1. The logistics pipeline is another term for what?

a. channels of distributionb. supply chainc. integrated managementd. information flows

2. Which is an attempt to increase the velocity of inventory in the packaged goods industry throughout the supply chain of wholesalers, distributors, and ultimately to the customers?

a. ECRb. JITc. TQMd. EDI

3. Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer, at the right cost, is which definition of logistics?

 a. Seven Rsb. Council of Logistics Managementc. Society of Logistics Engineersd. Supply chain logistics

4. The process of planning, implementing and controlling the efficient, cost‑effective flow and storage of raw materials, in‑process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements is the definition of logistics:

 a. From an inventory perspective.b. Called the Seven Rs.c. Offered by the Society of Logistics Engineers.d. Provided by the Council of Logistics

Management.

5. Inefficiencies can occur in the supply chain, especially with respect to inventory accumulation and/or lack of approximate customer service levels. What is lacking?

 a. Capabilityb. Reliabilityc. Integrationd. Quality

6. With what type of purchase would you need to identify all possible suppliers?

 a. a straight rebuyb. a modified rebuyc. a new buyd. routine purchase

7. The cross‑docking approach is a good example of what kind of logistics system?

 a. Logistics pipelineb. Outbound logistics systemc. Inbound logistics systemd. Push inventory system

8. What function recognizes the importance of speed, flexibility, customization, and reliability?

 a. Manufacturingb. Transportationc. Distributiond. Customer service

9. Inventory as a percent of GNP has generally been declining in recent years. Which factor is responsible?

 a. Reduction and elimination of

unnecessary levels of inventoryb. Improved transportation servicec. Increases in inventory turnover ratesd. Improvements in communications and

information technologye. All of the above

10. The average inventory of XYZ Company is valued at $500,000. The annual carrying cost of carrying the inventory is 20 percent. Which is the annual cost of carrying inventory?

 a. $50,000b. $100,000c. $200,000d. $500,000

11. Which of the following environmental conditions would be the most conducive to the adoption of a pull or reactive approach to inventory management?

 a. When either order cycle time or demand

levels are uncertainb. When there are no capacity limitations at

market‑oriented warehouses or DCsc. When dependent demand existsd. When the overall logistics function

evidences a greater degree of sophistication

12. Which two basic costs are considered in the basic EOQ model?

 a. Carrying costs and interest costsb. Setup costs and order costsc. Obsolescence and interest costsd. Order costs and carrying costs

13. Which type of utility does warehousing create in goods?

 a. Timeb. Placec. Formd. Ownership

14. For the inbound logistics system, what is consolidation?

 a. Bringing together long‑distance, volume

shipments which are then shipped short distances in less‑than‑volume shipments

b. Bringing together short‑distance, less‑than‑volume shipments which are shipped long distances in volume quantities

c. Bringing together an assortment of different types of finished goods

d. Stowing raw materials by grade, quality, size, cost, etc.

15. Materials handling is a term applied to:

 a. Order processingb. Warehouse space utilizationc. The use of automatic equipmentd. Movement into, out of, and within

storage facilities

16. The efficient short‑distance movement that usually takes place within the confines of a building such as a plant or a warehouse and between a building and a transportation agency, defines:

 a. Logistics managementb. Logistics networkingc. Materials handlingd. Traffic management

17. Which is the largest component of total physical distribution costs?

 a. Inbound transportationb. Outbound transportationc. Warehousingd. Inventory carrying cost

18. What is the direct effect, on a shipper, of a carrier's reliability or consistency of transit time?

 a. The complexity of interface functions

encounteredb. Safety stock requirementsc. The degree of intermodal sufficiencyd. The amount of materials handling cost

incurred

19. Which mode is not economically regulated by the ICC?

 a. Motor carriersb. Air carriersc. Domestic water carriersd. Railroads

20.What is an order bill of lading? a. An order for goods which a firm issues

to a vendorb. The same as a freight billc. A negotiable instrument that acts as a

certificate of titled. A purchase invoice

21. An order management system is designed to:

 a. Control inventories for the customerb. Control inventories for the

manufacturerc. Provide a communication network

linking the customer and manufacturer d. Aggravate the sales force

22. All of the following are regarded as a principal activity or element of lead time except:

 a. Order planningb. Order placementc. Order processingd. Order preparation

23. Which effect does a logistics facility location have on a firm's transportation costs, service levels, and inventory costs?

 a. Directb. Indirectc. Conversed. Inverse

24. What type of change may suggest a need to reevaluate and/or redesign a firm's logistics network?

 a. Change in customer service

requirementsb. Change in corporate ownershipc. Cost pressures and competitive

capabilitiesd. Shifting locations of customer and/or

supplier marketse. All of the above

25. A function of international logistics is to create which types of utility?

 a. Time and ownershipb. Time and formc. Time and placed. Form and ownership

The End!