Test bank supply chain management
CHAPTER 2 TEST QUESTIONS
True-False
1. The utility created through the basic marketing activities is known as place utility.
ANSWER: False, Page 40
2. Transportation is the physical movement or flow of goods.
ANSWER: True, Page 42
3. During the 1990s and 2000s, logistics costs as a percentage of gross national product declined.
ANSWER: True, Page 47
4. An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow.
ANSWER: True, Page 63
5. Acme Battery distributes its batteries to warehouses, where they are stored until ordered by a retailer. The warehouses are located close by the retail markets served. This is the logistics channel approach to logistics.
ANSWER: True, Page 66
6. In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.
ANSWER: False, Page 69
7. The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.
ANSWER: False, Pages 61-62
8. To hold down distribution cost, the lowest cost carrier should always be used.
ANSWER: False, Page 64
9. The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
ANSWER: True, Page 55
Multiple-Choice
10. Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer at the right cost, is which definition of logistics?
a. Seven Rs
b. Council of Logistics Management
c. Society of Logistic Engineers
d. supply chain logistics
ANSWER: a, Page 37 inside Table 2.1
11. Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and
True-False
1. The utility created through the basic marketing activities is known as place utility.
ANSWER: False, Page 40
2. Transportation is the physical movement or flow of goods.
ANSWER: True, Page 42
3. During the 1990s and 2000s, logistics costs as a percentage of gross national product declined.
ANSWER: True, Page 47
4. An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow.
ANSWER: True, Page 63
5. Acme Battery distributes its batteries to warehouses, where they are stored until ordered by a retailer. The warehouses are located close by the retail markets served. This is the logistics channel approach to logistics.
ANSWER: True, Page 66
6. In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement.
ANSWER: False, Page 69
7. The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis.
ANSWER: False, Pages 61-62
8. To hold down distribution cost, the lowest cost carrier should always be used.
ANSWER: False, Page 64
9. The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect.
ANSWER: True, Page 55
Multiple-Choice
10. Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer at the right cost, is which definition of logistics?
a. Seven Rs
b. Council of Logistics Management
c. Society of Logistic Engineers
d. supply chain logistics
ANSWER: a, Page 37 inside Table 2.1
11. Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and