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Logistics Exam Ch 1 - 5
Terms in this set (120)
Logistics clearly contributes to ___________ and ___________ utility.
___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.
___________ utility refers to having products available where they are needed by
What concept refers to "how well company resources are used to achieve what a
company promises it can do?"
Every customer getting the same type and levels of logistics service refers to
What two logistics activities make the heaviest use of the Internet?
Purchasing and transportation
World trade grew at an average annual rate of approximately ___________ percent between 1997 and 2007.
The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.
The movement and storage of materials into a firm refers to:
What concept refers to the storage of finished product and movement to the
Logistics managers use the ___________ approach to coordinate inbound logistics, materials management, and physical distribution in a cost efficient manner.
A cost trade-off is a situation where:
some costs increase and some costs decrease
The ___________ department often measures inventory in terms of its cost or value in dollars, whereas ___________ tends to measure inventory in terms of units.
A common interface between production and logistics involves:
the length of production runs
Landed costs refer to:
a price that includes both the cost of the product plus transportation to the buyer
____________ refers to being out of an item at the same time there is demand for it.
Which channel covers the movement of title to the goods?
____________ is bringing together similar stocks from different sources.
____________ refers to breaking a homogenous supply into smaller lots.
The most costly logistics activity in many firms is ____________.
How do data and information differ?
data are simply facts; information is a body of facts in a format suitable for decision making
____ provide effective ways to process organizational business data, to perform calculations, and to create documents.
Office automation systems
The most relevant general software package for logisticians is:
4. ____ help various stakeholders—employers, suppliers, customers—work together by interacting and sharing information in many different forms.
What has emerged as the measuring stock for logistics information technology in the century 21st?
____ refers to a network of satellites that transmits signals that pinpoint the exact location of an object.
Global positioning systems
___________ refers to the computer-to-computer transmission of business data in a structured format.
Automatic identification systems are an essential component in ____________.
The most popular automatic identification system currently in use is ___________.
bar code scanners
There are suggestions that widespread adoption of RFID will only occur when the price of read-only tags drops below ____ cents.
The primary advantage of ____________ is that it enables a firm to test the feasibility of proposed changes at relatively little expense.
Warehouse management systems represent an example of what general type of information management system?
Decision support system
Which of the following is not a potential benefit of transportation management systems?
a. Fewer stockouts
b. Reduced fuel consumption
c. Decreased empty vehicle miles
d. Reduced transportation expenditures
____________ refers to the application of mathematical tools to large bodies of data in order to extract correlations and rules.
____ create and maintain consistent data processing methods and an integrated database across multiple business functions.
The origins of contemporary ERP systems can be traced back to logistics and ____________.
A general rule of thumb is that the actual time to implement ERP systems may range
from ____________ to ____________ times longer than the time period specified by
the ERP vendor.
What has emerged as the most popular application of on-demand software (software-
Transportation management systems
In a reverse auction, ____________.
One buyer invites bids from multiple sellers
____________ has been identified as the biggest information technology that companies face today.
Depending on industry and product type, reverse logistics costs as a percent of revenue can range between ____ and ____ percent.
____ strategy is focused on determining the goals for the company, the types of businesses in which the company should compete, and the way the company will be managed.
Which of the following is not one of the generic strategies that can be pursued by an organization, as identified by strategist Michael Porter?
A ____ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.
Which generic strategy concentrates an organization's effort on a narrowly defined market to achieve either a cost leadership of differentiation strategy?
A(n) ____ entails the functional units of an organization providing input into the other levels of strategy formulation.
Hierarch of strategy
Which of the following represents the preferred hierarchy of strategy (i.e., from the first strategy to be developed to the last to be developed)?
Corporate‡ business unit‡ functional
____ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes.
Which of the following is not a potential type of logistics strategy decisions?
Investments in technology that support logistics activities
Selecting appropriate transportation modes
Deployment of inventory
Number and location of warehouses
The ____ shows revenues, expenses, and profit for a period of time.
In general, the ____ measures the profitability of the products and/or services provided by a company
The ____ reflects the assets, liabilities, and owners' equity at a given point in time.
The balance sheet reflects the assets, liabilities, and ____ at a given point in time.
Which of the following does not appear on the balance sheet?
The current ratio is calculated by dividing ____ by ____.
Total current assets; total current liabilities
Which of the following is a common measure of organizational financial success?
Return on investment
What provides the framework for conducting return on assets analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?
The Strategic Profit Model SPM
Return on assets equals:
Net profit margin times asset turnover
What is the formula for net profit margin?
Net profit divided by sales
With respect to net profit margin, the most relevant categories for logistics managers to consider are:
Sales, costs of goods sold, total expenses
What is the formula for asset turnover?
Total sales divided by total assets
With respect to asset turnover, ____ is typically the most relevant logistics asset.
The balanced scorecard approach is based on the belief that management should evaluate their business from ____ distinct perspectives.
Logistics measurement systems have been traditionally information on how many types of performance?
____ and ____ are the two basic organizational structures associated with logistics.
In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.
In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.
One problem with a ____ logistics structure is that because logistics activities are scattered throughout the firm, they likely remain subservient to the objectives of
the department in which they are housed.
In a ____ logistics structure, multiple logistics activities are combined into, and managed as, a single department.
A ____ logistics organization implies that the corporation maintains a single logistics department that administers the related activities for the entire company from the home office.
A ____ logistics organization means that logistics-related decisions are made separately at the divisional or product group level.
A primary advantage of ____ logistics is its relative efficiency, whereas a primary advantage of ____ logistics is its customer responsiveness.
____ organizational design has its foundations in the command-and-control military operation, where decision-making and communication often follow a top-
A ____ organizational design attempts to create an organization that is responsive to the parameters of the contemporary business environment.
A key attribute of network organizational design is a shift from ____ to ____.
____ refers to satisfying current and emerging customer needs.
____ can be defined as an organization's ability to address unexpected operational situations.
____ refers to the amount of output divided by the amount of input.
Which of the following is a way to improve to productivity?
increase output while holding input constant
Productivity improvement efforts in logistics are often directed towards ____.
increasing output while holding input constant
What is the most important purpose of warehouse work rules?
to keep employees from engaging in unproductive and potentially destructive activities
A ____ is a device used to monitor and control the actions taken by a driver and his/her vehicle.
The materials stolen in ____ are usually for the employee's own use.
What is the primary difference between pilferage and theft?
pilferage involves a firm's own employees, while theft involves efforts from outsiders
The large increase in pirate attacks between 2008 and 2009 was due to a surge in attacks off the ____ coast
The concept of logistics social responsibility, or corporate social responsibility issues that relate directly to logistics, did not emerge until which decade?
The two areas in logistics systems where most energy costs occur are ____ and ____.
With respect to the design of warehouses, one suggestion for energy savings is to make sure that dock doors are not placed on the ____ side of a building.
Transportation accounts for approximately ____ of all petroleum consumption in the United States.
Reverse logistics can be ____ times more expensive than forward logistics.
4 to 5
Two of the most important U.S. government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency
Customs and Border Protection
Which of the following is responsible for the security of the U.S. transportation system?
Transportation Security Administration
The Importer Security Filing (ISF) rule requires importers to file ____ pieces of information and carriers to file ____ pieces of information.
Which of the following is an advantage of a decentralized logistics organization?
can be responsive to customer service requirements
Which of the following is an advantage of a centralized logistics organization?
good opportunities for freight consolidation
An under performing supply chain is defined as one that exhibits poor service, unproductive assets, and
High variable operating costs
The supply chain management philosophy emerged in which decade?
A ____________ encompasses all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows.
Although nearly any organization can be part of a supply chain, supply chain management requires:
overt management efforts by the organizations in a supply chain
Three of the most prominent supply chain management frameworks are the Supply-
Chain Operations Reference (SCOR) model, the Global Supply Chain Forum (GSCF) model, and the ____.
The Process Classification Framework (PCF)
The current Global Supply Chain Forum (GSCF) model identifies ____________ key processes associated with supply chain management.
The ____________ is organized around 12 cross-enterprise operating and management processes.
Process Classification Framework
Contemporary supply chains should be fast and ____________.
An organization's ability to respond to changes in demand with respect to volume and variety refers to ____.
What is a perfect order?
simultaneous achievement of relevant customer metrics
____ refers to focusing part of one's supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on
leveling out the planning requirements to smooth production output.
Positive, long-term relationships between supply chain participants refer to:
According to the text, ____________ has been at the center of the changes taking place that affect the supply chain.
The two key factors that have sparked much of the technological change affecting supply chains are ____________ and ____________.
Computing power; Internet
The variability in demand orders among supply chain participants:
refers to the bullwhip effect
Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:
supply chain collaboration
Supply chain collaboration can be classified as transnational, strategic, or ____ in nature.
tactical information sharing
____ collaborations offer the best opportunity for improving supply chain performance.
The general idea behind ____ is that one company allows a specialist company to provide it with one or more logistics functions.
What is a fourth-party logistics provider?
a company that ensures that various 3PLs are working toward the relevant supply chain goals and objectives
____ combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.
Supply chain analytics
In a(n) ____ approach, all relevant software applications are provided by a single vendor.
____ refers to "how we do things around here" and reflects an organization's vision, values, and strategic plans.
What concept refers supply chain?
There are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the following is not one of them?
THIS SET IS OFTEN IN FOLDERS WITH...
Chapter 6: Procurement (Multi)
Ch 12, 13
Chapter 7 - TB
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