MGSC 492 Actual Questions and Correct Answers
Q1
In Customer Service and Logistics, there is a need to balance the service level provided with the
cost of that provision. T/F
Answer: True
Q2
It is estimated that product surround or logistics elements represent 80 percent of the impact,
but only represent only 20 percent of the cost. 40 percent of the impact, but only represent
only 60 percent of the cost. 20 percent of the impact, but only represent only 80 percent of the
cost. 10 percent of the impact, but only represent only 90 percent of the cost.
Answer: A
Q3
It is seldom possible to devise a policy that absolutely optimizes the cost/service balance.
Companies usually adopt one of two main approaches: 1)A cost minimization approach where
specific service objectives are laid down and met at a minimum cost 2)A service maximization
approach where a distribution budget is fixed and the "best" service supplied within this cost
constraint. T/F
Answer: True
Q4
The Perfect Order is a metric to measure reliability across the supply chain T/F
Answer: True
Q5
A service level agreement is a contract drawn up between a supplier or service provider and the
end user or customer that defines the level of service expected - Usually external, but can be
internal for large companies. T/F
Answer: True
Q6
Complex products require direct sell T/F
Answer: True
, Q7
High-value items are more likely to be sold direct via a short channel (also the security aspect
of a high-value item makes a short channel much more attractive - less opportunity for loss. T/F
Answer: True
Q8
A short channel is used if there are few buyers in a limited geographical area. T/F
Answer: True
Q9
If the market is large, widely spread out, then a "long" channel is used. A long channel is one
where there are several different storage points and a number of different movements as the
product is transferred from the point of production to the final customer T/F
Answer: True
Q10
All the following are apart of the principles of lean thinking except: Specify what does and does
not create value from the customer's perspective ID all steps necessary to design, order, and
produce the product across the value stream to highlight non-value-adding waste. Take actions
that create value flow without interruption, detours, back-flows, waiting or scrap. Make plenty of
inventory to assure excellent customer service.
Answer: D Because you do not want excess inventory.
Q11
All the following are needs for an Agile Supply Chain except A. The dramatic shortening of
product lifecycles B. The development in direct selling and buying. C. The avoidance of building
up stock. D. The standardization of finished goods
Answer: D. The standardization of finished goods
Q12
Supplier and manufacturer on joint physical location or next door is called: A. co-location B.
co-ownership C. co-makership D. Cooperative Manufacturing
Answer: A. co-location
Q1
In Customer Service and Logistics, there is a need to balance the service level provided with the
cost of that provision. T/F
Answer: True
Q2
It is estimated that product surround or logistics elements represent 80 percent of the impact,
but only represent only 20 percent of the cost. 40 percent of the impact, but only represent
only 60 percent of the cost. 20 percent of the impact, but only represent only 80 percent of the
cost. 10 percent of the impact, but only represent only 90 percent of the cost.
Answer: A
Q3
It is seldom possible to devise a policy that absolutely optimizes the cost/service balance.
Companies usually adopt one of two main approaches: 1)A cost minimization approach where
specific service objectives are laid down and met at a minimum cost 2)A service maximization
approach where a distribution budget is fixed and the "best" service supplied within this cost
constraint. T/F
Answer: True
Q4
The Perfect Order is a metric to measure reliability across the supply chain T/F
Answer: True
Q5
A service level agreement is a contract drawn up between a supplier or service provider and the
end user or customer that defines the level of service expected - Usually external, but can be
internal for large companies. T/F
Answer: True
Q6
Complex products require direct sell T/F
Answer: True
, Q7
High-value items are more likely to be sold direct via a short channel (also the security aspect
of a high-value item makes a short channel much more attractive - less opportunity for loss. T/F
Answer: True
Q8
A short channel is used if there are few buyers in a limited geographical area. T/F
Answer: True
Q9
If the market is large, widely spread out, then a "long" channel is used. A long channel is one
where there are several different storage points and a number of different movements as the
product is transferred from the point of production to the final customer T/F
Answer: True
Q10
All the following are apart of the principles of lean thinking except: Specify what does and does
not create value from the customer's perspective ID all steps necessary to design, order, and
produce the product across the value stream to highlight non-value-adding waste. Take actions
that create value flow without interruption, detours, back-flows, waiting or scrap. Make plenty of
inventory to assure excellent customer service.
Answer: D Because you do not want excess inventory.
Q11
All the following are needs for an Agile Supply Chain except A. The dramatic shortening of
product lifecycles B. The development in direct selling and buying. C. The avoidance of building
up stock. D. The standardization of finished goods
Answer: D. The standardization of finished goods
Q12
Supplier and manufacturer on joint physical location or next door is called: A. co-location B.
co-ownership C. co-makership D. Cooperative Manufacturing
Answer: A. co-location
