1.	True or False Good purchasing strategy is based on standardized set of procedures for dealing with every supplier in a firm’s supply base.

2.	True or False Service reliability involves logistical quality. 

3.	True or False The work of logistics is all about transportation planning and execution. 

4.	True or False Procurement and manufacturing are an integral part of integrated logistics. 

6.	True or False The goal of cycle synchronization is achievement of planned time performance. 

7.	True or False Perfect orders are limited to firms committed to integrated supply chain management.

8.	True or False It is very possible that the supplier which offers the lowest purchase price does not have the lowest total cost of ownership for the buying firm.

9.	True or False The logistics value proposition is based solely on cost 

10.	True or False Performance Cycle variance is a prime determinate of safety stock 

11.	True or False A company has decided that it no longer needs to extensively count and inspect the products it buys from a particular supplier. This suggests that the buying company has is in the volume consolidation stage of developing procurement strategy.

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Multiple Choice

1.	In procurement, Total Cost of Ownership includes all of the following except:
A. field failures of purchased items
B. consideration of the impact of supplier quantity discounts
C. cost of order placement
D. In fact, total cost of ownership includes all of the above. 

2.	Collaboration is the act of:
A – Sharing secret information
B – Working with competitors
C – Integrating a supply chain
D – Legal in selected supply chain arrangements

3.	What is dwell time:
A – A key component of system design
B – The ratio of asset idle time to total time required to complete a mission
C – The total time inventory is waiting to be processed.
D – A key concept in manufacturing efficiency

4.	The work of logistics involves:
A – Order processing, inventory, and manufacturing
B – Inventory, transportation, manufacturing and procurement
C – Manufacturing, customer accommodation, and purchasing
D – Transportation, inventory, order processing, warehousing, and facility 
network design

5.	What is the primary reason that time to market has decreased over the past two decades:
A – Improvement in Federal Highways
B – Better Sea Ports
C – Development of Double Stack Containers
D – Information Technology

6.	A unique feature of integrated logistics is:
A – The newness of the concept
B – It is fundamental similar to military operations
C – Complexity and scope of operations
D – The fact that it employees many people.

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7.	Generally speaking, procurement can have a greater impact on the net income of a company than most other departments. This is due to the fact that:
A. manufacturing relies on purchasing to identify high quality suppliers
B. suppliers want to reduce their prices to their customers
C. marketers don’t care about net income
D. purchased materials and supplies frequently represent the largest costs in a company

8.	A logistics performance cycle is:
A – A format for improved measurement of cost and service.
B – The basic unit of supply chain design and operational control
C – Is an important form of transportation measurement
D – Is typically echeloned	

9.	A Supply Chain is best described by which of the following:
A – A group of cooperative carriers
B – A group of collaborative companies
C – A formal association of competitive companies
D – Two firms who create a strategic alliance

10.	Service reliability is best described as:
A – The measure of availability that is most critical in system design
B – Deals with speed and consistency of order cycle performance.
C – The quality dimension of logistics performance
D – The key attribute of transportation integration

11.	Basic logistics service is a concept that:
A – Describes the level of service provided all established customers
B – Is involved in designing a network
C – Only involves availability
D – None of the above