Question 1

The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

Options :

A : drop shipping.

B : cross-docking.

C : breaking bulk.

D : freight equalization.

Answer: A

Question 2

Which of the following actions is most likely to reduce inventory carrying costs?

Options :

A : Utilize ABC classification

B : Standardize the items in inventory

C : Set minimum inventory levels

D : Initiate a vendor-managed inventory (VMI) program

Answer: D

Question 3

The value that logistics provides within the supply chain can best be summarized as:

Options :

A : satisfying customer expectations about availability and delivery at an acceptable total cost.

B : meeting promised location and on-time delivery goals with minimal use of expediting.

C : establishing inventory and delivery goals with various customers that fulfill the firm-s profit objectives.

D : providing accurate in-transit and delivery information to customers and salespeople.

Answer: A

Question 4

Which of the following events would rely on a company's robust reverse logistics design?

Options :

A : Decreased demand for remanufactured goods

B : Increased demand for supplier spare parts

C : Increased demand for remanufactured goods

D : Decreased demand for supplier spare parts

Answer: C

Question 5

Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

Options :

A : Use a more rapid transportation mode.

B : Increase safety stock.

C : Extend product warranty.

D : Employ lean principles.

Answer: D