LSCM 3960 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
Landed costs are independent of sales/FOB terms. T/F - Answers False
. An advantage of e-sourcing and e-procurement is that there is little risk involved. T/F - Answers
False
3. e-Sourcing and e-procurement are the same. (T/F) - Answers True
4. The mathematical calculation of the point of equality between systems under analysis is used for
short-run/static analysis. (T/F) - Answers False
5. It is predicted that social networks such as Facebook and Twitter will influence supply chains
because of their impact on customer demand and the speed of information transfer. (T/F) - Answers
True
6. Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated.
The net result was a less competitive environment. (T/F) - Answers False
7. To hold down distribution cost, the lowest cost carrier should always be used. (T/F) - Answers False
8. U.S. ports can play a role in global supply chains since over 50 percent of global trade passes
through them. (T/F) - Answers False
9. Operating globally has become easier to accomplish for even individuals and small companies,
because of the advances in information/communications technology. (T/F) - Answers True
10. When a firm makes a "make" decision when analyzing whether to "make or buy," they may still
have to purchase some types of inputs from outside suppliers. (T/F) - Answers True
11. Which e-commerce business model used in procurement and sourcing has a seller-operated
service that consists of a number of electronic catalogs from suppliers within a market? - Answers
Online Trading Community
12. In the Assess Supply Market step, the firm: - Answers c. identifies all possible suppliers that might
be able to satisfy the user's needs.
13. The concept that represents the sum of all costs associated with making and delivering products
to the point where they are needed is called: - Answers d. total landed cost.
14. This type of fulfillment model has the manufacturer delivering its products directly to the retailers'
stores.
a.
Outsourced
b.
Store-fulfillment
c.
Flow-through
d.
Integrated
e.
None of these answers - Answers e. None of these answers
15. The utility that is created by moving goods from production points to market points where
demand exists is referred to as _____ utility. - Answers b. place
16. As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will
_____ and variable costs will _____. - Answers a. Decrease; Decrease
17. Which is correct regarding tapering rates? - Answers a. The principle is based on the carrier's
ability to spread certain fixed shipment costs over a greater number of miles.
18. When a blanket rate structure is used, which factor is eliminated as a locational determinant? -
Answers b. Transportation rate
19. Which of the following is not part of the Supply Chain network? - Answers b. Stores
20. In the Item Procurement Importance Matrix, what describes high risk, low value? - Answers d.
Distinctives
Landed costs are independent of sales/FOB terms. T/F - Answers False
. An advantage of e-sourcing and e-procurement is that there is little risk involved. T/F - Answers
False
3. e-Sourcing and e-procurement are the same. (T/F) - Answers True
4. The mathematical calculation of the point of equality between systems under analysis is used for
short-run/static analysis. (T/F) - Answers False
5. It is predicted that social networks such as Facebook and Twitter will influence supply chains
because of their impact on customer demand and the speed of information transfer. (T/F) - Answers
True
6. Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated.
The net result was a less competitive environment. (T/F) - Answers False
7. To hold down distribution cost, the lowest cost carrier should always be used. (T/F) - Answers False
8. U.S. ports can play a role in global supply chains since over 50 percent of global trade passes
through them. (T/F) - Answers False
9. Operating globally has become easier to accomplish for even individuals and small companies,
because of the advances in information/communications technology. (T/F) - Answers True
10. When a firm makes a "make" decision when analyzing whether to "make or buy," they may still
have to purchase some types of inputs from outside suppliers. (T/F) - Answers True
11. Which e-commerce business model used in procurement and sourcing has a seller-operated
service that consists of a number of electronic catalogs from suppliers within a market? - Answers
Online Trading Community
12. In the Assess Supply Market step, the firm: - Answers c. identifies all possible suppliers that might
be able to satisfy the user's needs.
13. The concept that represents the sum of all costs associated with making and delivering products
to the point where they are needed is called: - Answers d. total landed cost.
14. This type of fulfillment model has the manufacturer delivering its products directly to the retailers'
stores.
a.
Outsourced
b.
Store-fulfillment
c.
Flow-through
d.
Integrated
e.
None of these answers - Answers e. None of these answers
15. The utility that is created by moving goods from production points to market points where
demand exists is referred to as _____ utility. - Answers b. place
16. As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will
_____ and variable costs will _____. - Answers a. Decrease; Decrease
17. Which is correct regarding tapering rates? - Answers a. The principle is based on the carrier's
ability to spread certain fixed shipment costs over a greater number of miles.
18. When a blanket rate structure is used, which factor is eliminated as a locational determinant? -
Answers b. Transportation rate
19. Which of the following is not part of the Supply Chain network? - Answers b. Stores
20. In the Item Procurement Importance Matrix, what describes high risk, low value? - Answers d.
Distinctives
