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Zanda Corporation’s CEO watched in amazement and frustration as workers handled and loaded individual products onto trucks. She felt handling the individual items was very cumbersome. She should investigate the possibility of: Containerization
Zanda Corp. can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop. Should Zanda do this? No, it will increase cost by $100
Suppose you are shipping 1,000 pounds of product to a customer location that is 500 miles away from you. The customer calls you and increases the order size to 10,000 pounds. Both options are likely to occur
You are shipping 200 diamonds to one customer located 2,000 miles away. The value of a diamond is $1,500. You can ship via air for $500 and the diamonds will arrive in two days, or you can ship via a specialty ground carrier for $250 and the diamonds will arrive in four days. You figure your inventory carrying cost is 25 percent. $160.96
Random Corp. offers logistics services such as storage, transportation, and information processing to its customers. Random is known in industry as a(n): Integrated service provider
Generally, the most expensive transportation mode (from among the following choices) is: Air
In determining the number of facility locations, the lowest total cost is typically: Not the lowest cost of either transportation or inventory
A company finds the following information about its customers and their locations. The center of gravity is: X* = 52.5; Y* = 57.5
Zanda Corp. made a decision to use a more expensive mode of transportation to deliver orders to customers. This decision was likely made after an examination of: Cost-to-service trade-offs
Richard’s Rollerskate Company relies on Simon’s Trucking to transport all of their products. Simon’s Trucking is the only shipping company for RRC, and all products are shipped in trucks that look like giant roller skates with Richard’s Rollerskate branding on the trucks. Richard’s Rollerskate is likely using which carrier type? Contract carrier
Jones Company has decided to limit deliveries to selected areas to specific days of the week to obtain transportation savings. This is an example of: Scheduled delivery consolidation
Which of the following best describes the concept of total landed cost? The sum of all product- and logistics-related costs
A major disadvantage of private warehousing is: It requires more investment than contract warehousing
Miller Corp. can make three individual deliveries to three different customers at a transportation cost of $600 each or can consolidate them into one shipment with a transportation cost of $1,200 and a stop-off charge of $100 per stop. Should Miller Corp. consolidate the shipments? Yes, it will save $300
The center-of gravity method of determining a facility location: Does not require that qualitative factors be considered in location decisions
One function of warehouses or distribution centers is “consolidation.” This means that the warehouse/distribution center is used to: Group small inbound loads into larger outbound loads
With respect to the following operating service characteristics of the modes of transportation, which combination is CORRECTLY specified? Speed: air is best; pipeline is worst
Jones Company learned that several other shippers in its hometown had customers located in the same markets that it serves. With this information, Jones should investigate the possibility of: Pooled delivery consolidation
A company has determined the ideal number of locations by looking at the trade-offs described the text. It decides to open more warehouse locations than this “ideal.” This decision would most likely result in ___________ and ___________. no service to customers and higher cost
With respect to the following operating service characteristics of the modes of transportation, which combination is INCORRECTLY specified? Capability: pipeline is best; water is worst
Zanda Corp. had established a production plant in Thailand. Recently it decided to close the plant and move production to Mexico. This decision was likely made after Zanda: Examined total landed cost
Bill’s glass store needs to ship an order of 10 chandeliers to a builder about 1,000 miles away. The chandeliers cost about $10,000 each, and Bill will be paid upon delivery. Bill plans to ship the order by truck at a cost of $1,000. $1,821.92
With respect to transportation regulation today in the United States: There is more safety/social regulation than ever before
A company decides to reduce its number of warehouse locations (logistically postpone). This decision would result in ___________ or ___________. Poorer service to customers or higher transportation cost
Suppose you were the logistics manager for Way-Off Manufacturing and Marketing, a manufacturer of mosquito repellant. Further suppose that Way-Off markets its products in the entire United States. Public
Zanda Corp. can make three individual deliveries to three different customers at a cost of $500 each or can consolidate them into one shipment with a cost of $1,300 and a stop-off charge of $100 per stop. Should Zanda do this? No, it will increase cost by $100
Zanda Corp. made a decision to use a more expensive mode of transportation to deliver orders to customers. This decision was likely made after an examination of Cost-to-service trade-offs