SCMN3710
SCMN 3710 MIDTERM EXAM 2
The "Value Proposition" that must be satisfied for the "invisible hand" to move goods
from areas of surplus to areas of shortage holds that the _____ must be _______ the
_______ . - Correct Ans-change in total value, greater than, change in total cost
The "product mix/assortment" problem refers to rapidly increasing costs as a result of -
Correct Ans-trying to serve the last 1-3 percent of customer demand with ever
increasing inventory
In deploying supply chains across global markets, managers seek to identify
opportunities where - Correct Ans-differential value is high and total cost is low
The "most efficient frontier" on the TC-CSL graph is the line along which - Correct Ans-
costs are at the theoretical minimum for a given level of customer service
Complexity in the supply chain is caused by - Correct Ans-All of these answers: the
number of SKUs, locations of customers and suppliers, transportation requirements
Logistics, in its simplest form, - Correct Ans-combines inbound logistics with the
outbound logistics of physical distribution
Traditionally, information has been viewed as flowing in the opposite direction of
products, that is, from the market/customer back to the wholesalers, manufacturers, and
vendors - Correct Ans-None of these answers: The "Big Box" stores have developed
their own sources, This is still true and has not changed, Computerization has greatly
increased the flow of information from the source
One of the four supply chain flows in Figure 1 - 8 that has received increased attention
from supply chain managers due to the growth in technology is: - Correct Ans-Demand
flow
Which of the answers below is an example of the creation of form utility by a logistics
activity? - Correct Ans-the breaking bulk and repackaging at a distribution center
Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury
pontoon boats for customers on the East coast of the United States. Each boat requires
thousands of parts purchased from over 1,000 vendors. A number of boats are in
production at any one time, so a large number of parts constantly arrive and are stored.
Once a boat is finished, it is sailed up the coast to a convenient port for customer
delivery. Which type of logistics system does Water Cruisers use? - Correct Ans-heavily
inbound
SCMN3710
, SCMN3710
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 - Correct Ans-short run analysis
A ______ analysis examines a logistics system over a long time period or range of
output. - Correct Ans-dynamic
The utility that is created by moving goods from production points to market points
where demand exists is referred to as: - Correct Ans-place
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. - Correct Ans-Bonded warehouses
A demand-driven system is also known as - Correct Ans-a pull system
Globalization was initially driven by countries - Correct Ans-seeking materials and
goods not available in their own land
Goods can be stored in a bonded warehouse - Correct Ans-for up to 3 years
Which is the main advantage of international air transport? - Correct Ans-transit times
A third-party logistics firm may be defined as - Correct Ans-an external supplier that
performs or manages all or part of a company's logistics functions.
Full collaboration is the dynamic combination of - Correct Ans-both vertical and
horizontal collaboration
While available evidence supports the fact that the president or CEO and the finance
executive are often involved with the identification of the need for logistic services, -
Correct Ans-executives from other areas in the company are also aware of such needs
but to a lesser degree.
In the SCOR Model there are five major categories of metrics that need to be used to
measure the performance of Process D1: reliability, ___________, agility, costs, and
asset management. - Correct Ans-responsiveness
The current logistics management approach is supported by which performance
measurement concepts? - Correct Ans-least total cost.
An "executive dashboard" is - Correct Ans-a small number (usually less than five) of
KPIs
Another driving influence for supply chain reexamination has been the desire of
organizations to change their supply chain focus from a __________to an "investment"
center. - Correct Ans-cost center
SCMN3710
SCMN 3710 MIDTERM EXAM 2
The "Value Proposition" that must be satisfied for the "invisible hand" to move goods
from areas of surplus to areas of shortage holds that the _____ must be _______ the
_______ . - Correct Ans-change in total value, greater than, change in total cost
The "product mix/assortment" problem refers to rapidly increasing costs as a result of -
Correct Ans-trying to serve the last 1-3 percent of customer demand with ever
increasing inventory
In deploying supply chains across global markets, managers seek to identify
opportunities where - Correct Ans-differential value is high and total cost is low
The "most efficient frontier" on the TC-CSL graph is the line along which - Correct Ans-
costs are at the theoretical minimum for a given level of customer service
Complexity in the supply chain is caused by - Correct Ans-All of these answers: the
number of SKUs, locations of customers and suppliers, transportation requirements
Logistics, in its simplest form, - Correct Ans-combines inbound logistics with the
outbound logistics of physical distribution
Traditionally, information has been viewed as flowing in the opposite direction of
products, that is, from the market/customer back to the wholesalers, manufacturers, and
vendors - Correct Ans-None of these answers: The "Big Box" stores have developed
their own sources, This is still true and has not changed, Computerization has greatly
increased the flow of information from the source
One of the four supply chain flows in Figure 1 - 8 that has received increased attention
from supply chain managers due to the growth in technology is: - Correct Ans-Demand
flow
Which of the answers below is an example of the creation of form utility by a logistics
activity? - Correct Ans-the breaking bulk and repackaging at a distribution center
Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury
pontoon boats for customers on the East coast of the United States. Each boat requires
thousands of parts purchased from over 1,000 vendors. A number of boats are in
production at any one time, so a large number of parts constantly arrive and are stored.
Once a boat is finished, it is sailed up the coast to a convenient port for customer
delivery. Which type of logistics system does Water Cruisers use? - Correct Ans-heavily
inbound
SCMN3710
, SCMN3710
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 - Correct Ans-short run analysis
A ______ analysis examines a logistics system over a long time period or range of
output. - Correct Ans-dynamic
The utility that is created by moving goods from production points to market points
where demand exists is referred to as: - Correct Ans-place
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. - Correct Ans-Bonded warehouses
A demand-driven system is also known as - Correct Ans-a pull system
Globalization was initially driven by countries - Correct Ans-seeking materials and
goods not available in their own land
Goods can be stored in a bonded warehouse - Correct Ans-for up to 3 years
Which is the main advantage of international air transport? - Correct Ans-transit times
A third-party logistics firm may be defined as - Correct Ans-an external supplier that
performs or manages all or part of a company's logistics functions.
Full collaboration is the dynamic combination of - Correct Ans-both vertical and
horizontal collaboration
While available evidence supports the fact that the president or CEO and the finance
executive are often involved with the identification of the need for logistic services, -
Correct Ans-executives from other areas in the company are also aware of such needs
but to a lesser degree.
In the SCOR Model there are five major categories of metrics that need to be used to
measure the performance of Process D1: reliability, ___________, agility, costs, and
asset management. - Correct Ans-responsiveness
The current logistics management approach is supported by which performance
measurement concepts? - Correct Ans-least total cost.
An "executive dashboard" is - Correct Ans-a small number (usually less than five) of
KPIs
Another driving influence for supply chain reexamination has been the desire of
organizations to change their supply chain focus from a __________to an "investment"
center. - Correct Ans-cost center
SCMN3710
