CLM - Pittsburgh Roundtable 2004 College Challenge 2004 College Challenge Ground Rules Final Round Two teams with top scores from each preliminary round 15 questions (5 5-point, 5 10-point, 5 15-point) Tie breaker questions used as necessary Team with highest score is declared the winner !

CLM - Pittsburgh Roundtable 2004 College Challenge 2004 College Challenge Ground Rules  Schools invited to attend submitted questions and answers in previous years  Questions and answers used this year were reviewed by independent Logistics Full Professor from major University  All decisions of the judges (Pgh. CLM Roundtable) are final!  Competition is lighthearted and fun! So is the outcome! Enjoy!

CLM - Pittsburgh Roundtable 2004 College Challenge 2004 College Challenge Final Round, First Question Click to move to question on next page!

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 1 Which of the following is not a characteristic of integrated supply chain management? A.Increased knowledge of point-of-sale exchanged with suppliers B.Greater management emphasis on deep functional knowledge C.Generation of economies of scale and enhanced bargaining power with suppliers D.Lower cost structures due to decreased inventory levels and administrative costs 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 1 Which of the following is not a characteristic of integrated supply chain management? A.Increased knowledge of point-of-sale exchanged with suppliers B.Greater management emphasis on deep functional knowledge C.Generation of economies of scale and enhanced bargaining power with suppliers D.Lower cost structures due to decreased inventory levels and administrative costs 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 2 In the United States, which of the following modes was deregulated first? A.railroads B.trucking C.air passenger service D.air freight service 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 2 In the United States, which of the following modes was deregulated first? A.railroads B.trucking C.air passenger service D.air freight service 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 3 Which of the following is NOT a commonly cited benefit of EDI implementation. A. Improved order accuracy due to a reduction in manual processing B. Increased speed of transmission of the order and other data C. Increased paperwork D. Improved information availability 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 3 Which of the following is NOT a commonly cited benefit of EDI implementation. A. Improved order accuracy due to a reduction in manual processing B. Increased speed of transmission of the order and other data C. Increased paperwork D. Improved information availability 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 4 All of the following are objectives of materials handling, except: A. move product in bulk form B. standardize handling methods C. make optimum use of building cube D. simplify handling by eliminating unnecessary movements E. all of the above are materials handling objectives 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 4 All of the following are objectives of materials handling, except: A. move product in bulk form B. standardize handling methods C. make optimum use of building cube D. simplify handling by eliminating unnecessary movements E. all of the above are materials handling objectives 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 5 True or False The Pareto rule states that 80 percent of customers account for 20 percent of profits. 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 5 TRUE The Pareto rule states that 80 percent of customers account for 20 percent of profits. 5 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 6 Assuming constant usage, an increase of 100 units in the order quantity will cause: A. an increase of 100 units in average inventory B.a decrease in average inventory of 50 units C.an increase in average inventory of 50 units D.a decrease of 50 units in average inventory Ecannot be determined--not enough information given 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 6 Assuming constant usage, an increase of 100 units in the order quantity will cause: A. an increase of 100 units in average inventory B.a decrease in average inventory of 50 units C.an increase in average inventory of 50 units D.a decrease of 50 units in average inventory E.cannot be determined--not enough information given 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 7 Which of the following represents an activity that may be completed in a distribution center of the future? A Filling customer need for product assortment from inventory B. Placing orders to replenish depleted stock in the Distribution Center C. Merging multiple parts of a single customer order from different suppliers. D. Managing safety stock levels of “A” products to meet customer demand 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 7 Which of the following represents an activity that may be completed in a distribution center of the future? A Filling customer need for product assortment from inventory B. Placing orders to replenish depleted stock in the Distribution Center C. Merging multiple parts of a single customer order from different suppliers. D. Managing safety stock levels of “A” products to meet customer demand 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 8 Rather than placing inventories of highly seasonal items year-round in warehouse facilities, many companies decide to use. A. Spot stocking B. Larger assortments C. Smaller assortments D. Third-party consignment specialists 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 8 Rather than placing inventories of highly seasonal items year-round in warehouse facilities, many companies decide to use. A. Spot stocking B. Larger assortments C. Smaller assortments D. Third-party consignment specialists 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 9 Which of the following is an example of an intermediate customer? A. The kid who buys a bicycle B. The buyer at K-Mart headquarters C. The next person on the production line. D. The ultimate consumer 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 9 Which of the following is an example of an intermediate customer? A. The kid who buys a bicycle B. The buyer at K-Mart headquarters C. The next person on the production line. D. The ultimate consumer 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 10 Average cycle stock inventory equals: A. Half the order quantity. B. The square root of the order quantity. C. The order quantity times the turns. D. The order quantity level. 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answser10 Average cycle stock inventory equals: A. Half the order quantity. B. The square root of the order quantity. C. The order quantity times the turns. D. The order quantity level. 10 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 11 Which best describes what is meant by demand management ? A. The management of marketing plans to increase demand for products B. The effort to strategically influence customer demand positively or negatively C. The process of estimating customer demand D. The process of planning supply to meet demand 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 11 Which best describes what is meant by demand management ? A. The management of marketing plans to increase demand for products B. The effort to strategically influence customer demand positively or negatively C. The process of estimating customer demand D. The process of planning supply to meet demand 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 12 A firm has average inventory of $300,000. It orders twice per year. The cost of holding inventory is 15% per year. What is the annual inventory carrying cost? A. $50,000 B. $45,000 C. $90,000 D. $22, points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer12 A firm has average inventory of $300,000. It orders twice per year. The cost of holding inventory is 15% per year. What is the annual inventory carrying cost? A. $50,000 B. $45,000 C. $90,000 D. $22, points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 13 True or False JIT seeks to make the supply chain management system more predictable by increasing variance at all levels of the chain 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 13 False JIT seeks to make the supply chain management system more predictable by increasing variance at all levels of the chain 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 14 Full manufactured cost is $10/case and variable manufactured cost is $7/case. If an advanced order processing system is installed, it is estimated that, due to an increased number of planning days, average inventory levels can be decreased from 100,000 cases to 50,000 cases. If the inventory carrying cost is 25%, what will be the estimated annual savings in the inventory carrying costs? Question Continued 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 14 Continued A. $250,000 B. $87,500 C. $125,000 D. $12,500 E. $50, points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Answer 14 A. $250,000 B. $87,500 C. $125,000 D. $12,500 E. $50, points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 15 A key dimension of trucking economic regulation involved the designation of truckers as “common carriers” or “contract carriers,” with common carriers being required to serve the public at large on a nondiscriminatory basis. Since passage of the ICC Termination Act of 1995: Common carrier obligations continue despite partial economic deregulation Common carriage continues but contract carriage does not Rate regulation of individual carrier pricing continues Contract carriage continues but common carriage does not There is no longer a distinction between common and contract carriage 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Question 15 Continued A.Common carrier obligations continue despite partial economic deregulation B.Common carriage continues but contract carriage does not C.Rate regulation of individual carrier pricing continues D.Contract carriage continues but common carriage does not E.There is no longer a distinction between common and contract carriage 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round - Answer 15 A.Common carrier obligations continue despite partial economic deregulation B.Common carriage continues but contract carriage does not C.Rate regulation of individual carrier pricing continues D.Contract carriage continues but common carriage does not E.There is no longer a distinction between common and contract carriage 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 1 Question Which mode currently carries the largest share of intercity freight ton-miles in the U.S.? A. air B. rail C. water D. motor E. pipeline 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 1 Answer Which mode currently carries the largest share of intercity freight ton-miles in the U.S.? A. air B. rail C. water D. motor E. pipeline 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 2 Question In the U.S. following deregulation, and absent contract language otherwise, trucking companies are: A. Not liable for damage to goods B. Are only liable for up to $2.00/pound of damage C. Are only liable if there are no “Acts of God” that contribute to the damage D. Liable for the full value of any damage E. Liable for up to $10/pound of damage 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 2 Answer In the U.S. following deregulation, and absent contract language otherwise, trucking companies are: A. Not liable for damage to goods B. Are only liable for up to $2.00/pound of damage C. Are only liable if there are no “Acts of God” that contribute to the damage D. Liable for the full value of any damage E. Liable for up to $10/pound of damage 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 3 Question If a firm decides to order more than the economic order quantity what will happen? A.annual ordering costs will decrease B.annual inventory carrying costs will decrease C. total annual costs will decrease D. all of the above E. none of the above 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 3 Answer If a firm decides to order more than the economic order quantity what will happen? A.annual ordering costs will decrease B.annual inventory carrying costs will decrease C. total annual costs will decrease D. all of the above E. none of the above 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 4 Question Which of the following is not a benefit of EDI? A. Electronic funds transfer B. Increased data accuracy C. Increased productivity D. Better assortment of goods 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 4 Answer Which of the following is not a benefit of EDI? A. Electronic funds transfer B. Increased data accuracy C. Increased productivity D. Better assortment of goods 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 5 Question You have been tasked with cutting costs in your DC. Which of the following would you do? A. Lower customer service levels to allow the Distribution Center to store less safety stock B. Build additional storage capacity with automated material handling capabilities C. Cross-dock deliveries from suppliers to customers for high turn items D. Decentralize distribution to more facilities located closer to markets 15 points

CLM - Pittsburgh Roundtable 2004 College Challenge Final Round – Tie Break 5 Answer You have been tasked with cutting costs in your DC. Which of the following would you do? A. Lower customer service levels to allow the Distribution Center to store less safety stock B. Build additional storage capacity with automated material handling capabilities C. Cross-dock deliveries from suppliers to customers for high turn items D. Decentralize distribution to more facilities located closer to markets 15 points