Chapter 2 Dimensions of Logistics

1
Chapter 2 Dimensions of Logistics

• During the 1980s, logistics costs as a percentage
  of gross national product declined.
• True
• In general, Production department prefers small
  production lots whereas Logistics department
  prefers large production lots
• False
• Transportation is the physical movement or flow
  of goods.
• True

2
Chapter 2 Dimensions of Logistics

• The four fundamental economic utilities are
• Form utility
• Place utility
• Time utility
• Possession utility

3
Chapter 2 Dimensions of Logistics

• The seven Rs of business logistics are RIGHT
• Cost
• Condition
• Customer
• Place
• Product
• Quantity
• Time

4
Chapter 2 Dimensions of Logistics

• Logistics systems having a very heavy inbound
  flow and a very simple outbound flow are reverse
  systems.
• False
• In a logistics system, warehousing should be
  optimized at the expense of related logistics
  activities such as transportation and
  procurement.
• False

5
Chapter 2 Dimensions of Logistics

• The mathematical calculation of the point of
  indifference between systems under analysis is
  used for short-run/static analysis.
• False
• The inverse relationship exists between the cost
  of lost sales and inventory carrying costs.
• True