1. 1.Product line expansion, rate increases, and high ‑ valued products are the mitigating factors that caused companies to manage what more efficiently? a.physical distribution b.integrated logistics management c.inbound systems d.inventory management ANSWER: a, p. 5

2. 2. The inclusion of purchasing/procurement as part of the inbound logistics system added significantly to the opportunity to reduce costs. When did this begin? a.1940s - 1950s b.1960s­ - 1970s c.1970s - 1980s d.1980s - 1990s ANSWER: c, p. 6

3. 3.From the perspective of the seller the time element of customer service usually concerns order cycle time. On the other hand from the perspective of the buyer, the time element concern is lead time. a.Both statements are true. b.The first statement is true and the second is false. c.The first statement is false and the second is true. d.Both statements are false. ANSWER: a, p. 114 ‑ 115

4. 4. What is referred to as the; glue" for the individual logistics system and even the supply chain? a.inventory b.customer service c.partnerships d.performance measures ANSWER: a, p. 117

5. 5. The value that is added to a good through a manufacturing, production, or assembly process is: a form utility b.place utility c.time utility d.possession utility ANSWER: a, p. 34

6. 6. A product's form utility is created u hen value is added to the product through a manufacturing, production or assembly process. However. logistics activities can preside form utility also. Which describes the creation of form utility by a logistics activity? a. when lumber is cut and made into a chair. b. when a firm's finance manager approves customer purchases on a credit basis. c. when bulk computer disks in different colors, are packed in three color assortments for sale to computer users. d. when flour' mills, and shortening are combined to bake loafs of bread ANSWER: c, p. 34

7. 7.Consumer demand for finished goods trigger the physical distribution function and increases production. Which logistics function next comes into play? a.marketing b.customer relations c.materials management d.receiving ANSWER: c, p. 72

8. 8.The inbound system of logistics is frequently referred to as: a.physical distribution b.materials management c.supply chain management d.all of the above ANSWER: b, p. 72

9. 9.Which is not a reason for holding physical distribution inventories? a.maintenance of sources of supply b.seasonality of demand c.production economies d.transportation economies ANSWER a, p. 165

10. 10.An inventory decision should consider safety stock when there is a chance of: a.turnover b.over-ordering c.stockout d.oversupply ANSWER c, p. 167

11. 11.In the simple EOQ model, the reorder point is: a.the maximum amount needed for sales during the time it takes to replenish inventory b.the minimum amount needed for sales during the time it takes to replenish inventory c.the time necessary for a company to process an order d.a concept required to minimize total inventory costs ANSWER: b, p 202

12. 12.Using the fixed order quantity model under conditions of certainty, which is the reorder point if lead time is a constant 5 days. and yearly demand is 10,000 units (assume 250 working days in the year)? a.100 b.200 c.400 d.5,000 ANSWER: b, p 202

13. 13.What are the two basic warehouse operations? a.movement and order processing b.movement and storage c.storage and inventory control d.purchasing and storage ANSWER: b, p. 254

14. 14.What is the first step in warehouse space requirements determination? a.forecast warehousing costs b.forecast inventory and safety stock c.develop a demand forecast d.develop an economic order quantity model ANSWER: c, p. 255

15. 15.In materials handling, improvement of operating efficiency is measured by: a.the number of times goods are handled b.the cubic capacity of the warehouse c.the efficiency in use of aisle space d.the reduction in the number of aisle accidents ANSWER: a, p. 286

16. 16.Which is an important reason for major investment by businesses in automated materials handling equipment? a.prestige b.reduction in transit time c.shorter order cycles d.reduction in materials handling labor cost ANSWER: d, p. 289

17. 17.Which is usually the most important determinant for selecting a particular carrier from within one mode? a.transit time reliability b.equipment availability c.line haul services d.claims processing ANSWER a, pp. 322 ‑ 323

18. 18.Which mode of transportation is used to primarily move low value, high density commodities? a.rail and motor b.air and motor c.water and motor d.water and rail ANSWER: d p.325 and p. 331

19. 19.In international shipments. what does the term of sale ex works (EXW) stipulate? a.the seller agrees to deliver the goods to the dock b.the seller’s price quote applies only at the point of origin c.the price quoted by the seller includes transportation to a named point d.F.O.B. origin delivery ANSWER: b, p. 368

20. 20.Which applies when rates are based upon the cost of service pricing model? a.the demand for the service establishes the lower limit of the rate b.the supply side of pricing is considered c.only the common costs incurred must be covered by the carrier d..only fixed costs have to covered by the carrier ANSWER: b, p. 373

21. 21.Which can be expected from electronic data interchange? a.significant improvements in the breadth, timeliness, and quality of data b.lower inventory transaction costs c.improvements in comprehensive database management d."best" answers for logistics problems being formulated ANSWER: a, p. 404

22. 22.Which type of environmental scanning is a relatively limited and unstructured effort to obtain specific information or information for a specific purpose? a.undirected viewing b.conditioned viewing c.informal search d.formal search ANSWER: c, p. 418

23. 23.Which is not a trend in today's logistics environment that may have significant effects on decisions involving logistics facility location. a.cross ‑ docking b.use of third ‑ party suppliers c.direct, plant ‑ to customer shipments d.decentralized facilities ANSWER: d, p. 153

24. 24.British Importers buys clothing and food items from British manufactures for sale to the tourist trade. British started its business in California but in recent years its market shifted to the East Coast. British is considering relocation to the Fact Coast because of the distance to its market and from its suppliers. Which are important locational determinants for British Importers? a.logistics b.marketing c.financial d.operations ANSWER: a, p. 449

25. 25.International air freight has the disadvantage of: a.reliability b.short transit times c.high freight rates d.low freight rates ANSWER: c, p. 503