OM 3010

Chapter 7

Safety stock exists for which of the following reasons?

A. To allow less expensive purchases by buying more.
B. To allow for transportation time.
C. To provide protection against the uncertainties of supply and demand.
D. None of these.

C. To provide protection against the uncertainties of supply and demand.
Which of the following is NOT a role of inventory?

A. Increasing quality of finished goods
B. Balancing supply and demand
C. Buffering uncertainty in supply or demand
D. Enabling geographical specialization

A. Increasing quality of finished goods
A batch of Raisin Bran that has been made at Kellogg’s but not yet packaged in its final cereal box would be an example of what type of inventory?

A. Raw material
B. Work-in-process
C. Finished goods
D. Maintenance, repair, and operating supplies (MRO)

B. Work-in-process
Taxes and insurance costs are an example of which of the following costs?

A. Ordering cost.

B. Governmental costs.

C. Carrying (or holding) costs.

D. None of these.

C. Carrying (or holding) costs.
5. Johnson Company had beginning inventory of $1,000,000 and ending inventory of $1,200,000. Johnson has determined inventory carrying cost to be 25 percent. Johnson’s inventory carrying cost was:

A. $250,000.

B. $275,000.

C. $300,000.

D. None of these.

B. $275,000.
6. Suppose demand is 45 units a month, average inventory is 60 units, and unit cost is $20. What is the annual inventory turnover?

A. 10

B. 9

C. 0.75

D. 15

B. 9
7. Next year a tire company wants to have an inventory turnover rate of 22 times per year. To achieve this turnover rate, what should be the average number of days of supply?

A. 16.6 days

B. 36 days

C. 0.6 days

D. 22 days

A. 16.6 days
8. Independent demand inventory models can be used to determine:

A. When to buy and how much to buy.

B. How to reduce stockouts.

C. Stock levels for regular and one-time buys.

D. All of these.

D. All of these.
9. Which of the following statements is true regarding a periodic review inventory system?

A. Safety stock is not needed when periodic review systems are used.

B. The same quantity of inventory is ordered each time an order is placed.

C. Inventory replenishment orders are placed in equal increments of time.

D. None of the selections are true.

D. None of the selections are true.
10. What might a company do to reduce the amount of cycle stock it holds?

A. Attempt to reduce supplier lead time.

B. Always take advantage of supplier quantity discounts.

C. Attempt to reduce demand variation.

D. Attempt to reduce order costs.

E. All of these.

D. Attempt to reduce order costs.
11. Which of the following might a company try to do to reduce the total amount of safety stock it holds?

A. Implement and use ABC analysis of inventory items.

B. Attempt to reduce variation in supplier lead times.

C. Implement demand management approaches.

D. A and B.

E. All of these.

E. All of these.
12. The ABC analysis used for analyzing inventory is an example of:

A. Safety stock calculation.

B. Regression analysis.

C. Pareto’s Law.

D. Inventory carrying cost.

C. Pareto’s Law.
13. Which of the following pieces of information is identified in the original 12-digit UPC code?

A. Product price.

B. Where product was manufactured.

C. The manufacturer of the item.

D. A and B.

E. All of these are part of a UPC code.

C. The manufacturer of the item.
14. ___________ inventory is the costliest form of inventory one can hold.

A. Finished goods

B. Raw materials

C. Components

D. Work-in-process

A. Finished goods
15. When small changes generated by a customer produce progressively larger changes at each stage upstream in the supply chain, this is known as:

A. Buffering.

B. Bullwhip effect.

C. Pareto effect.

D. Vendor managed inventory.

B. Bullwhip effect.
16. Which of the following are NOT often associated with a vendor-managed inventory (VMI) arrangements?

A. Long-term commitments from both parties.

B. Supplier representative located at the customer site.

C. Customers recommend to suppliers how they should schedule production.

D. Supplier places replenishment orders.

E. All of these are typically associated with VMI.

C. Customers recommend to suppliers how they should schedule production.
Chapter 10

1. All of the following are supply management goals EXCEPT:

A. Ensure timely availability of resources.

B. Purchase at the lowest price.

C. Enhance quality.

D. Assess technology and innovation.

B. Purchase at the lowest price.
2. Zanda Corp. had outsourced its production to a company located in Asia. Recently it decided to continue to outsource but bring the production back to a company located in the United States. This decision was likely made after Zanda:

A. Conducted a spend analysis.

B. Conducted a make or buy analysis.

C. Examined total cost of ownership.

D. Developed supplier certification processes.

C. Examined total cost of ownership.
3. Which of the following would NOT be a step in conducting a make/buy analysis?

A. Assessing quantitative costs of outsourcing

B. Evaluating new suppliers who could make the SKU

C. Assessing the relationship of the product to the firm’s core competencies

D. Conducting a detailed internal audit of purchasing practices

D. Conducting a detailed internal audit of purchasing practices
4. Outsourcing is often a good choice when:

A. There are only a few suppliers.

B. A product is in the mature phase of the life cycle.

C. Technology is new.

D. The product is critical to a firm’s competitiveness.

B. A product is in the mature phase of the life cycle.
5. Which of the following is NOT a benefit of outsourcing?

A. Greater flexibility to change product specifications

B. Better access to market information

C. Lower supply management costs

D. Less capital needed for investment

C. Lower supply management costs
6. The process of understanding how a firm is spending its money and with which suppliers is called:

A. Strategic sourcing.

B. Make or buy analysis.

C. Market analysis.

D. Spend analysis.

D. Spend analysis.
7. Aspen Corporation has discovered that it uses 10 different suppliers for a particular type of item, has bought 20 different models of that item, and total expenditures last year for the item were $100,000. Aspen most likely is conducting:

A. Supplier audits.

B. Spend analysis.

C. Supplier certification.

D. Make or buy analysis.

B. Spend analysis.
8. Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low. A recommended sourcing strategy for Jones is to:

A. Multiple source.

B. Increase efficiencies.

C. Build partnerships.

D. Consolidate purchases

A. Multiple source.
9. Benefits of single sourcing include all of the following EXCEPT:

A. Quantity discounts.

B. More consistent quality.

C. Better supplier relationships.

D. Less supply risk.

D. Less supply risk.
10. Squeaky Klean, a small consumer products company, purchases custom-designed plastic bottles for its cleaning products that are made at a single plant in Cleveland, Ohio. To make these bottles, specialized tooling must be purchased at a high cost and installed at a supplier’s plant. Its sourcing strategy for bottles should be to:

A. Use three or more suppliers.

B. Dual source.

C. Single source.

D. Insource bottle production.

C. Single source.
11. A primary reason for using global suppliers is to:

A. Improve sustainability.

B. Reduce transportation costs.

C. Take advantage of free trade agreements such as NAFTA.

D. Work with the same suppliers in many different regions of the world.

D. Work with the same suppliers in many different regions of the world.
12. A global food products company makes soups that are specifically tailored to the tastes of consumers in individual countries. What sourcing strategy is the company likely to use for its fresh ingredients such as vegetables?

A. Local, close to its production plant when possible.

B. National, using suppliers within each country.

C. Global, using the same suppliers across the world.

D. Low-cost country sourcing.

A. Local, close to its production plant when possible.
13. Which of the following is (are) advantages of full partnerships with suppliers, as compared to traditional adversarial relationships?

I. They help reduce uncertainties for both buyer and supplier.
II. The full partnership is easier to establish and maintain than other relationships, so more suppliers can be dealt with.
III. The full partnership assures the lowest material price.

A. I only

B. II only

C. III only

D. I and II only

E. II and III only

A. I only
14. Zanda Corp. is considering trying to develop a full partnership with a particular supplier. This suggests that the item Zanda buys from the supplier is:

A. A noncritical part.

B. A “bottleneck” item.

C. A strategically important part.

D. An item appropriate for a “leverage” strategy.

C. A strategically important part.
15. A relationship with a supplier that is characterized by lack of trust, little communication, and short-term transactions is called a(n):

A. Adversarial relationship.

B. Arms-length relationship.

C. Acceptance of mutual goals.

D. Full partnership.

A. Adversarial relationship.
16. When you need to identify a supplier for a new purchase, the FIRST place that you should look is:

A. A local trade show.

B. The list of your company’s current suppliers.

C. The list of suppliers that your company has used in the past.

D. The Web site of industry groups.

B. The list of your company’s current suppliers.
17. Advanced Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, AMC’s management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B’s ratings are 4, 4, 3, and 4. Which supplier has the better weighted score?

A. Supplier A

B. Supplier B

C. Neither, they both have the same weighted score.

C. Neither, they both have the same weighted score.
18. Which of the following is true about the use of weighted scoring models for supplier selection?

A. Once developed, the model weights should never change.

B. The supply management department should determine the weights.

C. The highest-scoring supplier should always be selected to receive the business.

D. There is a good deal of subjectivity in developing and using the model.

C. The highest-scoring supplier should always be selected to receive the business.
19. All of the following are true about supplier scorecards EXCEPT:

A. They reduce the need for incoming quality inspection.

B. They are used to provide performance feedback to suppliers.

C. They are often used to categorize suppliers based on an overall score.

D. They are used to measure supplier performance based on key performance indicators.

A. They reduce the need for incoming quality inspection.
20. Williams Inc. has acquired software to help manage interactions with its supply base. This suggests that Williams Inc. is involved in:

A. Vendor-managed inventory.

B. Supplier relationship management.

C. Online reverse auctions.

D. Supplier auditing.

B. Supplier relationship management.
Chapter 11

1. Which of the following best describes the concept of total landed cost?

A. The sum of all logistics costs related to a product.

B. The lowest logistics cost for a product.

C. The sum of all product- and logistics-related costs.

D. None of these.

C. The sum of all product- and logistics-related costs.
2 Zanda Corp. had established a production plant in Thailand. Recently it decided to close the plant and move production to Mexico. This decision was likely made after Zanda:

A. Conducted a spend analysis.

B. Conducted a make-or-buy analysis.

C. Examined total landed cost.

D. Evaluated consolidation strategies.

C. Examined total landed cost.
3. With respect to transportation regulation today in the United States:

A. There is no economic regulation of transportation.

B. There is more economic regulation than ever before.

C. There is very little safety/social regulation.

D. There is more safety/social regulation than ever before.

D. There is more safety/social regulation than ever before.
4. Jones Company learned that several other shippers in its hometown had customers located in the same markets that it serves. With this information, Jones should investigate the possibility of:

A. Market area consolidation.

B. Scheduled delivery consolidation.

C. Pooled delivery consolidation.

D. All of these.

C. Pooled delivery consolidation.
5. Zanda Corp. can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop. Should Zanda do this?

A. Yes, it will save $100.

B. Yes, it is simpler to do.

C. No, it will increase cost by $100.

D. It doesn’t matter based on cost.

C. No, it will increase cost by $100.
6. With respect to the following operating service characteristics of the modes of transportation, which combination is INCORRECTLY specified?

A. Speed: air is best; pipeline is worst.

B. Availability: truck is best; pipeline is worst.

C. Capability: pipeline is best; water is worst.

D. Dependability: pipeline is best; air is worst.

C. Capability: pipeline is best; water is worst.
7. With respect to the following operating service characteristics of the modes of transportation, which combination is CORRECTLY specified?

A. Speed: air is best; pipeline is worst.

B. Availability: air is best; pipeline is worst.

C. Capability: rail is best; air is worst.

D. Dependability: pipeline is best; truck is worst.

A. Speed: air is best; pipeline is worst.
8. Bill’s glass store needs to ship an order of 10 chandeliers to a builder about 1,000 miles away. The chandeliers cost about $10,000 each, and Bill will be paid upon delivery. Bill plans to ship the order by truck at a cost of $1,000. The delivery will take 10 days. Bill uses a 30 percent annual inventory carrying cost. What will be the approximate total shipping and transit inventory carrying cost of the shipment?

A. $633.33

B. $821.92

C. $1,000

D. $1,821.92

D. $1,821.92
9. Richard’s Rollerskate Company relies on Simon’s Trucking to transport all of their products. Simon’s Trucking is the only shipping company for RRC, and all products are shipped in trucks that look like giant roller skates with Richard’s Rollerskate branding on the trucks. Richard’s Rollerskate is likely using which carrier type?

A. Common carrier.

B. Contract carrier.

C. Private carrier.

D. None of these.

B. Contract carrier.
10. Suppose you were the logistics manager for Way-Off Manufacturing and Marketing, a manufacturer of mosquito repellant. Further suppose that Way-Off markets its products in the entire United States. However, in each geographic region of the country, Way-Off only needs to warehouse products for two months during each year. Way-Off probably would use what type of warehousing?

A. Public

B. Private

C. Contract

D. Common

A. Public
11. A major disadvantage of private warehousing is:

A. It offers less control than contract warehousing.

B. It requires more investment than contract warehousing.

C. It has less flexibility in operating policies than contract warehousing.

D. All of these are disadvantages of private warehousing.

B. It requires more investment than contract warehousing.
12. Zanda Corporation’s CEO watched in amazement and frustration as workers handled and loaded individual products onto trucks. She felt handling the individual items was very cumbersome. She should investigate the possibility of:

A. Using RFID.

B. Containerization.

C. AS/RS.

D. None of these.

B. Containerization.
13. A company has determined the ideal number of locations by looking at the trade-offs described the text. It decides to open more warehouse locations than this “ideal.” This decision would most likely result in ___________ and ___________.

A. Poorer service to customers and higher cost

B. Better service to customers and less cost

C. Better service to customers and higher cost

D. Poorer service to customers and lower cost

C. Better service to customers and higher cost
Chapter 16

1. When people and profit intersect, from a sustainability perspective, which of the following areas is most impacted?

A. Equitability

B. Sustainability

C. Bearability

D. Viability

A. Equitability
2.. Which of the following environmental initiatives/programs deals most specifically with building design and construction?

A. The Kyoto Protocol

B. Responsible Care

C. ISO 14000

D. LEED certification

C. ISO 14000
3.. Which of the following approaches provides management with an appropriate tool for assessing the full impact from “seed to sewer” (from creation to disposal)?

A. Life cycle analysis

B. Total cost of ownership

C. Trade-off analysis

D. Cost of quality analysis

A. Life cycle analysis
4. Over which stage of the product’s life cycle does operations management have the greatest amount of direct control?

A. Extraction

B. Packaging/transportation

C. Usage

D. Disposal

B. Packaging/transportation
5. BMW has introduced a program of covered scheduled maintenance for its cars. That is, when you bring in your vehicle for maintenance at a BMW dealership, BMW will cover the costs of everything (except for worn-out tires). This practice specifically targets which stage of the product life cycle?

A. Extraction

B. Packaging/transportation

C. Usage

D. Disposal

C. Usage
6. Which of the following statements most accurately represents the challenge of being environmentally sustainable?

A. The choices facing the firm are clear, and the obvious candidates for improvement can be easily identified.

B. It is not easy to be environmentally responsible since the choices facing management involve trade-offs.

C. This is a decision that firms must move on since the demand for environmental responsibility is driven by forces that cannot be ignored—governmental regulations, decreasing resource levels, and changing customer demands.

D. Being environmentally responsible is simply a matter of complying with governmental regulations.

B. It is not easy to be environmentally responsible since the choices facing management involve trade-offs.
7. From an operations standpoint, sustainability means that:

A. Profit is not an important goal.

B. A company should focus its efforts on reducing pollution.

C. Firms should pursue profit without damaging the environment or the well-being of future generations.

D. The firm must improve how it manages its people resources since these are important to the long-term survival of the firm.

C. Firms should pursue profit without damaging the environment or the well-being of future generations.
8. Lean systems thinking in operations management can extend to sustainability in what way?

A. Its focus on improving product quality.

B. Its focus on delivering products to customers faster.

C. Its focus on reducing waste of all types.

D. Its focus on product innovation.

C. Its focus on reducing waste of all types.
9. A specific analysis of the total greenhouse gases caused directly or indirectly by a product is called:

A. Carbon footprinting.

B. Life cycle analysis.

C. Life cycle waste assessment matrix.

D. Cap and trade.

A. Carbon footprinting.
10. The following environmentally responsible process/material matrix was developed for Zanda Corp. Zanda has determined that a score of 40 is its goal at this time, but efforts to lower its score will continue regardless. What is Zanda’s current score, and what is your conclusion?

A. 53, Zanda is doing better than its goal.

B. 53, Zanda is doing worse than its goal.

C. 47, Zanda, is doing better than its goal.

D. 47, Zanda is doing worse than its goal.

D. 47, Zanda is doing worse than its goal.
11. Walmart has announced that suppliers must attempt to improve their efforts in environmental management. In this announcement, Walmart could have included a requirement that suppliers meet the standards of:

A. ISO 9000.

B. ISO 2011.

C. ISO 9002.

D. ISO 14000.

D. ISO 14000.
12. The “triple bottom line” suggests that efforts should be devoted to assessing the impact of activities on:

A. People, profit, processes.

B. Profit, profit, profit.

C. People, planet, profit.

D. Profit, planet, processes.

C. People, planet, profit.
14. Which of the following sustainability issues has a significant impact on supply chain relationships?

A. Culture

B. Common usage of lean systems

C. Location

D. Governmental regulations and tariffs

A. Culture
15. Zanda Corp. has always operated within one country. It is contemplating opening production facilities in another country. Zanda should realize:

A. Production processes used domestically should work well in a different country.

B. The means of motivating the workforce domestically may not work well in a different country.

C. The technology used domestically is often the best to use in a different country.

D. The same business model that is used domestically should apply to the foreign country.

B. The means of motivating the workforce domestically may not work well in a different country.
16. As technology and cultures evolve, the best approach for operations managers is to:

A. Work harder.

B. Adapt their business models.

C. Retire.

D. Make their processes more efficient.

B. Adapt their business models.
17. Which of the following terms best describes the impact of sustainability initiatives on the business model?

A. Sustainability affects primarily the capabilities offered by the supply chain.

B. Sustainability helps the firm to change its value proposition.

C. Sustainability impacts primarily the customers that we serve.

D. Sustainability affects the entire business model.

D. Sustainability affects the entire business model.
13. Which of the following programs/initiatives strives to improve the lives of suppliers and their families?

A. ISO 14000

B. Responsible Care

C. LEED

D. FairTrade

D. FairTrade
1. Costs that refer to the managerial and clerical costs entailed in preparing the purchase or production order are known as

a. Ordering costs
b. Header costs
c. Line costs
d. Setup costs

d. Setup costs
2. What question must be considered in any inventory system?

a. What is to be ordered?
b. How much should be ordered?
c. When should the order be placed?
d. All of the above.

d. All of the above.
3. Match all of the following concepts to fixed-time period( A ) and fixed-order quality systems ( B )

1. Periodic counts of inventory are necessary
2. There is no order point in the system
3. A perpetual inventory record is necessary

a. A-2, B-1, B-3 c. A-1, B-2, B-3
b. B-1, B-2, B-3 d. A-1, B-2, A-3
e. A-1, A-2, B-3

e. A-1, A-2, B-3
4. Fixed-order quantity models are

a. Time triggered.
b. Fixed for a specified time period.
c. Made up of a variable order size.
d. Event triggered.

d. Event triggered.
5. Inventory is used to

a. Maintain independence of operations.
b. Meet variation in product demand.
c. Allow flexibility in production scheduling.
d. All of the above.

d. All of the above.
6. The time between the issuance of a replenishment order and their receipt of stock is

a. Stock time
b. Lead time
c. Work content time
d. In-process time

b. Lead time
7. Most inventory models are made based on

a. Cost minimization
b. Profit maximization
c. Optimum influence on demand
d. Minimizing setup times
e. Minimizing lead time

a. Cost minimization
8. Within the production system, partially completed units are called

a. Work-in-process
b. Buffer stock
c. Units-in-order
d. None of the above

a. Work-in-process
9. Purchased items typically account for more than what % of cost of goods sold?

a. 30
b. 40
c. 50
d. 60

d. 60
10. Which of the following is associated with supply chain management/Just-In-Time purchasing?

a. Cooperation among suppliers and customers
b. A large number of second source suppliers
c. Continuous competitive bids among many suppliers
d. Short term contracts

a. Cooperation among suppliers and customers
11. Supply-Chain Management refers to:

a. Forecasting customer requirements.
b. Managing inventory systems.
c. Managing the flow of information, material, and services from supplier to the end customer.
d. Using the sales forecast to implement an aggregate plan.

c. Managing the flow of information, material, and services from supplier to the end customer.
12. Which of the following is NOT a benefit of supply chain management/Just-In-Time Purchasing?

a. Consistent quality
b. Savings on resources
c. Lower costs
d. Less dependence on suppliers

d. Less dependence on suppliers
13. Which of the following is a way to counteract the bullwhip effect?

a. Using demand forecast updating
b. Using order batching
c. Using quantity discounts/promotions
d. Using information technology to improve processes.

b. Using order batching
Which of the following inventory systems would be most appropriate in controlling many items ordered from the same vendor?

a. Fixed Order Quantity System
b. Fixed Time Period System
c. Materials Requirements Planning System
d. One Period Inventory Model Using Marginal Analysis

b. Fixed Time Period System
15. Which of the following systems would be most appropriate in controlling components used in a complex assembly?

a. Fixed Order Quantity
b. Fixed Time Period System
c. Dependent Demand System
d. Single Period Inventory Model

c. Dependent Demand System
16. If two potential suppliers can deliver a part with the same quality and prices, the selection should be based on:

a. Age of the firms
b. The size of the firms
c. Outside evaluation
d. The capabilities and flexibilities of the firms.

d. The capabilities and flexibilities of the firms.
17. Just-in-time/supply chain management purchasing requires the following condition:

a. Many suppliers
b. Short-term contracts
c. Cooperation between purchasing and suppliers
d. Continuous competitive bidding

c. Cooperation between purchasing and suppliers
18. Which of the following is NOT a factor impacting the supply chain?
a. Recent Declines in Technological Capabilities
b. Reduced Number of Suppliers
c. Increased Competition
d. Shorter Product Life Cycles
a. Recent Declines in Technological Capabilities
19. Which of the following is typically NOT performed by the purchasing function
a) Select appropriate suppliers
b) Schedule the processing of raw materials into final products
c) Ensure that suppliers perform up to expectations
d) Administer supplier contracts
b) Schedule the processing of raw materials into final products
20. Which of the following is a way to counteract the Bullwhip effect
a) Using information technology to improve processes
b) Using demand forecast updating
c) Using order batching
d) Using quantity discounts
a) Using information technology to improve processes
21. Safety stock exists for which of the following
a) To allow less expensive purchases by buying more
b) To allow for transportation time
c) To provide protection against the uncertainties of supply and demand
d) All of the above
c) To provide protection against the uncertainties of supply and demand
22. If beginning inventory was $1,000,000The, ending inventory was $1,400,000, sales were $10,000,000, and anticipated sales are $50,000 per day, what is the days of supply
a) 24 days
b) 70 days
c) 60 days
d) 32 days
a) 24 days
23. What factors do companies need to consider when sourcing product
a) Material cost
b) Transportation cost
c) Production cost
d) All of the above
d) All of the above
24. Nately’s cabinets makes cabinets at an average cost of $2,000. Last year, Nately sold $5,000 units of the cabinets and had an annual turnover rate of 4 times. Nately has estimated her inventory cost to be 25%. What was Nately’s annual inventory carrying cost?
a) $125,000
b) $250,000
c) $312,000
d) $625,000
d) $625,000
25. The fundamental decision in logistics is
a) What to send
b) How often to send something
c) How many items to send
d) What form of transportation to use
d) What form of transportation to use
26. What is the difference between a service supply chain and a manufacturing supply chain
a) Service supply chains rely on interaction between customer and provider
b) Service supply chains are shorter
c) Manufacturing supply chains can have capacity issues
d) Manufacturing supply chains can be outsourced
a) Service supply chains rely on interaction between customer and provider
27. The fundamental principle behind inventory reduction is
a) Kanban systems
b) Accurate inventory records
c) Matching production rate to demand
d) Frequent deliveries
c) Matching production rate to demand
28. Which of the following inventory systems would be most appropriate in controlling many items ordered from the same vendor
a) Fixed order quantity system
b) Fixed time period system
c) Single period inventory model
d) Materials requirements planning system
b) Fixed time period system
29. Benefits of single sourcing include all of the following EXCEPT
a) Quantity discounts
b) More consistent quality
c) Better supplier relationships
d) Less supply risk
d) Less supply risk
30. Counting items to ensure an order is correct is an example of
a) Setup cost
b) Ordering cost
c) Carrying cost
d) Holding cost
b) Ordering cost
31. According to logistics system design matrix, when shipping high volumes of materials, all of following are logical EXCEPT
a) Air
b) Pipeline
c) Highway
d) Rail
a) Air
32. Cross docking refers to
a) The practice of having ships dock in the form of a cross
b) Using a consolidation warehouse to break down larger shipments for the local area
c) Finding the optimal parking location at a loading dock
d) Optimizing dock size in a port
b) Using a consolidation warehouse to break down larger shipments for the local area
13. Which of the following pieces of information is identified in the original 12-digit UPC code?

A. Product price.

B. Where product was manufactured.

C. The manufacturer of the item.

D. A and B.

E. All of these are part of a UPC code.

C. The manufacturer of the item.