Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Which
of the following is NOT true?
a. | Logistics is about transport, physical distribution is about
materials handling. | c. | Logistics takes
a holistic view, physical distribution is concerned with tactical matters. | b. | Logistics is
about moving goods smoothly through the supply chain, physical distribution is about
transportation. | | | | |
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2.
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Which
of the following is NOT a controllable element in logistics?
a. | Customer
service. | c. | Legislation
| b. | Warehousing. | | | | |
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3.
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What
is the main problem in determining total distribution costs?
a. | Unpredictability
of the environment. | c. | Service levels
are difficult to determine. | b. | Different firms are involved in physical distribution.
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4.
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What
is meant by service level?
a. | The reliability of the service.
| c. | The proportion
of service relative to physical product. | b. | The cost of the service. | | | | |
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5.
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Which
of the following is NOT a reason for effective supply-chain management?
a. | It reduces
costs. | c. | It improves
relationships between firms. | b. | It improves asset utilization. | | | | |
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6.
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What
is meant by the commitment-trust theory?
a. | Networks characterized by commitment and trust engender
co-operation. | c. | Commitment by
suppliers and trust on the part of buyers means that the relationship is
well-established. | b. | Commitment leads to trust, which improves the
relationship. | | | | |
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7.
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What
is a letter of credit?
a. | A letter which agrees to provide credit for the
purchaser. | c. | A list of the
particulars of the shipment and the payment to be made. | b. | A letter issued
by the importer’s bank, guaranteeing payment. | | | | |
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8.
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Which
of the following statements is true?
a. | Airfreight is always cheaper than sea
freight. | c. | Air freight is
always more expensive than sea freight. | b. | Air freight is always faster than sea freight.
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9.
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Which
of the following is NOT true?
a. | A bill of lading is proof of
ownership.
| c. | A bill of lading
is a document of possessory title. | b. | A bill of lading is a promissory note.
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10.
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What
is a tramp steamer?
a. | A ship which does not follow a set route.
| c. | A ship which has
a different national registry from the nationality of its owners. | b. | A ship which is
old and poorly-maintained. | | | | |
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