The practice of carriers charging all of their customers more during the peak harvest season is a type of pricing known as:
A. differential rates.
B. incremental rates.
C. distributive rates.
D. commodity rates.
In warehouse operations, picking process occurs when:
A. customer orders for product are ready to be shipped or to replenish a forward case or unit pick area.
B. immediately after a product is stored in a designated location in order to be shipped to the customer.
C. a Kanban signal arrives to replenish material in the workshop.
D. when a customer order needs to be replaced by a new product die to engineering changes.
A company desires to improve its cash flow situation by postponing its customs duties payment until the last possible point in the supply chain.
The company should consider using which type of warehouse?
A. Bonded
B. Contract
C. Third-party
D. Government
Which of the following costs represents an example of a fixed cost in the motor carrier industry?
A. Vehicle registration
B. Fuel
C. Maintenance
D. Terminals
An international organization has a pricing strategy that allows it to sell its product at different prices depending on the country where the product is sold.
Which of the following unintended consequences is a result of this strategy?
A. Counterfeit products in the supply chain
B. Gray market products in the supply chain
C. Hostile takeover by a conglomerate
D. Decrease in profits due to variable revenues
A manager would like to insure marine cargo for a 12-month period. Which of the following policies would be best to provide coverage for all of the shipment during this period?
A. Open
B. Special cargo
C. All-risks
D. Warehouse to warehouse
Which of the following facility location techniques is equivalent to a break-even point?
A. Weighted-factor rating method
B. transportation problem model
C. Cost volume analysis
D. Center-of-gravity method
An oil and gas company needs to ship petrol 1,000 miles from the port on entry to an inland refinery. Which of the following modes of transportation provides the best long-term, cost-efficient solution?
A. Rail
B. Trucking
C. Pipeline
D. Barge
Which of the following types benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?
A. Performance benchmarking
B. Process benchmarking
C. Product benchmarking
D. Strategic benchmarking
In an effort to increase their customer service levels and reduce order cycle time, a company is considering adding two additional warehouses to their overall operations.
As a result, which of the following statements best reflects the cost impact of the additional warehouses?
A. Lower inventory costs and higher facility costs
B. Higher inventory costs and lower facility costs
C. Higher inventory costs and higher inbound transportation costs
D. Lower inventory costs and lower inbound transportation costs
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