Chapter 2 Dimensions of Logistics

1. Chapter 2 Dimensions of Logistics • During the 1980s, logistics costs as a percentage of gross national product declined. • True • In general, Production department prefers small production lots whereas Logistics department prefers large production lots • False • Transportation is the physical movement or flow of goods. • True

2. Chapter 2 Dimensions of Logistics • The four fundamental economic utilities are: • Form utility • Place utility • Time utility • Possession utility

3. Chapter 2 Dimensions of Logistics • The seven R’s of business logistics are RIGHT: • Cost • Condition • Customer • Place • Product • Quantity • Time

4. Chapter 2 Dimensions of Logistics • Logistics systems having a very heavy inbound flow and a very simple outbound flow are reverse systems. • False • In a logistics system, warehousing should be optimized at the expense of related logistics activities such as transportation and procurement. • False

5. Chapter 2 Dimensions of Logistics • The mathematical calculation of the point of indifference between systems under analysis is used for short-run/static analysis. • False • The inverse relationship exists between the cost of lost sales and inventory carrying costs. • True