SupplychainManagementquizB

1Unifi,theleadingU.S.makerofsyntheticyarn,sharesproductionschedulingandqualitycontrol
informationdailywithDupont,aprincipalsupplierofrawmaterials.DupontispartofUnifi's:

A) supplychain.

B) servicecontinuum.

C) demandchannel.

D) materialshandlingchannel.

E) derivedsupply.
2Amarketingexpertdescribeda__________aslookinglikeabutterfly.Themanufactureristhe
bodyofthebutterflywithmanydifferentsuppliersaccumulatedononesideofthebodyforthe
leftwingandalargenumberofbuyerscollectedontheothersidetoformtherightwing.

A) logisticalflow

B) demandchain

C) materialshandlingfacility

D) supplychain

E) retailercooperative
3 __________istheintegrationandorganizationofinformationandlogisticsacrossfirmsina
supplychainforthepurposeofcreatinganddeliveringgoodsandservicesthatprovidevalueto
consumers.

A) Supplychainmanagement

B) Logisticsmanagement

C) Pointtopointmanagement

D) Justintimemanagement

E) Costeffectiveflow
4Whatisthefirststepinchoosingasupplychain?

A) developinganumbrellamissionstatement

B) understandingthecustomer

C) makingsurethemembersofthesupplychainharmonizewiththeorganizational
culture

D) creatingaunifyinginterorganizationalstrategy

E) determiningwhatthecompetitionisdoing
5 Bombardiermakescorporatejetsanditsstrategyinvolvesstreamliningproductionactivities,
maintainingitsreputationforquality,andreducingitscosts.IthasdevelopedtheContinental,an
airplaneassembledfromjustadozenlargecomponentparts(notcountingrivets).Whilebuilding
planeswithsubassembliesisnotnew,Bombardieristhefirsttonotuseverticalintegration.All
partsaresuppliedbycarefullychosenindependentcompaniesthatsharethedevelopmentcosts
andmarketrisk.Intermsofitssupplychain,Bombardierhas

A) lengtheneditssupplychainunnecessarily.

B) Implementedajustintimematerialshandlingpolicy.

C) createdamarketingchannel.

D) harmonizeditssupplychainanditsstrategy.

E) usedaproductionrepositioningstrategy.

6 The objective of logistics managementin a supply chain is to delivermaximumcustomer

serviceandto:

A) minimizerelevantlogisticscosts.

B) minimizeemployeeproductivity.

C) minimizeshareholder'sreturnoninvestment.

D) minimizeemployeelayoffs.

E) maximizeemployeewages.
7 Winemaker Robert Mondavi Corp. buys satellite images from NASA to spot problems in its
vineyardsandaimstopushthoseimagesoutovera(n)__________toitsindependentgrowers
thisyear.Mondaviwillhelpgrowersavoidvineyardproblemsandimprovethegrapesitbuys.

A) Extranet

B) customizedsearchengine

C) electronicdownloadableinformation(EDI)

D) customizeddatabasemanagementsystem

E) entrepreneurialInternet
8 Supply chain manufacturers balance total logistics cost factors against customer service
factors.Whichofthefollowingisanexampleofoneofthetotallogisticscostfactors?

A) conveniencecosts

B) time

C) stockoutcosts

D) communicationcosts

E) alloftheabove
9 With which customer service factor are quick response and efficient consumer response
deliverysystemsmostcloselyrelated?

A) time

B) dependability

C) inventorycosts

D) communication

E) convenience
10 Thefourkeylogisticsfunctionsinasupplychaininclude:

A) distribution,transportation,communication,andinformation.

B) transportation, inventory management, customer service, and distribution

relationships.

C) distributionrelationships,communication,transportation,andorderprocessing.

D) transportation, warehousing and materials handling, order processing, and

inventorymanagement.

E) information management, logistics management, customer service, and

distributionrelationships.
11 Celarix.comisabusinessentitythatmonitorsandcalculatestariffsandexchangerates
forsmallcompaniesthatshipexporttheirproducts.Celarixisanexampleofa:

A) materialshandlingexpert.

B) Contentprovider.

C) Freightforwarder.

D) thirdpartylogisticsprovider.

E) logisticsmanager.
12 Whichofthefollowingstatementsaboutrailroadsistrue?

A) Railroadscarrybulkyitemsoverfairlylongdistances.

B) Railroadsapplytheunittrainconcepttointermodaltransportation.

C) Railroadroutesaremoreextensivethanwatercarriersorpipelines.

D) Railroadsarearelativelylowcostmodeoftransportation.

E) Alloftheabovestatementsaboutrailroadsaretrue.
13 Whichofthefollowingstatementsaboutaircarriersistrue?

A) Onedisadvantageofaircarriersisthereisnodoortodoordelivery.

B) Therearespaceconstraintlimitationsastowhatcanbetransportedinplanes.

C) This method of transportation is especially effective for goods that are

timesensitive.

D) Air carriers are commonly used for perishable flowers, clothing, and electronics
parts.

E) Alloftheabovestatementsaboutaircarriersaretrue.
14 William"Gus"PagonisisanexecutivevicepresidentatSearsandoverseesthesystemsthe
retailer depends on to make 5,000 home deliveries per day and move 250,000 truckloads of
goodseveryyear.With30largedistributioncentersand90smalleroutlets,it'sPagonis'sjobto
supply 100,000plus products to more than 2,000 Sears stores. When asked to describe the
retailer'sdistributioncenters,Pagoniswouldmostlikelysay,

A)"Justlikeothercompanies,Searsspendsmoremoneyondistributioncentersthan
anyotherelementofitssupplychain."

B) "Oursuccessisduetothecentralizationofourdistributioncenters."

C)"Becauseourdistributioncentersaresoefficient,theyaretheleastexpensivepart
ofoursupplychain."

D)"Weuseourdistributioncenterstofacilitatesortingandconsolidatingproducts
fromdifferentsuppliers."

E) "Distributioncentersarethemostimportantelementofourorderprocessing."
15 Modesoftransportationaretypicallyevaluatedonthebasisofallofthefollowingcriteria
EXCEPT:

A) Accessibility. B) perishability.

C) frequency. D) capability. E) dependability.

16 TransCanadaPipeLines,anaturalgastransmissionanddistributioncompany,launchedan
advertisingcampaigninnationalCanadiannewspapersandthecountry'smajordailiestoeducate
people about what pipelines do and where they fit into the economics of the community. The
advertisingmighthavetoldCanadiansthatpipelines:

A) areexpensivetouse.

B) haveahighdegreeofreliability.

C) areweathersensitive.

D) rankhighintermsofaccessibility.

E) areaccuratelydescribedbyalloftheabove.
17 The Danishflagged Carsten Maersk can carry enough merchandise packed in containers
thatwhenthey are laid end to end, thecontainers would stretch27 miles. Whenit reaches its
destination, the containers will be removed from the ship and loaded onto trucks and railcars.
Thisisanexampleof:

A) Piggyback. B) freightforwarding.

C) Intermodaltransportation. D) anexportagent.

E) anefficientconsumerdeliverysystem.
18 Traditionally,storeshavecarriedinventoryto:

A) preventstrikesorproductshortages.

B) providebetterserviceforthosecustomerswhowishtobeservedondemand.

C) eliminateforecastinguncertainty.

D) terminateproductioneconomies.

E) avoidpurchasingandtransportationdiscounts.
19 AlbertoCulverCanadaisthenumberthreeproviderofhaircareproductsinCanada.Itfirst
setupoperationindowntownEtobicoke,Ontarioin1961.By1966,ithadtomoveitsfacilityto
theedgeoftownsothatitwasclosertoitsrawmaterialssuppliersand,thus,wouldbeableto
operatewithverylowinventoriesandrequiressupplierstomakefastontimedeliveries.In1966,
AlbertoCulverCanadaimplementeda:

A) justincaseconcept.

B) justintimesystem.

C) deliveryondemandconcept.

D) expeditedinventorymanagementsystem.

E) distributioncenter.
20 Reverselogisticsis:

A) theprocessofreclaimingrecyclableandreusablematerials,returnsandreworks
fromthepointofconsumptionoruseforrepair,remanufacturingordisposal.

B) an inventory supply system that operates with very low inventories and requires
fastontimedelivery.

C) a practice that involves unloading products from suppliers, sorting products for
individual stores, and quickly reloading products on trucks, which will deliver the products to
specificstores.

D) organizing a costeffective flow of raw materials, inprocess inventory, finished

goods,andrelatedinformationfrompointoforigintopointofconsumptiontosatisfycustomer
requirements.

E) the process of moving goods over short distances into, within, and out of
warehousesandmanufacturingplants.

1 Logisticsismostcloselyrelatedtowhichelementofthemarketingmix?
a.product b.production c.place d.promotion e.price
2 Logistics management is organizing the costeffective flow of raw materials, inprocess
inventory, finished goods, and related information from pointoforigin to pointofconsumption
to:
a.satisfycustomerrequirements.
b.createmaximumprofit.
c.maintainorganizationalculture.

d.eliminateallcompetition.
e.noneoftheabove.
3Afirmneedstodrivedownlogisticscostsaslongasitcandeliverexpected:
a.balancesheetresults.
b.customerservice.
c.lowlevelsofexpenses.
d.productmarketsynergies.
e.targetmarketgoals.
4Whichofthefollowingstatementsdescribeshowasupplychaindiffersfromamarketing
channel?
a.Acommunicationismoreimportantinthemarketingchannelthaninthesupply
chain.
b.Themarketingchannelplacesmoreemphasisoncosteffectivenessthanthesupply
chain.
c.Asupplychainincludessuppliersthatproviderawmaterialinputstoamanufacturer.
d.Amarketingchannelincludessuppliersthatproviderawmaterialinputstoa
manufacturer.
e.Thereisnodifferencebetweenthetwo.
5Whatisthefirststepinchoosingasupplychain?
a.developinganumbrellamissionstatement
b.understandingthecustomer
c.makingsurethemembersofthesupplychainharmonizewiththeorganizational
culture
d.creatingaunifyinginterorganizationalstrategy
6Whichofthefollowingistrueofsupplychains?
a.Allsupplychainsusecrossdocking.
b.Thereisonebestmodelofasupplychainthatworksforeverycompany.
c.Thebestsupplychainisindependentofthecompanymarketingstrategy.
d.Supplychainsdontneedtoconsidertheneedsofconsumers.
e. Supply chain managers often need to make tradeoffs between efficiency and
responsiveness.
7Inlogisticsdecisions,totallogisticscostincludes:
a.orderprocessing.
b.materialshandlingandwarehousing.
c.transportation.
d.inventoryandstockouts.
e.alloftheabove.
8Theoutputofasupplychainis__________:
a.servicedeliveredtocustomers.
b.assurance,reliability,flexibility,andtangibles.
c.tangibles,dependability,responsiveness,andflexibility.
d.time,assurance,responsiveness,andtangibles.
e.convenience,flexibility,time,andempathy.
9 ProLogis is a leading provider of distribution facilities and services with 237.2 million square

feetin1,759distributionfacilitiesin68marketsinNorthAmerica,EuropeandAsia.Itmanages
warehousingandmaterialshandlingformanydifferenttypesofmanufacturers.ProLogisisa:
a.freightjobber.
b.freightforwarder.
c.rackjobber.
d.thirdpartylogisticsprovider.
e.wholesaler.
10 Coal from the Powder River basin in Wyoming is cleanerburning than that found in other
areasoftheU.S.Asaresult,thereisdemandforthiscoalnationwide.Tomovethecoaltothe
restofthecountry,thebestmeansoftransportationtoemployis:
a.aircarriers.
b.motorcarriers.
c.watercarriers.
d.railroads.
e.pipelines.
11 Allintermodalapproacheshaveonethingincommon,whichis:
a.theyarealllessexpensivethansinglemodetransportation.
b.theyprovideprotectionagainstweathersensitivity.
c.theyaremorecostlythansinglemodetransportation.
d.theycombinedifferenttransportationmodestogetthebestfeaturesofeach.
e.theyusesomeformofcontainermovedbyrailroadforpartofthedistance.
12 Whichofthefollowingstatementsaboutaircarriersistrue?
a.Oneadvantageofaircarriersisdoortodoordelivery.
b.Thespeedofaircarriersmaycreatesavingsinlowerinventory.
c.Thismethodoftransportationisespeciallyeffectiveforpiggybacking.
d.Aircarriersarecommonlyusedformanufacturingequipmenttransfer.
e.Alloftheabovestatementsaboutaircarriersaretrue.
13Firmsthataccumulatesmallshipmentsintolargerlotsandthenhireacarriertomove
them,usuallyatreducedratesarecalled:
a.cargorepackagers.
b.intermodaltransporters.
c.airfreighttransporters.
d.materialhandlers.
e.freightforwarders.
14Whichofthefollowingisaproblemresultingfromtoolittleinventory?
a.Itoffersabufferagainstvariationsinsupplyanddemand.
b.Itmayresultinlossofmarketshare.
c.Itprotectsthefirmfromcontingenciessuchasstrikes.
d.Itprovidesahedgeagainstpriceincreasesbysuppliers.
15EsteLauderCompanies,Ltd.,istakingaproactiveroleinreducingtheamountof
returnedmerchandisedumpedinlandfillsbyreclaimingrecyclableandreusablematerials
byemploying:
a.crossdocking.
b.reverselogistics.

c.causerelatedmarketing.
d.vendormanagedinventory.
e.demarketing.