Marketers don't care about net income, just sales volume and revenue.
	Purchased materials and supplies frequently represent the largest costs in a company.
	Procurement staff ordinarily fund their own purchases on behalf of the client organizations they serve.
Question 57		1 / 1 point

Which of the following reflects does not reflect a strategic focus on procurement?

Question options:

	Total cost of ownership orientation.
	Supply base reduction.
	Reducing the delivered purchase price.
	"Win-Win" negotiation tactics.
	Incorporation of supply chain needs into purchase planning.
Question 58		1 / 1 point

Supply base reduction (that is, volume consolidation):

Question options:

	Has potential benefits for suppliers as well as for buyers.
	Involves early supplier involvement in product design.
	Puts the buyer at a negotiating disadvantage.
	Has little potential for savings for buyers.
	Has not been a successful approach because it limits effective competition during solicitations.
Question 59		1 / 1 point

In procurement, Total Cost of Ownership includes all of the following except:

Question options:

	Field failures of purchased items.
	Consideration of the impact of supplier quantity discounts
	Cost of order placement
	Total cost of ownership includes all of the above aspects.
	Total cost of ownership doesn't include any of the above aspects.
Question 60		1 / 1 point

Which of the following manufacturing approaches would describe most consumer products, such as food, razor blades, over the counter drug, etc?

Question options:

	PTO (Procure to order)
	MTO (Make to order)
	ATO (Assemble to order)
	MTS (Make to stock)
	SCO (Sub-contracted to order)
Question 61		1 / 1 point

Which of the following manufacturing approaches would typically have the longest customer experienced lead time?

Question options:

	PTO (Procure to order)
	MTO (Make to order)
	ATO (Assemble to order)
	MTS (Make to stock)
	SCO (Sub-contracted to order)
Question 62		1 / 1 point

Which of the following process structures can produce highest volume?

Question options:

	Job shop
	Line flow
	Continuous flow
	Batch operation
	MTO (Make to order)
Question 63		1 / 1 point

Which manufacturing process can produce many different product varieties but has a long customer experienced lead time?

Question options:

	Line flow
	Repetitive flow
	Continuous flow
	Batch flow
	Assembly flow
Question 64		1 / 1 point

In this manufacturing approach, typically many different end items are made by combining standard components in inventory into many different products.

Question options:

	PTO (Procure to order)
	MTO (Make to order)
	ATO (Assemble to order)
	MTS (Make to stock)
	SCO (Sub-contracted to order)
Question 65		1 / 1 point

In MTS (Make-to-Stock), customer orders are satisfied from?

Question options:

	Raw material inventory
	Work in process inventory
	Finished goods inventory
	Supplier inventory
	In-transit inventory
Question 66		1 / 1 point

Which of the following statements would be true regarding the customer experienced lead time in a Make-to-order (MTO) company?

Question options:

	It would be shorter than Make-to-stock (MTS) company
	It would be the same as a Make-to-stock (MTS) company
	It would be longer than Assemble-to-order (ATO) company
	It would be the same as an Assemble-to-order (ATO) company
	It would be shorter than an Assemble-to-order (ATO) company
Question 67		1 / 1 point

The document that lists and details the contents and conditions of a shipment is called:

Question options:

	The Tariff
	Proof of Delivery
	The Invoice
	The Bill of Lading
	The Classification
Question 68		0 / 1 point

Scheer Company decided it would only deliver to each geographic market it serves once each week. This strategy is called:

Question options:

	Market area consolidation
	Scheduled delivery consolidation
	Pooled delivery
	Phantom freight
	Less-than-truckload delivery
Question 69		1 / 1 point

If you need to find the cost to ship 10,000 pounds from Lansing to Orlando before selecting a transportation carrier, you should look at the:

Question options:

	Tariff
	Uniform Freight Classification (UFC)
	Bill of Lading
	Free On Board (F.O.B.) content description
	National Motor Freight Classification (NMFC)
Question 70		0 / 1 point

Which of the following is a product characteristic that most directly influences transport pricing?

Question options:

	The product's market share within its sales region(s).
	The product's density.
	The product's technical complexity.
	The product's susceptibility to loss and damage.
	The product's value.
Question 71		1 / 1 point

If you want the consignee to be responsible for goods while they are in-transit, you should ship products:

Question options:

	Free On Board (F.O.B.) Destination
	Free On Board (F.O.B.) Origin
	Using Delivered Pricing
	Using Single Zone Pricing
	Consignee's load-and-count
Question 72		0 / 1 point

Declining transport rates as the quantity shipped increases represents:

Question options:

	The Tapering Principle
	Economy of Distance
	Economy of Energy
	Economy of Scale
	Economy of Supply Chain
Question 73		1 / 1 point

When a carrier's transportation vehicle is used for temporary product storage, a firm typically has to pay:

Question options:

	Freight Absorption
	Demurrage or Detention
	Phantom Storage
	Vehicular Stoppage
	In-transit Inventory Fees
Question 74		1 / 1 point

Assume your firm uses Uniform Delivered Pricing. This will result in:

Question options:

	Customers located far from the origin are paying some phantom freight.
	Customers located far from the origin are paying freight absorption.
	Customers located close to the origin are paying some phantom freight.
	Customers located close to the origin are paying freight absorption.
	Customers located half-way within the delivery area could probably obtain lower direct freight charges.
Question 75		1 / 1 point

The Scheer Company learned that several other shippers for different products located near its origin factory had customers located in the same markets it serves.  With this information, Scheer could find it advantageous to investigate the potential of:

Question options:

	Market Area Consolidation
	Scheduled Delivery Consolidation
	Pooled Delivery Consolidation
	A Phantom Freight Program
	A Freight Absorption Program
Question 76		1 / 1 point

To facilitate classification of a large variety of different items being shipped on a single invoice, a Traffic Manager may want to consider:

Question options:

	Commodity Rates
	Class Rates
	Volume Rates
	Freight-All Kinds (FAK) Rates
	Shipper's Load-and-Count (SL&C) Rates
	Released Value Rates
Question 77		1 / 1 point

Which combination of transportation operating service characteristics not correct?

Question options:

	Speed: air is best; pipeline is worst.
	Availability: truck is best; pipeline is worst.
	Capability: air is best; truck is worst.
	Dependability: pipeline is best; air is worst.
	Affordability:  pipeline is best; air is worst.
Question 78		1 / 1 point

Generally the least costly method of moving product that is not gaseous, liquid, or slurry is:

Question options:

	Air.
	Water.
	Truck.
	Rail.
	Pipeline.
Question 79		1 / 1 point

If a transportation vehicle has completed a delivery and is returned empty, the situation is called a:

Question options:

	Backhaul.
	Piggy-back.
	Freight absorption.
	Deadhead.
	Phantom freight.
Question 80		1 / 1 point

With respect to transportation regulation today:

Question options:

	There is no economic regulation of transportation.
	There is more economic regulation than ever before.
	There is very little safety or social regulation.
	There is more safety or social regulation than ever before.
	All regulation was consolidated under the Interstate Commerce Commission by President Trump's Executive Order.
Question 81		1 / 1 point

Among the following choices, the most expensive transportation mode is typically:

Question options:

	Air.
	Water.
	Truck.
	Rail.
	Pipeline.
Question 82		1 / 1 point

The transportation economic principle that best characterizes economy of distance is:

Question options:

	Consolidation.
	Load-off.
	Tapering.
	Spanning.
	Ton-miles.
Question 83		1 / 1 point

Since 2005, the use of intermodal transportation has:

Question options:

	Remained about the same
	Increased significantly
	Increased slightly
	Decreased significantly
	Decreased slightly
Question 84		0 / 1 point

The Hazardous Materials Transportation Uniform Safety Act of 1990 was a form of:

Question options:

	Economic Regulation
	Interstate Regulation
	Social Regulation
	State Regulation
	Local Jurisdiction Fire Code
Question 85		1 / 1 point

The mode of transportation hauling the most annual domestic tonnage is:

Question options:

	Truck.
	Air.
	Rail.
	Water.
	Freight Forwarder.
Question 86		0 / 1 point

Which of the following is a non-operating transportation intermediary:

Question options:

	Bonded Warehouse.
	United Parcel Service.
	Freight Forwarder.
	None of the above selections.
	All of the above selections.
Question 87		1 / 1 point

One function of a distribution warehouse is consolidation, which means the facility is being used to:

Question options:

	Group small inbound shipments into fewer larger outbound shipments.
	Collect products or packaging materials for disposal.
	Hold safety stock inventory.
	None of the above choices.
	All of the above choices.
Question 88		0 / 1 point

A company which has limited experience in warehousing but has a need to establish temporary warehouse facilities in multiple cities would most likely use:

Question options:

	Private warehouses.
	Public warehouses.
	Contract Warehouses.
	Common Warehouses.
	Ad Hoc Warehouses.
Question 89		1 / 1 point

When a warehouse handles cross-dock inventory, it:

Question options:

	Must be staged for shipping.
	Typically moves directly from receiving to shipping docks.
	Typically moves directly from shipping to receiving docks.
	Always is tagged for shipping.
	Is considered short movement freight.
Question 90		1 / 1 point

The principal economic benefits of warehousing are:

Question options:

	Receiving, shipping, handling, and storage.
	Shipping, receiving, assortment, and value added.
	Consolidation, sorting, seasonal storage, and reverse logistics.
	None of the above benefit combinations.
	All of the above benefit combinations, plus several others.
Question 91		1 / 1 point

A firm that supports an automotive assembly plant by providing just-in-time (JIT) inventory is engaged in:

Question options:

	Cross Docking.
	Order Assembly.
	Mixing.
	Sequencing.
	Inventory put-away and retrieval.
Question 92		1 / 1 point

When a firm "spot stocks" inventory, they are engaged in:

Question options:

	Placing inventory in an exact location in the warehouse.
	Placing inventory in consignment
	Positioning inventory in bulk-pick locations for ease of identification.
	Placing inventory in a local warehouse in anticipation of future need.
	Marks inventory with spot-identifiers before placing in forward stock positions.
Question 93		1 / 1 point

The Scheer firm decides to assemble specific products in their distribution warehouse to meet customer requests. They are:

Question options:

	Performing custom distribution.
	Performing selective marketing.
	Performing value added services.
	All of the above choices.
	None of the above choices.
Question 94		1 / 1 point

When a firm engages in extended storage, they usually are:

Question options:

	Holding inventory in excess of typical replenishment requirements.
	Speculating that inventory cost will decrease.
	Engaged in product customization.
	Performing value added services.
	Performing custom distribution.
Question 95		1 / 1 point

"Slotting" a warehouse means:

Question options:

	Products are positioned for value added services.
	Products are assigned a specific warehouse location.
	Products are placed in a pick line location.
	All of the above choices.
	None of the above choices.
Question 96		1 / 1 point

When engaged in warehouse picking and a combination of customer order requirements are selected simultaneously, the method being employed is called:

Question options:

	Combination discrete selection.
	Combined selection.
	Discrete selection.
	Wave selection.
	Mix-and-match picking.
Question 97		0 / 1 point

The use of a Warehouse Management System (WMS) to route forklift trucks on-demand is called:

Question options:

	Simultaneous routing.
	Variable routing.
	Directed routing.
	Task interleaving.
	Real-time dispatching.
Question 98		1 / 1 point

Supply chain design decisions focus on:

Question options:

	How much inventory is necessary to meet service requirements?
	How many warehouses should the firm use and where should they be located?
	How should the firm route trucks for deliveries?
	Which channels of distribution should the firm use?
	B and D above.
	A and C above.
Question 99		0 / 1 point

Which of the following is the best method to determine inventory parameters such as safety stock and order quantity?

Question options:

	Inventory simulation.
	Supply chain design optimization.
	Analytic inventory formulation.
	Transportation analysis tool.
	Warehouse Management System (WMS).
Question 100		1 / 1 point

Which of the following problems is not appropriate for a transportation analysis tool?

Question options:

	Which routes should be assigned to which vehicle types?
	How should deliveries be grouped together to form routes?
	What delivery sequence should be used to accommodate customer time restrictions?
	How many distribution centers should there be to best serve customers?
	What are the trade-offs between less-than-truckload and truckload services?
Question 101		1 / 1 point

The primary objective(s) of freight lane analysis are:

Question options:

	Minimize overall freight cost.
	Balance freight movements between multiple origins and destinations.
	Identifying possibilities for back-hauls.
	All of the above choices.
	None of the above choices.
Question 102		1 / 1 point

The idea of structuring logistics as an integrated organization:

Question options:

	Has been a concern since the beginning of the industrial revolution.
	First arose during the 1950s.
	Became necessary because of advanced information systems.
	Is more important for manufacturers than it is for retailers.
	Is more important for transportation companies than it is for wholesalers.
Question 103		0 / 1 point

Which of the following is not considered a barrier to achieving process integration?

Question options:

	Measurement and reward systems.
	Organization structure.
	Knowledge hoarding.
	Financial resources.
	Information and activity "silos."
Question 104		0 / 1 point

As a general rule, a supply chain member whose logistical competency is highly specialized or unique:

Question options:

	Will participate in multiple supply chains.
	Assumes more risk in overall supply chain performance.
	Doesn't have to worry about power relationships within a supply chain.
	Has no useful role in a supply chain.
	Can charge whatever it wants for services because substitution isn't feasible.
Question 105		0 / 1 point

Over the last several decades, supply chain management has increasingly been shifting to:

Question options:

	Manufacturers.
	Third Party Logistics (3PL) providers.
	Contract Warehouses.
	Wholesalers.
	Retailers.
Question 106		0 / 1 point

The most elementary form of collaboration in supply chains is seen in the form of:

Question options:

	Contracting.
	Out-sourcing.
	Alliances.
	Administered systems.
	In-sourcing.
Question 107		0 / 1 point

Which type of supply chain relationship typically requires the least information sharing among participants.

Question options:

	Out-sourcing.
	In-sourcing.
	Alliance.
	Contracting.
	Administered.
Question 108		0 / 1 point

Initial implementation of successful supply chain collaborative relationships usually requires:

Question options:

	Compatible information systems
	Identical organizational cultures
	Common organizational vision
	All of the above selections.
	A and C only.
Question 109		1 / 1 point

Scheer Company consistently delivers on-time as promised to customers.  This type of performance is critical to:

Question options:

	Developing character-based trust.
	Developing reliability-based trust.
	Developing power in a supply chain.
	All of the above selections.
	A and C only.
Question 110		1 / 1 point

A trade-off is best described by which of the following:

Question options:

	The relationship between two variables.
	The sum of two variables.
	One variable minus the other variable.
	Half of one variable plus half of the other variable.
	The opposite of a trade-in.