north texas roundtable - logistics challenge 2000 council of logistics management logistics...

North Texas Roundtable - Logistics Challenge 2000COUNCIL OF LOGISTICS MANAGEMENT

LogisticsChallenge

2000


About the Challenge

• A ‘College Bowl’ type competition between universities

• Tonight’s questions are from last year’s 12th Annual Pittsburgh CLM Roundtable College Challenge– In 1998, UNT had the highest finish of

any first time team.– In 1999, UNT won the national

championship.• Kathryn Cunningham (pursuing UNT MBA)• Chris Jarrard (webTransport)• Rex Fryhover (Nokia)• Dustin Storey (CH Robinson)


Challenge Costs• The Pittsburgh CLM Roundtable pays for

the room and board expenses of all competing teams and their faculty advisor

• Competing teams are responsible for their own travel expenses:– In the last two years the UNT teams have

been sponsored by the Texas Logistics Education Foundation (TLEF)


Rules and Procedures

• The competition involves preliminary qualifying rounds. Teams with the top score from each qualifying round (plus the highest 2nd score) compete in the Final Championship Round.

• Tonight’s college teams:– DeVry– UNT– UTA


PreliminaryRoundOne

10 questions


1st Five Questions:5 points

Response Time:10 seconds


Round 1 - Question 1

An order bill of lading differs from a straight bill of lading in that:

a. an order bill is a freight bill while the straight bill is not

b. an order bill is negotiable while the straight bill is not

c. the straight bill is negotiable while an order bill is not

d. there is no difference between the two



An order bill of lading differs from a straight bill of lading in that:

a.a. an order bill is a freight bill while the an order bill is a freight bill while the straight bill is notstraight bill is not

b. an order bill is negotiable while the straight bill is not

c.c. the straight bill is negotiable while an the straight bill is negotiable while an order bill is notorder bill is not

d.d. there is no difference between the twothere is no difference between the two



a. considers the supply side of the transport pricing function

b. considers the value of products to be irrelevant with respect to transport pricing

c. considers the ability of the product to withstand transportation charges

d. determines the lower limit of freight ratese. none of the above

In transportation value of service pricing:



a. considers the supply side of the transport considers the supply side of the transport pricing functionpricing function

b. considers the value of products to be considers the value of products to be irrelevant with respect to transport pricingirrelevant with respect to transport pricing

c. considers the ability of the product to withstand transportation charges

d. determines the lower limit of freight ratesdetermines the lower limit of freight ratese. none of the abovenone of the above

In transportation value of service pricing:



a. customer intervalb. product cyclec. time intervald. order cycle

What is the time called that it takes for a customer to receive an order once it

has been placed?



a. customer intervalcustomer intervalb. product cycleproduct cyclec. time intervaltime intervald. order cycle

What is the time called that it takes for a customer to receive an order once it

has been placed?


If a railroad carries more freight which increases its revenues by, say 10%,

but its costs increase by only 5%, what effect will this have on its “operating

ratio?”


a. decrease itb. increase itc. have no effect


If a railroad carries more freight which increases its revenues by, say 10%,

but its costs increase by only 5%, what effect will this have on its “operating

ratio?”


a. decrease itb. increase itincrease itc. have no effecthave no effect



a. decreasingb. inelasticc. elasticd. insensitivee. none of the above

Which best describes the aggregate demand for freight transportation?



a. decreasingdecreasingb. inelasticc. elasticelasticd. insensitiveinsensitivee. none of the abovenone of the above

Which best describes the aggregate demand for freight transportation?


2nd Five Questions:10 points




a. deregulationb. just-in-time inventory systemsc. fuel price increasesd. the globalization of business

Each of the following factors have significantly altered the face of

transportation except:



a. deregulationderegulationb. just-in-time inventory systemsjust-in-time inventory systemsc. fuel price increasesd. the globalization of businessthe globalization of business

Each of the following factors have significantly altered the face of

transportation except:



a. closer to customerb. cost controlc. local decision makingd. empower the workforce

Which of the following factors tends to drive firms toward centralizing their

logistics functions?



a. closer to customercloser to customerb. cost controlc. local decision makinglocal decision makingd. empower the workforceempower the workforce

Which of the following factors tends to drive firms toward centralizing their

logistics functions?



a. the shipper is responsible for freight costsb. the carrier is responsible for freight costsc. the freight costs are dependent on the

carrier’s F.O.B. estimated. the consignee is responsible for freight

costs

With “F.O.B. Origin” terms:



a. the shipper is responsible for freight coststhe shipper is responsible for freight costsb. the carrier is responsible for freight coststhe carrier is responsible for freight costsc. the freight costs are dependent on the the freight costs are dependent on the

carrier’s F.O.B. estimatecarrier’s F.O.B. estimated. the consignee is responsible for freight

costs

With “F.O.B. Origin” terms:



a. rates must cover fixed costs, variable costs, and planned profit

b. rates must cover fixed costs, variable costs, and marginal profit

c. rates must cover only fixed and variable costs

d. rates must cover variable costs

Contribution pricing theory requires:



a. rates must cover fixed costs, variable costs, rates must cover fixed costs, variable costs, and planned profitand planned profit

b. rates must cover fixed costs, variable costs, rates must cover fixed costs, variable costs, and marginal profitand marginal profit

c. rates must cover only fixed and variable rates must cover only fixed and variable costscosts

d. rates must cover variable costs

Contribution pricing theory requires:



a. pulls the location towards the source or market

b. pushes the facility towards the source of the raw material

c. there is no effectd. makes the optimum location at the

midpoint between the raw material sources and the marketplace

What is the effect of tapering rates on facility location?



a. pulls the location towards the source or market

b. pushes the facility towards the source of pushes the facility towards the source of the raw materialthe raw material

c. there is no effectthere is no effectd. makes the optimum location at the makes the optimum location at the

midpoint between the raw material midpoint between the raw material sources and the marketplacesources and the marketplace

What is the effect of tapering rates on facility location?


RoundOne

Tiebreaker(if required)


Tie 1 - Question 1

a. pipelineb. railroadc. waterd. motor carrier

Which mode of transportation has the highest proportion of fixed costs?


Tie 1 - Question 1

a. pipelineb. railroadrailroadc. waterwaterd. motor carriermotor carrier

Which mode of transportation has the highest proportion of fixed costs?


Tie 1 - Question 2

a. the biggest problem with screening is that only a sample of items are inspected in batch

b. the average manufacturing firm spends three times more on compensation than on purchases

c. the key document in the movement of goods is the bill of materials

d. a rate that does not vary based on distance is called a blanket rate

e. all of the above are false

Which of the following statements is true?


Tie 1 - Question 2

a. the biggest problem with screening is that only a the biggest problem with screening is that only a sample of items are inspected in batchsample of items are inspected in batch

b. the average manufacturing firm spends three the average manufacturing firm spends three times more on compensation than on purchasestimes more on compensation than on purchases

c. the key document in the movement of goods is the key document in the movement of goods is the bill of materialsthe bill of materials

d. a rate that does not vary based on distance is called a blanket rate

e. allall of the above are false of the above are false

Which of the following statements is true?


Tie 1 - Question 3

a. the marketing mixb. the customer service mixc. the logistics mixd. the promotion mix

The blending of product availability, order cycle time, distribution system

flexibility, distribution system information, distribution system

malfunction, and post sale product support for customers is known as:


Tie 1 - Question 3

a. the marketing mixthe marketing mixb. the customer service mixc. the logistics mixthe logistics mixd. the promotion mixthe promotion mix

The blending of product availability, order cycle time, distribution system

flexibility, distribution system information, distribution system

malfunction, and post sale product support for customers is known as:


Tie 1 - Question 4

a. set up AMTRAKb. set up Conrailc. changed merger regulationsd. provided for rail deregulation

The Staggers Act of 1980 was important to railroads because it:


Tie 1 - Question 4

a. set up AMTRAKset up AMTRAKb. set up Conrailset up Conrailc. changed merger regulationschanged merger regulationsd. provided for rail deregulation

The Staggers Act of 1980 was important to railroads because it:


Tie 1 - Question 5

a. airb. motorc. pipelined. raile. water

Which transportation mode employs“batching pigs”?


Tie 1 - Question 5

a. airairb. motormotorc. pipelined. railraile. waterwater

Which transportation mode employs“batching pigs”?


PreliminaryRoundTwo

10 Questions



a. spatial relationshipb. temporal intensityc. densityd. ruler variance

The distance factor involving the location of nodes, or fixed points in the

logistics system is referred to as:



a. spatial relationshipb. temporal intensitytemporal intensityc. densitydensityd. ruler varianceruler variance

The distance factor involving the location of nodes, or fixed points in the

logistics system is referred to as:



a. the reputation of the company is improved through the use of higher priced transportation

b. the customer receives the order before the ordered delivery date

c. total logistics costs are loweredd. transit time is not a factor

Selection of air freight transportation, over a motor carrier, even if the choice increases transportation costs, might

be justified if:



a. the reputation of the company is improved the reputation of the company is improved through the use of higher priced transportationthrough the use of higher priced transportation

b. the customer receives the order before the the customer receives the order before the ordered delivery dateordered delivery date

c. total logistics costs are loweredd. transit time is not a factortransit time is not a factor

Selection of air freight transportation, over a motor carrier, even if the choice increases transportation costs, might

be justified if:



a. compressed airb. gasc. waterd. vacuume. none of the above

What medium is used to move coal in slurry lines?



a. compressed aircompressed airb. gasgasc. waterd. vacuumvacuume. none of the abovenone of the above

What medium is used to move coal in slurry lines?



a. community servicesb. level of local union activityc. zoning lawsd. location of existing and potential

customerse. all of the above

Determining where to locate a plant or warehouse involves consideration of

the following factor:



a. community servicescommunity servicesb. level of local union activitylevel of local union activityc. zoning lawszoning lawsd. location of existing and potential location of existing and potential

customerscustomerse. all of the above

Determining where to locate a plant or warehouse involves consideration of

the following factor:



a. carriers to price their offerings without the need to publish rates

b. confidential “all trade” service contracts between carriers and shippers

c. a. and b. aboved. none of the above

As of May of 1999, ocean transport was deregulated. This allowed:



a. carriers to price their offerings without carriers to price their offerings without the need to publish ratesthe need to publish rates

b. confidential “all trade” service contracts between carriers and shippers

c. a. and b. abovea. and b. aboved. nonenone of the above of the above

As of May of 1999, ocean transport was deregulated. This allowed:



a. the EOQ will increase by 10%b. the EOQ will increase by 20%c. the EOQ will decrease by 10%d. the EOQ will decrease by 20%e. the EOQ will remain the same

If demand increases by 10% and the value of each unit increases by 10%,

what will happen to the EOQ? (Assume that everything else remains the

same).



a. the EOQ will increase by 10%the EOQ will increase by 10%b. the EOQ will increase by 20%the EOQ will increase by 20%c. the EOQ will decrease by 10%the EOQ will decrease by 10%d. the EOQ will decrease by 20%the EOQ will decrease by 20%e. the EOQ will remain the same

If demand increases by 10% and the value of each unit increases by 10%,

what will happen to the EOQ? (Assume that everything else remains the

same).



a. more “FOB Delivered” termsb. more “FOB Origin” termsc. putting less emphasis on terms and more

emphasis on first time costd. making freight cost the supplier’s

problem

Which of the following strategies are mass merchant retailers generally

pursuing:



a. more “FOB Delivered” termsmore “FOB Delivered” termsb. more “FOB Origin” termsc. putting less emphasis on terms and more putting less emphasis on terms and more

emphasis on first time costemphasis on first time costd. making freight cost the supplier’s making freight cost the supplier’s

problemproblem

Which of the following strategies are mass merchant retailers generally

pursuing:



a. transport costs will decrease; inventory cost and cost of lost sales will increase

b. transport costs and cost of lost sales will increase; inventory costs will decrease

c. transport costs and inventory cost will decrease; cost of lost sales will increase

d. transport costs and cost of lost sales will decrease; inventory costs will increase

e. none of the above

As the number of warehouses used by a company increases:



a. transport costs will decrease; inventory cost transport costs will decrease; inventory cost and cost of lost sales will increaseand cost of lost sales will increase

b. transport costs and cost of lost sales will transport costs and cost of lost sales will increase; inventory costs will decreaseincrease; inventory costs will decrease

c. transport costs and inventory cost will transport costs and inventory cost will decrease; cost of lost sales will increasedecrease; cost of lost sales will increase

d. transport costs and cost of lost sales will decrease; inventory costs will increase

e. nonenone of the above of the above

As the number of warehouses used by a company increases:


What is the average inventory in the following situation?

•order size = 100 units•1 demand during lead time equals 50

units•the desired level of protection from

stockouts is 97.57 (2)

a. 150 unitsb. 200 units

c. 100 unitsd. 250 units

e. 75 units



What is the average inventory in the following situation?

•order size = 100 units•1 demand during lead time equals 50

units•the desired level of protection from

stockouts is 97.57 (2)

a. 150 unitsb. 200 units200 units

c. 100 units100 unitsd. 250 units250 units

e. 75 units75 units




a. results in a contract when the acknowledgment copy is returned by the supplier to the purchaser

b. results in a contract only when the supplier ships the material

c. creates a contractd. must be done in at least two copies to be

legale. none of the above

Giving or sending a purchase order to a supplier:



a. results in a contract when the acknowledgment copy is returned by the supplier to the purchaser

b. results in a contract only when the results in a contract only when the supplier ships the materialsupplier ships the material

c. creates a contractcreates a contractd. must be done in at least two copies to be must be done in at least two copies to be

legallegale. nonenone of the above of the above

Giving or sending a purchase order to a supplier:


RoundTwo



Tie 2 - Question 1

a. the model is used to determine the lower limit of freight rates

b. the model considers the supply side of the transportation function

c. the value of the product is considered to be irrelevant in the determination of the freight rate

d. the model considers the ability of the commodity to bear a charge

Which of the following is correct regarding value of service pricing?


Tie 2 - Question 1

a. the model is used to determine the lower the model is used to determine the lower limit of freight rateslimit of freight rates

b. the model considers the supply side of the the model considers the supply side of the transportation functiontransportation function

c. the value of the product is considered to the value of the product is considered to be irrelevant in the determination of the be irrelevant in the determination of the freight ratefreight rate

d. the model considers the ability of the commodity to bear a charge

Which of the following is correct regarding value of service pricing?


Tie 2 - Question 2

a. damage bagsb. dunnage bagsc. PEB bagsd. Los Angeles specials

________ are inflatable and their purpose is to hold cargo securely in

place in order to reduce L & D claims:


Tie 2 - Question 2

a. damage bagsdamage bagsb. dunnage bagsc. PEB bagsPEB bagsd. Los Angeles specialsLos Angeles specials

________ are inflatable and their purpose is to hold cargo securely in

place in order to reduce L & D claims:


Tie 2 - Question 3

a. increasing or obtaining public support for further financing needs

b. managing the transition to increased privatization

c. addressing social consideration in the area of the environment

d. all of the above

One task performed by public relations staff at public transportation agencies

consist of:


Tie 2 - Question 3

a. increasing or obtaining public support for further financing needs

b. managing the transition to increased managing the transition to increased privatizationprivatization

c. addressing social consideration in the addressing social consideration in the area of the environmentarea of the environment

d. allall of the above of the above

One task performed by public relations staff at public transportation agencies

consist of:


Tie 2 - Question 4

a. fishybackb. birdybackc. piggybackd. camelbacke. hunchback

Which of the following terms refers to using a combination of air transport

and water to deliver goods?


Tie 2 - Question 4

a. fishybackb. birdybackbirdybackc. piggybackpiggybackd. camelbackcamelbacke. hunchbackhunchback

Which of the following terms refers to using a combination of air transport

and water to deliver goods?


a. bondedb. financialc. fieldd. private

Which type of warehouse is used when a company wishes to store goods that

will be used as collateral?

Tie 2 - Question 5


a. bondedbondedb. financialfinancialc. fieldd. privateprivate

Which type of warehouse is used when a company wishes to store goods that

will be used as collateral?

Tie 2 - Question 5


FinalRound

15 Questions


Rules and Procedures

• Teams competing in the Final Championship Round will start with 0 points

• The team with the highest points at the end of the Final Championship Round is declared the winner

• The winning team in Pittsburgh is asked to designate one student who will be the paid guest of the Pittsburgh Roundtable at the next Annual CLM Conference in New Orleans.


Final Round - Question 1

a. is worth a lot of moneyb. is environmentally friendlyc. has no end dated. involves cross-border transactions

An “evergreen contract” refers to one that __________.



a. is worth a lot of moneyis worth a lot of moneyb. is environmentally friendlyis environmentally friendlyc. has no end dated. involves cross-border transactionsinvolves cross-border transactions

An “evergreen contract” refers to one that __________.


Final Round - Question 2Pittsburgh Office Supply (POS) stocks out of a certain item 20% of the time and has determined that 20% of these stock outs result in backorders, 30% result in lost sales, and 50% result in lost customers. POS has determined that backorder at $100. Its annual sales of this particular product is $10,000,000. What is the

expected cost of a stockout?

a. $2,000,000b. $1,300c. $580

d. $310e. $116


Final Round - Question 2Pittsburgh Office Supply (POS) stocks out of a certain item 20% of the time and has determined that 20% of these stock outs result in backorders, 30% result in lost sales, and 50% result in lost customers. POS has determined that backorder at $100. Its annual sales of this particular product is $10,000,000. What is the

expected cost of a stockout?

a. $2,000,000$2,000,000b. $1,300$1,300c. $580

d. $310$310e. $116$116



a. purchase economiesb. speculative investments in raw

materialsc. transportation economiesd. improvements in customer service

All are principal reasons for holding materials inventory, except:



a. purchase economiespurchase economiesb. speculative investments in raw

materialsc. transportation economiestransportation economiesd. improvements in customer serviceimprovements in customer service

All are principal reasons for holding materials inventory, except:


Final Round - Question 4Your road atlas falls on the floor and opens

to page14. The map indicates the intersection of Federal Interstates I-15 and I-94. The corner of the page which normally

indicates the state or providence associated with this map has been chewed off by your dieting roommate. If you were standing at

the intersection of these Federal Interstates, which region of the United States would you

be in?a. Northeasternb. Southeastern

c. Northwesternd. Southwestern


Final Round - Question 4Your road atlas falls on the floor and opens

to page14. The map indicates the intersection of Federal Interstates I-15 and I-94. The corner of the page which normally

indicates the state or providence associated with this map has been chewed off by your dieting roommate. If you were standing at

the intersection of these Federal Interstates, which region of the United States would you

be in?a. NortheasternNortheasternb. SoutheasternSoutheastern

c. Northwesternd. SouthwesternSouthwestern



a. the introduction of containers on US domestic ocean liners

b. regulatory reform in the railroad industry immediately after the World War

c. the ILWU’s (union) demands for increased pay and shorter work weeks

d. none of the above

The single greatest impetus toward the advancement of intermodalism was:



a. the introduction of containers on US domestic ocean liners

b. regulatory reform in the railroad industry regulatory reform in the railroad industry immediately after the World Warimmediately after the World War

c. the ILWU’s (union) demands for the ILWU’s (union) demands for increased pay and shorter work weeksincreased pay and shorter work weeks

d. nonenone of the above of the above

The single greatest impetus toward the advancement of intermodalism was:



a. suppliers replenish a retail distribution center with their product without the retailers placing an order

b. retailers handle their own inventory management

c. suppliers replenish a retail distribution center with their product when the retailers tells them to do so

d. vendors hold inventory and ship directly to each stores

Vendor-managed (VMI) is a concept where:



a. suppliers replenish a retail distribution center with their product without the retailers placing an order

b. retailers handle their own inventory retailers handle their own inventory managementmanagement

c. suppliers replenish a retail distribution suppliers replenish a retail distribution center with their product when the retailers center with their product when the retailers tells them to do sotells them to do so

d. vendors hold inventory and ship directly to vendors hold inventory and ship directly to each storeseach stores

Vendor-managed (VMI) is a concept where:



a. completed the deregulation of interstate trucking

b. completed the deregulation of interstate air freight

c. preempted that states from regulating intrastate trucking

d. preempted the states from regulating intrastate air freight

The Federal Aviation Authorization Act of 1994:



a. completed the deregulation of completed the deregulation of interinterstate state truckingtrucking

b. completed the deregulation of completed the deregulation of interinterstate air state air freightfreight

c. preempted that states from regulating intrastate trucking

d. preempted the states from regulating preempted the states from regulating intraintrastate state air freightair freight

The Federal Aviation Authorization Act of 1994:



We can compare the cost of shipping at a higher volume than the actual weight to realize a lower rate and

lower shipping cost of shipping at the actual weight by determining the weight break. The weight break

formula is?a. LV rate * WB = HV rate * MWb. WB * LV rate = MW * HV ratec. WB * HV rate = LV rate * MWd. HV rate * LV rate = WB * MW



We can compare the cost of shipping at a higher volume than the actual weight to realize a lower rate and

lower shipping cost of shipping at the actual weight by determining the weight break. The weight break

formula is?a. LV rate * WB = HV rate * MWLV rate * WB = HV rate * MWb. WB * LV rate = MW * HV ratec. WB * HV rate = LV rate * MWWB * HV rate = LV rate * MWd. HV rate * LV rate = WB * MWHV rate * LV rate = WB * MW



a. half the order quantityb. the square root of the order quantityc. the order quantity time the turnsd. the order quantity level

Average cycle stock inventory equals:



a. half the order quantityb. the square root of the order quantitythe square root of the order quantityc. the order quantity time the turnsthe order quantity time the turnsd. the order quantity levelthe order quantity level

Average cycle stock inventory equals:



a. to promote the U.S. flag merchant marineb. to avoid registering in nations with

stringent standardsc. to help the U.S. shipbuilding industryd. none of the above

Flags of convenience are used:



a. to promote the U.S. flag merchant marineto promote the U.S. flag merchant marineb. to avoid registering in nations with

stringent standardsc. to help the U.S. shipbuilding industryto help the U.S. shipbuilding industryd. nonenone of the above of the above

Flags of convenience are used:


3rd Five Questions:15 points




a. above 5-10 percent, below 50 percentb. above 15-20 percent, below 50 percentc. above 50 percent, below 5-10 percentd. above 50 percent, below 15-20 percent

Which of the following is correct regarding the zone of reasonableness established for air carriers using the standard industry level as a basis?



a. above 5-10 percent, below 50 percentb. above 15-20 percent, below 50 percentabove 15-20 percent, below 50 percentc. above 50 percent, below 5-10 percentabove 50 percent, below 5-10 percentd. above 50 percent, below 15-20 percentabove 50 percent, below 15-20 percent

Which of the following is correct regarding the zone of reasonableness established for air carriers using the standard industry level as a basis?


Final Round - Question 12 Private warehouses are generally

advantageous when:1. demand does not fluctuate2. greater control is necessary3. throughput is low and sporadic4. investment capital is scarce5. promotional items need to be stored

a. (1) and (3)b. (1), (4), and (5)c. (1) and (2)d. (1), (2), and (4)e. (2) only


Final Round - Question 12 Private warehouses are generally

advantageous when:1. demand does not fluctuate2. greater control is necessary3. throughput is low and sporadic4. investment capital is scarce5. promotional items need to be stored

a. (1) and (3)(1) and (3)b. (1), (4), and (5)(1), (4), and (5)c. (1) and (2)(1) and (2)d. (1), (2), and (4)e. (2) only(2) only



a. inventory costsb. transportation costsc. shipper-related costsd. administrative costs

Which is the largest component of logistics cost in most industries?



a. inventory costsinventory costsb. transportation costsc. shipper-related costsshipper-related costsd. administrative costsadministrative costs

Which is the largest component of logistics cost in most industries?



a. pipelineb. water carriersc. motor carriersd. railroads

Which mode of freight transport accounts for the greatest percentage

of inter city ton-miles:



a. pipelinepipelineb. water carrierswater carriersc. motor carriersmotor carriersd. railroads

Which mode of freight transport accounts for the greatest percentage

of inter city ton-miles:



a. functional dimensionb. transportation dimensionc. sectorial dimensiond. geographic dimension

Which one of the following does not make up a global logistics system:



a. functional dimensionfunctional dimensionb. transportation dimensionc. sectorial dimensionsectorial dimensiond. geographic dimensiongeographic dimension

Which one of the following does not make up a global logistics system:


FinalRound



Final / Tie - Question 1

a. $50,000b. $45,000c. $90,000d. $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$50,000b. $45,000c. $90,000$90,000d. $22,500$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. ubiquitous and pureb. weight losing and

ubiquitousc. pure and localized d. weight losing and puree. none of the above

Which one of the following is an impossible description of raw material?



a. ubiquitous and pureubiquitous and pureb. weight losing and weight losing and

ubiquitousubiquitousc. pure and localizedpure and localized d. weight losing and puree. nonenone of the above of the above

Which one of the following is an impossible description of raw material?



a. fixed plus variable costsb. an allowance established for fixed costsc. what the service is worth to the shipperd. fixed cost minus profits

When prices are set using the value of service pricing model, the lower limit

of price can be no lower than the variable cost to provide the service. What is the upper limit of the price?



a. fixed plus variable costsfixed plus variable costsb. an allowance established for fixed costsan allowance established for fixed costsc. what the service is worth to the shipperd. fixed cost minus profitsfixed cost minus profits

When prices are set using the value of service pricing model, the lower limit

of price can be no lower than the variable cost to provide the service. What is the upper limit of the price?



a. late shipmentsb. shipments accepted by non-certified

carriersc. “cut-rate” contract carriersd. paying more for freight than the actual

shipment

“Phantom” freight refers to:



a. late shipmentslate shipmentsb. shipments accepted by non-certified shipments accepted by non-certified

carrierscarriersc. ““cut-rate” contract carrierscut-rate” contract carriersd. paying more for freight than the actual

shipment

“Phantom” freight refers to:



a. both statements are trueb. the first statement is true, the second is falsec. the first statement is false, the second

statement is trued. both statements are false

Please read the following statements:Statement I• Most logistics budgets are static.Statement II• Most logistics costs are dynamic.



a. both statements are trueb. the first statement is true, the second is falsethe first statement is true, the second is falsec. the first statement is false, the second the first statement is false, the second

statement is truestatement is trued. bothboth statements are statements are falsefalse

Please read the following statements:Statement I• Most logistics budgets are static.Statement II• Most logistics costs are dynamic.

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