lscm exam 1

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.
true
A key element in Wal-Mart’s ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.
true
Globalization has had little effect on consumers.
false
Supply and demand has become less volatile as managers become more adept at controlling the elements.
false
Outsourcing is a fairly new concept.
false
SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.
true
7. It is expected that some or all of the BRIC countries (Brazil, Russia, India & china) will replace the so-called VISTA countries (Vietnam, Indonesia, S. Africa, Turkey and Argentina) as low cost producers of various products and services.
false
8. The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily.
false
9. It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfers.
true
10. The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2
false
11. Even though there are references to supply chain management in the 1980s, SCM did not capture the attention of senior-level management until the 1990s.
true
12. Supply chain managers no longer need to worry about suboptimization in light of today’s technology.
false
The utility created through the basic marketing activities is known as place utility.
false
Transportation is the physical movement or flow of goods.
true
During the 1990s and 2000s, logistics costs as a percentage of gross national product declined.
true
An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow.
true
Acme Battery distributes its batteries to warehouses, where they are stored until ordered by a retailer. The warehouses are located close by the retail markets served. This is the logistics channel approach to logistics.
true
In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.
false
The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.
false
To hold down distribution cost, the lowest cost carrier should always be used.
false
The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
true
1. Globalization is not considered to be one of the external factors driving change in logistics.
false
The third era of globalization is said to have begun around the year 2000. The significant characteristic of this era is that it is being powered by individuals and smaller organizations in contrast to the countries of the first era and the large companies of the second era.
true
The supply chain should manage four important flows, namely, materials and products, information, financials, and demand.
true
Operating globally has become harder to accomplish for individuals and small companies.
false
The terms of a demise charter transfers full control of the chartered vessel to the charterer.
true
Customs Trade Partnership Against Terrorism (C-TPAT) is a mandatory program in which importers must participate.
false
The North American Free Trade Agreement has removed all trade barriers between the U.S., Canada, and Mexico.
false
A maquiladora plant can be located anywhere in South America.
false
Ocean transportation offsets slower service with lower rates than other modes
true
A firm using air transportation cannot use the same packaging for international shipping as for domestic shipping because many cargo aircraft are not pressurized.
false
A Foreign Freight Forwarder is unregulated by the government.
false
Export Trading Companies and Export Management Companies are essentially the same.
false
An importer can store goods in a bonded warehouse for up to three years without paying duty.
true
Soft issues such as social and cultural concerns should not present a challenge for supply chain managers, whose role is to focus on the physical side of supply chain execution.
false
Outbound-to-customer logistics systems are also referred to as physical distribution.
true
Materials management and physical supply are terms that cannot be used interchangeably.
false
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
Phantom demand is created by over-ordering during peak demand.
true
5. 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
6. External balancing methods involve managing production and inventory flexibility to help offset the imbalance of supply and demand.
false
7. Forecasting has become extremely accurate, especially since the development of the S&OP process.
false
Dependent demand is directly influenced by independent demand.
true
9. A weighted moving average assigns higher weights to more recent periods.
true
Exponential smoothing can use constants higher than 1, but not more than 5.
false
11. Adjusting a forecast for seasons basically uses a combination of seasonal factors and average demand to arrive at an adjusted forecast.
true
12. While there are four types of forecast error measures that can be used, none are foolproof.
true
13. A sales and operations planning process (S&OP) can produce a forecast internally that all functional areas agree upon and can execute.
true
14. Collaborative planning, forecasting, and replenishment (CPFR) has not been considered to be a good process, as it excludes transportation.
false
15. A channel of distribution is controlled by the marketing department, which selects the physical structures and intermediaries through which the product(s) flow.
false
16. An important observation to note about channel structure is that it involves the elements of fixed costs versus variable costs.
true
17. Integrated fulfillment is preferred to dedicated fulfillment.
false
Customer service is anything that touches the customer.
true
Most organizations employ all six definitions of customer service in their order management process.
false
Customer relationship management is a new concept only recently receiving attention.
false
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
The identification of the product/service package for each customer segment is one of the easier activities in the CRM process.
false
Activity-based costing works well in warehouse-type environments but does not work for
customer service applications.
false
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
“Order to cash” and “order cycle” are the same.
true
9 “Order to cash” and “replenishment cycle” are the same.
false
The buyer and seller look at order time from the same perspective.
false
11. Process D1: Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC cycle model.
true
12. There are ten principal activities to the OTC model.
false
13. Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.
true
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
15. Customer service is of equal importance to both logistics and marketing.
true
. 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
Dependability is not as important to a buyer as is absolute length of lead time.
false
18. There are four types of communications that exist between a buyer and a seller.
false
19. There are five logistics performance metrics from the buyer’s point of view.
true
20. A stockout always results in a back order.
false
21. For the best service, all products should be available at all levels regardless of cost.
false