PART III
EXAMINATION QUESTIONS
CHAPTER 1: LOGISTICS AND THE SUPPLY CHAIN
Multiple Choice Questions
1. Logistics as a percentage of U.S. Gross Domestic Product is approximately (within 2%):
a. 5%
b. 10%
c. 15%
d. 20%
e. none of the above
(b; p. 4)
2. Logistics clearly contributes to ___________ and ___________ utility.
a. time; place
b. form; time
c. place; form
d. posssion; time
e. none of the above
(a; p. 4)
3. ___________ utility refers to the value or ufulness that comes from a customer being able to take posssion of a product.
a. time
b. place
c. form
d. posssion
(d; p. 4)
4. ___________ utility refers to having products available where they are needed by customers.
a. posssion
b. time
c. place
d. form
(c; p. 5)
5.
All of the following terms have been ud to refer to business logistics except:
a. business logistics
b. industrial distribution
c. logistics management
d. physical distribution
e. all of the above are correct
(e; p. 5)
6. “How well a company does what it says it’s going to do” reprents ___________.
a. efficiency
b. productivity
c. leading edge logistics
d. effectiveness
(d; p. 6)
7. Every customer getting the same type and levels of logistics rvice refers to ___________.
a. tailored logistics
b. mass logistics
c. effectiveness
d. efficiency
(b; p. 7)
8. Which of the following is not a reason for the incread importance of logistics?
a. growing power of manufacturers
b. reduction in economic regulation
c. globalization of trade
d. technological advances
(a; pp. 8–10)
9. What logistics “outsider” developed the concept of the value chain?
a. Donald Bowersox
b. Gus Pagonis
c. Michael Porter
d. Michael Hammer
(c; p. 8)
10.
The ___________ approach indicates that a company’s objectives can be realized by recognizing the mutual interdependence of major functional areas.
a. supply chain
b. systems
c. interfunctionality
d. total cost
(b; p. 10)
11. The movement and storage of materials into a firm refers to:
a. physical distribution
b. materials management
c. materials handling
d. inbound logistics
(d; p. 10)
12. The movement and storage of materials within a firm refers to:
a. physical distribution
b. inbound logistics
c. materials management
d. procurement
(c; p. 10)
13. Logistics managers u the ___________ approach to coordinate inbound logistics, materials management, and physical distribution in a cost efficient manner.
a. total cost
b. supply chain
c. mass logistics
d. interfunctional
(a; p. 11)
14. A cost trade-off is a situation where:
a. all costs react according to their individual degrees of inflation in the economy
b. all costs are reflected as a percentage variation from standard costs
c. some costs increa, some decrea, and the net effect is that total costs decrea
