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Marketing: A McGraw-Hill and QUT Custom Publication

Marketing

A McGraw Hill and QUT Custom Publication

Integrating Supply Chain and Logistics Management

Multiple Choice Quiz


1		Unifi, the leading U.S. maker of synthetic yarn, shares production-scheduling and quality-control information daily with Dupont, a principal supplier of raw materials. Dupont is part of Unifi's:
			A)	supply chain.
			B)	service continuum.
			C)	demand channel.
			D)	materials handling channel.
			E)	derived supply.


2		A marketing expert described a _____ as looking like a butterfly. The manufacturer is the body of the butterfly with many different suppliers accumulated on one side of the body for the left wing and a large number of buyers collected on the other side to form the right wing.
			A)	logistical flow
			B)	demand chain
			C)	materials handling facility
			D)	supply chain
			E)	retailer cooperative


3		_____ is the integration and organization of information and logistics across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers.
			A)	Supply chain management
			B)	Logistics management
			C)	Point-to-point management
			D)	Just-in-time management
			E)	Cost-effective flow


4		What is the first step in choosing a supply chain?
			A)	developing an umbrella mission statement
			B)	understanding the customer
			C)	making sure the members of the supply chain harmonize with the organizational culture
			D)	creating a unifying interorganizational strategy
			E)	determining what the competition is doing


5		Bombardier makes corporate jets and its strategy involves streamlining production activities, maintaining its reputation for quality, and reducing its costs. It has developed the Continental, an airplane assembled from just a dozen large component parts (not counting rivets). While building planes with subassemblies is not new, Bombardier is the first to not use vertical integration. All parts are supplied by carefully chosen independent companies that share the development costs and market risk. In terms of its supply chain, Bombardier has
			A)	lengthened its supply chain unnecessarily.
			B)	implemented a just-in-time materials handling policy.
			C)	created a marketing channel.
			D)	harmonized its supply chain and its strategy.
			E)	used a production repositioning strategy.


6		The objective of logistics management in a supply chain is to deliver maximum customer service and to:
			A)	minimize relevant logistics costs.
			B)	minimize employee productivity.
			C)	minimize shareholder's return on investment.
			D)	minimize employee layoffs.
			E)	maximize employee wages.


7		Winemaker Robert Mondavi Corp. buys satellite images from NASA to spot problems in its vineyards and aims to push those images out over a(n) _____ to its independent growers this year. Mondavi will help growers avoid vineyard problems-and improve the grapes it buys.
			A)	Extranet
			B)	customized search engine
			C)	electronic downloadable information (EDI)
			D)	customized database management system
			E)	entrepreneurial Internet


8		Supply chain manufacturers balance total logistics cost factors against customer service factors. Which of the following is an example of one of the total logistics cost factors?
			A)	convenience costs
			B)	time
			C)	stockout costs
			D)	communication costs
			E)	all of the above


9		With which customer service factor are quick response and efficient consumer response delivery systems most closely related?
			A)	time
			B)	dependability
			C)	inventory costs
			D)	communication
			E)	convenience


10		The four key logistics functions in a supply chain include:
			A)	distribution, transportation, communication, and information.
			B)	transportation, inventory management, customer service, and distribution relationships.
			C)	distribution relationships, communication, transportation, and order processing.
			D)	transportation, warehousing and materials handling, order processing, and inventory management.
			E)	information management, logistics management, customer service, and distribution relationships.


11		Celarix.com is a business entity that monitors and calculates tariffs and exchange rates for small companies that ship export their products. Celarix is an example of a:
			A)	materials handling expert.
			B)	content provider.
			C)	freight forwarder.
			D)	third-party logistics provider.
			E)	logistics manager.


12		Which of the following statements about railroads is true?
			A)	Railroads carry bulky items over fairly long distances.
			B)	Railroads still dominate the other five modes of transportation in terms of ton-miles carried.
			C)	Railroad routes are more extensive than water carriers or pipelines.
			D)	Railroads are a relatively low cost mode of transportation.
			E)	All of the above statements about railroads are true.


13		Which of the following statements about air carriers is true?
			A)	One advantage of air carriers is door-to-door delivery.
			B)	There are no space constraint limitations as to what can be transported in planes.
			C)	This method of transportation is especially effective for piggybacking.
			D)	Air carriers are commonly used for perishable flowers, clothing, and electronics parts.
			E)	All of the above statements about air carriers are true.


14		William "Gus" Pagonis is an executive vice president at Sears and oversees the systems the retailer depends on to make 5,000 home deliveries per day and move 250,000 truckloads of goods every year. With 30 large distribution centers and 90 smaller outlets, it's Pagonis's job to supply 100,000-plus products to more than 2,000 Sears stores. When asked to describe the retailer's distribution centers, Pagonis would most likely say,
			A)	"Just like other companies, Sears spends more money on distribution centers than any other element of its supply chain."
			B)	"Our success is due to the centralization of our distribution centers."
			C)	"Because our distribution centers are so efficient, they are the least expensive part of our supply chain."
			D)	"We use our distribution centers to facilitate sorting and consolidating products from different suppliers."
			E)	"Distribution centers are the most important element of our order processing."


15		Modes of transportation are typically evaluated on the basis of all of the following criteria EXCEPT:
			A)	accessibility.
			B)	perishability.
			C)	frequency.
			D)	capability.
			E)	dependability.


16		TransCanada PipeLines, a natural gas transmission and distribution company, launched an advertising campaign in national Canadian newspapers and the country's major dailies to educate people about what pipelines do and where they fit into the economics of the community. The advertising might have told Canadians that pipelines:
			A)	are expensive to use.
			B)	have a high degree of reliability.
			C)	are weather sensitive.
			D)	rank high in terms of accessibility.
			E)	are accurately described by all of the above.


17		The Danish-flagged Carsten Maersk can carry enough merchandise packed in containers that when they are laid end to end, the containers would stretch 27 miles. When it reaches its destination, the containers will be removed from the ship and loaded onto trucks and railcars. This is an example of:
			A)	piggyback.
			B)	freight forwarding.
			C)	intermodal transportation.
			D)	an export agent.
			E)	an efficient consumer delivery system.


18		Traditionally, stores have carried inventory to:
			A)	prevent strikes or product shortages.
			B)	provide better service for those customers who wish to be served on demand.
			C)	eliminate forecasting uncertainty.
			D)	terminate production economies.
			E)	avoid purchasing and transportation discounts.


19		Alberto-Culver Canada is the number three provider of hair care products in Canada. It first set up operation in downtown Etobicoke, Ontario in 1961. By 1966, it had to move its facility to the edge of town so that it was closer to its raw materials suppliers and, thus, would be able to operate with very low inventories and requires suppliers to make fast on-time deliveries. In 1966, Alberto-Culver Canada implemented a:
			A)	just-in-case concept.
			B)	just-in-time system.
			C)	delivery-on-demand concept.
			D)	expedited inventory management system.
			E)	distribution center.


20		Reverse logistics is:
			A)	the process of reclaiming recyclable and reusable materials, returns and reworks from the point-of-consumption or use for repair, remanufacturing or disposal.
			B)	an inventory supply system that operates with very low inventories and requires fast on-time delivery.
			C)	a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products on trucks, which will deliver the products to specific stores.
			D)	organizing a cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of consumption to satisfy customer requirements.
			E)	the process of moving goods over short distances into, within, and out of warehouses and manufacturing plants.

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