Test bank For Supply Chain Management
Exam 2 (6th Edition by Bowersox)
Activity Based Costing (ABC) allocates costs to activities based on a fixed predetermined
measure (e.g., cases).
True or False
False
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A stockout always results in a back order.
True or False
False
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The drawback of centralized inventory is the long distance to customers, which typically extends
lead times and results in higher transportation costs.
True or False
True
Slotting is defined as the placement of product in a facility for the purpose of optimizing
materials-handling and space efficiency.
True or False
True
, The roles of the distribution center include _____.
Option 1: balancing supply and demand
Option 2: protecting against uncertainty and promoting transportation economies
Option 3: promoting transportation economies
Option 4: balancing supply and demand, protecting against uncertainty, and promoting
transportation economies
balancing supply and demand, protecting against uncertainty, and promoting transportation
economies
Motor carrier cost is highly variable.
True or False
True
Nonintegrated air carriers do not supply door-to-door service.
True or False
True
Software tools related to the movement of goods across the supply chain are lumped together in
a general category called transportation management systems (TMS).
True or False
True
A third-party logistics (3PL) firm is defined as a company that owns trucks and warehouses so
as to offer integrated services.
True or False
False
4PL providers not only provide a broader scope of services to their clients and customers, but
typically may be more strategically involved.
True or False
True
Supply chain managers who collaborate with others within their organization are often able to
achieve competitive advantage. Which group would supply chain managers likely collaborate
with for contracts?
Option 1: Legal
Option 2: Accounting
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