Chapter 17 Final - TEST BANK Sourcing and Supply Chain...

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TEST BANK Sourcing and Supply Chain Management – 4th edition Handfield, Monczka, Giunipero, and Patterson Chapter 17 True or False 1. Virtually all of indirect spend is purchased using an organization’s formal sourcing function or established supply management processes. a. True b. False (p. 622) 2. One company’s indirect spend may be considered direct spend for another. a. True (p. 623) b. False 3. Reverse logistics flow requires companies to find innovative methods of recovering and recycling products to minimize the impact on the environment. a. True (p. 624) b. False 4. Outbound logistics may also include the shipment of repairable items back to maintenance facilities for refurbishment and return to saleable condition. a. True b. False (p. 624) 5. As companies focus more on their core competencies, they come to recognize that many of their transportation and logistics services can and should be outsourced to companies specializing in these services. a. True (p. 624) b. False 6. The primary objective of deregulation in the U.S. was to make its transportation system more efficient by increasing marketplace competition and increasing economic regulation. a. True b. False (p. 625) This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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7. On average, transportation costs comprise 10% of a product’s total cost. a. True (p. 625) b. False 8. Controlling inbound shipment costs usually requires purchasing goods under a shipping designation of FOB destination. a. True b. False (pp. 626-627) 9. A savvy buyer will want to control transportation costs internally instead of allowing the shipper to pass them along in the form of a delivered price. a. True (p. 627) b. False 10. An apparently low-cost carrier may actually end up costing far more than a seemingly higher-cost carrier when the total associated costs are calculated. a. True (p. 629) b. False 11. For some purchased items, such as bulk raw materials, speed of transportation is the most important factor. a. True b. False (p. 629) 12. Federal HOS rule changes are designed to reduce fatigue among truck drivers, a major cause of motor carriers accidents. a. True (p. 630) b. False 13. Under new federal HOS rules, truck drivers are no longer required to include as work hours that time spent waiting at loading docks or fueling their rigs. a. True b. False (p. 630) 14. The greatest competition between domestic transportation modes involves rail and motor carriers. a. True (p. 633) b. False This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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15. The most significant advantage of a motor carrier is its relatively lower cost.
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