Logistics Selection Considerations

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What factors should be considered when selecting mode of shipment, carrier, and routing?

Reliability and service quality, available services, and handling of claims (correct)

Type of item being shipped and possibility of damage

Carrier financial situation and handling of claims

Required delivery time and cost

In the context of logistics services, what does a third party logistics (3PL) services provider do?

Handles physical movement of goods, but does not perform administrative tasks

Handles only administrative tasks such as auditing and billing

Is a separate entity that provides management of inbound and outbound goods (correct)

Is a separate company from the buyer’s and supplier's organizations

Who are the parties involved in the logistics services according to the text?

The buyer’s organization and supplier's organization

Only the buying organization

The supplier's organization and logistics services provider

The buyer’s organization, supplier's organization, and logistics services provider (correct)

What range of services are offered by logistics services providers?

Physical movement, warehousing, and break-bulking to billing and auditing Signup and view all the answers

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 Signup and view all the answers

Why is it important to consider the carrier financial situation when selecting a mode of shipment?

To evaluate the reliability of the carrier Signup and view all the answers

What motivates the supplier to be efficient in a buyer-seller agreement?

Sharing cost overruns and underruns with the buyer Signup and view all the answers

When might identical prices received from various sources be suspect?

When there is evidence of communication between sellers or buyers regarding prices Signup and view all the answers

Why might receiving identical bids from various sources indicate collusion?

Because there is evidence of communication between sellers or buyers regarding prices Signup and view all the answers

When do deviations from uniform prices become an industrywide concern?

When there is artificial standardization of the product Signup and view all the answers

What do items fixed or variable by the job or by time period get called as?

Flexible pricing products Signup and view all the answers

What should always make the buyer suspicious when receiving identical prices from various sources?

The specification being complex or detailed Signup and view all the answers

What is required of public purchasers when awarding contracts to bidders?

Selecting a bidder that is fully capable and willing to perform the work Signup and view all the answers

What distinguishes a responsible bidder from a responsive bidder?

A responsible bidder is fully capable and willing to perform the work Signup and view all the answers

What does activity-based costing attempt to correct in product costing?

Turning indirect costs into direct by tracking cost drivers Signup and view all the answers

What is the primary focus of activity-based costing?

Properly assigning costs based on cost drivers Signup and view all the answers

How does activity-based costing differ from traditional costing methods?

It turns indirect costs into direct costs based on cost drivers Signup and view all the answers

In contract awarding, what role do minority-owned sub-contractors play?

They are irrelevant to the contract awarding process Signup and view all the answers

What is a common risk avoidance strategy that involves taking an offsetting position in a related security?

Requiring bid or performance bonds Signup and view all the answers

Why does a buyer specify that supplier references should be of similar size and objectives?

To increase the chance of getting useful information Signup and view all the answers

What is the primary focus of sustainability?

Achieving economic prosperity for the company and shareholders Signup and view all the answers

Why are supplier references from similar size and objectives considered more useful?

The issues and challenges will likely be similar Signup and view all the answers

Which of the following is NOT a risk avoidance strategy mentioned in the text?

Using supplier references from different industries Signup and view all the answers

What does hedging involve as a risk avoidance strategy?

Taking an offsetting position in a related security Signup and view all the answers

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 Signup and view all the answers

What category does attempting to move in a buyer-supplier relationship fall under according to the text?

Win-lose Signup and view all the answers

In a strong relationship, what are satisfied parties more likely to do to resolve problems?

Work together to resolve problems Signup and view all the answers

What do suppliers who anticipate operational and strategic needs of purchasers and exceed them called in the text?

Exceptional Signup and view all the answers

If a buyer perceives a relationship as desirable but problematic, what action are they most likely to take?

Share information for mutual solutions Signup and view all the answers

What effect can attempts to move in a relationship have on its stability?

Weaken the relationship Signup and view all the answers