Logistics Final T/F questions with
100% complete solutions
The buyer and seller look at order time from the same perspective. - correct answer ✔✔ F
From a marketing perspective, logistics customer service can be thought of as a feature of the
augmented product that adds value for the customer. - correct answer ✔✔ F
Customer service is of equal importance to both logistics and marketing . - correct answer ✔✔ T
A driving force behind the attention to OTC cycle variability is safety stock. The absolute length
of the order cycle will influence a demand inventory. - correct answer ✔✔ T
Reserve Inventory and Determine Delivery Date has traditionally been referred to as order
processing. - correct answer ✔✔ T
ABC analysis uses a single criterion to classify SKUs from most important to least important. -
correct answer ✔✔ T
There are ten principal activities to the OTC model. - correct answer ✔✔ F
Activity Based Costing (ABC) allocates costs to activities based on a fixed predetermined
measure (e.g. cases). - correct answer ✔✔ F
Firms today are beginning to use techniques such as activity-based costing to more accurately
allocate costs to customers based on the specific costs of servicing a customer's orders relative
to how, how much, what, and when a customer orders. - correct answer ✔✔ T
, Customer relationship management is a new concept only recently receiving attention. - correct
answer ✔✔ F
Customer service is anything that touches the customer. - correct answer ✔✔ T
Activity-based costing works well in warehouse-type environments but does not work for
customer service applications. - correct answer ✔✔ F
25. A stockout always results in a back order. - correct answer ✔✔ F
28. "Order to cash" and "order cycle" are the same. - correct answer ✔✔ T
29. With the proper information on how a customer's interaction with the shipper drives the
firm's costs, the firm can then segment its customers by profitability. - correct answer ✔✔ T
2) Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well
as supporting the balance sheet, a new concept only recently receiving attention - correct
answer ✔✔ F
3) JIT was developed in the U.S and copied by the Japanese - correct answer ✔✔ F
5) JIT is often used to force inventory back up the pipeline and therefore does not reduce
inventory. - correct answer ✔✔ F
7) Capital cost is also called interest or opportunity cost - correct answer ✔✔ T
8) The ABC analysis is based on Pareto's law. - correct answer ✔✔ T
100% complete solutions
The buyer and seller look at order time from the same perspective. - correct answer ✔✔ F
From a marketing perspective, logistics customer service can be thought of as a feature of the
augmented product that adds value for the customer. - correct answer ✔✔ F
Customer service is of equal importance to both logistics and marketing . - correct answer ✔✔ T
A driving force behind the attention to OTC cycle variability is safety stock. The absolute length
of the order cycle will influence a demand inventory. - correct answer ✔✔ T
Reserve Inventory and Determine Delivery Date has traditionally been referred to as order
processing. - correct answer ✔✔ T
ABC analysis uses a single criterion to classify SKUs from most important to least important. -
correct answer ✔✔ T
There are ten principal activities to the OTC model. - correct answer ✔✔ F
Activity Based Costing (ABC) allocates costs to activities based on a fixed predetermined
measure (e.g. cases). - correct answer ✔✔ F
Firms today are beginning to use techniques such as activity-based costing to more accurately
allocate costs to customers based on the specific costs of servicing a customer's orders relative
to how, how much, what, and when a customer orders. - correct answer ✔✔ T
, Customer relationship management is a new concept only recently receiving attention. - correct
answer ✔✔ F
Customer service is anything that touches the customer. - correct answer ✔✔ T
Activity-based costing works well in warehouse-type environments but does not work for
customer service applications. - correct answer ✔✔ F
25. A stockout always results in a back order. - correct answer ✔✔ F
28. "Order to cash" and "order cycle" are the same. - correct answer ✔✔ T
29. With the proper information on how a customer's interaction with the shipper drives the
firm's costs, the firm can then segment its customers by profitability. - correct answer ✔✔ T
2) Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well
as supporting the balance sheet, a new concept only recently receiving attention - correct
answer ✔✔ F
3) JIT was developed in the U.S and copied by the Japanese - correct answer ✔✔ F
5) JIT is often used to force inventory back up the pipeline and therefore does not reduce
inventory. - correct answer ✔✔ F
7) Capital cost is also called interest or opportunity cost - correct answer ✔✔ T
8) The ABC analysis is based on Pareto's law. - correct answer ✔✔ T
