SCMN 3710 EXAM 1 QUESTIONS WITH 100%
CORRECT ANSWERS
/SQ: The three fundamental forms of utility under capitalist economic theory are: -
Answer-Possession, Form, and Time/Space
/.The "Infrastructure" zone on the TC/CSL tradeoff curve is characterized by what? -
Answer-fixed costs rising more rapidly than output (service)
/.According to prediction, __________, __________ and _________ will all house so
called Megacitites, whereas _________ will not have any cities of this size. - Answer-
Asia, Latin America, and North America; Europe
/.Which of the following is NOT one of the the three main macroeconomic forces driving
the explosive growth in international trade since 1944: - Answer-time and place utility
3 main: cheap/plentiful transportation, liberalization of trade rules/reduction of tariffs, &
cheap/plentiful information
/.A critical outcome of the supply chain is to deliver what? - Answer-the right product to
the right place
/.The three broad requirements for "market conditions" to exist in general include buyer
and seller must be aware of each other, ______ , and _____ . - Answer-legal system of
contract enforcement, means of exchange (currency)
/.When a specific point in time, or level of production, is chosen and costs are
developed for the various logistics cost centers, it is called what? - Answer-short run
analysis
/.These are designated by the U.S. secretary of the treasury for the purpose of storing,
repacking, sorting or cleaning imported merchandise entered for warehousing without
paying import duties while the goods are in storage. - Answer-bonded warehouses
/.Many organizations are working more closely with what? - Answer-customers,
suppliers, & various types of logistics suppliers
/.Full collaboration is the dynamic combination of what? - Answer-both vertical and
horizontal collaboration
/.A third-party logistics firm may be defined as what? - Answer-an external supplier that
performs or manages all or part of a company's logistics functions
,/.SQ: Scorecard and key performance indicators (KPIs) refer to what? - Answer-metrics
to manage logistics operations
/.An important sustainability issue that has received much more security in recent years
is the: - Answer-reduction in packaging waste by using alternative materials
/.The essence of demand management is to estimate and manage ___________ and
use this information to make operating decisions. - Answer-customer demand
/.SQ: An inbound-to-operations logistics system is also referred to as what? - Answer-
physical supply
/.One type of demand fluctuation is caused by random variation. What is random
variation? - Answer-a development that cannot normally be anticipated
/.SQ: Traditional customer profitability analyses would start with ______ less returns
and allowances (net sales) and subtract the cost of goods sold. - Answer-gross sales
/.While interest has traditionally focused more on the overall length of the OTC cycle,
recent attention has been centered on what? - Answer-variability or consistency of this
process
/.Applying Internet technology to the order management process has allowed
organizations to not only take time out of the process but also to what? - Answer-
increase the velocity of cash back to the selling organization
/.SQ: Most retailers are essentially supply chain companies since when? - Answer-they
buy products produced by others
/.It can be argued that this is the second language of logistics and supply chain
management. - Answer-finance
/.SQ: Logistics is the process of anticipating customer needs and wants; acquiring the
capital, materials, people, technologies, and information necessary to meet those needs
and wants; optimizing the goods- or service-producing network to fulfill customer
requests; and utilizing the network to fulfill customer requests in a timely manner. This is
a what? - Answer-general definition
/.Which of these is NOT a trend in today's logistics environment that may have
significant effects on decisions involving logistics facility location? - Answer-addition of
many wholesaler/distributor operations
/.This type of fulfillment model has the manufacturer delivering its products directly to
the retailers' stores. - Answer-None of the above
-outsourced
-integrated
, -flow-through
-store-fulfillment
/.Which is correct regarding tapering rates? - Answer-the principle is based on the
carrier's ability to spread certain fixed shipment costs over a greater number of miles
/.Identify the proper sequence of the three "flows" in the supply chain.
1.product
2.cash
3.information - Answer-1,3,2
/.As the dollar value of a product increases, packaging costs will: - Answer-Increase
/.There are four strategies that firms can use to balance supply and demand; price, lead
time, inventory, and ___ - Answer-Production flexibility
/.The global logistics channel intermediary that supervises the movement of goods
through customs and ensures that the documentation accompanying a shipment is
complete and accurate is known as what? - Answer-a customs house broker
/.SQ: In his book "The Wealth of Nations", Adam Smith stated that economies and
companies could improve their wealth by what? - Answer-allowing specialization of
tasks
/.Adam Smith in his renowned treatise, The Wealth of Nations, provided not only a
rationale for a market economy based upon competition, but also advanced a rationale
for trade among nations called the - Answer-Theory of Absolute Advantage
/.Gross margin equals what? - Answer-sales - COGS
/.SQ: The purpose of this chapter is to what? - Answer-develop quantitative tools to
show how metrics can be linked to financial performance
/.SQ: An outbound-to-customer logistics system is also referred to as what? - Answer-
physical distribution
/.SQ: The term functional silos refers to: - Answer-lack of coordination between
departments
/.Order management system represents the principal means by which? - Answer-buyers
and sellers communicate information relating to individual orders of product
/.The term replenishment cycle refers to what? - Answer-the acquisition of additional
inventory
CORRECT ANSWERS
/SQ: The three fundamental forms of utility under capitalist economic theory are: -
Answer-Possession, Form, and Time/Space
/.The "Infrastructure" zone on the TC/CSL tradeoff curve is characterized by what? -
Answer-fixed costs rising more rapidly than output (service)
/.According to prediction, __________, __________ and _________ will all house so
called Megacitites, whereas _________ will not have any cities of this size. - Answer-
Asia, Latin America, and North America; Europe
/.Which of the following is NOT one of the the three main macroeconomic forces driving
the explosive growth in international trade since 1944: - Answer-time and place utility
3 main: cheap/plentiful transportation, liberalization of trade rules/reduction of tariffs, &
cheap/plentiful information
/.A critical outcome of the supply chain is to deliver what? - Answer-the right product to
the right place
/.The three broad requirements for "market conditions" to exist in general include buyer
and seller must be aware of each other, ______ , and _____ . - Answer-legal system of
contract enforcement, means of exchange (currency)
/.When a specific point in time, or level of production, is chosen and costs are
developed for the various logistics cost centers, it is called what? - Answer-short run
analysis
/.These are designated by the U.S. secretary of the treasury for the purpose of storing,
repacking, sorting or cleaning imported merchandise entered for warehousing without
paying import duties while the goods are in storage. - Answer-bonded warehouses
/.Many organizations are working more closely with what? - Answer-customers,
suppliers, & various types of logistics suppliers
/.Full collaboration is the dynamic combination of what? - Answer-both vertical and
horizontal collaboration
/.A third-party logistics firm may be defined as what? - Answer-an external supplier that
performs or manages all or part of a company's logistics functions
,/.SQ: Scorecard and key performance indicators (KPIs) refer to what? - Answer-metrics
to manage logistics operations
/.An important sustainability issue that has received much more security in recent years
is the: - Answer-reduction in packaging waste by using alternative materials
/.The essence of demand management is to estimate and manage ___________ and
use this information to make operating decisions. - Answer-customer demand
/.SQ: An inbound-to-operations logistics system is also referred to as what? - Answer-
physical supply
/.One type of demand fluctuation is caused by random variation. What is random
variation? - Answer-a development that cannot normally be anticipated
/.SQ: Traditional customer profitability analyses would start with ______ less returns
and allowances (net sales) and subtract the cost of goods sold. - Answer-gross sales
/.While interest has traditionally focused more on the overall length of the OTC cycle,
recent attention has been centered on what? - Answer-variability or consistency of this
process
/.Applying Internet technology to the order management process has allowed
organizations to not only take time out of the process but also to what? - Answer-
increase the velocity of cash back to the selling organization
/.SQ: Most retailers are essentially supply chain companies since when? - Answer-they
buy products produced by others
/.It can be argued that this is the second language of logistics and supply chain
management. - Answer-finance
/.SQ: Logistics is the process of anticipating customer needs and wants; acquiring the
capital, materials, people, technologies, and information necessary to meet those needs
and wants; optimizing the goods- or service-producing network to fulfill customer
requests; and utilizing the network to fulfill customer requests in a timely manner. This is
a what? - Answer-general definition
/.Which of these is NOT a trend in today's logistics environment that may have
significant effects on decisions involving logistics facility location? - Answer-addition of
many wholesaler/distributor operations
/.This type of fulfillment model has the manufacturer delivering its products directly to
the retailers' stores. - Answer-None of the above
-outsourced
-integrated
, -flow-through
-store-fulfillment
/.Which is correct regarding tapering rates? - Answer-the principle is based on the
carrier's ability to spread certain fixed shipment costs over a greater number of miles
/.Identify the proper sequence of the three "flows" in the supply chain.
1.product
2.cash
3.information - Answer-1,3,2
/.As the dollar value of a product increases, packaging costs will: - Answer-Increase
/.There are four strategies that firms can use to balance supply and demand; price, lead
time, inventory, and ___ - Answer-Production flexibility
/.The global logistics channel intermediary that supervises the movement of goods
through customs and ensures that the documentation accompanying a shipment is
complete and accurate is known as what? - Answer-a customs house broker
/.SQ: In his book "The Wealth of Nations", Adam Smith stated that economies and
companies could improve their wealth by what? - Answer-allowing specialization of
tasks
/.Adam Smith in his renowned treatise, The Wealth of Nations, provided not only a
rationale for a market economy based upon competition, but also advanced a rationale
for trade among nations called the - Answer-Theory of Absolute Advantage
/.Gross margin equals what? - Answer-sales - COGS
/.SQ: The purpose of this chapter is to what? - Answer-develop quantitative tools to
show how metrics can be linked to financial performance
/.SQ: An outbound-to-customer logistics system is also referred to as what? - Answer-
physical distribution
/.SQ: The term functional silos refers to: - Answer-lack of coordination between
departments
/.Order management system represents the principal means by which? - Answer-buyers
and sellers communicate information relating to individual orders of product
/.The term replenishment cycle refers to what? - Answer-the acquisition of additional
inventory
