OMIS 440
Test #1
Fall 2013
1.
According to the article “U.S. LOGISTICS - Slow Growth Is Good Growth in the Era of
the New Normal, Materials Handling & Logistics Mgt., how much was spent on
logistics in the US in 2012?
a.
b.
c.
d.
e.
2.
How much of US GDP does logistics spending represent?
a.
b.
c.
d.
e.
3.
about 1 %
about 5 %
about 8.5 %
about 15 %
about one fifth of GDP
What was the biggest contribution of the recession according to the author of the article?
a.
b.
c.
d.
e.
4.
$1.3 Billion
$ 13 Billion
$43 Billion
$130 Billion
$1.3 Trillion
trucking companies were able to sell excess capacity (trucks) overseas.
airlines were able to sell excess capacity (airplanes)
companies learned to do more with less (increased productivity)
railroads were able to repair old track rather than add new track
trucking companies were finally able to hire enough drivers
How much of US freight is hauled by trucks?
a.
b.
c.
d.
e.
10 % of the freight and 10 % of the total spending
25 % of the freight and 25 % of the total spending
about half of the freight and 2/3 of the expenditures
70 % of the freight and 80 % of the total spending
95 % of the freight and 95 % of the total spending
5.
According to “Amazon Swings to Loss as Expenses Grow,” Wall Street Journal, July
26, 2013, how often has Amazon had a quarterly loss during its 9 years of existence?
a.
b.
c.
d.
6.
What caused the loss according to the article?
a.
b.
c.
d.
e.
7.
razor-thin
average for retailers
above average for online retailers
very high compared to big box stores
What happened to Amazon’s revenue for the same quarter?
a.
b.
c.
d.
9.
competition from Best Buy and Walmart
a reduction in sales and sales revenue
growing expenses
new state sale taxes coming into effect
increased delivery costs due to fuel prices
How were operating margins referred to for Amazon?
a.
b.
c.
d.
8.
Never….this was the first quarterly loss.
Twice (this and one other)
One quarter per year on average (9 times)
About half of the time (17 times)
it was also down
it was flat (sales did not increase)
sales increased slightly
revenue was up 22%
The article “Ship Travels Arctic From China to Europe,” addressed which major
traditional global shipping route?
a.
b.
c.
d.
e.
Shanghai to Rotterdam (The Netherlands), Europe
Tokyo to Los Angeles
Shanghai to Los Angeles
Tokyo to New York
New York to London
10.
Which country owns the ship which was about to set the record?
a.
China’s Cosco
b.
Holland’s Mearsk Lines
c.
Holland’s BCC Lines
d.
South Korea’s Hyundai Line
e.
Japan’s Mitsubishi Lines
11.
How much time is saved by the artic route?
a.
about 3-4 days
b.
about one week (21 days to 14 days)
c.
about two weeks (48 days to 35 days)
d.
about a month (60 days to 30 days)
e.
about six weeks
12.
According to the article "Japan Probe Pops Car-Part Keiretsu," what is the name of
the type of industrial organization used by companies such as Honda and Nissan?
a.
b.
c.
d.
e.
Trading companies
State -owned companies
supplier- owned cooperatives
Keiritsu
trans-global corporations
13.
What did the Japanese and US Gov’t charge Toyota and Honda with according to the
article?
a.
price fixing and bid rigging
b.
the theft of trade secrets from US auto makers
c.
price discrimination
d.
dumping
e.
fraud (bribing US officials)
14.
How has the Japanese auto industry players respond to the charges brought against
them by the US Dept of Justice?
a.
b.
c.
d.
Most all admitted no guilt and will fight the charges in court.
They paid the fines, but most feel this won’t stop the practices.
Some in the industry seem to want to change, but others hold on the the old
practices, resenting the US for telling them how to do business.
investigators notice a “sea change” in business practices, and willingness
to step forward and cooperate on investigations.
15.
According to “Pipeline Squeeze Reroutes Crude,” which modes of transportation
Have benefited for new production from shale/fracking?
a.
b.
c.
d.
16.
The articles explains the road problems caused in one of the major shale oil discoveries.
Which field is this?
a.
b.
c.
d.
e.
17.
Wal-mart
Best Buy
Ebay
SAKS
None of the above
Which retailers are developing/testing same day delivery service?
a.
b.
c.
d.
e.
19.
The Haynesville Shale in Shreveport, La
The Eagle Ford Shale in South Texas
The Tuscaloosa Trend Shale in Central Louisiana
The Marcellus Shale in Pennsylvania
The Woodford Shale In Oklahouma
In the “Order It Online, And... Voila --- Same-Day Delivery Becomes a Costly Web
Battleground," this was a quote: “_______ created this monster and everyone has to get
on board?” Which retailer created the monster by initiative the service?
a.
b.
c.
d.
e.
18.
rail
barges
trucks
all of the above
SAKS, Macy’s and Dillard’s
Amazon, Ebay and Wal-mart
Costco, Cabella’s and Bass Pro
Best Buy, Academy and Target
None of the above
What is the profitability of the one day tests so far?
a.
b.
c.
it is highly profitable
it is break-even
it is loosing money and being subsidized
20.
The main point of “Corporate News: Glass Bottles Lend Pop to Soda Makers,” is:
a.
b.
c.
d.
21.
How are US sales of soft drinks in the year prior to the article being written?
a.
b.
c.
d.
22.
up about slightly (1 % )
sales have grown sharply due to the recovery (up 12 %)
there is no growth but business is holding steady
sales are declining (1.2 %)
According to “China Begins To Lose Edge As World’s Factory Floor,” what does “FDI”
stand for?
a.
b.
c.
d.
e.
23.
consumers will pay more for glass bottles
glass bottles increase shelf life
consumers think that glass bottles mean better taste, but there is no evidence of
this.
glass bottles are a small growth area for an otherwise declining product/industry.
the Foreign Development Index
the Foreign Development Initiative
Foreign Direct Investment
Factory Data Index
Federal Development Initiative
While China’s FDI has decreased, where is FDI is growing fast according to the article?
a.
b.
c.
d.
e.
Indonesia and Thailand
In the BRIC countries
Central and South America
Brazil and South Africa
Eastern Europe
24.
Where does most of China’s investment coming from now?
a.
China
b.
Japan
c.
Brazil and Germany
d.
Middle eastern oil producing countries
e.
The US and The EU
25.
What is a major issue driving up manufacturing cost in China according to the article?
a.
Imported energy prices
b.
Government bureaucracy
c.
Corruption
d.
Crumbling infrastructure and pollution
e.
Growth in employee wages in recent years.
26.
According to the article"US Redraws World Oil Map," what does the recently released report
by the IEA (International Energy Agency) forecast about world production?
a.
b.
c.
d.
e.
27.
What fuel do they day will be the number one fuel used in the US by 2030?
a.
b.
c.
d.
e.
28.
None
about 1 – 2 %
Privately held company will not say
25 %
All of them
Of all sneakers sold in the US, what portion are imported?
a.
b.
c.
d.
30.
wind
electric
natural gas
diesel
bio-fuels
According to "Not All Sneakers Are Imported.... Yet," how many of New Balance
shoes sold in the US are made in the US?
a.
b.
c.
d.
e.
29.
the US will slowly catch up with the Middle East to become the #3 producer by 2050.
the US will pass Saudi Arabia to become the #1 producer by 2020
Russian will increase production in the vast Siberian fields to become number 1 in 20
years
The Middle east is slowly running out of oil reserves.
Canada’s tar sands fields will make it number 2 in the world for oil just ahead of the US
half
2/3
3/4
99 %
What about sneaker production give the US a disadvantage in making them?
a.
b.
c.
d.
e.
The process has become automated, and the US has no new plants
The process requires using dies and chemicals not allowed by the EPA
the process is labor intensive
Other countries allow younger labor forces than the US
There are so many lawsuits in US plants, that firms stay away.
31.
According to “Competing With Amazon on Amazon,” what does Amazon do that its
retail suppliers don’t like?
a.
b.
c.
d.
32.
After joining Amazon, what happens to sales of a smaller retailer on average?
a.
b.
c.
d
e.
33.
6 - 15 %
25 %
33 %
50 – 60 %
100 % mark-up.
According to "US Car Plants Shift To Top Gear," Wall Street Journal, Aug. 17, 2012. page 1.
what is capacity utilization in the US Auto industry?
a.
b.
c.
d.
35.
sales go up immediately, but then slowly trail downward
sales are usually flat for a year, and then rise
some experience increases, and some experience decreases
sales go up by 50 %
Amazon nor the article revealed this information.
What are Amazon’s fees to a small retailer for selling a product through their system?
a.
b.
c.
d.
e.
34.
Amazon has increased fees to retailers for their service
Amazon gives favor to some retailers by allowing their goods to “pop up”
high on the list of search results.
Selling the same merchandise as their retailers are selling for a lower price.
providing 2 day delivery to only selected “favored” retailers.
all plants are running 40 hours a week
most of the plants are running 5 days a week
plants in the south are running 2 shifts, but not in the Detroit area
40 % of plants are running 80 hours a week, and some more
The number of cars made in 2009 was __________, compared to this year which is
_____ (based upon July at an annualized rate).
a.
b.
c.
d.
10.4 million;
15.8 million;
10.4 million;
10.4 million;
15.8 million
10.4 million
about the same as 2009.
7. 5 million
36.
What has happened to the number of auto workers since 2009?
a.
b.
c.
d.
e.
37.
According to "Can Retailers Halt 'Showrooming'? Stores Test New Services, Selection;
It's About Price," what portion of US buyers are showroomers?
a.
b.
c.
d.
e.
38.
they have increased as plants have come back into production
the number is about the same though production has increased
they have decrease from 925,000 to 647,000 even though production is up.
the article did not say
union employs have increased while non-union is decreased.
1%
about ¼
half
at least ¾
90 %
What portion of US retailing is online?
a.
b.
c.
d.
1%
8%
25 %
almost half