Term
Calculate the reliability of the process given in the preceding problem (the first step has a reliability of 0.95, the second: 0.94, the third: 0.90, the fourth: 0.88 and the fifth: 0.85. |
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Definition
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Term
Consolidation of safety stock |
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Definition
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can lead to lower safety stock levels when measured across the entire supply chain
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can be done geographically
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is independent of rotating stock levels
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can be done virtually
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Term
A key reason for warehousing is ___________________________________ |
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Definition
that production and consumption may not coincide, and warehousing can help smooth out imbalances between them |
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Term
Rail gauge refers to _____________________. |
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Definition
the distance between the inner sides of two parallel rail tracks |
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Term
Penalty payments for delaying (keeping) containers beyond the time when they should be released back to the carrier ______________________________. |
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Definition
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are charged because carriers want to assure that their equipment is neither idle nor unproductive
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operate on a “free time” principle, that is shippers or consignees are permitted a specified amount of time to load or unload freight before monetary penalties are levied.
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are known as detention in the motor carrier industry
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are known as demurrage in the rail industry
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Term
The acronym FAS stands for _________________________. |
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Definition
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Term
Assume that a shipment requires no special consideration (such as dangerous materials) nor does it require special equipment such as refrigerated equipment. The price of such an interstate TL shipment that can legally fit in one 53’ trailer is _________________________ |
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Definition
influenced by the distance of the shipment |
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Term
Concerning intercontinental shipments, air freight is most appropriate for ____________________________. |
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Definition
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Term
When transporting very fragile, time sensitive, ultra high value goods from point of production, assuming that all modes of transportation are available, the transportation modes to be considered, in order of preference are __________________________. |
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Definition
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Term
The modes that require the most protection (packaging) from most to least are __________________. |
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Definition
water, rail, motor carrier, air, pipeline |
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Term
International trade _________________________. |
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Definition
requires great care and specialized financial instruments since each nation is sovereign |
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Term
The exchange of goods and services that cross national borders can become more complicated than domestic transactions due to ______________________________. |
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Definition
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import/export tariffs
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customs
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exchange rates
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national sovereignty
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Term
International Regional Trade Blocs or multinational geo-political and economic organizations include ______________________________. |
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Definition
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European Union (EU).
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Union of South American Nations (UNASUR).
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North American Free Trade Agreement (NAFTA).
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The Association of Southeast Asian Nations (ASEAN).
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Term
As companies practice global supply chain management _________________. |
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Definition
they should try to advantage all parties in their supply chain through win-win relationships and negotiations. |
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Term
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Definition
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inventory carrying costs versus transportation costs
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safety stock levels versus number of stock keeping locations
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length of supply chain versus reliability of supply chain
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inventory carrying costs versus ordering costs
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Term
| supply chains can use IT systems to reduce overall safety stock levels by practicing |
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Definition
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Term
Hazardous materials (hazmat) often receive special attention from logistics managers because of _____________________________. |
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Definition
the injuries, death, and property damage they can cause. |
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Term
Legal classifications of carriers include __________________________. |
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Definition
common carriers, contract carriers, exempt carriers, and private carriers |
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Term
The acronym FOB stands for |
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Definition
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Term
Macroenvironmental influences on international logistics include all of the following ______________________. |
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Definition
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political factors
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embargoes
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economic factors
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cultural factors
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Term
The price of an interstate LTL shipment is _________________________ |
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Definition
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influenced by which commodity is being shipped
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influenced by the number of boxes/containers in the shipment
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influenced by the maximum of the weight of the shipment and the volume (cubic feet) of the shipment.
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influenced by the distance of the shipment
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Term
Concerning intercontinental shipments, air freight is NOT most appropriate for ____________________________. |
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Definition
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low value freight
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raw materials such as coal or petroleum
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transporting raw materials when the destination country is landlocked and thus has no ports
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container shipments with a small number of containers
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Term
When moving petroleum from point of production to the refinery, assuming that all modes of transportation are available, the transportation modes to be considered, in order of preference are __________________________. |
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Definition
| NONE OF THE ANSWERS... its petroleum |
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Term
When shipping very high value goods, assuming that all modes of transportation are available, the preferred transportation mode(s) to be considered, in order of preference are __________________________. |
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Definition
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Term
When trading internationally, specialists can be very helpful. These specialists can include _________________________. |
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Definition
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Term
When compared to domestic sourcing, transcontinental sourcing ______________________________. |
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Definition
is usually slower, enjoying longer lead times |
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Term
International Regional Trade Blocs or multinational geo-political and economic organizations are created to ______________________________. |
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Definition
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reduce supply chain inefficiencies caused by national border security and document inspections
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reduce supply chain inefficiencies caused by potentially inappropriate import/export tariffs
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promote the free flow of trade among the several countries involved
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reduce supply chain inefficiencies caused by restrictions that prevent transportation companies from operating outside their own country
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Term
As companies delay their pursuit of global supply chain management _________________. |
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Definition
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they DONT advantage their long term corporate profitability by postponing significant capital costs
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they AREN'T advantaged because they have more time to benchmark against their competition
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they CAN'T advantage their profitability by focusing on their own internal corporate processes
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they DONT enhance corporate profitability by not distracting their corporate focus toward a current short term fad
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Term
| ways to increase the reliability of a process |
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Definition
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reduce the number of steps in a process
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increase redundancy in a process
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improve the reliability of individual steps in a process
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Term
The following ARE reasons to carry inventory |
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Definition
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to maintain and service existing contractual obligations such as military spare parts contracts
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to invest in future income
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to maintain customers
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to support manufacturing efforts (e.g. stocking supplies, raw materials and WIP)
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Term
| consolidating rotating stock ___________________________ |
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Definition
should make no difference in rotating stock levels |
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Term
Advantages to the use of public warehousing include _________________________. |
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Definition
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long term commitments
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large capital investments
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the costs of unused space.
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OSHA regulation compliance
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Term
Intermodal transportation refers to _____________________ |
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Definition
shipments that are transferred from the vehicle of one mode to the vehicle of another mode without reloading or disturbing their contents |
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Term
Factors that influence a product’s rate classification include ______________________. |
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Definition
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Term
A certificate of origin specifies the country(ies) ___________________________________. |
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Definition
in which a product is manufactured |
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Term
An interstate rail shipment is most appropriate for _________________________ |
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Definition
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Term
When shipping goods to a country without ports capable of handling containers, ___________ |
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Definition
specialized non-container ships exist that can transport the goods to such destinations. |
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Term
The modes that require the most protection, in order are __________________________. |
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Definition
water, rail, motor, air, pipeline. |
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Term
Pipelines __________________. |
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Definition
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have large fixed costs and low variable costs
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have restricted locations where they can be used
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can carry only a relatively few products
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are very cost effective when they can be used
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Term
When dealing with a foreign company, risks of one party not providing the promised goods or payments exist. To protect the participating companies, they commonly use the following financial instrument, _________________________. |
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Definition
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Term
When compared to domestic sourcing, transcontinental sourcing provides great value ____________________________. |
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Definition
because of reduced material costs. |
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Term
When considering global trade decisions, the impact of global supply chain management on total costs ISN'T ______________________________. |
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Definition
- minimal due to balanced tariffs
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represents the largest cost component due to balanced tariff negotiations
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only matters if using high cost transportation such as air freight
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should be ignored if competitive forces enjoy no advantage
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Term
The effect of repositioning safety stock in the supply chain from the manufacturer to the supplier |
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Definition
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reduces manufacturer safety stock levels.
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is independent of rotating stock levels
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can reduce overall supply chain safety stock levels
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increases supplier safety stock levels
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Term
| consolidating safety stock ___________________________. |
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Definition
should change safety stock levels. The new safety stock levels can be quantified with the aid of the square root rule |
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Term
Tradeoffs to consider in warehousing decisions include ____________________ |
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Definition
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spaciousness versus labor requirements
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labor costs versus mechanization costs
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spaciousness versus damage caused by cramped conditions
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spaciousness costs versus costs to mechanize
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Term
Federal regulations in the U.S. transportation industry __________________________. |
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Definition
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include environmental regulations.
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include safety regulations
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include economic regulations
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can differ from transportation regulations found in other countries
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Term
A bill of lading ________________________ |
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Definition
functions as a delivery receipt when products are tendered to carriers |
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Term
Operational issues in international logistics include __________________________. |
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Definition
documentation, terms of sale, and methods of payment. |
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Term
When transporting intercontinental shipments to a container port, ___________. |
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Definition
the use of containers offers many benefits such as security, damage control, and reduced handling costs. |
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Term
When moving petroleum from point of production to the refinery, assuming that all modes of transportation are available, the transportation modes to be considered, in order of preference are __________________________. |
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Definition
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Term
A letter of credit ISN'T _________________________. |
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Definition
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can be used to acquire personal loans as well as business loans
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explains credit worthiness (much like a credit score).
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communicates terms of payment
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is a negotiated, legal document that commits the selling company to extend credit to the purchasing company at the prime interest rate
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Term
Global supply chain management CAN'T reduce total costs (when compared to domestic supply chain management) ____________________________. |
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Definition
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by reducing transportation costs
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by reducing inventory carrying costs
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by reducing transit time
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by reducing supply chain complexity and reducing the impact of the bullwhip effect
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Term
The price of an interstate LTL shipment is _________________________ |
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Definition
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influenced by which commodity is being shipped
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influenced by the number of boxes/containers in the shipment.
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influenced by the maximum of the weight of the shipment and the volume (cubic feet) of the shipment
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influenced by the distance of the shipment
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