Quiz 36 questions

36.      Which is the relationship between carrying cost and the level of inventory? A). they are inversely proportional  B).they are directly proportional  C). both are unaffected by capacity considerations  D).under most circumstances they are unrelated.  

35.     Which type of stockout costs 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  

34.      Which U.S. domestic mode of transportation has the highest accessibility?  A).  motor  B). rail  C). water  D.)  pipeline  

33.     Which type of warehouse is used when a company wishes to store goods that will be used as collateral?  A).  field  B).  bonded  C).  private  D).  federal warehouse

32.      Which of the following is NOT one of the three primary flows of the supply chain?  A). data stream.  B). information.  C). cash.  D). product    1

31.     Which of the following is NOT one of the elements of the Integrated Logistics Management Concept? A). Production planning B). Customer service  C). Order Processing  D).   Advertising.

30.      Which of the following is not an element of customer service: a. Time b. Dependability c. Communication d. Link-node selections 

29.     Which modes of transportation are used to primarily move low value, high density commodities?  A).  rail and motor  B).  air and motor  C).  water and motor  D). water and rail  

28.      Which is the principal effect of 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  

27.      Which is the line haul service that allows the shipper to stop the shipment in transit and perform some function that physically alters the product's characteristics?  A). diversion  B).stop-off  C).transit privilege  D).drayage. 

26.      Which is the effect on total order costs as order quantity rises (assuming constant usage)? A). they rise B). they fall  C.) they remain constant  D). they rise rapidly and then become constant  

25.     Which is correct regarding tapered rates?  A) rates will taper with high value goods but not with low value goods  B). rates will taper with low value goods but not with high value goods  C). rates taper because the fixed costs associated with a shipment are spread out as the distance of the shipment increases  D). shorter shipment distances cost less per mile than longer shipment distances 

24.      Which decision is one that involves the number of warehouses a firm should have?  A). a transportation cost-maximization decision  B). an inventory cost decision  C.) a centralization-decentralization decision  D). a link-node maximization decision

23.     Which company functional area would most likely want to decrease inventory levels to improve turnover? a. marketing b. production c. finance d. sales 

22.     Which characteristic is appropriate to the concept of contract carriage?  A).  serves the general public  B). serves customers over a continuous period of time  C.)  cannot discriminate between customers  D).  contract carriers are not-for-hire  

21.      Which applies to the value of service pricing model?  A).the model is used to set the lower limit of a freight rate  B).the model only considers the supply side of the transport pricing function  C).the value of the product to be transported is irrelevant in respect to transport pricing  D).the model considers the ability of the transported product to withstand the transportation costs      

20.      What does the no-recourse clause in the bill of lading's contract terms indicate"?  A). the shipper has no recourse to the carrier for cargo damage B). the shipper has not recourse to the consignee for failure to pay freight charges  C). after delivery, the carrier has no recourse to the shipper for additional charges D). after delivery, the carrier has no recourse to the consignee for additional charges   

19.      Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury pontoon boats for customers on the East coast of United States. Each boat requires thousands of parts purchased from over 1,000 vendors. A number of boats are in production at any one time, so a large number of parts constantly arrive and are stored. Once a boat is finished, it is sailed up the coast to a convenient port for customer delivery. Which type of logistics system does Water Cruisers use?A). balanced system B). heavy inbound C) heavy outbound D). reverse system

18.     Under the term of sale "F.O.B. Delivered", who has the responsibility of filing a claim for damage arising from the shipment. a.     buyer  b.     seller  c.     carrier  d.     demurrage agent 

17.      Total procurement price includes: A).product price b. B). transaction costs c. transportation costs d. all the above

16.     The utility that is created by moving goods from surplus points to points where demand exists is referred to as:  A). form  B). place  C). time  D). possession               

15.      The type of functional inventory that helps a firm from being out of stock due to unexpected increases in demand is: a. cycle stock b. safety stock c. promotional stock d. speculative stock 

14.     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 variety2.

13.      Successful supply chain integration is based upon achieving what objective(s)? A). Recognizing the final customer's service level requirements. B). Deciding where to position inventories along the supply chain and how much to stock at each point. C). Developing appropriate policies and procedures for managing the supply chain as a single entity. D). All of the above.

12.     RF technology and on board computers with satellite tracking are examples of : A). Remote access B).management control systems C).ability to observe workers from a remote access  D).data management in the new century.   

11.      Motor Rebuilders, Inc. does custom rebuilding of automobile and truck engines and transmissions. As a rule, when an individual rebuilding order completed, a trucking company was contacted to transport the item to the buyer. Motor Rebuilders pays higher rates for shipping small loads to the shipper's destination. Motor's logistics manager suggested that the rebuilt items be held in temporary storage until enough weight is accumulated to qualify for shipment in truckload quantity enabling payment of lower rates. Motor Rebuilders created a physical distribution inventory for which reason? a. transportation savings b. production savings c. seasonal demand d. goods for resale 

10.        Modular Desk manufactures custom desk units for businesses. Amalgamated Products ordered 50 custom units for its new facility. The desks were ordered F.O.B. Origin because Amalgamated has a private truck fleet to transport the desks. After arrival at Amalgamated, 14 of the desks were found damaged. Amalgamator's driver inspected the desks at Modular's plant and found them all to be in good condition. Who files the damage claim with the insurance company? a.     Modular Desk b.     Amalgamated Products c.     the common carrier e.     the building contractor.

9.         Marketers have begun to recognize the strategic value of place in the marketing mix, and the benefits resulting from high-quality logistical services. As a result which has been recognized as the interface activity between marketing and logistics? a. product b. promotion c. price d. customer service       

8.         In the simple EOQ model, the reorder point is:  A). the maximum amount needed for sales during the time it takes to replenish inventory  B). the minimum amount needed for sales during the time it takes to replenish inventory  C). the time necessary for a company to process an order D). a concept required to minimize total inventory costs  

7.         In the Item Procurement Importance Matrix, what describes high risk, low value a. Generics b. Commodities c. Criticals d. Distinctives  

6.         How does containerization change the materials handling function?  A). from being capital intensive to labor intensive  B). from being labor intensive to capital intensive  C).      from being an ancillary function to a primary function  D). to being a market intensive activity 

5.         How does a carrier's reliability or consistency of transit time effect a shipper?  A). the complexity of interface functions encountered  B). safety stock requirements  C).  the degree of intermodal sufficiency  D). the amount of materials handling cost incurred 

4.         Any governmental unit or authority at any level that owns, operates, or otherwise provides wharf, dock, and other terminal facilities at port locations refers to: a. country government b. a maritime unit C). a free trade zone  D).a port authority7.

3.         A product’s form utility is created when value is added to the product through a manufacturing, production or assembly process. However, logistics activity can provide form utility also. Which describes the creation of form utility by a logistics activity? A). when lumber is cut and made into a chair B). when a firm's finance manager approves customer purchases on a credit basis C). when bulk computer disks in different colors, are packed in three color assortments for sale to computer users D). when flour, milk, and shortening are combined to bake loaves of bread 

2.         A private warehouse requires a high volume of warehouse throughput for efficient operation. Which is the best reason for this? A).  to spread out fixed cost over large output volumes  B.) to spread out variable cost over large output volumes C.)  so total unit costs can be allocated on the basis of traffic volume  D).  to accomplish total utilization of facilities with declining variable costs     

1.         A containerized shipment of French beauty products arrives at the port of Miami. The containers arc off-loaded onto rail cars for shipment to Orlando, Florida. This describes which type of maritime bridge? a.     microbridge b.     minibridge c.     macrobridge d.     mainbridge