BUS 3620 Logistics and Supply Chain Management

1.      On of the major challenges of supply chain management is:

a.       forward buying

b.      maintaining the visibility of inventory

c.       building safety-stock inventory

d.      pushing inventory back to vendors

2.      What type of environment tends to promote strategic alliances and partnerships?

a.       CPFR

b.      TQM

c.       EDI

d.      JIT

3.      The total systems cost concept is based on?

a.       logistics efficiency

b.      relationships between elements the various elements of a distribution system

c.       quality can be impacted by use of the lowest cost system

d.      product variety

4.      What are the four ‘legs; of business operations which have undergone deregulation over the past several years?

a.       transportation, financial, power, and communications

b.      transportation, financial, power, and technology

c.       financial, power, communications, and medical

d.      financial, power, communications, and technology

5.      With the growing interest in recycling and waste management, manufacturers are implementing:

a.       “push” system

b.      “pull” system

c.       Reverse logistic systems

d.      Bureaucratic regulatory systems

6.      Inventory level reduction and inventory turnover improvement received the most attention relative to improving:

a.       asset productivity

b.      customer satisfaction

c.       quality

d.      time

7.      In the final analysis, the success of today’s global supply chains is measured by?

a.       order delivery cycle

b.      the value they add for their customers

c.       percentage of orders shipped complete

d.      a & b

8.      The Council of Logistics Management’s (CLM) definition of logistics focuses attention on two interrelated basic activities. They are:

a.       supply and demand

b.      costs and services

c.       movement and storage

d.      inventory and supply

9.      The value that is added to a good through a manufacturing, production, or assembly process is:

a.       form utility

b.      place utility

c.       time utility

d.      possession utility

10.  The utility that is created by moving goods form surplus points to points where demand exists is referred to as:

a.       form

b.      place

c.       time

d.      possession

11.  Which is created when a product or service, is at a point when demanded by customers?

a.       form utility

b.      place utility

c.       time utility

d.      possession utility

12.  What are established spatial points where goods stop fro storage or processing?

a.       nodes

b.      links

c.       cost centers

d.      fulfillment centers

13.  The network of intermediaries engaged in transfer, storage, handling and communication is a:

a.       link

b.      logistics channel

c.       node

d.      logistic provider

14.  The inverse relationship that exits between the cost of lost sales and inventory carrying cost is called:

a.       inventory effect

b.      product standard

c.       customer standard

d.      company inventory policy

15.  Supply management for the plant [inbound logistics] and distribution management for the firm’s customers [outbound logistics] is known as:

a.       functional management

b.      component support

c.       common culture

d.      dictionary

16.  Which of the following is not a key stage of the order fulfillment?

a.       information sharing

b.      decision making

c.       performance measures

d.      communications

17.  Which of the following is not an example of customer services?

a.       guaranteeing delivery within specified time periods

b.      installing the product

c.       extending the option to sell on consignment

d.      outsourcing financial and credit terms

18.  Which of the following is not a recognized definition of customer service?

a.       customer service as an activity

b.      customer service as a theory

c.       customer service as performance measures

d.      customer service as a philosophy

19.  Demand management includes:

a.       flows of products

b.      flows of services

c.       information about capital

d.      all of the above

20.  Which of the following is not considered part of the new customer service measurement:

a.       orders received on time

b.      link node selection for order handling

c.       orders received safely

d.      orders billed correctly

21.  Which of the following is not an order management function?

a.       derive logistics strategy from financial statements

b.      enter order

c.       originate shipment

d.      assure continuous improvement

22.  Which of the following is not an element of customer services:

a.       time

b.      dependability

c.       communications

d.      link-node selections

23.  The expected costs of stockouts includes all the following except:

a.       back orders

b.      lost sales

c.       warehouse staff downtime

d.      lost customers

24.  The large retailers have made significant changes in channels of distribution.  Which one of the following is not one of the effects?

a.       ECR

b.      CR

c.       DSD

d.      JIT

25.  A source of supply can operate in a perfectly competitive market, an oligopoly, or in a monopoly market. What activity indentifies which one it is?

a.       conduct a market analysis

b.      process all possible sources

c.       decide whether to make or buy

d.      choose a supplier

26.  In the Item Procurement Important Matrix, what describes low risk, low value?

a.       Generics

b.      Commodities

c.       Criticals

d.      Distinctives

27.  In the Item Procurement Important Matrix, what describes high risk, high value?

a.       Generics

b.      Commodities

c.       Criticals

d.      Distinctives

28.  In the Item Procurement Important Matrix, what describes high risk, low value?

a.       Generics

b.      Commodities

c.       Criticals

d.      Distinctives

29.  What vendor selection criteria are described by price and financial stability?

a.       capacity

b.      financial

c.       quality

d.      reliability

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30.  ______ exits for basic raw materials such as grain, oil and sugar.

a.       price lists

b.      commodity markets

c.       negotiations

d.      price quotes

31.  Total procurement price includes:

a.       product price

b.      transaction costs

c.       transportation costs

d.      all the above

32.  What is an amalgam of catalogs from vendors availability via the Internet within a market called?

a.       electronic marketplace

b.      buy-side system

c.       sell-side system

d.      on-line trading community

33.  Which of the following commerce models can be viewed as an electronic auctions?

a.       buy-side system

b.      sell-side system

c.       on-line trading community

d.      electronic marketplace

34.  An inventory decision should consider safety stock when there is a chance of _____.

a.       turnover

b.      over ordering

c.       stockout

d.      oversupply

35.  What is the type of functional inventory called that is the portion of a company’s inventory depleted through normal sale or use and replenished through the routine ordering process?

a.       goods in process stock

b.      speculative stock

c.       dead stock

d.      cycle stock

36.  Economy Wholesalers Co., Inc. accumulated a stock of 100,000 crystal paperweights.  For each case of Economy’s letter size manila folders purchased, the customer would receive a paperweight.  What type o functional inventory did Economy create?

a.       cycle stock

b.      goods in transit

c.       promotional stock

d.      speculative stock

37.  Which company functional area would most likely want to decrease inventory levels to improve turnover?

a.       marketing

b.      production

c.       finance

d.      sales

38.  Which of the following is a type of inventory cost?

a.       in-transit inventory carrying costs

b.      expected stockout costs

c.       storage space costs

d.      order/setup costs

39.  Storage space cost increases as the inventory level increases because it is a ____ cost which is dependent on the number of units stored and their values?

a.       fixed

b.      variable

c.       by-product

d.      carry through

40.  Which type of stockout cost is the most undesirable to the company?

a.       cost of back orders

b.      cost of lost sales

c.       cost of carrying inventory

d.      cost of lost customers

41.  The last stop in ABC classification analysis, assigning items into ABC groups, is the most difficult.  What is the reason for this?

a.       the item code is very complex

b.      the difficult mathematical calculation

c.       the subjective judgment required due to absence of a uniform decision rule

d.      the difficulty in ranking items according some criterion

42.  What is the effect on inventory carrying costs if order size is increased and frequency of orders decreased?

a.       costs  increase

b.      costs decrease

c.       costs remain the same

d.      the effect cannot determined

43.  Total cost in the simply EOQ model is a function of the cost of placing an order and:

a.       the cost of carrying inventory

b.      the cost of shipping an order

c.       the number of orders per year

d.      the cost of storing an order

44.  Under conditions of uncertainty, the reorder point must be reformulated,  The order point becomes:

a.       average daily demand during lead time

b.      safety stock to cover demand variations

c.       cycle stock to cover total demand

d.      a and b

45.  Which is the principal effect to introducing uncertainty into the fixed order quantity model?

a.       safety stock becomes relevant

b.      product value begins to fluctuate

c.       the capital cost component tends to vary

d.      order cost per order varies

46.  There are three practices that are generally associated with additional approaches to inventory management. Which one of the following is not one of them?

a.       JIT

b.      DRP

c.       MRP

d.      ED

47.  JIT works to reduce inventory investment for manufacturers by scheduling the delivery of products to assembly lines.  What approach does the same thing for manufacturers, wholesalers, and retailers?

a.       ECR

b.      QR

c.       a and b

d.      none of the above

48.  In analysis of the cost structure of a grocery supply chain before and after ECR implementation, total cost would be expected to ______.

a.       remain stable

b.      decrease

c.       increase

d.      decrease with operations cost increasing

49.  There are six basic elements of Quick Response. Which one of the followings is not included:

a.       logistics

b.      consumer buying preferences

c.       Information

d.      all of the above

50.  All of the following components are warehouse inventory carrying cost, except:

a.       capital cost

b.      inventory risk cost

c.       inventory service

d.      setup cost