SCM 413 EXAM #1 QUESTIONS AND
CORRECT ANSWERS
Echelon logistics operating arrangements accomplish which of the following?
-Utilize warehouses to create inventory assortments and achieve consolidation economies.
-Focus on reducing transportation cost.
-Require at least 2 warehouse locations.
-Are only used in the grocery industry. ANSW✅✅Utilize warehouses to create inventory
assortments and achieve consolidation economies.
Total Cost Logistics Model takes into consideration ______.
all of the transportation costs
-all transportation costs
-all handling costs
-all inventory carrying costs
-all expenditure necessary to perform logistical requirements ANSW✅✅-all expenditure necessary
to perform logistical requirements
The 80/20 rule, often called the Pareto principle means: ______.
-the Pareto principle doesn't exist
-80% of the time you should focus on 20% of costs
-20% of the SKU base will drive 80% of the demand
-80% of the time you should focus on 20% of costs ANSW✅✅-20% of the SKU base will drive 80%
of the demand
The work of logistics involves ______.
-order processing, inventory, and manufacturing
-production planning, shop scheduling, and production
-transportation, inventory, order processing, warehousing, and facility network design
-soliciting quotations, contracting, acquisitions, and materials receipt ANSW✅✅-transportation,
inventory, order processing, warehousing, and facility network design
, Which one of these concepts is not part of logistical integration objectives?
-variance reduction
-Inventory reduction
-using less parcel shipping
-responsiveness ANSW✅✅using less parcel shipping
Facility network design is concerned with which of the following?
-how many buildings
-building location
-ownership structure of the building
-all of the above ANSW✅✅all of the above
The logistics value proposition is focused on which two main elements?
-Service and Cost.
-Service and Speed.
-Cost and Value added services.
-Cost and Error rate. ANSW✅✅-Service and Cost.
The more significant the service ______ impact upon a customer's business, the greater the priority
placed on error free logistical performance.
-cost
-complexity
-failure
-growth ANSW✅✅-failure
Cost-to-cost tradeoff includes ______.
-transportation vs. warehousing
-warehousing vs. inventory
-transportation vs. inventory
-All of the answers ANSW✅✅-All of the answers
The key element of order process is ______.
CORRECT ANSWERS
Echelon logistics operating arrangements accomplish which of the following?
-Utilize warehouses to create inventory assortments and achieve consolidation economies.
-Focus on reducing transportation cost.
-Require at least 2 warehouse locations.
-Are only used in the grocery industry. ANSW✅✅Utilize warehouses to create inventory
assortments and achieve consolidation economies.
Total Cost Logistics Model takes into consideration ______.
all of the transportation costs
-all transportation costs
-all handling costs
-all inventory carrying costs
-all expenditure necessary to perform logistical requirements ANSW✅✅-all expenditure necessary
to perform logistical requirements
The 80/20 rule, often called the Pareto principle means: ______.
-the Pareto principle doesn't exist
-80% of the time you should focus on 20% of costs
-20% of the SKU base will drive 80% of the demand
-80% of the time you should focus on 20% of costs ANSW✅✅-20% of the SKU base will drive 80%
of the demand
The work of logistics involves ______.
-order processing, inventory, and manufacturing
-production planning, shop scheduling, and production
-transportation, inventory, order processing, warehousing, and facility network design
-soliciting quotations, contracting, acquisitions, and materials receipt ANSW✅✅-transportation,
inventory, order processing, warehousing, and facility network design
, Which one of these concepts is not part of logistical integration objectives?
-variance reduction
-Inventory reduction
-using less parcel shipping
-responsiveness ANSW✅✅using less parcel shipping
Facility network design is concerned with which of the following?
-how many buildings
-building location
-ownership structure of the building
-all of the above ANSW✅✅all of the above
The logistics value proposition is focused on which two main elements?
-Service and Cost.
-Service and Speed.
-Cost and Value added services.
-Cost and Error rate. ANSW✅✅-Service and Cost.
The more significant the service ______ impact upon a customer's business, the greater the priority
placed on error free logistical performance.
-cost
-complexity
-failure
-growth ANSW✅✅-failure
Cost-to-cost tradeoff includes ______.
-transportation vs. warehousing
-warehousing vs. inventory
-transportation vs. inventory
-All of the answers ANSW✅✅-All of the answers
The key element of order process is ______.
