1. The globalization of markets is a recent phenomenon. 
a. True
*b. False

2. Early logisticians were international traders, and, although they used different techniques and means of transportation, they were concerned with the same issues that present-day logisticians are concerned about. 
*a. True
b. False

3. The modern term logistics is based upon a French word meaning military train. 
a. True
*b. False

4. The single most important development in international ocean shipping was the creation of containers. 
*a. True
b. False

5. The person responsible for the creation of containers in 1956 was named Malcom McLean. 
*a. True
b. False

6. The cost of air cargo shipments decreased after the deregulation of the 1980s. 
*a. True
b. False

7. Inventory reduction was a major goal of companies in the 1980s; this change was due to the increasing costs of oil and of products manufactured with oil. 
a. True
*b. False

8. Time-definite deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable. 
a. True
*b. False

9. MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their inventory levels. 
*a. True
b. False

10. MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the time that goods spend in transit). 
a. True
*b. False

11. Customer service became the primary focus of logistics in the 2000s. 
*a. True
b. False

12. Logistics is often defined as the activities that deal with the physical aspects of the movement of goods. 
*a. True
b. False

13. Battaglia sees logistics as the merger of materials management and physical distribution, and supply chain management as the merger of logistics with marketing, sales, information technology, and, most importantly, strategic planning. 
*a. True
b. False

14. Supply chain management is now considered to include not only the management of all of the activities that are part of logistics, but also the management of the relationships of a company with its suppliers and customers. 
*a. True
b. False

15. International logistics includes activities that are not part of domestic logistics. 
*a. True
b. False

16. According to the author, supply chain management includes both domestic and international logistics activities; there is no practical way of distinguishing between domestic supply chain management and international supply chain management. 
*a. True
b. False

17. Transportation decisions are more complicated in international logistics than they are in domestic logistics. 
*a. True
b. False

18. Insurance issues in international logistics are thankfully similar in complexity to insurance issues in domestic logistics. 
a. True
*b. False

19. Logistics costs have generally steadily declined over the past 50 years, when expressed as a percentage of the GDP of the United States. 
*a. True
b. False

20. Logistics costs (transportation and inventory costs) represent about 15 percent of the United States gross domestic product (GPD). 
a. True
*b. False

21. International logistics costs (transportation and inventory costs) represent about 15 percent of the total word-wide volume of trade. 
*a. True
b. False

22. North American firms are lagging their European counterparts in the implementation of green practices in manufacturing and other supply chain activities. 
*a. True
b. False

23. Reverse logistics deals with the activities involved in the return of products to the manufacturer, including the return of used packaging. 
*a. True
b. False

24. The country of Germany has implemented a secondary refuse collection system, specifically targeted at packaging materials, that is funded entirely by industry. 
*a. True
b. False

25. The city of Curitiba, in Brazil, solved two problems at once; its recycling efforts have reduced pollution and landfill usage, while employing very-low-income residents.  
*a. True
b. False


1. Which one was NOT one of the characteristics of the early days of logistics?
~ All of these options are mentioned, but customer satisfaction is mentioned as characteristic of the modern concept of logistics. 
@ All of these options are mentioned, but customer satisfaction is mentioned as characteristic of the modern concept of logistics. 
a. an emphasis on making sure that the goods arrived in good condition
b. an emphasis on low-cost transportation
c. long transit times
*d. an emphasis on customer satisfaction

2. Another name for sea-going containers is
~ Boxes are sea-going containers. 
@ Boxes are sea-going containers. 
*a. boxes. 
b. cans. 
c. tubs. 
d. tins. 
e. crates. 

3. Who was the person who popularized the idea of sea-going containers that could be loaded directly onto a ship, a truck, or a railroad car?
~ Malcom McLean, then president of McLean Trucking, created the first container in 1956. 
@ Malcom McLean, then president of McLean Trucking, created the first container in 1956. 
a. Peter Maersk
*b. Malcom McLean
c. Joseph Battaglia
d. Hapag Lloyd
e. Robert McNamara

4. In the 1980s, companies started to manage their inventories much more closely than they had in the 1960s and 1970s. This was due to an increase in
~ Interest rates increased to unprecedented levels in 1980s. The prime rate was as high as 21. 5 percent in 1980 and above 20 percent for most of 1980 and 1981. 
@ Interest rates increased to unprecedented levels in 1980s. The prime rate was as high as 21. 5 percent in 1980 and above 20 percent for most of 1980 and 1981. 
*a. interest rates. 
b. the value of inventories in general. 
c. the value of the goods held in inventory. 
d. the creation of just-in-time inventory management systems. 
e. the implementation of quality control. 

5. Under JIT, companies shipping to large manufacturers and retail chains are penalized financially (they do not receive the full invoice amount) if they
~ Just-in-time deliveries have to be made at specific times, and suppliers not delivering within these time windows are penalized. 
@ Just-in-time deliveries have to be made at specific times, and suppliers not delivering within these time windows are penalized. 
a. ship the correct goods. 
b. ship the goods in the right quantity. 
c. ship the entire order at once. 
*d. deliver the goods on a different day or time promised. 
e. ship goods of acceptable quality

6. DRP (Distribution Requirements Planning) is a system that allows manufacturers, wholesalers, and retailers of consumer products to manage their inventory just-in-time: DPR works as a
~ MRP, MRP II, and DRP are all considered to be pull systems, in which the sale to a final user/ consumer is the event triggering the replenishment of inventories. 
@ MRP, MRP II, and DRP are all considered to be pull systems, in which the sale to a final user/ consumer is the event triggering the replenishment of inventories. 
a. draw system. 
b. push system. 
c. elastic system. 
*d. pull system. 
e. insert system. 

7. A software package that allows a company to ensure that it is in compliance with international rules, to monitor the location of its goods, and to optimize its shipping decisions, is generically    called a:
~ GTM is the newest step in the evolution of logistics. 
@ GTM is the newest step in the evolution of logistics. 
*a. Global Trade Management
b. International Logistics Resources Planning
c. Global Logistics Planning
d. International Trade Resources Planning
e. International Supply Chain Planning

8. Which of the following is an emerging element of international logistics, according to the author, although it is fully part of domestic logistics, according to the CSCMP?
~ The definition of the CSCMP includes specifically the management of reverse flows of goods (reverse logistics), and the definition of David does not mention it. The others (flow, storage, and related information) are present in both definitions. Reverse logistics is the object of a separate section, mostly domestic in nature. 
@ The definition of the CSCMP includes specifically the management of reverse flows of goods (reverse logistics), and the definition of David does not mention it. The others (flow, storage, and related information) are present in both definitions. Reverse logistics is the object of a separate section, mostly domestic in nature. 
*a. reverse logistics. 
b. the management of transportation. 
c. the management of inventories. 
d. the management of paperwork

9. The definition of international supply chain management is the same as the definition of supply chain management, except that it makes explicit the fact that SCM
~ All options are essentially identical: all deal with international concepts. 
@ All options are essentially identical: all deal with international concepts. 
a. is global. 
b. is international. 
c. includes international activities. 
d. is worldwide. 
*e. all these answers refer to roughly the same idea. 

10. Which of the following is NOT among the challenges of international logistics?
~ All others are specifically mentioned, but superstructure is not, and is a term referring to, among others, the part of a ship located above the main deck. 
@ All others are specifically mentioned, but superstructure is not, and is a term referring to, among others, the part of a ship located above the main deck. 
a. infrastructure differences
b. insurance complexities
*c. superstructure differences
d. paperwork requirements
e. customs clearance

11. The individuals who are handling goods in the ports, loading and unloading merchandise, are called
~ Only stevedores operate in trade. Marksmen are another profession, and the others are made up. 
@ Only stevedores operate in trade. Marksmen are another profession, and the others are made up. 
*a. stevedores. 
b. marksmen. 
c. mercadores. 
d. julinators. 
e. porters. 

12. The increased usage of air transport for international trade has had which consequence?
~ As customers expectations of speedy delivery increased, delivery speed became one of the main criteria in selecting a supplier. All others are exactly the opposite of what happens. 
@ As customers expectations of speedy delivery increased, delivery speed became one of the main criteria in selecting a supplier. All others are exactly the opposite of what happens. 
a. decreased shipping costs. 
b. increased insurance claims. 
*c. increased probability of a company being selected as a supplier, by reducing delivery times. 
d. increased shipping delays. 
e. decreased paperwork requirements. 

13. Which of the following group of countries is more likely to lag in terms of green practices, according to the IBM study mentioned in the text?
~ The IBM study and Figure 2-3 clearly show that North America lags is all areas of green practices. 
@ The IBM study and Figure 2-3 clearly show that North America lags is all areas of green practices. 
*a. North America. 
b. Western Europe. 
c. Asia Pacific. 
d. All are at about the same level. 
e. Eastern Europe. 

14. A German corporation is involved in the Grne Punkt program and recycles its final consumer packaging after the consumer has used the product. How are these types of activities called?
~ Reverse logistics involves the handling of goods after they have been sold to the customer and which are then returned to the manufacturer. 
@ Reverse logistics involves the handling of goods after they have been sold to the customer and which are then returned to the manufacturer. 
a. cycling logistics. 
*b. reverse logistics. 
c. recycling logistics. 
d. return logistics. 
e. inverse logistics. 

15. Companies increasingly are designing products so that they can gain a competitive advantage through reverse logistics. Returned products are
~ All of these alternatives are possible under reverse logistics practices, as shown in Figure 2-8. 
@ All of these alternatives are possible under reverse logistics practices, as shown in Figure 2-8. 
a. refurbished for resale in secondary markets. 
b. reused (packaging or containers). 
c. remanufactured (restored to their original performance standards). 
d. discarded. 
*e. all options mentioned in these answers are possible. 

 

Type: F
1. The most significant change in the past fifty years in ocean transportation was the creation of ____________________ by Malcom McLean. 
a. containers
b. boxes
c. container
d. shipping containers

Type: F
2. The people whose responsibilities include loading and unloading ships are called ____________________. 
a. longshoremen
b. stevedores

Type: F
3. The change in government policies that allowed FedEx and other air carriers to purchase larger aircrafts and compete with other airlines was called ____________________. 
a. deregulation

Type: F
4. Logisticians concerns have shifted from an emphasis on slow, reliable deliveries, to one on speed and ____________________. 
a. consumer satisfaction
b. customer satisfaction

Type: F
5. Manufacturers have adopted MRP systems so that they can reduce their inventory and manufacture ____________________. 
a. just-in-time
b. JIT
c. just in time

Type: F
6. Logistics management encompasses ____________________ activities than does supply chain management. 
a. fewer
b. less

Type: F
7. Most firms either purchase goods from abroad or sell goods abroad. If they do not, their suppliers and customers do. This situation illustrates that supply chain management is inherently ____________________. 
a. global
b. worldwide
c. international

Type: F
8. International logistics involves activities that are more ____________________ than the activities of domestic logistics. 
a. complex
b. difficult

Type: F
9. The fact that there are different languages, cultures, currencies, and laws in foreign countries illustrates the idea that the international logistician operates in a more challenging ____________________. 
a. environment
b. context

Type: F
10. The fact that there is a greater number of intermediaries in international logistics (banks, insurance companies, Customs, and so on) also makes that there is an abundance of ____________________. 
a. paperwork
b. paper requirements
c. paper requirement
d. redtape
e. red tape
f. processes

Type: F
11. The costs of domestic logistics (transportation and inventory) represent approximately ____________________ of the GDP of the United States. 
a. 10 percent
b. 10%
c. 10 %

Type: F
12. The costs of international logistics are higher than the costs of domestic logistics. They are estimated as ____________________ of the total value of international trade. 
a. 15 percent
b. 15%
c. 15 %

Type: F
13. Reverse logistics activities are similar to the traditional activities of logistics, but occur after the product has been ____________________. 
a. sold
b. consumed
c. used
d. purchased

Type: F
14. Caterpillar operates 14 plants worldwide where it disassembles used heavy equipment received from its customers, with the goal of ____________________ the machines. 
a. remanufacturing

Type: F
15. Some companies are implementing a reverse logistics program in which they design products so that they can be used or remanufactured again and again. Such a program is called a cradle to ____________________ design. 
a. cradle