Skip to content
Back to quiz
6. The Weighted Scoring technique for selecting a warehouse location ...
- assumes that quantity transported is fixed.
- assigns weights of importance to different factors to score each location, then ranks them.
- assumes that cost change is linear.
- determines location by minimising distribution costs.
7. Small lot sizes (frequent orders) :
- mean higher holding costs.
- mean higher ordering costs and lower holding costs.
- lead to higher average inventory level.
- lead to lower ordering costs.
8. Green logistics ...
- reduce usage of materials.
- all of these.
- reduce energy usage of logistics activities.
- aim to minimise ecological impact of logistics.
9. A disadvantage of outsourcing is ...
- freed up resources due to less investment.
- increased access to new tech.
- a risk of supply chain disruptions.
- economies of scale in supplier.
10. Which of these is not an advantage of outsourcing?
- Access to new/changing tech.
- Possible failures in quality and delivery.
- Freed up resources due to lower investment.
- Lower total costs.
11. Decisions crucial to supply base optimisation are :
- spend analysis, total number of suppliers, single vs multiple suppliers.
- warehouse vs distribution centre, total number of suppliers, spend analysis.
- spend analysis, total number of suppliers, demand monitoring.
- total number of suppliers, single vs multiple suppliers, warehouse vs distribution centre.
12. Issues to consider with warehouses include ...
- Owned by single firm vs variety of firms.
- all of these.
- Internal warehouses vs outside distributor.
- manufacturing strategy (make-to-stock vs make-to-order).
13. Risks of offshoring include ...
- improving capabilities in offshore regions.
- airfreight costs to overcome delivery or quality problems.
- less trade regulation overseas.
- lower costs overseas.
14. Advantages of outsourcing include ...
- providing better customer service.
- reduced overall costs (capital, taxes, tariff barriers etc).
- all of these.
- risk is spread and shared.
15. Cycle inventory is used to ...
- allow economic production and purchase.
- cover anticipated changes in demand/supply.
- provide for transit.
- protect against uncertainties.
16. Fluctuations in demand behaviour in the form of upstream oscillations is known as ...
- the Porter effect.
- the Doppler effect.
- the Forrester/bullwhip effect.
- the Smith phenomenon.
17. Too much offshoring may lead to ...
- neither of these.
- difficulty in balancing various technical, cost and performance objectives simultaneously.
- both of these.
- less internal staff capability.
18. Purposes of inventories include ...
- allowing economic production and purchase.
- covering anticipated changes in supply/demand.
- all of these.
- protection against uncertainties (demand, lead times, schedule changes etc).
19. Inventory turnover ...
- compares annual sales with amount of average inventory held throughout year.
- all of these.
- is used to measure a firm's performance in inventory management,
- shows that a higher turnover lowers the firm's inventory costs.
20. Independent demand ...
- is based on market demand, requires forecasting and is independent of other items.
- includes components of finished products.
- requires calculation instead of forecast.
- is where demand is a known function of independent demand items.