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SCMT 364 > SCMT Exam 2 - FLASHCARDS - Chapter 15 > Flashcards

SCMT Exam 2 - FLASHCARDS - Chapter 15

1
Q

Which one of the following companies does not specialize in logistics?

United Parcel Service

FedEx

DHL

Ford Motors

A

Ford

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2
Q

The problem of deciding how best to transport goods from plants to customers involves major trade-offs. Which of the following are some of those major trade-offs?

complexity of the information system

flexibility to react to changes

cost of transporting the product

speed of delivery

inventory levels

A

flexibility to react to changes

cost of transporting the product

speed of delivery

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3
Q

The ______ offers great flexibility for moving goods to virtually any location not separated by water?

A

Highway

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4
Q

In hub-and-spoke systems, the warehouse is referred to as a

A

Hub

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5
Q

Today, a manufacturing company most often will contract with a _____ _____ logistics company to handle many of its logistics functions.

A

Third party

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6
Q

The problem of deciding how best to transport goods from plants to customers is a _____ one that affects the _____ of a product.

A

difficult; cost

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7
Q

A technique often used by communications companies to locate their transmission towers.

A

Centroid method

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8
Q

Which of the following is the terms used for systems that combine the idea of consolidation and that of cross-docking?

A

Hub-and-spoke system

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9
Q

These provide a mechanism to combine diverse factors in an easy-to-understand format.

A

factor-rating systems

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10
Q

All functions concerned with the movement of materials and finished goods on a global scale, is termed?

A

international logistics

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11
Q

A special linear programming method that is useful for solving problems involving moving products from several sources to several destinations is known as _____

A

Transportation method

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12
Q

Production plant constraints are entered into Solver using what type of constraint?

A

≤

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13
Q

For what percentage of GDP does logistics account?

A

8–9 percent

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14
Q

Which of the following is a plant location technique that uses a coordinate grid system?

Transportation method

Factor rating

Location method

Centroid method

A

Centroid method

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15
Q

This can include the presence of similar-sized businesses, the presence of companies in the same industry and, in the case of international locations, the presence of other foreign companies.

A

Business climate

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16
Q

Services typically have _____ sites to maintain close contact with customers?

A

Multiple

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17
Q

The two common objectives of the transportation method are what?

A

Maximize the profit of shipping n units to m destinations
Minimize the cost of shipping n units to m destinations

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18
Q

All functions concerned with the movement of materials and finished goods on a global scale, is termed?

A

international logistics

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19
Q

For a service, the location decision is closely tied to what?

A

the market selection decision

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20
Q

What is The art and science of obtaining, producing, and distributing material and product in the proper place and in the proper quantities?

A

Logistics

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21
Q

What does logistics include?

A
  • Includes forward and reverse flows
  • Includes flow of materials and information
  • Load, offload, move, sort and select material
  • International Logistics: functions on a global scal
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22
Q

What are major logistics activities faced by a firm?

A

– Order‐taking and order processing
– Warehousing
– Transportation
– Returns
– After‐sales service
– Managing reliable supply of raw materials & components

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23
Q

What are inbound flows?

A

Work with suppliers and procurement managers, includes
accounting and finance areas

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24
Q

What are outbound flows?

A

– Work with marketing, sales, and customers
– Ensure customer requirements are satisfied

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25
Q

What does logistics seek to minimize?

A

Seeks to minimize the total landed costs, not just one cost element

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26
Q

What percent of sales revenue does logistics include?

A

As much as 25‐30% of each dollar of sales revenue

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27
Q

What is the sum of all product and logistics related costs?

A

Total landed costs

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28
Q

What types of costs are raw materials, storage, labor?

A

Costs within country of manufacture

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29
Q

What is the most visible part of logistics?

A

Transportation

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30
Q

What is the government’s role in logistics?

A

Economic and safety regulation

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31
Q

What is safety regulation?

A

(increasing): safe for carriers and public, including increased emphasis on security from terrorist activity and transparency on travel locations

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32
Q

What is the fact that cost per unit of weight decreases as shipment size increases?

A

Economies of scale

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33
Q

What is the fact that cost per unit traveled decreases as distance moved increases?

A

Economies of distance

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34
Q

What is combining many smaller shipments into one large shipment?

A

Consolidation?

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35
Q

What is a pooled delivery?

A

Combine small shipments from one area going to the same (destination) area

36
Q

What is a scheduled delivery?

A

Delivery at specific times

37
Q

What mode of transportation is : • Major transportation mode in U.S.
• Can offer door‐to‐door service anywhere
• Low fixed costs, high variable costs

A

Truck

38
Q

What is the oldest mode of transportation?

A

Water

39
Q

What mode of transportation never stops and is not affected by the weather?

A

Pipeline

40
Q

Which mode of transportation is the newest and the least utilized mode?

A

Air

41
Q

Which mode of transportation has low dependability and high variability?

A

Air

42
Q

Which mode of transportation has high variable costs and low fixed costs?

A

Air

43
Q

What is value density?

A

ratio of value to weight, often determines the mode of transportation and type of carrier used

44
Q

What mode of transportation is fast but expensive?

A

Air

45
Q

What mode of transportation has great flexibility?

A

Truck

46
Q

What mode of transportation has high capacity and low cost, but is slow?

A

Ship

47
Q

What mode of transportation is low cost but slow and variable?

A

Train

48
Q

What mode of transportation is highly specialized and limited to
liquids, gases, and solids in slurry form?

A

Pipeline

49
Q

What mode of transportation is the last step in many consumer
supply chain?

A

Hand delivery

50
Q

What is a warehouse?

A

Historically a place to store inventory

51
Q

What is a distribution center?

A

Strategically store inventory, package final product configurations and assortments

52
Q

What is handling and locating material increases costs and the risk of damage?

A

Material handling

53
Q

What are robots that retrieve, move, and put‐away material?

A

Automated Storage and Retrieval Systems

54
Q

What is an RFID?

A

Electronic tracking of material

55
Q

What are operations warehouses must perform on a daily basis?

A
  • Receiving and unloading
  • In‐storage handling
  • Storage
  • Order picking
  • Staging
  • Shipping
56
Q

What is the ratio of value to weight, often
determines the mode of transportation and type of
carrier used?

A

Value density

57
Q

How many transportation modes will most items need to reach their final destination?

A

Two

58
Q

What type of packaging can decrease handling costs and risk of damage?

A

Proper packaging

59
Q

What cost industry is packaging?

A

975 billion

60
Q

What are the benefits of cross-docking?

A

Reduces:
• Inventory carrying costs by avoiding storage
• Costs of order fulfillment and material handling
• Number of trucks sent to customers by providing
one shipment with a mix of different products

61
Q

What are requirements of cross-docking?

A

• Automated material handling
• Warehouse Management Systems
• Order processing systems
• Quality control systems
• Strong relationships among supply chain partners

62
Q

What is reverse logistics especially important in?

A

Especially important in online retail

63
Q

What is value added services?

A

Providing additional value to the customer, such as postponement in packaging, labeling, or even small final assembly

64
Q

What manages all or part of another firm’s logistics, transportation, and/or warehousing?

A

Third party logistics companies (3PL’s)

65
Q

What are also called Integrated Service Providers (ISPs)?

A

Third party logistics companies (3PL’s)

66
Q

What are examples of major third party logistics companies?

A

UPS, FedEx, Ryder, Ceva Logistics

67
Q

What are benefits of new service facilities?

A

• New service facilities far more common than
new factories and warehouses
– Much less expensive
• Multiple sites close to customers
• Location decision closely tied to the market
selection decision

68
Q

What logistics services do 3PL’s provide?

A

– Intermodal transportation
– Order processing, tracking and fulfillment and returns
– Inventory and warehouse management
– JIT delivery to assembly line
– Sales support

69
Q

True or false: A favorable business climate in facility location decision making might include government legislation of tax abatements?

A

FALSE

70
Q

What does proximity to customers help with in regards to facility location?

A

Makes rapid delivery easier

71
Q

What is business climate in regards to facility location?

A

Can include presence of similar‐sized
businesses, businesses in the same industry, and other foreign
companies

72
Q

What is the goal of total costs in regards to facility location?

A

Object is to minimize overall cost

73
Q

What is infrastructure in regards to facility location?

A

Adequate road, rail, air, and sea transportation along with energy and telecommunications

74
Q

What is quality of labor in regards to facility location?

A

Educational and skill levels must match needs

75
Q

What do suppliers support in regards to facility location?

A

Proximity of important suppliers supports lean production

76
Q

What are free trade zones in regards to facility location?

A

A closed facility into which foreign goods can be brought without being subject to the normal customers requirements

77
Q

What method is widely used, because it allows for diverse factors?

A

Factor rating system

78
Q

What method is used for locating single facilities that considers existing facilities, the distances between them, and the volumes of goods to be shipped between them?

A

Centroid method

79
Q

What method does not include special shipping costs for less than a full load?

A

Centroid method

80
Q

What method assumes inbound and outbound transportation costs are equal?

A

Centroid method

81
Q

True or false: Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills?

A

TRUE. The educational and skill levels of the labor pool must match the company’s needs

82
Q

True or false: Because the world is becoming more highly interconnected, the proximity of an important supplier’s plants is not crucial in supporting lean production methods?

A

FALSE. A high-quality and competitive supplier base makes a given location suitable. The proximity of important suppliers’ plants also supports lean production methods

83
Q

True or false: Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally?

A

FALSE. Analytical techniques assist the decisions but seldom weigh different variables equally

84
Q

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A. Proximity to customers
B. Historical cost
C. Infrastructure of a country
D. Quality of labor
E. Business climate

A

Historical cost

85
Q

Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?
A. Factor-rating systems
B. Centroid method
C. Decision trees
D. Linear programming
E. Regression analysis

A

Centroid method. The centroid method is a technique for locating single facilities that considers the existing facilities, the distances between them, and the volumes of goods to be shipped

SCMT 364 (8 decks)

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