SCMN 3710 – FINAL EXAM
QUESTIONS AND ANSWERS
The primary tradeoffs and relationships between resources include the following
(D) - Answer- a. space vs. equipment
b. equipment vs. people
c. people vs. space
d. all of the above
Certain raw materials can be stored
(D) - Answer- a. anywhere.
b. upside down.
c. only in a 3PL facility.
d. outside.
The drawback of centralized inventory is:
(A) - Answer- a. that it extends lead times and results in higher transportation costs.
b. strains the ability of the carrier network.
c. that it increases the amount of inventory required.
d. that it undercuts the dispersed distribution concept.
The key financial consideration in choosing between private and 3PL distribution
options is
(D) - Answer- a. warehouse location(s).
b. type of product being handled.
c. competency of in-house staff.
d. volume of product being moved.
One important interaction that must be considered is the tradeoff between
distribution and ________
(B) - Answer- a. marketing.
b. transportation.
c. services.
d. finance.
The driving assumption of the "Load-Distance Analysis" method of warehouse floor
layout is that
(B) - Answer- a. wire-guided vehicles minimize internal movement costs.
b. there is a cost associated with distance travelled in the warehouse.
c. automation is superior to manual labor in the movement of items.
d. taller racks minimizes the distance travelled by items.
The purpose of "Storage Equipment" is to
(C) - Answer- a. maintain material integrity during movement.
b. handle material at a single location.
c. hold materials economically over time.
d. move material from one location to another in the DC.
, The "general objective" of materials handling is to create a productive, efficient, and
safe operation that balances
(A) - Answer- a. service and cost, volume and capacity, and safety and productivity.
b. customer needs and costs, safety and HAZMAT, and automation and manual
labor.
c. safety and productivity, volume and density, and speed and cost.
d. storage and speed, productivity and cost, and efficiency and service.
The context of a "Low Pick, High Store" environment where "Storage" dominates
would suggest equipment selection and warehouse design that favored
(D) - Answer- a. dedicated locations, low density storage and automated handling.
b. dedicated pick location, dual, low density storage; and manual handling.
c. high density storage and automated handling.
d. random locations, high density storage and manual handling.
The first step in the Strategic Analysis Design Framework (Hassan, 2002) focuses
on
(A) - Answer- a. specify the type/purpose of the facility.
b. design the docks and work spaces.
c. detailed layout of the aisles and spaces.
d. select the material handling equipment needed for the situation.
What advantage does the transit privilege give to shippers located at intermediate
locations?
(B) - Answer- a. the right to change consignees during shipment
b. a lower, long-distance through rate charged for the shipment
c. allows importers to enter a product and hold it without paying duties
d. avoidance of terminal charges for each intermediate stop
What is the effect of tapering rates on facility location?
(D) - Answer- a. pushes the raw materials sources toward the location
b. pulls the facility toward the location
c. makes the optimum location at the midpoint between raw material sources and the
marketplace
d. pulls the location toward the source or the market
The optimization model is based on
(D) - Answer- a. sampling experiments.
b. broad problem definitions.
c. rule of thumb approaches.
d. precise mathematical procedures.
Which is true regarding the facility/supply chain network design decision?
(D) - Answer- a. the facility's impact on other functional areas should be considered,
but it is not as important
b. global locations should not be considered
c. generally, qualitative criteria are considered first
d. it should be coordinated closely with the corporate and overall business strategies
that may be in place
QUESTIONS AND ANSWERS
The primary tradeoffs and relationships between resources include the following
(D) - Answer- a. space vs. equipment
b. equipment vs. people
c. people vs. space
d. all of the above
Certain raw materials can be stored
(D) - Answer- a. anywhere.
b. upside down.
c. only in a 3PL facility.
d. outside.
The drawback of centralized inventory is:
(A) - Answer- a. that it extends lead times and results in higher transportation costs.
b. strains the ability of the carrier network.
c. that it increases the amount of inventory required.
d. that it undercuts the dispersed distribution concept.
The key financial consideration in choosing between private and 3PL distribution
options is
(D) - Answer- a. warehouse location(s).
b. type of product being handled.
c. competency of in-house staff.
d. volume of product being moved.
One important interaction that must be considered is the tradeoff between
distribution and ________
(B) - Answer- a. marketing.
b. transportation.
c. services.
d. finance.
The driving assumption of the "Load-Distance Analysis" method of warehouse floor
layout is that
(B) - Answer- a. wire-guided vehicles minimize internal movement costs.
b. there is a cost associated with distance travelled in the warehouse.
c. automation is superior to manual labor in the movement of items.
d. taller racks minimizes the distance travelled by items.
The purpose of "Storage Equipment" is to
(C) - Answer- a. maintain material integrity during movement.
b. handle material at a single location.
c. hold materials economically over time.
d. move material from one location to another in the DC.
, The "general objective" of materials handling is to create a productive, efficient, and
safe operation that balances
(A) - Answer- a. service and cost, volume and capacity, and safety and productivity.
b. customer needs and costs, safety and HAZMAT, and automation and manual
labor.
c. safety and productivity, volume and density, and speed and cost.
d. storage and speed, productivity and cost, and efficiency and service.
The context of a "Low Pick, High Store" environment where "Storage" dominates
would suggest equipment selection and warehouse design that favored
(D) - Answer- a. dedicated locations, low density storage and automated handling.
b. dedicated pick location, dual, low density storage; and manual handling.
c. high density storage and automated handling.
d. random locations, high density storage and manual handling.
The first step in the Strategic Analysis Design Framework (Hassan, 2002) focuses
on
(A) - Answer- a. specify the type/purpose of the facility.
b. design the docks and work spaces.
c. detailed layout of the aisles and spaces.
d. select the material handling equipment needed for the situation.
What advantage does the transit privilege give to shippers located at intermediate
locations?
(B) - Answer- a. the right to change consignees during shipment
b. a lower, long-distance through rate charged for the shipment
c. allows importers to enter a product and hold it without paying duties
d. avoidance of terminal charges for each intermediate stop
What is the effect of tapering rates on facility location?
(D) - Answer- a. pushes the raw materials sources toward the location
b. pulls the facility toward the location
c. makes the optimum location at the midpoint between raw material sources and the
marketplace
d. pulls the location toward the source or the market
The optimization model is based on
(D) - Answer- a. sampling experiments.
b. broad problem definitions.
c. rule of thumb approaches.
d. precise mathematical procedures.
Which is true regarding the facility/supply chain network design decision?
(D) - Answer- a. the facility's impact on other functional areas should be considered,
but it is not as important
b. global locations should not be considered
c. generally, qualitative criteria are considered first
d. it should be coordinated closely with the corporate and overall business strategies
that may be in place
