lscm 3960 Exam 2 Newest 2025/2026
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Full collaboration is the dynamic combination of
a. both vertical and horizontal collaboration.
b. buyers, sellers, retailers, 3PLs, and appropriate government agencies.
c. buyers, sellers, retailers, and 3PLs
d. buyers and sellers only - Answer- a.
both vertical and horizontal collaboration.
T/F: The manufacturer must lead the channel design process regardless of the relative
market power and financial strength of the members of the supply chain. - Answer-
False
INCREASING the number of warehouses will __________ the warehousing and
inventory costs, but may __________ transportation costs. - Answer- Increase,
decrease
When a traffic manager reduces the number of carriers used, market power is
decreased. - Answer- false
The "value-of-service" pricing approach establishes an upper limit of transportation
prices or rates. - Answer- True
Approximately two-thirds of 3PL customers think their providers supply
a. strategic or integrative services.
b. a firm that can supply a competency that is not core to the firm.
c. trucking and warehouse services.
d. tactical or operational services. - Answer- d. tactical or operational services.
The least-frequently used IT-based services by customers of 3PLs are:
a. global trade management and transport sourcing
b. transportation management (execution)
c. strategic and customer-related
d. warehouse/distribution management - Answer- c. strategic and customer-related
,Horizontal collaboration refers to a relationship that is ___________ and/or
____________.
a. collaboration with horizontal and/or vertical competitors
b. 3PLs to 3PLs and/or service provider to service provider
c. buyer to buyer and/or seller to seller
d. flat across the chain and/or involving partners equal in size - Answer- c. buyer to
buyer and/or seller to seller
Many organizations are working more closely with
a. customers
b. customers, suppliers, and various types of logistics suppliers
c. third-party logistics firms
d. customers and suppliers - Answer- b. customers, suppliers, and various types of
logistics suppliers
Whether the relationship may or may not be with a provider of logistics services, today's
supply chain relationships are MOST EFFECTIVE when collaboration occurs among the
____________ who are involved.
a. suppliers
b. customers
c. participants
d. third party logistics providers - Answer- c. participants
A third-party logistics firm may be defined as
a. an external supplier that performs or manages all or part of a
company's logistics functions.
b. a firm that owns trucks and warehouses and
provides computer support.
c. a firm that owns trucks and warehouses.
d. an outsource service. - Answer- a. an external supplier that performs or manages all
or part of a
company's logistics functions.
Vertical collaboration refers to
a. collaboration with competitors.
b. collaboration among buyers and sellers in the supply chain.
c. collaboration that moves up the supply chain.
d. collaboration among carriers and shippers. - Answer- b. collaboration among buyers
and sellers in the supply chain.
, While available evidence supports the fact that the president or CEO and the finance
executive are often involved with the identification of the need for logistic services,
a. executives from other areas in the firms are also aware of such needs but to a lesser
degree.
b. off shore sourcing will point to greater need.
c. customers are demanding a change.
d. a 4PL will suggest greater collaboration. - Answer- a. executives from other areas in
the firms are also aware of such needs but to a lesser degree.
Inventory is an ASSET on the balance sheet and a(n) __________ on the income
statement.
a. variable expense
b. statement
c. liability
d. footnote - Answer- a. variable expense
If demand and lead time are constant, only___________ is necessary.
1. associated stock
2. seasonal stock
3. speculative stock
4. cycle stock - Answer- 4. cycle stock
Pareto Analysis may be used to classify parts, customers, or activities. When
determining the Pareto segments to classify parts, you should:
1. Identify 80% of the total value of all the parts as these will represent exactly 20% of
the part numbers.
2. Identify 20% of the part numbers as these will represent exactly 80% of the inventory
value.
3. Identify 20% of the inventory value as this will represent exactly 80% of the part
numbers.
4. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is
subjective; however the general 80-20 relationship still holds.
5. Identify 80% of the number of parts as these will represent exactly 20% of the
inventory value. - Answer- 4. There will rarely be a clean break at the 80% (or 20%)
point so your cut-off is subjective; however the general 80-20 relationship still holds.
The objective of inventory management is to:
1. Eliminate all overage inventory.
2. Increase corporate profitability.
3. Stockpile all types of inventory.
4. Minimize all types of inventory.
5. Maximize all types of inventory. - Answer- 2. Increase corporate profitability.
All of the following are reasons for holding inventory EXCEPT:
1. Inventories enable specialization in manufacturing.
Actual Exam Complete Questions And
Correct Detailed Answers (Verified
Answers) |Already Graded A+||Brand
New Version!!
Full collaboration is the dynamic combination of
a. both vertical and horizontal collaboration.
b. buyers, sellers, retailers, 3PLs, and appropriate government agencies.
c. buyers, sellers, retailers, and 3PLs
d. buyers and sellers only - Answer- a.
both vertical and horizontal collaboration.
T/F: The manufacturer must lead the channel design process regardless of the relative
market power and financial strength of the members of the supply chain. - Answer-
False
INCREASING the number of warehouses will __________ the warehousing and
inventory costs, but may __________ transportation costs. - Answer- Increase,
decrease
When a traffic manager reduces the number of carriers used, market power is
decreased. - Answer- false
The "value-of-service" pricing approach establishes an upper limit of transportation
prices or rates. - Answer- True
Approximately two-thirds of 3PL customers think their providers supply
a. strategic or integrative services.
b. a firm that can supply a competency that is not core to the firm.
c. trucking and warehouse services.
d. tactical or operational services. - Answer- d. tactical or operational services.
The least-frequently used IT-based services by customers of 3PLs are:
a. global trade management and transport sourcing
b. transportation management (execution)
c. strategic and customer-related
d. warehouse/distribution management - Answer- c. strategic and customer-related
,Horizontal collaboration refers to a relationship that is ___________ and/or
____________.
a. collaboration with horizontal and/or vertical competitors
b. 3PLs to 3PLs and/or service provider to service provider
c. buyer to buyer and/or seller to seller
d. flat across the chain and/or involving partners equal in size - Answer- c. buyer to
buyer and/or seller to seller
Many organizations are working more closely with
a. customers
b. customers, suppliers, and various types of logistics suppliers
c. third-party logistics firms
d. customers and suppliers - Answer- b. customers, suppliers, and various types of
logistics suppliers
Whether the relationship may or may not be with a provider of logistics services, today's
supply chain relationships are MOST EFFECTIVE when collaboration occurs among the
____________ who are involved.
a. suppliers
b. customers
c. participants
d. third party logistics providers - Answer- c. participants
A third-party logistics firm may be defined as
a. an external supplier that performs or manages all or part of a
company's logistics functions.
b. a firm that owns trucks and warehouses and
provides computer support.
c. a firm that owns trucks and warehouses.
d. an outsource service. - Answer- a. an external supplier that performs or manages all
or part of a
company's logistics functions.
Vertical collaboration refers to
a. collaboration with competitors.
b. collaboration among buyers and sellers in the supply chain.
c. collaboration that moves up the supply chain.
d. collaboration among carriers and shippers. - Answer- b. collaboration among buyers
and sellers in the supply chain.
, While available evidence supports the fact that the president or CEO and the finance
executive are often involved with the identification of the need for logistic services,
a. executives from other areas in the firms are also aware of such needs but to a lesser
degree.
b. off shore sourcing will point to greater need.
c. customers are demanding a change.
d. a 4PL will suggest greater collaboration. - Answer- a. executives from other areas in
the firms are also aware of such needs but to a lesser degree.
Inventory is an ASSET on the balance sheet and a(n) __________ on the income
statement.
a. variable expense
b. statement
c. liability
d. footnote - Answer- a. variable expense
If demand and lead time are constant, only___________ is necessary.
1. associated stock
2. seasonal stock
3. speculative stock
4. cycle stock - Answer- 4. cycle stock
Pareto Analysis may be used to classify parts, customers, or activities. When
determining the Pareto segments to classify parts, you should:
1. Identify 80% of the total value of all the parts as these will represent exactly 20% of
the part numbers.
2. Identify 20% of the part numbers as these will represent exactly 80% of the inventory
value.
3. Identify 20% of the inventory value as this will represent exactly 80% of the part
numbers.
4. There will rarely be a clean break at the 80% (or 20%) point so your cut-off is
subjective; however the general 80-20 relationship still holds.
5. Identify 80% of the number of parts as these will represent exactly 20% of the
inventory value. - Answer- 4. There will rarely be a clean break at the 80% (or 20%)
point so your cut-off is subjective; however the general 80-20 relationship still holds.
The objective of inventory management is to:
1. Eliminate all overage inventory.
2. Increase corporate profitability.
3. Stockpile all types of inventory.
4. Minimize all types of inventory.
5. Maximize all types of inventory. - Answer- 2. Increase corporate profitability.
All of the following are reasons for holding inventory EXCEPT:
1. Inventories enable specialization in manufacturing.
