Supply Chain Management A Logistics Perspective 9th Edition Coyle Test Bank
Supply Chain Management A Logistics Perspective 9th Edition Coyle Test Bank
Supply Chain Management A Logistics Perspective 9th Edition Coyle Test Bank
Multiple-Choice
10. Ensuring the availability of the right product, in the right quantity, and the right condition, at
the right place, at the right time, for the right customer at the right cost, is which definition of
logistics?
a. Seven Rs
b. Council of Logistics Management
c. Society of Logistic Engineers
d. supply chain logistics
ANSWER: a, Page 37 inside Table 2.1
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11. Logistics is the process of anticipating customer needs and wants; acquiring the capital,
materials, people, technologies, and information necessary to meet those needs and wants;
optimizing the goods- or service-producing network to fulfill customer requests; and utilizing
the network to fulfill customer requests in a timely manner. This is a
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
Chapter 2 Test Bank
ANSWER: b, Page 40
16. Logistics creates which utility through production forecasting, production scheduling and
inventory control?
a. form utility
b. quantity utility
c. time utility
d. possession utility
ANSWER: b, Page 40
17. Time utility depends on
a. when the carrier picks up the shipment.
b. transportation companies delivering on time.
c. proper forecasting.
d. having the product available when the user wants it.
ANSWER: d, Page 40
18. What is often the largest component of logistics costs?
a. inventory costs
b. transportation costs
c. shipper-related costs
d. administrative costs
ANSWER: b, Page 42
19. Materials handling is concerned with
a. inventory levels.
b. breaking bulk.
c. scheduling trade-offs.
d. short-distance movement.
ANSWER: d, Page 43
20. Marketers have begun to recognize the strategic value of place in the marketing mix, as well as
the benefits resulting from high-quality logistical services. As a result, which has been
recognized as the interface activity between marketing and logistics?
a. product
b. promotion
c. price
d. customer service
ANSWER: d, Page 52
21. It can be argued that ? is the second language of logistics and supply chain management.
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a. quality
b. manufacturing
c. finance
d. sales
ANSWER: c, Page 53
22. What activity is described as 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
ANSWER: a, Page 43
23. A(n) _______ relationship exists between the cost of lost sales and inventory cost.
a. reverse
b. proportional
c. inverse
d. non linear
ANSWER: c, Page 55
24. Water Cruisers is located in Jacksonville, Florida, and makes small yachts and luxury pontoon
boats for customers on the East coast of the United States. Each boat requires thousands of
parts purchased from over 1,000 vendors. A number of boats are in production at any one
time, so a large number of parts constantly arrive and are stored. Once a boat is finished, it is
sailed up the coast to a convenient port for customer delivery. Which type of logistics system
does Water Cruisers use?
a. balanced system
b. heavy inbound
c. heavy outbound
d. reverse system
ANSWER: b, Page 63
25. The product’s dollar value typically affects the cost of logistics activities. Which is not one
of these costs?
a. warehousing costs
b. transportation costs
c. promotion costs
d. packaging costs
ANSWER: c, Page 56
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
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26. When a specific point in time, or level of production, is chosen and costs are developed for the
various logistics cost centers, it is called
a. least cost analysis.
b. short run analysis.
c. cost center analysis.
d. link node analysis.
ANSWER: b, Page 60
27. A ______ analysis examines a logistics system over a long time period or range of output.
a. cost center analysis
b. dynamic
c. link node analysis
d. least cost analysis
ANSWER: b, Pages 61-62
28. What are fixed spatial points where goods stop for storage or processing?
a. nodes
b. links
c. cost centers
d. fulfillment centers
ANSWER: a, Page 65
29. An important sustainability issue that has received much more scrutiny in recent years is
the:
a. focus on adequate inventory levels
b. reduction in packaging waste by using alternate materials
c. effort to move warehouse storage closer to consumers
d. emphasis on materials handling and warehouse design
ANSWER: b, Page 43
30. What technology has helped make the physical inventory-taking process more efficient and
effective?
a. advances in forecasting
b. transportation management systems
c. just-in-time inventory
d. scanning of bar-coded RFID tags
ANSWER: d, Page 44
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
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Essay
31. What is the primary challenge of logistics?
ANSWER: The challenge is to manage the entire logistics system in such a way that order
fulfillment meets and perhaps exceeds customer expectations. At the same time, the competitive
marketplace demands efficiency—controlling transportation, inventory, and other logistics-related
costs. Cost and service tradeoffs must be considered when evaluating customer service levels and
the associated total cost of logistics, but both goals—efficiency and effectiveness—are important
to an organization in today’s competitive environment. (Page 36)
32. What is the definition of logistics which the authors choose and what group had
formulated it?
ANSWER: The definition offered by the Council of Supply Chain Management Professionals is:
“That part of the supply chain process that plans, implements and controls the efficient, effective
flow and storage of goods, services and related information from point of origin to point of
consumption in order to meet customer requirements.” (Page 37)
33. The text mentions four subdivisions of logistics. Pick one, define and discuss.
ANSWER: Business logistics: That part of the supply chain process that plans, implements, and
controls the efficient, effective flow and storage of goods, service, and related information from
point of origin to point of consumption in order to meet customer requirements.
• Military logistics: The design and integration of all aspects of support for the operational
capability of the military forces (deployed or in garrison) and their equipment to ensure readiness,
reliability, and efficiency.
• Event logistics: The network of activities, facilities, and personnel required to organize, schedule,
and deploy the resources for an event to take place and to efficiently withdraw after the event.
• Service logistics: The acquisition, scheduling, and management of the facilities, assets,
personnel, and materials to support and sustain a service operation or business. (Page 38)
34. There are five principal types of economic utility that add value to a product or service.
Name four of the five and pick one to discuss in more detail.
ANSWER: The five principal types of economic utility are form, time, place, quantity, and
possession. Generally, production activities are credited with providing form utility; logistics activities
with time, place, and quantity utilities; and marketing activities with possession utility. (Page 39)
35. The logistics definitions discussed indicate 14 activities for which the logistics manager
might be responsible. Name at least eight and briefly discuss any two in detail.
ANSWER:
• Transportation
• Warehousing and storage
• Industrial packaging
• Materials handling
• Inventory control
• Order fulfillment
• Inventory forecasting
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Coyle Supply Chain Management: A Logistics Perspective, 9th Edition
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Supply Chain Management A Logistics Perspective 9th Edition Coyle Test Bank
40. Spatial relationship is extremely significant to logistics. Discuss why this is true.
ANSWER: “Spatial relationships” refers to the location of fixed points in the logistics system
with respect to demand and supply points. Spatial relationships are very important to
transportation costs, since these costs tend to increase with distance.
The distance factor or spatial relationships might affect logistics costs in ways other than
transportation costs. For example, a firm located far from one or more of its markets might need
to use a market-oriented warehouse to make customer deliveries in a satisfactory time period.
Therefore, distance can add to warehousing and inventory carrying costs. (Pages 59-60)
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