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chapter 8, 9, 10,14

Terms in this set (139)

____ refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy normal demand patterns
inventory
Holding high levels of inventory result in ____ inventory carrying costs and ____ stockout costs.
high; low
____ stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle.
base
. ____ stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time.
buffer
. ____ stock refers to inventory that is en route between various nodes in a logistics system.
none of the above
. ____ stock refers to inventory that is held for several reasons, to include seasonal demand, projected price increases, and potential shortages of product.
speculative
____ stock is carried to stimulate demand.
psychic
. Inventory costs in the United States in the twenty-first century represent approximately ____ of total logistics costs.
one-third
All of the following statements are true, except:
the importance of individual carrying costs factors (categories) is generally consistent from product to product
. Inventory carrying costs in the United States in the twenty-first century have ranged between ____ and ____ percent.
. 19; 24
Inventory shrinkage ____.
refers to the fact that more items are recorded entering than leaving warehousing facilities
Each of the following is a component of inventory carrying cost except:
accounting cost
In the United States, ____has traditionally provided a convenient starting point when estimating the interest charges associated with maintaining inventory.
the prime rate of interest
Which of the following is not a component of ordering (order) costs?
. all are components of ordering (order) costs
Which of the following situations is likely the most damaging (costly) with respect to a stockout?
. the customer goes to a competitor for a purchase
Which of the following statements is false?
. all of the above are true
Under conditions of certainty, a reorder point is equal to ____.
average daily demand times the length of the replenishment cycle
The economic order quantity (EOQ) deals with calculating the proper order size with respect to ____ costs and ____ costs
carrying; ordering
The economic order quantity (EOQ) determines ____.
the point at which carrying costs equal ordering costs
Which of the following is not an assumption associated with the basic economic order quantity (EOQ) model?
stockouts are permitted
Concerning the EOQ model, if demand or annual usage increases by 10%, then the EOQ will ____.
increase
Concerning the EOQ model, if the ordering costs increase by 10% and the product value increases by 10%, then the EOQ will ____.
stay unchanged
Inventory flow diagrams illustrate that safety stock can prevent two problem areas, ____ and ____.
increased rate of demand; longer-than-normal replenishment
. ____ recognizes that all inventories are not of equal value to a firm and thus all inventories should not be managed in the same way.
ABC analysis of inventory
ABC analysis of inventory ____.
. recognizes that inventories are not of equal value to a firm
Dead inventory (dead stock) refers to a product for which there is no sales during a ____ month period.
twelve
All of the following are suggestions for dealing with dead stock (inventory), except ____.
. all of the above are suggestions
Inventory turnover can be calculated by ____.
dividing the cost of goods sold by average inventory
____ items refer to those that are used or distributed together.
complementary
____ products refer to those that customers view as being able to fill the same need or want as another product
substitute
Which of the following is not an example of a lean inventory approach?
collaborative planning, forecasting, and replenishment
Which of the following statements about the lean approach and JIT is false?
JIT tends to focus on product movement from manufacturer to retailer
Which of the following statements about service parts logistics is false?
the worldwide economic slowdown of 2008 and 2009 caused a decreased emphasis on service parts logistics
Under ____, the size and timing of replenishment orders are the responsibility of the manufacturer.
vendor-managed inventory
Which of the following is not a potential benefit to vendor-managed inventory?
. all are VMI benefits
The initial focus in facility location is on a ____.
. region
Which of the following statements is false?
poorly located facilities do not impact logistical effectiveness
. ____ is the most popular location for near-sourcing among companies that do business in North America
Mexico
In 2010, the three most populous U.S. states were located in the West, Southwest, and ____.
. Northeast
What two countries account for approximately one-third of the world's population?
. China and India
A locavore strategy ____.
refers to purchasing locally grown or produced foods
The general trend in recent years has been for companies to do what with their distribution networks?
reduce the number of facilities
A pure material ____.
is one that loses no weight in manufacturing
The processing point for a pure material ____.
can be anywhere near the source and the market
The processing point for a weight-losing raw material ____.
should be near its source
The processing point for a weight-gaining raw material ____.
should be near the final market
Over the past quarter century, discussion of natural resources and facility location has increasingly factored in ____ considerations.
environmental
Which of the following is false?
all of the above are true
Labor force ____ are a key locational determinant as supply chains become more global in nature.
wage rates
____ plants, which are located just south of the U.S.-Mexican border, provide much needed jobs to Mexican workers and allow for low-cost, duty-free production so long as all goods are exported from Mexico.
maquiladora
Which of the following is not a key shortcoming of the sweatshops associated with the electronics industry?
poor workplace ventilation
Right-to-work laws refer to a situation where ____.
an individual cannot be compelled to join a union as a condition of employment
All of the following are true except ____.
there has been a decrease in maquiladoras in recent years
. An expatriate refers to a person who ____.
is sent to work in other countries for extended periods of time
Turnover rates for expatriate workers current run between ____ percent.
20 and 40
. From a business perspective, ____ taxes are analogous to the personal property taxes paid by individuals.
inventory
A general rule of thumb is that the services received represent only about ____ percent of the taxes paid
50
Which of the following statements is false?
all of the above are true
The existence of transportation competition, whether intermodal or intramodal, tends to ____.
have both cost and service benefits to a user
____ refers to the net advantages that can be gained by a sharing of common locations by various enterprises.
agglomeration
Supplier parks are a concept that developed around ____ and their suppliers in Europe.
automakers
. With respect to commodity flows, logisticians are especially interested in ____ and ____.
how much is being produced; where it is being shipped
. The European Union's expansion into Central and Eastern European countries has resulted in the Czech Republic and ____ becoming favored distribution sites because of their relatively central location.
Poland
Which of following is not a possible quality of life consideration in facility location?
all of the above are quality of life considerations
A brownfield is ____.
a property for which use and redevelopment is complicated by past use
A free trade zone refers to an area ____.
in which products can be stored, exhibited, or processed without being subjected to duties and quotas unless they enter the customs territory of the zone country
. The center-of-gravity approach to location analysis minimizes ____.
distance to existing facilities
How does the weighted center-of-gravity approach to location analysis differ from the center-of-gravity approach to location analysis?
the weighted approach considers shipment volume
The Worker Adjustment and Retraining Notification (WARN) Act mandates that employers give ____ days' notice about plant closings and mass layoffs.
60
Which of the following is not a possible reason for a facility closing?
all of the above are possible reasons
Warehousing and ____ are substitutes for each other.
transportation
. ____ and ____ refer to adjustments associated with the quantity of product.
accumulating; allocating
____ involves bringing together similar stocks from different sources.
accumulating
. ____ refers to separating products into grades and qualities desired by different target markets
sorting out
Warehouses emphasize ____ and their primary purpose is to maximize ____.
product storage; usage of available storage space
Distribution centers emphasize ____ and their primary purpose is to maximize ____.
rapid movement of product; throughput
Throughput refers to ____.
amount of product entering and leaving a facility in a given time period
____ refers to a process where a product is received in a facility, occasionally married with product going to the same destination, and then shipped at the earliest time, without going into longer-term storage.
cross-docking
Warehousing labor safety practices in the United States are monitored by which federal government agency?
none of the above
Which of the following is not a characteristic of public warehousing?
good for companies dealing with large volumes of inventory
What is considered to be the biggest drawback to public warehousing?
lack of control by the user
____ warehousing is owned or occupied on a long-term lease by the firm using them.
private
All are characteristics of private warehousing, except ____.
feasible when demand patterns are irregular
With respect to contract warehousing, ____ to ____ year contracts appear to allow sufficient time for the warehousing provider to learn the client's business while allowing the client some flexibility in case the agreement fails to produce acceptable results.
3; 5
Multiclient warehousing mixes attributes of ____ and ____ warehousing.
public; contract
One of the best pieces of advice with respect to the design of warehousing facilities is to ____.
use common sense
Trade-offs must be made among space, labor, and ____ with respect to warehousing design.
mechanization
. A key advantage of fixed slot locations in a warehouse is ____.
knowledge of where specific products are located
A key advantage of variable slot locations in a warehouse is ____.
increased space utilization
As one builds higher, building costs ____, while warehousing equipment costs tend to ____.
decrease; increase
Which of the following statements about a one-dock layout is false?
goods move in a straight configuration
Narrow aisles can store ____ to ____ percent more product than conventional width aisles.
20; 25
Which of the following is not an example of warehouse automation?
all of the above are examples of warehouse automation
Which of the following is not a trade-off in warehousing design?
order picking versus order taking functions
One estimate suggests that only approximately ____ percent of a facility's cubic capacity is actually occupied by product
10
. Which of the following is not a potential measure of warehousing productivity?
order fill rate
What is the most frequent source of injuries among warehousing personnel?
back and shoulder injuries
What is dunnage?
. material that is used to block and brace products inside carrier equipment
Which of the following is not one of the common causes of warehousing fires
lightning strikes
According to the Occupational Safety and Health Administration, approximately ____ employees are killed each year while operating forklifts in warehousing facilities.
100
A safety data sheet (SDS) is required for ____.
each hazardous product to be stored in a facility
Which of the following is not one of the four questions associated with effective management of hazardous materials storage?
what is the material's source
In general, warehousing security can be enhanced by focusing on people, ____, and ____.
facilities; processes
Which of the following statements is false?
all of the above are true
____ refers to the sum of the gross domestic product of all countries.
gross world product
____ are taxes that governments place on the importation of certain items.
tariffs
Which of the following is not a political restriction on international trade?
all of the above are political restrictions
What do we call a system of accounts that records a country's international financial transactions?
balance of payments
Cargo preference rules ____.
require a certain percentage of traffic to move on a nation's flag vessels
When one country's currency is weak relative to other currencies, ____.
it becomes more costly to import products to the country, but its exports surge
Which of the following is not true of sachets?
. they tend to be sold in higher-income countries
A ____ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.
shipper's mark
Which of the following is not a cultural factor that can influence international logistics?
population
A ____ specifies the country (ies) in which a product is manufactured and can be required by governments for control purposes or by an exporter to verify the location of manufacture
certificate of origin
A ____ is similar in nature to a domestic bill of lading and summarizes the entire transaction
. commercial invoice
A ____ often serves as the basis for a country's official export statistics.
shipper's export declaration
Incoterms refer to ____.
terms of sale for international shipments
Incoterms are generally revised approximately every ____ years.
10
____ distinct international methods of payment exist.
4
. What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with applicable terms and conditions of the particular transaction?
letter of credit
International freight forwarders can provide a number of functions. Which of the following is not one of them?
all of the above are possible functions
. Consular documents ____.
involve obtaining permission from the importing country for the goods to enter
Which of the following is not a source of income for international freight forwarders?
payment for freight pick up and delivery
Which international logistics service provider is often confused with the international freight forwarder?
non-vessel operating common carrier
____ act the export sales department for a manufacturer.
export management companies
An ____ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself
export packer
The cost of sending a shipment by air transportation from China to the United States can be ____ times more expensive than sending a shipment by water transportation between the two countries.
8-10
Approximately ____ of cross-border shipments move by water transportation
60%
As of 2012, ____ is the world's busiest container port.
Shanghai
____ refer to major ports where thousands of containers arrive and depart each week.
. load centers
Shipping conferences refer to ____.
cartels of ocean vessel operators operating between certain trade areas
Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ____.
the ability to offer shippers a broader service network
. Integrated air carriers ____.
own all their vehicles as well as pick up and delivery facilities
Which of the following is not open for negotiation in a bilateral air agreement?
all of the above are open for negotiation
Which countries rank first, second, and third, respectively in terms of highway mileage?
United States, China, India
Which of the following statements is false?
China ranks first in the world in terms of highway mileage
Short-sea shipping is widely accepted and practiced in ____.
Europe
Which of the following statements about international inventory management is false?
inventory for sale in one nation generally serves the needs of markets in nearby nations
The Logistics Performance Index ____.
was created in recognition of the importance of logistics in international trade
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