Indicate whether the statement is true or false. Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a less competitive environment.

Indicate whether the statement is true or false. 3. It is not difficult to find and train high-quality personnel for DC operations.

Indicate whether the statement is true or false. 4. Inventory management is not as important as it once was due to other factors that have come into play.

Indicate whether the statement is true or false. 5. The Customs Trade Partnership Against Terrorism (C-TPAT) was put in place to assess the vulnerability of U.S. ports and to deny entry to ships from countries that do not meet U.S. security standards.

Indicate whether the statement is true or false. 6. KPIs cannot be used in connection with distribution center activities as they do not provide tangible, relevant data.

Indicate whether the statement is true or false. 7. The reorder point depends on the orders in-house at that time.

Indicate whether the statement is true or false. 8. While the total world population has been increasing on an absolute basis, the rate of increase has declined.

Indicate whether the statement is true or false. 9. One of the primary tradeoffs at the facility level is space versus equipment.

Indicate whether the statement is true or false. The Regional Trade Agreements, the establishment of the General Agreement on Tariffs and Trade (GATT), and its 1995 successor, the World Trade Organization (WTO) have together led to multilateral trade promotion and lowered barriers to international business transactions.

Globalization has had little effect on consumers.

Ordering cost refers to the expense of placing an order for additional inventory and does not include the cost or expense of the product itself.

From a customer service perspective, one of the four important characteristics for global market and strategy is that companies need to attempt to standardize to reduce complexity, but they have to recognize that global markets need some customization.

Supply and demand has become less volatile as managers have become more adept at controlling the elements.

JIT, MRP, and MRP II all incorporate some version of the basic EOQ model into their philosophies.

The ABC analysis is based on Pareto's law.

Order accuracy and order completeness are the same.

Contract warehousing is different than 3PL warehousing.

JIT was developed in the U.S. and copied by the Japanese.

The drawback of centralized inventory is the long distance to customers, which typically extends lead times and results in higher transportation costs.

Honda and Toyota only manufacture automobiles in Japan.

WMS is more than a simple database that provides stock location information.

Tariffs and other trade barriers have been significantly reduced among many countries, allowing a much more competitive global economy.

When establishing a distribution strategy, the first and most obvious consideration is the product.

The central theme behind the theory of Comparative Advantage is that if one country has an advantage (lower cost) in the production of two products, they should focus on the production of both so that they gain the greatest advantage and trade when compared to other countries that may have a lesser advantage.

Reduced order cycle time has become an important part of supply chain management since it can lead to lower inventory levels for customers, improved cash flow, lower current assets, and accounts receivable.

After the layout of the operations is determined, attention shifts to the facility size of the operations within the distribution operation.

A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply.

In comparison with the basic EOQ approach, the fixed interval model does not require close surveillance of inventory levels.

The first facility consideration is to determine the size of each operation within the network.

Proper product slotting can improve labor productivity and generate other advantages for the organization and its customers.

The underlying logic of Adam Smith's theory was used to advance the rationalization that he called specialization of labor.

Inventory plays a dual role in organizations. Inventory impacts the cost of goods sold as well as supporting the balance sheet, a new concept only recently receiving attention.

It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfer.

Cross-docks typically increase transportation costs.

A common productivity is measured as the ratio of real output to real input.

Product handling functions include both receiving and shipping.

Customers use distribution KPIs to objectively assess the speed of service provided by the distribution operation.

The scope and magnitude of trade flows between the United States and other countries have grown considerably in the last several decades.

MRPII will not allow an organization to integrate financial planning with operations and logistics.

MFN stands for Many Foreign Nationals.

U.S. ports can play a role in global supply chains since over 50 percent of global trade passes through them.

Slotting is defined as the placement of product in a facility for the purpose of optimizing materials handling and space efficiency.

Supply chain managers no longer need to worry about suboptimization in light of today's technology.

Capital cost is also called interest or opportunity cost.

The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily.

The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs 24 hours before delivery to a port or 24 hours before vessel departure.

Outsourcing is a fairly new concept.

A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.

"Batching economies" and "cycle stocks" are the same.

Asset utilization is very important in a 3PL warehouse.

EOQ can only be used for "push" inventory.

Efficiency of distribution facilities and networks is not nearly as critical as their speed.

From a customer service perspective, one of the four important characteristics for global market and strategy is technology companies counteract short product lifecycle with continual upgrades and new products.

JIT is often used to force inventory back up the pipeline and therefore does not reduce inventory.

Operating globally has become easier to accomplish for even individuals and small companies, because of the advances in information/communications technology.

One could argue that the external role of technology in recent years has moved ahead of globalization as an agent or driver of change.

Purchase economies and transportation economies are not complementary.

Organizations may benefit substantially from the establishment of one or several warehouses to reduce transportation costs.

Storage space costs are not variable.

Strategies such as compression and lean supply chains take the same amount of work to achieve in the global environment as in the domestic environment.

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.

Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?

The key financial consideration in choosing between private and 3PL distribution options is:

Identify the proper sequence of the three "flows" in the supply chain.

Performance measurement is important because:

Dependent demand relates to:

_____, _____, and _____ are the top three recipients of exports from the United States, in that order.

If a DC that picks primarily cases switches to mostly broken cases (with the same items), which of the following would occur in the DC?

Capital cost focuses on the cost of capital tied up in _____ and the resulting lost opportunity from investing that capital elsewhere.

Which country is not one of the three top recipients of exports from the United States?

Which two countries account for approximately 36% of the total world population?

The roles of the distribution center include _____

ABC analysis uses a single criterion to classify SKUs from most important to least important.

The drawback of centralized inventory is:

Which of the following is not one of the essential factors for economic growth and increased development of global trade flows?

Logistics, in its simplest form,

WIP inventories:

The top ten countries account for almost "X"% of the total world population.

The Supply Chain Concept:

One important interaction that must be considered is the tradeoff between distribution and _____

As Q decreases for EOQ, the cost per order:

Perpetual inventory systems are required for any EOQ model having _____ demand while periodic inventory systems are used for EOQ models having _____ demand.

A downside of direct shipping is:

The primary facility operations focus is:

This type of inventory is influenced by the reliability of demand and lead time.

Complexity in the supply chain is caused by:

The two largest cost centers in a DC are:

The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs _____ hours after delivery to a port.

The first facility consideration is to determine:

Where is a megacity most likely to develop?

A critical outcome of the supply chain is to deliver:

Outsourcing involves:

A DRP system is usually coupled with a _____ system in an attempt to manage the flow and timing of both inbound materials and outbound finished goods.

Which one of the countries below is not part of NAFTA?

Cost/value refers to:

One of the major challenges of supply chain management is: