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Transporting and Warehousing > Transportation quiz 6 to 8 > Flashcards

Transportation quiz 6 to 8 Flashcards

1
Q

The classic objective of a network design model has been
options:
A. to establish the number, location, and size of finished goods distribution centers and associated product flows.
B. to find the best location for a forward facing warehouse.
C. to examine the finished goods flow from the warehouse to the customer.
D. to measure and control site locations.

A

A. to establish the number, location, and size of finished goods distribution centers and associated product flows.

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2
Q

What type of change may suggest a need to re-evaluate and/or redesign a firm’s logistics network?

A.	shifting locations of customer and/or supply markets
B.	change in customer service requirements
C.	change in corporate ownership
D.	all of these
A

D. all of these

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3
Q

In the short run, the firm’s network is _________ while in the long run it is ________.

A.	fixed, variable
B.	adoptable, reversible
C.	variable, reversible
D.	reversible, fixed
A

A. fixed, variable

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4
Q

Which of these is NOT a trend in today’s logistics environment that may have significant effects on decisions involving logistics facility location?

A.	strategically located cross-docking facilities
B.	use of third-party logistics services
C.	customer-direct delivery
D.	addition of many wholesaler/distributor operations
A

D. addition of many wholesaler/distributor operations

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5
Q

An advantage to dedicated fulfillment is:

A.	No disruption to store operations
B.	Separate facilities might be needed
C.	duplicate inventories
D.	high start-up costs
A

A. No disruption to store operations

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6
Q

Which major locational determinant considers locating near the competition?

A.	labour climate
B.	supplier networks
C.	company preference
D.	quality of life
A

C. company preference

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7
Q

The grid technique

A.	assumes that the raw materials sources and finished goods markets are variable
B.	assumes that the raw materials sources and finished goods markets are fixed.
C.	is a variation of SAILS
D.	assumes non-linear transportation rates.
A

B. assumes that the raw materials sources and finished goods markets are fixed.

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8
Q

As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will ____ and variable costs will ___.

A.	decrease, decrease
B.	decrease, increase
C.	increase, increase
D.	increase, decrease
A

A. decrease, decrease

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9
Q

Which is correct regarding tapering rates?

A.	the principle is based on the carrier’s ability to spread certain fixed shipment costs over a greater number of miles
B.	transportation rates increase with distance directly in proportion to the distance
C.	in a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market
D.	uses transportation simplifications to recommend facility locations
A

A. the principle is based on the carrier’s ability to spread certain fixed shipment costs over a greater number of miles

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10
Q

The grid technique is used to determine a fixed facility location that represents the least-cost center for moving incoming materials and outbound product within a geographic grid. This least cost center is also referred to as
Question 10 options:
A. zero point
B. centre of gravity
C. source point
D. break even point

A

B. centre of gravity

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11
Q

Demand for transportation at the microeconomic level is ___ while the demand for transportation at the macroeconomic level is ___?

A.	inelastic, inelastic
B.	elastic, elastic
C.	inelastic, elastic
D.	elastic, inelastic
A

D. elastic, inelastic

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12
Q

Which is an advantage of the grid technique for facility location?

A.	it considers topographic conditions in choosing the optimum location
B.	computationally, it is relatively easy to use
C.	it is a dynamic approach with solutions remaining optimum over many time periods
D.	it establishes the final determination of the best site
A

B. computationally, it is relatively easy to use

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13
Q

This type of fulfillment model has the manufacturer delivering its products directly to the retailers’ stores.

A. integrated
B. store fulfilment
C. outsourced
D. flow-through
E. none of these

A

E. none of these

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14
Q

When a blanket rate structure is used, which factor is eliminated as a locational determinant?

A. market sources
B. transportation rate
C. raw material sources
D. labour rate

A

B. transportation rate

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15
Q

As the length and complexity of a supply chain increases, a firm’s inventory levels will:

A.	decrease
B.	stay the same
C.	increase
D.	cannot be determined
A

C. increase

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16
Q

The key financial consideration in choosing between private and 3PL distribution options is

A. warehouse location(s).
B. competency of in-house staff.
C. volume of product being moved.
D. type of product being handled.

A

C. volume of product being moved

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17
Q

The first facility consideration is to determine

A. how close to source it should be.
B. how close to the customer it should be.
C. the size of each operation within the network.
D. where competitors are located.

A

C. the size of each operation within the network.

18
Q

The primary facility operations focus is

A.	the WMS system.
B.	inventory control and personnel issues.
C.	making sure KPIs are fulfilled.
D.	on the movement and storage of product.
A

D. on the movement and storage of product.

19
Q

Which of these is not a support function?

A. safety, maintenance, and sanitation
B. movement and storage
C. information technology
D. inventory control

A

B. movement and storage

20
Q

The two largest cost centers in a DC are:

A.	equipment, space
B.	equipment, pallets
C.	pallets, labour
D.	labour, space
A

D. labour, space

21
Q

The primary tradeoffs and relationships between resources include the following

A.	space vs. equipment
B.	people vs. space
C.	all of the others
D.	equipment vs. people
A

C. all of the others

22
Q

The drawback of centralized inventory is:

A.	that it extends lead times and results in higher transportation costs.
B.	that it undercuts the dispersed distribution concept.
C.	strains the ability of the carrier network.
D.	that it increases the amount of inventory required.
A

A. that it extends lead times and results in higher transportation costs.

23
Q

One important interaction that must be considered is the trade-off between distribution and ________

A.	marketing
B.	services
C.	transportation
D.	finance
A

C. transportation

24
Q

As the number of picks per order picker decreases on a given tour, his/her total time out ___ and the time per pick ___.
Question 9 options:
A. decreases, decreases
B. increases, increases
C. decreases, increases
D. increases, decreases

A

C. decreases, increases

25
Q

If a DC that picks primarily cases switches to mostly pallets (with the same items), which of the following would occur in the DC?

A.	Labor costs would decrease
B.	Total transportation costs would increase
C.	Total inventory holding costs would increase
D.	Total packaging costs would increase
E.	none of the others
A

A. Labor costs would decrease

26
Q

The roles of the distribution center include __________

A.	promoting transportation economies.
B.	balancing supply and demand, protecting against uncertainty, and promoting transportation economies.
C.	protecting against uncertainty and promoting transportation economies.
D.	balancing supply and demand
A

B. balancing supply and demand, protecting against uncertainty, and promoting transportation economies.

27
Q

Customer service can be defined as

A.	the SCOR model
B.	A philosophy
C.	order fulfilment
D.	anything that touches the customer
A

D. anything that touches the customer

28
Q

There are two parts to the order management process. The first is _______________ and the second is _________________________.

A.	shipping the order, taking the order
B.	the Internet model, the traditional model
C.	managing the order after it is received, influencing how the customer orders
D.	influencing how the customer orders, managing the order after it is received
A

D. influencing how the customer orders, managing the order after it is received

29
Q

Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.

A.	backorders
B.	the forecast
C.	gross margin
D.	gross sales
A

D. gross sales

30
Q

Those customers who are in the “Danger Zone” segment are
Question 4 options:
A. the least profitable
B. have been a customer for less than a year.
C. are using ABC to drive down the price.
D. likely to switch to a competitor.

A

A. the least profitable

31
Q

As the level of substitutability for a product increases, its stock out costs to the manufacturer:

A.	increase
B.	decrease
C.	stay the same
D.	cannot be determined
A

A. increase

32
Q

What are the steps in the CRM process?

A.	Segment customer base, then measure service and improve
B.	Measure service, then improve
C.	Segment customer base, identify service/package, then measure service and improve
D.	Segment customer base, then identify service/package
A

C. Segment customer base, identify service/package, then measure service and improve

33
Q

The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix

A.	price
B.	promotion
C.	product
D.	place
A

D. place

34
Q

ABC analysis uses a single criterion to classify SKUs from most important to least important.

A.	cannot be determined
B.	false
C.	true
D.	I do not know
A

C. true

35
Q

Which is NOT part of dependability?

A.	correct orders
B.	safe delivery
C.	cycle time
D.	consistent procing
A

D. consistent procing

36
Q

The term replenishment cycle refers to

A.	material management
B.	orders for raw material.
C.	the acquisition of additional inventory.
D.	inventory and material management
A

C. the acquisition of additional inventory.

37
Q

Which of the following order cycle lengths would require the buyer to hold the most total inventory during lead time?

A.	10 days, +/- 4 days
B.	10 days, +/- 2 days
C.	9 days, +/- 3 days
D.	8 days, +/- 5 days
A

A. 10 days, +/- 4 days

38
Q

The time that elapses from when a company receives an order until it gets paid for delivering the order is called the:

A.	product life cycle
B.	order to cash cycle
C.	order management process
D.	replenishment process
A

B. order to cash cycle

39
Q

Order management system represents the principal means by which

A.	customers are segmented by profitability.
B.	price and lead time add value.
C.	orders are handled inside the company.
D.	buyers and sellers communicate information relating to individual orders of product.
A

D. buyers and sellers communicate information relating to individual orders of product.

40
Q

Activity Based Costing
Question 8 options:
A. is too sophisticated for many applications.
B. can be combined with customer segmentation.
C. is a very new management science.
D. is useful for distributions centers but not customers.

A

B. can be combined with customer segmentation.

41
Q

ABC analysis uses a single criterion to classify SKUs from most important to least important.
Question 10 options:
A. true
B. cannot be determined
C. I do not know
D. false

A

A. true

Transporting and Warehousing (3 decks)

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