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70 Cards in this Set
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1. ____refers to stocks of goods and materials that are maintained for many purposes,the most common being to satisfy normal demand patterns. a. logistics b. supply chainmanagement c. inventory d. production |
c. inventory |
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1. Holding highlevels of inventory result in ____ inventory carrying costs and ____ stockout costs. a. high; high b. high; low c. low; high d. low; low |
b. high; low |
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1. ____ stock refers to inventory that isneeded to satisfy normal demand during the course of an order cycle. a. base b. speculative c. pipeline d. safety non |
a. base |
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1. ____ stock refers to inventory that isheld in addition to cycle stock to guard against uncertainty in demand and/orlead time. a. base b. pipeline c. speculative d. buffer |
d. buffer |
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1. ____ stock refers to inventory that is enroute between various nodes in a logistics system. a. base b. safety c. speculative d. cycle e. none of the above |
e. none of the above pipeline
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6. ____ stock refers to inventory that isheld for several reasons, to include seasonal demand, projected priceincreases, and potential shortages of product. a. base b. safety c. pipeline d. speculative |
d. speculative |
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6. ____ stock iscarried to stimulate demand. a. base b. psychic c. speculative d. attractive e. none of the above |
b. psychic |
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6. Inventory costs in the United States inthe twenty-first century represent approximately ____ of total logistics costs. a. one-fifth b. one-fourth c. one-third d. one-half |
c. one-third |
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6. All of thefollowing statements are true, except: a. the importance of individual carryingcosts factors (categories) is generally consistent from product to product b. inventorycarrying costs consist of a number of different components or factors c. in general,companies prefer to carry less inventory as carrying costs increase d. in general,inventory carrying costs are expressed in percentage terms d. all of the aboveare true |
a. the importance of individual carrying costs factors (categories) is generally consistent from product to product |
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10. Inventory carrying costs in the UnitedStates in the twenty-first century have ranged between ____ and ____ percent. a. 4; 9 b. 9; 14 c. 14; 19 d. 19; 24 |
d. 19; 24 |
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11. Inventoryshrinkage ____. a. is another namefor inventory turnover b. refers to the fact that more items arerecorded entering than leaving warehousing facilities c. refers to situations where the sizeand/or volume of inventory is decreased over time d. refers to atechnique of stabilizing unit loads by using shrink wrap packaging |
b. refers to the fact that more items are recorded entering than leaving warehousing facilities |
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11. Each of thefollowing is a component of inventory carrying cost except: a. accounting cost b. storage cost c. shrinkage cost d. interest cost e. all of the aboveare components |
a. accounting cost |
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11. Inthe United States, ____has traditionally provided a convenient starting pointwhen estimating the interest charges associated with maintaining inventory. a. Gross DomesticProduct growth b. Consumer PriceIndex c. the prime rate ofinterest d. the yield on USTreasury bills |
c. the prime rate of interest |
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11. Which of thefollowing is not a component of ordering (order) costs? a. costs ofpreparing invoices b. costs ofreceiving orders c. costs ofverifying inventory availability d. costs ofconducting a credit check e. all arecomponents of ordering (order) costs |
e. all are components of ordering (order) costs |
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11. Which of the following situations islikely the most damaging (costly) with respect to a stockout? a. the customer buysa substitute product that yields a higher profit for the seller b. the customer buysa substitute product that yields a lower profit for the seller c. the customer goesto a competitor for a purchase d. the customersays, “Call me when it’s in” |
c. the customer goes to a competitor for a purchase |
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16. Which of thefollowing statements is false? a. with respect to stockouts, a delayed saleis virtually costless to a company because of the customer’s brand loyalty b. the higher the average cost for astockout, the more inventory (safety stock) that should be held c. tradeoffs existbetween carrying costs and stockout costs d. stockouts can bemore costly than having too many items in stock e. allof the above are true |
e. all of the above are true |
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16. Under conditionsof certainty, a reorder point is equal to ____. a. average daily demandtimes the length of the replenishment cycle b. safety stock plusan EOQ c. base stock plussafety stock d. base stock minussafety stock |
a. average daily demand times the length of the replenishment cycle |
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16. Theeconomic order quantity (EOQ) deals with calculating the proper order size withrespect to ____ costs and ____ costs. a. ordering;stockout b. stockout;carrying c. accounting;carrying d. carrying;ordering |
d. carrying; ordering |
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16. The economicorder quantity (EOQ) determines ____. a. the point atwhich a company should reorder b. the point atwhich carrying costs equal ordering costs c. the point atwhich the sum of carrying costs and ordering costs is maximized d. the relevantinventory flow for a particular time period e. none of the above |
b. the point at which carrying costs equal ordering costs |
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16. Which of the following is not anassumption associated with the basic economic order quantity (EOQ) model? a. no inventory intransit b. an infiniteplanning horizon c. stockouts arepermitted d. a constant andknown replenishment or lead time e. all are basicassumptions with the basic EOQ model |
e. all are basic assumptions with the basic EOQ model |
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21. Concerningthe EOQ model, if demand or annual usage increases by 10%, then the EOQ will____. a. it depends on theparticular product b. increase c. decrease d. stay unchanged |
b. increase |
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21. Concerning the EOQ model, if the orderingcosts increase by 10% and the product value increases by 10%, then the EOQ will____. a. stay unchanged b. increase c. decrease d. it depends on theparticular product |
a. stay unchanged |
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21. Inventory flowdiagrams illustrate that safety stock can prevent two problem areas, ____ and ____. a. decreased rate ofdemand; longer-than-normal replenishment b. increased rate ofdemand; shorter-than-normal replenishment c. decreased rate ofdemand; shorter-than-normal replenishment d. increased rate ofdemand; longer-than-normal replenishment |
d. increased rate of demand; longer-than-normal replenishment |
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21. ____ recognizes that all inventories arenot of equal value to a firm and thus all inventories should not be managed inthe same way. a. vendor-managedinventory b. suboptimization c. marginal analysis d. ABC analysis ofinventory |
d. ABC analysis of inventory |
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21. ABC analysis ofinventory ____. a. appliesactivity-based costing to managing inventory b. recognizes thatinventories are not of equal value to a firm c. is synonymouswith vendor-managed inventory d. is an alternativeto the EOQ model |
b. recognizes that inventories are not of equal value to a firm |
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21. Dead inventory(dead stock) refers to a product for which there is no sales during a ____ monthperiod. a. three b. six c. twelve d. twenty-four |
c. twelve |
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27. All of thefollowing are suggestions for dealing with dead stock (inventory), except ____. a. aggressivemarketing b. donate tocharities c. make to order d. throw it away e. all of the aboveare suggestions |
e. all of the above are suggestions |
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27. Inventoryturnover can be calculated by ____. a. dividing the costof goods sold by average inventory b. dividing averageinventory by the costs of goods sold c. multiplyingaverage inventory by 1.5 d. adding beginningand ending inventory and then dividing by two e. none of the above |
dividing the cost of goods sold by average inventory |
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27. ____ items referto those that are used or distributed together. a. me-too b. substitute c. co-branded d. complementary |
d. complementary |
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27. ____products refer to those that customers view as being able to fill the same needor want as another product. a. copycat b. me-too c. substitute d. co-branded |
c. substitute |
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27. Which of thefollowing is not an example of a lean inventory approach? a. just-in-time b. collaborativeplanning, forecasting, and replenishment c. efficientconsumer response d. quick response e. all of the aboveare lean inventory approaches |
e. all of the above are lean inventory approaches |
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32. Which of thefollowing statements about the lean approach and JIT is false? a. JIT tends tofocus on product movement from manufacturer to retailer b. organizationsshould give careful consideration before adopting a lean philosophy c. the lean approachviews inventory as waste d. trucking is animportant mode of transportation in JIT systems e. all of the aboveare true |
e. all of the above are true |
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32. Which of thefollowing statements about service parts logistics is false? a. customerexpectations for service parts logistics continues to increase b. someorganizations outsource their service parts logistics to companies thatspecialize in this area c. service partslogistics creates a variety of potential challenges for logisticians d. the worldwide economic slowdown of 2008and 2009 caused a decreased emphasis on service parts logistics e. all of the aboveare true |
e. all of the above are true |
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32. Under____, the size and timing of replenishment orders are the responsibility of themanufacturer. a. quick response b. supply chainmanagement c. vendor-managedinventory d. efficientconsumer response |
c. vendor-managed inventory |
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32. Which of thefollowing is not a potential benefit to vendor-managed inventory? a. reduced ordererrors b. improved demandforecasts c. reducedinventories d. fewer stockouts e. all are VMIbenefits |
e. all are VMI benefits |
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1. Warehousing and____ are substitutes for each other. a. transportation b. materialshandling c. packaging d. inventorymanagement e. none of the above |
a. transportation |
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1. ____ and ____refer to adjustments associated with the quantity of product. a. allocating;assorting b. accumulating;allocating c. sorting out;accumulating d. sorting out;assorting |
accumulating; allocating |
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1. ____ involvesbringing together similar stocks from different sources. a. bulk-breaking b. assorting c. accumulating d. sorting out |
accumulating |
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1. ____refers to building up a variety of different products for resale to particularcustomers. a. accumulating b. allocating c. sorting out d. assorting |
d. assorting |
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1. ____refers to separating products into grades and qualities desired by differenttarget markets. a. assorting b. sorting out c. allocating d. accumulating |
a. assorting |
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1. Warehousesemphasize ____ and their primary purpose is to maximize ____. a. rapid movement ofproduct; usage of available storage space b. rapid movement ofproduct; throughput c. product storage;usage of available storage space d. product storage;throughput |
c. product storage; usage of available storage space |
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7. Distributioncenters emphasize ____ and their primary purpose is to maximize ____. a. rapid movement ofproduct; throughput b. product storage;throughput c. product storage;usage of available storage space d. rapid movement ofproduct; usage of available storage space |
a. rapid movement of product; throughput |
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7. Throughput refersto ____. a. storage capacityof a warehousing facility b. volume through apipeline c. inventoryturnover in a one-month period d. amount of productentering and leaving a facility in a given time period |
d. amount of product entering and leaving a facility in a given time period |
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7. ____refers to a process where a product is received in a facility, occasionallymarried with product going to the same destination, and then shipped at theearliest time, without going into longer-term storage. a. just-in-time b. cross-docking c. accumulation d. agglomeration |
b. cross-docking |
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7. Warehousinglabor safety practices in the United States are monitored by which federalgovernment agency? a. WarehousingSafety Administration b. Department ofCommerce c. Food and DrugAdministration d. Consumer ProductSafety Commission e. none of the above |
e. none of the above |
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7. Whichof the following is not a characteristic of public warehousing? a. requires nocapital investment from user b. users have afairly exact determination of their warehousing costs c. good forcompanies dealing with large volumes of inventory d. lack of controlby user e. all of the aboveare characteristics |
c. good for companies dealing with large volumes of inventory |
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12. What isconsidered to be the biggest drawback to public warehousing? a. high fixed costto user b. lack of safetyregulation c. lack oflocational flexibility d. lack of controlby the user |
d. lack of control by the user |
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12. ____warehousing is owned or occupied on a long-term lease by the firm using them. a. private c. contract d. multiclient - |
a. private |
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12. All arecharacteristics of private warehousing, except ____. a. generates highfixed costs for the user b. feasible whendemand patterns are irregular c. users have agreat deal of control d. may reduce anorganization’s flexibility e. all of the aboveare characteristics |
b. feasible when demand patterns are irregular |
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12. Withrespect to contract warehousing, ____ to ____ year contracts appear to allowsufficient time for the warehousing provider to learn the client’s businesswhile allowing the client some flexibility in case the agreement fails toproduce acceptable results. a. 1; 2 b. 2; 3 c. 3; 5 d. 5; 7 |
c. 3; 5 |
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12. Multiclientwarehousing mixes attributes of ____ and ____ warehousing. a. private; contract b. common; private c. public; common d. public; contract |
d. public; contract |
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12. Oneof the best pieces of advice with respect to the design of warehousingfacilities is to ____. a. automate wheneverpossible b. build up ratherthan out c. avoid consultants d. use common sense |
d. use common sense |
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18. Trade-offsmust be made among space, labor, and ____ with respect to warehousing design. a. cost b. constructionmaterials c. mechanization d. speed |
c. mechanization |
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18. A key advantageof fixed slot locations in a warehouse is ____. a. improved employeemorale b. knowledge ofwhere specific products are located c. better materialshandling d. increased spaceutilization |
b. knowledge of where specific products are located |
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18. A key advantageof variable slot locations in a warehouse is ____. a. increased spaceutilization b. better materialshandling c. ease of recordkeeping d. more logical andsimple product layout |
a. increased space utilization |
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18. Asone builds higher, building costs ____, while warehousing equipment costs tendto ____. a. increase;decrease b. increase;increase c. decrease;decrease d. decrease;increase |
d. decrease; increase |
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18. Which of thefollowing statements about a one-dock layout is false? a. each and everydock can be used for both shipping and receiving c. goods move in astraight configuration d. product maysometimes be reloaded in the vehicle that delivered it e. all of the abovestatements are true |
c. goods move in a straight configuration |
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23. Narrowaisles can store ____ to ____ percent more product than conventional widthaisles. a. 30; 40 b. 20; 25 c. 15; 20 d. 10; 15 |
b. 20; 25 |
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24. Which of thefollowing is not an example of warehouse automation? a. radio frequencyidentification c. automated guidedvehicles d. automated storageand retrieval systems e. all of the aboveare examples of warehouse automation |
e. all of the above are examples of warehouse automation |
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24. Which of thefollowing is not a trade-off in warehousing design? a. two-dock versussingle-dock layout b. build up versusbuild out c. order pickingversus order taking functions d. degree ofwarehouse automation e. all of the aboveare trade-offs in warehousing design |
e. all of the above are trade-offs in warehousing design |
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24. Oneestimate suggests that only approximately ____ percent of a facility’s cubiccapacity is actually occupied by product. a. 10 b. 25 c. 40 d. 50 |
b. 25 |
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24. Which of thefollowing is not a potential measure of warehousing productivity? a. average warehousecapacity used b. order fill rate c. pallets shippedper person d. cases shipped perperson e. all of the aboveare potential measures of warehousing productivity |
e. all of the above are potential measures of warehousing productivity |
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24. What is the mostfrequent source of injuries among warehousing personnel? a. heart attacks b. assault by otherwarehousing personnel c. leg wounds fromforklifts d. back and shoulderinjuries |
d. back and shoulder injuries |
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24. What is dunnage? a. a slang term fora particular type of ocean liner b. a type ofpackaging material that is placed inside of boxes c. material that isused to block and brace products inside carrier equipment d. additional transportation fees thatare charged to small shippers |
c. material that is used to block and brace products inside carrier equipment |
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30. Which of thefollowing is not one of the common causes of warehousing fires? a. electricalfailure or malfunction b. lightning strikes c. heat source tooclose to combustibles d. cutting orwelding too close to combustibles e. all of the aboveare common causes |
e. all of the above are common causes |
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30. According to the Occupational Safety and Health Administration, approximately ____ employeesare killed each year while operating forklifts in warehousing facilities. a. 100 b. 250 c. 500 d. 1,000 e. none of the above |
a. 100 |
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30. A safety datasheet (SDS) is required for ____. a. all finishedgoods stored in a warehouse b. each hazardousproduct to be stored in a facility c. all raw materialsbrought into a firm d. any productimported into the United States |
b. each hazardous product to be stored in a facility |
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30. Whichof the following is not one of the four questions associated with effectivemanagement of hazardous materials storage? a. what material isbeing stored b. why is it beingstored c. what is thematerial’s source e. each of the aboveis one of the four questions |
c. what is the material’s source |
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30. Ingeneral, warehousing security can be enhanced by focusing on people, ____, and____. a. building;equipment b. buildings; cost c. cost; processes d. facilities;processes |
d. facilities; processes |
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35. Which of thefollowing statements is false? a. clean andsanitary warehousing facilities can have a positive impact on morale b. one suggestionfor warehouse sanitation is to clean the facility at least once a day c. warehousingcleanliness and sanitation can be facilitated by putting product at the back ofa facility where it is out of the way d. clean andsanitary warehousing facilities can reduce employee turnover e. all of the aboveare true |
e. all of the above are true |
