CHAPTER 2: LOGISTICS AND INFORMATION TECHNOLOGY

1. What has emerged as the measuring stock for logistics information technology in the twenty-first century? C
a. Facebook
b. the Internet
c. wireless communication
d. enterprise resource planning (ERP) systems
2. Which of the following refers to a network of satellites that transmits signals that pinpoint the exact location of an object?A
a. Global positioning systems (GPS)
b. Cloud computing
c. Internet of things
d. Electronic data interchange (EDI)
3. Electronic data interchange (EDI) represents what general type of information management system?B
a. communication system
b. transaction processing system
c. decision support system
d. office automation system
4. The most popular automatic identification system currently in use is ___________.D
a. voice-data entry
b. radio-frequency identification (RFID)
c. magnetic strips
d. bar code scanners
5. A logistics information system (LIS) begins with ___________.A
a. a logistics manager requesting information
b. a good computer system
c. a lot of money
d. a customer order
6. Warehouse management systems (WMS) represent an example of what general type of information management system?C
a. communication system
b. transaction processing system
c. decision support system
d. office automation system
7. ___________ refers to the application of mathematical tools to large bodies of data in order to extract correlations and rules.C
a. Fuzzy logic
b. Factor analysis
c. Data mining
d. Linear regression
8. ___________ refers to a computer-based discipline that leverages algorithms that can “learn” from data.D
a. Artificial intelligence
b. The Internet of things (IoT)
c. Expert systems
d. Machine learning
9. The origins of contemporary enterprise resource planning (ERP) systems can be traced back to logistics and __________.A
a. manufacturing
b. marketing
c. purchasing
d. finance
10. What has emerged as the most popular application of on-demand logistics software (cloud computing)?B
a. warehouse management systems (WMS)
b. transportation management systems (TMS)
c. inventory optimization
d. collaborative forecasting
11. In a reverse auction, ___________.C
a. multiple sellers invite bids from multiple buyers
b. one buyer invites bids from one seller
c. one buyer invites bids from multiple sellers
d. multiple sellers invite bids from one buyer
12. . The Internet of things (IoT) is expected to drive value in the supply chain and logistics disciplines through enhanced customer
interactions and ___________.D
a. improved order management techniques
b. faster transit times
c. reduced warehousing requirements
d. improvements in employee productivity
13. ___________ has been identified as the biggest information technology challenge that companies face today.B
a. Software viruses
b. Information security
 c. The cost of technology
d. Employee resistance
CHAPTER 4: ORGANIZATIONAL AND MANGERIAL ISSUES IN LOGISTICS
1. In a ___________ logistics structure, logistics activities are managed in multiple departments throughout an organization.
a. unified
b. fragmented
c. decentralized
d. matrix
2. In a ___________ logistics structure, multiple logistics activities are combined into, and managed as, a single department.
a. hierarchical
b. centralized
c. matrix
d. unified
3. A ___________ logistics organization implies that the corporation maintains a single logistics department that administers the related
activities for the entire company from the home office.
a. centralized
b. hierarchical
c. unified
d. command-and-control
4. A(n) ___________ logistics organization means that logistics-related decisions are made separately at the divisional or product group
level.
a. fragmented
b. decentralized
c. flexible
d. agile
5. A primary advantage of ___________ logistics is its relative efficiency, whereas a primary advantage of ___________ logistics is its
customer responsiveness.
a. unified; fragmented
b. unified; decentralized
c. centralized; decentralized
d. fragmented; centralized
6. Which of the following is an advantage of a decentralized logistics organization?
a. It can be less expensive than a centralized organization.
b. There are good opportunities for freight consolidation.
c. There is better control over company data.
d. It can be responsive to customer service requirements.
7. ___________ organizational design has its foundations in the command-and-control military operation, where decision making and
communication often follow a top-down flow.
a. Centralized
b. Unified
c. Matrix
d. Hierarchical
8. A ___________ organizational design attempts to create an organization that is responsive to the parameters of the contemporary
business environment.
a. matrix
b. network
c. decentralized
d. unified
9. ___________ refers to satisfying current and emerging customer needs.
a. Responsiveness
b. Flexibility
c. Relevancy
d. Accommodation
10. ___________ can be defined as an organization’s ability to address unexpected operational situations.
a. Relevancy
b. Flexibility
c. Accommodation
d. Responsiveness
11. ___________ refers to the amount of output divided by the amount of input.
a. Control
b. Monitoring
c. Productivity
d. Input–output analysis
12. Productivity improvement efforts in logistics are often directed toward ___________.
a. reducing input while increasing output
b. increasing output by a greater percentage than inputs are increased
 c. reducing input while holding output constant
d. increasing output while holding input constant
13. What is the most important purpose of warehouse work rules?
a. to control pilferage
b. to keep employees from engaging in unproductive and potentially destructive activities
c. to protect companies from union grievance procedures
d. to give managers control over warehouse workers
14. A ___________ is a device used to monitor and control the actions taken by a driver and his/her vehicle.
a. tachograph
b. tachometer
c. speedometer
d. regulator
15. ___________ refers to an organization making their unused resources available to other organizations.
a. Sharing economy
b. Flexibility
c. Responsiveness
d. Excess capacity
16. The ___________ has been established to identify uncertainty sources that can affect the risk exposure for logistics activities.
a. Perfect Order
b. Logistics Uncertainty Pyramid Model
c. Department of Homeland Security
d. Logistics Risk Factor
17. The two areas in logistics systems where most energy costs occur are ___________ and ___________.
a. warehousing; transportation
b. packaging; transportation
c. materials handling; packaging
d. warehousing; materials handling
18. With respect to the design of warehouses, one suggestion for energy savings is to make sure that dock doors are not placed on the
___________ side of a building.
a. west
b. east
c. north
d. south
19. Which of the following is not one of the three critical factors associated with the process of managing returned goods?
a. why products are returned
b. whether returned goods should be managed internally or outsourced to a third party
c. how to optimize reverse logistics
d. how many products are returned
20. ___________ complexity refers to the growing number nodes and the associated changes to the links in the logistics system.
a. Process
b. Range
c. Network
d. System
21. ___________ complexity centers on the implications associated with the increasing number of products that most companies continue
to face in an effort to differentiate themselves with their customers.
a. Process
b. Range
c. Network
d. System

CHAPTER 5: THE SUPPLY CHAIN MANAGEMENT CONCEPT

1. The supply chain management concept originated in what discipline?

a. marketing
b. operations
c. logistics
d. production
2. What concept can be viewed as a combination of processes, functions, activities, relationships, and pathways along which products,
services, information, and financial transactions move in and between enterprises from original producer to ultimate end user or
consumer?
a. logistics
b. supply chain
c. marketing channel
d. interorganizational coordination
3. Contemporary supply chains are increasingly required to be fast and ___________.
 a. lean
b. agile
c. interactive
d. relevant
4. An organization’s ability to respond to changes in demand with respect to volume and variety refers to ___________.
a. responsiveness
b. leanness
c. agility
d. relevancy
5. Which of the following is not a potential outcome from a supply chain’s failure to be fast and agile?
a. dissatisfied customers
b. reduced profitability
c. decreased market share
d. increased stock price
6. What is a perfect order?
a. simultaneous achievement of relevant customer metrics
b. order that arrives on time
c. order that arrives undamaged
d. order that is easy for the receiver to fill
7. Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of
___________.
a. third-party logistics
b. supply chain collaboration
c. leagility
d. relational exchanges
8. ___________ collaborations offer the best opportunity for improving supply chain performance.
a. Transactional
b. Tactical information sharing
c. Strategic
d. Operational
9. According to the text, ___________ has been at the center of the changes taking place that affect the supply chain.
a. economic malaise
b. logistics
c. customer power
d. technology
10. ___________ combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities
in supply chain processes, even when large amounts of data are involved.
a. Data mining
b. Supply chain analytics
c. Benchmarking
d. Third-party logistics
11. Which of the following is not a term for a long-term mutually beneficial supply chain agreement?
a. partnerships
b. third-party arrangements
c. coopetition
d. contract logistics
12. Which concept refers to the situation in which one organization owns multiple participants in the supply chain?
a. supply chain management
b. vertical integration
c. horizontal integration
d. intensive distribution
13. There are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the
following is not one of them?
a. informal agreements
b. formal contracts
c. vertical integration
d. centralized organization

CHAPTER 6: PROCUREMENT

1. ___________ refers to the raw materials, component parts, and supplies bought from outside organizations to support a company’s
operations.
a. Inbound logistics
b. Procurement
c. Materials management
 d. Supply management
2. Procurement and ___________ are viewed as synonymous terms.
a. materials management
b. supply management
c. purchasing
d. inbound logistics
3. ___________ involves an increased focus on identifying and using data internally and across a supply chain so that a company can
consolidate its purchasing power for enhanced value.
a. Supply management
b. Strategic sourcing
c. Supply chain management
d. Procurement
4. Which of the following is not a potential procurement objective?
a. minimizing procurement costs
b. supporting organizational goals and objectives
c. managing the supply base
d. supporting operational requirements
5. Buying the right products, at the right price, from the right source, at the right specifications, in the right quantity, and for delivery at
the right time to the right internal customer is associated with what procurement objective?
a. managing the supply base
b. managing the purchasing process effectively and efficiently
c. supporting operational requirements
d. supporting organizational goals and objectives
6. What is the first step in supplier selection and evaluation?
a. Prepare a request for proposal.
b. Prepare a procurement budget.
c. Identify possible suppliers.
d. Identify the need for supply.
7. With respect to the supplier selection and evaluation process, ___________ looks at both the internal and external environment within
which the supply decision is to be made.
a. Identify the need for supply.
b. Identify suppliers.
c. Perform a situation analysis.
d. Evaluate suppliers.
8. What is the final step in the supplier selection and evaluation process?
a. Provide feedback.
b. Select suppliers.
c. Implement the decision.
d. Evaluate the decision.
9. Single sourcing consolidates purchase volume with a single supplier in hopes of increasing cooperation and communication in the
supply relationship as well as ___________.
a. greater supply risk mitigation
b. increased amounts of competition
c. improved market intelligence
d. lower costs per unit
10. A degree of aggressive procurement involvement not normally encountered in supplier selection refers to ___________.
a. supply management
b. supplier development
c. materials management
d. physical supply
11. Supplier development is synonymous with ___________.
a. supplier selection and evaluation
b. procurement
c. materials management
d. reverse marketing
12. What is the first step in a global sourcing development model?
a. planning
b. specification
c. situation analysis
d. problem recognition
13. ___________ is often a major shortcoming of many global procurement plans.
a. Confiscation
b. Specification
c. Implementation
d. Evaluation
14. What concept refers to when firms consider all the costs that can be assigned to the acquisition, use, and maintenance of a purchase?
 a. activity-based costing
b. cost trade-offs
c. the systems approach
d. total cost of ownership
15. Which of the following is not a dimension associated with socially responsible procurement?
a. profit
b. safety
c. the environment
d. human rights
16. With respect to gift giving and gift receiving, a ___________ refers to money paid before an exchange.
a. kickback
b. agglomeration
c. bribe
d. dovetailing
17. ___________ materials refer to stock that exceeds the reasonable requirements of an organization.
a. Waste
b. Excess
c. Obsolete
d. Scrap
18. ___________ materials have no economic value.
a. Waste
b. Scrap
c. Obsolete
d. Excess
CHAPTER 7: DEMAND MANAGEMENT, ORDER MANAGEMENT AND CUSTOMER SERVICE

1. The creation across the supply chain and its markets of a coordinated flow of demand is the definition of ___________.
a. order cycle
b. order management
c. demand management
d. supply chain management
2. ___________ refers to finished goods that are produced prior to receiving a customer order.
a. Make-to-stock
b. Supply management
c. Make-to-order
d. Speculation
3. ___________ refers to finished goods that are produced after receiving a customer order.
a. Make-to-stock
b. Supply management
c. Make-to-order
d. Postponement
e. Supply chain analytics
4. ___________ refers to the management of various activities associated with the order cycle.
a. Logistics
b. Order processing
c. Demand management
d. Order management
5. Order transmittal is ___________.
a. the series of events that occurs from the time a customer places an order and the time the customer receives the order
b. the series of events that occurs between the time a customer places an order and the time the seller receives the order
c. the series of events that occurs between the time a customer perceives the need for a product and the time the seller receives
the order
d. the series of events that occurs between the time a customer places an order and the time the order cycle begins
6. Order picking and assembly is ___________.
a. the final stage of the order cycle
b. the most important component of the order cycle
c. the order cycle component that follows order processing
d. the order cycle component that follows order transmittal
7. Which of the following is not a benefit of voice-based order picking?
a. fewer picking errors
b. improved productivity
c. minimal training time to learn the technology
d. fewer employee accidents
8. The final phase of the order cycle is called order ___________.
a. picking and assembly
b. delivery
 c. receiving
d. replenishment
9. The time span within which an order must arrive refers to ___________.
a. transit time reliability
b. order delivery
c. delivery window
d. transit time
10. An unhappy customer will tell ___________ other people about her/his unhappiness.
a. seven
b. nine
c. twelve
d. fifteen
11. The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience is the definition
of ___________.
a. customer service
b. the order cycle
c. a perfect order
d. customer satisfaction
12. The percentage of orders that can be completely and immediately filled from existing stock is the ___________ rate.
a. optimal inventory
b. order cycle
c. perfect order
d. order fill
13. What are multichannel marketing systems?
a. channels that have multiple intermediaries between the producer and the consumer
b. separate marketing channels that serve an individual customer
c. the same thing as horizontal marketing systems
d. channels that combine horizontal and vertical marketing systems
14. Objectives should be SMART—that is, ___________, measurable, achievable, realistic, and timely.
a. specific
b. strategic
c. static
d. striving
15. ___________ refers to a process that continuously identifies, understands, and adapts outstanding processes inside and outside an
organization.
a. Environmental scanning
b. Quality management
c. Benchmarking
d. Continuous improvement
16. ___________ is the process of taking corrective action when measurements indicate that the goals and objectives of customer service
are not being achieved.
a. Benchmarking
b. Leadership
c. Control
d. Managing
CHAPTER 8: INVENTORY MANAGEMENT

1. ___________ refers to stocks of goods and materials that are maintained for many purposes, the most common being to satisfy
normal demand patterns.
a. Logistics
b. Supply chain management
c. Inventory
d. Production
2. ___________ stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle.
a. Base
b. Speculative
c. Pipeline
d. Safety
3. ___________ stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time.
a. Base
b. Pipeline
c. Speculative
d. Buffer
4. Another name for safety stock is ___________ stock.
a. base
b. buffer
 c. cycle
d. speculative
5. ___________ stock refers to inventory that is en route between various nodes in a logistics system.
a. Pipeline
b. Safety
c. Speculative
d. Cycle
6. ___________ stock refers to inventory that is held for several reasons, to include seasonal demand, projected price increases, and
potential shortages of product.
a. Base
b. Safety
c. Pipeline
d. Speculative
7. ___________ stock is carried to stimulate demand.
a. Base
b. Psychic
c. Speculative
d. Attractive
8. Each of the following is a component of inventory carrying cost except:
a. accounting cost.
b. storage cost.
c. shrinkage cost.
d. interest cost.
9. Which of the following costs is not a component of ordering (order) costs?
a. preparing invoices
b. receiving orders
c. verifying inventory availability
d. transporting orders
10. The economic order quantity (EOQ) deals with calculating the proper order size with respect to ___________ costs and ___________
costs.
a. ordering; stockout
b. stockout; carrying
c. accounting; carrying
d. carrying; ordering
11. The economic order quantity (EOQ) determines ___________.
a. the point at which a company should reorder
b. the point at which carrying costs equal ordering costs
c. the point at which the sum of carrying costs and ordering costs is maximized
d. the relevant inventory flow for a particular time period
12. Concerning the EOQ model, if demand or annual usage increases by 10 percent, then the EOQ will ___________.
a. It depends on the particular product.
b. increase
c. decrease
d. stay unchanged
13. Concerning the EOQ model, if the ordering costs increase by 10 percent and the product value increases by 10 percent, then the EOQ
will ___________.
a. stay unchanged
b. increase
c. decrease
d. It depends on the particular product.
14. ___________ refers to the number of times inventory is sold in a one-year period.

a. Churn
b. Inventory turnover
c. Cost of goods sold
d. Average inventory
15. Inventory turnover can be calculated by ___________.
a. dividing the cost of goods sold by average inventory
b. dividing average inventory by the cost of goods sold
c. multiplying average inventory by 1.5
d. adding beginning and ending inventory and then dividing by 2
16. ___________ products refer to those that customers view as being able to fill the same need or want as another product.
a. Psychic stock
b. Complementary
c. Substitute
 d. Co-branded
17. Which of the following statements about vendor-managed inventory (VMI) is false?
a. Vendors might be more proficient than customers at managing inventories.
b. Vendors have more control over when and how inventory is shipped to customers.
c. There may be inadequate sharing of data between the relevant parties.
d. VMI will produce immediate benefits.

CHAPTER 9: FACILITY LOCATION

1.The initial focus in facility location is on a ___________.

a. city
b. county
c. state or province
d. region
2. Which of the following statements is false?
a. The initial focus in facility location is on a region.
b. Because manufacturing plants and warehousing can be very expensive to lease or build, companies are hesitant to close them.
c. Poorly located facilities do not impact logistical effectiveness.
d. Poorly located facilities negatively impact logistical efficiency.
3. ___________ refers to companies that reconfigure their logistics networks to bring some production facilities closer to key consumer
markets.
a. Nearsourcing
b. Outsourcing
c. Relocation
d. Locavore strategy
4. A pure material is one that___________.
a. loses no weight in manufacturing
b. cannot be mixed with other materials
c. is soluble in water
d. comes from the ocean
5. The processing point for a pure material ___________.
a. should be closer to the source than to the market
b. should be closer to the market than to the source
c. can be anywhere in the world
d. can be anywhere near the source and the market
6. The processing point for a weight-gaining raw material ___________.
a. can be anywhere near the source and the market
b. should be near its source
c. should be near the final market
d. should be equidistant between the source and the market
7. Labor force ___________ is/are a key locational determinant as supply chains become more global in nature.
a. wage rates
b. size
c. skills
d. age
8. An expatriate refers to a person who ___________.
a. is sent to work in other countries for extended periods of time
b. holds dual citizenship
c. has been stripped of citizenship
d. is ineligible to work outside his/her home country
9. Which of the following statements is false?
a. The accessibility of highway transportation often ranks as one of the most important criteria in facility location.
b. Transportation considerations are a key aspect of facility location decisions.
c. A poor facility location can increase transportation costs as well as negatively impact customer service.
d. Intermodal competition refers to the number of carriers within a particular mode of transportation.
10. ___________ refers to the net advantages that can be gained by a sharing of common locations by various enterprises.
a. Supplier development
b. Coopetition
c. Supplier relationship management
d. Agglomeration
11. The agglomeration concept is better known today as the ___________ concept.
a. nearsourcing
b. coopetition
c. industry cluster
d. supply chain management
12. Supplier parks are a concept that developed around ___________ and their suppliers in Europe.
a. appliance makers
b. apparel makers
c. computer makers
d. automakers
13. With respect to commodity flows, logisticians are especially interested in ___________ and ___________.
a. what is being produced; where it is being shipped
b. how much is being produced; where it is being produced
c. how much is being produced; where it is being shipped
d. what is being produced; where it is being produced
d. Malaysia
14. Which of the following is not a site-specific (specialized) factor in facility location?
a. environment
b. zoning restrictions
c. weather
d. natural resources
15. A free trade zone refers to an area ___________.
a. that is home to businesses that are owned and operated by large concentrations of a particular ethnic group
b. in which products can be stored, exhibited, or processed without being subjected to duties and quotas unless they enter the customs
territory of the zone country
c. in which the federal government disregards all import and export quotas for products coming from, or destined to, “favored”
nations
d. outside the legal jurisdiction of federal, state, and/or local governments
16. The center-of-gravity approach to location analysis minimizes ___________.
a. labor costs
b. warehousing costs
c. real estate taxes
d. distance to existing facilities
17. How does the weighted center-of-gravity approach to location analysis differ from the center-of-gravity approach to location analysis?
a. The weighted approach considers real estate taxes.
b. The weighted approach is less complicated.
c. The weighted approach considers shipment volume.
d. The weighted approach considers tapering rates.
18. Which of the following is not a possible reason for a facility closing?
a. eliminating redundant capacity in mergers and acquisitions
b. poor planning
c. insufficient volume of business
d. limited competition

WAREHOUSING MANAGEMENT
1.Warehousing and ___________ are substitutes for each other.
a. transportation
b. materials handling
c. packaging
d. inventory management
2. Which of the following has been referred to as “transportation at zero miles per hour”?
a. materials handling
b. inventory management
c. procurement
d. warehousing
3. ___________ and ___________ refer to adjustments associated with the quantity of product.
a. Allocating; assorting
b. Accumulating; allocating
c. Sorting out; accumulating
d. Sorting out; assorting
4. ___________ involves bringing together similar stocks from different sources.
a. Bulk-breaking
b. Assorting
c. Accumulating
d. Sorting out
5. ___________ refers to building up a variety of different products for resale to particular customers.
a. Accumulating
b. Allocating
c. Sorting out
d. Assorting
6. ___________ refers to separating products into grades and qualities desired by different target markets.
 a. Assorting
b. Sorting out
c. Allocating
d. Accumulating
7. Warehouses emphasize ___________ and their primary purpose is to maximize ___________.
a. rapid movement of product; usage of available storage space
b. rapid movement of product; throughput
c. product storage; usage of available storage space
d. product storage; throughput
8. Distribution centers emphasize ___________, and their primary purpose is to maximize ___________.
a. rapid movement of product; throughput
b. product storage; throughput
c. product storage; usage of available storage space
d. rapid movement of product; usage of available storage space

9. Throughput refers to ___________.

a. storage capacity of a warehousing facility
b. volume through a pipeline
c. inventory turnover in a one-month period
d. amount of product entering and leaving a facility in a given time period
10. ___________ are focused on e-commerce orders.
a. Warehouses
b. Distribution centers
c. Fulfillment centers
d. Cross-dock facilities
11. ___________ refers to a process of receiving product and shipping it out the same day or overnight without putting it into storage.
a. Just-in-time
b. Cross-docking
c. Accumulation
d. Agglomeration
12. Which of the following is not a possible design shape for a cross-dock facility?
a. I
b. H
c. U
d. X
13. What are the two major sources of labor in logistics?
a. warehousing and materials handling
b. transportation and warehousing
c. order management and materials handling
d. packaging and transportation
14. ___________ warehousing is owned by the firm storing goods in the facility.
a. Private
b. Public
c. Contract
d. Multiclient
15. Multiclient warehousing mixes attributes of ___________ and ___________ warehousing.
a. private; contract
b. common; private
c. public; common
d. public; contract
16. Trade-offs must be made among space, labor, and ___________ with respect to warehousing design.
a. cost
b. construction materials
c. mechanization
d. speed
17. A key advantage of fixed slot locations in a warehouse is ___________.
a. improved employee morale
b. knowledge of where specific products are located
c. better materials handling
d. increased space utilization
18. A key advantage of variable slot locations in a warehouse is ___________.
a. increased space utilization
b. better materials handling
c. ease of record keeping
d. more logical and simple product layout
19. Which of the following is not an example of warehouse automation?
 a. radio frequency identification
b. narrow aisle forklifts
c. automated guided vehicles
d. pallet jacks
20. Which of the following is not a potential measure of warehousing productivity?
a. average warehouse capacity used
b. order fill rate
c. pallets shipped per person
d. cases shipped per person
21. What is the most frequent source of injuries among warehousing personnel?
a. repetitive motion
b. assault by other warehousing personnel
c. workers struck by an object
d. back and shoulder injuries
22. What is dunnage?
a. additional payment for special handling
b. a type of packaging material that is placed inside of boxes
c. material that is used to block and brace products inside carrier equipment
d. additional transportation fees that are charged to small shippers
23. Which of the following is not one of the four questions associated with effective management of hazardous materials storage?
a. What material is being stored?
b. Why is the material being stored?
c. What is the material’s source?
d. Where is the material being stored?
24. Which of the following statements is false?
a. Clean and sanitary warehousing facilities can have a positive impact on morale.
b. One suggestion for warehouse sanitation is to clean the facility at least once a day.
c. Clean and sanitary warehousing facilities can reduce employee turnover.
d. Clean and sanitary warehousing facilities require costly technology.
CHAPTER 11: PACKAGING AND MATERIALS HANDLING

1. Product density refers to a product’s ___________.

a. volume
b. weight
c. weight per volume
d. fragility
2. Which of the following statements is false?
a. A product’s chemical characteristics have little to no influence on the way the product is handled.
b. Some products can be exposed to freezing weather; others cannot.
c. The various properties of goods must be made known to consumers to help them make the correct buying decision and
properly care for the product.
d. Perishable products require special packaging as they move from source to customer.
3. The building blocks concept is associated with which logistics function?
a. warehousing
b. packaging
c. materials handling
d. inventory management
4. ___________ refers to materials used for the containment, protection, handling, delivery, and presentation of goods.
a. Materials management
b. Materials handling
c. Procurement
d. Packaging
5. Properly designing a protective packaging system requires three important kinds of information. Which of the following is not one of
the three kinds of information?
a. severity of the distribution environment
b. performance characteristics of the various cushion materials
c. fragility of the product to be protected
d. value of the product to be protected
6. Each of the following is a shipping hazard that a package may be exposed to except:
a. retraction.
b. vibration.
c. compression.
d. rough handling.
7. Which of the following statements is false?
a. Package labeling is usually done at the end of the assembly line.
b. Pictures are preferable to words for labeling a product.
 c. Labeling regulations may differ from country to country.
d. Labeling requirements within a particular country can vary from state to state (province to province).
8. Which of the following is not a characteristic of plastic packaging?
a. There is a lack of versatility.
b. It takes a long time to biodegrade.
c. Plastic packaging is cheaper than paper packaging.
d. Plastic litter can kill marine animals.
9. Which of the following statements about biodegradable plastics is false?
a. It takes less time to break down.
b. It requires more energy to produce.
c. It is easier to recycle.
d. It is non-toxic.
10. ___________ systems consider the reverse flow of products, their reuse, and the marketing and distribution of recovered products.
a. Eco-friendly
b. Open-loop
c. Closed-loop
d. Dynamic
11. A “box-maker’s certificate” ___________.
a. indicates a box’s environmental friendliness
b. is given in recognition of superior box-making ability
c. assures that boxes are free from any visible defects
d. assures railroads and motor carriers that boxes are sufficiently sturdy to meet their handling requirements
12. Dimensional weight ___________.
a. considers a shipment’s density to determine a shipment’s billable weight
b. only applies to big and bulky items
c. is the same as a shipment’s actual weight
d. tends to decrease shipping costs
13. A major advantage of the unit load is ___________.
a. its environmental friendliness
b. that mechanical devices can be substituted for manual labor
c. its value to companies that deal in small quantities
d. that it simplifies transportation requirements
14. The ___________ has established six international pallet size standards.
a. World Trade Organization
b. International Chamber of Commerce
c. International Standards Organization
d. United Nations
15. The ___________ is generally viewed as the basic unit in unit loading.
a. box
b. crate
c. pallet
d. container
16. The vast majority of pallets are made of ___________.
a. wood
b. plastic
c. fiberboard
d. metal
17. A major drawback to metal and plastic pallets is their ___________.
a. life span
b. price
c. weight
d. incompatibility with existing forklifts
18. ___________ refers to the science that seeks to adapt work or working conditions to suit the abilities of the worker.
a. Materials handling
b. Kinetics
c. Physiology
d. Ergonomics
19. . It is important that the materials handling equipment be aligned with an organization’s objectives, customers, and ___________.
a. suppliers
b. top management
c. products
d. stakeholders
20. Which of the following is not an example of materials handling storage equipment?
a. conveyor systems
b. racks
c. shelves
 d. bins
21. All of the following are examples of handling equipment in materials handling except:
a. lift trucks.
b. cranes.
c. bins.
d. conveyor systems.
CHAPTER 12: TRANSPORTATION

1. ___________ is the actual, physical movement of goods and people between two points.
a. Logistics
b. Transportation
c. Materials handling
d. Materials management
2. There are ___________ modes of transportation.
a. three
b. four
c. five
d. six
3. Rail gauge refers to ___________.
a. the allowable speed on a particular segment of track
b. the thickness of rail track
c. the length of rail track
d. the distance between the inner sides of two parallel rail tracks
4. ___________ refers to the terminal-to-terminal movement of freight or passengers.

a. Materials handling
b. Accessorial service
c. Line-haul
d. Order delivery
5. ___________ are generally the fastest form of transportation for shipments exceeding 600 miles.
a. Less-than-truckload motor carriers
b. Air carriers
c. Parcel carriers
d. Truckload motor carriers
6. Airfreight is best suited to transport ___________, ___________ products.
a. high-value; lower-volume
b. low-value; lower-volume
c. high-value; higher-volume
d. low-value; higher-volume
7. Less-than-truckload motor carriers ___________.
a. serve only regional markets
b. operate through a series of terminals
c. are exempt from hours-of-service regulations
d. carry the shipment directly from shipper to consignee
8. Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ___________.
a. cost efficiency
b. customer requirements
c. operational efficiency
d. safety concerns
9. The primary advantage for motor carriers is ___________.
a. reliability
b. speed
c. capability
d. flexibility
10. Airfreight is the costliest mode for freight transportation. What is the second most expensive mode of freight transportation?
a. motor carrier
b. water
c. rail
d. pipeline
11. ___________ is the most reliable form of transportation.
a. Rail
b. Motor carrier
c. Pipeline
d. Air
12. ___________ pipelines carry crude oil from gathering-line concentration points to the oil refineries.
 a. Product
b. Trunk
c. Slurry
d. Collection
13. ___________ have a level of market concentration and dominance that is not found in the other modes.
a. Railroads
b. Pipelines
c. Airlines
d. Motor carriers
14. Which mode is not the “best” or “worst” on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare
transport modes?
a. railroads
b. water carriers
c. pipelines
d. motor carriers
15. Railroads tend to transport ___________, ___________ shipments.
a. higher-value; higher-volume
b. lower-value; lower-volume
c. higher-value; lower-volume
d. lower-value; higher-volume
16. A ___________ raises or lowers barges so that they can meet the river’s level as they move upstream or downstream.
a. container ship
b. lock
c. unit load device
d. towboat
17. The predominant commodity moved by barge transportation is ___________.
a. grain
b. coal
c. iron ore
d. petroleum
18. ___________ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each
mode while at the same time minimizing their disadvantages.
a. Intermodal
b. Relational
c. Intramodal
d. Collaborative
19. The primary advantage to land bridge service is ___________.
a. less loss and damage
b. reduced transit times
c. lower transportation cost
d. improved reliability
20. A transportation broker ___________.
a. looks to match a shipper’s freight with a carrier to transport it
b. deals only with agricultural products
c. is the same as a freight forwarder
d. tends to be spun off from carriers or management consulting firms
21. Private transportation is most prevalent in the ___________ industry.
a. pipeline
b. trucking
c. railroad
d. airline
CHAPTER 13: TRANSPORTATION MANAGEMENT

1. ___________ refers to the buying and controlling of transportation services by either a shipper or consignee.
a. Transportation management
b. Logistics management
c. Routing
d. Tracking
2. ___________ signifies the price charged for freight transportation.
a. Fare
b. Tariff
c. Rate
d. Revenue
3. Which of the following is not one of the three primary factors that transportation rates are based upon?
a. product
b. density
 c. weight
d. distance
4. Weight times rate equals ___________.
a. density
b. transportation cost
c. stowability
d. volume
5. A(n) ___________ rate refers to a specific rate for every possible combination of product, weight, and distance.
a. classification
b. ad valorem
c. commodity
d. class
6. A(n) ___________ rate is very good for dealing with demand-specific situations.
a. density
b. commodity
c. class
d. ad valorem
7. A(n) ___________ rate simplifies each of the three primary rate factors—product, weight, and distance.
a. class
b. ad valorem
c. density
d. commodity
8. Which of the following is not one of the four factors used to determine a product’s classification?
a. density
b. liability to damage and theft
c. stowability
d. product value
9. ___________ refers to how heavy a product is in relation to its size.
a. Stowability
b. Volume
c. Weight
d. Density
10. ___________ refers to how easy a commodity is to pack into a load.
a. Recoupering
b. Stowability
c. Dunnage
11. With ___________, the buyer assumes title and control of a shipment at the point of pickup.
a. FOB destination
b. integrated logistics
c. FREE ON BOARD (FOB) origin
d. omnichannel marketing
12. With ___________, the seller retains title and control of a shipment until it is delivered.
a. FREE ON BOARD (FOB) destination
b. integrated logistics
c. FREE ON BOARD (FOB) origin
d. omnichannel marketing
13. A(n) ___________ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to
the mode and carrier used to provide the transportation service.
a. class rate shipper
b. certified logistics professional
c. third-party logistics shipper
d. amodal shipper
14. The most important single transportation document is the ___________.
a. freight bill
b. bill of lading
c. commercial invoice
d. certificate of origin
15. An invoice submitted by the carrier requesting to be paid is ___________.
a. a freight bill
b. a bill of lading
c. voucher
d. dunnage
16. ___________ can be defined as the process of determining how a shipment will be moved between origin and destination.
a. Tracking
b. Demurrage
c. Transportation
 d. Routing
17. A ___________ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred
carriers, and a list of which carrier or carriers to use for shipments moving between two points.
a. freight classification manual
b. routing guide
c. tariff
d. bill of lading
18. ___________ refers to determining a shipment’s location during the course of its move.
a. Expediting
b. Calibration
c. Reparation
d. Tracking
19. ___________ refers to rapidly moving a shipment through a carrier’s system.
a. Expediting
b. Tracking
c. Fast logistics
d. Cross-docking
CHAPTER 14: INTERNATIONAL LOGISTICS

1. ___________ refers to the sum of the gross domestic product of all countries.
a. Net world product
b. World net income
c. Gross world product
d. Gross world income
2. ___________ are taxes that governments place on the importation of certain items.
a. Tariffs
b. Surcharges
c. Quotas
d. Embargoes
3. A(n) ___________ limits the amount of product that may be imported from any one country during a particular period of time.
a. embargo
b. import quota
c. confiscation
d. tariff
4. A(n) ___________ prohibits trade between countries.
a. expropriation
b. confiscation
c. import quota
d. embargo
5. What is the name for a system of accounts that records a country’s international financial transactions?
a. tariffs
b. balance of payments
c. import/export accounts
d. gross domestic product
6. Cargo preference rules ___________.
a. are synonymous with embargoes
b. indicate how each shipment should be loaded into a transport vehicle
c. indicate a shipper’s preferred carrier(s)
d. require a certain percentage of traffic to move on a nation’s flag vessels
7. When one country’s currency is weak relative to other currencies, ___________.
a. it becomes costlier to import products to the country, but its exports surge
b. both imports and exports surge
c. it becomes costlier to export products from the country, but its imports surge
d. it becomes costlier to import and export products
8. Which of the following statements about sachets is false?
a. Sachets can be easier to lose.
b. Sachets are more prone to theft.
c. Sachets need different packaging.
d. Sachets tend to be sold in higher-income countries.
9. ___________ was the most recent country to be admitted to the European Union, in 2013.
a. Turkey
b. Serbia
c. Croatia
d. Montenegro
10. A ___________ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.
a. RFID tag
 b. shipper’s mark
c. shipment coordinator
d. bar code
11. Which of the following is not a cultural factor that can influence international logistics?
a. language
b. time orientation
c. population
d. national holidays
12. A ___________ specifies the country or countries in which a product is manufactured and can be required by governments for control
purposes or by an exporter to verify the location of manufacture.
a. commercial invoice
b. waybill
c. certificate of origin
d. shipper’s export declaration
13. A ___________ is similar in nature to a domestic bill of lading and summarizes the entire transaction.
a. certificate of origin
b. commercial invoice
c. shipper’s letter of instruction (SLI)
d. shipper’s export declaration (SED)
14. A ___________ often serves as the basis for a country’s official export statistics.
a. shipper’s export declaration
b. shipper’s bill of lading
c. certificate of origin
d. commercial invoice
15. Which of the following Incoterms does not apply to sea and inland waterway transport only?
a. free alongside ship (FAS)
b. cost and freight (CFR)
c. free carrier (FCA)
d. free on board (FOB)
16. Which of the following is not a method of payment for international shipments?
a. letter of credit
b. open account
c. cash in advance
d. forfaiting
17. Which method of payment for international shipments is extremely risky for the seller and minimally risky for the buyer?
a. letter of credit
b. open account
c. bills of exchange
d. cash in advance
18. What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied
with applicable terms and conditions of the particular transaction?
a. bill of exchange
b. letter of credit
c. forfaiting
d. open account
19. ___________ act as the export sales department for a manufacturer.
a. International freight forwarders
b. Shippers associations
c. Export management companies
d. Export trading companies
20. Approximately ___________ percent of cross-border shipments move by water transportation.
a. 40
b. 50
c. 60
d. 70
21. ___________ is the world’s busiest container port.
a. Singapore
b. Shanghai
c. Hong Kong
d. Shenzhen
22. Seven of the 10 busiest container ports are located in ___________.
a. Europe
b. the United States
c. China
d. the Middle East
23. ___________ refer to major ports where thousands of containers arrive and depart each week.
 a. Load centers
b. Break-bulk centers
c. Consolidation points
d. Hubs
24. Shipping conferences refer to ___________.
a. annual meetings of large international shippers
b. international shippers’ associations
c. cartels of ocean vessel operators operating between certain trade areas
d. water ports that are located in the same geographic area
25. What concept refers to a situation in which ocean carriers retain their individual identities but cooperate in the area of operations?
a. ocean carrier alliances
b. relational exchanges
c. shipping conferences
d. partnerships
26. Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ___________.
a. antitrust immunity
b. a broader service network
c. lower rates
d. faster transit times
27. Integrated air carriers ___________.
a. perform transportation in tightly linked supply chains
b. are those that own several modes of transportation
c. utilize the services of scheduled airlines
d. own all their vehicles as well as pick up and delivery facilities
28. The Open Aviation Area is an open skies agreement between the United States and ___________.
a. China
b. Brazil
c. the European Union
d. India
29. Which countries rank first, second, and third, respectively in terms of highway mileage?
a. United States, India, China
b. China, India, United States
c. China, United States, Russia
d. Russia, United States, China
e. Some countries limit a motor carrier’s operations to within a particular state’s borders.