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Question 9-15

Introduction to Logistics and Supply Chain Management (Royal Melbourne Institute of

Technology)

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Online multiple choice question

4, 6, 9, 11, 10, 12, 14, 15

Chapter 4
1. All except one are factors which can affect Supply Chain Network design:
a) Corporate ownership
b) Locate of customer and/ or supply markets
c) Climate and weather conditions
d) Cost pressure

2. ___ ____ is a combination of suppliers, production locations, distribution centres, wholesalers and
retailers
a) Logistics management
b) Supply chain network
c) Supply chain management
d) Inventory management

3. All except one are competitive advantages of warehouse network:

a) Freight consolidation
b) Total inventory increases at the increasing rate
c) Lower total cost or faster to destination service
d) Cross-dock sortation

4. Supply chain network design decisions are concerned with

a) Where the facilities should be located and what processes should be performed at each facility.
b) How much capacity should be allocated to each facility
c) What markets each facility should serve and which supply sources should feed each facility
d) Where the facilities should be located
e) Where the facilities should be located and how much capacity should be allocated to each facility

5. Supply Chain network design decision pertaining to facility location is

a) Both a strategic and tactical decision
b) a tactical decision
c) a strategic decision
d) both a strategic and an operational system
e) an operational decision

6. the optimization model is based on

a) rule of thumb approaches
b) precise mathematical procedures
c) broad problem definitions
d) sampling experiments

7. Heuristic models
a) Provide an optimum solution
b) Are able to accommodate broad problem definitions
c) Have fallen from use because of SAILs
d) Are typically “seat of pants” solutions

8. Simulation models
a) Search directly for the best warehouse configuration
b) Allow the decision maker to test the effects of alternative locations
c) Guarantee optimum solutions
d) Generate SAILS report

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9. The classic objective of a network design model has been

a) To find the best location for a forward-facing warehouse
b) To establish the number, location, and size of finished goods distribution centres and associated
product flows
c) To examine the finished goods flow from the warehouse to the customer
d) To measure and control site locations

10. The grid technique

a) Assumes that the raw materials sources and finished goods markets are variable
b) Is a variation of Sails
c) Assumes that the raw materials and sources and finished goods markets are fixed
d) Assumes non-linear transportation rates

11. Which is an advantage of the grid technique for facility location?

a) It considers topographic conditions in choosing the optimum location
b) It establishes the final determination of the best site
c) It is a dynamic approach with solutions remaining optimum
d) Computationally, it is relatively easy to use

12. Application of the grid technique to the location of a city warehouse

a) Considers the costs of moving raw materials into the facility and moving finished goods to the
customers
b) Incorporates a blanket rate structure that applies the same rate from an origin to any point
within the city or commercial zone
c) Is no different from applying it in any other situation
d) Accounts for information like highway access and facility availability within the grid coordinates

13. Which is correct regarding tapering rates

a) Uses transportation simplifications to recommend facility locations
b) In a one-source, one market situation, the impact of the tampering rate will pull the location
toward a point midway between the source and the market
c) The principle is based on the carrier’s ability to spread certain fixed shipments costs over a
greater number of miles
d) The transportation rates increase with distance directly in proportion to the distance

14. Which is correct regarding the transit privilege

a) It results in only an end point, either an origin or destination being the optimum location
b) It permits the shipper to stop the shipment in transit and physically change the product’s
characteristic
c) It magnifies those geographic disadvantages that companies associate with a producer’s location
d) It is normally available at any location and commodity

15. What is the effect of tapering rates on Facility location?

a) Pushes the raw materials sources toward the location
b) Pulls the facility toward the location
c) Pulls the location toward the source or the market
d) Makes the optimum location at the midpoint between raw material sources and the marketplace

16. In the short run, the firm’s network is ___ while in the long run it is _____
a) Variable, reversible
b) Reversible, fixed
c) Adaptation, reversible
d) Fixed, variable

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17. When a blanket rate structure is used, which factor is eliminated as a location determinant?
a) Labour rate
b) Transportation rate
c) Raw material rate
d) Market sources

18. What advantages does the transit privilege give to shipper located at intermediate locations?
a) Allows importer to enter a product and hold it without paying duties
b) A lower, long- distance through rate charged for the shipment
c) The right to change consignees during shipment
d) Avoidance of terminal charges for each intermediate stop

19. What type of change may suggest a need to revaluate and/or redesign a firm’s logistics network?
a) Shifting locations of customer and/or supply markets
b) Change in customer service requirements
c) Change in corporate ownership
d) All of these

20. Which is true regarding the facility/supply chain network design decision?
a) It should be coordinated closely with the corporate ad overall business strategies that may be in
place
b) Generally, qualitative criteria are considered first
c) Global locations should not be considered
d) The facility’s impact on other functional areas should be considered but it is not as important

21. Which is not True regarding logistics network design?

a) The logistic audit provides members of the transformation team with a comprehensive
perspective on the firm’s logistics process
b) The implementation plan serves as a useful road map for moving from the current logistics
network to the desired one
c) “What if” types of analysis can be conducted later, after the final network design has been
established
d) The logistics/supply chain network transformation team is responsible for all elements of the
logistics network design process

22. The logistics/supply chain network transformation team

a) Includes workers from divisional levels only
b) Should not include outside consultants
c) Must be aware of the firm’s overall business and corporate strategies and the supply chain in
which it participates
d) Will no consider the potential involvement of third party logistics suppliers as part of their
responsibilities?

23. Which major locational determinant considers locating near the competition
a) Labour climate
b) Company preference
c) Supplier network
d) Quality of life

24. Which is true regarding optimization models?

a) Optimization models will guarantee increased profits
b) Optimization models are based on precise mathematical procedures that are guaranteed to find
the best solution for problem under evaluation
c) The grid technique is a powerful optimization model
d) Optimization models are able to accommodate broad problem demands definitions, rather than
provide an optimum solution

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25. Which of these is not a trend in today’s logistics environment that may have significant effects on
decisions involving logistics facility location?
a) Addition of many wholesaler distributor operations
b) Strategically located cross-docking facilities
c) Customer-direct delivery
d) Use of third part logistics services

26. The grid technique is used to determine a fixed facility location that represents the least-cost centre
for moving incoming material and outbound product within a geographic grid. The least cost centre is
also referred to as
a) A zero point
b) A break-even point
c) A source point
d) A centre of gravity

Chapter 6
1. Resource requirements planning (RRP)
a) Is a long run, macro level planning tool
b) Is a long-range materials plans that translate annual business plans
c) Checks the feasibility of the materials requirement plan
d) Check the feasibility of the master production schedule

2. Which of these is NOT a production method?

a) Assemble to order
b) Build to order
c) Delayed differentiation
d) Make-to- stock

3. A project layout is
a) a process-focused layout that groups together similar equipment or functions
b) a fixed location layout where the product remains in place for the duration of production
c) a floor plan of the production facility
d) a product focused layout in which machines and workers are arranged according to the
progressive sequence of operations

4. From utility drives the need for

a) Supply chain capabilities only
b) Supply chain capability, time utility and place utility
c) Time utility and place utility
d) Place utility

5. Packaging is
a) Critical to logistics
b) Critical to manufacturing
c) A factor in outsourcing
d) Critical to product differential

6. A newly launched twenty-first century addition to production strategy which leverages lean
manufacturing strategies, Six Sigma best practices, and real time actionable intelligence from the
factor floor is called
a) Adaptive manufacturing
b) Just in time inventory
c) Capacity requirements planning
d) Machine flexibility

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7. The assemble-to-order production,

a) The finished product is generally a combination of common components and a limited number
of options or accessories made available to the customer
b) The finished product is a combination of standard and customer designed components that meet
unique needs of a specific customer
c) Customer orders are filled from finished goods inventories and production orders are used to
replenish finished goods inventories
d) Highly tailored products are created for the customer whose specification require unique
engineering design or significant customization

8. Processes that can product a range of products are said to have

a) Economies of scale
b) Routing flexibility
c) Work centres
d) Economies of scope

9. Which is NOT a major challenge for many established manufacturers?

a) Expanding product life cycles
b) Competition
c) Customer demand
d) Pressure for efficiency

10. A push-based strategy works well for supply chains that focus on
a) Work centres and offshore sourcing
b) The immediate delivery of off-the-shelf, low-cost, standardized goods
c) The anticipation of demand or without knowledge of customer orders
d) Lean production

11. Lean production relies on

a) The Toyota production system (TPS)
b) Pull-based systems
c) Push based systems
d) Just In Time system

12. Which of the following is not a reactive capability strategy?

a) Routing flexibility
b) Machine flexibility
c) Resources requirements planning
d) offshoring

13. Capacity is
a) The maximum amount of square footage available for inventory storage in a facility
b) Determined by raw material flows
c) Determines by lean manufacturing
d) The maximum amount of work that an organization is capable of completing in a given period
of time

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Chapter 9

1. Which of the following statements is best about inventory management?

a) Inventory and production must be managed together
b) Inventory is not important at the production planning level
c) Inventory are usually insignificant on the balance sheet
d) Inventory does not cost much to carry

2. What are materials used in the production process but do not become part of the product?
a) Raw materials
b) Work in progress
c) Finished goods
d) Maintenance, repair and operating supplies

3. Which of the following company objectives are in conflict?

a) Maximum customer service and low inventory cost
b) Low cost plant operations and cash flow
c) Maximum inventory investment and customer service
d) Cash flow and profitability

4. Which of the following are cost of carrying inventory?

a) Capital cost and advertising cost
b) Capital cost and storage cost
c) Purchasing and transport cost
d) Production control cost and purchasing cost

5. Which of the following costs are relevant to inventory management decisions?

a) Run time and cost
b) Marketing cost
c) Factory overhead
d) Storage cost

6. If the order quantity is increased, which of the following occurs?

a) The cost of carrying in inventory deceased and the cost of ordering increases
b) The cost of carrying inventory increases and the costs of ordering decreases
c) The cost of carrying inventory increases and the cost of ordering increases
d) The cost of carrying inventory decreases, and the cost of ordering decreases

7. Safety stock will depend on which of the following

a) Variability of demand
b) Cost of carrying inventory
c) Cost of placing an order
d) Product obsolescence

8. If the annual cost of goods sold (CGS) is $100 million and the average inventory is $25 million, what
are the inventory days ?
a) 60 days
b) 90 days
c) 120 days
d) 150. Days

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9. Which defines JIT.

a) JIT is a business philosophy focused on elimination of waste
b) JIT means having product always ready for the customer
c) JIT means getting the goods to the customer as fast as possible at all cost
d) JIT is concern with adding cost to the product

10. All of the following are critical input to JIT production except
a) Steady production
b) Flexible workforce
c) Small inventory
d) Extremely high quality

11. In ABC inventory classification system, class A items may

a) Require higher safety stock
b) Require frequent deliveries
c) Require a periodic inventory system
d) Require batch updating of inventory records

12. Dependent demand relates to

a) Demand for another inventory item or product
b) The spare parts needed to fill the order
c) VMI inventories
d) The cost of capital for the firm

13. An organisation selling its product FOB destination hold the title to the goods until
a) Picked by the trucker
b) Product reach the customer’s facility
c) The customer is involved
d) The customer receives the goods into their inventory system

14. JIT is a ___ system

a) Push
b) Pareto’s law
c) MRP
d) Pull

15. A DRP system is usually coupled with a ____ system in an attempt to manager the flow and timing of
both inbound materials and outbound finished goods
a) Kan Ban
b) VMI/ Consignment
c) MRP
d) JIT

16. Which of the following is not included in inventory risk cost

a) Insurance
b) Damage
c) Theft
d) Obsolescence

17. Which of the following is not an assumption relevant to the EOQ model
a) There is no inventory in transit
b) The planning horizon is infinite
c) All inventory parts are independent of each other
d) The item purchase price is dependent on the amount ordered

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18. Which of the following is most likely to be a pull inventory model?

a) Economic order quantity
b) Distribution requirements planning
c) Material requirements planning
d) Kanban

19. The relationship between customer service level and inventory investment is
a) Positive exponential
b) Asymptotic
c) Inversely proportional
d) Negative exponential

20. Inventory as an asset on the balance sheet and a ____ on the income statement
a) Liability
b) Footnote
c) Statement
d) Variable expense

21. Inventory and the GDP grew by ____ amounts between 1994 and 2010
a) The same
b) Different
c) Inversely proportional
d) Exponential

22. Batching economies or cycle stocks usually arise from three sources. Which of these is not a source
a) Procurement
b) Transportation
c) Production
d) Demand

23. WIP inventories

a) Not included on the balance sheet
b) Are associated with manufacturing
c) Are the same as VMI inventories
d) Are not impacted by EOQ

24. Seasonal stocks are not influenced by

a) EOQ
b) Weather
c) Transportation
d) Holidays
25. Which department does not have any impact on inventory
a) Finance
b) Manufacturing
c) Corporate governance
d) Marketing

26. Capital cost focuses on the cost of capital tied up in ___ and the resulting lost opportunity from
investing that capital elsewhere
a) Plants
b) Inventory
c) Distribution centres
d) WIP

27. Ordering cost refers to the expense of placing an order and

a) Includes the cost of capital
b) Relates to the material management concept

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c) Does not include the cost of the product

d) Not receiving it

28. In the event of a stockout one of the things that could happen is
a) The vendor’s plants shut down
b) The cost of capital is increase
c) The SCOR process would come into play
d) Extra shipping cost may be incurred

Chapter 10
1. Ten manufacturers are supplying their products directly to ten customers. If they involve just one
distribution in the process, the number of transactions among them will reduce from 100 to
a) 20
b) 30
c) 40
d) 50
2. Which of the following statements is true?
a) Manufactures typically produce a small quantity of a wide variety of goods
b) Consumers typically purchase a limited quantity of a wide variety of goods
c) Consumers typically purchase a large quantity of a limited variety of goods
d) None of these statements are true

3. All except one are efficient methods of consolidation. Which one is not ?
a) Using larger rather than smaller vehicle
b) Containerisation and palletisation
c) Reducing the frequency of movements
d) Expending the number of locations where loading and unloading is done

4. The first facility consideration is to determine

a) How close to source it should be
b) The size of each operation within the network
c) How close to the customer it should be
d) Where competitors are located

5. The primary facility operations focus is

a) On the movement and storage of product
b) Inventory control and personnel issues
c) Making sure KPI’s are fulfilled
d) The WMS system

6. Which of these is not a support function?

a) Inventory control
b) Safety, maintenance and sanitation
c) Information technology
d) Movement and storage

7. Asset utilization is a very important aspect of

a) KPIs
b) 3Pl distribution facilities
c) Commercial distribution facilities

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d) Private distribution facilities

8. The roles of the distribution centre include ____

a) Balancing supply and demand
b) Protecting again uncertainty and promoting transportation economies
c) Promoting transport economies
d) Balancing supply and demand, protecting again uncertainty and promoting transportation
economies
9. Distribution facilities can provide number services, depending on the requirements of the supply
chain. Which of these is not a typical service?
a) Assortment
b) Accumulation
c) Allocation
d) Activity

10. One important interaction that must be considered is the trade-off between distribution and ____
a) Transportation
b) Finance
c) Marketing
d) Services

11. The primary trade-offs and relationships between resources include the following
a) Space vs equipment
b) Equipment vs people
c) People vs space
d) All of these

12. Potential labour problems for distribution centres may be result of

a) Low pay and long hours
b) Competition from nearby firms
c) The graying of Australia
d) Awareness of these job opportunities

13. Certain raw materials can be stored

a) Outside
b) Only in a 3PL facility
c) Upside down
d) Anywhere

14. A downside of direct shipping is

a) That it takes product flow away from the distribution centre
b) Can create higher transportation charges
c) That customer may not like this method
d) The product may not lend itself to this method

15. The drawback of centralized inventory is

a) That it undercuts the dispersed distribution concept
b) That it increases the amount of inventory required
c) Strains the ability of the carrier network
d) That it extends lead times and results in high transportation costs

16. The key financial consideration in choosing between private and 3PL distribution options is
a) Warehouse locations
b) Competency of in-house staff
c) Volume of product being moved
d) Type of product being handled.

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Chapter 11
1. The most important single transportation document is the
a) Bill of lading
b) Freight bill
c) Commercial invoice
d) Certificates of origin
2. Transportation modal selection needs to take into consideration of
a) Accessibility
b) Transit time
c) Reliability
d) Only b and c are correct
e) A,b,c are correct

3. Fill in the blank:

____ offer transportation services to all shippers at published rates between designated locations
without discrimination
a) Common carriers
b) Contract carriers
c) Exempt carriers
d) Private carriers

4. One of the following is not a rail transport characteristic

a) Low cost on bulk freight
b) Flexibility because of variety of cars
c) Cost advantage for short hauls
d) High fixed and low variable cost

5. Which management area in an organization does not normally have transportation responsibility
a) Marketing
b) Manufacturing
c) Procurement
d) Logistics

6. Terms of sale establish

a) When ownership and title of goods passes from seller to buyer
b) What must be shown on the bill of lading
c) Which transportation mode must be used
d) Who handles freight claims

7. Desirability refers to
a) Performance reporting and score carding
b) Attractive packaging choices
c) Characteristics that influences modal selection
d) Ride quality

8. The main strategy behind routing guides is to

a) Maintain exact control
b) Comply with or enforce FOB terms
c) Promote supply chain excellence
d) Select between modes

9. Which of these is not a freight document?

a) Routing guide
b) Bill of lading
c) Freight bill
d) Freight claims form

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10. Which of the following is not a factor in the selection of a transport carrier?
a) Price
b) Accessibility
c) Reliability
d) Adaptability

11. Which of the following is not an advantage of pipelines ?

a) Least capable
b) Most reliable
c) Most flexible
d) Slowest speed

12. Which of the following is not an advantage of air transport :

a) Fastest terms of speed
b) Most reliable in terms of meeting schedules
c) Most expensive
d) Lowest in terms of quanity of freight hauled

13. Which of the following is not characteristic of a straight bill of lading:

a) Include terms and conitions and is non-negotiable
b) Allow transfer of title to the shipped goods
c) Serves as a contract of carriage
d) Acts as a receipt for shipped goods

14. Transportation efficiency promotes ____ in the supple chain

a) Intermodal demand
b) KPIs capacity
c) Competition

15. The distances in today’s global supply chains produce

a) Higher cost
b) Longer transit times
c) More disruptions
d) All of these

16. Economic deregulation sparked competition among carriers in several areas. Which of these is not an
area of competition?
a) Accessibility
b) Pricing
c) Performance
d) Service

17. Security legislation

a) Has not had much impact on transportation carriers
b) Has caused some firms to stop offshore sourcing
c) Has caused expense issues for carriers
d) Has created unnecessary restrictions of legitimate trade

18. Which is not a mode of transportation?

a) Truck
b) Air
c) 3PL
d) Pipeline

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19. Air carriers were historically looked upon as

a) Emergency only carriers
b) Having equipment shortages
c) A fringe participant
d) Insignificant

20. Challenges for the trucking industry include

a) Lack of flexibility
b) Limited equipment options
c) Oversupply of qualified drivers
d) Competition

21. Railroads fall into a group called

a) Non-integrated carriers
b) Intermodal operation
c) Natural monopolies
d) Service challenged carriers

22. Trade imbalances affect

a) Water carriers
b) Motor carriers
c) Railroads
d) Pipelines

Chapter 12
1. All EXCEPT one are reasons for Collaborative relationship FAILURe
a) Lip-service commitment
b) Human compatibility
c) Unclear goals
d) Lack of trust

2. Which of the following statements is true?

a) A 3PL company is a professional logistics service provider meeting the logistics requirements of an
organization and can also integrate its resources, capability, and technology in order to provide
comprehensive solution to its customers.
b) A 3PL company is a professional logistics service provider meeting only the logistics requirements of
an organization
c) A 3PL is a logistics service provider meeting only the logistics requirements of an organization while
4PL is a logistics service provider meeting the logistics requirements of an organization and can also
integrate its resources, capability and technology to provide comprehensive solution to its
customers.

d) A 4PL company is a professional logistics service provider meeting only the logistics requirements of
an organization.

e) A 4PL company is a professional logistics service provider meeting the logistics requirements of an
organization and can also integrate its resources, capability, and technology in order to provide
comprehensive solution to its customers.

3. Many organizations are working more closely with

a) Third-party logistics firms
b) Customers, suppliers and various types of logistics suppliers
c) Customers

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d) Customers and supplier

4. Whether the relationship may or may not be with a provider of logistics services, today’s supply chain
relationships are most effective when collaboration occurs among the ___ who are involved
a) Third part logistics providers
b) Suppliers
c) Customers
d) Participants

5. Vertical collaboration refers to

a) Collaboration with competitors
b) Collaboration among buyers and sellers in the supply chain
c) Collaboration that moves up the supply chain
d) Collaboration among carriers and shippers

6. Horizontal collaboration refers to a relationship that is ____ and/or ______.

a) Collaboration with horizontal and/or vertical competitors
b) 3PLS to 3PLs and/or service provider to service provider
c) Buyer to buyer and/or seller to seller
d) Flat across the chain and/or involvement partners equal in size

7. Full collaboration is the dynamic combination of

a) Buyer and sellers only
b) Both vertical and horizontal collaboration
c) Buyers, sellers, retailers, 3PLs and appropriate government agencies
d) Buyers and sellers, retailers and 3PLs

8. A third party logistics firm may be defined as

a) An outsource service
b) A firm that owns trucks and warehouse
c) A firm that owns trucks and warehouses and provides computer support
d) An external supplier that performs or manages all or part of a company’s logistics functions

9. The least-frequently used IT-based services by customers of 3PLs are:

a) Strategic and customer related
b) Global trade management and transport sourcing
c) Warehouse/distribution management
d) Transportation management (execution)

10. While available evidence supports the fact that the president or CEO and the finance executive are
often involved with the identification of the need for logistic services
a) A 4PL will suggest greater collaboration
b) Customers are demanding a change
c) Off shore sourcing will point to greater need
d) Executives from other areas in the company are also aware of such needs but to a lesser degree

11. Approximately two-thirds of 3Pl customers think their providers supply

a) Trucking and warehousing services
b) Tactical or operational services
c) Strategic or integrative services
d) A firm that can supply a competency that is not core to the firm

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Chapter 14

1. The transition from information hoarding to information sharing is heavily dependent on all EXCEPT
one of the following factors
a) Technology
b) Trust
c) Confidentiality
d) Price

2. All EXCEPT one of are the factors of the global operations supply chain vulnerability. Which one is not?
a) Geographical distance
b) Political diversity
c) Insurance policy
d) Different economic environment

3. Electronic Data Interchange (EDI)

a) Is the exchange of all business documents
b) Is the exchange of business documents in a standard format
c) Consolidates purchasing orders from all suppliers
d) Acts as a centralized agent to coordinate information flows

4. An ERP system falls under:

a) Supply chain decision support
b) Supply chain transaction execution
c) Supply Chain collaboration and coordination
d) Supply chain performance measurement and reporting

5. ERP systems are web-based, open to integrate and interoperate with other systems, and built around
modules or components
a) True
b) False

6. The textbook provides an example of how SanDisk improved forecast accuracy by 25%, and
achieved higher inventory turns and a lower cost structure as a result of implementing
a) A new supply chain execution tool
b) Business intelligence tools
c) An advanced planning solution
d) New ERP systems

7. Due to mergers and acquisitions in the software industry and ERP vendors moving into the
supply chain applications market space, it is possible to purchase
a) Best of breed solutions from leading providers in each category
b) Supply chain software suites that combine planning, execution, event management
and related capabilities
c) Spreadsheet software with expanded capabilities
d) Event management tools that monitor the supply chain for events that are out of
tolerance
8. On demand supply chain software that is not installed on a company computer is gaining in popularity.
An issue to be addressed with this purchase option is
a) Functionality may not be as robust as traditional software
b) Data control is an issue
c) Total cost of ownership could exceed purchase cost over the long run
d) All of these

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9. The ______ of demand, customer orders, delivery status, inventory stock levels, and production
schedules provides managers with the knowledge needed to make effective situational assessments
and develop appropriate responses
a) Visibility
b) Availability
c) Accuracy
d) Accountability

10. Which of the below is not part of the seven Rs of logistics?

a) Information
b) Cost
c) Quality
d) Place

11. Which of the following is NOT one of the five drivers of sustainable supply chain management
practice?
a) Adaptability
b) Synchronization
c) Velocity
d) Execution

12. ______ is/are a major barrier to the effective use of information technology
a) Cost
b) People
c) Effective applications
d) Management support

13. The term supply chain information system (SCIS) is defined as

a) Software that manages the supply chain
b) Technology that has enhance the ability of companies to pay more attention to customers
c) Information system that automate the flow of information between a firm and its suppliers
d) Process management software that may or may not use ASP applications

14. Supply chain software that provides a platform for manufacturers, distributors and retailers to
aggregate and organise item-related data such as item number, price, description and weight is called
a) Business intelligence tools
b) Supply chain collaboration tools
c) Spreadsheets and database tools
d) Data synchronization tools

15. Supply chain software includes technologies that

a) Address virtually every function and task that occurs in the supply chain
b) Help organizations plan, execute and control supply chain activities in real time
c) Help to maintain visibility of inventory
d) All of these answers

16. ERP systems

a) Are taking the place of SCIS systems
b) Have information elements needed by SCIS applications
c) Require RFID to be fully functional
d) Focus primarily on manufacturing issues

17. Managers have several options for software development and implementation. They include:
a) Internal development
b) Third party logistic firms
c) External software vendors

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d) All of these answers

Chapter 15
1. Reverse logistics refers to
a) Returning trucks from deliveries
b) Backward scheduling deliveries
c) Movement of goods from customers back to the producer
d) Transport from the producer directly to the retailer

2. Reverse logistics are activities that focus on getting the right amount of the right products to
the right place at the right time at the lowest possible cost.
a) True
b) False

3. Which of the following is NOT one of the critical factors associated with the process of
managing returned goods
a) Why products are returned
b) How many products are retuned
c) Whether retuned goods should be managed internally or outsourced to be a third part
d) How to optimize reverse logistics

4. Supply chains designed and managed to explicitly consider both forward and backward flows
activities in supply chain is called
a) Closed loop supply chain
b) Open system supply chain
c) Reversed logistics supply chain
d) Supply chain network

5. Which option below is the least desirable if you want to lower environmental impact?
a) Using less to begin with
b) Waste put in landfill
c) Reuse
d) Recycling

6. Recycling and environmental concerns

a) Are often related to regulatory policy at the local, state, and federal levels
b) Have led to waste steams being managed by 3PLS
c) Require the review of the feasibility of the materials requirement plan
d) Have led to green laws

7. Transportation may account for as much as ____ percent of the cost of reverse flow
a) 20
b) 25
c) 30
d) 35

8. A major challenge is _____ of total cost of the return flow processes

a) The estimation
b) The management
c) The tracking
d) The control

9. Total life cycle considerations (TLC)

a) Mean the analysis of a waste stream

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b) Are being considered by manufacturing

c) Can be critical to product differential
d) Are figuring more prominently into reverse logistics programs

10. Which of these does NOT belong in the recommendations of the Reverse Logistics Educational Council
a) Manufacturing
b) Gatekeeping
c) Zero returns
d) Information systems

11. From a business and supply chain perspective, _______ are usually based upon recognition that
industrial systems need to be in harmony with nature by no depleting resourced beyond their
replacement or regeneration rate
a) Life cycle practices
b) Ecological practices
c) Sustainability practices
d) Reverse logistics practices

12. Green procurement strategies usually require collaboration with _______

a) Senior executives
b) Suppliers or vendors
c) Legal departments
d) Green laws

13. The reverse direction of flow has often been regarded as a

a) Cost centre
b) Cost centre and a waste stream
c) Necessary evil
d) Cost centre, a waste stream but a necessary evil

14. Information and _____ are important dimensions of reverse logistics and closed loop supply chains
a) Transportation
b) Flow
c) Financials
d) Direction

15. Green laws have

a) Started reverse flows
b) Only recently been enacted
c) Had a major impact on firms
d) Are still being evaluated

16. The recent increased focus on reverse flows is attribute to

a) Pressure from environmental groups
b) Increase in the price of oil
c) The significant increase in volume of reverse flows
d) New environment legislation

17. Retailers lose, on average ____ percent of gross sales due to returns
a) 3-5
b) 4
c) 20
d) 30

18. A closed loop system deals with

a) green laws

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b) both forward and reverse flows

c) waste flow
d) recycling

19. A situation where a garage returns worn tires for retreading and receives them back is called a
a) Reverse logistic system
b) Closed loop system
c) Waste stream
d) Value added system

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