30 Questions
What factors should be considered when selecting mode of shipment, carrier, and routing?
Reliability and service quality, available services, and handling of claims
In the context of logistics services, what does a third party logistics (3PL) services provider do?
Is a separate entity that provides management of inbound and outbound goods
Who are the parties involved in the logistics services according to the text?
The buyer’s organization, supplier's organization, and logistics services provider
What range of services are offered by logistics services providers?
Physical movement, warehousing, and break-bulking to billing and auditing
What is a freight bill in the context of logistics?
A document submitted to recoup financial costs from shipment of loss or damage and the carrier’s invoice for services provided
Why is it important to consider the carrier financial situation when selecting a mode of shipment?
To evaluate the reliability of the carrier
What motivates the supplier to be efficient in a buyer-seller agreement?
Sharing cost overruns and underruns with the buyer
When might identical prices received from various sources be suspect?
When there is evidence of communication between sellers or buyers regarding prices
Why might receiving identical bids from various sources indicate collusion?
Because there is evidence of communication between sellers or buyers regarding prices
When do deviations from uniform prices become an industrywide concern?
When there is artificial standardization of the product
What do items fixed or variable by the job or by time period get called as?
Flexible pricing products
What should always make the buyer suspicious when receiving identical prices from various sources?
The specification being complex or detailed
What is required of public purchasers when awarding contracts to bidders?
Selecting a bidder that is fully capable and willing to perform the work
What distinguishes a responsible bidder from a responsive bidder?
A responsible bidder is fully capable and willing to perform the work
What does activity-based costing attempt to correct in product costing?
Turning indirect costs into direct by tracking cost drivers
What is the primary focus of activity-based costing?
Properly assigning costs based on cost drivers
How does activity-based costing differ from traditional costing methods?
It turns indirect costs into direct costs based on cost drivers
In contract awarding, what role do minority-owned sub-contractors play?
They are irrelevant to the contract awarding process
What is a common risk avoidance strategy that involves taking an offsetting position in a related security?
Requiring bid or performance bonds
Why does a buyer specify that supplier references should be of similar size and objectives?
To increase the chance of getting useful information
What is the primary focus of sustainability?
Achieving economic prosperity for the company and shareholders
Why are supplier references from similar size and objectives considered more useful?
The issues and challenges will likely be similar
Which of the following is NOT a risk avoidance strategy mentioned in the text?
Using supplier references from different industries
What does hedging involve as a risk avoidance strategy?
Taking an offsetting position in a related security
If a party is dissatisfied with a relationship, what type of tools are they more inclined to use according to the text?
Refusal to pay bills
What category does attempting to move in a buyer-supplier relationship fall under according to the text?
Win-lose
In a strong relationship, what are satisfied parties more likely to do to resolve problems?
Work together to resolve problems
What do suppliers who anticipate operational and strategic needs of purchasers and exceed them called in the text?
Exceptional
If a buyer perceives a relationship as desirable but problematic, what action are they most likely to take?
Share information for mutual solutions
What effect can attempts to move in a relationship have on its stability?
Weaken the relationship
Learn about the key factors to consider when selecting mode of shipment, carrier, and routing in logistics management. Explore the role of third party logistics (3PL) services providers in handling various tasks.
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