Test Bank For Supply Chain Logistics Management 4th Edition

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Test Bank For Supply Chain Logistics Management 4th Edition






2-1       A unique feature of integrated logistics is:

A – The newness of the concept

B – It is fundamental similar to military operations

C – Complexity and scope of operations**

D – The fact that it employees many people.


2-2       Basic logistics service is a concept that:

A – Describes the level of service provided all established customers**

B – Is involved in designing a network

C – Only involves availability

D – None of the above


2-3       A  logistics performance cycle is:

A – A format for improved measurement of cost and service.

B – The basic unit of supply chain design and operational control**

C – Is an important form of transportation measurement

D – Is typically echeloned


2-4       The term “Mother Facility” is often used to describe:

A – The oldest or original facility in a network

B – A facility that is dedicated to servicing a manufacturing facility

C – The source of money for college students

D – An inventory replenishment source for smaller facilities**


2-5       A flow through facility is:

A – Typically found in the beverage industry

B – Is also often called a cross-dock facility**

C – Is a specialized warehouse that performs value-added services

D – Dedicated to the support of an integrated service provider.


  • The “Pareto Principle” is:

A – Unique to logistical performance measurement

B – A concept developed in manufacturing to integrate logistics and procurement

C – Used in logistics to develop fine line inventory classification**

D – Seldom the result of logistics system design


2-7      Service reliability is best described as:

A – The measure of availability that is most critical in system design

B – Deals with speed and consistency of order cycle performance.

C – The quality dimension of logistics performance**

D – The key attribute of transportation integration


2-8       The primary reason that total logistics cost has reduced as a percentage of GDP is:

A – Inventory has increased as a percent of total cost

B – Inventory has decreased as a percent of total cost**

C – Transportation has decreased as a percent of total cost

D – Nominal GDP has increased


  • The work of logistics involves:

A – Order processing, inventory, and manufacturing

B – Inventory, transportation, manufacturing and procurement

C – Manufacturing, customer accommodation, and purchasing

D – Transportation, inventory, order processing, warehousing, and facility

network design**


  • The logistics performance cycle:

A – Is the basic unit of supply chain design and control**

B – Relates to transportation control

C – Is an important concept in inventory control

D – None of the above.


  • Logistics cost has declined as a percent of GDP over the past 25 years (True)


  • Service reliability involves logistical quality. (True)


  • Total cost was not typically the way managers viewed logistics prior to the 1960’s (True)


  • The logistics value proposition is based solely on cost minimization (False)


  • The work of logistics is all about transportation planning and execution (False)


  • Logistical system design is driven by careful integration of all operational components to minimize total cost (False)


  • Transportation cost drives a firm’s focus on speed and consistency (False)


  • Facility network design is the function of total cost minimization (False)


  • Procurement and manufacturing are an integral part of integrated logistics. (False)


  • Echeloned distribution structure facilitates direct delivery (False)


  • Logistics cost is greater than healthcare cost in the US (False)


  • Efficiency as contrasted to effectiveness is the primary goal of logistics (False)


  • Performance cycle uncertainty is a key concern in logistical operations (True)


  • The goal of cycle synchronization is achievement of planned time performance(True)


  • Performance Cycle variance is a prime determinate of safety stock(True)