Global Logistics and Supply Chain Management, 2nd Edition Mangan, Lalwani, Butcher, Javadpour Test B

Type:

Test Bank

Resource:

Global Logistics and Supply Chain Management

Edition:

2nd Edition

Author(s):

John Mangan Chandra Lalwani Tim Butcher Roya Javadpour

Quiz 1. Cargo is: a. Freight b. freight plus mail 2. The downstream end of a supply chain is: a. supplier end b. customer end 3. In the ‘unionist perspective’: a. logistics is a part of SCM b. SCM is a part of logistics 4. In the ‘traditionalist’ perspective: a. logistics is a part of SCM b. SCM is a part of logistics 5. Containerisation was first developed in: a. the 1950’s b. the 1970’s 6. A low value, high volume shipment has: a. a high transport cost penalty b. a low transport cost penalty 7. The term supply chain management was introduced around: a. the 1960s b. the 1980s 8. A supply chain is best understood as: a. a linear chain b. a multidimensional network 9. Effective transport deregulation typically aims to achieve (at least in theory): a. cost reduction b. service improvement c. both 10. Ethnocentricity involves: a. adopting the perspective only of the home country where its headquarters are located b. adopting the host country perspective c. the company not adopting any particular country perspective(s) 11. In the context of global logistics the acronym ‘TNC’ stands for: a. transnational corporation b. transnational competence

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12. Which type of company portrays more of a global identity: a. a transnational corporation b. a multinational company 13. Offshoring can be defined as: a. the transfer of specific processes to lower cost locations in other countries b. the transfer to a third party of the management and delivery of a process previously performed by the company itself 14. Geocentricity involves: a. adopting the perspective only of the home country where its headquarters are located b. adopting the host country perspective c. the company not adopting any one particular country perspective(s) 15. Craft production allows: a. high output volume with low output variety b. high output variety with low output volume 16. Another name for postponement is: a. delayed product design b. delayed product differentiation 17. An agile supply chain strategy works best with: a. short lead time, unpredictable demand b. short lead time, predictable demand 18. Another term used to describe the ‘functional’ nature of many organisations is: a. silo b. corporate 19. A leagile supply chain strategy works best with: a. long lead time, predictable demand b. long lead time, unpredictable demand 20. The consignee is: a. the company or individual who sends the consignment b. the company or individual who actually receives the shipment 21. The term NVOCC is an acronym for: a. non-vessel-owning common carrier b. non-vessel-operating common carrier 22. The term NVOCC: a. is associated with the activity known as groupage b. is not associated with the activity known as groupage

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23. How many groups of incoterms are there? a. Two b. Three c. Four 24. In the hierarchy of needs for freight purchasing decision makers will typically first consider which of the following issues: a. avoidance of risk b. price 25. Which of the following is correct? a. sourcing = procurement + purchasing b. procurement = sourcing + purchasing 26. The acronym ‘OEM’ stands for: a. original electronics manufacturing b. original equipment manufacturer 27. A higher score on the environmental separation index between an outsourcer and an outsourcee indicates: a. large differences in work practices, culture and perceptions between an outsourcer and an outsource b. small differences in work practices, culture and perceptions between an outsourcer and an outsource 28. Which of the following statements is correct? a. In order to be an order winner a factor must first be an order qualifier b. In order to be an order qualifier a factor must first be an order winner 29. The acronym ‘RFI’ as understood in the procurement process means: a. request for identification b. road freight information c. request for information

30. Very slow moving items of inventory are likely to be classified in an ABC inventory classification system as: a. ‘A’ items b. ‘B’ items c. ‘C’ items 31. The square root rule is concerned with: a. deciding how much inventory to re-order b. reducing total system inventory by reducing the number of locations within which inventory is held c. transit inventory

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32. In the economic order quantity (EOQ) model the following two sets of costs are considered: a. Inventory carrying costs and order set-up costs b. Inventory carrying costs and costs associated with inventory in transit c. Order set-up costs and sourcing costs 33. Inventory turnover is the ratio of: a. value of average inventory held throughout the year divided by cost of all goods sold in a year b. cost of all goods sold in a year divided by value of average inventory held throughout the year c. value of average inventory held throughout the year divided by value of all goods sold in a year 34. A JIT system is likely to be charcaterised by: a. frequent orders of small quantities b. less frequent orders of large quantities 35. Which of these is not a value-adding activity in warehousing? a. Break bulk b. Smooth supply c. Chase demand 36. Cross docking is: a. A process that bypasses storage b. A process that reduces materials handling c. A process that improves product quality 37. Which of these is the cause of the Houlihan Effect? a. Non-zero lead times and demand signal processing b. Order batching c. Rationing and gaming 38. Materials requirements planning (MRP) systems are used to: a. Plan and control orders with dependent demand b. Plan and control orders with independent demand c. Forecast demand 39. Which of these is not an information task performed by warehouse management systems (WMS)? a. Cycle counting b. Purchase order generation c. Pick accuracy confirmation 40. Warehouse technologies must be: a. More flexible than human operators b. The very latest technologies c. Fit for purpose

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41. Socio-technical systems (STS) theory considers four elements of an operation. Which is not one of these elements? a. Structure b. People c. Materials 42. Which of these is a fundamental principle of socio-technical systems (STS) theory? a. Automated warehouse systems b. Semi-autonomous teams c. Employee recruitment 43. Pick-to-voice technologies can be used to: a. Eliminate the need for warehouse operatives to read and write b. Eliminate the need for warehouse operatives to handle goods c. Eliminate the need for warehouse operatives to waste time talking to coworkers 44. The acronym ‘ITU’ stands for: a. Integrated transit unit b. Intermodal transport unit c. Integrated transport unit 45. When factory gate pricing is used who usually arranges transportation of the freight: a. The consignor b. The consignee c. The carrier 46. The acronym ‘FCL’ stands for: a. Final container load b. Full container load c. Final cargo load 47. Volumetric charging uses which of the following criteria to determine a freight rate: a. Dimensions b. Weight 48. Which of these is not a key driver of developing improved supply chain information systems? a. Information proliferation b. Information velocity c. Information sensitivity 49. Information visibility is: a. The ability to see information at various points across the supply chain b. The ability to transfer information between supply chain partners c. The ability to see all supply chain information on a single user interface 50. Electronic data interchange (EDI) is: a. A technology for the electronic interchange of data between two or more companies

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b. A technology for marketing products and services to customers c. A technology for managing suppliers 51. Radio frequency identification (RFID) offers: a. Improved product knowledge b. Remote communication of data c. Faster information reporting 52. Which of these is not a typical operational improvement offered by RFID? a. Shipment and item tracking b. Item tracking within a manufacturing plant c. Customer tracking within a retail store 53. Which of these statements is correct? a. Knowledge is gained from synthesising different information sources b. Data is gained from synthesising different information sources c. Information is gained from synthesising different knowledge sources 54. What type of exposure relates to exposure to potential financial loss as a result of trading in another currency: a. Transaction exposure b. Translation exposure 55. CVP analysis is: a. Cost, value, profit analysis b. Cost, volume, profit analysis c. Cash, value, profit analysis 56. The income statement is another name for: a. The balance sheet b. The profit and loss account c. The cash flow statement 57. Management accounting is sometimes called: a. Cost accounting b. Financial accounting 58. Which of these is a term used to describe the total costs associated with sourcing and receiving products from another location? a. Total logistics costs b. Total shipping costs c. Total landed costs 59. Benchmarking is: a. a method that enables companies to monitor their performance relative to the best-in-class b. a method that enables companies to set different KPIs to those of their competitors c. a method that enables companies to copy their competitors

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60. An ‘SLA’ is: a. a supplier location agreement b. a service level agreement c. a service location agreement 61. The acronym ‘CSI’ used in a logistics context stands for: a. Carrier Safety Initiative b. Container Security Initiative c. Carrier Security Implementation 62. The ability of a system to return to its original (or desired) state after being disturbed can be described as: a. Robustness b. Resilience 63. The Sarbanes-Oxley Act originated in: a. Europe b. Asia c. The US 64. Which of these is not a primary mode of integration within a supply chain? a. Internal integration b. Forward integration c. Systems integration 65. Supply chain integration is: a. A term that embodies various communication channels and linkages within a supply chain b. A term that describes how information technology linkages are established within a supply chain c. A term that illustrates the complexity and multiplicity of a supply chain 66. Which of these is not a stage along the journey to collaboration as defined by Spekman et al, (1998)? a. Coordination b. Cooperation c. Cohabitation 67. Collaboration is: a. enabled by integration b. the same as integration c. an enabler of integration 68. Vertical integration is: a. the collaboration between competitors and other supply chain actors b. the collaboration between suppliers and customers c. the collaboration between two third party logistics providers

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69. Which of these is not an enabler of improved supply chain collaboration? a. Supply base rationalisation b. Supplier development c. Supplier coercion 70. The transition to an advanced collaborative planning, forecasting and replenishment (CPFR) solution requires: a. A state-of-the-art information system to have been developed beforehand b. A long-term relationship to have been developed beforehand c. A detailed market analysis to have been developed beforehand 71. Which of these statements is correct? a. Supply chain collaboration cannot be achieved through information technology solutions alone b. Vendor managed inventory (VMI) is dependent upon decentralised supply chain control c. CPFR is not constrained by scale and complexity, when it is implemented 72. The acronym ‘RMA’ stands for: a. Return Material / Merchandise Activity b. Reverse Management of Assets c. Return Material / Merchandise Authorisation 73. Research suggests that the cost of processing a return can be: a. 2-3 times that of an outbound shipment b. One half to one third that of an outbound shipment 74. The maximum potential capacity of the latest generation of container ships is: a. 1,450 TEUs b. 14,500 TEUs c. 145,000 TEUs 75. Increased scale (such as larger container vessels) tends to: a. decrease the environmental impact of logistics activities per unit b. increase the environmental impact of logistics activities per unit 76. Effective supply chain management usually focuses upon a philosophy that concentrates on moving from: a. transactions to translations b. transactions to relationships c. relationships to transactions 77. Some commentators suggest that as much as what percentage of carbon savings are only achievable at the supply chain design stage: a. over 20% b. over 50% c. over 80% 78. The transportation model is an example of what category of modelling techniques:

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a. optimisation techniques b. simulation techniques

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Quiz 1. Cargo is: a. Freight b. freight plus mail 2. The downstream end of a supply chain is: a. supplier end b. customer end 3. In the ‘unionist perspective’: a. logistics is a part of SCM b. SCM is a part of logistics 4. In the ‘traditionalist’ perspective: a. logistics is a part of SCM b. SCM is a part of logistics 5. Containerisation was first developed in: a. the 1950’s b. the 1970’s 6. A low value, high volume shipment has: a. a high transport cost penalty b. a low transport cost penalty 7. The term supply chain management was introduced around: a. the 1960s b. the 1980s 8. A supply chain is best understood as: a. a linear chain b. a multidimensional network 9. Effective transport deregulation typically aims to achieve (at least in theory): a. cost reduction b. service improvement c. both 10. Ethnocentricity involves: a. adopting the perspective only of the home country where its headquarters are located b. adopting the host country perspective c. the company not adopting any particular country perspective(s) 11. In the context of global logistics the acronym ‘TNC’ stands for: a. transnational corporation b. transnational competence

1

12. Which type of company portrays more of a global identity: a. a transnational corporation b. a multinational company 13. Offshoring can be defined as: a. the transfer of specific processes to lower cost locations in other countries b. the transfer to a third party of the management and delivery of a process previously performed by the company itself 14. Geocentricity involves: a. adopting the perspective only of the home country where its headquarters are located b. adopting the host country perspective c. the company not adopting any one particular country perspective(s) 15. Craft production allows: a. high output volume with low output variety b. high output variety with low output volume 16. Another name for postponement is: a. delayed product design b. delayed product differentiation 17. An agile supply chain strategy works best with: a. short lead time, unpredictable demand b. short lead time, predictable demand 18. Another term used to describe the ‘functional’ nature of many organisations is: a. silo b. corporate 19. A leagile supply chain strategy works best with: a. long lead time, predictable demand b. long lead time, unpredictable demand 20. The consignee is: a. the company or individual who sends the consignment b. the company or individual who actually receives the shipment 21. The term NVOCC is an acronym for: a. non-vessel-owning common carrier b. non-vessel-operating common carrier 22. The term NVOCC: a. is associated with the activity known as groupage b. is not associated with the activity known as groupage

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23. How many groups of incoterms are there? a. Two b. Three c. Four 24. In the hierarchy of needs for freight purchasing decision makers will typically first consider which of the following issues: a. avoidance of risk b. price 25. Which of the following is correct? a. sourcing = procurement + purchasing b. procurement = sourcing + purchasing 26. The acronym ‘OEM’ stands for: a. original electronics manufacturing b. original equipment manufacturer 27. A higher score on the environmental separation index between an outsourcer and an outsourcee indicates: a. large differences in work practices, culture and perceptions between an outsourcer and an outsource b. small differences in work practices, culture and perceptions between an outsourcer and an outsource 28. Which of the following statements is correct? a. In order to be an order winner a factor must first be an order qualifier b. In order to be an order qualifier a factor must first be an order winner 29. The acronym ‘RFI’ as understood in the procurement process means: a. request for identification b. road freight information c. request for information

30. Very slow moving items of inventory are likely to be classified in an ABC inventory classification system as: a. ‘A’ items b. ‘B’ items c. ‘C’ items 31. The square root rule is concerned with: a. deciding how much inventory to re-order b. reducing total system inventory by reducing the number of locations within which inventory is held c. transit inventory

3

32. In the economic order quantity (EOQ) model the following two sets of costs are considered: a. Inventory carrying costs and order set-up costs b. Inventory carrying costs and costs associated with inventory in transit c. Order set-up costs and sourcing costs 33. Inventory turnover is the ratio of: a. value of average inventory held throughout the year divided by cost of all goods sold in a year b. cost of all goods sold in a year divided by value of average inventory held throughout the year c. value of average inventory held throughout the year divided by value of all goods sold in a year 34. A JIT system is likely to be charcaterised by: a. frequent orders of small quantities b. less frequent orders of large quantities 35. Which of these is not a value-adding activity in warehousing? a. Break bulk b. Smooth supply c. Chase demand 36. Cross docking is: a. A process that bypasses storage b. A process that reduces materials handling c. A process that improves product quality 37. Which of these is the cause of the Houlihan Effect? a. Non-zero lead times and demand signal processing b. Order batching c. Rationing and gaming 38. Materials requirements planning (MRP) systems are used to: a. Plan and control orders with dependent demand b. Plan and control orders with independent demand c. Forecast demand 39. Which of these is not an information task performed by warehouse management systems (WMS)? a. Cycle counting b. Purchase order generation c. Pick accuracy confirmation 40. Warehouse technologies must be: a. More flexible than human operators b. The very latest technologies c. Fit for purpose

4

41. Socio-technical systems (STS) theory considers four elements of an operation. Which is not one of these elements? a. Structure b. People c. Materials 42. Which of these is a fundamental principle of socio-technical systems (STS) theory? a. Automated warehouse systems b. Semi-autonomous teams c. Employee recruitment 43. Pick-to-voice technologies can be used to: a. Eliminate the need for warehouse operatives to read and write b. Eliminate the need for warehouse operatives to handle goods c. Eliminate the need for warehouse operatives to waste time talking to coworkers 44. The acronym ‘ITU’ stands for: a. Integrated transit unit b. Intermodal transport unit c. Integrated transport unit 45. When factory gate pricing is used who usually arranges transportation of the freight: a. The consignor b. The consignee c. The carrier 46. The acronym ‘FCL’ stands for: a. Final container load b. Full container load c. Final cargo load 47. Volumetric charging uses which of the following criteria to determine a freight rate: a. Dimensions b. Weight 48. Which of these is not a key driver of developing improved supply chain information systems? a. Information proliferation b. Information velocity c. Information sensitivity 49. Information visibility is: a. The ability to see information at various points across the supply chain b. The ability to transfer information between supply chain partners c. The ability to see all supply chain information on a single user interface 50. Electronic data interchange (EDI) is: a. A technology for the electronic interchange of data between two or more companies

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b. A technology for marketing products and services to customers c. A technology for managing suppliers 51. Radio frequency identification (RFID) offers: a. Improved product knowledge b. Remote communication of data c. Faster information reporting 52. Which of these is not a typical operational improvement offered by RFID? a. Shipment and item tracking b. Item tracking within a manufacturing plant c. Customer tracking within a retail store 53. Which of these statements is correct? a. Knowledge is gained from synthesising different information sources b. Data is gained from synthesising different information sources c. Information is gained from synthesising different knowledge sources 54. What type of exposure relates to exposure to potential financial loss as a result of trading in another currency: a. Transaction exposure b. Translation exposure 55. CVP analysis is: a. Cost, value, profit analysis b. Cost, volume, profit analysis c. Cash, value, profit analysis 56. The income statement is another name for: a. The balance sheet b. The profit and loss account c. The cash flow statement 57. Management accounting is sometimes called: a. Cost accounting b. Financial accounting 58. Which of these is a term used to describe the total costs associated with sourcing and receiving products from another location? a. Total logistics costs b. Total shipping costs c. Total landed costs 59. Benchmarking is: a. a method that enables companies to monitor their performance relative to the best-in-class b. a method that enables companies to set different KPIs to those of their competitors c. a method that enables companies to copy their competitors

6

60. An ‘SLA’ is: a. a supplier location agreement b. a service level agreement c. a service location agreement 61. The acronym ‘CSI’ used in a logistics context stands for: a. Carrier Safety Initiative b. Container Security Initiative c. Carrier Security Implementation 62. The ability of a system to return to its original (or desired) state after being disturbed can be described as: a. Robustness b. Resilience 63. The Sarbanes-Oxley Act originated in: a. Europe b. Asia c. The US 64. Which of these is not a primary mode of integration within a supply chain? a. Internal integration b. Forward integration c. Systems integration 65. Supply chain integration is: a. A term that embodies various communication channels and linkages within a supply chain b. A term that describes how information technology linkages are established within a supply chain c. A term that illustrates the complexity and multiplicity of a supply chain 66. Which of these is not a stage along the journey to collaboration as defined by Spekman et al, (1998)? a. Coordination b. Cooperation c. Cohabitation 67. Collaboration is: a. enabled by integration b. the same as integration c. an enabler of integration 68. Vertical integration is: a. the collaboration between competitors and other supply chain actors b. the collaboration between suppliers and customers c. the collaboration between two third party logistics providers

7

69. Which of these is not an enabler of improved supply chain collaboration? a. Supply base rationalisation b. Supplier development c. Supplier coercion 70. The transition to an advanced collaborative planning, forecasting and replenishment (CPFR) solution requires: a. A state-of-the-art information system to have been developed beforehand b. A long-term relationship to have been developed beforehand c. A detailed market analysis to have been developed beforehand 71. Which of these statements is correct? a. Supply chain collaboration cannot be achieved through information technology solutions alone b. Vendor managed inventory (VMI) is dependent upon decentralised supply chain control c. CPFR is not constrained by scale and complexity, when it is implemented 72. The acronym ‘RMA’ stands for: a. Return Material / Merchandise Activity b. Reverse Management of Assets c. Return Material / Merchandise Authorisation 73. Research suggests that the cost of processing a return can be: a. 2-3 times that of an outbound shipment b. One half to one third that of an outbound shipment 74. The maximum potential capacity of the latest generation of container ships is: a. 1,450 TEUs b. 14,500 TEUs c. 145,000 TEUs 75. Increased scale (such as larger container vessels) tends to: a. decrease the environmental impact of logistics activities per unit b. increase the environmental impact of logistics activities per unit 76. Effective supply chain management usually focuses upon a philosophy that concentrates on moving from: a. transactions to translations b. transactions to relationships c. relationships to transactions 77. Some commentators suggest that as much as what percentage of carbon savings are only achievable at the supply chain design stage: a. over 20% b. over 50% c. over 80% 78. The transportation model is an example of what category of modelling techniques:

8

a. optimisation techniques b. simulation techniques

9