1. 1.What has again become a major focal point of total quality management (TQM) programs? a.the logistics pipeline b.physical distribution c.Sourcing d.operations

2. 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. 3.The utility that is created by moving goods from surplus points to points where demand exists is referred to as: a.form b.place c.time d.possession

4. 4.Which is created when a product or service is at a point when demanded by customers? a.form utility b.place utility c.time utility d.possession utility

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

6. 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 location b.quality c.reliability d.capability

7. 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 product b.core benefit c.augmented product d.enhanced product

8. 8. The least important level of involvement for most companies would be view customer service as: a.an activity b.performance measures. c.a philosopher. d.none of the above.

9. 9.All are principle reasons for holding materials inventory, except: a.purchase economies b.speculative investments in raw materials c.transportation economies d.improvement in customer service

10. 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 stock b.speculative purchases c.seasonal supply d.maintenance of supply sources

11. 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 demand b.directly c.inversely d.not at all

12. 12. What is the effect on inventory carrying costs if order size is increased and frequency of orders decreased? a.costs increase b.costs decrease c.costs remain the same d.the effect cannot be determined

13. 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. 14. Which decision is one that involves the number of warehouses a firm should have? a.transportation cost ‑ maximization decision b.an inventory cost decision c.a centralization/­decentralization decision d.a link ‑ node maximization decision

15. 15. Which of the following is not one of the basic processes or procedures of materials handling? a.movement b.time c.quantity d.quality

16. 16. Which are the elements of the basic aspects of materials handling a.movement, time, quantity, and space b.multiple interests, coordination, warehousing, and containerization c.equipments, efficiency, productivity, and packaging d.packaging, capacity, service, and labor

17. 17. What are the typical characteristics of commodities transported by air carriage? a.low value to weight relationship b.high weight to density relationship c.high value to weight relationship d.high density to volume relationship

18. 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 characteristic b.shipments traveling 24 hours per day c.the modes high accessibility d.high commodity flexibility

19. 19. All are common carrier exceptions to liability, except: a.act of public authority b.act of default by shipper c.act of God d.act of public enemy

20. 20. What is the carrier’s invoice for charges incurred in the movement of a given shipment called? order bill of lading straight bill of lading freight claim freight bill

21. 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 throughput b.placement cycle c.order cycle d.replenishment cycle

22. 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 phone b.phone and salesman c.electronic and mail d.phone and electronic

23. 23. The location selection team formed for the facility location decision process: a.collects information on specific qualitative attributes b.makes the final location decision c.includes workers from divisional levels only d.is created informally in large corporations

24. 24. Which major locational determinant considers locating near the competition? a.labor climate b.quality of life c.company preference d.supplier networks

25. 25. Which is a major category of ocean shipping? a.passenger travel b.common carriers c.exempt carriers d.liner vessels

26. The End!