Logistics 2

Supply chain information technologies can provide timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers
True
2. “It has been said that information is the lifeline of business, driving effective decisions and action. Quality of information is less and less important, given advances in technology.”
False
3. Information must be real-time, not just current
True
4. Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations
False
5. Information technology plays an important role in each of the five drivers of sustainable supply chain management practice
True
6. Now that people are computer-literate, they are no longer a major barrier to the effective use of information technology
False
7. The term supply chain information system (SCIS) is well defined and commonly understood
False
8. Technological capabilities ultimately determine the success or failure of SCIS, rather than the technology users
False
9 . Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item level
True
10. Supply chain execution tools have focused on a company’s internal logistics activities—order management, warehouse management, inventory management, labor optimization, and transportation management—and are being expanded into new integration software applications
True
11. Event management systems monitor the supply chain for events that are out of tolerance, such as a shortage of parts at a manufacturing location or the breakdown of a truck delivering an important order
True
12. Business intelligence applications are being used to gather information on competitors and their suppliers
False
13. ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses.
True
14. Spreadsheets and database software no longer have a place in SCIS as newer tools have supplanted them.
False
15. SCIS software selection is relatively straightforward as the choices have been simplified
False
16. Supply chain software is now available over the Internet. These applications are collectively known as on-demand software
True
17. RFID applications have been widely embraced due to their low cost and high reliability
False
18. Supply chain software sales faltered during the 2007-2009 recession and remained flat in 2010 and 2011
False
19. Individual supply chain applications must work together to provide a holistic view of all relevant processes, and must also link effectively to supply chain partners
True
20. The _________ of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses
visibility
21. Which of the below is not part of the seven Rs of logistics
quality
22. Which of the following is NOT one of the five drivers of sustainable supply chain management practice
execution
23. What are the five drivers of sustainable supply chain management practice?
1. optimization
2. synchronization
3. adaptability
4. velocity
5. profitability
24. What are the seven Rs?
page 184
___________ is/are a major barrier to the effective use of information technology
People
25. The term supply chain information system (SCIS) is defined as
information system that automate the flow of information between a firm and its suppliers
26. Supply chain software that provides a platform for manufacturers, distributors, and retailers to aggregate and organize item-related data such as item number, price, description, and weight is called
data synchronization tools
27. Supply Chain software includes technologies that
1. address virtually every function and task that occurs in the supply chain.
2. help organizations plan, execute, and control supply chain activities in real time.
3. help to maintain visibility of inventory
28. ERP systems
have information elements needed by SCIS applications
29. Managers have several options for software development and implementation. They include
1. internal development.
2. third party logistics firms.
3. external software vendors.
30. Outbound-to-customer logistics systems are also referred to as physical distribution.
True
31. Materials management and physical supply are terms that cannot be used interchangeably
False
32. Demand management might be defined as focused efforts to estimate and manage customers’ demand, with the intention of using this information to shape operating decisions
True
33. Phantom demand is created by over-ordering during peak demand
True
34. The essence of demand management is to estimate and manage customer demand so that demand and supply are balanced to the point where there are zero stockouts and zero safety stocks
False
35. External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand.
False
36. Forecasting has become extremely accurate, especially since the development of the S&OP process.
False
37. Dependent demand is directly influenced by independent demand
True
38. A weighted moving average assigns higher weights to more recent periods
True
39. Exponential smoothing can use constants higher than 1, but not more than 5
False
40. Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast
True
41. While there are four types of forecast error measures that can be used, none are foolproof
True
42. A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute
True
43. Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation
False
44. A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow
False
45. An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs
True
46. An outbound-to-customer logistics system is also referred to as
physical distribution
47. An inbound-to-operations logistics system is also referred to as
physical supply
48. Demand management includes
flows of products, services, and capital
49. The term functional silos refers to:
lack of coordination between departments
50. Oversupply is created by
phantom demand
51. The essence of demand management is to estimate and manage ___________ and use this information to make operating decisions
customer demand
52. The internal balancing method deals with
inventory and production flexibility
53. One type of demand fluctuation is caused by random variation. What is random variation?
a development that cannot normally be anticipated
54. The weighted moving average method assigns
a weight to each previous period
55. Exponential smoothing
is one of the most commonly used techniques
56. Four types of forecast error measures can be used. Which one of the following is not one of the four types?
a. cumulative sum of forecast errors
b. exponential smoothing for trends
c. mean squared error
d. mean absolute deviation
exponential smoothing for trends
57. Many industry initiatives have attempted to create efficiency and effectiveness through the integration of supply chain activities and processes. Among the various initiatives is/are
quick response (QR), vendor-managed inventory (VMI), and efficient consumer response (ECR)
58. Customer service is anything that touches the customer.
True
59. Most organizations employ all six definitions of customer service in their order management process.
False
60. Customer relationship management is a new concept only recently receiving attention
False
61. Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers based on the specific costs of servicing a customer’s orders relative to how, how much, what, and when a customer orders
True
62. The identification of the product/service package for each customer segment is one of the easier activities in the CRM process
False
63. Activity-based costing works well in warehouse-type environments but does not work for customer service applications
False
64. With the proper information on how a customer’s interaction with the shipper drives the firm’s costs, the firm can then segment its customers by profitability
True
65. “Order to cash” and “order cycle” are the same
True
66. “Order to cash” and “replenishment cycle” are the same
False
67. The buyer and seller look at order time from the same perspective
False
68. Process D1: Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC cycle model
True
69. There are ten principal activities to the OTC model
False
70. Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing
True
71. A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory
True
72. Customer service is of equal importance to both logistics and marketing
True
73. From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer
True
74. Dependability is not as important to a buyer as is absolute length of lead time
False
75. There are four types of communications that exist between a buyer and a seller
false
76. There are five logistics performance metrics from the buyer’s point of view
True
77. A stockout always results in a back order
False
78. For the best service, all products should be available at all levels regardless of cost
False
79. Pareto Analysis (also known as the 80/20 rule) may be used to classify parts, customers, or activities. Which is the best measurement to use when classifying customers with Pareto Analysis for the purpose of business expansion?
Profitability per customer
80. Customer service can be defined as
anything that touches the customer
81. Customer relationship management is the art and science of
positioning customers to improve the profitability of the organization
82. What are the steps in the CRM process?
segment customer base, identify service/package, then measure service and improve
83. Activity Based Costing
can be combined with customer segmentation
84. Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.
gross sales
85. Those customers who are in the “Danger Zone” segment are
the least profitable
86. Order management system represents the principal means by which
buyers and sellers communicate information relating to individuals orders of product
87. The term replenishment cycle refers to
the acquisition of additional inventory
88. While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on
variability or consistency of this process
89. Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to
increase the velocity of cash back to the selling organization
90. The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix
place
91. Which is NOT part of dependability?
consistent pricing
92. The SCOR model provides suggested metrics
across multiple dimensions for each of the five Level One processes
93. Inventory management is not as important as it once was due to other factors that have come into play
False
94. Inventory and the GDP grew at the same rate from 1994 through 2010
False
95. Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention.
False
96. “Batching economies” and “cycle stocks” are the same
True
97. Purchase economies and transportation economies are not complementary
False
98. Setting safety stock levels for an organization is now a science
False
99. A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply.
True
100. Many companies can make a case for using a formal logistics organization to help resolve inventory objective conflicts
True
101. Capital cost is also called interest or opportunity cost
True
102. Storage space costs are not variable
False
103. Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself
True
104. The reorder point depends on the orders in-house at that time.
False
105. EOQ can only be used for “push” inventory
False
106. Most organizations would not operate under conditions of certainty for a variety of reasons
True
107. In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels.
True
108. JIT, MRP, MRP II, and DRP all incorporate some version of the basic EOQ model into their philosophies.
True
109. JIT was developed in the U.S. and copied by the Japanese
False
110. JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory
False
111. MRP has been known for some time but lacked interest until recently
True
112. MRPII will not allow an organization to integrate financial planning with operations and logistics
False
113. The ABC analysis is based on Pareto’s Law
True
114. Inventory as an asset on the balance sheet and a __________ on the income statement
variable expense
115. Inventory and the GDP grew by ______ amounts between 1994 and 2010
different
116. Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?
demand
117. WIP inventories
are associated with manufacturing
118.Seasonal stocks are not influenced by
EOQ
119. Which department does not have any impact on inventory
corporate governance
120. Capital cost focuses on the cost of capital tied up in ________ and the resulting lost opportunity from investing that capital elsewhere
inventory
121. Ordering cost refers to the expense of placing an order and
does not include the cost of the product
122. In the event of a “stockout” one of the things that could happen is
extra shipping cost may be incurred
123. Dependent demand relates to
demand for another inventory item or product
124. An organization selling its products FOB destination holds the title to the goods until
products reach the customer’s facility
125. JIT is a _______ system
pull
126. A DRP system is usually coupled with a _______ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods
MRP
127. Procuring inexpensive transportation is the major goal of supply chain managers
False
128. Given the availability of information, transportation buying has become comparatively easy
False
129. The growth of outsourcing has created transportation challenges
True
130. CBP is now enforcing the “48 Hour Rule”.
False
131. Motor carrier cost is highly variable
True
132. Railroad’s length of haul is longer than that of motor carriers.
True
133. The railroads have not shared in the growth in transportation and so do not have any capacity issue
False
134. Nonintegrated air carriers do not supply door-to-door service
True
135. Pipeline costs are predominantly fixed
True
136. Intermodal growth base been flat.
False
137. The responsibly for transportation management is typically not assigned to any one management discipline in an organization
False
138. Outsourcing transportation is a “buy” decision
True
139. All modes of transportation provide the same basic service
True
140. Railroads have accessibility limitations
True
141. Some companies like PepsiCo have chosen to move freight on company operated equipment, despite the fact that these private fleets cost more than for-hire carriers
False
142. Product value is an important factor in modal selection
True
143. Following the trend in deregulation of most transportation modes, freight rate negotiations are being decentralized.
False
144. The main strategy behind routing guides is to maintain very tight control of transportation costs
False
145. A bill of lading can be either straight or order
True
146. A carrier is never excused from a claim.
False
147. A key requirement for service quality monitoring is information
True
148. KPI is another term for a shipping document
False
149. Transportation efficiency promotes __________ in the supply chain
competition
150. The distances in today’s global supply chains produce
higher costs, longer transit times, and more disruptions
151. Economic deregulation sparked competition among carriers in several areas. Which of these is not an area of competition?
accessibility
152. Security legislation
has caused expense issues for carriers
153. Which is not a mode of transportation?
3PL
154. Air carriers were historically looked upon as
emergency only carriers
155. Challenges for the trucking industry include:
competition
156. Railroads fall into a group called:
natural monopolies
157. Trade imbalances affect
water carriers
158. Which management area in an organization does not normally have transportation responsibility?
manufacturing
159. Terms of sale establish
when ownership and title of the goods passes from seller to buyer
160. Desirability refers to:
characteristics that influence modal selection
161. The main strategy behind routing guides is to:
promote supply chain excellence
162. Which of these is not a freight document:
routing guide, bill of lading, freight bill, or freight claims form?
routing guide