Managing Operations Across the Supply Chain 3rd Edition By Morgan Swink – Test Bank

1. Zanda Corp. made a decision to use a more expensive mode of transportation to deliver orders to customers. This decision was likely made after an examination of

A. Cost-to-cost tradeoffs.

B. Consolidation strategies.

C. Product availability problems.

D. Cost-to-service trade-offs.

AACSB: Reflective Thinking

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-01 Explain logistics and the major decisions made by logistics managers.

Topic: The Role of Logistics in Supply Chain Management

2. Which of the following best describes the concept of total landed cost?

A. The sum of all logistics costs related to a product.
B. The lowest logistics cost for a product.
C. The sum of all product- and logistics-related costs.
D. The difference between product-related and logistics-related costs.

AACSB: Reflective Thinking

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-01 Explain logistics and the major decisions made by logistics managers.

Topic: The Role of Logistics in Supply Chain Management

3. Zanda Corp. had established a production plant in Thailand. Recently it decided to close the plant and move production to Mexico. This decision was likely made after Zanda:

A. Conducted a spend analysis.

B. Conducted a make-or-buy analysis.

C. Examined total landed cost.

D. Evaluated consolidation strategies.

AACSB: Analytical Thinking

Blooms: Apply

Difficulty: 3 Hard

Learning Objective: 11-01 Explain logistics and the major decisions made by logistics managers.

Topic: The Role of Logistics in Supply Chain Management

4. With respect to transportation regulation today in the United States:

A. There is no economic regulation of transportation.

B. There is more economic regulation than ever before.

C. There is very little safety/social regulation.

D. There is more safety/social regulation than ever before.

AACSB: Reflective Thinking

Blooms: Remember

Difficulty: 1 Easy

Learning Objective: 11-03 Choose efficient transportation modes and carriers.

Topic: Transportation Management

5. Jones Company has decided to limit deliveries to selected areas to specific days of the week to obtain transportation savings. This is an example of:

A. Market consolidation.

B. Pooled delivery consolidation.

C. Scheduled delivery consolidation.

D. Transportation consolidation.

E. Poor planning.

AACSB: Reflective Thinking

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-02 Estimate cost savings from consolidation.

Topic: Transportation Management

6. Jones Company learned that several other shippers in its hometown had customers located in the same markets that it serves. With this information, Jones should investigate the possibility of:

A. Market area consolidation.

B. Scheduled delivery consolidation.

C. Pooled delivery consolidation.

D. Traffic consolidation.

AACSB: Reflective Thinking

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-02 Estimate cost savings from consolidation.

Topic: Transportation Management

7. Zanda Corp. can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop. Should Zanda do this?

A. Yes, it will save $100.

B. Yes, it is simpler to do.

C. No, it will increase cost by $100.

D. It doesn’t matter based on cost.

AACSB: Analytical Thinking

Blooms: Analyze

Difficulty: 3 Hard

Learning Objective: 11-02 Estimate cost savings from consolidation.

Topic: Transportation Management

8. Miller Corp. can make three individual deliveries to three different customers at a transportation cost of $600 each or can consolidate them into one shipment with a transportation cost of $1,200 and a stop-off charge of $100 per stop. Should Miller Corp. consolidate the shipments?

A. Yes, it will save $100.

B. Yes, it will save $300.

C. No, it will increase cost by $100.

D. It doesn’t matter based on cost.

AACSB: Analytical Thinking

Blooms: Analyze

Difficulty: 3 Hard

Learning Objective: 11-02 Estimate cost savings from consolidation.

Topic: Transportation Management

9. Suppose you are shipping 1,000 pounds of product to a customer location that is 500 miles away from you. The customer calls you and increases the order size to 10,000 pounds. Which of the following is NOT LIKELY to occur as a result of this change?

A. The cost per pound of transportation for the order will decrease.

B. The total cost of transportation for the order will increase.

C. Both of these are likely to occur.

AACSB: Reflective Thinking

Blooms: Understand

Difficulty: 2 Medium

Learning Objective: 11-02 Estimate cost savings from consolidation.

Topic: Transportation Management

10. With respect to the following operating service characteristics of the modes of transportation, which combination is INCORRECTLY specified?

A. Speed: air is best; pipeline is worst.

B. Availability: truck is best; pipeline is worst.

C. Capability: pipeline is best; water is worst.

D. Dependability: pipeline is best; air is worst.

AACSB: Reflective Thinking

Blooms: Remember

Difficulty: 1 Easy

Gradable: automatic

Learning Objective: 11-03 Choose efficient transportation modes and carriers.

Topic: Transportation Management