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Logistics Final

Terms in this set (140)

Product density refers to a product's ____.
weight per volume
Which of the following statements is false?
a. a product's chemical characteristics have little to no influence on the way the product is handled
b. some products can be exposed to freezing weather; others cannot
c. the various properties of goods must be made known to consumers to help them make the correct buying decision and properly care for the product
d. perishable products require special packaging as they move from source to customer
e. all of the above are true
a product's chemical characteristics have little to no influence on the way the product is handled
Which of the following statements regarding perishable products is false?
a. they require special storage
b. they require special monitoring
c. they require special loading
d. they require special packaging
e. all of the above are true
all of the above are true
The building blocks concept is associated with which logistics function?
packaging
____ refers to materials used for the containment, protection, handling, delivery, and presentation of goods.
packaging
Each of the following is a shipping hazard that a package may be exposed to except ____.
a. retraction
b. vibration
c. compression
d. rough handling
e. all of the above are shipping hazards for a package
retraction
Which of the following is false?
a. package labeling is usually done at the end of the assembly line
b. pictures are preferable to words for labeling a product
c. labeling regulations may differ from country to country
d. labeling requirements within a particular country can vary from state to state (province to province)
e. all of the above are true
pictures are preferable to words for labeling a product
As a general rule, labeling requirements and enforcement tends to be more stringent in ____ countries than in ____ countries.
economically developed; economically developing
Which of the following is not a key piece of classification and labeling information provided by the Globally Harmonized System of Classification and Labeling of Chemicals (GHS)?
a. a signal word (e.g., "danger")
b. a picture of the chemical or hazardous material
c. a symbol
d. a hazard statement (e.g., "severe projection hazard")
e. all of the above are key pieces of GHS information
a picture of the chemical or hazardous material
The Globally Harmonized System of Classification and Labeling of Chemicals (GHS) was developed by the ____.
United Nations
Over 80% of customers view packaging as ____.
a major environmental issue
Biodegradable plastics cost ____ as much as conventional plastics.
two times
Which of the following is not a characteristic of plastic packaging?
a. lack of versatility
b. takes a long time to biodegrade
c. plastic is dependent on petroleum
d. plastic litter can kill marine animals
e. all of the above are characteristics of plastic packaging
lack of versatility
Which of the following is not an environmentally-friendly packaging strategy that firms might adopt?
a. reduce the amount of packing materials used
b. use more environmentally-friendly packaging materials
c. use reusable containers
d. retain or support services that collect the used package and recycle it
e. all of the above are strategies
all of the above are strategies
____ systems consider the reverse flow of products, their reuse, and the marketing and distribution of recovered products.
closed-loop
How many countries in the world do not currently use the metric system of measurement?
three
Which of the following is not a logistical consequence of packaging inefficiency?
a. increased loss
b. increased damage
c. higher storage costs
d. slower materials handling
e. all of the above are logistical consequences
all of the above are logistical consequences
What has been described as the "last frontier" of logistics savings opportunities?
packaging inefficiencies
A "box-maker's certificate" ____.
assures railroads and motor carriers that boxes are sufficiently sturdy to meet their handling requirements
What organization regulates the packaging of international air shipments?
International Air Transport Association
A unit load involves ____.
consolidation of several units into larger units to improve efficiency in handling and to reduce shipping costs
A major advantage of the unit load is ____.
mechanical devices can be substituted for manual labor
Which of the following is false?
a. the unit load is of limited value to shippers that deal in smaller quantities
b. unit loads may discourage pilferage
c. the unit load allows mechanical devices to be substituted for manual labor
d. pallets suffer from a lack of standardized sizes, particularly in the U.S.
e. all of the above are true
all of the above are true
The ____ has established six international pallet size standards.
International Standards Organization
The basic unit in unit loading is a ____.
pallet
A major drawback to metal and plastic pallets is their ____.
price
____ pounds is the approximate weight at which there is a noticeable increase in injuries, particularly back injuries, from manual handling.
50
From a space utilization perspective, one pallet occupies ____ times more space than a plastic slip sheet.
80
____ refers to the short distance movement that usually takes place within the confines of a building such as a plant or distribution center and between a building and a transportation service provider.
materials handling
With respect to density, a vehicle loaded with ____ is most likely to cube out (cubic capacity is filled before reaching its weight capacity).
coal
A dry bulk material's ____ is important for determining the quantity that can be stored in a given location.
angle of repose
____ refers to the interaction between workers and workplace conditions.
ergonomics
The total cost of ownership is associated with which of the 10 materials handling principles?
life cycle cost principle
It is important that the materials handling equipment be aligned with an organization's objectives, customers, and ____.
products
Which of the following is false?
a. racks and bins are examples of storage equipment
b. automation refers to equipment that complements, rather than replaces, human contact
c. forklifts can be dangerous
d. in a part-to-picker system, the pick location is brought to the picker
e. all of the above are true
automation refers to equipment that complements, rather than replaces, human contact
____ is the actual, physical movement of goods and people between two points.
transportation
There are ____ modes of transportation.
five
A 3,047 meter (10,000 foot) runway is significant because it ____.
is generally viewed as adequate for accommodating the largest existing wide-body aircraft
Rail gauge refers to ____.
the distance between the inner sides of two parallel rail tracks
In the United States, ____ account for the largest share of ton-miles and ____ account for the majority of freight revenues.
railroads; truck
____ is generally the fastest form of transportation for shipments exceeding 600 miles.
air
Consignees are ____.
receivers of freight
Dimensional weight ____.
considers a shipment's density
Which of the following is not likely to move by air transportation?
a. wearing apparel
b. fruits and vegetables
c. cut flowers
d. auto parts
e. all are likely to move by air
all are likely to move by air
Less-than-truckload motor carriers ____.
operate through a series of terminals
Truckload carriers focus on shipments of greater than ____ pounds.
10,000
Each of the following is true, except ____.
a. Schneider National is an example of a truckload carrier
b. in truckload shipments, the shipper loads and the consignee unloads the trailer
c. a truckload shipment involves only one customer
d. truckload carriers focus on shipments of greater than 10,000 pounds
e. all of the above are true
a truckload shipment involves only one customer
Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ____.
safety concerns
The primary advantage for motor carriers is ____.
flexibility
____ is the most reliable form of transportation.
pipeline
____ pipelines carry crude oil from gathering-line concentration points to the oil refineries.
trunk
____ have a level of market concentration and dominance that is not found in the other modes.
railroads
Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare the modes?
railroads
Inland waterways in the United States are dredged to a depth of ____ feet, which tends to be the minimum depth required for most barges.
nine
A ____ raises or lowers barges so that they can meet the river's level as they move upstream or downstream.
lock
The predominant commodity moved by barge transportation is ____.
petroleum
____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
intermodal
What container size is often used to rank water ports and measure containership capacity?
20 foot container
The primary advantage to land bridge service is ____.
reduced transit times
Freight forwarders ____.
consolidate the shipments of several shippers
Shippers' associations ____.
function in a manner similar to freight forwarders
A transportation broker _____.
looks to match a shipper's freight with a carrier to transport it
Firms that specialize in carrying packages that weigh up to 150 pounds are called ____.
parcel carriers
What is the largest transportation company (by revenues) in the United States?
United Parcel Service
In the United States, commercial airline pilots must retire at age ____.
65
The U.S. ____ is the federal government body with primary responsibility for transportation safety regulation.
Department of Transportation
With respect to U.S. economic regulation, the ____ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers, and some jurisdiction over motor carriers, domestic water transportation, and pipelines.
Surface Transportation Board
Common carriers of transportation have ____ obligations.
4
Which of the following is not a legal classification of carriers?
a. exempt
b. contract
c. common
d. private
e. all of the above are legal classifications
all of the above are legal classifications
Private transportation is most prevalent in the ____ industry.
trucking
____ refers to the buying and controlling of transportation services by either a shipper or consignee.
transportation management
In general terms, ____ accounts for about 6% of U.S. gross domestic product.
transportation
____ signifies the price charged for freight transportation.
rate
Which of the following is not one of the three primary factors that transportation rates are based upon?
a. product
b. density
c. weight
d. distance
density
Weight times rate equals ____.
transportation cost
A(n) ____ rate refers to a specific rate for every possible combination of product, weight, and distance.
commodity
A(n) ____ rate simplifies each of the three primary rate factors—product, weight, and distance.
class
Which of the following is not a factor used to determine a product's classification?
a. density
b. liability to damage and theft
c. stowability
d. ease of handling
e. all of the above are factors used to determine a product's classification
all of the above are factors used to determine a product's classification
The National Motor Freight Classification currently has 18 separate ratings, or classes, that range for Class 50 to Class ____
500
____ refers to how heavy a product is in relation to its size.
a. stowability
b. volume
c. weight
d. density
density
____ refers to how easy a commodity is to pack into a load.
stowability
Liability for loss and damage is one factor used to determine a product's freight classification. Which of the following is not a loss and damage consideration?
a. a commodity's propensity to damage other freight
b. ability to load freight on top of a commodity
c. a commodity's perishability
d. a commodity's value
e. all of the above are loss and damage considerations
ability to load freight on top of a commodity
With respect to a commodity's freight classification, shippers tend to prefer a ____ classification number and carriers tend to prefer a ____ classification number.
lower, higher
In the class rate system, freight rates are expressed in dollars or cents per ____.
hundredweight
Suppose that a particular item is Class 200 according to the National Motor Freight Classification. What is the relationship between this item's rate and the rate for an item in Class 100?
the class 200 rate is higher than the class 100 rate
Which of the following is not a possible payment option (terms of sale) for U.S. domestic shipments?
a. FOB origin, freight collect and charged back
b. FOB origin, freight collect
c. FOB origin, freight prepaid
d. FOB origin, freight prepaid and charged back
e. all of the above are possible payment options
FOB origin, freight collect and charged back
With FOB destination, freight prepaid ____.
the seller pays the freight charges and owns the goods in transit
Which of the following tends to be the most important factor in carrier selection?
a. pricing
b. loss and damage performance
c. transit time reliability
d. financial stability
e. none of the above
none of the above
A(n) ____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service.
amodal shipper
The most important single transportation document is the ____.
bill of lading
Each of the following is true, except ____.
a. the bill of lading is the most important transportation document
b. the bill of lading adds to the complexity of the transportation manager's job
c. the straight bill of lading contains the name of the consignee
d. the order bill of lading does not contain the name of the consignee
e. all of the above are true
the bill of lading adds to the complexity of the transportation manager's job
An order bill of lading is used ____.
when a shipment is started before the buyer is known
An invoice submitted by the carrier requesting to be paid is ____.
a freight bill
What is the time limitation within which a freight claim must be filed?
nine months from delivery date
Which of the following is false?
a. freight claims must be filed within nine months of the delivery date
b. concealed loss and damage is a delicate area for shippers and carriers
c. the volume of freight claims activity has dropped since transportation deregulation
d. shippers or carriers are entitled to a product's full retail value when filing a freight claim
e. all of the above are true
shippers or carriers are entitled to a product's full retail value when filing a freight claim
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive ____.
the wholesale price, plus freight if previously paid
Small shipments are defined as those that ____.
weigh more than 150 pounds but less than 500 pounds
Which of the following statements is false?
a. carriers may be reluctant to accept small shipments because they require a high degree of manual labor
b. some carriers believe they lose money on small shipments
c. consolidating small shipments into larger ones could result in poorer service to the final customer
d. consolidating small shipments into larger ones likely results in higher inventory carrying costs
e. all of the above are true
all of the above are true
Demurrage charges are collected by railroads, ____, and ____.
water carriers, pipelines
Which of the following statements is false?
detention is similar to demurrage, except that detention applies to pipelines
U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars.
48, 24
____ can be defined as the process of determining how a shipment will be moved between origin and destination.
routing
A ____ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred carriers, and a list of which carrier or carriers to use for shipments moving between two points.
routing guide
____ refers to determining a shipment's location during the course of its move.
tracking
____ refers to rapidly moving a shipment through a carrier's system.
expediting
____ 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?
a. embargoes
b. import quotas
c. barring certain types of shipments
d. tariffs
e. all of the above are political restrictions
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?
a. language
b. time orientation
c. population
d. national holidays
e. all of the above are cultural factors
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?
a letter of credit
International freight forwarders can provide a number of functions. Which of the following is not one of them?
a. booking space on carriers
b. preparing an export declaration
c. arranged for insurance
d. preparing and sending shipping notices and documents
e. all of the above are possible functions
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?
a. payment for freight pick up and delivery
b. buying space wholesale and selling it retail
c. commissions on shipping revenues generated for carriers
d. fees for document preparation and performing research
e. all of the above are sources of income
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?
a. the carriers that will service particular city pairs
b. the types of aircraft to be used
c. the number of flights between the two countries
d. the total number of seats to be offered
e. all of the above are open for negotiation
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?
a. in China, freight is often given lower priority than passengers in rail transportation
b. China ranks first in the world in terms of highway mileage
c. highway freight transportation can be provided by animals and carts in some countries
d. some countries limit a motor carrier's operations to within a particular state's borders
e. all of the above are true
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?
a. product return policies are a concern
b. inventory valuation is difficult because of continually changing exchange rates
c. safety stocks generally need to be larger
d. inventory for sale in one nation generally serves the needs of markets in nearby nations
e. all of the above are true
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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