1. A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country. The company can be classified as what type of enterprise?
A) Globally integrated
B) Domestic
C) Multinational
D) Virtual
2. When doing international business, a company's total line-haul costs will vary with the:
A) weight shipped.
B) distance shipped.
C) pallets shipped.
D) volume shipped.
3. Customizing can be an effective warehousing strategy because it allows a company to:
A) allocate available storage space to optimize handling costs.
B) address trade-offs between space and material handling needs.
C) effectively design its inbound and outbound dock areas.
D) add value to the product through modification, labeling, and packaging.
4. Which of the following measures effectively evaluates overall resources in a distribution warehouse?
A) Throughput
B) Cube utilization
C) Filled pallet positions
D) Labor efficiency
5. A manufacturer of consumer packaged goods with a single plant and nine regional distribution centers is considering reducing the number of distribution centers in its system. Reducing the number of distribution centers most likely will reduce fixed warehousing and the cost of:
A) storing cycle inventory in the distribution centers.
B) storing finished-goods inventory at the manufacturing plants.
C) transportation from the distribution centers to the customer.
D) transportation from the plant to the distribution centers.
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