LSCM 4560 TEST QUESTIONS WITH VERIFIED
ANSWERS
Transportation - Answers - Overall purchase and control of the movement service used
by a firm in achieving its logistics objectives; service or bundle of services; movement of
passengers or freight from point A to B
Logistics Management - Answers - Part of Supply Chain Management that plans,
implements and controls the efficient, effective flow and storage of goods, services, and
related information the point of origin and point of consumption in order to meet
customers' requirements
Turn - Answers - Sales at cost/ average inventory
Supply Chain Management - Answers - The integration of key business processes from
end user through original suppliers, that provides products, services, and information
that add value for customers and other stakeholders
Transportation adds what utilities? - Answers - Time, Place, and Quantity utility
Which of the following transportation modes moves the most inter-city ton-miles? -
Answers - Rail
You observe that despite an increase of $1 per gallon, the demand for gas remains
unchanged. People after the price increase drive the same number of miles and
consume the same amount of gasoline. Based on this observation, you would conclude
the demand for gas is: - Answers - Inelastic
The US was in recession between 2008 and 2009, and the GDP had negative growth
during several quarters. The demand for transportation also decreased in the
corresponding quarters. The relationship between the company (GDP Growth) and the
demand for transportation demonstrates the concept of: - Answers - Derived demand
The landed cost includes which of the following: - Answers - A cost to produce at
source, to transport a product to its destination, and any ancillary expenses
Trucks exclusively serve 80 percent of the delivery locations in US. Only 20 percent of
the delivery locations can be served by two or more transportation modes. We should
conclude that trucks have a competitive advantage over the modes in which of the
following service components of freight demand? - Answers - Accessibility
,Domestic water carriers can transport entire buildings such as grain elevators or major
structures such as container cranes. No other domestic transportation mode can move
such large items. Domestic water carriers have a competitive advantage over other
transportation modes in which of the following service components of freight demand? -
Answers - Capability
Physical distribution refers to what part of a company's supply chain? - Answers -
Outbound finished goods
The integration of materials management and physical distribution resulted in what we
know as logistics. This integration enabled logistics managers to: - Answers -
Coordinate inbound and outbound transportation to minimize back hauls and lower
rates
Which of the following statements is TRUE regarding the relationship between
transportation and inventory? - Answers - The length and variability transportation
transit times affect both safety and cycle stock
We can consider supply chain management to be: - Answers - An extended enterprise
that crosses the boundaries of multiple firms
The underlying logic for the integration of multiple functions within logistics was: -
Answers - The systems concept
Throughout this course, we will make references to the terms logistics and supply chain
management. Which of the following statements is true regarding the relationship
between these two terms? - Answers - Logistics focuses on product and information
flows whereas supply chain management encompasses these flows and includes others
such as financial.
In the 21st century, the transportation system faces significant challenges. Special
interest groups will place increased demands on the system for specialized services
and access. One of these special interest groups is: - Answers - Senior citizens that
require public transit to access medical and other services
The percent of total disposal income spent on transportation by the average US
household is: - Answers - 16 to 20 percent
(17 percent)
Current thought has identified five modes of transportation. These modes include all of
the following EXCEPT: - Answers - Electrical transmission lines
The growth of civilizations is directly associated with the development of transportation
systems. Which of the following transportation developments is associated with the
development of the US? - Answers - Construction of the Erie Canal to link the Green
Lakes trade to the Hudson River and the East coast.
,The modal split refers to: - Answers - An analytic tool that divides the transportation
market for passengers or freight by use or volume by transportation mode
The concept of derived demand suggests: - Answers - The demand for transportation is
derived from the demand for goods.
During the pre-industrial stage of transport evolution, maritime transport was the most
convenient way to move freight and people. The amount of freight moved by maritime
transport during this stage was: - Answers - Negligible due to the slow speed and
limited capacity of ships
This change in propulsion technology had the greatest effect on maritime trade and
supported large volumes of freight to be moved between countries. - Answers - The
conversion from coal to oil to power steam ships
Massive modifications of transport systems occurred during the industrial stage of the
evolution of transport. These modifications took place during two phases. These phases
were the development of: - Answers - Canal and rail systems
Location theory concentrates on examining two problems. These two problems are: -
Answers - What patterns of location develop and where to market to maximize profit.
Several economists have proposed theories to explain location patterns over time. One
theory proposed that perishable items or items with a high value to density ratio would
be located closest to the city center while items with a low value density ratio would be
produced far from the city center. Which of the following proposes this explanation for
location patterns? - Answers - Von Thünen's concentric rings
This concept suggest an area will produce the goods or services for which it is best
suited. For example, some regions have specialized in the manufacture of textile or
apparel products. Which of the following incorporates this concept? - Answers -
Comparative advantage
Transportation costs are believed to have an effect on the size of a market that can be
effectively served by a firm. Beyond the market reach, either the landed cost is too high
or competitors' prices are lower. One theory proposes that if a firm could cut
transportation costs in half, the market area served by the firm would become four times
as large. Which of the following applies this relationship to explain market reach? -
Answers - Larder's law
The authors define supply chain management as the management of several flows
across the supply chain. Which of the following is NOT identified as a supply chain
process in the text? - Answers - Logistics
, The focus of physical distribution was: - Answers - On the systems cost and cost trade-
offs associated with the outbound flow of goods from a firm
The underlying logic of the systems concept was also the rationale for the development
of the logistics concept because: - Answers - Cost trade-offs in addition to the value or
demand aspects of customer service effectiveness are considered
The bullwhip effect refers to fluctuations in supply and demand which may result from: -
Answers - Uncertainty regarding inventory levels and demand in a supply chain
Supply chain management can be viewed as: - Answers - The pipeline for the efficient
flow of goods, services, information and financials from the source of supply to the end-
user
A supply chain is: - Answers - An extended enterprise that crosses the boundary of
several firms to span their related activities
Logistics has continued to evolve since WWII; however, several variables have
introduced new challenges for managing logistics across the supply chain. These
variables include: - Answers - Internet, globalization, business alliances, and technology
Reverse logistics refers to: - Answers - The flow of returns, times for repair, recyclables,
etc from downstream members to upstream supply chain trading partners
Which of the following statements best describes the three stages in the evolution of the
supply chain concept? - Answers - Supply chain management has evolved from the
concepts of physical distribution, then the integration of physical distribution and
materials management into logistics, with the third stage being supply chain
management.
Supply chain management can be characterized as: - Answers - An extended enterprise
that permits the coordination of activities across the boundaries of multiple firms
The authors suggest that the concept of supply chain management represents the third
phase of an evolution that began in the 1980s. The supply chain concept occurring in
the third phase differs from the earlier phases by: - Answers - Viewing the total system
of interrelated companies as a means to affect a product's price-value in the
marketplace employing the systems concept to understand the interrelationship
between logistics functions and to more effectively manage cost trade-offs to minimize
total cost
The authors of the course textbook suggest that supply chain management: - Answers -
Integrates product, information, and cash flows among organizations
The logistics concept evolved from: - Answers - The integration of physical distribution
and materials management
ANSWERS
Transportation - Answers - Overall purchase and control of the movement service used
by a firm in achieving its logistics objectives; service or bundle of services; movement of
passengers or freight from point A to B
Logistics Management - Answers - Part of Supply Chain Management that plans,
implements and controls the efficient, effective flow and storage of goods, services, and
related information the point of origin and point of consumption in order to meet
customers' requirements
Turn - Answers - Sales at cost/ average inventory
Supply Chain Management - Answers - The integration of key business processes from
end user through original suppliers, that provides products, services, and information
that add value for customers and other stakeholders
Transportation adds what utilities? - Answers - Time, Place, and Quantity utility
Which of the following transportation modes moves the most inter-city ton-miles? -
Answers - Rail
You observe that despite an increase of $1 per gallon, the demand for gas remains
unchanged. People after the price increase drive the same number of miles and
consume the same amount of gasoline. Based on this observation, you would conclude
the demand for gas is: - Answers - Inelastic
The US was in recession between 2008 and 2009, and the GDP had negative growth
during several quarters. The demand for transportation also decreased in the
corresponding quarters. The relationship between the company (GDP Growth) and the
demand for transportation demonstrates the concept of: - Answers - Derived demand
The landed cost includes which of the following: - Answers - A cost to produce at
source, to transport a product to its destination, and any ancillary expenses
Trucks exclusively serve 80 percent of the delivery locations in US. Only 20 percent of
the delivery locations can be served by two or more transportation modes. We should
conclude that trucks have a competitive advantage over the modes in which of the
following service components of freight demand? - Answers - Accessibility
,Domestic water carriers can transport entire buildings such as grain elevators or major
structures such as container cranes. No other domestic transportation mode can move
such large items. Domestic water carriers have a competitive advantage over other
transportation modes in which of the following service components of freight demand? -
Answers - Capability
Physical distribution refers to what part of a company's supply chain? - Answers -
Outbound finished goods
The integration of materials management and physical distribution resulted in what we
know as logistics. This integration enabled logistics managers to: - Answers -
Coordinate inbound and outbound transportation to minimize back hauls and lower
rates
Which of the following statements is TRUE regarding the relationship between
transportation and inventory? - Answers - The length and variability transportation
transit times affect both safety and cycle stock
We can consider supply chain management to be: - Answers - An extended enterprise
that crosses the boundaries of multiple firms
The underlying logic for the integration of multiple functions within logistics was: -
Answers - The systems concept
Throughout this course, we will make references to the terms logistics and supply chain
management. Which of the following statements is true regarding the relationship
between these two terms? - Answers - Logistics focuses on product and information
flows whereas supply chain management encompasses these flows and includes others
such as financial.
In the 21st century, the transportation system faces significant challenges. Special
interest groups will place increased demands on the system for specialized services
and access. One of these special interest groups is: - Answers - Senior citizens that
require public transit to access medical and other services
The percent of total disposal income spent on transportation by the average US
household is: - Answers - 16 to 20 percent
(17 percent)
Current thought has identified five modes of transportation. These modes include all of
the following EXCEPT: - Answers - Electrical transmission lines
The growth of civilizations is directly associated with the development of transportation
systems. Which of the following transportation developments is associated with the
development of the US? - Answers - Construction of the Erie Canal to link the Green
Lakes trade to the Hudson River and the East coast.
,The modal split refers to: - Answers - An analytic tool that divides the transportation
market for passengers or freight by use or volume by transportation mode
The concept of derived demand suggests: - Answers - The demand for transportation is
derived from the demand for goods.
During the pre-industrial stage of transport evolution, maritime transport was the most
convenient way to move freight and people. The amount of freight moved by maritime
transport during this stage was: - Answers - Negligible due to the slow speed and
limited capacity of ships
This change in propulsion technology had the greatest effect on maritime trade and
supported large volumes of freight to be moved between countries. - Answers - The
conversion from coal to oil to power steam ships
Massive modifications of transport systems occurred during the industrial stage of the
evolution of transport. These modifications took place during two phases. These phases
were the development of: - Answers - Canal and rail systems
Location theory concentrates on examining two problems. These two problems are: -
Answers - What patterns of location develop and where to market to maximize profit.
Several economists have proposed theories to explain location patterns over time. One
theory proposed that perishable items or items with a high value to density ratio would
be located closest to the city center while items with a low value density ratio would be
produced far from the city center. Which of the following proposes this explanation for
location patterns? - Answers - Von Thünen's concentric rings
This concept suggest an area will produce the goods or services for which it is best
suited. For example, some regions have specialized in the manufacture of textile or
apparel products. Which of the following incorporates this concept? - Answers -
Comparative advantage
Transportation costs are believed to have an effect on the size of a market that can be
effectively served by a firm. Beyond the market reach, either the landed cost is too high
or competitors' prices are lower. One theory proposes that if a firm could cut
transportation costs in half, the market area served by the firm would become four times
as large. Which of the following applies this relationship to explain market reach? -
Answers - Larder's law
The authors define supply chain management as the management of several flows
across the supply chain. Which of the following is NOT identified as a supply chain
process in the text? - Answers - Logistics
, The focus of physical distribution was: - Answers - On the systems cost and cost trade-
offs associated with the outbound flow of goods from a firm
The underlying logic of the systems concept was also the rationale for the development
of the logistics concept because: - Answers - Cost trade-offs in addition to the value or
demand aspects of customer service effectiveness are considered
The bullwhip effect refers to fluctuations in supply and demand which may result from: -
Answers - Uncertainty regarding inventory levels and demand in a supply chain
Supply chain management can be viewed as: - Answers - The pipeline for the efficient
flow of goods, services, information and financials from the source of supply to the end-
user
A supply chain is: - Answers - An extended enterprise that crosses the boundary of
several firms to span their related activities
Logistics has continued to evolve since WWII; however, several variables have
introduced new challenges for managing logistics across the supply chain. These
variables include: - Answers - Internet, globalization, business alliances, and technology
Reverse logistics refers to: - Answers - The flow of returns, times for repair, recyclables,
etc from downstream members to upstream supply chain trading partners
Which of the following statements best describes the three stages in the evolution of the
supply chain concept? - Answers - Supply chain management has evolved from the
concepts of physical distribution, then the integration of physical distribution and
materials management into logistics, with the third stage being supply chain
management.
Supply chain management can be characterized as: - Answers - An extended enterprise
that permits the coordination of activities across the boundaries of multiple firms
The authors suggest that the concept of supply chain management represents the third
phase of an evolution that began in the 1980s. The supply chain concept occurring in
the third phase differs from the earlier phases by: - Answers - Viewing the total system
of interrelated companies as a means to affect a product's price-value in the
marketplace employing the systems concept to understand the interrelationship
between logistics functions and to more effectively manage cost trade-offs to minimize
total cost
The authors of the course textbook suggest that supply chain management: - Answers -
Integrates product, information, and cash flows among organizations
The logistics concept evolved from: - Answers - The integration of physical distribution
and materials management
