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Which of the following is NOT a significant contributing factor to warehouse location decisions?


A) Cost of facility maintenance.
B) Government incentives.
C) Proximity to suppliers.
D) All of the above are significant contributing factors.

E) A) and B)
F) A) and C)

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Classic center-of-gravity analytics is the final step in warehouse location decisions.

A) True
B) False

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In addition to cost,which of the following is a key factor to consider in transportation mode decisions?


A) Performance against promised delivery times.
B) Access to the mode, from both the supplier and customer perspectives.
C) Special handling requirements.
D) All of the above.

E) B) and D)
F) C) and D)

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Which of the following is true concerning logistics?


A) Logistics is often included as the "place" in the 4Ps of marketing.
B) Inventory management is often included in definitions of logistics.
C) The government plays a key role in logistics decisions.
D) All of the above.

E) A) and D)
F) None of the above

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Third-party logistics providers can play a significant role when disaster strikes,such as getting supplies to hurricane victims.

A) True
B) False

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Bringing several small shipments together to make a single larger shipment is called consolidation.

A) True
B) False

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A decision to consolidate shipments typically means the company has placed an emphasis on


A) reducing costs.
B) improving delivery service.
C) decreasing warehouse inventory.
D) all of the above.

E) A) and D)
F) None of the above

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Which of the following statements concerning third-party logistics providers (3PLs) is FALSE?


A) In business, there is an increasing trend to outsource some or all of logistics to 3PLs.
B) Even companies that consider logistics to be a core competence are routinely outsourcing logistics to 3PLs.
C) Some companies outsource all logistics to 3PLs, while others use a mix of internal logistics and 3PLs.
D) All of the above are false.

E) A) and D)
F) C) and D)

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Which of the following statements concerning logistics networks is NOT correct?


A) Network design decisions are strategic because they can impact the competitive ability of the firm.
B) Typically logistics networks start with the warehouses, then show shipping to distribution centers, which in turn ship to customers.
C) The two primary logistics network decisions are the number of warehouses needed and where they should be located.
D) Network design decisions affect both logistics cost and delivery time to customers.

E) C) and D)
F) All of the above

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Smith Equipment has three separate shipments to customers all in the same city.The shipment weights are 20,000 lbs.25,000 lbs.,and 10,000 lbs.Smith Equipment's carrier charges $14 per hundredweight (cwt) if each shipment is sent separately.If the three shipments are consolidated at Smith Equipment's warehouse and sent in a single truck,the carrier charges $11 per cwt with a $500 consolidated delivery fee per destination added.Smith Equipment should


A) send the shipments separately at a savings of $1,500.
B) consolidate the shipments at a savings of $1,635.
C) consolidate the shipments at a savings of $150.
D) either choice-the shipment costs are equal.

E) All of the above
F) A) and B)

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Which of the following is NOT a common function performed by a warehouse or distribution center?


A) Final assembly and product testing.
B) Storage of a raw material used in production.
C) Labeling and pricing of products.
D) Collection point for returned products.

E) A) and B)
F) B) and C)

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Which of the following does NOT represent one of the critical logistics decisions?


A) The trade-offs between transporting product by rail or waterway (e.g., barge) .
B) Transitioning from traditional warehouses to distribution centers.
C) Insourcing logistics through company-owned aircraft.
D) Using market surveys to estimate future demand.

E) All of the above
F) C) and D)

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When a distribution center immediately sorts large incoming shipments into smaller lots and into empty waiting trucks,this is called


A) freight forwarding.
B) breaking bulk.
C) cross-docking.
D) none of the above.

E) None of the above
F) A) and C)

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Which of the following is the most basic service provided by third-party logistics providers (3PLs) ?


A) Logistics network design.
B) Warehousing.
C) Transportation.
D) Inventory management.

E) A) and D)
F) A) and C)

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As the number of warehouses in a logistics network decreases,


A) inbound transportation and storage costs decrease.
B) inbound transportation and storage costs increase.
C) outbound transportation and storage costs decrease.
D) There is no change in either inbound or outbound transportation and storage costs.

E) C) and D)
F) B) and D)

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The five major decisions addressed by logistics managers are


A) transportation, warehousing, location, reverse logistics, and third-party logistics.
B) location, transportation, warehousing, reverse logistics, and tactical.
C) strategic, third-party logistics, warehousing, transportation, and location.
D) None of the above answers is entirely correct.

E) B) and C)
F) A) and B)

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Which of the following is NOT correct concerning the economics of transportation?


A) Larger shipments cost less per unit of weight.
B) Economies of distance replace economies of scale in transportation decisions.
C) Long distances drive down the cost per mile.
D) The transportation cost per unit increases as the utilization of container space decreases.

E) C) and D)
F) B) and C)

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Which of the following integration partnerships is especially important when considering logistics?


A) Logistics and finance.
B) Logistics and information systems.
C) Logistics and marketing.
D) Logistics and human resources.

E) A) and C)
F) A) and B)

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Materials handling,transportation,and warehousing are elements of


A) logistics.
B) purchasing.
C) demand chain management.
D) fill rate.

E) A) and C)
F) A) and B)

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The chief advantage of shipping by truck is


A) lower cost.
B) the ability to consolidate shipments.
C) location flexibility.
D) the ability to ship less-than-truckload amounts.

E) All of the above
F) A) and D)

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