1. CLM - Pittsburgh Roundtable 2004College Challenge 2004 College Challenge Ground Rules Two Preliminary Rounds, teams randomly chosen 15 questions each round (5 5-point questions, 5 10-point, 5 15-point questions) Two teams with highest score in each round move on to Final Round Tie breaker questions used as necessary

2. CLM - Pittsburgh Roundtable 2004College Challenge 2004 College Challenge Ground Rules  Schools invited to attend submitted questions and answers in previous years, some new questions this year  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!

3. CLM - Pittsburgh Roundtable 2004College Challenge 2004 College Challenge Round One, First Question Click to move to first question on next slide!

4. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 1 Below are five logistics and transportation industry acronyms and their meanings; which is incorrect? A. FAK -- Freight-All-Kinds B. MRP -- Materials Requirements Planning C. POS -- Point-of-Sale D. VMI -- Value-Maximized Inventories E. STB -- Surface Transportation Board 5 points

5. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 1 Below are five logistics and transportation industry acronyms and their meanings; which is incorrect? A. FAK -- Freight-All-Kinds B. MRP -- Materials Requirements Planning C. POS -- Point-of-Sale D. VMI -- Value-Maximized Inventories E. STB -- Surface Transportation Board 5 points

6. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 2 All of the following are needed to manage a supply chain EXCEPT what? a. Supply chain orientation b. Long term focus c. Appropriate measures and rewards d. Improved performance 5 points

7. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 2 All of the following are needed to manage a supply chain EXCEPT what? a. Supply chain orientation b. Long term focus c. Appropriate measures and rewards d. Improved performance 5 points

8. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 3 Which of the following is not a common carrier exception for liability? a. public authority b.act of the shipper c.act of God d.act of public enemy e.inherent nature of the carrier’s operation 5 points

9. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Answer 3 Which of the following is not a common carrier exception for liability? a. public authority b.act of the shipper c.act of God d.act of public enemy e.inherent nature of the carrier’s operation 5 points

10. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 4 ________________ refers to time that elapses between the customer’s order placement and the time the product is received. A. Just-in-time delivery B. Order cycle C. Manufacturing lead time D. Continuous replenishment 5 points

11. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 4 _______________ refers to time that elapses between the customer’s order placement and the time the product is received. A. Just-in-time delivery B. Order cycle C. Manufacturing lead time D. Continuous replenishment 5 points

12. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 5 Which of the following is a type of purchase order that reduces the cost of issuing and handling purchase orders? a.Blanket order b.Engineering order c.Mattress order d.Direct order 5 points

13. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 5 Which of the following is a type of purchase order that reduces the cost of issuing and handling purchase orders? a.Blanket order b.Engineering order c.Mattress order d.Direct order 5 points

14. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 6 Nationwide, every year, truckers contribute about how much to the Highway Trust Fund?: A. $3 billion B. $5 billion C. $10 billion D. $14 billion E. $20 billion 10 points

15. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 6 Nationwide, every year, truckers contribute about how much to the Highway Trust Fund?: A. $3 billion B. $5 billion C. $10 billion D. $14 billion E. $20 billion 10 points

16. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 7 The channel practice in which a seller requires a buyer to purchase a second product, in addition to the original product of interest, is called: a.exclusive dealing b.tying c.vertical integration d.resale price maintenance e.dual distribution 10 points

17. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 7 The channel practice in which a seller requires a buyer to purchase a second product, in addition to the original product of interest, is called: a.exclusive dealing b.tying c.vertical integration d.resale price maintenance e.dual distribution 10 points

18. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 8 ABC inventory management is based upon the Pareto Principle and suggests that A. 80% of inventory should be bought on credit B. 20% of inventory is unimportant and, therefore, needs no management C. 20% of your customers or products will account for 80% of your sales D. An 80% fill rate on most products will be adequate 10 points

19. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 8 ABC inventory management is based upon the Pareto Principle and suggests that A. 80% of inventory should be bought on credit B. 20% of inventory is unimportant and, therefore, needs no management C. 20% of your customers or products will account for 80% of your sales D. An 80% fill rate on most products will be adequate 10 points

20. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 9 1. The system that determines demand for inventory at retail or distribution centers and, then, consolidates the demand information backwards for input into the production and materials systems is referred to as: A. MRP B. ROP C. EOQ D. JIT E. DRP 10 points

21. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 9 1. The system that determines demand for inventory at retail or distribution centers and, then, consolidates the demand information backwards for input into the production and materials systems is referred to as: A. MRP B. ROP C. EOQ D. JIT E. DRP 10 points

22. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Question 10 A paint store stocks a large supply of tints and a base color (e.g., white). No finished product exists until a customer specifies a color, at which time a worker adds tint to the base color to assemble the finished paint to order. By waiting until the customer specifies the exact color desired, the paint store avoids the problem of inventorying many premixed paints. This approach is most commonly referred to as: a.Postponement b.Make-to-stock c.Engineer-to order d.Make-to-order 10 points

23. CLM - Pittsburgh Roundtable 2004College Challenge First Round - Answer 10 A paint store stocks a large supply of tints and a base color (e.g., white). No finished product exists until a customer specifies a color, at which time a worker adds tint to the base color to assemble the finished paint to order. By waiting until the customer specifies the exact color desired, the paint store avoids the problem of inventorying many premixed paints. This approach is most commonly referred to as: a.Postponement b.Make-to-stock c.Engineer-to order d.Make-to-order 10 points

24. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Question 11 Which of the following provides the best example of form postponement? A. Use of regional distribution centers B. Processing batch orders instead of real-time C. Centralized inventory management for slow- moving items D. Sherwin-Williams’ stores doing customized color mixing of paints 15 points

25. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Answer 11 Which of the following provides the best example of form postponement? A. Use of regional distribution centers B. Processing batch orders instead of real-time C. Centralized inventory management for slow- moving items D. Sherwin-Williams’ stores doing customized color mixing of paints 15 points

26. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Question 12 As the number of warehouses used by a company increases: A. transport costs will decrease; inventory costs and cost of lost sales will increase. B. transport costs and cost of lost sales will increase; inventory costs will decrease. C. transport costs and inventory costs will decrease; cost of lost sales will increase. D. transport costs and cost of lost sales will decrease; inventory costs will increase. E. None of the above. 15 points

27. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Answer 12 As the number of warehouses used by a company increases: A. transport costs will decrease; inventory costs and cost of lost sales will increase. B. transport costs and cost of lost sales will increase; inventory costs will decrease. C. transport costs and inventory costs will decrease; cost of lost sales will increase. D. transport costs and cost of lost sales will decrease; inventory costs will increase. E. None of the above. 15 points

28. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Question 13 A general manager calls routine meetings of purchasing and traffic managers to ensure that each is aware of the freight movements being arranged by the other and to identify opportunities for cost savings. Which of the following forms of consolidation is most likely to result from this? A.Vehicle consolidation B.Temporal consolidation C.Spatial consolidation D.Inbound/outbound consolidation 15 points

29. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Answer 13 A general manager calls routine meetings of purchasing and traffic managers to ensure that each is aware of the freight movements being arranged by the other and to identify opportunities for cost savings. Which of the following forms of consolidation is most likely to result from this? A.Vehicle consolidation B.Temporal consolidation C.Spatial consolidation D.Inbound/outbound consolidation 15 points

30. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Question 14 In which of the following situations would the manufacturer’s logistics function have the most control over transportation? A. raw materials purchased F.O.B. origin, and finished products sold F.O.B. delivered B. raw materials purchased F.O.B. delivered, and finished products sold F.O.B. origin C. raw materials purchased F.O.B. origin, and finished products sold F.O.B. origin D. none of the above 15 points

31. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Answer 14 In which of the following situations would the manufacturer’s logistics function have the most control over transportation ? A. raw materials purchased F.O.B. origin, and finished products sold F.O.B. delivered B. raw materials purchased F.O.B. delivered, and finished products sold F.O.B. origin C. raw materials purchased F.O.B. origin, and finished products sold F.O.B. origin D. none of the above 15 points

32. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Question 15 We have a buyer-supplier relationship having the following traits: Multiple suppliers: Emphasis on confrontation Zero-sum game perspective Short term orientation Suppliers viewed as easily substitutable CONTINUED NEXT SLIDE 15 points

33. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Question 15 Continued These traits are most closely associated with which of the following relational forms? A. Single Transaction (old paradigm) B. Vertical Marketing C. Lean Supply Chain Relationships D. Virtual Corporation 15 points

34. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Answer 15 These traits are most closely associated with which of the following relational forms? A. Single Transaction (old paradigm) B. Vertical Marketing C. Lean Supply Chain Relationships D. Virtual Corporation 15 points

35. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 1 Question When planning product layout in a grocery retail distribution facility, you must decide where to place several items. Total sales volume Complementarity and compatibility of items Cost of goods sold Question Continued 15 points

36. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 1 Question Continued 15 points Which of the following represent major considerations? A. I and II B. I and III C. II and III D. II and IV

37. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 1 Answer 15 points Which of the following represent major considerations? A. I and II B. I and III C. II and III D. II and IV

38. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 1 Answer 15 points Which of the following represent major considerations? A. I and II B. I and III C. II and III D. II and IV

39. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 2 Question 15 points You have ½ a truckload going to Sparks, NV and ½ a truckload going to Ontario that you combine onto the same truck. This is an example of: a.Consolidation b.Assortment c.Order filling accuracy d.Parallel processing

40. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 2 Answer 15 points You have ½ a truckload going to Sparks, NV and ½ a truckload going to Ontario that you combine onto the same truck. This is an example of: a.Consolidation b.Assortment c.Order filling accuracy d.Parallel processing

41. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 3 Question 15 points IMC’s are: A. Interstate Management Carriers B. Firms that specialize in international air freight C. Ocean freight specialists D. Firms that specialize in domestic intermodal

42. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 3 Answer 15 points IMC’s are: A. Interstate Management Carriers B. Firms that specialize in international air freight C. Ocean freight specialists D. Firms that specialize in domestic intermodal

43. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 4 Question 15 points Inventory carrying costs include all of the following EXCEPT: A. Capital costs B. Inventory service costs C. Packaging and materials handling D. Storage space costs E. Inventory risk costs

44. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 4 Answer 15 points Inventory carrying costs include all of the following EXCEPT: A. Capital costs B. Inventory service costs C. Packaging and materials handling D. Storage space costs E. Inventory risk costs

45. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 5 Question 15 points The sequence and organization of all activities needed to convert inputs into outputs is: A. The schedule B. A process C. Functionality D. Logistics

46. CLM - Pittsburgh Roundtable 2004College Challenge First Round – Tie Break 5 Answer 15 points The sequence and organization of all activities needed to convert inputs into outputs is: A. The schedule B. A process C. Functionality D. Logistics

47. CLM - Pittsburgh Roundtable 2004College Challenge 2004 College Challenge Round 2- First Question Click to move to first question on next slide!

48. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 1 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 5 points

49. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Answer 1 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 5 points

50. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 2 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 5 points

51. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 2 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 5 points

52. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 3 The retailer supply chain management strategy know as “VMI” refers to: a.retailers taking more control over their vendors b.retailers asking vendors to take control of the supply chain c.“Variable Minimum Inventories” d.vendors taking a more broad based management view 5 points

53. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 3 The retailer supply chain management strategy know as “VMI” refers to: a.retailers taking more control over their vendors b.retailers asking vendors to take control of the supply chain c.“Variable Minimum Inventories” d.vendors taking a more broad based management view 5 points

54. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 4 Bar coding systems are useful in purchasing for which of the following activities? A.Receiving inbound materials and order generation B.Incoming inspection and quality control C.Obtaining price quotes D.Determining availability of items from supplier E.Transmitting purchase orders 5 points

55. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 4 Bar coding systems are useful in purchasing for which of the following activities? A.Receiving inbound materials and order generation B.Incoming inspection and quality control C.Obtaining price quotes D.Determining availability of items from supplier E.Transmitting purchase orders 5 points

56. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 5 Which mode of transportation transports more than 75% of the annual tonnage of agricultural products in the U.S. A. Motor B. Rail C. Air D. Water E. Pipeline 5 points

57. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 5 Which mode of transportation transports more than 75% of the annual tonnage of agricultural products in the U.S. A. Motor B. Rail C. Air D. Water E. Pipeline 5 points

58. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 6 Which of the following statements about interstate and intrastate transportation is correct : A. Interstate is within states and intrastate is between states B. Interstate is between states and intrastate is within states C. Interstate and intrastate are basically the same thing D. The federal government regulates intrastate and states regulate interstate 10 points

59. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 6 Which of the following statements about interstate and intrastate transportation is correct : A. Interstate is within states and intrastate is between states B. Interstate is between states and intrastate is within states C. Interstate and intrastate are basically the same thing D. The federal government regulates intrastate and states regulate interstate 10 points

60. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 7 What is customer value? A. A tradeoff between the benefits created for a customer and sacrifices incurred by the customer to obtain the benefits B. Whatever the supplier says it is C. Whatever a firm thinks it should provide the customer D. A tradeoff between the sacrifices incurred by the supplier and the benefits created from customer sales 10 points

61. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 7 What is customer value? A. A tradeoff between the benefits created for a customer and sacrifices incurred by the customer to obtain the benefits B. Whatever the supplier says it is C. Whatever a firm thinks it should provide the customer D. A tradeoff between the sacrifices incurred by the supplier and the benefits created from customer sales 10 points

62. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 8 Which of the following sets of characteristics will lead to the lowest freight class designation: A. High density, high value B. Low density, low value C. Low density, high value D. High density, low value 10 points

63. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 8 Which of the following sets of characteristics will lead to the lowest freight class designation: A. High density, high value B. Low density, low value C. Low density, high value D. High density, low value 10 points

64. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 9 All of the following pertain to the function of logistics EXCEPT: a. It is the planning and control of the flow and storage of products b. It is one of the functions needed for supply chain management c. It contributes to market efficiency by connecting the customer and product d. It consists of transportation, inventory and demand management 10 points

65. CLM - Pittsburgh Roundtable 2004College Challenge Second Round –Answer 9 All of the following pertain to the function of logistics EXCEPT: a. It is the planning and control of the flow and storage of products b. It is one of the functions needed for supply chain management c. It contributes to market efficiency by connecting the customer and product d. It consists of transportation, inventory and demand management 10 points

66. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 10 International trade terms (INCOTERMS) can be categorized into four groups, namely C, D, E, and F. An exporter has minimum responsibility with which group? A.C B.D CE D.F 10 points

67. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 10 International trade terms (INCOTERMS) can be categorized into four groups, namely C, D, E, and F. An exporter has minimum responsibility with which group? A.C B.D C.E D.F 10 points

68. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Question 11 Reducing the credit period, such as from 90 to 30 days, in order to improve cash flow and return on investment: A. is a purely financial decision which will have little or no influence on the logistics system. B. will cause customers to order in smaller quantities, (assuming they continue to purchase from the firm ) thereby increasing logistics costs for the supplier C. will improve the cash flow of customers. D. will cause customers to place larger orders, thereby decreasing logistics costs. E. None of the above 15 points

69. CLM - Pittsburgh Roundtable 2004College Challenge Second Round - Answer 11 Reducing the credit period, such as from 90 to 30 days, in order to improve cash flow and return on investment: A. is a purely financial decision which will have little or no influence on the logistics system. B. will cause customers to order in smaller quantities, (assuming they continue to purchase from the firm ) thereby increasing logistics costs for the supplier C. will improve the cash flow of customers. D. will cause customers to place larger orders, thereby decreasing logistics costs. E. None of the above 15 points

70. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Question 12 __________________ refer(s) to the mainframe applications that were developed prior to 1990 to automate transactions such as order entry, order processing, warehouse operations, inventory management, and transportation. A. WMS B. MRP II C. Virtual systems D. Legacy systems E. RFID 15 points

71. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Answer 12 __________________ refer(s) to the mainframe applications that were developed prior to 1990 to automate transactions such as order entry, order processing, warehouse operations, inventory management, and transportation. A. WMS B. MRP II C. Virtual systems D. Legacy systems E. RFID 15 points

72. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Question 13 A company should consider outsourcing when: A. They need to develop a new strategy for order fulfillment and consolidation B. They need to implement a new logistics strategy but cannot accomplish it internally C. They need to plan new specialized logistics services to meet customers’ needs D. They need to obtain senior management support for new inventory initiatives 15 points

73. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Answer 13 A company should consider outsourcing when: A. They need to develop a new strategy for order fulfillment and consolidation B. They need to implement a new logistics strategy but cannot accomplish it internally C. They need to plan new specialized logistics services to meet customers’ needs D. They need to obtain senior management support for new inventory initiatives 15 points

74. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Question 14 Which of the following is the most exacting measure of performance? A. Orders shipped complete B. Stockout frequency C. Number of complaints D. Fill rate E. Average fill rate 15 points

75. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Answer 14 Which of the following is the most exacting measure of performance? A. Orders shipped complete B. Stockout frequency C. Number of complaints D. Fill rate E. Average fill rate 15 points

76. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Question 15 New hours of service rules for truckers recently went into effect. These new rules will: A.Decrease the driving time allowed to 10 hours and increase the “on-duty” time to 15 hours. B.Increase the driving time allowed to 11 hours but reduce the “on-duty” time to 14 hours. C.No longer allow “waiting time” to be counted as “off duty.” D.A and C E.B and C 15 points

77. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Answer 15 New hours of service rules for truckers recently went into effect. These new rules will: A.Decrease the driving time allowed to 10 hours and increase the “on-duty” time to 15 hours. B.Increase the driving time allowed to 11 hours but reduce the “on-duty” time to 14 hours. C.No longer allow “waiting time” to be counted as “off duty.” D.A and C E.B and C 15 points

78. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 1 Question When making transportation decisions, managers should first develop a deep understanding of which of the following? AVehicle routing and scheduling decisions B. Network freight flows C. Freight lane characteristics D. Barriers to change within the organization 15 points

79. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 1 Answer When making transportation decisions, managers should first develop a deep understanding of which of the following? AVehicle routing and scheduling decisions B. Network freight flows C. Freight lane characteristics D. Barriers to change within the organization 15 points

80. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 2 Question In-transit inventories A. are items that are en route from one location to another B. are stock items that result from the replenishment process and are used to meet standard demand C. are not necessary with just-in-time systems D. from an accounting perspective, are the same as dead stock 15 points

81. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 2 Answer In-transit inventories A. are items that are en route from one location to another B. are stock items that result from the replenishment process and are used to meet standard demand C. are not necessary with just-in-time systems D. from an accounting perspective, are the same as dead stock 15 points

82. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 3 Question A higher operating ratio (closer to 100) for a carrier would mean that the carrier had: A. Higher operating profit B. Lower operating profit C. Higher maintenance costs D. Higher safety violation rates 15 points

83. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 3 Answer A higher operating ratio (closer to 100) for a carrier would mean that the carrier had: A. Higher operating profit B. Lower operating profit C. Higher maintenance costs D. Higher safety violation rates 15 points

84. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 4 Question Flexibility is the ability of a system to respond quickly to changes. Which of the following is not a type of flexibility? a.Mix (production mix) b.Changeover (major design changes) c.Modification (minor design changes) d.None of the above 15 points

85. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 4 Answer Flexibility is the ability of a system to respond quickly to changes. Which of the following is not a type of flexibility? a.Mix (production mix) b.Changeover (major design changes) c.Modification (minor design changes) d.None of the above 15 points

86. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 5 Question Below are five logistics and transportation industry acronyms and their meanings; which is incorrect? A. FAK -- Freight-All-Kinds B. MRP -- Materials Requirements Planning C. POS -- Point-of-Sale D. VMI -- Value-Maximized Inventories E. STB -- Surface Transportation Board 15 points

87. CLM - Pittsburgh Roundtable 2004College Challenge Second Round – Tie Break 5 Answer Below are five logistics and transportation industry acronyms and their meanings; which is incorrect? A. FAK -- Freight-All-Kinds B. MRP -- Materials Requirements Planning C. POS -- Point-of-Sale D. VMI -- Value-Maximized Inventories E. STB -- Surface Transportation Board 15 points

88. CLM - Pittsburgh Roundtable 2004College 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 !

89. CLM - Pittsburgh Roundtable 2004College 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!

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

91. CLM - Pittsburgh Roundtable 2004College 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

92. CLM - Pittsburgh Roundtable 2004College 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

93. CLM - Pittsburgh Roundtable 2004College 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

94. CLM - Pittsburgh Roundtable 2004College 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

95. CLM - Pittsburgh Roundtable 2004College 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

96. CLM - Pittsburgh Roundtable 2004College 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

97. CLM - Pittsburgh Roundtable 2004College 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

98. CLM - Pittsburgh Roundtable 2004College 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

99. CLM - Pittsburgh Roundtable 2004College 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

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

101. CLM - Pittsburgh Roundtable 2004College 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

102. CLM - Pittsburgh Roundtable 2004College 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

103. CLM - Pittsburgh Roundtable 2004College 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

104. CLM - Pittsburgh Roundtable 2004College 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

105. CLM - Pittsburgh Roundtable 2004College 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

106. CLM - Pittsburgh Roundtable 2004College 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

107. CLM - Pittsburgh Roundtable 2004College 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

108. CLM - Pittsburgh Roundtable 2004College 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

109. CLM - Pittsburgh Roundtable 2004College 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

110. CLM - Pittsburgh Roundtable 2004College 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

111. CLM - Pittsburgh Roundtable 2004College 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

112. CLM - Pittsburgh Roundtable 2004College 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

113. CLM - Pittsburgh Roundtable 2004College 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. $22,500 15 points

114. CLM - Pittsburgh Roundtable 2004College 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. $22,500 15 points

115. CLM - Pittsburgh Roundtable 2004College 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

116. CLM - Pittsburgh Roundtable 2004College 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

117. CLM - Pittsburgh Roundtable 2004College 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

118. CLM - Pittsburgh Roundtable 2004College Challenge Final Round - Question 14 Continued A. $250,000 B. $87,500 C. $125,000 D. $12,500 E. $50,000 15 points

119. CLM - Pittsburgh Roundtable 2004College Challenge Final Round – Answer 14 A. $250,000 B. $87,500 C. $125,000 D. $12,500 E. $50,000 15 points

120. CLM - Pittsburgh Roundtable 2004College 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

121. CLM - Pittsburgh Roundtable 2004College 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

122. CLM - Pittsburgh Roundtable 2004College 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

123. CLM - Pittsburgh Roundtable 2004College 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

124. CLM - Pittsburgh Roundtable 2004College 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

125. CLM - Pittsburgh Roundtable 2004College 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

126. CLM - Pittsburgh Roundtable 2004College 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

127. CLM - Pittsburgh Roundtable 2004College 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

128. CLM - Pittsburgh Roundtable 2004College 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

129. CLM - Pittsburgh Roundtable 2004College 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

130. CLM - Pittsburgh Roundtable 2004College 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

131. CLM - Pittsburgh Roundtable 2004College 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

132. CLM - Pittsburgh Roundtable 2004College 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