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SCM Exam 3

Terms in this set (52)

If the physical inventory is higher than the inventory on records, it is likely to lead to

higher technology cost
higher inventory cost
higher prevention cost
lower customer satisfaction
higher inventory cost
The Incoterms specify

when the payment should be made
when the risk gets transferred from the exporter to the Importer
the role of exporters Bank in the process
the correct nomenclature for the product shipped
when the risk gets transferred from the exporter to the importer
A consignment of 2 twenty feet containers and 4 forty feet containers is equal to

4 TEUs
6 TEUs
8 TEUs
10 TEUs
10 TEUs (twentry feet = 1 TEU; Fortty feet = 2 TEUs)
A company has an aim to drastically reduce carbon emissions during the intra country (within the country) transportation. The ideal for of transportation for this company would be

freight forwarder networks
road networks
3rd party networks
rail networks
rail networks
A key feature of full truck load (FTL) service providers is that they use:

Palletized operations
Point-to-point network
First mile operators
Hub and spoke network
point to point network
A 76L34W37.5B box carries 12 kilograms of material. If this box is to be shipped by air freight, the dimensional weight of this box would be [0.006 cubic meters = 1kg dimensional weight]:

20 kilograms
14 kilograms
12 kilograms
16.15 kilo grams
16.15 kilo grams
(0.006/(763437.5)
The cheaper modes of transport like the ships are associated with

Lower lead time, lower inventory and better customer service
Higher lead time, lower inventory and better customer service
Lower lead time, higher inventory and poorer customer service
Higher lead time, higher inventory and poorer customer service
higher lead time, higher inventory, and poorer customer service
In most cases, as the number of distribution warehouses increase:

The inventory holding cost increases
The inventory ordering cost increases
The customer delivery lead time increases
The outbound logistics cost increases
the inventory holding cost increases
The faster modes of transport like the airplanes are associated with

Higher lead time, higher inventory and poorer lead time
Lower lead time, lower inventory and better customer service
Lower lead time, higher inventory and better customer service
Higher lead time, lower inventory and better customer service
lower lead time, lower inventory and better customer service
A key feature of less than truck load (LTL) service providers is that they use:

First mile operators
Palletized operations
Point-to-point network
Hub and spoke network
hub and spoke network
In most cases, as the number of distribution warehouses decreases:

The delivery lead time increases
The inventory holding cost increases
The warehouse overhead decreases
The outbound logistics cost decreases
the delivery lead time increases
A fourth party logistics (4PL) service provider:

Ensures low logistics cost
Have high expertise in one mode of transport
Offers a bundle of logistics services
Should be used for all imports
offers a bundle of logistics services
A student moving from home to college town has to shift 10 large boxes of clothes, books and other personal items. The ideal mode for this movement would be:

Courier networks
Full Mini-truck service providers
Less than truck load service providers
Parcel carriers
Less than truck load service providers
A supplier used to dispatch goods to the customer from a warehouse that was 220 miles away. The transportation costs were $4000. If the supplier starts shipping form a warehouse 440 miles away, the new transportation costs would be

More than $8000
Close to $8000
Less than $4000
Close to $4000
Less than $4000
A key challenge in using private fleets is

Ensuring pollution compliance
Reducing maintenance costs
Managing driver routines
Arranging for backhauls
arranging for backhauls
Ship agents:

Are travel agents for the cargo
Offer customers quotes from different shipping lines
Are a form of 4th party (4PL) service providers
Act as owners of shipping lines at a port
act as owners of shipping lines at a port
Multimodal transport involves

Using the same shipping document and contract over multiple modes of transport
Allowing customers to request dispatch by any mode of transport they deem fit
Using market leader for each leg of material shipment
Having the capability to use different modes of transport according to their cost
using the same shipping document and contract over multiple modes of transport
The type of warehouse that supports movement of goods from one supplier to many customers is called as:

Cross dock warehouse
Break bulk warehouse
Consolidation center
Consignment center
break bulk warehouse
If the physical inventory is lower than the inventory on records, it is likely to lead to

Lower customer satisfaction
Higher technology cost
Higher prevention cost
Higher inventory cost
lower customer satisfaction
Consolidation warehouses

Move material from one supplier to many customers
Move material from many suppliers to many customers
Move scarce resources from factories to hospitals
Move material from many suppliers to one customer
move material from many suppliers to One customer
If two competing firms have a choice whether to get involved in social initiative or not, in most cases:
Both firms would decide to not work on social causes
Both firms would decide to work on social causes
The larger of the two firms would decide to work on social causes
The smaller of the two would decide to work on social causes
Both firms would decide to not work on social causes
Which of the following goals characterizes the triple bottom line?
Group of answer choices
Time, Place, and Form
People, Planet, and Profit
Accounting, Finance, and Economics
Financial, customer, process
People, Planet, and Profit
The Brundtland Commission definition of sustainability prioritizes:
Group of answer choices
Both the current needs as well as the future needs
Future needs over current needs
Current needs over future needs
Societal needs over company needs
Both the current needs as well as the future needs
What is triple bottom line?
Group of answer choices
An accounting tool that looks at cost, profit and loss
A management strategy which focuses on corporate social responsibility
A management strategy which states all the attention should be on profits
An accounting tool that looks at the impact on people, planet and profits
An accounting tool that looks at the impact on people, planet and profits
Which of these statements is true regarding stake holders:
Group of answer choices
Customers are the most important stakeholders
b. Suppliers can never be important stakeholders
All stakeholders are important
Shareholding stakeholders must be given the due priority
all stakeholders are important
According to the notes, for effective recycling:
Group of answer choices
Producing firms must use multiple compounds and elements in the manufacturing process
The garbage must be segregated into multiple categories
Consumers must not use non-recyclable goods x
The recycling plant must use the latest technology x
...
The organization Fair Trade does all of these except
Group of answer choices
Support construction of hospitals and schools at the supplier's location
b. Ensure that the suppliers do not use specified chemicals
Aggregate suppliers into a coalition
Lobby to reduce taxation for its members
Lobby to reduce taxation for its members
The purpose of ISO14001 is to help companies design and implement
Group of answer choices
Environment management systems
Socio-economic management system
Safety and health management system
Social management systems
environment management systems
A firm wants advice on how to engage the various not-for-profit environmental and social groups. A good source of this advice would be:
Group of answer choices
ISO 23000
ISO 26000
ISO 14000
ISO 45000
ISO 26000
The waste hierarchy according from the most preferred to the least preferred initiative is:
Group of answer choices
Reduce - Recycle - Reuse - Recover energy
Reuse - Reduce - Recycle - Recover Energy
Reduce - Reuse - Recycle - Recover energy
Reuse - Recycle - Reduce - Recover Energy
reduce - reuse - recycle - recover energy
Which of these characterizes a sustainable approach as per the Brundtland commission definition:
Group of answer choices
A paper company planting trees to ensure future availability of raw material
A mining company shutting down mines to reduce pollution
An agriculture company only buying from farmers that use organic fertilizers
A shipping company reducing fishing levels to ensure future availability of fishes
a paper company planting trees to ensure future availability of raw materials
A country uses child labor as an excuse to ban imports from developing countries This practice is known as:
Group of answer choices
Green washing
Anti-social behavior
Non-tariff barriers
Myopic environmental approach
non tariff barriers
The pollution caused by all my supply chain partners, business travel, etc. is labeled as:
Group of answer choices
Scope 2 emissions
Score 1 emissions
Scope 4 emissions
Scope 3 emissions
scope 3 emissions
Greenwashing refers to the practice of:
Group of answer choices
Ensuring that company processes clean up any waste generated
The attempt to create false impression of environment friendliness
y Removing all traces of environmental damage caused by the company
Discussion environmental initiatives with experts
the attempt to create false impression of environment friendliness
Cradle-to-grave approach for a mobile phone would
Group of answer choices
Ensure that all stake holders are kept informed during all stages of the product lifecycle
Minimize the energy consumed during the life of the phone and create a plan for safe disposal at the end of life
Ensure that all employees and suppliers involved in manufacturing the phone are paid their due amount of money
Maximize the amount of economic utility generated by the phone while minimizing the human resource costs
Ensure that all stake holders are kept informed during all stages of the product lifecycle
A shoe company designs a shoe with only one compound so that the shoe can be recycled easily at the end of life. This approach is called as:
Group of answer choices
End-of-life Assessment
Recyclability Assessment
b. Environmental Assessment
Lifecycle Assessment
lifecycle assessment
Which of these best explains the Scope 1 emissions for a mall:
Group of answer choices
The pollution generated by electric company that supplies power to the mall
The pollution caused by customers' travel to the mall
The waste generated during deep cleaning the floors
The waste generated in the factories of brands that sell in the mall
the waste generated during deep cleaning the floors
Which of these statements best describes a risk?
Group of answer choices
Uncertainty when looking at the future
Clarity in future decisions
Certainty of not suffering harm or loss
Uncertainty when looking at the past
Uncertainty when looking at the future
A key part of risk management is that
Group of answer choices
The cost of managing the risk must be lower than the cost of risk
Risks must be avoided at all costs
Risks that have a very low chance of occurring must not have a high priority
All risks must be mitigated to ensure workplace safety
The cost of managing the risk must be lower than the cost of risk
Poka-Yoke is an example of
Group of answer choices
Risk avoidance
Risk transfer
Risk mitigation
Risk acceptance
Risk avoidance
Two business processes get coupled because of inventory reduction. Here, coupling refers to:
Group of answer choices
Linkages of both process on technology
The dependency of one process on the other ~
The ability of both processes to work in parallel x
Need to ensure that both processes never stop
...
Organizations that have very accidents avoid simplification. This refers to
Group of answer choices
Providing detailed technical training to all employees x
Not offering simple explanations to events
Ensure that right technical terms are used to describe deviations
Letting systems stay in their natural complex state
...
A steam valve was kept open and this led to the increase of temperature of the reactor. Fortunately, just before the temperature reached the danger levels, this was noticed and the valve was turned off. This is an example of:
Group of answer choices
Near miss
Detection control x
Risk mitigation
Accident potentiality
...
Failure Mode Effects Analysis (FMEA) can be described as:
Group of answer choices
A method to prioritize the risks
A method to transfer risk
A method to eliminate risks
A method to identify risks
a method to prioritize risks
A substantial quantity of IV bags used in hospitals in the USA are made in Puerto Rico. This is an example of creating risk due to:
Group of answer choices
Location dependence
Supplier centralization
Inventory Reduction
Technology change
Supplier centralization
A risk should be avoided when
Group of answer choices
The risk event is very difficult to detect
It has a high probability of occurrence
It has a high risk propensity number
The impact of risk is very high
It has a high risk propensity number
A business risk is best defined as
Group of answer choices
A definite gain to the business
A definite cost to the business
A possible cost to the business
A possible gain to the business
a possible cost to the business
All of these are necessary conditions for a high reliability business EXCEPT:
Group of answer choices
Creating a few managers with complete knowledge of the firm
Creating a culture oriented towards safety
Ensuring that necessary resources are available for safe operations
Allowing experts to take decisions on safety
Ensuring that necessary resources are available for safe operations
Offshore outsourcing has all these risks EXCEPT:
Group of answer choices
Increase of cost of product
Loss of control
Theft of intellectual property
Natural disasters on the shipping route
increase of cost of product
Risk priority number (RPN) is a product of
Group of answer choices
Probability, Impact and Timeliness
Severity, Occurrence and Detection
Probability, Impact and Detection
Severity, Occurrence and Timeliness
Severity, Occurrence and Detection
Risk transfer:
Group of answer choices
Reduces the impact but not the probability of risk
Neither reduces the impact or probability of risk
Reduces the probability but not the impact of risk
Reduces both the impact and probability of risk
neither reduces the impact or probability of risk
The four possible options to manage a risk are:
Group of answer choices
Avoid, evade, transfer and accept
Avoid, mitigate, transfer and evade
Avoid, mitigate, transfer and accept
Evade, mitigate, transfer and accept
Avoid, mitigate, transfer and accept
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