29 Questions
What is the MAIN purpose of discussing transportation economics and pricing?
To understand the factors that drive transport costs
What is the BEST economic choice in a logistics system?
The point where the sum of both direct and indirect costs is lowest
Which of the following is NOT one of the four topics that build upon transportation economics and pricing?
The role and importance of logistics
What is the MAIN component of a logistics system according to the diagram?
Logistical operation
What is the MAIN trade-off mentioned in the text that needs to be considered in a logistics system?
All of the above
What is the MAIN cost conflict described in the text when transportation service is selected?
The direct cost of transport service and the indirect cost effect on inventory level
Which component is responsible for neglecting the importance of facility location and overall network design?
Facility structure
What is fundamental to logistical efficiency according to the text?
Facility network selected by management
Why is continuously modifying the facility network important according to the text?
To accommodate change in demand and supply infrastructures
Which of the following represents a series of locations through which materials and products flow?
Facility network
What directly impacts customer service capabilities and cost according to the text?
Facility structure
In business operations, what must all transactions be developed within and between?
Facility locations
Which factor does the text state influences product density, stowability, and damage?
Product packaging
What is one of the major responsibilities of transportation managers according to the text?
To obtain the best possible rating for all goods shipped
What is the relationship between rail and motor freight classification systems according to the text?
Rail classifications are more comprehensive and detailed than motor freight
How can a product's classification be changed?
By submitting a written application to the classification board
What is the role of the classification board according to the text?
To review proposals for changes or additions to the classification system
What is the purpose of an alert traffic department according to the text?
To take an active role in classification
What is the definition of channel power according to the text?
The ability to alter channel members' behavior so that they take actions they would not have taken otherwise
Which type of power is most likely to produce resentment and conflict among channel members?
Coercive power
What is the potential downside of using reward power?
It can weaken over time as the intermediaries come to expect a reward
What is required for legitimate power to be effective?
The intermediaries must view the manufacturer as a legitimate leader
What can happen to a manufacturer's expert power over time?
It can weaken once the expertise is passed on to the intermediaries
Which type of power is based on the manufacturer being highly respected by the intermediaries?
Referent power
What is the primary purpose of logistics according to the text?
To manage the flow of information and resources to meet customer requirements
What role does logistics play in helping a firm focus on strategic opportunities?
All of the above
According to the Council of Logistics Management definition, what is the primary purpose of logistics?
To conform to customer requirements
What does the text say logistics does to help a firm focus on strategic opportunities?
All of the above
What does the text say is the role of logistics in terms of supply and demand?
Logistics helps to coordinate supply and demand in the creation of time and place utility
Test your knowledge on the challenging and important activity of logistics, which integrates suppliers with customers and functional entities across a company. Explore how firms can use resources to focus on strategic opportunities amidst growing competition in the marketplace.
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