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Worksheetsscmt 2013 9-12
Total questions: 83
Worksheet time: 44mins
In the future, how is the heterogeneity of products on a given truckload expected to change?
It is not expected to change.
It is expected to increase.
It is expected to decrease.
The long tail of demand refers to an increased _____________________________.
Number of distribution points
Number of suppliers
Number of store employees
Number of SKUs
Transportation is a key part of retailers' strategies to ________________________________.
Build bigger stores
Bridge the physical and digital environments
Sell a lower number of SKUS
Eliminate all inventory
What percentage of total GDP does transportation account for?
1%
9%
5%
12%
At the economy level, the price of transportation is ______________. At the carrier level, it is __________________.
Elastic, inelastic
Inelastic, elastic
Elastic, elastic
Inelastic, inelastic
In the U.S., which is largest in terms of ton miles moved?
Rail
Motor carriage
Water
Air
In China, what product dominates rail movements?
Food
Coal
Water
Lumber
In the U.S., which is NOT a type of water transportation category?
Coastal
Plains
Lake
Inland
Why might starting an LTL carrier be even more difficult than starting a TL carrier?
The distances traveled are shorter.
The capital investment required is much greater.
The tractors are more expensive.
The number of trailers required is higher.
In the U.S., which mode represents the largest total spend?
Rail
Motor carriage
Water
Air
What can be used to determine the classification in which a product fits?
Harmonized tariff
Export and import manual
Control rules
Routing documents
How is the capacity of ocean liners typically measured?
Ton miles
TEUs
Linear footage
NVOCC
Which type of firm is an intermediary between an ocean carrier and a shipper?
NVOCC
Importer
Freight Auditor
Customs agent
Which country is the world's second largest exporter of merchandise?
Russia
Germany
United States
Brazil
What has happened to the percentage of the population employed in manufacturing since the 1940s?
It has dramatically decreased.
It has dramatically increased.
It has not changed much.
What has happened to the total percentage of GDP associated with manufacturing since the 1940s?
It has dramatically decreased.
It has dramatically increased.
It has not changed much.
As the transit time increases, what happens to the in-transit inventory cost?
Increase
Decrease
Stays the same
If the cost of capital for a firm increases, what do you expect happens to the in-transit inventory carrying cost?
In-transit inventory carrying cost increases.
In-transit inventory carrying cost decreases.
In-transit inventory carrying cost stays the same.
If lead time is constant, certain and always the same, then the cost of safety stock must be considered when calculating total inventory cost.
True
False
_______________ is the time between when an order is placed and when it is received and becomes available for use.
Lead time
cycle time
Inventory life cycle
None
If a buyer has a choice between carriers who offer the same price, which inventory-related costs should be considered? (Check all that apply)
In-transit inventory costs
Safety stock costs
Item cost
Cycle stock costs
How does the in-transit carrying cost % typically relate to the inventory carrying cost % when the inventory is stored in a warehouse?
In-transit carrying cost % is typically lower than the warehouse inventory carrying cost %.
In-transit carrying cost % is typically higher than the warehouse inventory carrying cost %.
In-transit carrying cost % is typically higher than the warehouse inventory carrying cost %.
To estimate average in-transit inventory, the transit time (days) should be multiplied by the ________________________________.
Item cost
Setup cost
Annual demand rate
Daily demand rate
Generally, total annual cost = set up cost + holding cost + safety stock cost + average in-transit inventory cost.
True
False
When comparing two different carriers or modes of transportation, there are probably two major differences; cost and service.
True
False
Annual transit cost is a function of which two items?
Setup cost and the transit rate
Safety stock and the transit rate
Annual demand and the transit rate
Daily demand and the transit rate
Which of the following are true? (Mark all that apply.)
If a company is using a truckload carrier, then the transportation rate should not be considered when calculating the EOQ.
If a company is using a truckload carrier, then the transportation rate should not be considered when calculating the EOQ.
If a company is using LTL, then the transportation rate should not be considered when calculating the EOQ.
If a company is using LTL, then the transportation rate should be considered when calculating the EOQ.
If using truckload transportation, which aspects of total cost are affected?
Transit cost
Setup cost
Cycle stock cost
In-transit inventory cost
Safety stock cost
To take into account the effects of transportation on total cost, we replace item cost (C) with item cost plus transit rate (C + Cm)
in the total annual cost equation.
True
False
If using truckload transportation, which aspects of total cost are affected?
Transit cost
Safety stock cost
Cycle stock cost
Cycle stock cost
Annual transit cost is a function of which two items?
Daily demand and the transit rate
Safety stock and the transit rate
Setup cost and the transit rate
Annual demand and the transit rate
If using truckload transportation and the transit rate increases, what do you expect should happen to the company's order quantity?
The order quantity should increase.
The order quantity should decrease.
The order quantity should stay the same.
If using truckload transportation, which aspects of total cost are affected?
Cycle stock cost
In-transit inventory cost
Transit cost
Safety stock cost
When comparing two different carriers or modes of transportation, there are probably two major differences; cost and service.
True
False
How does postponement likely affect forecast accuracy?
It increases forecast accuracy.
It reduces forecast accuracy.
Forecast accuracy stays the same
Which is an innovative example of postponement?
Breakpack operations
3D printing
E-commerce
Consolidation
What are primary motivations for choosing to do business globally?
The company wants to sell their products in global markets.
The company wants to avoid taxation.
The company eventually wants to relocate its headquarters.
The company wants to produce globally to sell domestically.
Which of the following is a factor in how much tariff a firm must pay when importing a product, such as men's pants?
Which company imported the product
Which company exported the product
From which country the product was imported
At which port the shipment was received
Which are reasons why a product, like jeans, might be produced in multiple countries?
Order quantities
Transportation efficiencies
Labor specialization
Agreements between countries (e.g., free trade agreements)
Which of the following are generally true? (Mark all)
As a firm's degree of globalization increases, is potential for outsourcing internal capabilities for gain advantage with product design increases.
As a firm's degree of globalization increases, unit production costs increase
Tariffs are the taxes that countries levy on imports from other countries.
Tariffs are the taxes that countries levy on exports to other countries.
Which are reasons why doing business in China may be challenging? (Check all that apply)
Relationships with the government are different.
Relationships between business partners are different.
How carriers are used may be different.
Products must be exactly the same.
Which factor to business strategy is usually more important in China than in the U.S.?
Branding
Environmental awareness
Understanding customers
Government relations
Which capability is even more important when doing business globally?
Agility
People skill
Branding
Forecasting competence
Reasons to do business globally include ___________.
I. Access to new markets
II. Access to new or needed products
III. Decrease transportation cost
IV. Decrease manufacturing cost
I & III
I, II & IV
I, II, III
All of the above
Which of the following can be a big problem for U.S. companies when doing business internationally, such as in India and China?
Time zone differences
Food differences
Weather differences
Transport equipment differences
Which if any of the following statements are true. Mark all that are.
Practicing postponement can be advantageous from both an inventory and forecasting standpoint.
Postponement adds flexibility and agility to manufacturing and distribution processes.
Practicing postponement is probably a losing strategy given the rapid advances in technology.
When a company makes finishing touches to a product close to its original point of manufacture, it is practicing postponement.
As the number of touch-points in a global supply chain increase, which of the following is likely true?
Lead time remains constant.
Lead time variability increases.
Lead time variability decreases.
Lead time decreases.
If a company shifts from domestic to offshore production, which of the following statements is/are likely to be true?
Transit costs remain constant.
Transit costs remain constant.
Safety stock costs remain constant.
In-transit costs decrease.
As the degree of globalization increases, which cost is most likely to increase?
Item cost
Transportation cost
Production cost
Materials cost
Which of the following statements are true. Mark any that are.
Studies have shown that, in some cases, long lead times due to global sourcing lead to increased retailer markdowns of products.
Generally, as the degree of a firm's global sourcing increases, time to deliver product goes up, meaning that less safety stock is required.
For retailers like Zara, it is cheaper to produce their products in Spain from a total cost perspective even though the labor costs are high, because of gains in agility.
As a firm "reshores"—moving production from offshore to domestic—generally it would require less safety stock held in its supply chain.
Applying the total cost concept within logistics often means trying to account for intangible costs, such as markdowns or lost sales.
True
False
What is the primary meaning of postponement?
Speed up
Delay
Stay the same
Regulation
Which of the following is TRUE?
Most transportation management systems today emphasize mode selection at the expense of other capabilities.
The TMS is not an appropriate tool for carrier selection. Selecting carriers should be based solely on the relationship between the shipper and the carrier.
Both (a) and (b) are true.
Neither (a) nor (b) are true.
______________ is choosing the most appropriate form of transportation.
Tendering & dispatching
Consolidation
Sequencing
Mode selection
What is a benefit of consolidation?
Maximizing the utilization of the transportation unit.
Minimizing the unit purchasing cost.
Reducing picking costs.
Reducing transportation lead-time.
______________ is the TMS ability to decide which shipment to tender first.
Consolidation
Tendering & dispatching
Mode selection
Sequencing
Which of the following is TRUE?
Some transportation management systems help in auditing the freight bills.
There are cloud-based transportation management systems available nowadays.
Transportation management systems generally can improve on mode selection.
All of the above are TRUE
______________ is making a shipment available to a specific carrier.
Tendering & dispatching
Consolidation
Sequencing
Mode selection
______________ is pulling together shipments that are going to the same geographic area.
Tendering & dispatching
Mode selection
Sequencing
C
In today's retail environment, consumers can check for product availability at _____________?
the manufacturer
the warehouse
the retailer
both b and c
What is one of the most important operational aspects of a WMS?
The cost of the software.
The quantity of the information/data.
The software provider.
The accuracy of the information/data.
_______ is a process which allows one company to send information to another company electronically rather than using paper.
EDI
WMS
ERP
RFID
What technology may be used by the warehouse to keep accurate information on incoming items?
Forecasting algorithms.
Picking optimization.
Demand signal repository.
Radio frequency identification.
ERP systems may include what kinds of capabilities?
Order management
Inventory
Forecasting
All of these
What technology may be used by the warehouse to keep accurate information on incoming items?
Radio frequency identification.
Forecasting algorithms.
Demand signal repository.
Picking optimization.
Which of the following is FALSE?
RFID is more efficient than the barcode.
A cloud based warehouse management system is less flexible than owning and hosting a server.
A good picking system also routs the worker to pick the items in a warehouse.
A cloud based warehouse management system allows the company to scale up and down efficiently.
In a warehouse management system, records must be maintained for each item in stock showing:
The quantity on hand and shipped.
The quantity on hand and received.
The quantity on hand, received, and shipped.
The quantity received and shipped.
In regards to warehousing, what is picking?
Taking and collecting items in a specified quantity before shipment to satisfy customers' orders.
Organizing the inventory within a warehouse so that it allows for easy access.
Maximizing the utilization of the forklift in the warehouse through economies of density.
None of these.
The more complex the end item, the ___________ the Bill of Materials Explosion.
Bigger
faster
slower
Smaller
What is MRP?
A requirement that specifies the lowest quantity of a certain product that a supplier is willing to sell.
A method for forecasting the supply of materials needed in a manufacturing process.
A list of the suppliers that provide materials that are required to build a product.
A production planning, scheduling, and inventory control system mainly used to manage manufacturing processes
Which MRP system input element specifies how many, and when, the firm plans to produce each end inventory item?
Inventory file
MOQ
Master production schedule
Bill of materials
Which of the following is TRUE?
It is not necessary to have all component parts on hand before commencing a manufacturing process for an assembly.
A production planning, scheduling, and inventory control system mainly used to manage manufacturing processes is called MRP.
A "bill-of-materials explosion" refers to breaking apart each assembly or sub-assembly into its component parts.
All of the above are true.
Which of the following statements about MRP systems are TRUE?
The MPS is a time-phased plan that shows when sub-components are required.
The lowest quantity of a certain product that a supplier is willing to sell is known as their MOQ.
A BOM contains a listing of only the most important materials needed to produce an item.
All of these.
In MRP, what is the listing of all the sub-assemblies and components needed to produce a unit of an end item called?
Master Schedule
Bills of material
Master production schedule
Material requirements plan
In an MRP system, component demand is _____________:
Not relevant since end user demand is given.
computed from suppliers' minimum orders.
forecasted from end user demand.
calculated by the MRP system from the master production schedule.
Why is it difficult to implement DRP in a retail environment?
DRP is computationally intensive.
DRP requires huge amounts of computer memory.
Retailers tend to have a lot of SKUs.
All of these.
Given that a manufacturer has implemented and integrated an MRP but not DRP, which of the following is TRUE?
Demand at the factory level is independent (forecast).
Forecasts are based on end-demand.
Component demand is calculated based on independent demand
All of these.
From a manufacturer's perspective, in what "direction" is DRP focused?
Downstream in the supply chain.
Upstream in the supply chain.
Horizontally across suppliers.
All of these.
Inventory requirements of a manufacturer that is part of a distribution requirements planning system are typically calculated from:
forecasted end demand of the downstream partners.
historical data from downstream partners.
historical data from upstream partners.
forecasted end demand of the upstream partners.
What question does MRP answer when implemented in the manufacturing process?
What components need to be available?
When to schedule sub-assemblies?
What is the lowest possible product level to maintain?
All of these.
MRP and DRP are time-based planning systems. What is the significance of "time" in these systems?
Both specify exactly when products are required to be available.
It takes a lot of time to do this kind of planning.
The timing of end-demand is known.
All of these.
From a manufacturer's perspective, in what "direction" is MRP focused?
Downstream in the supply chain.
Upstream in the supply chain.
Horizontally across suppliers.
All of these
Why is it difficult to implement DRP in a retail environment?
DRP is computationally intensive.
DRP requires huge amounts of computer memory.
Retailers tend to have a lot of SKUs.
All of these.
