Answers
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 _______ . -
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 -
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 - ANS differential value is high and total cost is low
The "most efficient frontier" on the TC-CSL graph is the line along which - ANS costs are at
the theoretical minimum for a given level of customer service
Complexity in the supply chain is caused by - ANS All of these answers: the number of SKUs,
locations of customers and suppliers, transportation requirements
Logistics, in its simplest form, - 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 -
ANS None of these answers: The "Big Box" stores have developed their own sources, This is
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, 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: - ANS Demand flow
Which of the answers below is an example of the creation of form utility by a logistics activity? -
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? - ANS heavily inbound
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 - ANS short run analysis
A ______ analysis examines a logistics system over a long time period or range of output. -
ANS dynamic
The utility that is created by moving goods from production points to market points where
demand exists is referred to as: - 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. - ANS Bonded warehouses
A demand-driven system is also known as - ANS a pull system
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