PART IIIEXAMINATION QUESTIONSCHAPTER 1: LOGISTICS AND THE SUPPLY CHAINMultiple Choice Questions1. Logistics as a percentage of U.S. Gross Domestic Product is approximately (within 2%):a. 5%b. 10%c. 15%d. 20%e. none of the above(b; p. 4)2. Logistics clearly contributes to _ and _ utility.a. time; placeb. form; timec. place; formd. possession; timee. none of the above(a; p. 4)3. _ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.a. timeb. placec. form d. possession(d; p. 4)4. _ utility refers to having products available where they are needed by customers.a. possessionb. timec. placed. form(c; p. 5)5. All of the following terms have been used to refer to business logistics except:a. business logisticsb. industrial distributionc. logistics managementd. physical distributione. all of the above are correct(e; p. 5)6. “How well a company does what it says its going to do” represents _.a. efficiencyb. productivityc. leading edge logisticsd. effectiveness(d; p. 6)7. Every customer getting the same type and levels of logistics service refers to _.a. tailored logisticsb. mass logisticsc. effectivenessd. efficiency(b; p. 7)8. Which of the following is not a reason for the increased importance of logistics?a. growing power of manufacturersb. reduction in economic regulationc. globalization of traded. technological advances(a; pp. 810)9. What logistics “outsider” developed the concept of the value chain?a. Donald Bowersoxb. Gus Pagonisc. Michael Porterd. Michael Hammer(c; p. 8)10. The _ approach indicates that a companys objectives can be realized by recognizing the mutual interdependence of major functional areas.a. supply chainb. systemsc. interfunctionalityd. total cost(b; p. 10)11. The movement and storage of materials into a firm refers to:a. physical distributionb. materials managementc. materials handlingd. inbound logistics(d; p. 10)12. The movement and storage of materials within a firm refers to:a. physical distributionb. inbound logisticsc. materials managementd. procurement(c; p. 10)13. Logistics managers use the _ approach to coordinate inbound logistics, materials management, and physical distribution in a cost efficient manner.a. total costb. supply chainc. mass logisticsd. interfunctional(a; p. 11)14. A cost trade-off is a situation where:a. all costs react according to their individual degrees of inflation in the economyb. all costs are reflected as a percentage variation from standard costsc. some costs increase, some decrease, and the net effect is that total costs decreased. some costs are eliminated by efficient management controls(c; p. 13)15. The cash flow associated with holding inventory is known as inventory _.a. turnoverb. valuationc. stockd. float(d; p. 14)16. _ refers to one location where customers can purchase products from two or more brand-name retailers.a. intensive distributionb. co-brandingc. co-generationd. selective distribution(b; p. 14)17. Phantom freight refers to:a. paying more for transportation than the actual costb. late shipmentsc. shipments accepted by non-certified carriersd. freight that “disappears” in transit(a; pp. 1516)18. Freight absorption refers to:a. a special rate to cover increasing fuel costsb. rates that are higher than other carriers chargec. the ability of cardboard to absorb moistured. transportation payments lower than the actual costs incurred to ship the product(d; p. 16)19. Landed costs refer to:a. a product that is shipped via surface transportb. a product that is quoted cost on delivery (COD)c. a prepaid shipmentd. a price that includes both the cost of the product plus transportation to the buyer(d; p. 15)20. _ is the excess freight bill paid by customers who live near the shipping point.a. freight absorptionb. delivered pricec. phantom freightd. landed price(c; p. 15)21. In FOB origin pricing, all of the following are true except:a. prices quoted do not include transportation to the consigneeb. marketers can adopt uniform prices on a regional or national basisc. consignees must arrange for the transportation of the purchased productd. the seller always receives the same net from each sale(b; p. 15)22. _ refers to a situation where the applicable charges are paid at the time a shipment is tendered to a carrier.a. freight prepaidb. freight absorptionc. phantom freightd. FOB origin(a; p. 16)23. _ refers to charges being paid at the time of shipment delivery.a. freight absorptionb. freigh