MGSC 492 Actual Questions and Correct Answers

MGSC 492 Actual Questions and Correct Answers



Q1
capital cost
Answer: the cost of using your money and not getting a return




Q2
storage cost
Answer: cost of the warehouse space, the cost of the warehouse labor, cycle counting,
and any equipment (increases as the amount of inventory increases)




Q3
risk cost
Answer: inventory can become damaged (accidents in the DC makes inventory no
longer usable, stolen, obsolete, etc.)




Q4
Which type of countries have a higher percentage of logistics in totaling GDP?
Answer: developing countries




Q5
pre-transaction elements
Answer: there are logistic customer service factors that arise prior to the actual
transaction taking place




Q6
transaction elements
Answer: directly related to the physical transaction




Q7
post-transaction elements
Answer: after delivery has taken place