final round - question 1

CLM - Pittsburgh Roundtable2000 College Challenge

Final Round - Question 1

The bill of material includes:a. The total quantity of materials / parts needed to

meet annual production projections

b. the total quantity of material / parts to make one end unit

c. the list of potential suppliers

d. none of the above

The bill of material includes:a. The total quantity of materials / parts needed to

meet annual production projections

b. the total quantity of material / parts to make one end unit

c. the list of potential suppliers

d. none of the above

Which type of motor carrier typically has small shipments headed for more than one destination?

a. Class III

c. LCL

d. LTL

Which type of motor carrier typically has small shipments headed for more than one destination?

a. Class III

c. LCL

d. LTL

Companies that enter the international marketplace have a number of channel/distribution strategies available to them. If maximum control over the marketing mix was important and risk was not a factor, a firm would likely employ the following strategy:

a. exporting

b. importing

c. joint venture

d. licensing

e. ownership

Companies that enter the international marketplace have a number of channel/distribution strategies available to them. If maximum control over the marketing mix was important and risk was not a factor, a firm would likely employ the following strategy:

a. exporting

b. importing

c. joint venture

d. licensing

e. ownership

An “evergreen” contract refers to one that ________:

a. is worth a lot of money

b. is environmentally friendly

c. has no end date

d. involves cross-border transactions

An “evergreen” contract refers to one that ________:

a. is worth a lot of money

b. is environmentally friendly

c. has no end date

d. involves cross-border transactions

Because of its height, a pallet takes up space in a vehicle or warehouse; a method of achieving the advantages of a pallet without losing space is known as:

a. rhocrematics

b. flow-through system

c. slip-sheet system

d. mini-skid system

e. none of the above

Because of its height, a pallet takes up space in a vehicle or warehouse; a method of achieving the advantages of a pallet without losing space is known as:

a. rhocrematics

b. flow-through system

c. slip-sheet system

d. mini-skid system

e. none of the above

INCOTERMS establish the scope of responsibility for transaction cost and risk in international commerce. Which set of terms places the most cost and risk on the seller?

a. “C” terms (ie. CIF)

b. “D” terms (ie. DDP)

c. “E” terms (ie. EXW)

d. “F” terms (ie. FAS)

INCOTERMS establish the scope of responsibility for transaction cost and risk in international commerce. Which set of terms places the most cost and risk on the seller?

a. “C” terms (ie. CIF)

b. “D” terms (ie. DDP)

c. “E” terms (ie. EXW)

d. “F” terms (ie. FAS)

All of the following are assumptions of the EOQ except:

a. constant and known rate of demand

b. consistent lead time

c. no stock-outs allowed

d. capital availability is limited

e. no inventory in transit

All of the following are assumptions of the EOQ except:

a. constant and known rate of demand

b. consistent lead time

c. no stock-outs allowed

d. capital availability is limited

e. no inventory in transit

Successful supply chain management is based upon the integration and management of three types of “flows” or basic processes. Which is not a “flow”?

a. product

b. time

c. cash

d. information

Successful supply chain management is based upon the integration and management of three types of “flows” or basic processes. Which is not a “flow”?

a. product

b. time

c. cash

d. information

The following can be said about E-retailing logistics:a. logistics costs as a percent of sales are lower than for traditional bricks

and mortar retailers because of the extensive use of technology and the Internet

b. logistics costs as a percent of sales are higher than for traditional brick and mortar retailers because of the costs of picking and shipping single orders directly to consumers homes

c. order fulfillment performance has gone very well

d. a. and c.

e. b. and c.

The following can be said about E-retailing logistics:a. logistics costs as a percent of sales are lower than for traditional bricks

and mortar retailers because of the extensive use of technology and the Internet

b. logistics costs as a percent of sales are higher than for traditional brick and mortar retailers because of the costs of picking and shipping single orders directly to consumers homes

c. order fulfillment performance has gone very well

d. a. and c.

e. b. and c.

All of the following are true concerning the facility location decision except:

a. the analysis must be made in light of upper management directives regarding service levels

b. classical location theories considered transportation cost to be the major location determinant

c. the engineering determinant is the starting point for making the location decision

d. coordination is required between logistics and other functional areas

All of the following are true concerning the facility location decision except:

a. the analysis must be made in light of upper management directives regarding service levels

b. classical location theories considered transportation cost to be the major location determinant

c. the engineering determinant is the starting point for making the location decision

d. coordination is required between logistics and other functional areas

Full manufactured cost is $10/case and variable manufactured cost is $7/case. If an advanced order processing system is installed, it is estimated that, due to an increased number of planning days, average inventory levels can be decreased from 100,000 cases to 50,000 cases. If the inventory carrying cost is 25%, what will be the estimated annual savings in the inventory costs?

a. $250,000 d. $12,500

b. $87,500 e. $50,000

c. $125,000

Full manufactured cost is $10/case and variable manufactured cost is $7/case. If an advanced order processing system is installed, it is estimated that, due to an increased number of planning days, average inventory levels can be decreased from 100,000 cases to 50,000 cases. If the inventory carrying cost is 25%, what will be the estimated annual savings in the inventory costs?

a. $250,000 d. $12,500

b. $87,500 e. $50,000

c. $125,000

The biggest drawback to MRP for use in repetitive manufacturing is:

a. time phased requirements are often wrong

b. lead times are fixed rather than variable

c. the explosion process takes too long

d. an expensive information system is required

The biggest drawback to MRP for use in repetitive manufacturing is:

a. time phased requirements are often wrongb. lead times are fixed rather than variable

c. the explosion process takes too long

d. an expensive information system is required

This type of channel intermediary can handle nearly all logistical aspects of a transaction, acts like a wholesaler in marketing channels, and purchases transportation in bulk then consolidates small shipments into large shipments that move at a lower rate:

a. Export Management Company

b. Export Trading company

c. Customs Broker

d. Goods surveyors

e. Freight Forwarder

This type of channel intermediary can handle nearly all logistical aspects of a transaction, acts like a wholesaler in marketing channels, and purchases transportation in bulk then consolidates small shipments into large shipments that move at a lower rate:

a. Export Management Company

b. Export Trading company

c. Customs Broker

d. Goods surveyors

e. Freight Forwarder

Given that inventory valued at full cost equals $10 million, variable cost of the inventory is 78% of the full cost, and the inventory carrying cost is 30%, then the cost of carrying the inventory investment for one year is:

a. $7.8 million

b. $3.0 million

c. $2.3 million

d. $10 million

e. none of the above are correct

Given that inventory valued at full cost equals $10 million, variable cost of the inventory is 78% of the full cost, and the inventory carrying cost is 30%, then the cost of carrying the inventory investment for one year is:

a. $7.8 million

b. $3.0 million

c. $2.3 million

d. $10 million

e. none of the above are correct

What is the average inventory in the following situation?

Order size = 100 units

one standard deviation of demand during lead time

equals 50 units and the desired level of protection

from stockout is 97.57 (two standard deviations):

a. 150 units d. 250 units

b. 200 units e. 75 units

c. 100 units

What is the average inventory in the following situation?

Order size = 100 units

one standard deviation of demand during lead time

equals 50 units and the desired level of protection

from stockout is 97.57 (two standard deviations):

a. 150 units d. 250 units

b. 200 units e. 75 units

c. 100 units

Final Round - Tie Breaker Question 1

A firm has average inventory of $300,000. It orders twice per year. The cost of holding inventory is 15% per year. What is the annual inventory carrying cost?

a. $50,000 c. $90,000

b. $45,000 d. $22,500

A firm has average inventory of $300,000. It orders twice per year. The cost of holding inventory is 15% per year. What is the annual inventory carrying cost?

a. $50,000 c. $90,000

b. $45,000 d. $22,500

With respect to products, freight classification is based on which of the following:

a. origin and destination

b. consignee and consignor

c. interstate and intrastate movements

d. liability and handling

e. all of the above

With respect to products, freight classification is based on which of the following:

a. origin and destination

b. consignee and consignor

c. interstate and intrastate movements

d. liability and handling

e. all of the above

Your firm’s demand is “D” and your order “Q” units at a time. Your average cycle stock is:

a. Q units

b. D divided by Q

c. Q divided by D

d. Q divided by 2

Your firm’s demand is “D” and your order “Q” units at a time. Your average cycle stock is:

a. Q units

b. D divided by Q

c. Q divided by D

d. Q divided by 2

How do carrying costs and order costs vary in the simple EOQ model?

a. according to the time of the year and seasonality of demand

b. directly

c. inversely

d. not at all

How do carrying costs and order costs vary in the simple EOQ model?

a. according to the time of the year and seasonality of demand

b. directly

c. inversely

d. not at all

Cabotage laws:a. apply only to ocean carriers

b. are not commonly found outside of the U.S.

c. restrict the utilization of labor and equipment domiciled in one country from producing transportation in another

d. will be dissolved by NAFTA

e. all of the above

Cabotage laws:a. apply only to ocean carriers

b. are not commonly found outside of the U.S.

c. restrict the utilization of labor and equipment domiciled in one country from producing transportation in another

d. will be dissolved by NAFTA

e. all of the above

final round - question 1

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