SCMN 3710 EXAM 1 QUESTIONS WITH
100% CORRECT ANSWERS
The grid technique is used to determine a fixed facility location that represents the least-
cost center for moving incoming materials and outbound product within a geographic
grid. This least cost center is also referred to as - Answer-a center of gravity.
What type of change may suggest a need to reevaluate and/or redesign a firm's
logistics network? - Answer-All of these
-change in corporate ownership
-change in customer service requirements
-shifting locations of customer and/or supply markets
The classic objective of a network design model has been - Answer-to establish the
number, location, and size of finished goods distribution centers and associated product
flows.
Effective order management can have an impact on - Answer-all of these answers
(improving ROA, increasing revenues, reducing supply chain costs)
The decision to alter the supply chain process is essentially ___________issue. -
Answer-an optimization
Which of the following is NOT an element of Order Management? - Answer-optimizing
mode mix
The "product mix/assortment" problem refers to rapidly increasing costs as a result of -
Answer-trying to serve the last 1-3 percent of customer demand with ever increasing
inventory
Which country is not one of the three top recipients of exports from the United States -
Answer-India
What is the effect of tapering rates on facility location? - Answer-pulls the location
toward the source or the market
As the nuber of stocking points (DCs) is decreased in a distribution network, fixed costs
will ______ and variable costs will _____. - Answer-decrease, decrease
,The time that elapses from when a company receives an order until it gets paid for
delivering the order is called the: - Answer-Order to cash cycle
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. - Answer-None of these answers ( This is still true and has not changed,
Computerization has greatly increased the flow of information from the source, The "Big
Box" stores have developed their own sources)
The Supply Chain Concept - Answer-developed from the previous Physical Distribution
concept
Which of these flows only one way as illustrated in Figure 1-4? - Answer-None of these
answers (financials, products and services, information)
A(n) _______ relationship exists between the cost of lost sales and inventory cost -
Answer-inverse
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
SQ: In the short run, the firm's network is _________ while in the long run it is
________. - Answer-fixed, variable
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, -
Answer-executives from other areas in the company are also aware of such needs but
to a lesser degree
The purpose of this chapter (Ch. 5) is to - Answer-all of these answers (discuss how
supply chain metrics are developed, offer methods for classifying supply chain metrics,
develop quantitative tools to show how metrics can be linked to financial performance)
The three prerequisites that must be satisfied for goods to move "naturally" from areas
of surplus to areas of shortage are that the change in total value is greater than the
change in total cost, ________ , and __________ . - Answer-market conditions exist,
government does not prohibit
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
100% CORRECT ANSWERS
The grid technique is used to determine a fixed facility location that represents the least-
cost center for moving incoming materials and outbound product within a geographic
grid. This least cost center is also referred to as - Answer-a center of gravity.
What type of change may suggest a need to reevaluate and/or redesign a firm's
logistics network? - Answer-All of these
-change in corporate ownership
-change in customer service requirements
-shifting locations of customer and/or supply markets
The classic objective of a network design model has been - Answer-to establish the
number, location, and size of finished goods distribution centers and associated product
flows.
Effective order management can have an impact on - Answer-all of these answers
(improving ROA, increasing revenues, reducing supply chain costs)
The decision to alter the supply chain process is essentially ___________issue. -
Answer-an optimization
Which of the following is NOT an element of Order Management? - Answer-optimizing
mode mix
The "product mix/assortment" problem refers to rapidly increasing costs as a result of -
Answer-trying to serve the last 1-3 percent of customer demand with ever increasing
inventory
Which country is not one of the three top recipients of exports from the United States -
Answer-India
What is the effect of tapering rates on facility location? - Answer-pulls the location
toward the source or the market
As the nuber of stocking points (DCs) is decreased in a distribution network, fixed costs
will ______ and variable costs will _____. - Answer-decrease, decrease
,The time that elapses from when a company receives an order until it gets paid for
delivering the order is called the: - Answer-Order to cash cycle
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. - Answer-None of these answers ( This is still true and has not changed,
Computerization has greatly increased the flow of information from the source, The "Big
Box" stores have developed their own sources)
The Supply Chain Concept - Answer-developed from the previous Physical Distribution
concept
Which of these flows only one way as illustrated in Figure 1-4? - Answer-None of these
answers (financials, products and services, information)
A(n) _______ relationship exists between the cost of lost sales and inventory cost -
Answer-inverse
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
SQ: In the short run, the firm's network is _________ while in the long run it is
________. - Answer-fixed, variable
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, -
Answer-executives from other areas in the company are also aware of such needs but
to a lesser degree
The purpose of this chapter (Ch. 5) is to - Answer-all of these answers (discuss how
supply chain metrics are developed, offer methods for classifying supply chain metrics,
develop quantitative tools to show how metrics can be linked to financial performance)
The three prerequisites that must be satisfied for goods to move "naturally" from areas
of surplus to areas of shortage are that the change in total value is greater than the
change in total cost, ________ , and __________ . - Answer-market conditions exist,
government does not prohibit
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
