GSC 3600 EXAM 2 2025 QUESTIONS AND
ANSWERS
Firms do not compete only against global competitors, but against what? - ANS Their
competitor's supply chains
The analyst turned on his banker's lamp, adjusted his eye shade, and slowly pulled a legal pad
from his desk. His weathered hands punched the buttons on his desk calculator deliberately as
he divided earnings by total assets in order to perform what calculation? - ANS Return on
Assets
Return on Assets - ANS Earnings/Total Assets
A sourcing strategy in which two suppliers are used for the same purchased product or service
is: - ANS Dual Sourcing
The phenomenon that a dollar in cost savings increases pretax profits by a dollar, while pretax
profit margin is known as the: - ANS Profit leverage effect
Profit margin is the ratio of ___ to ___. - ANS Earnings to Sales
When compared with single sourcing, multiple sourcing has the advantage of what? -
ANS More control over vendor
Why is single sourcing is a better choice than multiple sourcing? - ANS Better customer
service
1 @COPYRIGHT THEBRIGHT 2025/2026
, A recent survey of executives at Global 1000 companies uncovered what single biggest threat? -
ANS The fear of a supply chain distribution
A description method used when a product or service is proprietary or when there is a
perceived advantage to using a particular supplier's product or services is - ANS Description
by brand
The transportation mode with the highest dollar value of freight in the United States is -
ANS Highway
The mode of transportation that is highly cost effective for bulky items but has relatively poor
delivery reliability and speed and the lowest number of convenient locations is: - ANS Water
The most detailed level of a logistics information system is the: - ANS Execution system
When cargo is loaded and unloaded only once it is known as - ANS Direct truck shipment
Which of these statements about inventory management is BEST? - ANS A system using
water and rail transportation tends to have higher levels of inventory
Which of these is not a logistics activity? - ANS inspection
Example of consolidation warehouse - ANS A single manufacturer takes output from several
of it's manufacturing plants and combines them into one shipment to a major customer
hub-and-spoke system - ANS Warehouses that are purely sorting facilities
2 @COPYRIGHT THEBRIGHT 2025/2026
ANSWERS
Firms do not compete only against global competitors, but against what? - ANS Their
competitor's supply chains
The analyst turned on his banker's lamp, adjusted his eye shade, and slowly pulled a legal pad
from his desk. His weathered hands punched the buttons on his desk calculator deliberately as
he divided earnings by total assets in order to perform what calculation? - ANS Return on
Assets
Return on Assets - ANS Earnings/Total Assets
A sourcing strategy in which two suppliers are used for the same purchased product or service
is: - ANS Dual Sourcing
The phenomenon that a dollar in cost savings increases pretax profits by a dollar, while pretax
profit margin is known as the: - ANS Profit leverage effect
Profit margin is the ratio of ___ to ___. - ANS Earnings to Sales
When compared with single sourcing, multiple sourcing has the advantage of what? -
ANS More control over vendor
Why is single sourcing is a better choice than multiple sourcing? - ANS Better customer
service
1 @COPYRIGHT THEBRIGHT 2025/2026
, A recent survey of executives at Global 1000 companies uncovered what single biggest threat? -
ANS The fear of a supply chain distribution
A description method used when a product or service is proprietary or when there is a
perceived advantage to using a particular supplier's product or services is - ANS Description
by brand
The transportation mode with the highest dollar value of freight in the United States is -
ANS Highway
The mode of transportation that is highly cost effective for bulky items but has relatively poor
delivery reliability and speed and the lowest number of convenient locations is: - ANS Water
The most detailed level of a logistics information system is the: - ANS Execution system
When cargo is loaded and unloaded only once it is known as - ANS Direct truck shipment
Which of these statements about inventory management is BEST? - ANS A system using
water and rail transportation tends to have higher levels of inventory
Which of these is not a logistics activity? - ANS inspection
Example of consolidation warehouse - ANS A single manufacturer takes output from several
of it's manufacturing plants and combines them into one shipment to a major customer
hub-and-spoke system - ANS Warehouses that are purely sorting facilities
2 @COPYRIGHT THEBRIGHT 2025/2026
