Question 1

The manufacturers of Prada handbags have determined that their chief priority for choosing a transportation mode within North America is transit time.However,this must be tempered by practical cost considerations.In light of these considerations,what should Prada handbags use to ship the bags?

Accepted Answer

Motor carriers are not as fast as airplanes,but they are less expensive,particularly when dealing with a bulky product like onions.

Question 2

A strike by dockworkers at West Coast ports paralyzed transportation of goods across the Pacific Ocean and left manufacturers short of component parts and Asian importers with excess inventory.
-Refer to Strike.Because the ships could not be unloaded even though water transportation is typically highest in this criterion,what did the strike create?

Accepted Answer

Capability refers to the ability of the carrier to provide the appropriate goods and equipment for moving those goods.

Question 3

What is one major advantage of pipelines over other modes of transportation?

Accepted Answer

Pipelines are rarely interrupted by weather,traffic,or labour disputes.

Question 4

Which of the following provides time utility to buyers and sellers and aids manufacturers in managing supply and demand?

Accepted Answer

Storage provides time utility to both buyers and sellers as it allows them to store goods until they are needed or until demand picks up. It also allows manufacturers to manage supply and demand by storing excess inventory during times of low demand and releasing it during times of high demand. Distribution and channelization refer to the methods of getting goods to the customer, while direct sourcing refers to purchasing goods directly from the manufacturer without intermediaries.

Question 5

With which of the following does a manufacturer or supplier uses an independent third party to manage an entire function of the logistics system,such as transportation,warehousing,or order processing?

Accepted Answer

Contract logistics is the choice where a manufacturer or supplier uses an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing. Private warehousing is the storage of goods in a facility owned by the company itself. Direct sourcing involves purchasing goods directly from the manufacturer. Freight forwarding is the coordination of shipment and transportation of goods. None of these choices involve the use of an independent third party to manage a complete logistics function.

Question 6

Which of the following moves inventory into,within,and out of a warehouse?

Accepted Answer

A materials-handling system is designed to move inventory into, within, and out of a warehouse. It includes all the equipment, procedures, and personnel needed to transport, store, and handle goods throughout the warehouse. An inventory control forwarder is responsible for managing inventory levels and ensuring that products are in stock. A multichannel system refers to an organization's ability to sell products through multiple channels, such as online, in-store, and over the phone. A freight forwarder is a third-party logistics provider that arranges the transportation of goods from one location to another.

Question 7

The direct electronic transmission,from computer to computer,of standard business forms between two organizations is classified as which of the following?

Accepted Answer

Direct electronic transmission of standard business forms between two organizations is known as electronic data interchange (EDI). Just-in-time inventory refers to a system of inventory management where a company only acquires goods as they are needed in the production process. Real-time inventory is a system where inventory is continuously updated and tracked in real time. Direct sourcing refers to the procurement of goods and services directly from the manufacturer or supplier, without the use of intermediaries.

Question 8

A newspaper article on supply chain management discusses the importance of lean production.Which role in supply chain management will the article focus on?

Accepted Answer

Another name for just-in-time manufacturing is lean production.

Question 9

Which mode of transportation provides the most accessibility?

Accepted Answer

Motor carriers (trucks)can go to more locations than any of the other modes of transportation.

Question 10

What is the goal of any effective materials-handling system?

Accepted Answer

The goal of any effective materials-handling system is to move items quickly with minimal handling, thereby reducing the time and cost of transportation and processing. Optimizing the inventory control system and reducing the length of time a product is in the transportation subsystem are important factors but not the primary goal of a materials-handling system.

Question 11

What is another name for just-in-time production?

Accepted Answer

Just-in-time production is also commonly known as lean production.

Question 12

Working with FedEx,Volvo set up a warehouse with a complete stock of truck parts.A dealer needing a part for an emergency phones a toll-free number,and the part is delivered by FedEx within 24 hours.What is Volvo using?

Accepted Answer

With outsourcing,a company would use an independent third party to operate some or all of its logistics system.

Question 13

A manufacturer of sewing machines has decided to implement just-in-time manufacturing.What can the manufacturer expect?

Accepted Answer

Just-in-time manufacturing is based on receiving the parts from suppliers at the assembly line at the time of installation.

Question 14

What is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's needs?

Accepted Answer

An inventory control system is a method used by manufacturers or businesses to ensure they have enough products or materials to meet their needs. This system helps to maintain appropriate levels of inventory to ensure there are no stockouts or overstocks of products. It involves managing the flow of goods through a business, including the ordering, receiving, storing, and tracking of products. This can help to optimize manufacturing processes, improve customer service, and ultimately improve profitability.

Question 15

Hewlett Packers offers a wide range of services for its business customers including warehousing,inventory management,packaging,and other value-added services.Which type of solutions are these?

Accepted Answer

The services the company provides are all logistical.

Question 16

Which of the following describes the situation when raw materials arrive at the assembly line in guaranteed working order,and finished products are generally shipped to the customer immediately after completion.

Accepted Answer

The situation described is characteristic of just-in-time manufacturing, where raw materials are delivered as needed to minimize inventory and finished products are quickly shipped to customers to reduce lead time. Electronic data interchange, value-added channelization, and contract logistics do not necessarily imply this type of production and logistics management approach.

Question 17

ZuTech makes sensitive monitors for measuring exposure to hazardous materials.ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse and shipping docks.What should ZuTech install to reduce the number of times an item is moved in the warehouse?

Accepted Answer

The goal of the materials-handling system is to move items quickly with minimal handling.

Question 18

What is the goal of inventory control?

Accepted Answer

Inventory decisions affect physical distribution costs and service levels.The goal is to balance minimum inventory levels while meeting customer needs for stock.

Question 19

A strike by dockworkers at West Coast ports paralyzed transportation of goods across the Pacific Ocean and left manufacturers short of component parts and Asian importers with excess inventory.
-Refer to Strike.This paralysis would have had a more adverse impact on companies using which of the following?

Accepted Answer

With JIT,inventory parts are delivered as they are needed in production.The loss of these deliveries would cause production to cease.

Question 20

In which logistical component of the supply chain will you find distribution resource planning (DRP)a common feature?

Accepted Answer

Distribution resource planning (DRP) is a function of inventory control, as it involves the planning and management of inventory levels across various distribution channels and warehouses to ensure that products are delivered to customers in a timely and efficient manner. DRP helps to optimize inventory levels, reduce stockouts, and improve customer service levels by planning and coordinating inventory movements in response to demand signals. Therefore, the best choice is D, inventory control, as DRP is a common feature of this logistical component of the supply chain.

Quiz 12: Marketing Channels and Supply Chain Management