1. What has again become a major focal point of total quality management (TQM) programs?

 a. the logistics pipelineb. physical distributionc. Sourcingd. operations

2. Efficient consumer response (ECR) has generated savings in excess of $30 billion per year. What has been done with these savings?

 a. They have been passed on to

shareholders.b. They have been distributed among

supply chain members.c. They have been used to lower the price

paid by consumers for those products.d. They have been applied to company

overhead costs.

3. The utility that is created by moving goods from surplus points to points where demand exists is referred to as:

 a. formb. placec. timed. possession

4.Which is created when a product or service is at a point when demanded by customers?

 a. form utilityb. place utilityc. time utilityd. possession utility

5. A vendor's ability to provide a needed quality and quantity of material in a timed manner is which vendor selection criterion?

 a. qualityb. reliabilityc. locationd. capability

6. A critical factor in procurement is the selection of a vendor or supplier. Which of the criteria used for selection is usually the most important.

 a. geographical locationb. qualityc. reliabilityd. capability

7. Kristen purchased a new dishwasher at Greenland's Appliance store. She paid $399 for the dishwasher which included a one year warranty, delivery, and installation. What type of product did Kristen buy?

 a. tangible productb. core benefitc. augmented productd. enhanced product

8. The least important level of involvement for most companies would be view customer service as:

 a. an activityb. performance measures.c. a philosopher.d. none of the above.

9. All are principle reasons for holding materials inventory, except:

 a. purchase economiesb. speculative investments in raw

materialsc. transportation economiesd. improvement in customer service

10. Which reason for physical supply inventory involves purchases for hedging against future price increases, strikes, changing political policies, delayed deliveries, rising or falling interest rates, or currency fluctuations in world markets?

 a. safety stockb. speculative purchasesc. seasonal supplyd. maintenance of supply sources

11. How do carrying costs and order costs vary in the simple EOQ model?

 a. according to the time of the year and

seasonality of demandb. directlyc. inverselyd. not at all

12. What is the effect on inventory carrying costs if order size is increased and frequency of orders decreased?

 a. costs increaseb. costs decreasec. costs remain the samed. the effect cannot be determined

13.The centralization‑decentralization issue, in its most basic form, asks which question?

 a. Who shall own the warehouse?b. How large should the warehouse be?c. What will be stored in the warehouse?d. How many warehouse shall there be?

14. Which decision is one that involves the number of warehouses a firm should have?

 a. transportation cost‑maximization

decisionb. an inventory cost decisionc. a centralization/ decentralization

decisiond. a link‑node maximization decision

15. Which of the following is not one of the basic processes or procedures of materials handling?

 a. movementb. timec. quantityd. quality

16. Which are the elements of the basic aspects of materials handling

 a. movement, time, quantity, and spaceb. multiple interests, coordination,

warehousing, and containerizationc. equipments, efficiency, productivity,

and packagingd. packaging, capacity, service, and labor

17. What are the typical characteristics of commodities transported by air carriage?

 a. low value to weight relationshipb. high weight to density relationshipc. high value to weight relationshipd. high density to volume relationship

18. The speed of the pipeline is very slow; less than 10 miles per hour. The slow transit time is compensated by

 a. the high oust of service characteristicb. shipments traveling 24 hours per dayc. the modes high accessibilityd. high commodity flexibility

19. All are common carrier exceptions to liability, except:

 a. act of public authorityb. act of default by shipperc. act of Godd. act of public enemy 

20. What is the carrier’s invoice for charges incurred in the movement of a given shipment called?

 order bill of ladingstraight bill of ladingfreight claimfreight bill

21. The time that elapses from the placement of an order until receipt of the order when referring to the acquisition of additional inventory is called

 a. cycle throughputb. placement cyclec. order cycled. replenishment cycle

22. A study of manufacturing and merchandising firms revealed how customer orders entered the order processing system. The two most frequent means are:

 a. salesman and phoneb. phone and salesmanc. electronic and maild. phone and electronic

23. The location selection team formed for the facility location decision process:

 a. collects information on specific

qualitative attributesb. makes the final location decisionc. includes workers from divisional levels

onlyd. is created informally in large

corporations

24. Which major locational determinant considers locating near the competition?

 a. labor climateb. quality of lifec. company preferenced. supplier networks

25. Which is a major category of ocean shipping?

 a. passenger travelb. common carriersc. exempt carriersd. liner vessels

The End!