BSCM - 8 - Purchasing and Physical Distribution

Question 1

The charges a carrier levies for each pick-up and the weight picked-up.

Answer 1

PICK UP AND DELIVERY COSTS

Question 2

Either a small shipment that does not fill the truck or a shipment of too little weight to qualify for a truckload quantity rate discount

Answer 2

LESS THAN TRUCKLOAD (LTL)

Question 3

Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided.

Answer 3

COMMON CARRIER

Question 4

Transportation cost comprised of elements, such as fuel, driver’s wages, and wear and tear on the vehicle, that vary by distance traveled and not on weight carried.

Answer 4

LINE HAUL COSTS

Question 5

A warehouse used for storing goods for long periods and where the prime purpose is to protect goods until they are needed.

Answer 5

GENERAL WAREHOUSE

Question 6

A truck shipment that qualifies for a lower freight rate because it meets a minimum weight and/or volume.

Answer 6

TRUCK LOAD

Question 7

Transportation costs associated with the paperwork and invoicing required for each shipment.

Answer 7

BILLING AND COLLECTING COSTS

Question 8

The consolidation of fewer units into larger units for fewer handlings.

Answer 8

UNITIZATION

Question 9

Classification of a group of items in decreasing order of annual dollar volume or other criteria.

Answer 9

ABC ANALYSIS

Question 10

A warehouse with finished goods and/or service items.

Answer 10

DISTRIBUTION CENTER

Question 11

A warehouse with the primary purpose of moving and handling inventory rather than storage.

Answer 11

DISTRIBUTION WAREHOUSE

Question 12

The paths over which carriers operate.

Answer 12

WAYS

Question 13

Transportation costs generally associated with the loading, handling, sorting, and unloading required each time a part load shipment is processed through a terminal.

Answer 13

TERMINAL HANDLING COSTS

Question 14

Inventory located in warehouses and in transit between warehouses and the customer.

Answer 14

DISTRIBUTION INVENTORY

Question 15

Places where carriers load and unload goods to and from vehicles and make connections between local pick-up and delivery service and line-haul service.

Answer 15

TERMINALS

Question 16

The distribution route, from raw materials through consumption, along which products travel.

Answer 16

DISTRIBUTION CHANNEL

Question 17

A carrier that does not serve the general public, but provides transportation for one or a limited number of shippers under a specific contract.

Answer 17

CONTRACT CARRIER

Question 18

The function and the responsibility for procuring materials, supplies, and services.

Answer 18

PURCHASING

Question 19

What are the seven steps of procurement in the PURCHASING CYCLE?

Answer 19

1. Receiving and analyzing purchase requisitions.
2. Selecting suppliers.
3. Determining the right price.
4. Issuing purchase orders.
5. Following Up.
6. Receiving and accepting the goods.
7. Authorizing payment.

Question 20

The purchaser’s authorization to formalize a purchase transaction with a supplier.

Answer 20

PURCHASE ORDER

Question 21

An authorization to the purchasing department to purchase specified materials in specified quantities, within a specified time.

Answer 21

PURCHASE REQUISITION

Question 22

A list of goods shipped by the supplier to the buyer stating prices, quantities, and other costs.

Answer 22

INVOICE

Question 23

A document used by the receiving function of a company to inform others of the receipt of goods purchased.

Answer 23

RECEIVING REPORT