Logistics Full Test Bank Ch.7 2nd Edition

File: ch07, Chapter 7: Logistics

Multiple Choice

1. __________ is responsible for all activities related to delivering products at the right place and right time.
2. Manufacturing
3. Marketing
4. Sourcing
5. Logistics
6. Finance

Level: Easy

1. Logistics addresses the __________ part of the supply chain:
2. Channels of distribution
3. Upstream and downstream
4. Upstream
5. Downstream
6. None of the above

Level: Medium

1. The outbound side of logistics works primarily with which function:
2. Manufacturing
3. Sourcing
4. Operations
5. Marketing
6. Finance

Level: Medium

1. The inbound side of logistics works primarily with which function:
2. Manufacturing
3. Sourcing
4. Operations
5. Marketing
6. Finance

Level: Medium

1. Infrastructure investment is a primary reason why many firms _________ the logistics function.
2. Manage
3. Eliminate
4. Outsource
5. Insource
6. Control

Level: Easy

1. Factors in the marketplace that elevated logistics away from primarily a physical distribution focus include:
2. Growth of supply chain management
3. Global supply chains
4. Cost
5. Multiple distribution channels
6. a and b

Level: Easy: Medium

1. The logistics function significantly impacts operations in the area of :
2. Inventory positioning
3. Financial management
4. Operations scheduling
5. Distribution channels
6. a and c

Level: Difficult

1. The _______ demand system is responsive to actual customer demand and is unpredictable:
2. Push
3. Pull
4. Stable
5. Innovative
6. Functional

Level: Difficult

1. The _______ demand system is based upon anticipated demand and is more predictable:
2. Push
3. Pull
4. Stable
5. Innovative
6. Functional

Level: Difficult

1. Managing the logistics function in a service industry requires ________ focus compared to a manufacturing industry :
2. Less
3. More
4. Equal

Level: Medium

1. The outbound side of logistics focuses significantly on:
2. Operations
3. Sourcing
4. Order fulfillment
5. Demand planning
6. Total cost of ownership

Level: Difficult

1. Logistics decisions related to ________ emphasize maintaining product integrity:
2. Marketing
3. Finance
4. Operations
5. Order fulfillment
6. Packaging

Level: Easy: Medium

1. A firm’s finances are impacted significantly by the logistics function because logistics:
2. Is asset intense
3. Can impact on financial measures
4. Involves capital expenditures
5. Is responsible for inventory
6. All of the above

Level: Easy

1. Ensuring that logistics delivers products at the right quantities to customers relates to:
2. Customer service
3. Order fulfillment
4. Quantity utility
5. Place utility
6. Time utility

Level: Easy

1. __________ logistics is the process of moving products upstream from the customer to the manufacturer or supplier:
2. Military
3. Business
4. Event
5. Reverse
6. None of the above

Level: Easy

1. The ability of customers to easily return goods has become a(n) ___________ for most retail and Internet businesses:
2. Order fulfillment
3. Order qualifier
4. Challenge
5. Value add
6. b and c

Level: Medium

1. It is believed that the most important task of logistics is:
2. Storage
3. Material handling
4. Packaging
5. Inventory control
6. Transportation

Level: Medium

1. Achieving cost efficiencies through maximizing freight and miles travelled is known as:
2. Economies of scale
3. Less-than-truckload
4. Place utility
5. Economies of distance
6. None of the above

Level: Medium

1. The most effective mode for transporting grain or gravel would likely be:
2. Truck
3. Air
4. Pipeline
5. Rail
6. None of the above

Level: Easy

1. ________ transportation might be best utilized for products with a short product life cycle and unpredictable demand:
2. Truck
3. Air
4. Water
5. Rail
6. None of the above

Level: Easy

1. Transportation modes with high fixed costs include:
2. Truck
3. Air
4. Water
5. Rail
6. b and d

Level: Difficult

1. Transportation modes with high variable costs include:
2. Truck
3. Air
4. Water
5. Rail
6. b and d

Level: Difficult

1. Functions of a warehouse or distribution center might include storage and:
2. Mixing inventory assortments
3. Demand planning
4. Repair or assembly of products
5. Supplier management
6. a and c

Level: Medium

1. Reconfiguring batches of products into smaller quantities or local delivery is known as:
2. Break-bulk
3. Just-in-time
4. Cross-docking
5. Inventory management
6. All of the above

Level: Medium

1. Companies that strategically coordinate their customers’ supply chains are known as:
2. Suppliers
3. 3PL providers
4. Distributors
5. Manufacturers
6. None of the above

Level: Easy

True/False

1. Logistics is the function responsible for getting products to the right place at the right time.

Level: Easy

1. Logistics focuses primarily on the “downstream” part of the supply chain.

Level: Medium

1. Significant investment in assets and infrastructure is a requirement of logistics.

Level: Easy

1. Logistics has evolved from being primarily inbound focused to reaching across the supply chain.

Level: Easy

1. Three types of logistics functions include military, business, and global.

Level: Medium

1. The inbound side of the logistics function works with marketing.

Level: Medium

1. The outbound side of the logistics function works with sourcing.

Level: Medium

1. A significant area of impact that logistics has on operations is inventory management.

Level: Medium

1. A “pull” system of demand is more unpredictable and requires logistics to be responsive to customers.

Level: Difficult

1. A “push” system of demand creates a more predictable environment the logistics function.

Level: Difficult

1. Logistics delivers the product to a customer location, so it does not have a close connection to marketing or customers.

Level: Medium

1. Logistics has a significant financial impact on an organization because of the amount of capital expenditures required.

Level: Easy

1. Product packaging is a decision that must be made between logistics, marketing, and operations.

Level: Easy

1. Logistics provides supply chain management with time, place, and packaging utility.

Level: Medium

1. Reverse logistics directly adds value to a company because returns are an “order qualifier” for customers.

Level: Difficult

1. Selecting the best mode of transportation for a product requires an understanding of the product being transported and customer service strategy.

Level: Medium

1. Storage is typically viewed as the most important task of the logistics function.

Level: Medium

1. Storage decisions require a firm to balance costs and responsiveness to customers.

Level: Easy

1. Order fulfillment is a responsibility of logistics that involves working directly with a customer.

Level: Medium

1. The concept of “place utility” is only focused on delivering products to the right location for the customer with little regard to cost.

Level: Difficult

1. When seeking to maximize economies of distance, logistics should utilize less-than-truckload shipments.

Level: Medium

1. Water and rail transportation modes are best utilized for shipping bulky, heavy shipments over long distances.

Level: Easy

1. Shipping by air transportation mode would be most ideal for pharmaceutical or high-tech products.

Level: Medium

1. In a cross-docking operation, products are never put into storage at the warehouse.

Level: Medium

1. Firms often outsource logistics functions to third-party logistics providers (3PL) because of their expertise and ability to provide cost savings to the firm.

Level: Easy

Essay

1. Briefly describe the four key areas of impact that logistics has on an organization.

Level: Medium

1. Briefly describe the reverse logistics process and its impact on a firm’s supply chain.

Level: Medium

1. Select three distinct modes of transportation and describe the advantages and disadvantages of each mode, and provide an example of a product that would best fit each mode.

Level: Easy