OMGT 129 Final Test

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Centennial College *

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129

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Economics

Date

Feb 20, 2024

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1. _______________ can have a positive impact on the environment through recycling, reusing materials and products, or refurbishing used products and reducing the environmental impact of certain modes of transportation used for returns. - reverse logistics 2. ________________ creates the flow of goods between supply chain partners, such that costs, service requirements, competitive advantage, and profits can be optimized. - logistics 3. A clothing manufacturer presently owns a total of four warehouses in the following cities Las Vegas, Denver, Chicago, and Pittsburgh. The average inventory levels for the four warehouses are 7000 units, 6,000 units, 5,000 units, and 6000 units, respectively. They plan on moving all of their inventory to one warehouse in Las Vegas. Using the square root rule, what will be the required average inventory level at the new Las Vegas warehouse required to maintain the system's present customer service level? (Choose the closest answer.) - 12,000 4. A market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitors is called a(n) - natural monopoly. 5. A strong industrial policy: - helps firms compete in a fast-moving global economy. 6. According to the textbook, the initial step in creating an effective performance measurement system is to: - Identify the firm's strategic objectives 7. Advocates of privatization base their positions on the need for efficiency and overall performance. - true 8. After the 1950s, most Congressional legislation that affected business was - concerned largely with the quality of life. 9. Air carriers most favorably when the distance is long and the shipments are heavy or bulky – False 10. All of the following are reasons that government regulation of business is needed except - maintain competitive markets. 11. Arguments against industrial policy include all of the following except. - The need to rescue "sunset" industries. 12. Arguments against privatization include all of these except: - service provisions. 13. Arguments for industrial policy include all of the following except - stifling innovation.

14. Building, maintaining and strengthening beneficial relationships and suppliers and customers is accomplished through the use of – External process integration 15. Business generally follows the ethic of - individualism. 16. Companies typically like to design scorecards that fit their business and industry. As a result there are now software applications that can help companies design scorecards that fit their individual needs. These web-based balanced scorecard applications are often referred to as: - Performance dashboards 17. Cycle counting means to physically count inventory on a periodic basis. – True 18. Decision regarding the types of parts purchased, suppliers used and the manufacturing process employed, should be decided in which phase of the supply chain integration model: - Review and establish supply chain strategies 19. Dependent demand must be forecasted to be accurate – False 20. Deregulation has provided uniform benefits for all parties affected. - false 21. Early economic regulations and the government bodies that administered them were usually formed along industry lines. - true 22. Every form of state intervention that affects industry as a distinct part of the economy is called - industrial policy. 23. Generally speaking, motor carriers are less expensive than rail carriers to haul goods. - False 24. Global location decisions are made to optimize the performance of supply chains and to be consistent with the firm’s competitive strategy . – True 25. Government attempts to persuade business to act in the public interest are called - moral suasion. 26. Government influences business through all of the following nonregulatory methods except - requiring equal employment opportunities be granted to job applicants. 27. Government intervention in business began with - a push for tariffs. 28. Government intervention in monopolistic industries is often brought about by - anticompetitive practices. 29. Government is generally thought to follow the ethic of - collectivism.

30. Government payments to industries or groups with special qualifications are called - subsidies. 31. Government regulation generally arises out of some type of market failure. - true 32. Government regulation of business through the control of economic or market variables is a form of - economic regulation. 33. Government regulations have been criticized for all the following reasons except - being ineffective. 34. Government's new role in its relationship with business during the New Deal era was one of - restoring prosperity and promoting economic growth. 35. Governmental regulations that seek to further societal objectives are examples of - social regulation. 36.If an item is ordered using its economic order quantity, the annual carrying cost should be: - equal to the annual ordering cost. 37.If at the end of the year, the cost of revenue = $2,500, total revenue = $12,000 and inventory value = $2,000, the inventory turnover ratio would be: - 1.250 38.If your company had an annual purchase cost of items equal to $2,000,000, an annual holding cost of $150,000 and an annual ordering cost of $50,000 this scenario would reveal that: - Your order lot size was higher than the EOQ 39. In many ways the most controversial aspect of the government/business relationship is regulation. - true 40. In the U.S., which of the five basic modes of transportation is responsible for the largest volume (in tonnage) of domestic freight hauled? - motor carriers 41. In well-managed supply chain, performances measurement systems become smaller and less complicated due to the closer relationships, trust and interactions – False 42.Independent demand is the: - Demand for a firm's end products. 43. Industrial policy is: - a powerful nonregulating approach by government to influence business. 44. Keeping people informed is an important social goal of government. - true 45. Lean warehousing may involve all of the following capabilities EXCEPT: - decreased automation

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46. Limitations of air carrier transport include cost and airport accessibility – True 47. Logistics affects the supply chain function by: Determining how deliveries can be made in a timely manner 48.Lubricants for production equipment which are not parts of the final products are called: - Maintenance, repair and operating supplies 49. Many government regulations over business have been created by the efforts of special interest groups. - true 50. Many Multinational corporations are moving to their facilities into China to have access to the local markets rather than for export reason – true 51. Modem goals for business include all of the following except - promoting the social welfare. 52. Most Congressional legislation before the 1950s that affected business was - economic in nature. 53.MRO supplies are a type of work-in-progress. - FALSE 54. Negative externalities are often referred to as - social costs. 55. Negative externalities are the additional costs incurred by business due to the outside regulations placed by government. - false 56. Newer social regulations covers business practices in all industries. - true 57.OMGT 129 Final Test 58. One of the most direct ways in which government influences business is through transfer payments. - false 59. One of the recurring problems in industries that have been deregulated is that they tend to become dominated by a few finns. - true 60. Our goals for business focus solely on the production and distribution of goods and services. - false 61. Proponents of privatization want government to be a producer of services. - false 62. Providing time and place utility - Creating the flow of goods between supply chain partners 63. regarding the types of parts purchased, suppliers used and the manufacturing process employed, should be decided in which phase of the supply chain integration model: - Review and establish supply chain strategies

64. Regulating the way business operates is only one of several roles the government has in its relationship with business - true 65. Reverse logistics refers to the movement, storage, and processing of: - returned goods 66. Small firms with no internal logistics expertise and large firms with many sizeable and varied logistics needs can benefit greatly by using: - 3PL Service 67. Social regulation's focus on people encompasses their roles as all of the following except - business owners. 68.Steering wheels purchased by Ford are an example of dependent demand. - True 69.The ABC inventory control prioritizes dependent demand inventory items into three groups, A, B, and C. A items receive the smallest amount of safety stock, while C items typically have the most safety stock. - FALSE 70.The ABC inventory matrix combines two ABC analyses—one is based on current inventory valuation and the other is based on annual inventory dollar usage. - T RUE 71. The act of governing or bringing under the control of law or constituted authority is called - regulation. 72. The clash of ethical systems between government and business is centered around a. growth and sustainability. - individualist and collectivist ethics. 73.The College Bookstore sells a unique calculator to college students. The demand for this calculator has a normal distribution with an average daily demand of 20 units and a standard deviation of 4 units per day. The lead time for this calculator is 9 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. - 420 UNITS 74.The College Bookstore sells a unique calculator to college students. The demand for this calculator is constant at 20 units per day. The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer. - 246 UNITS 75. The dilemma of deregulation is - to enhance competition within the industry without sacrificing applicable social regulations.

76. The dilemma of regulation is the tradeoff between - effective control and the burden placed on firms. 77.The economic order quantity model (EOQ) is the optimal independent demand order quantity that minimizes total annual inventory costs. - TRUE 78.The EOQ model with quantity discounts attempts to determine: - how many units should be ordered. 79. The for-hire logistics expenditures in the U.S. has more than ___________ in the last thirty- one years? - quadrupled 80.The four categories of inventory are raw materials, intermediate assemblies, work-in- progress and finished goods. - FALSE 81. The inventory turnover ratio shows how efficiently a firm is using its inventory to generate revenue. – True 82. The level of government regulation of business has always been low. - false 83. The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government. - false 84. The new social regulation focuses on business's impacts on other businesses. - false 85. The newer form of industrial policy is exemplified by: - Robert Reich's book, "American Frontier." 86. The newest type of social regulations is concerned primarily with - security. 87. The opposite of privatization could be considered - federalization. 88.The optimal order quantity for the quantity discount model is always at one of the price breakpoints. - FALSE 89. The primary purpose of deregulation is to - remove certain industries from old-line economic regulations. 90.The primary purpose of the basic economic order quantity (EOQ) model is to: - None of the above 91. The primary reason for government regulation of business is - market failure. 92. The public and government use all of the following methods of influencing each other except - coercion.

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93. The question of whether current public functions should be performed by the government or private sector is addressed by - privatization. 94. The reason that the United States government passed anti-trust legislation was - due to the anti-competitive practices of some large trusts. 95. The relationship between government and business has become adversarial, but is improving. - false 96. The relationship between government and business is limited to government's influence over business. - false 97. The responsibility of transportation is to create both time utility and place utility, which means that products will be delivered at the right time to the desired location. - True 98. The rule to estimate the effect of risk pooling is referred to as the _______. - square root rule 99.The statistical reorder point is calculated as the average demand during the delivery lead time plus the desired safety stock. - TRUE 100. The weighted-factor rating model, is a useful location analysis technique when fixed and variable costs can be determined for each potential location. – False 101. There has always been a strong reaction in the United States to any form of industrial policy because: - It conflicts with the widely held view of government’s role in the economy. 102. transportation deregulation encourages - competition and allows prices to adjust as supply, demand, and negotiations dictate. 103. Transportation management system (TMS) applications allow firms to find carriers, track fuel usage and product movements, and stock the shelves at customers' location. - False 104. Transportation regulation tends to ensure adequate transportation service throughout the country. - ensure adequate transportation service throughout the country. 105. We have an expert-written solution to this problem! 106. We have an expert-written solution to this problem! 107. What inventory factor may be omitted from the basic EOQ derivation because it is a constant? - Annual purchase cost of goods

108. When demand and delivery lead time are known and constant, daily demand = 8, purchase lead time = 5 days, and the purchase price = $20/unit, then the reorder point is: - 40 109. When demand and delivery lead time are known and constant, the reorder point is the ____. - demand during the delivery lead time 110. When demand and lead time are constant, the reorder point (ROP) is less than the demand during lead time. - False 111. When providing loan guarantees for business, the government actually transfers the money to the business. - false 112. When utilizing performance standards, the difference between the standard and the actual performance is called the: - Performance Variance 113. When warehouses receive, break down, and repackage shipments, and then distribute components to a manufacturing location or finished products to customers by a distribution center this activity is referred to as: - crossdocking 114. Which of the following are secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes? - Foreign- trade zones 115. Which of the following carriers is most favorable, but inflexible, when shipments are heavy and the distance for delivery is long? - rail carriers 116. Which of the following describes a global RFID challenge? - Globally, the RFID industry does not have its own UHF spectrum allocation. 117. Which of the following does not play a significant role in the logistics function? - manufacturing cells 118. Which of the following identifies the key customers, determines their needs, and then develops products and/or services to meet those needs? – Customer Relationship Management 119. Which of the following industries has not been affected by deregulation? - computer software

120. Which of the following international intermediaries move global shipments through customs for companies and handle the documentation required to accompany the shipments? - customs broker 121. Which of the following is a disadvantage of carrying too much inventory? - it creates an unnecessary waste of scarce resources. 122. Which of the following is a factor in choosing a location? - Currency stability 123. Which of the following is an obstacle to successful process integration? - Lack of trust 124. Which of the following is not a concern expressed by executives about government involvement in business? - U.S adults said government should do more 125. Which of the following is NOT a direct benefit from the adoption of NAFTA? - Reduction in illegal immigrants crossing the border from Mexico since NAFTA began 126. Which of the following is not a major reason given for governmental regulation? - maintaining a trade surplus with foreign countries 127. Which of the following is not a method that government uses to influence business? - lobbying 128. Which of the following is NOT a problem with using cost, revenues or profits as performance measures? - They are difficult to compare with other firms 129. Which of the following is not a role increasing goverrnnent's complex relationship with business? - goverrnnent cannot have buying power 130. Which of the following is NOT an assumption of the economic order quantity (EOQ) model? - Production and use occur simultaneously. 131. Which of the following is not an effect of induced costs? - new agencies may be created. 132. Which of the following is not considered a part of the induced costs of regulation? - the effect on consumers 133. Which of the following is not mentioned as a frustration executives have with government officials, according to a recent McKinsey survey? - Concerned that government aims to redistribute the balance of wealth 134. Which of the following is true under the Periodic Review System? - a higher level of safety stock is needed to buffer against uncertainty in demand over a l onger planning horizon, compared to the EOQ system

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135. Which of the following modes of transportation should be used to haul large quantities of natural gas and oil from desolate areas to existing processing facilities hundreds of miles away? - pipelines 136. Which of the following was enacted to reduce and eliminate transportation regulations? - Trucking Industry Regulatory Reform Act 137. Which of the following was the first major transportation regulation in the U.S.? - Granger Laws 138. Which of the following would be considered a dependent demand item? - Bicycle tires used to assemble a bicycle 139. Which of the following would refer to the 80/20 rule when applied to the ABC inventory control system? - None of these. 140. Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing, production and distribution plans: - Order fulfillment process 141. Which one of the following is NOT a reason for firms to carry inventory? - To increase production change/setup costs 142. Which one of the following statements regarding the economic order quantity (EOQ) is true? - If an order quantity is larger than the EOQ, then the annual holding cost will exceed the annual ordering cost . 143. While many developing countries are attractive to companies seeking out low labor costs, there are other factors such as productivity levels, employee skill and education levels, turnover rates, and employment trends that certain industries find just as important, if not more important, in determining facility locations. – True

OMGT 129 Final Test

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