University of La Verne

SCM 350

CHAPTER TWO QUESTIONS-LOGISTICS

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.

 

1. 1. 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

 

1. 2. 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

 

1. 3. 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

 

1. 4. 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.

 

2.6          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

 

1. 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

 

1. 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

 

1. 9. 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

 

1. 10. 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.

 

1. 11. Logistics cost has declined as a percent of GDP over the past 25 years

 

1. 12. Service reliability involves logistical quality.

 

1. 13. Total cost was not typically the way managers viewed logistics prior to the 1960’s

 

1. 14. The logistics value proposition is based solely on cost minimization

 

1. 15. The work of logistics is all about transportation planning and execution

 

1. 16. Logistical system design is driven by careful integration of all operational components to minimize total cost

 

1. 17. Transportation cost drives a firm’s focus on speed and consistency

 

1. 18. Facility network design is the function of total cost minimization

 

1. 19. Procurement and manufacturing are an integral part of integrated logistics.

 

1. 20. Echeloned distribution structure facilitates direct delivery

 

1. 21. Logistics cost is greater than healthcare cost in the US

 

1. 22. Efficiency as contrasted to effectiveness is the primary goal of logistics