BMGT 372 FINAL EXAM QUESTIONS
AND ANSWERS 100% ACCURATE
We have generally discussed logistics from the systems approach perspective. Which
of the following would NOT be included as part of this approach? - ANSWER-
Encourages sub-optimization whenever possible
According to class discussion, the proper "Level of Optimality" for an effective logistics
system would be: - ANSWER-the supply chain
The concept of a channel of distribution is often discussed in terms of flows. Which of
the following is false with regard to flows within channels? - ANSWER-flows are
unidirectional
Which of the following is NOT a goal of materials handling? - ANSWER-Maximize isle
space
The traditional "marketing concept" includes three important elements, including: -
ANSWER-Consumer orientation, integration efforts within the firm, and profits
Logistics creates value to consumers. This value is often described in terms of utility.
Which of the following best describes the categories of utility created by logistics? -
ANSWER-time and place utility
Logistics costs, measured as a percentage of sales, would be of most concern to a
company which produces the following product(s)? - ANSWER-Canned foods
Rolf and Rolf is a supplier of pharmaceutical products to organizations throughout the
U.S. Recently, they did an analysis of service levels to various customers that they
serve. Based on this analysis, they adopted a new policy to ensure that the most
profitable customers received the highest level of service. This approach to establishing
customer service levels is known as: - ANSWER-Segmented Service
Which of the following factors would NOT normally be considered in establishing the
appropriate level of customer service? - ANSWER-The extent of cross docking
Which of the following statements regarding customer service (are) true? - ANSWER-
The optimal level of customer service is the one that obtains and retains the most
profitable customers
Functional Shiftability means: - ANSWER-The functions of the channel remain constant
over time, but they may be performed by any member of the channel
,The objective of inventory strategy is to achieve the desired customer service level with
a minimum of inventory commitment. Excessive inventories may compensate for
deficiencies in the basic design of a logistics system but will ultimately result in higher-
than-necessary costs. This implies that: - ANSWER-A fundamental goal of logistics is
maximum inventory turns while satisfying service commitments
The concept of links and nodes is a useful way to think about a logistics system. Based
on this concept, we can conclude that: - ANSWER-All of the above are valid statements
The most common manufacturing strategies are MTP, MTO, and ATO. Which of the
following would be descriptive of these strategies for manufacturing? - ANSWER-MTP
will typically have the highest inventory/warehousing costs
The concept of an "Integrated Enterprise" generally means: - ANSWER-Functional
activities such as manufacturing, procurement, and distribution are coordinated to
ensure that the firm is operating in an efficient and effective manner
Zimmerman and son's manufactures furniture in North Carolina and markets their
products nationwide. They take orders to built customized furniture for their various
market segments. In order to get the products to their customers, Zimmerman uses for-
hire common carrier trucking companies. This allows them to focus their resources on
the manufacturing aspects of their business. In this case, the trucking companies would
be an example of: - ANSWER-a third-party logistics provider
Today, most companies that sell paint, stock several base white paints, but mix specific
colors to order at the time the customer requests that particular color. This is an
example of: - ANSWER-Manufacturing postponement
In order to ensure assets in the supply chain are optimally utilized to achieve the supply
chain's objectives, managers are concerned with the time an asset is not in productive
use. For example, in the railroad industry the time a locomotive or rail cars are held at a
gathering or switch yard is closely monitored. Ideally, this time would be minimized. The
measure of efficiency is called: - ANSWER-Dwell time
Today, with the growth of global marketing, international logistics is becoming more
important. While the essential aspects of logistics are the same for domestic as well as
global logistics, there are some important differences. These differences include all of
the following except: - ANSWER-normally warehouses are not required
To facilitate handling efficiency, products are typically combined into larger units that
increase the efficiency of handling the freight. Which of the following would NOT be an
example of this concept? - ANSWER-Labeling requirements
The input to the performance cycle is: - ANSWER-Demand
, The key to managing the logistics function is total cost analysis. In the most basic form,
this means: - ANSWER-Minimizing total logistics costs rather than attempting to
minimize the cost of individual firms within the supply chain
21st Century Supply Chains may employ either the anticipatory model or the responsive
business model. All of the following are true regarding these models, except: -
ANSWER-The responsive model relies heavily on forecasts
Assume a retail warehouse can process 100,00o orders.... - ANSWER-114% and 80%
With regard to procurement strategies, it is clear that most firms today are: - ANSWER-
Reducing the number of suppliers in order consolidate volume
The concept of ____ suggests a long-standing theory that a firm must have facilities in
local markets to successfully conduct business. - ANSWER-Local presence paradigm
An improvement in inventory velocity tends to ____ a firm's return on investment. -
ANSWER-Increase
Enlightened logisticians have come to realize that they can no longer focus exclusively
on the price of a product. Instead, they need to be concerned with the total cost of
ownership. This would include pre-transaction costs, transaction costs, and post
transaction costs. This concept is also known as: - ANSWER-Total Cost of Ownership
Uncertainty in the replenishment cycle can be caused by variability in performance of
the various logistics components or activities in the cycle or variations in demand. This
variation typically has it greatest effects on: - ANSWER-Inventory levels
The development of supply chain management as a concept has led to channel
members working more closely together to build long-term relationships that have
resulted in greater loyalty among channel members and better working arrangements.
The parallel of this trend in marketing would be called: - ANSWER-Relationship
marketing
Which of the following would NOT normally be considered an element of customer
service? - ANSWER-Value engineering
Based on your understanding of the Bullwhip Effect, all of the following are causes of
phenomenon except: - ANSWER-Variability of the order cycle
Which of the following statements best summarizes the relationship between
transportation costs and the number of warehouse locations? - ANSWER-Total
transportation costs initially declines as the number of facilities increases, but at some
point begins to increase
AND ANSWERS 100% ACCURATE
We have generally discussed logistics from the systems approach perspective. Which
of the following would NOT be included as part of this approach? - ANSWER-
Encourages sub-optimization whenever possible
According to class discussion, the proper "Level of Optimality" for an effective logistics
system would be: - ANSWER-the supply chain
The concept of a channel of distribution is often discussed in terms of flows. Which of
the following is false with regard to flows within channels? - ANSWER-flows are
unidirectional
Which of the following is NOT a goal of materials handling? - ANSWER-Maximize isle
space
The traditional "marketing concept" includes three important elements, including: -
ANSWER-Consumer orientation, integration efforts within the firm, and profits
Logistics creates value to consumers. This value is often described in terms of utility.
Which of the following best describes the categories of utility created by logistics? -
ANSWER-time and place utility
Logistics costs, measured as a percentage of sales, would be of most concern to a
company which produces the following product(s)? - ANSWER-Canned foods
Rolf and Rolf is a supplier of pharmaceutical products to organizations throughout the
U.S. Recently, they did an analysis of service levels to various customers that they
serve. Based on this analysis, they adopted a new policy to ensure that the most
profitable customers received the highest level of service. This approach to establishing
customer service levels is known as: - ANSWER-Segmented Service
Which of the following factors would NOT normally be considered in establishing the
appropriate level of customer service? - ANSWER-The extent of cross docking
Which of the following statements regarding customer service (are) true? - ANSWER-
The optimal level of customer service is the one that obtains and retains the most
profitable customers
Functional Shiftability means: - ANSWER-The functions of the channel remain constant
over time, but they may be performed by any member of the channel
,The objective of inventory strategy is to achieve the desired customer service level with
a minimum of inventory commitment. Excessive inventories may compensate for
deficiencies in the basic design of a logistics system but will ultimately result in higher-
than-necessary costs. This implies that: - ANSWER-A fundamental goal of logistics is
maximum inventory turns while satisfying service commitments
The concept of links and nodes is a useful way to think about a logistics system. Based
on this concept, we can conclude that: - ANSWER-All of the above are valid statements
The most common manufacturing strategies are MTP, MTO, and ATO. Which of the
following would be descriptive of these strategies for manufacturing? - ANSWER-MTP
will typically have the highest inventory/warehousing costs
The concept of an "Integrated Enterprise" generally means: - ANSWER-Functional
activities such as manufacturing, procurement, and distribution are coordinated to
ensure that the firm is operating in an efficient and effective manner
Zimmerman and son's manufactures furniture in North Carolina and markets their
products nationwide. They take orders to built customized furniture for their various
market segments. In order to get the products to their customers, Zimmerman uses for-
hire common carrier trucking companies. This allows them to focus their resources on
the manufacturing aspects of their business. In this case, the trucking companies would
be an example of: - ANSWER-a third-party logistics provider
Today, most companies that sell paint, stock several base white paints, but mix specific
colors to order at the time the customer requests that particular color. This is an
example of: - ANSWER-Manufacturing postponement
In order to ensure assets in the supply chain are optimally utilized to achieve the supply
chain's objectives, managers are concerned with the time an asset is not in productive
use. For example, in the railroad industry the time a locomotive or rail cars are held at a
gathering or switch yard is closely monitored. Ideally, this time would be minimized. The
measure of efficiency is called: - ANSWER-Dwell time
Today, with the growth of global marketing, international logistics is becoming more
important. While the essential aspects of logistics are the same for domestic as well as
global logistics, there are some important differences. These differences include all of
the following except: - ANSWER-normally warehouses are not required
To facilitate handling efficiency, products are typically combined into larger units that
increase the efficiency of handling the freight. Which of the following would NOT be an
example of this concept? - ANSWER-Labeling requirements
The input to the performance cycle is: - ANSWER-Demand
, The key to managing the logistics function is total cost analysis. In the most basic form,
this means: - ANSWER-Minimizing total logistics costs rather than attempting to
minimize the cost of individual firms within the supply chain
21st Century Supply Chains may employ either the anticipatory model or the responsive
business model. All of the following are true regarding these models, except: -
ANSWER-The responsive model relies heavily on forecasts
Assume a retail warehouse can process 100,00o orders.... - ANSWER-114% and 80%
With regard to procurement strategies, it is clear that most firms today are: - ANSWER-
Reducing the number of suppliers in order consolidate volume
The concept of ____ suggests a long-standing theory that a firm must have facilities in
local markets to successfully conduct business. - ANSWER-Local presence paradigm
An improvement in inventory velocity tends to ____ a firm's return on investment. -
ANSWER-Increase
Enlightened logisticians have come to realize that they can no longer focus exclusively
on the price of a product. Instead, they need to be concerned with the total cost of
ownership. This would include pre-transaction costs, transaction costs, and post
transaction costs. This concept is also known as: - ANSWER-Total Cost of Ownership
Uncertainty in the replenishment cycle can be caused by variability in performance of
the various logistics components or activities in the cycle or variations in demand. This
variation typically has it greatest effects on: - ANSWER-Inventory levels
The development of supply chain management as a concept has led to channel
members working more closely together to build long-term relationships that have
resulted in greater loyalty among channel members and better working arrangements.
The parallel of this trend in marketing would be called: - ANSWER-Relationship
marketing
Which of the following would NOT normally be considered an element of customer
service? - ANSWER-Value engineering
Based on your understanding of the Bullwhip Effect, all of the following are causes of
phenomenon except: - ANSWER-Variability of the order cycle
Which of the following statements best summarizes the relationship between
transportation costs and the number of warehouse locations? - ANSWER-Total
transportation costs initially declines as the number of facilities increases, but at some
point begins to increase
