SCM Exam 4 Study Flashcards

The work of logistics involves ______.

transportation, inventory, order processing, warehousing, and facility network design

The goal of logistics is to

support procurement, manufacturing, and customer accommodation

In 2016 US business logistics costs represented what portion of Gross Domestic Product (GDP)?


Facility network design is concerned with which of the following?

How many buildings, the location of them, and the ownership structure

Logistical operations have two main flows: ______.

inventory and information

Which one of these concepts is not part of logistical integration objectives?Variance reduction.Inventory reduction.Using less parcel shipping.Responsiveness

Using less parcel shipping

Logistics is ______.The process that links supply chain participants into integrated operationsthe catalyst of activity between different supply chain functional areas such as procurement and warehousinga critical component to supply chain successconcerned with getting the right product to the right place at the right time, at minimum cost


Performance cycle uncertainty has the following trait: ______.

The larger the variance to the desired goal, the greater the impact

Total Cost Logistics Model takes into consideration ______.

All expenditures necessary to perform logistic requirements

Echelon logistics operating arrangements accomplish which of the following?

Utilize warehouses to create inventory assortments and achieve consolidation economies.

Total Cost Logistics Model takes into consideration ______.

all expenditures necessary to perform logistical requirements

The logistics value proposition is ______.

the unique commitment of a firm to an individual or customer group

Logistics systems should be designed to achieve customer service goals while maintaining lowest possible financial investment in ______.


The 80/20 rule, often called the Pareto principle means: ______.

20% of the SKU base will drive 80% of the demand

Supply chain synchronization attempts to achieve which of the following?

Coordinate multiple firms activities across the supply chain.

Declining transport rates per unit of weight as the weight shipped increases represents ______.

economy of scale

The Jones Company learned that several other shippers located in its hometown had customers located in the same markets it serves. With this information, Jones could find it advantageous to investigate the potential of ______.

Pooled delivery consolidation

There is increasing consolidation for the major logistics and supply chain service providers. Which of the following is the major justification for this consolidation?

To offer a broad platform of integrated services

Which of the following are the major reasons for supply chain outsourcing?

To take advantage of operational economies of scale, allow firm to outsource non core activities, provide more flexibility involving capacity

Which of the following transportation modes is the best for end-to-end delivery?


Which of the following is NOT a driver of consolidation in the third-party logistics industry?

Manufacturing Capability

An organization that provides non-asset-based global network, inbound and outbound optimization is generally characterized as ______.

freight forwarder

f you want the consignee to be responsible for goods while they are in-transit you should ship products ______.

To FOB origin

Economic regulation of transportation includes all the following, EXCEPT ______.

regulation of drivers

Which of the following is not an example of transportation safety regulation?

Modifying the braking and lighting systems on trucks.

Which of the following is not a characteristic of a global supply chain?

Increased standardization

The tapering principle of transportation rates suggests that ______.

transportation charges increase at a decreasing rate with distance traveled

To facilitate classification of a large variety of different items being shipped on a single invoice or order, a traffic manager may want to consider ______.

class rates

Which of the following modes of transportation has high fixed and low variable costs?


The majority of the laborers for 3PL and 4PL organizations are typically ______.


When a firm "spot stocks" inventory they are engaged in ______.Multiple Choice

placing inventory in a local warehouse in anticipation of future need

Which type of material handling system typically has the highest fixed cost and the lowest variable cost?


One function of a distribution warehouse is consolidation, which means the facility is being used to ______.

group small inbound shipments into one large outbound shipment

A firm that supports an automotive assembly plant by providing just-in time inventory is engaged in ______.


A firm that groups small shipments for delivery to a retail mall is doing ______.

pooled delivery

When orders are shipped directly to the customer, it is called ______.


Which of the following is not an objective of industrial packaging?


Which of the following material handling systems offers the most flexibility?

Information directed

Which of the following is not a benefit of public warehousing?

Typically unionized

Public warehouses typically have ______.

low fixed and high variable cost

Best warehousing practice is to ______.

allow the fast moving product to move quickly through the warehouse

Which of the following is the rationale for plastic packaging?Sustainability.Protection from dropping.Lower transportation cost.

All of the choices are correct.