MGT 377 Procurement, Purchasing, and Vendor Management
Multiple Choice Questions
1.Which of the following is not one of the four steps in the risk management process?
a.Identify the risk
b.Analyze the risk
c.Manage the riskAnalyze the risk
d.Cost the risk mitigation
2.Looking at exports and imports combined who is the U.S.’s largest trading partner?
3.What is a liner ship?
a.an ocean-going ship that travels a fixed route on a published schedule
b.a ship that travels inland waterways on a demand schedule
c.an ocean-going cruise ship that handles passengers on specific routes
d.a ship owned or leased on a long-term, basis by the company moving the goods
4.Companies may smartly outsource all of the following except
5.3PLs are typically categorized based upon their foundational service offering such as:
a.Transportation, Distribution, and Marketing
b.Forwarder, Distribution, and Human Resources
c.Transportation, Distribution, and Forwarder
d.Human Resources, Marketing, and Distribution
6.What type of 3PL traces their origin to freight movement via truck, rail, or other?
7.What is the major service characteristic of air transportation?
c.very reduced paperwork because of special rules which apply to air carriers
8.What two parameters are involved in risk assessment
a.Cost and impact
b.Probability and impact
c.Frequency and probability
d.Duration and probability
9.What type of 3PL originated from the public or contract warehousing business?
10.What group of 3Pls do not own equipment, they instead arrange transportation services?
11.What is the simplest way to eliminate risk?
12.Not putting all your “eggs in one basket” is what type of strategy?
13.What is the final step in risk management?
a.Reviewing and monitoring
14.What is one of the strengths of an Asset Based 3PL?
a.Ability to provide direct and immediate solutions
b.Flexibility with respect to fixed assets
c.Not limited to internal infrastructure
d.Likely to create innovative solutions
15.Which of the following is not one of the four C-Incoterms?
16.Which of the following Terms of Payment has the least risk to the seller?
a.Letter of Credit
b.Cash in Advance
c.On presentation of draft to buyer
d.On maturity of the draft
17. Which of the following is not a standard container length?
18.Which transportation mode provides high capacity and low cost?
19.The Free and Secure Trade (FAST) Program is between the U.S.and:
20. Container ships are built specifically for the purpose of moving:
a.20 and 30 feet containers
b.30 and 40 feet containers
c.30 and 53 feet containers
d.20 and 40 feet containers
21.In terms of thousands of tons per year, what it the busiest seaport?
22.What is the term for an external supplier that perform all or part of an organizations logistics services?
c.Third party logistics service provider (3 PL)
d.Just in time provider
23.Which of the following is not a risk management option?
c.A Mixed approach
d.Elimination of all risk
24.According to the book, 3PL spending is highest in:
25.How much time is spent in traffic per year by U.S. residents?
b.1 Billion hours
c.4.2 Billion hours
d.4.2 Million hours
26.The most important aspect of collaboration is sharing:
27.Which of the following is not an objective of the risk management process?
a.Define the key objectives
b.Identify risk issues
d.Treat all risks equally
28.Supply chain disruption can result in:
a.Stock price increase
b.Lower operating performance
d.Higher return on assets
29.How much carbon dioxide is produced by the consumption of 1 gallon of fuel?
30.Which of the follow is something Intercoms will not do:
a.Define relationship regarding mode of delivery
b.Define passage of title
c.Define contractual rights
d.Define when a delivery is couplet
Short Answer Questions
31.What is the primary role of an Air Freight Forwarder?
32.Risk management is defined as:
33.A financial base 3 PL does what?
34.___________is a common method of risk transfer that nearly everyone utilizes at one time or another.
35.Please list and explain four of the ten intermediary and special services (as listed in the textbook) which are offered by 3 plus to their customers.
36.The objectives of the risk management process are: