IB 439 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026
These current business characteristics have increased the need for better management of the
suppliers who provide goods and service to the organization EXCEPT - Answers reduced risk
The ISM defines Supply Management at the identification, acquisition, access, positioning,
management of _______ and related ______ the organization needs or potentially needs in the
attainment of its _______ objectives. - Answers resources, capabilities, strategic
which of the following statements is a reason to purchase a product from an external supplier? -
Answers insufficient capacity
which of the following statements is a reason to manufacture a product in house? - Answers
better control of costs
development and management of supplier relationships to acquire goods and services in a way
that aids in achieving the immediate needs of the business - Answers strategic sourcing
there are 3 primary procurement strategies, these strategies are listed below EXCEPT - Answers
low cost supplier prioritization (correct ones are supplier integration, value management,
volume consolidation)
the ____________ analysis extends the breakeven analysis. It does not only consider purchase
cost. It also considers qualitative factors and other quantitative factors. - Answers total cost of
ownership
materials with HIGH supply risk and HIGH profit impact are categorized as - Answers strategic
items
many alternative products and services, many sources of supply, low value, small individual
transactions and everyday use - Answers non critical items
Trent & Monczka article presents the characteristics of outstanding global sourcing initiatives.
These characteristics are listed below EXCEPT - Answers informal and non structured
approaches to communication
in terms of importance of warehousing to overall operations, indicate which one of the following
statements answers the question: why do companies primarily hold inventories - Answers to
achieve transportation economies
by looking at the graph below, identify which one of the following options correctly describes
the relationship between cost components and the number of warehouses - Answers 1. facility
cost 2. inventory cost 3. transportation cost
indicate which of the following factors DOES NOT affect the decision regarding warehousing
size - Answers type of transportation mode used
, as customer service levels increase, requirements for warehousing space - Answers increase
as inventory turns increase, requirements for warehousing space - Answers decrease
__________________ is an operational strategy where product is received in a facility, generally
combined with other products going to the same destination and then shipped at the earliest
opportunity without going into long term storage - Answers cross docking
warehousing has different functions in typical logistics systems, the picture below is an
example of - Answers break bulk
warehousing has different functions in typical logistics systems. one service benefit is _______,
typically used to support customer accommodation. under this concept, select inventory is
positioned in a local market in anticipation of responding to customer need during high sales
period - Answers spot stocking
warehouse operations provide three important functions. indicate from the list below which one
IS NOT one of these functions - Answers promotion and advertising
the effective use of a warehouse if influenced by - Answers all of the alternatives are correct
challenges for the transportation industry include these statements except - Answers excess
capacity
identify which transportation mode is the best in each of the following categories: speed,
availability, dependability, capability, frequency - Answers air, truck, pipeline, water, pipeline
in 2019, most of the freight shipments within the US were performed by - Answers truck
indicate which of the following statements best describes the primary reason for performing
intermodal shipments - Answers because intermodal movements combine the cost and service
advantages of two or more modes balancing trade offs
all of the following are important when determining product freight costs EXCEPT - Answers
product aesthetics
market related factors such as the _______________ are examples of economic drivers that
influence transportation costs - Answers degree of competition
as you increase shipment size, transportation unit costs ($ per pound) - Answers decrease in a
non linear way
________________ is a holistic process focused on managing distribution operations -
mode/carrier selection, load tendering, tracking, scheduling and payment in a manner which
ensures shared risk and beenfits for all parties involved - Answers collaborative transportation
management
These current business characteristics have increased the need for better management of the
suppliers who provide goods and service to the organization EXCEPT - Answers reduced risk
The ISM defines Supply Management at the identification, acquisition, access, positioning,
management of _______ and related ______ the organization needs or potentially needs in the
attainment of its _______ objectives. - Answers resources, capabilities, strategic
which of the following statements is a reason to purchase a product from an external supplier? -
Answers insufficient capacity
which of the following statements is a reason to manufacture a product in house? - Answers
better control of costs
development and management of supplier relationships to acquire goods and services in a way
that aids in achieving the immediate needs of the business - Answers strategic sourcing
there are 3 primary procurement strategies, these strategies are listed below EXCEPT - Answers
low cost supplier prioritization (correct ones are supplier integration, value management,
volume consolidation)
the ____________ analysis extends the breakeven analysis. It does not only consider purchase
cost. It also considers qualitative factors and other quantitative factors. - Answers total cost of
ownership
materials with HIGH supply risk and HIGH profit impact are categorized as - Answers strategic
items
many alternative products and services, many sources of supply, low value, small individual
transactions and everyday use - Answers non critical items
Trent & Monczka article presents the characteristics of outstanding global sourcing initiatives.
These characteristics are listed below EXCEPT - Answers informal and non structured
approaches to communication
in terms of importance of warehousing to overall operations, indicate which one of the following
statements answers the question: why do companies primarily hold inventories - Answers to
achieve transportation economies
by looking at the graph below, identify which one of the following options correctly describes
the relationship between cost components and the number of warehouses - Answers 1. facility
cost 2. inventory cost 3. transportation cost
indicate which of the following factors DOES NOT affect the decision regarding warehousing
size - Answers type of transportation mode used
, as customer service levels increase, requirements for warehousing space - Answers increase
as inventory turns increase, requirements for warehousing space - Answers decrease
__________________ is an operational strategy where product is received in a facility, generally
combined with other products going to the same destination and then shipped at the earliest
opportunity without going into long term storage - Answers cross docking
warehousing has different functions in typical logistics systems, the picture below is an
example of - Answers break bulk
warehousing has different functions in typical logistics systems. one service benefit is _______,
typically used to support customer accommodation. under this concept, select inventory is
positioned in a local market in anticipation of responding to customer need during high sales
period - Answers spot stocking
warehouse operations provide three important functions. indicate from the list below which one
IS NOT one of these functions - Answers promotion and advertising
the effective use of a warehouse if influenced by - Answers all of the alternatives are correct
challenges for the transportation industry include these statements except - Answers excess
capacity
identify which transportation mode is the best in each of the following categories: speed,
availability, dependability, capability, frequency - Answers air, truck, pipeline, water, pipeline
in 2019, most of the freight shipments within the US were performed by - Answers truck
indicate which of the following statements best describes the primary reason for performing
intermodal shipments - Answers because intermodal movements combine the cost and service
advantages of two or more modes balancing trade offs
all of the following are important when determining product freight costs EXCEPT - Answers
product aesthetics
market related factors such as the _______________ are examples of economic drivers that
influence transportation costs - Answers degree of competition
as you increase shipment size, transportation unit costs ($ per pound) - Answers decrease in a
non linear way
________________ is a holistic process focused on managing distribution operations -
mode/carrier selection, load tendering, tracking, scheduling and payment in a manner which
ensures shared risk and beenfits for all parties involved - Answers collaborative transportation
management
