Transportation & Logistics Test with
verified answers A+
Logistics, as we know it today, has resulted from the integration of: - correct answer
✔✔Materials management and physical distribution
Logistics differs from physical distribution in several respects. The key difference can be
summarized as: - correct answer ✔✔Logistics resulted from the evolutionary merger of
materials management and physical distribution.
The financial flow represents one of the major flows within a supply chain. One form of the
financial flow is the "free" cash flow. The free cash flow refers to: - correct answer ✔✔negative
working capital resulting from collecting from customers before paying suppliers
Information in a supply chain: - correct answer ✔✔flows both up- and down-stream providing
customer demand, product availability, and other information
Reverse logistics refers to which of the following: - correct answer ✔✔The return of products
from downstream customers or trading partners to upstream suppliers.
Supply chain management can be characterized as: - correct answer ✔✔an extended enterprise
that permits the coordination of activities across the boundaries of multiple firms
Logistics: - correct answer ✔✔Plans, implements, and controls the efficient flow of goods and
services
Which of the following statements best describes the three stages in the evolution of the supply
chain concept? - correct answer ✔✔Supply chain management has evolved from the concepts
, of physical distribution, then the integration of physical distribution and materials management
into logistics, with the third stage being supply chain management
Logistics and marketing closely related due to: - correct answer ✔✔the "place" component of
the marketing mix which sets the customer service objectives for logistics
An inherent characteristic of the business logistics approach is total cost analysis. A total cost
analysis: - correct answer ✔✔Requires the decision-maker to consider cost trade-offs within the
system.
The underlying logic of the systems concept was the rationale for the development of logistics.
The systems concept involves: - correct answer ✔✔making trade-off analyses to lower total
logistics costs
Importance of information to logisticsInformation is important to transportation and logistics
managers because - correct answer ✔✔By better using information they can reduce their
inventory investment
Logistics managers frequently make cost trade-offs to lower overall costs to the firm. Which of
the following statements best represents the cost trade-off between inventory and
transportation ? - correct answer ✔✔Logistics managers will consider spending more on
premium transportation if inventory carrying costs are reduced by a greater amount.
Profit leverage is important to logistics managers because it: - correct answer ✔✔demonstrates
how logistics cost savings direct affect the bottom line [profitability] of the firm
Which of the following statements is true regarding the relationship between transportation
and inventory? - correct answer ✔✔The length and variability of transportation transit times
affect both safety and cycle stock.
verified answers A+
Logistics, as we know it today, has resulted from the integration of: - correct answer
✔✔Materials management and physical distribution
Logistics differs from physical distribution in several respects. The key difference can be
summarized as: - correct answer ✔✔Logistics resulted from the evolutionary merger of
materials management and physical distribution.
The financial flow represents one of the major flows within a supply chain. One form of the
financial flow is the "free" cash flow. The free cash flow refers to: - correct answer ✔✔negative
working capital resulting from collecting from customers before paying suppliers
Information in a supply chain: - correct answer ✔✔flows both up- and down-stream providing
customer demand, product availability, and other information
Reverse logistics refers to which of the following: - correct answer ✔✔The return of products
from downstream customers or trading partners to upstream suppliers.
Supply chain management can be characterized as: - correct answer ✔✔an extended enterprise
that permits the coordination of activities across the boundaries of multiple firms
Logistics: - correct answer ✔✔Plans, implements, and controls the efficient flow of goods and
services
Which of the following statements best describes the three stages in the evolution of the supply
chain concept? - correct answer ✔✔Supply chain management has evolved from the concepts
, of physical distribution, then the integration of physical distribution and materials management
into logistics, with the third stage being supply chain management
Logistics and marketing closely related due to: - correct answer ✔✔the "place" component of
the marketing mix which sets the customer service objectives for logistics
An inherent characteristic of the business logistics approach is total cost analysis. A total cost
analysis: - correct answer ✔✔Requires the decision-maker to consider cost trade-offs within the
system.
The underlying logic of the systems concept was the rationale for the development of logistics.
The systems concept involves: - correct answer ✔✔making trade-off analyses to lower total
logistics costs
Importance of information to logisticsInformation is important to transportation and logistics
managers because - correct answer ✔✔By better using information they can reduce their
inventory investment
Logistics managers frequently make cost trade-offs to lower overall costs to the firm. Which of
the following statements best represents the cost trade-off between inventory and
transportation ? - correct answer ✔✔Logistics managers will consider spending more on
premium transportation if inventory carrying costs are reduced by a greater amount.
Profit leverage is important to logistics managers because it: - correct answer ✔✔demonstrates
how logistics cost savings direct affect the bottom line [profitability] of the firm
Which of the following statements is true regarding the relationship between transportation
and inventory? - correct answer ✔✔The length and variability of transportation transit times
affect both safety and cycle stock.
