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SCM 411 Chapter 1,2,3,5 Test Bank
Questions And Answers 2025- 2026
The globalization of markets is a recent phenomenon. T/F
False
Early logisticians were international traders, and, although they used different techniques andmeans of transportation, they were concerned with the same issues that present-day logisticians are concerned about. T/F
True
The modern term "logistics" is based upon a French word meaning "military train." T/F
False
The single most important development in international ocean shipping was the creation of containers. T/F
True
The person responsible for the creation of containers in 1956 was named Malcom McLean. T/F
True
The cost of air cargo shipments decreased after the deregulation of the 1980s. T/F
True
Inventory reduction was a major goal of companies in the 1980s; this change was due to the increasing costs of oil and of products manufactured with oil. T/F
False
"Time-defined" deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable. T/F
False
MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their inventory levels. T/F
True
MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the time that goods spend in transit). T/F
False
Customer service became the primary focus of logistics in the 2000s. T/F
True
Transportation decisions are more complicated in international logistics than they are in domestic logistics. T/F
True
Insurance issues in international logistics are thankfully similar in complexity to insurance issues in domestic logistics. T/F
False
Logistics cost have generally steadily declined over the past 50 years, when expressed as a percentage of the GDP of the United States. T/F
True
Logistics cost ( transportation and inventory cost) represent about 15 percent of the United States gross domestic product (GDP). T/F
False
International logistics costs (transportation and inventory costs) represent about 15 percent of the total word-wide volume of trade. T/F
True
North American firms are lagging their European counterparts in the implementation of "green practices" in manufacturing and other supply chain activities. T/F
True
"Reverse logistics" deals with the activities involved in the return of products to the manufacturer, including the return of used packaging. T/F
True
The country of Germany has implemented a secondary refuse collection system, specifically targeted at packaging materials, that is funded entirely by industry. T/F
True
The city of Curitiba, in Brazil, solved two problems at once; its recycling efforts have reduced pollution and landfill usage, while employing very-low-income residents. T/F
True
Which one was NOT one of the characteristics of the "early days" of logistics?
a. an emphasis on making sure that the goods arrived in good condition
b. an emphasis on low-cost transportation
c. long transit time
d. an emphasis on customer satisfaction
e. None of the above
d. an emphasis on customer satisfaction
e. None of the above
a. interest rates
It is not unusual for companies shipping to large manufacturers and retail chains to be penalized financially (not receiving the full invoice amount) for not
a. shipping the correct goods.
d. delivering the goods on the day and at the time promised.
b. shipping the goods in the right quantity. e. None of the above
c. shipping the entire order at once.
d. delivering the goods on the day and at the time promised.
DRP (Distribution Requirements Planning) is a system that allows manufacturers, wholesalers, and retailers of consumer products to manage their inventory "just-in-time:" DPR works as a
a. "draw" system.
d. "pull" system.
b. "push" system.
e. None of the above
c. "elastic" system.
d. "pull" system.
It is generally accepted that
a. logistics management encompasses activities that are distinct and separate from the activities included in supply chain management.
d. some of the activities of logistics management and some of the activities of supply chain management are similar, but both include distinct and separate activities.
b. logistics management encompasses activities that are broader than those of supply chain management.
e. None of the above
c. supply chain management encompasses activities that are broader than those of logistics management.
c. supply chain management encompasses activities that are broader than those of logistics management.
Which of the following is an emerging element of international logistics, according to the authors, although it is fully part of domestic logistics, according to the CSCMP?
a. reverse logistics. d. the management of paperwork
b. the management of transportation.
e. None of the above
c. the management of inventories.
a. reverse logistics.
The definition of "international supply chain management" is the same as the definition of "supply chain management," except that it makes explicit the fact that SCM
a. is global.
d. All of the above
The increased usage of air transport for international trade has had which consequence?
a. decreased shipping costs
d. increased shipping delays
b. increased insurance claims
e. All of the above
c. increased probability of a company being selected as a supplier, by reducing delivery times
c. increased probability of a company being selected as a supplier, by reducing delivery times
Which of the following group of countries is more likely to lag in terms of green practices, according to the IBM study mentioned in the text?
a. North America
d. All are at about the same level
b. Western Europe
e. None of the above
c. Asia Pacific
a. North America
A German corporation is involved in the Grüne Punkt program and recycles its final consumer packaging after the consumer has used the product. How are these types of activities called?
a. cycling logistics
d. return logistics
b. reverse logistics
e. None of the above
c. recycling logistics
b. reverse logistics
Companies increasingly are designing products so that they can gain a competitive advantage through reverse logistics. Returned products are
a. refurbished for resale in secondary markets.
d. discarded.
b. reused (packaging or containers).
e. All of the above
c. remanufactured (restored to their original performance standards).
e. All of the above
The most significant change in the past fifty years in ocean transportation was the creation of ____________________ by Malcom McLean
containers
The people whose responsibilities include loading and unloading ships are called ____________________.
longshoremen
The change in government policies that allowed FedEx and other air carriers to purchase larger aircrafts and compete with other airlines was called ____________________.
The fact that there are different languages, cultures, currencies, and laws in foreign countries illustrates the idea that the international logistician operates in a more challenging ____________________.
environment
The fact that there is a greater number of intermediaries in international logistics (banks, insurance companies, Customs, and so on) also makes that there is an abundance of ____________________.
paperwork, paper requirements
The costs of domestic logistics (transportation and inventory) represent approximately ____________________ of the GDP of the United States.
10 percent
The costs of international logistics are higher than the costs of domestic logistics. They are estimated as ____________________ of the total value of international trade.
15 percent
Reverse logistics activities are similar to the traditional activities of logistics, but occur after the product has been ____________________.
sold/consumed
Caterpillar operates 14 plants worldwide where it disassembles used heavy equipment received from its customers, with the goal of ____________________ the machines.
remanufacturing
Some companies are implementing a reverse logistics program in which they design products so that they can be used or remanufactured again and again. Such a program is called a "cradle to ____________________" design.
cradle
Given the differences logistics managers may find in other countries and cultures, it is important for them to attempt to impose what is familiar to them on those other countries and cultures.
T/F
False
A court's court system could be considered to be part of its infrastructure. T/F
True
The infrastructure that most obviously affects the movement of goods internationally is the
communications infrastructure. T/F
False
As the size of ships has increased, ports have been challenged in keeping up with the ability to handle them. T/F
True
For the most part, the emphasis on European railroads has been upon freight rather than passenger
service. T/F
False
The concern for the road infrastructure of a country is not one of density, but one of usability. T/F
True
The most common problem with the utilities part of the national infrastructure is the availability of electricity. T/F
True
Most of the easily accessible oil and gas fields are in the early part of their life expectancies. T/F
False
The infrastructure of pipelines is declining, meaning more energy needs of the world must be transported by ships, trucks, and railroads. T/F
False
The World Bank estimates that at least 75 percent of the world population has access to adequate sanitation. T/F
False
Few ports have had to dredge channels to allow ships with drafts of up to 40 feet. T/F
False
There is a direct rail link from Southern Europe to Asia where the Orient Express connects
directly with the Baghdad Railway in Istanbul. T/F
False
For security reasons, many companies are switching their mail deliveries to private services like DHL or FedEx. T/F
True
Of the following, the best definition of a logistics infrastructure would be that it consists of
a. all of the elements in place to facilitate
transportation, communication, and
business exchanges.
d. a developed banking system.
b. a country's electrical supply and road
network.
what is necessary to upgrade the smaller
ports.
e. None of the above
c. large ships will go to "hub" ports where
"feeder" ships will traverse to and from
the smaller ports
c. large ships will go to "hub" ports where
"feeder" ships will traverse to and from
the smaller ports.
Among characteristics of the Saint Lawrence Seaway is/are
a. it is wide and most ships can pass through
it.
d. it links the Great Lakes to the Saint
Lawrence River and the Atlantic Ocean.
b. it is growing in the amount of traffic it
carries.
e. None of the above
c. it provides good year-round
transportation.
d. it links the Great Lakes to the Saint
Lawrence River and the Atlantic Ocean
The busiest cargo airport in the world is
a. London Heathrow.
d. Dallas-Fort Worth International.
b. Denver International.
e. None of the above
c. Chicago O'Hare.
e. None of the above
The TGV trains connecting London and Paris
a. feature expedited container freight service. d. All of the above
b. feature package express service.
e. None of the above
c. provide the latest in break-bulk freight
transport technology
e. None of the above
Factors contributing to the rise of U.S. freight railroads since about 1980 are
a. road congestion, concerns about pollution
and noise, and development of the multimodal
container.
d. All of the above
b. higher train speeds, development of more
custom service by railroads, and concerns
