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test-bank-for-supply-chain-management-a-logistics

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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 fl ... ow 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 Coyle Supply Chain Management: A Logistics Perspective, 9th Edition Chapter 2 Test Bank 2-2 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 utilizing the network to fulfill customer requests in a timely manner. This is a a. definition from an inventory perspective. b. general definition. c. definition offered by the Society of Logistics Engineers. d. a definition provided by the Council of Logistics Management. ANSWER: b, Pages 38-39 12. All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list: a. transportation b. marketing c. scheduling d. forecasting ANSWER: b, Page 38 13. The value that is added to goods through a manufacturing or assembly process is: a. form utility b. place utility c. time utility d. possession utility ANSWER: a, Page 39 14. Which of the answers below is an example of the creation of form utility by a logistics activity? a. when lumber is cut and made into a chair b. when a firm's finance manager approves customer purchases on a credit basis c. when Dell combines components with software to produce a computer to a customer’s specifications d. the breaking bulk and repackaging at a distribution center [Show More]

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