LSCM 3960 CH 2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

LSCM 3960 CH 2 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 The utility created through the basic marketing activities is known as place utility. - Answers False Transportation is the physical movement or flow of goods. - Answers True During the 1990s and 2000s, logistics costs as a percentage of gross national product declined. - Answers True An aircraft manufacturer is a good example of an organization with a heavy inbound flow and a simple outbound flow. - Answers True Acme Battery distributes its batteries to warehouses, where they are stored until ordered by a retailer. The warehouses are located close by the retail markets served. This is the logistics channel approach to logistics. - Answers True In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement - Answers True The mathematical calculation of the point of equality between systems under analysis is used for short-run/static analysis. - Answers False To hold down distribution cost, the lowest cost carrier should always be used. - Answers False The inverse relationship that exists between the cost of lost sales and inventory costs is the inventory effect. - Answers True Ensuring the availability of the right product, in the right quantity, and the right condition, at the right place, at the right time, for the right customer at the right cost, is which definition of logistics? a. Seven Rs b. Council of Logistics Management c. Society of Logistic Engineers d. supply chain logistics - Answers a. Seven Rs Logistics is the process of anticipating customer needs and wants; acquiring the capital, materials, people, technologies, and information necessary to meet those needs and wants; optimizing the goods- or service-producing network to fulfill customer requests; and utilizing the network to fulfill customer requests in a timely manner. This is a a. definition from an inventory perspective. b. general definition. c. definition offered by the Society of Logistics Engineers. d. a definition provided by the Council of Logistics Management. - Answers b. general definition. 12. All four subdivisions of logistics have some common characteristics. Which of the below does not belong in the list: a. transportation b. marketing c. scheduling d. forecasting - Answers b. marketing The value that is added to goods through a manufacturing or assembly process is: a. form utility b. place utility c. time utility d. possession utility - Answers a. form utility 14. Which of the answers below is an example of the creation of form utility by a logistics activity? a. when lumber is cut and made into a chair b. when a firm's finance manager approves customer purchases on a credit basis c. when Dell combines components with software to produce a computer to a customer's specifications d. the breaking bulk and repackaging at a distribution center - Answers d. the breaking bulk and repackaging at a distribution cente The utility that is created by moving goods from production points to market points where demand exists is referred to as: a. form b. place c. time d. possession - Answers b. place Logistics creates which utility through production forecasting, production scheduling and inventory control? a. form utility b. quantity utility c. time utility d. possession utility - Answers b. quantity utility Time utility depends on a. when the carrier picks up the shipment. b. transportation companies delivering on time. c. proper forecasting. d. having the product available when the user wants it. - Answers b. transportation companies delivering on time. What is often the largest component of logistics costs? a. inventory costs b. transportation costs c. shipper-related costs d. administrative costs - Answers b. transportation costs Materials handling is concerned with a. inventory levels. b. breaking bulk. c. scheduling trade-offs. d. short-distance movement. - Answers d. short-distance movement. Marketers have begun to recognize the strategic value of place in the marketing mix, as well as the benefits resulting from high-quality logistical services. As a result, which has been recognized as the interface activity between marketing and logistics? a. product b. promotion c. price d. customer service - Answers d. customer service It can be argued that ? is the second language of logistics and supply chain management. a. quality b. manufacturing c. finance d. sales - Answers c. finance What activity is described as the movement of goods into a warehouse, the placement of goods in a warehouse, and the movement of goods from storage to order picking areas and eventually to dock areas for transportation out of the warehouse? a. materials handling b. physical distribution c. business logistics d. order fulfillment - Answers a. materials handling A(n) _______ relationship exists between the cost of lost sales and inventory cost. a. reverse b. proportional c. inverse