True/False
Indicate whether the
statement is true or false.
|
|
|
1.
|
It is just as important to work
out how to physically distribute products as it is to select the right channel of
distribution.
|
|
|
2.
|
The seven key elements involved
in a supply chain are: supply, production, inventory, location, transportation, information, and
customer needs.
|
|
|
3.
|
Since the goal of supply chain
management is to build flexible and efficient supply chains, manufacturers need to forge loose,
short-term ties with their suppliers.
|
|
|
4.
|
The study of logistics is an
example of the systems approach to business problems.
|
|
|
5.
|
The elements in a logistics
system are the same as the elements in a supply chain.
|
|
|
6.
|
Protective packaging and
materials handling are elements in a logistics system.
|
|
|
7.
|
The first question in logistics
management is what level of service is needed to get and keep a customer’s
business.
|
|
|
8.
|
The ideal state of a logistics
system is to be totally suboptimized.
|
|
|
9.
|
The logistics concept involves
the integration of three basic concepts — the total-cost approach, the avoidance of
suboptimization, and the application of cost-plus pricing to charges for individual components of the
supply chain.
|
|
|
10.
|
The federal government and the
provincial governments both regulate the transportation system in Canada.
|
|
|
11.
|
Common carriers most frequently
operate between manufacturers, wholesalers, and retailers, moving goods of high
value.
|
|
|
12.
|
Contract carriers enter into
contractual arrangements with select customers rather than offering their services to the public at
large.
|
|
|
13.
|
Private carrier rates are
regulated in accordance with ICC guidelines established for common and contract
carriers.
|
|
|
14.
|
Because of increased fuel costs
and motor tax rates, motor carriers receive less revenue per ton shipped than other types of carriers
do.
|
|
|
15.
|
Water carriers move freight of
all kinds internationally better than any other mode of transportation, given today’s
technologies.
|
|
|
16.
|
If a company needs to get a
shipment somewhere really quickly, it will probably select air freight over other modes of
transportation.
|
|
|
17.
|
The economic order quantity
(EOQ) model for controlling inventory costs emphasizes a cost trade-off between two fundamental costs
involved with inventory: inventory holding costs and order costs.
|
|
|
18.
|
The basic idea behind
just-in-time (JIT) inventory systems is to identify minimum efficient stock levels and to trade off
high transportation costs for reduced inventory costs.
|
|
|
19.
|
Storage warehouses assemble and
redistribute goods, keeping them moving as much as possible.
|
|
|
20.
|
A break-bulk centre and a
storage warehouse are basically the same.
|
Multiple Choice
Identify the
choice that best completes the statement or answers the question.
|
|
|
21.
|
A supply chain is a network of
facilities and distribution options that includes performing which one of the following
functions?
a. | transforming materials into
intermediate and finished products | b. | marketing finished products to business customers | c. | providing credit financing for new
businesses | d. | hiring marketing personnel |
|
|
|
22.
|
In a supply chain, materials
that flow from raw material sources to retailers/customers flow _____________, while information,
market intelligence, and cash flow ______________.
a. | downstream;
upstream | b. | downstream; downstream and upstream | c. | downstream and upstream;
upstream | d. | upstream; downstream and upstream |
|
|
|
23.
|
An efficient supply chain
creates which one of the following benefits?
a. | It improves the availability of
products. | b. | It reduces the costs of products. | c. | It is a competitive
advantage. | d. | all of the above. |
|
|
|
24.
|
In supply chain management, the
first step is
a. | the distribution of products and
supplies to customers. | b. | the procurement of raw materials. | c. | either the decision to produce a line of products or the
obtaining of a customer order. | d. | scheduling production. |
|
|
|
25.
|
Collectively, the activities
aimed at the efficient movement and storage of finished goods from the end of the production line to
the consumer are called
a. | transportation. | b. | physical supply. | c. | freight management. | d. | logistics. |
|
|
|
26.
|
A key fact to remember about the
elements of the logistics system is that
a. | federal transport regulation has made
it more costly to distribute goods in recent years. | b. | it is usually more efficient to ship goods by slower modes
of transportation (e.g., water or rail). | c. | all the components are interrelated. | d. | warehousing is the largest expense item in the physical
distribution budget. |
|
|
|
27.
|
Which statement is not true
about the total-cost concept?
a. | The total-cost concept is the most
vital element in effective logistics management. | b. | The total-cost approach holds that all relevant factors in
physically moving and storing products should be considered as a whole and not
individually. | c. | According to the total-cost concept, every element of the logistics system must be
included in the cost of physically moving and storing products. | d. | As a result of the total-cost concept, management might
choose a faster, more expensive mode of transportation if its increased cost can be offset by
reductions in the cost of warehousing and handling
materials. |
|
|
|
28.
|
A condition in which the manager
of each physical distribution function attempts to minimize costs but, due to the impact of one
physical task on the others, obtains less than optimal results is called
a. | distribution
myopia. | b. | suboptimization. | c. | false economy. | d. | dis-distribution. |
|
|
|
29.
|
The objective of the cost
trade-offs approach is to
a. | minimize total logistics
costs. | b. | minimize total logistics costs while maximizing customer
service. | c. | minimize total logistics costs without sacrificing the established level of customer
service. | d. | maximize customer service. |
|
|
|
30.
|
In order to achieve the quality
of customer service that they want to deliver, some companies have
a. | hired third-party logistics
providers. | b. | replaced their customer service representatives with university
graduates. | c. | provided bonuses to employees who can find the fastest means to get the company’s
products to its customers. | d. | none of the above. |
|
|
|
31.
|
The three legal forms of
transportation carriers in Canada are
a. | public, private, and
nonprofit. | b. | full, limited, and specialized. | c. | common, contract, and
private. | d. | water, ground, and underground. |
|
|
|
32.
|
The most efficient mode for
shipping thousands of tonnes of grain (low unit value and bulky commodity) from Calgary to Winnipeg
would most likely be
a. | rail. | b. | truck. | c. | air freight. | d. | water carrier. |
|
|
|
33.
|
Which of the following is not
true regarding Canadian railroads?
a. | Railroads represent the most
efficient mode of transportation for the movement of bulky commodities over long
distances. | b. | Railroads are readily available in most locations in North
America. | c. | Railroads have lost business because of their failure to improve service through
innovation. | d. | Railroads are the largest transporters as measured by tonne-kilometre of
freight. |
|
|
|
34.
|
The use of which one of the
following modes of transportation is restricted to a small number of products?
a. | motor
carriers | b. | air freight | c. | pipeline | d. | water carriers |
|
|
|
35.
|
Multimodal transportation
companies provide service
a. | between major airports such as
Montreal, Toronto, Winnipeg, and Vancouver. | b. | in which all of the transportation modes are owned and
operated by one company. | c. | to very large customers such as the Canadian government, General Motors, and
Ford. | d. | involving various modes of
transportation. |
|
|
|
36.
|
Which one of the following
techniques was not designed to control inventory costs?
a. | the just-in-time (JIT)
system | b. | the economic order quantity (EOQ) model | c. | the total quality management (TQM)
philosophy | d. | The primary purpose of all of the above is to control inventory
costs. |
|
|
|
37.
|
Materials handling is made more
efficient through the process of
a. | duplication (shipping two matching
loads to a customer to ensure that one arrives intact). | b. | customization (ensuring that every customer is shipped a
totally unique set of products). | c. | unitization (combining as many packages as possible into one
load). | d. | non-unionization (using only non-unionized workers to handle
materials). |
|
|
|
38.
|
Order processing has been
increased in terms of speed and efficiency as a result of
a. | hiring specialized logistics
managers. | b. | the use of online ordering and computer tracking. | c. | increasing the size of
warehouses | d. | the use of protective packaging. |
|
|
|
39.
|
Automated warehouse techniques
using bar codes and computerized equipment is especially important for
a. | products that have high initial
demand and short life cycles, such as computer games. | b. | expensive durable products that will last a long time, such
as appliances and furniture. | c. | low-cost products that are purchased frequently, such as soaps, detergents, and
cosmetics. | d. | any type of good or service. |
|
|
|
40.
|
Which of the following is true
with regard to freight forwarders?
a. | Freight forwarders specialize in
international logistics. | b. | Freight forwarders can get faster delivery service for their
customers. | c. | Freight forwarders know how to deal with specialized trade
documents. | d. | All of the above are true. |
|