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COVERING PROC 5850 ITEMS
(1). The utility that is created by moving goods from surplus points to points where demand exists is
referred to as:
(2). What activity involves the movement of goods into a warehouse, the placement of goods in a
warehouse, and the movement of goods from storage to order picking areas and eventually to dock
areas for transportation out of the warehouse?
(a). Materials handling,
(b). Physical distribution,
(c). Business logistics,
(d). Order fulfillment.
(3). Logistics decisions about inventory, transportation, and warehouse should relate to which of the
(a). Globalization of business,
(b). Changing of government infrastructure,
(c). Structural changes in business,
(d). Customer service requirements
(4). The network intermediaries engaged in transfer, storage, handling, and communication is a
(b). Logistics channel,
(d). Logistics provider.
(5). Which of the follow is not an example of customer service?
(a). Guaranteeing delivery within specified time periods,
(b). Installing the product,
(c). Extending the option to sell on consignment,
(d). Outsourcing financial and credit terms.
(6). Which are the major modes of international transportation?
(a). Water and air,
(b). Water and rail,
(c). Rail and motor,
(d). Rail and air.
(7). Which condition must be present before motor carriers and rail carriers can be used for international
(a). Shipments must be in volume and in bulk,
(b). Shipment must be between adjacent countries,
(c). No custom barriers can be imposed,
(d). Shipment cannot pass through adjacent countries.
(8). Any government unit or authority at any level that owns, operates, or otherwise provides wharf,
dock, and other terminal facilities at port locations refers to:
(a). Country government,
(b). Maritime unit.
(c). Free Trade Zone,
(d). Port Authority.
(9). Which one of the following practices is not generally associated with inventory management?
(10). What are the two (2) basic warehouse operations?
(a). Movement and order processing,
(b). Movement and storage,
(c). Storage and inventory control,
(d). Purchasing and storage.
(11). Which of the following costs best applies to the use of public warehousing by a firm?
(12). Which of the following is not an objective of materials handling?
(a). Increase effective capacity,
(b). Improve operating efficiency,
(c). Increase heavy labor,
(d). Implement effective working conditions.
(13). Which mode of transportation is characteristic of high fixed costs, low variable costs, long transit
times, low accessibility, and capability of transporting only liquid products?
(c). Water carriers,
(d). Air carriers
(14). How does containerization change the materials handling function?
(a). From capital intensive to labor intensive,
(b). From labor intensive to capital intensive,
(c). From an ancillary to a primary function,
(d). To a market intensive activity.
(15). Piggyback is an example of which type of transportation?
(16). Which of the following is an ICC licensed freight intermediary whose propose is to bring shippers
and carriers together?
(a). Shipper’s agent,
(b). Freight wholesaler,
(d). Carriage company.
(17). What is an order bill of lading?
(a). Order of goods which a firm issues to a supplier,
(b). Same as a freight bill,
(c). Negotiable instrument that acts as a certificate of title,
(d). Purchase invoice.
(18). Under the term of sale “F.O.B. Delivered”, who has the responsibility of filing a claim for damage
arising from the shipment?
(d). Demurrage agent.
(19). In an effort to offer a lower rate, carriers will try to:
(a). Separate joint and common costs,
(b). Reverse the rate taper,
(c). Offer a quantity discount,
(d). Disregard the weight of the shipment.
(20). The following are all types of 3PLs, except:
(a). Transportation based,
(b). Warehouse based,
(c). Forwarder based,
(d). B2B payments
(21). A firm that manages the resources, capabilities, and technology of its own organization with those
of complimentary service providers to deliver a comprehensive supply chain solution is called a:
(22). What type of change may suggest a need to reevaluate and/or redesign a firm’s logistics network?
(a). Change in customer service requirements,
(b). Change in corporate ownership,
(c). Cost pressures and competitive capabilities,
(d). Shifting locations of customer and/or supply markets.
(23). Which of the following is not a trend in today’s logistics environment that may have significant
effects on decisions involving logistics facility location?
(b). Use of third-party suppliers,
(c). Direct, Plant-to-Customer shipments,
(d). Decentralized facilities.
(24). Which of the following is not a supply chain decision area regarding ROA improvement?
(a). Channel structure management,
(b). Inventory management,
(c). Order management,
(d). Information management.
(25). A core competency is said to exist if each of three (3) conditions are satisfied. Which of the
following is not one of these three conditions?
(b). Strategic fit,
(c). Ability to invest,
(d). Sustainable advantage.
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