Second Round - Question 1

1. Second Round - Question 1 The transportation cost per hundredweight (cwt) for a very lightweight and bulky product will be _____ than the cost per hundredweight for a very dense product such as steel: a. higher b. lower c. about the same d. higher, or lower, depending on the item

2. Second Round - Question 1 The transportation cost per hundredweight (cwt) for a very lightweight and bulky product will be _____ than the cost per hundredweight for a very dense product such as steel: a. higher b. lower c. about the same d. higher, or lower, depending on the item

3. Second Round - Question 2 “Flags of convenience” refers to: a. “paper ships” b. registration of a ship by a nation with relatively lax maritime safety and working standards c. a ship which does not operate on a fixed schedule d. another name for a “tramp ship”

4. Second Round - Question 2 “Flags of convenience” refers to: a. “paper ships” b. registration of a ship by a nation with relatively lax maritime safety and working standards c. a ship which does not operate on a fixed schedule d. another name for a “tramp ship”

5. Second Round - Question 3 Which is a service advantage the motor carrier has over other modes of transportation? a. the minimal regulation imposed on the motor carriers relative to the other modes b. the level of flexibility in the motor carrier’s cost structure c. the economy of scale realized from long-haul moves d. the flexibility of the motor carrier for pickup and delivery

6. Second Round - Question 3 Which is a service advantage the motor carrier has over other modes of transportation? a. the minimal regulation imposed on the motor carriers relative to the other modes b. the level of flexibility in the motor carrier’s cost structure c. the economy of scale realized from long-haul moves d.the flexibility of the motor carrier for pickup and delivery

7. Second Round - Question 4 This document is a guarantee by a bank that it will pay the “beneficiary” upon presentation of certain papers showing that the conditions of the document have been satisfied: a. Bank Letter c. Commercial Invoice c. Letter of Credit d. Open Account

8. Second Round - Question 4 This document is a guarantee by a bank that it will pay the “beneficiary” upon presentation of certain papers showing that the conditions of the document have been satisfied: a. Bank Letter c. Commercial Invoice c. Letter of Credit d. Open Account

9. Second Round - Question 5 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. Second Round - Question 5 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

11. Second Round - Question 6 Inventory shrinkage refers to: a. the fact that more products enter a warehouse than officially leave b. product depreciation c. product actually shrinking in size, often because moisture is evaporating from the product d. the situation of reducing overall inventories to reduce inventory holding costs e. none of the above

12. Second Round - Question 6 Inventory shrinkage refers to: a. the fact that more products enter a warehouse than officially leave b. product depreciation c. product actually shrinking in size, often because moisture is evaporating from the product d. the situation of reducing overall inventories to reduce inventory holding costs e. none of the above

13. Second Round - Question 7 A number of product related factors affect the cost of logistics. Which of the following does not impact logistics costs: a. Margin b. Dollar Value c. Density d. Susceptibility to Damage

14. Second Round - Question 7 A number of product related factors affect the cost of logistics. Which of the following does not impact logistics costs: a. Margin b. Dollar Value c. Density d. Susceptibility to Damage

15. Second Round - Question 8 Which type of warehouse stores items for producers that wish to postpone payment of taxes on imported items stored? a. field warehouse b. private warehouse c. federal warehouse d. bonded warehouse

16. Second Round - Question 8 Which type of warehouse stores items for producers that wish to postpone payment of taxes on imported items stored? a. field warehouse b. private warehouse c. federal warehouse d. bonded warehouse

17. Second Round - Question 9 What can be expected if a firm can improve customer service by shortening customer order cycles? a. an increase in the firms’ logistics costs and a rise in product price b. customers will be able to operate with less inventory and lower costs c. customers will have to increase their inventory investment and change their purchasing practices d. that the firm’s marketing goals will be achieved at the expense of their production goals

18. Second Round - Question 9 What can be expected if a firm can improve customer service by shortening customer order cycles? a. an increase in the firms’ logistics costs and a rise in product price b. customers will be able to operate with less inventory and lower costs c. customers will have to increase their inventory investment and change their purchasing practices d. that the firm’s marketing goals will be achieved at the expense of their production goals

19. Second Round - Question 10 All of the following are characteristics of a supply chain management perspective (as opposed to a more traditional view of logistics/conventional channels), except: a. members of the supply chain acknowledge interdependence b. inventories are used as a mechanism of first, rather than last resort c. the supply chain is viewed as a single entity: competition is not with other firms in the supply chain but with other supply chains d. supply chains are actively managed in both the upstream and downstream directions

20. Second Round - Question 10 All of the following are characteristics of a supply chain management perspective (as opposed to a more traditional view of logistics/conventional channels), except: a. members of the supply chain acknowledge interdependence b. inventories are used as a mechanism of first, rather than last resort c. the supply chain is viewed as a single entity: competition is not with other firms in the supply chain but with other supply chains d. supply chains are actively managed in both the upstream and downstream directions

21. Second Round - Tie BreakerQuestion 1 In ABC analysis, A-type items might contain: a. 10% of the total items purchased and 80% of the total purchase dollars b. 50% of the total items purchased and 50% of the total purchase dollars c. 10% of the total items purchased and 10% of the total purchase dollars d. 80% of the total items purchased and 10% of the total purchase dollars

22. Second Round - Tie BreakerQuestion 1 In ABC analysis, A-type items might contain: a. 10% of the total items purchased and 80% of the total purchase dollars b. 50% of the total items purchased and 50% of the total purchase dollars c. 10% of the total items purchased and 10% of the total purchase dollars d. 80% of the total items purchased and 10% of the total purchase dollars

23. Second Round - Tie Breaker Question 2 Which of the following is a characteristic of a periodic inventory system? a. the time between orders varies b. the inventory level is checked only when it is time to order c. orders are of a fixed quantity each time d. orders will be placed more frequently when demand is high

24. Second Round - Tie Breaker Question 2 Which of the following is a characteristic of a periodic inventory system? a. the time between orders varies b.the inventory level is checked only when it is time to order c. orders are of a fixed quantity each time d. orders will be placed more frequently when demand is high

25. Second Round - Tie BreakerQuestion 3 This document is a summation of the entire international transaction between a buyer and seller, and is used by Customs to clear goods: a. Bank Letter b. Commercial Invoice c. Confirmed Letter of Credit d. Letter of Credit

26. Second Round - Tie BreakerQuestion 3 This document is a summation of the entire international transaction between a buyer and seller, and is used by Customs to clear goods: a. Bank Letter b. Commercial Invoice c. Confirmed Letter of Credit d. Letter of Credit

27. Second Round - Tie BreakerQuestion 4 An irrevocable _______ is a means of guaranteeing payment for an international shipment provided the supplier (vendor) meets certain conditions. a. Letter of Credit b. Certificate of Payment c. Bonded Letter d. Freight Bill e. none of the above

28. Second Round - Tie BreakerQuestion 4 An irrevocable _______ is a means of guaranteeing payment for an international shipment provided the supplier (vendor) meets certain conditions. a. Letter of Credit b. Certificate of Payment c. Bonded Letter d. Freight Bill e. none of the above

29. Second Round - Tie BreakerQuestion 5 Assume that the cost of the most efficient logistics system for a 98% service goal is $2 million higher than the existing system’s cost. If for each dollar of additional sales, the company incurs 75 cents in out-of-pocket costs, what incremental sales volume will the company need to recover the increase in logistics costs? a. $2 million d. $4 million b. 2 million units e. cannot be determined with c. $8 million the information given

30. Second Round - Tie BreakerQuestion 5 Assume that the cost of the most efficient logistics system for a 98% service goal is $2 million higher than the existing system’s cost. If for each dollar of additional sales, the company incurs 75 cents in out-of-pocket costs, what incremental sales volume will the company need to recover the increase in logistics costs? a. $2 million d. $4 million b. 2 million units e. cannot be determined with c. $8 million the information given