Question 1

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

Accepted Answer

Facility location decisions involve weighing various factors such as cost, proximity to customers, availability of resources, etc. The importance assigned to each factor often varies, depending on the specific business and its goals. Therefore, facility location decisions are not necessarily made using analytical techniques that weigh all variables equally.

Question 2

Large areas of the world are not directly accessible with this mode.

Accepted Answer

Large areas of the world, especially landlocked regions, are not directly accessible by water (ship) as they require access to a coastline or navigable waterways.

Question 3

Size of the product, weight, and liquid or bulk can all be accommodated with this mode.

Accepted Answer

The answer of Size of the product, weight, and liquid...

Question 4

Logistics is a fairly small part of the U.S. gross domestic product. In 2017, it accounted for only 2 percent of GDP.

Accepted Answer

Logistics is a significant part of the U.S. economy, accounting for a larger portion of the GDP than 2%. In 2017, it was estimated to be around 7.5% to 8% of the GDP, reflecting the importance of transportation, inventory, and warehousing services in the economy.

Question 5

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

Historical cost is not a criterion that influences manufacturing plant or warehouse facility location decisions. The other options listed are all important factors to consider when making location decisions. Proximity to customers can reduce transportation costs and provide better customer service, the infrastructure of a country can affect the ease of shipping and receiving goods, the quality of labor can impact productivity and efficiency, and the business climate can affect taxes, regulations, and other factors that influence the costs and ease of doing business.

Question 6

No packaging is needed and the costs per mile are low with this mode.

Accepted Answer

Pipelines require no packaging for the materials they transport, such as oil and natural gas, and they have low costs per mile compared to other modes of transportation.

Question 7

Environmental regulations are about the same regardless of the location chosen.

Accepted Answer

Environmental regulations vary by country, state, and even city, so the location chosen can have a significant impact on the specific regulations that must be followed.

Question 8

In a hub-and-spoke system, each warehouse in the system acts as a spoke.

Accepted Answer

In a hub-and-spoke system, the central warehouse acts as the hub, while the smaller distribution points or warehouses act as the spokes.

Question 9

DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party logistics companies the way Federal Express does.

Accepted Answer

DHL and United Parcel Service (UPS) also function as third-party logistics providers, offering a range of logistics and supply chain services similar to Federal Express (FedEx), including warehousing, distribution, and transportation services.

Question 10

Logistics is the process of coordinating and moving material and other resources from one country to another.

Accepted Answer

Logistics is the process of coordinating and moving material and other resources within a country or region, not necessarily from one country to another.

Question 11

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

Gross national product is a measure of a country's economy and is not a criteria that directly influences manufacturing plant or warehouse facility location decisions. The other choices - suppliers, free trade zones, political risk, and total costs - are all factors that are commonly taken into consideration when making facility location decisions.

Question 12

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Accepted Answer

Immigration rules do not typically influence manufacturing plant or warehouse facility location decisions. The other factors listed (government barriers, trading blocs, environmental regulation, and quality of labor) are all common criteria that are considered in facility location decisions.

Question 13

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

Accepted Answer

The statement is true, as simple point-rating schemes do not take into consideration the wide variance of costs that may occur within each factor used in the analysis, which can lead to incorrect plant location decisions.

Question 14

A third-party logistics company is a firm that manages all or part of another company's product delivery operations.

Accepted Answer

A third-party logistics company, commonly called a 3PL, is a company that offers logistics services to other companies, typically as an outsourced partner. These services can include transportation, warehousing, distribution, and other supply chain management functions.

Question 15

Small, light, expensive items are most appropriate for this mode of transportation.

Accepted Answer

Air transportation is most suitable for small, light, expensive items as it allows for quick delivery and saves time. It also provides a secure mode of transportation for valuable items.

Question 16

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Accepted Answer

Cross-docking is a logistics practice where products received at a warehouse or distribution center are not stored but instead are immediately prepared for shipment to another location, reducing storage time and costs. It is not specifically related to international shipping or port utilization.

Question 17

Services typically have multiple site locations to maintain close contact with customers.

Accepted Answer

Services such as banks, retail chains, and healthcare providers often have multiple site locations to maintain a physical presence close to their customers. This allows for easier customer access and enhances the customer experience.

Question 18

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

Accepted Answer

Hub-and-spoke systems involve consolidating inbound shipments at a central location (the hub), and then cross-docking those shipments onto outbound vehicles that make direct deliveries to their final destinations (the spokes). Therefore, hub-and-spoke systems combine the concepts of consolidation and cross-docking.

Question 19

This is a fairly low-cost alternative, but transit times can be long and may be subject to variability.

Accepted Answer

The answer of This is a fairly low-cost alternative, but...

Question 20

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.

Accepted Answer

Cross-docking is a commonly used approach in consolidation warehouses, where large shipments are received and sorted to create smaller shipments for delivery to different locations.

Quiz 15: Logistics, Distribution, and Transportation

Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.

Large areas of the world are not directly accessible with this mode.

Size of the product, weight, and liquid or bulk can all be accommodated with this mode.

Logistics is a fairly small part of the U.S. gross domestic product. In 2017, it accounted for only 2 percent of GDP.

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

No packaging is needed and the costs per mile are low with this mode.

Environmental regulations are about the same regardless of the location chosen.

In a hub-and-spoke system, each warehouse in the system acts as a spoke.

DHL and United Parcel Service are transportation companies that are prohibited from functioning as third-party logistics companies the way Federal Express does.

Logistics is the process of coordinating and moving material and other resources from one country to another.

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?

A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.

A third-party logistics company is a firm that manages all or part of another company's product delivery operations.

Small, light, expensive items are most appropriate for this mode of transportation.

Cross-docking is a practice used in the international shipping industry that facilitates port utilization.

Services typically have multiple site locations to maintain close contact with customers.

Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.

This is a fairly low-cost alternative, but transit times can be long and may be subject to variability.

Cross-docking is an approach used in consolidation warehouses, where large shipments are broken down into small shipments for local delivery in an area.