1. Logistics consist(s) of the following, EXCEPT:
a) Compensation and incentives
b) Storage and warehousing
c) Transportation and information processing
d) Inventories and distribution
2. Which of the following is true about the bullwhip effect?
a) Variability in demand increases from the factory stage downstream to the customer stage
b) This cycle is prevalent in just about every industry
c) Lead times between the stages of the supply chain tend to be very short
d) Information lags stemming from large lot sizes with infrequent orders may be a cause
3. Organizations that process natural or basic resources as raw materials or other essential inputs to obtain their outputs will locate near their resources if one of the following conditions holds:
a) High economies of scale exist for the product
b) The raw material can be shipped long distance before being processed
c) There is a large loss in size or weight during processing.
d) Both A and C
4. Purchasing tends to follow three practices; which of the following is NOT one of them?
a) They leverage their buying power
b) They work with and help suppliers reduce costs
c) They commit to a small number of dependable suppliers
d) All of the above are practices followed by purchasing in highly effective organizations.