Final Round - Question 1

1. Final Round - Question 1 An”evergreen contract” refers to one that __________. a. is worth a lot of money b. is environmentally friendly c. has no end date d. involves cross-border transactions

2. Final Round - Question 1 An”evergreen contract” refers to one that __________. a. is worth a lot of money b. is environmentally friendly c. has no end date d. involves cross-border transactions

3. Final Round - Question 2 Pittsburgh Office Supply (POS) stocks out of a certain item 20% of the time and has determined that 20% of these stock outs result in backorders, 30% result in lost sales, and 50% result in lost customers. POS has determined that backorder at $100. Its annual sales of this particular product is $10,000,000.What is the expected cost of a stockout?

4. Final Round - Question 2 (cont’d) a. $2,000,000 b. $1,300 c. $580 d. $310 e. $116

5. Final Round - Question 2 (cont’d) a. $2,000,000 b. $1,300 c. $580 d. $310 e. $116

6. Final Round - Question 3 All are principal reasons for holding materials inventory, except: a. purchase economies b. speculative investments in raw materials c. transportation economies d. improvements in customer service

7. Final Round - Question 3 All are principal reasons for holding materials inventory, except: a. purchase economies b. speculative investments in raw materials c. transportation economies d. improvements in customer service

8. Final Round - Question 4 Your road atlas falls on the floor and opens to page 14. The map indicates the intersection of Federal Interstates I-15 and I-94. The corner of the page which normally indicates the state or providence associated with this map has been chewed off by your dieting room mate. If you were standing at the intersection of these Federal Interstates, which region of the United States would you be in?

9. Final Round - Question 4 (cont’d) a. Northeastern b. Southeastern c. Northwestern d. Southwestern

10. Final Round - Question 4 (cont’d) a. Northeastern b. Southeastern c. Northwestern d. Southwestern

11. Final Round - Question 5 The single greatest impetus toward the advancement of intermodalism was: a. regulatory reform in the railroad industry immediately after the World War b. the ILWU’s (union) demands for increased pay and shorter work weeks c. The introduction of containers on US domestic ocean liners d. None of the above

12. Final Round - Question 5 The single greatest impetus toward the advancement of intermodalism was: a. regulatory reform in the railroad industry immediately after the World War b. the ILWU’s (union) demands for increased pay and shorter work weeks c. The introduction of containers on US domestic ocean liners d. None of the above

13. Final Round - Question 6 Vendor-managed (VMI) is a concept where: a. suppliers replenish a retail distribution center with their product without the retailers placing an order b. retailers handle their own inventory management c. suppliers replenish a retail distribution center with their product when the retailers tells them to do so c. vendors hold inventory and ship directly to each stores

14. Final Round - Question 6 Vendor-managed (VMI) is a concept where: a. suppliers replenish a retail distribution center with their product without the retailers placing an order b. retailers handle their own inventory management c. suppliers replenish a retail distribution center with their product when the retailers tells them to do so c. vendors hold inventory and ship directly to each stores

15. Final Round - Question 7 The Federal Aviation Authorization Act of 1994: a. completed the deregulation of interstate trucking b. completed the deregulation of interstate air freight c. preempted that states from regulating intrastate trucking d. preempted the states from regulating intrastate air freight

16. Final Round - Question 7 The Federal Aviation Authorization Act of 1994: a. completed the deregulation of interstate trucking b. completed the deregulation of interstate air freight c. preempted that states from regulating intrastate trucking d. preempted the states from regulating intrastate air freight

17. Final Round - Question 8 We can compare the cost of shipping at a higher volume than the actual weight to realize a lower rate and lower shipping cost of shipping at the actual weight by determining the weight break. The weight break formula is?

18. Final Round - Question 8 (cont’d) a. LV rate * WB = HV rate * MW b. WB * LV rate = MW * HV rate c. WB * HV rate = LV rate * MW d. HV rate * LV rate = WB * MW

19. Final Round - Question 8 (cont’d) a. LV rate * WB = HV rate * MW b. WB * LV rate = MW * HV rate c. WB * HV rate = LV rate * MW d. HV rate * LV rate = WB * MW

20. Final Round - Question 9 Average cycle stock inventory equals: a. half the order quantity b. the square root of the order quantity c. the order quantity time the turns d. the order quantity level

21. Final Round - Question 9 Average cycle stock inventory equals: a. half the order quantity b. the square root of the order quantity c. the order quantity time the turns d. the order quantity level

22. Final Round - Question 10 Flags of convenience are used: a. to promote the U.S. flag merchant marine b. to avoid registering in nations with stringent standards c. to help the U.S. shipbuilding industry d. none of the above

23. Final Round - Question 10 Flags of convenience are used: a. to promote the U.S. flag merchant marine b. to avoid registering in nations with stringent standards c. to help the U.S. shipbuilding industry d. none of the above

24. Final Round - Question 11 Which of the following is correct regarding the zone of reasonableness established for air carriers using the standard industry level as a basis? a. above 5-10 percent, below 50 percent b. above 15-20 percent, below 50 percent c. above 50 percent, below 5-10 percent d. above 50 percent, below 15-20 percent

25. Final Round - Question 11 Which of the following is correct regarding the zone of reasonableness established for air carriers using the standard industry level as a basis? a. above 5-10 percent, below 50 percent b. above 15-20 percent, below 50 percent c. above 50 percent, below 5-10 percent d. above 50 percent, below 15-20 percent

26. Final Round - Question 12 Private warehouses are generally advantageous when: 1. demand does not fluctuate 2. greater control is necessary 3. throughput is low and sporadic 4. investment capital is scarce 5. Promotional items need to be stored

27. Final Round - Question 12 (cont’d) a. (1) and (3) b. (1), (4), and (5) c. (1) and (2) d. (1), (2), and (4) 4. (2) only

28. Final Round - Question 12 (cont’d) a. (1) and (3) b. (1), (4), and (5) c. (1) and (2) d. (1), (2), and (4) e. (2) only

29. Final Round - Question 13 Which is the largest components of logistics cost in most industries? a. inventory costs b. transportation costs c. shipper-related costs d. administrative costs

30. Final Round - Question 13 Which is the largest components of logistics cost in most industries? a. inventory costs b. transportation costs c. shipper-related costs d. administrative costs

31. Final Round - Question 14 Which mode of freight transport accounts for the greatest percentage of inter city ton-miles: a. pipeline b. water carriers c. motor carriers d. railroads

32. Final Round - Question 14 Which mode of freight transport accounts for the greatest percentage of inter city ton-miles: a. pipeline b. water carriers c. motor carriers d. railroads

33. Final Round - Question 15 Which one of the following does not make up a global logistics system: a. functional dimension b. transportation dimension c. sectorial dimension d. geographic dimension

34. Final Round - Question 15 Which one of the following does not make up a global logistics system: a. functional dimension b. transportation dimension c. sectorial dimension d. geographic dimension