Izumi Colquitt
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Quiz on Global Logistics Exam 2, created by Izumi Colquitt on 16/10/2018.

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Izumi Colquitt
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Global Logistics Exam 2

Question 1 of 140

1

Logistics managers can contribute to the success and benefit from involvement in supply chain management.

Select one of the following:

  • True
  • False

Explanation

Question 2 of 140

1

Logistics decisions are only made on the tactical and operational level.

Select one of the following:

  • True
  • False

Explanation

Question 3 of 140

1

Which Operational function does NOT pertain to logistics?

Select one of the following:

  • Packaging & Handling

  • Customer Service

  • Order Processing

  • Purchase Order Processing

  • None of the above

Explanation

Question 4 of 140

1

Goals and objectives of individual supply chain participants don't need to be compatible with the goals and objectives of other participants.

Select one of the following:

  • True
  • False

Explanation

Question 5 of 140

1

Successful Supply Chains ___________

Select one of the following:

  • Always use S&OP to align objectives

  • Employ the services of a 3PL to coordinate their complex supply chain

  • Maintain a systems approach across all organizations in the supply chain

  • Make use of efficient logistics functions in every stage from suppliers to customers.

  • None of the above

Explanation

Question 6 of 140

1

Which of the following is not a SCM process framework?

Select one of the following:

  • Supply Chain Operations Reference (SCOR)

  • Global Supply Chain Forum (GSCF)

  • Sales and Operations Plannig (S&OP)

  • Process Classification Framework (PCF)

  • All of the Above are SCM process frameworks

Explanation

Question 7 of 140

1

Which of the following is NOT part of the Supply Chain Operations Reference Model (SCOR)?

Select one of the following:

  • Plan

  • Purchase

  • Source

  • Return

  • Enable

Explanation

Question 8 of 140

1

In regards to the SCOR model, which step involves logistics considerations

Select one of the following:

  • Plan

  • Source

  • Make

  • Enabling

  • All of the above

Explanation

Question 9 of 140

1

Which of the following are enablers of Supply Chain Management Implementation?

Select one of the following:

  • Customer Power

  • Relationship Structure

  • Leveraging Technology

  • Supply Chain Facilitators

  • All of the above

Explanation

Question 10 of 140

1

Information has affected customer power by allowing customers to become highly knowledgeable about and organization and its competitors and their products.

Select one of the following:

  • True
  • False

Explanation

Question 11 of 140

1

Agile Supply Chains emphasize a speed and time component.

Select one of the following:

  • True
  • False

Explanation

Question 12 of 140

1

The need for fast and agile supply chains resulted in some e-commerce firms to begin offering say-day delivery services in select markets.

Select one of the following:

  • True
  • False

Explanation

Question 13 of 140

1

Which of the following is a quality of customer-centric supply chains?

Select one of the following:

  • Factory driven, push orientated

  • Focused on internal cost metrics such as labor and freight costs

  • Concerned with metrics that are concentrated in scope

  • Pull-orientated

  • None of the above

Explanation

Question 14 of 140

1

Which of the following is not part of a perfect order?

Select one of the following:

  • Simultaneous achievement of relevant customer metrics such as on-time delivery, damage free, and correct order quantity

  • Examines the total impact of an incorrect order in a single metric via a multiplier effect.

  • Metric has been shown to help diagnose problems within a supply chain and improve satisfaction.

  • Look at orders from the customer's perspective.

  • All of the above.

Explanation

Question 15 of 140

1

A lean supply chain may be more appropriate when customer demand is volatile, and customer requirements for variety are high.

Select one of the following:

  • True
  • False

Explanation

Question 16 of 140

1

Which term BEST defines the following approach?

Way to focus part of one’s supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output

Select one of the following:

  • Lean

  • Agile

  • Hybrid

  • Leagility

  • None of the above

Explanation

Question 17 of 140

1

One aspect of inventory control that could be influenced by a lean approach is to move from a pattern of stops and starts to a continuous flow.

Select one of the following:

  • True
  • False

Explanation

Question 18 of 140

1

Reduced inventory may decrease susceptibility (vulnerability) to natural disasters

Select one of the following:

  • True
  • False

Explanation

Question 19 of 140

1

Which of the following is not a way to reduce the amount of inventory in the supply chain?

Select one of the following:

  • Smaller, more frequent orders

  • Premium transportation

  • Supply-push replenishment

  • Elimination or consolidation of slower-moving product

  • None of the above

Explanation

Question 20 of 140

1

Companies should consider employing a long-term as opposed to a short-term orientation with key supply chain members i.e. Suppliers, Customers, Intermediaries, Facilitators

Select one of the following:

  • True
  • False

Explanation

Question 21 of 140

1

Relationship Structures: A long-term orientation tends to be predicated on which relational exchange?

Select one of the following:

  • "What's in it for me?" Philosohpy

  • "What's in it for us?" Philosophy

  • "What's in for the customer?" Philosophy

  • "What's in it for the long-term?" Philosophy

  • All of the above

Explanation

Question 22 of 140

1

A Short-Term orientation tends to focus on transactional exchanges

Select one of the following:

  • True
  • False

Explanation

Question 23 of 140

1

Which of the following are attributes of relational exchanges?

Select one of the following:

  • Trust

  • Commitment

  • Joint investment

  • Shared benefits

  • All of the above

Explanation

Question 24 of 140

1

Supply chain collaboration refers to cooperative relationships between members of a supply chain—formal or informal—between companies and their suppliers or customers, established to enhance the overall business performance of all parties

Select one of the following:

  • True
  • False

Explanation

Question 25 of 140

1

Levels of Supply Chain Collaboration:

In a transactional relationship type, what is an example of data exchanged?

Select one of the following:

  • Purchase orders; invoices

  • Order status; product prices

  • Forecasts; fulfillment processes

  • Share information before or after a purchase is made

  • All of the above

Explanation

Question 26 of 140

1

Levels of Supply Chain Collaboration:

In a Tactical information sharing relationship type, what is an example of data exchanged?

Select one of the following:

  • Purchase orders; invoices

  • Order status; product prices

  • Forecasts; fulfillment processes

  • Share information before or after a purchase is made

  • All of the above

Explanation

Question 27 of 140

1

Levels of Supply Chain Collaboration:

In a Strategic relationship type, what is an example of data exchanged?

Select one of the following:

  • Purchase orders; invoices

  • Order status; product prices

  • Forecasts; fulfillment processes

  • Share information before or after a purchase is made

  • All of the above

Explanation

Question 28 of 140

1

Levels of Supply Chain Collaboration:

The following best defines which Supply Chain Collaboration relationship type?

"Integrate and automate the flow of information to align with product flow"

Select one of the following:

  • Transactional

  • Tactical information sharing

  • Strategic

  • Lean

  • None of the above

Explanation

Question 29 of 140

1

The internet has no effect on inventories

Select one of the following:

  • True
  • False

Explanation

Question 30 of 140

1

Any logistics activity not performed in-house is representative of third-party logistics

Select one of the following:

  • True
  • False

Explanation

Question 31 of 140

1

Which of the following is true of a Fourth-party logistics provider (4PL)

Select one of the following:

  • Primary purpose is to ensure that various 3PLs are working toward relevant supply chain goals and objectives

  • Involve inbound and outbound transportation, carrier negotiation and contracting, and freight consolidation.

  • Any logistics activity not performed in-house is representative of fourth-party logistics

  • Must act on behalf of the largest firm in the supply chain

  • All of the above

Explanation

Question 32 of 140

1

Globalization is a possible barrier to supply chain management

Select one of the following:

  • True
  • False

Explanation

Question 33 of 140

1

Demand management can be defined as “the creation across the supply chain and its markets of a coordinated flow of demand.”

Select one of the following:

  • True
  • False

Explanation

Question 34 of 140

1

Which of the following pertains to Demand (sales) forecasting?

Select one of the following:

  • Refers to an effort to project future demand

  • Is a key component in demand management

  • Is helpful in make-to-stock situations

  • Is helpful in make-to-order situations

  • All of the above

Explanation

Question 35 of 140

1

Which of the following is not a basic type of demand forecasting model?

Select one of the following:

  • Judgmental

  • Time Series

  • Cause and effect (associative)

  • Sales and Operations Planning

  • All of the above

Explanation

Question 36 of 140

1

What basic type of demand forecasting model pertains to the following sentence?

"It’s appropriate for short term forecasting, or stable demand trends"

Select one of the following:

  • Judgmental

  • Time series

  • Cause and effect (associative)

  • Sales and Operations Planning

  • All of the above

Explanation

Question 37 of 140

1

The following characterizes which of the three basic types of demand forecasting models?

"This technique is very effective in considering external events like events promotion, pricing modifications, phase in/phase. Therefore, it’s appropriate for long-term forecasting"

Select one of the following:

  • Judgmental

  • Timer Series

  • Cause and effect (associative)

  • Sales and Operations Planning

  • None of the above

Explanation

Question 38 of 140

1

The moving average is a forecast that is the weighted average of previous demand (actual sales) and forecast levels.

Select one of the following:

  • True
  • False

Explanation

Question 39 of 140

1

Which of the following is NOT a dimension of demand planning

Select one of the following:

  • Product

  • Geography

  • Customer

  • Time Horizon

  • Supplier

Explanation

Question 40 of 140

1

Demand Planning:

When using a Time-series technique, determining the forecast unit and level of aggregation is critical for the process.

Select one of the following:

  • True
  • False

Explanation

Question 41 of 140

1

A time series demand planning technique will determine a forecast of units based on a time dimension, product dimension, customer dimension, and geography dimension.

Select one of the following:

  • True
  • False

Explanation

Question 42 of 140

1

The introduction of computer forecasting software has completely eliminated forecast errors.

Select one of the following:

  • True
  • False

Explanation

Question 43 of 140

1

In general, it does not matter what type of demand forecasting technique is used.

Select one of the following:

  • True
  • False

Explanation

Question 44 of 140

1

The selection of forecasting technique(s) depends on only a select number of factors

Select one of the following:

  • True
  • False

Explanation

Question 45 of 140

1

Which of the following is the best way to determine the best demand forecasting technique?

Select one of the following:

  • Use the previous year's data to determine the best technique

  • Only use the most recent few weeks of data

  • Measure the standard error of the technique previously used

  • Trial and error

  • none of the above

Explanation

Question 46 of 140

1

Order management refers to management of the various activities associated with the order cycle

Select one of the following:

  • True
  • False

Explanation

Question 47 of 140

1

Order cycle refers to management of the various activities associated with the order cycle

Select one of the following:

  • True
  • False

Explanation

Question 48 of 140

1

The order to cash cycle is not included in an organization's order management model

Select one of the following:

  • True
  • False

Explanation

Question 49 of 140

1

What best describes the "Order Cycle"

Select one of the following:

  • The time it takes for a company to collect funds from the customer

  • the management of various activities associated with the order cycle

  • The time when a customer places an order to when goods are received

  • The time it takes a product to be transported from the supplier to the customer

  • All of the above

Explanation

Question 50 of 140

1

How many stages are involved in the order cycle?

Select one of the following:

  • 1

  • 2

  • 3

  • 4

  • 5

Explanation

Question 51 of 140

1

Order Management

Which of the following is a stage of the order cycle?

Select one of the following:

  • Order transmittal

  • Order processing

  • Order picking and assembly

  • Order delivery

  • All of the above

Explanation

Question 52 of 140

1

Order Management

___________ Refers to the time from when a customer places an order until the seller receives the order

Select one of the following:

  • Order Transmittal

  • Order Processing

  • Order picking and assembly

  • Order delivery

  • All of the above

Explanation

Question 53 of 140

1

Order Managment

__________ Refers to the time from when the seller receives an order until an appropriate location (i.e. warehouse) is authorized to fill the order

Select one of the following:

  • Order Transmittal

  • Order Processing

  • Order Picking and Assembly

  • Order Delivery

  • All of the above

Explanation

Question 54 of 140

1

Order Management

The following steps describe which stage of the order cycle?

Checking for completeness and accuracy
A customer credit check
Order entry into the computer system
Marketing department credits salesperson
Accounting department records transaction
Inventory department locates nearest warehouse to customer and advises them to pick the order
Transportation department arranges for shipment

Select one of the following:

  • Order Transmittal

  • Order Processing

  • Order Picking and Assembly

  • Order Delivery

  • All of the above

Explanation

Question 55 of 140

1

Order Management

The following describes which stage of the order cycle?

Includes all activities from when an appropriate location is authorized to fill the order until goods are loaded aboard an outbound carrier

Select one of the following:

  • Order Transmittal

  • Order Processing

  • Order picking and assembly

  • Order delivery

  • All of the above

Explanation

Question 56 of 140

1

Order Management

Order delivery often represents the best opportunity to improve the effectiveness and efficiency of an order cycle

Select one of the following:

  • True
  • False

Explanation

Question 57 of 140

1

Order Management

Order picking and assembly can account for up to 2/3 of a facility's operating cost and time

Select one of the following:

  • True
  • False

Explanation

Question 58 of 140

1

Order Management

Handheld scanners and/or Radio-frequency identification (RFID) are common technologies used in the order processing stage.

Select one of the following:

  • True
  • False

Explanation

Question 59 of 140

1

Order Management

_____________ is the time from when a transportation carrier picks up the shipment until it is received by the customer.

Select one of the following:

  • Order Transmittal

  • Order Processing

  • Order Picking and Assembly

  • Order Delivery

  • All of the above

Explanation

Question 60 of 140

1

The variety of options in terms of transit time that are now available is a key delivery issue.

Select one of the following:

  • True
  • False

Explanation

Question 61 of 140

1

Transportation carriers are revamping their operations to provide faster transit times to customers

Select one of the following:

  • True
  • False

Explanation

Question 62 of 140

1

Customer service is simple for competitors to imitate

Select one of the following:

  • True
  • False

Explanation

Question 63 of 140

1

Which of the following best describes the following definition?

“the ability of logistics management to satisfy users in terms of time, dependability, communication , and convenience.”

Select one of the following:

  • Dependability

  • Customer Service

  • The Order Cycle

  • Order Delivery

  • All of the above

Explanation

Question 64 of 140

1

Which of the following is NOT one of the four dimensions of customer service?

Select one of the following:

  • Time

  • Dependability

  • Communication

  • Convenience

  • All of the above

Explanation

Question 65 of 140

1

_______________ Focuses on the ease of doing business with a seller

Select one of the following:

  • Time

  • Dependability

  • Communication

  • Convenience

  • All of the above

Explanation

Question 66 of 140

1

The goal of communication in customer service is to keep the seller informed

Select one of the following:

  • True
  • False

Explanation

Question 67 of 140

1

Managing Customer Service

Which of the following is NOT a specific customer service consideration

Select one of the following:

  • Establishing customer service objectives

  • Measuring customer service

  • Customer profitability analysis (CPA)

  • Service failure and recovery

  • All of the above

Explanation

Question 68 of 140

1

Managing Customer Service

Objectives for establishing customer service should be specific, measurable, achievable, results-focused, and Time-Bound (S.M.A.R.T.)

Select one of the following:

  • True
  • False

Explanation

Question 69 of 140

1

Managing Customer Service

Which of the following is NOT an objective for establishing customer service

Select one of the following:

  • General

  • Measurable

  • Achievable

  • Cost-effective

  • All of the above

Explanation

Question 70 of 140

1

Managing Customer Service

A key issue regarding measuring customer service is determining data sources to be used.

Select one of the following:

  • True
  • False

Explanation

Question 71 of 140

1

Managing Customer Service

Which of the following is NOT a key issue regarding measuring customer service?

Select one of the following:

  • Determining data sources to be used

  • Determining what factors to measure

  • Organizations must resist excessive measurement

  • Organizations have too much data

  • All of the above are key issues regarding measuring customer service

Explanation

Question 72 of 140

1

Managing Customer Service

"Perfect order" and "On-time delivery" are measures for which customer service dimension?

Select one of the following:

  • Time

  • Dependibility

  • Communication

  • Convenience

  • All of the above

Explanation

Question 73 of 140

1

Managing Customer Service

"Order cycle time" and "Inquiry response time" are measures for which customer service dimension?

Select one of the following:

  • Time

  • Dependability

  • Communication

  • Convenience

  • All of the above

Explanation

Question 74 of 140

1

Managing Customer Service

"Customer complaints" and "Order status information" are measures for which customer service dimension?

Select one of the following:

  • Time

  • Dependability

  • Communication

  • Convenience

  • All of the above

Explanation

Question 75 of 140

1

Managing Customer Service

"Return Process" and "Response to emergency situations" are measures for which customer service dimension?

Select one of the following:

  • Time

  • Dependability

  • Communication

  • Convenience

  • All of the above

Explanation

Question 76 of 140

1

Managing Customer Service

"Perfect order" and "On-time delivery" are good measures for customer service dependability.

Select one of the following:

  • True
  • False

Explanation

Question 77 of 140

1

Managing Customer Service

"Customer Complaints" and "Order status information" are good measures for customer service convenience.

Select one of the following:

  • True
  • False

Explanation

Question 78 of 140

1

"Activity Based Costing (ABC)" is the allocation of revenues and costs to customer segments or individual customers to calculate the profitability of the segments or customers

Select one of the following:

  • True
  • False

Explanation

Question 79 of 140

1

Customer Profitability Analysis (CPA) can help identify when an organization should pursue different logistical approaches for different customer groups.

Select one of the following:

  • True
  • False

Explanation

Question 80 of 140

1

An early delivery is an example of an order-related service failure

Select one of the following:

  • True
  • False

Explanation

Question 81 of 140

1

Which of the following is an example of an order related service failure?

Select one of the following:

  • An early delivery

  • An on time delivery

  • A perfect order

  • Customer's expected performance is met

  • None of the above

Explanation

Question 82 of 140

1

A Service Failure is a situation where actual performance does not meet the customer's expected performance

Select one of the following:

  • True
  • False

Explanation

Question 83 of 140

1

Which of the following is NOT true of "Service Recovery"

Select one of the following:

  • It is the process for returning a customer to a state of satisfaction after a service or product has failed to live up to expectations

  • Is usually inexpensive

  • May lead to customer loyalty

  • Can result in better performing organizations by learning from failure and implementing processes and policies to prevent reoccurrence.

  • All of the above

Explanation

Question 84 of 140

1

Service Recovery may lead to increases in customer loyalty

Select one of the following:

  • True
  • False

Explanation

Question 85 of 140

1

Inventory refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns.

Select one of the following:

  • True
  • False

Explanation

Question 86 of 140

1

Inventory management decisions don't differ for different functional areas of an organization.

Select one of the following:

  • True
  • False

Explanation

Question 87 of 140

1

Cycle stock refers to inventory that is held to guard against uncertainty in demand or lead time

Select one of the following:

  • True
  • False

Explanation

Question 88 of 140

1

Which of the following is NOT a reason to hold "Speculative Stock"

Select one of the following:

  • Seasonal demand

  • Projected price increases

  • Potential shortages of a product

  • Guard against the uncertainty in demand or lead time

  • All of the above

Explanation

Question 89 of 140

1

Psychic stock is inventory carried to stimulate demand

Select one of the following:

  • True
  • False

Explanation

Question 90 of 140

1

The following inventory classification refers to which of the following answer?

inventory that is en route between various fixed facilities in a logistics system such as a plant, warehouse, or store.

Select one of the following:

  • Pipeline or in-transit stock

  • Speculative Stock

  • Cycle Inventory

  • Safety Stock

  • None of the above

Explanation

Question 91 of 140

1

The following inventory classification refers to which of the following answer?

refers to inventory that is held for several reasons, including seasonal demand, projected price increases, and potential shortages of a product.

Select one of the following:

  • Cycle Stock

  • Safety Stock

  • Psychic Stock

  • Speculative Stock

  • None of the above

Explanation

Question 92 of 140

1

Buffer Stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand or lead time.

Select one of the following:

  • True
  • False

Explanation

Question 93 of 140

1

Base stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle.

Select one of the following:

  • True
  • False

Explanation

Question 94 of 140

1

Inventory costs in the twenty-first century represent approximately two-thirds of total logistics costs.

Select one of the following:

  • True
  • False

Explanation

Question 95 of 140

1

Which of the following is NOT an inventory cost?

Select one of the following:

  • Carrying Cost

  • Ordering Cost

  • Stockout Cost

  • Transportation Costs

  • All of the above

Explanation

Question 96 of 140

1

Inventory carrying costs is the cost associated with holding inventory

Select one of the following:

  • True
  • False

Explanation

Question 97 of 140

1

Stockout costs refer to those costs associated with ordering inventory, such as order costs and setup costs.

Select one of the following:

  • True
  • False

Explanation

Question 98 of 140

1

Which of the following is an example of a cost associated with "Ordering Costs"

Select one of the following:

  • Entering orders into the system

  • Obsolescence costs

  • Taxes

  • Handling costs

  • All of the above

Explanation

Question 99 of 140

1

Which of the following is an example of a "holding cost"

Select one of the following:

  • Inventory shrinkage

  • Cost of receiving an order

  • Conducting a credit check

  • Verifying inventory availability

  • All of the above

Explanation

Question 100 of 140

1

Which of the following is an example of an "Order Cost"

Select one of the following:

  • Cost of receiving an order

  • Conducting a credit check

  • Verifying inventory availability

  • Receiving a payment

  • All of the above

Explanation

Question 101 of 140

1

An increase in the number of orders leads to lower order costs but higher carrying costs

Select one of the following:

  • True
  • False

Explanation

Question 102 of 140

1

Costs respond in opposite ways to the number of orders or size of orders

Select one of the following:

  • True
  • False

Explanation

Question 103 of 140

1

Which of the following is the correct calculation for order costs?

Select one of the following:

  • # of orders per year x ordering cost per order

  • # of orders per year x total ordering cost per year

  • average inventory x carrying cost per unit cost

  • # of orders per year x ordering cost per SKU

  • None of the above

Explanation

Question 104 of 140

1

Which of the following is the correct calculation for Carrying costs?

Select one of the following:

  • # of orders per year x ordering cost per order

  • Average inventory x carrying cost per unit cost

  • # of orders per year x ordering cost per unit cost

  • Total inventory x carrying cost per unit cost

  • None of the above

Explanation

Question 105 of 140

1

There is a Trade-Off between Carrying and Ordering Costs

Select one of the following:

  • True
  • False

Explanation

Question 106 of 140

1

An increase in the number of orders leads to both higher order costs and higher carrying costs

Select one of the following:

  • True
  • False

Explanation

Question 107 of 140

1

Stockout cost is an estimated cost or penalty that is realized when a company is out of stock when a customer wants to buy an item.

Select one of the following:

  • True
  • False

Explanation

Question 108 of 140

1

Stockout costs don't involve a customer’s reaction to a company being out of stock.

Select one of the following:

  • True
  • False

Explanation

Question 109 of 140

1

Which of the following is considered a "Stockout Cost"

Select one of the following:

  • Cost when a company is out of stock when a customer wants to buy an item.

  • Costs of receiving an order

  • Verifying inventory availability

  • Obsolescence costs

  • All of the above

Explanation

Question 110 of 140

1

Which of the following types of customer is the most expensive in regards to stockout costs?

Select one of the following:

  • Brand-Loyal Customer

  • Switches and comes back

  • Lost Customer

  • New Customer

  • None of the above

Explanation

Question 111 of 140

1

The higher the probability of a delayed sale, the lower the average stockout costs and the lower the inventory that needs to be held by a company.

Select one of the following:

  • True
  • False

Explanation

Question 112 of 140

1

The lower the average cost of a stockout, the better it is for the company to hold some amount of inventory (safety stock) to protect against stockouts.

Select one of the following:

  • True
  • False

Explanation

Question 113 of 140

1

Higher inventory levels (higher carrying costs) result in lower chances of a stockout (lower stockout costs)

Select one of the following:

  • True
  • False

Explanation

Question 114 of 140

1

Which of the following is NOT a quality of Lean Manufacturing?

Select one of the following:

  • Focuses on the elimination of waste and the increase of speed and flow

  • Identifies seven major sources of waste including inventory

  • Just-in-time (JIT) is one of the best known lean inventory practices

  • Make-to-stock is one of the best known lean inventory practices

  • None of the above

Explanation

Question 115 of 140

1

Which of the following describes a "fixed order quantity system?"

Select one of the following:

  • Order a fixed amount of inventory

  • Orders can be placed at fixed time intervals

  • Necessary for efficient fixed order quantity system

  • The time interval is constant, but the order size may fluctuate

  • All of the above

Explanation

Question 116 of 140

1

In a Fixed order quantity system
The time interval may fluctuate while the order size also fluctuates

Select one of the following:

  • True
  • False

Explanation

Question 117 of 140

1

In a Fixed order interval system: There is a higher stockout probability if sales increases quickly

Select one of the following:

  • True
  • False

Explanation

Question 118 of 140

1

Economic order quantity (EOQ): Deals with calculating the proper order size with respect to two costs: Costs of carrying the inventory & Costs of the ordering the inventory

Select one of the following:

  • True
  • False

Explanation

Question 119 of 140

1

The Economic Order Quantity (EOQ) Determines the point at which the sum of carrying costs and ordering costs is maximized, or the point at which carrying costs equal ordering costs

Select one of the following:

  • True
  • False

Explanation

Question 120 of 140

1

In the Economic Order Quantity Equation (EOQ) the variable "B" stands for:

Select one of the following:

  • Annual demand in units

  • Administrative costs per order of placing the order

  • Carrying costs of the inventory

  • Dollar value of the inventory per unit

  • None of the above

Explanation

Question 121 of 140

1

In the Economic Order Quantity Equation (EOQ) the variable "I" stands for:

Select one of the following:

  • Annual demand, in units

  • Administrative costs per order of placing the order

  • Carrying costs of the inventory

  • Dollar value of the inventory, per unit

  • None of the above

Explanation

Question 122 of 140

1

Safety stock can prevent against two problem areas
Increased rate of demand
Longer-than-normal replenishment

Select one of the following:

  • True
  • False

Explanation

Question 123 of 140

1

When fixed order quantity system like EOQ is used, time between orders stays constant

Select one of the following:

  • True
  • False

Explanation

Question 124 of 140

1

ABC Analysis of Inventory
recognizes that inventories are not of equal value to a firm
as such all inventory should not be managed in the same way

Select one of the following:

  • True
  • False

Explanation

Question 125 of 140

1

Dead inventory is a fourth category, D, to ABC analysis where D stands for “dogs”

Select one of the following:

  • True
  • False

Explanation

Question 126 of 140

1

Complementary Products are products that can be used to fill the same need or wants as another product

Select one of the following:

  • True
  • False

Explanation

Question 127 of 140

1

Which of the following is true of Vendor-Managed Inventory (VMI)?

Select one of the following:

  • Size and timing of replenishment orders are the responsibility of the manufacturer

  • Benefits for Distributors/Retailers: reduced inventories, fewer stockout, improved fill rate

  • Benefits for Manufacturers: improved forecasts (due to POS info), reduced ordering errors

  • Major barriers: inadequate data sharing, and slow user adoption to the new process

  • All of the above

Explanation

Question 128 of 140

1

Lean Manufacturing has an Emphasis on low or no SS

Select one of the following:

  • True
  • False

Explanation

Question 129 of 140

1

Service Parts Logistics is simple to forecast

Select one of the following:

  • True
  • False

Explanation

Question 130 of 140

1

Which of the following is NOT a logistical consideration in achieving desired levels of supply chain performance?

Select one of the following:

  • Damaged goods resulting from shoddy materials handling practices possibly resulting in poor service

  • Poor inventory turnover, an indicator of unproductive asset utilization

  • High transportation costs

  • Lack of visibility into cross organizational silos

  • All of the above are logistics considerations

Explanation

Question 131 of 140

1

Which of the following is a way to address inventory turnover?

Select one of the following:

  • Consolidating stocking points and eliminating slow-moving items

  • Call for an examination of modal or carrier selection policies

  • Examine transportation routing decisions.

  • Increase inventory levels

Explanation

Question 132 of 140

1

Which of the following is NOT a logistics related problem pertaining to supply chain performance?

Select one of the following:

  • Low inventory turnover

  • High transportation costs

  • Damaged goods

  • Poor machine utilization

  • All of the above are logistics related problems

Explanation

Question 133 of 140

1

Supply Chain Management is a new concept

Select one of the following:

  • True
  • False

Explanation

Question 134 of 140

1

Consumers are merely recipients of supply chain activities

Select one of the following:

  • True
  • False

Explanation

Question 135 of 140

1

Supply chain management does not need to be specifically managed by the organizations operating within the supply chain.

Select one of the following:

  • True
  • False

Explanation

Question 136 of 140

1

The SCOR model involves all business functions.

Select one of the following:

  • True
  • False

Explanation

Question 137 of 140

1

THE GSCF model involves all business functions.

Select one of the following:

  • True
  • False

Explanation

Question 138 of 140

1

How many processes comprise the GSCF model?

Select one of the following:

  • 5

  • 6

  • 7

  • 8

  • 9

Explanation

Question 139 of 140

1

What is also called logistics outsourcing or contract logistics?

Select one of the following:

  • Third-Party Logistics

  • Fourth-Party Logistics

  • Supply Chain Partnership

  • Transactional relationships

Explanation

Question 140 of 140

1

A Supply Chain Partnership is an example of what type of "Relationship Type?"

Select one of the following:

  • Transactional

  • Tactical information sharing

  • Strategic

  • Point of Sale

Explanation

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