Logistics Management Exam Practice Tests
Course Introduction
Logistics Management explores the strategies, processes, and technologies involved in efficiently planning, implementing, and controlling the flow of goods, services, and information from point of origin to point of consumption. The course examines key topics such as inventory control, transportation, warehousing, procurement, distribution networks, and supply chain integration. Through case studies and practical examples, students learn how effective logistics management contributes to organizational competitiveness, customer satisfaction, and cost minimization. The course also addresses emerging trends, sustainability, and the impact of globalization on logistics operations.
Recommended Textbook Operations and Supply Management 12th Edition by F. Robert Jacobs
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Page 2
Chapter 1: Introduction to the Field
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Sample Questions
Q1) One of the current issues of operations and supply management is decreasing "commoditization" of suppliers.
A)True
B)False
Answer: False
Q2) The text mentions a number of major challenges (listed below)to operations management that are expected to develop in the near future.Select one of these and briefly discuss the nature of the challenge?
A.Coordinate the relationships between mutually supportive but separate organizations
B.Optimizing global supplier,production and distribution networks
C.Increased co-production of goods and services
D.Managing the customer's touch points
E.Raising senior management awareness of operations as a competitive weapon These concepts are discussed in the text under the heading "Current Issues in Operations Management" on page 18.
Answer: These concepts are discussed in the text under the heading "Current Issues in Operations Management" on page 18.
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Chapter 2: Operations and Supply Strategy
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Sample Questions
Q1) Various financial data for SunPath Manufacturing for 2008 & 2009 follow. \(\begin{array}{llll}
& & 2008 & 2009 \\
\text { Output: } & \text { Sales } & \$ 300,000 & \$ 330,000 \\
\text { Inputs: } & \text { Labor } & \$ 40,000 & \$ 43,000 \\ & \text { Raw Materials: } & \$ 45,000 & \$ 51,000 \\ & \text { Energy: } & \$ 10,000 & \$ 9,000 \\ & \text { Capital Employed: } & \$ 250,000 & \$ 262,000 \\ & \text { Other: } & \$ 2,000 & \$ 6,000 \end{array}\)
What is the percentage change in the labor partial productivity measure for SunPath between 2008 & 2009?
A)9.22
B)2.33
C)0.53
D)2.88
E)10.39
Answer: B
Q2) Strategy typically breaks down into what three major components?
Answer: operations effectiveness,customer management and product innovation
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Page 4
Chapter 3: Project Management
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Q1) In calculating the probabilities in a CPM analysis the desired time is determined by calculating the expected time for the project as a whole.
A)True
B)False
Answer: False
Q2) The expected time estimate in a CPM three time estimate procedure is a weighted average formula.
A)True
B)False
Answer: True
Q3) If you have an optimistic time of 4 weeks,a most likely time of 6 weeks and a pessimistic time of 8 weeks on an activity in a CPM managed project,what is the expected time for this activity?
A)4 weeks
B)5 weeks
C)6 weeks
D)7 weeks
E)8 weeks
Answer: C
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Chapter 4: Product and Service Design
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Q1) Quality Function Deployment (QFD):
A)Is a manufacturing function aimed at lowering cost by reducing the portion of rejected units
B)Fills the "House of Quality" matrix with the designer's aspirations for the product
C)Starts with studying and listening to customers
D)Is a place where the quality assurance function is housed
E)Another term for Value Engineering
Q2) The purpose of Value Analysis/Value Engineering (VA/VE)is to:
A)Simplify products and processes
B)Improve the value that customers find in existing products
C)Relate the customer's needs to technical specifications
D)Meet budgets and improve the results of financial models
E)To facilitate better cooperation between business functions
Q3) Core competencies are those things that everyone in the firm must be able to do well.
A)True
B)False
Q4) How might the generic product development process described in the text be different if developing a process-intensive product?
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Chapter 5: Strategic Capacity Management
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Q1) Maximum practical capacity is defined by the federal Bureau of Economic Analysis as "That output attained within the normal operating schedule of shifts per day and days per week including the use of high-cost inefficient facilities".
A)True
B)False
Q2) Low rates of capacity utilization in service organizations are never appropriate.
A)True
B)False
Q3) The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities,equipment and overall labor force size)that best supports the company's long-range competitive strategy.
A)True
B)False
Q4) When evaluating capacity,managers need to consider both resource inputs and product outputs.
A)True
B)False
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Chapter 6: Process Analysis
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Sample Questions
Q1) Which of the following terms describes the time a unit spends actually being worked on together with the time spent waiting in a queue?
A)Cycle time
B)Throughput time
C)Run time
D)Setup time
E)Efficiency
Q2) According to Little's Law,which of the following ratios is used to find throughput time?
A)Cycle time/Process time
B)Throughput time/Process velocity
C)Process velocity/Throughput time
D)Work-in-Process/Throughput rate
E)Value added time/Process velocity
Q3) Which of the following best describes the term cycle time?
A)Average time between completions of successive units
B)Ratio of the time a resource is activated over its use
C)Can be no more that 60 minutes
D)The same as utilization
E)The labor content of the item being measured
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Chapter 7: Manufacturing Processes
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Sample Questions
Q1) Differentiate between a workcenter and a manufacturing cell?
Q2) Break-Even Analysis can be used to help decide whether to perform a task with a special purpose machine or with a general purpose machine.
A)True
B)False
Q3) A process flowchart uses the information presented in the assembly drawing and defines how parts go together and their order of assembly.
A)True
B)False
Q4) Assume a fixed cost for a process of $120,000.The variable cost to produce each unit of product is $35 and the selling price for the finished product is $50.Which of the following is the number of units that has to be produced and sold to break-even?
A)5,000 units
B)6,000 units
C)8,000 units
D)11,000 units
E)12,000 units
Q5) Give an example of a project layout?
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Chapter 8: Service Processes
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Sample Questions
Q1) It is not necessary that a well-designed service system be robust.
A)True
B)False
Q2) One characteristic of a well-designed service system is that it is cost-effective.
A)True
B)False
Q3) In the service-system design matrix,a mail contact service encounter is expected to have which of the following?
A)High sales opportunity
B)High degree of customer/server contact
C)High production efficiency
D)Low sales opportunity
E)None of the above
Q4) Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes".
A)True
B)False
Q5) In the service-system design matrix,what kind of production efficiency is expected from a service encounter designed to be "face-to-face loose specs"?
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Chapter 9: Six Sigma Quality
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Sample Questions
Q1) A flow chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
A)Define
B)Measure
C)Analyze
D)Improve
E)Control
Q2) The Shingo system approach to quality is totally compatible with statistically based approaches to quality control.
A)True
B)False
Q3) A quality guru named Philip Crosby suggested a general approach to quality management should involve prevention,not inspection.
A)True
B)False
Q4) One of the tools of a quality control department that is used in a TQM program is process sampling.
A)True
B)False
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Chapter 10: Supply-Chain Strategy
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Sample Questions
Q1) What are the main distinctions between service supply chains and manufacturing supply chains?
Q2) Retailers who stock up during promotion periods where the prices of goods are reduced are doing backward buying.
A)True
B)False
Q3) If inventory turnover is 20 and cost of goods sold is $100,000,what is the average aggregate inventory value?
Q4) Which of the following is not an improvement-driven reason to outsource?
A)Improve risk management
B)Increase commitment in a noncore area
C)Acquire innovative ideas
D)Improve control
E)Obtain expertise,skills and technologies
Q5) Value density is an important measure for determining the quality of logistical services.
A)True
B)False
Q6) Name the transportation modes discussed in the textbook.
Page 12
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Chapter 11: Logistics and Facility Location
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Sample Questions
Q1) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A)Government barriers
B)Trading blocs
C)Environmental regulation
D)Immigration rules
E)Local labor costs
Q2) One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following costs should be excluded from the analysis?
A)Historical costs
B)Inbound distribution costs
C)Land
D)Construction
E)Regional costs
Q3) In facility location decision-making the educational and skill levels of the labor pool must match the company's needs.
A)True
B)False
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Chapter 12: Lean Manufacturing
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Sample Questions
Q1) A focused factory tends to be a small plant designed for one purpose.
A)True
B)False
Q2) Which of the following is a lean production technique that is not reported in the textbook to have been successfully applied in service firms?
A)Organize problem-solving groups
B)Upgrade housekeeping
C)Upgrade quality
D)Freeze windows
E)Eliminate unnecessary activities
Q3) To implement a flow process in developing a lean system a firm might do which of the following?
A)Balance workstation capacities
B)Standardize product configurations
C)Process design with product design
D)Adopt a kaizen philosophy
E)Implement top-down management controls
Q4) What seven design principles guide the design of lean supply chains?
Q5) Name Fujio Cho's seven prominent types of waste to be eliminated.
Q6) Explain why lean manufacturing requires a stable demand environment.
Page 14
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Chapter 13: Operations Consulting Reengineering
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Sample Questions
Q1) Which of the following is a cost impact and payoff analysis tool from the operations consulting tool kit?
A)Decision trees
B)Gap analysis
C)Work sampling
D)Statistical tools
E)Customer surveys
Q2) Which of the following is the stage in the operations consulting process that immediately follows assure client satisfaction?
A)Design,develop and test alternative solutions
B)Assemble learnings from the study
C)Present final report
D)Assure client satisfaction
E)Present invoice
Q3) Identify the five forces which help evaluate a firm's competitive position in light of the structure of its industry.
Q4) Describe how the success-to-the-successful system archetype works.What should be done about it?
Q5) What is the distinction between detailed complexity and dynamic complexity?
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Chapter 14: Enterprise Resource Planning Systems
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Sample Questions
Q1) Orders taken over the internet pose a threat to data integrity in an ERP system.
A)True
B)False
Q2) Which of the following firms is not listed as a major developer of ERP software?
A)SCLogicx
B)Microsoft Corporation
C)I2Technologies
D)JDA
E)Oracle
Q3) Just-in-time or kanban practices can not be supported by SAP.
A)True
B)False
Q4) "Slice and dice",in the context of the information warehouse,means getting an increasingly detailed and focused view of aggregated data.
A)True
B)False
Q5) Corporate Governance is one area that SAP does not support.
A)True
B)False
Q6) Name the six components of the SAP AG's R/3 operations module?
Page 16
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Chapter 15: Demand Management and Forecasting
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Sample Questions
Q1) A company has actual unit demand for three consecutive years of 124,126 and 135.The respective forecasts for the same three years are 120,120 and 130.Which of the following is the resulting MAD value that can be computed from this data?
A)1
B)3
C)5
D)15
E)123
Q2) Which of the following is the major reason that exponential smoothing has become well accepted as a forecasting technique?
A)Accuracy
B)Sophistication of analysis
C)Predicts turning points
D)Ease of use
E)Forecasts lag data trends
Q3) Linear regression is not useful for aggregate planning.
A)True
B)False
Q4) Distinguish between errors in statistics and errors in forecasting?
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Chapter 16: Aggregate Sales and Operations Planning
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Sample Questions
Q1) Which of the following is considered a "pure" production planning strategy?
A)Variable workforce,stable work hours
B)Lag demand
C)Level playing field
D)Stable workforce,variable work hours
E)Product warehouse
Q2) A mathematical technique that is only used in aggregate planning for service operations is the transportation method of linear programming.
A)True
B)False
Q3) Which of the following costs are relevant to aggregate operations planning?
A)Sunk costs
B)Transaction costs
C)Backordering costs
D)Legal costs
E)Fixed costs
Q4) The master production schedule is a crucial input into the aggregate operations plan.
A)True
B)False
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Chapter 17: Inventory Control
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Q1) The optimal stocking decision in inventory management,when using marginal analysis,occurs at the point where the benefits derived from carrying the next unit are more than the costs for that unit.
A)True
B)False
Q2) The Pareto principle is best applied to which of the following inventory systems?
A)EOQ
B)Fixed-time period
C)ABC classification
D)Fixed-order quantity
E)Optional replenishment system
Q3) Safety stock is not necessary in any fixed-time period system.
A)True
B)False
Q4) The fixed-order quantity inventory model favors less expensive items because average inventory is lower.
A)True
B)False
Q5) What are the five purposes of inventory?
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Chapter 18: Material Requirements Planning
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Q1) Projected available balance is the amount of inventory that is expected as of the beginning of a period.
A)True
B)False
Q2) A material requirements planning (MRP)system with information feedback from its module outputs is termed a "closed-loop MRP" system.
A)True
B)False
Q3) All firms maintain bill of materials (BOM)files,which are simply a sequencing of everything that goes into a final product.
A)True
B)False
Q4) In a typical inventory status record which of the following would you not expect to see?
A)Scrap allowance
B)Order quantity
C)Gross requirements
D)Planned-order releases
E)Lost items
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Chapter 19: Scheduling
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Q1) The LCFS and Johnson's priority rules are basically the same except LCFS uses due dates as a major determiner of job sequence.
A)True
B)False
Q2) Which of the following is not a priority rule used to schedule the sequence of jobs in a production operation?
A)First-come-first served
B)Shortest operating time
C)Last-in-first-out
D)Critical ratio
E)Slack-time-remaining per operation
Q3) In finite loading no consideration is given directly to whether there is sufficient capacity at the resources required to complete the work,nor is the actual sequence of the work as done by each resource in the work center considered.
A)True
B)False
Q4) What is the difference between finite and infinite loading?
Q5) What is dispatching?
Q6) In the context of work assignment,what is infinite loading?
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Chapter 20: Constraint Management
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Sample Questions
Q1) On an assembly line a process batch can be infinite.
A)True
B)False
Q2) Departments within a firm often are at odds with each other because reward systems are often not synchronized with the basic goal of the firm: to make money.
A)True
B)False
Q3) What are the three financial measures of the firm's ability to make money?
Q4) According to the theory of constraints which of the following is a kind of time that makes up the cycle time in production?
A)Process time
B)Starting time
C)Quitting time
D)Information time
E)Finish time
Q5) OPT stands for optimal purchasing technique.
A)True
B)False
Q6) Describe how cost accounting is sometimes antithetical to TOC?
Page 22
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Chapter 21: Linear Programming Using the Excel Solver
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Q1) A company wants to determine how many units of each of two products,A and B,they should produce.The profit on product A is $50 and the profit on product B is $45.Applying linear programming to this problem,which of the following is the objective function if the firm wants to make as much money as possible?
A)Minimize Z = 50 A + 45 B
B)Maximize Z = 50 A + 45 B
C)Maximize Z = A + B
D)Minimize Z = A + B
E)Maximize Z = A/45B + B/50A
Q2) Minimizing the amount of scrap material generated by cutting steel,leather or fabric from a roll or sheet of stock material is one kind of problem that cannot be solved by linear programming.
A)True B)False
Q3) The objective function in a linear programming model can be nonlinear. A)True B)False
Q4) What is a "shadow price"?
Q5) What is the shadow price of a non-binding constraint? Why is this so?
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Chapter 22: Learning Curves
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Q1) Describe an example of industrial learning where learning curve analysis might be useful?
Q2) Which of the following computational methods are used to calculate learning curve statistics?
A)Simple compounding
B)Exponential smoothing
C)Logarithms
D)Calculus
E)Negative recursive multiplication
Q3) The general guidelines provided in the textbook on improving individual learning based on learning curves includes which of the following?
A)Use a cumulative improvement factor
B)Use a unit improvement factor
C)Do one or very few jobs at a time
D)Explaining learning curve logarithm analysis to workers
E)Avoid feedback until the job is complete
Q4) If a person performing a task has been achieving an 85 percent learning curve and if it took 1 minute to produce the first unit,what will be the total time to produce 1,000 units?
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Chapter 23: Job Design Work Measurement
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Q1) Employees should be able to exercise some discretion and decision making in doing their work.
A)True
B)False
Q2) If the normal time for a job is 15 minutes and the allowances for the job include 10 percent for personal needs,5 percent for unavoidable work delays and 3 percent for work fatigue,which one of the following comes closest to the standard time for this job?
A)10 minutes
B)15 minutes
C)18 minutes
D)24 minutes
E)35 minutes
Q3) Work measurement can be used to determine how physically hard the work should be to be performed by labor.
A)True
B)False
Q4) The text discusses eight current trends that are affecting job design decisions.What are they?
Q5) What are the four basic methods for measuring work and setting standards?
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Chapter 24: Waiting Line Analysis
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Q1) Arrival characteristics in a queuing problem include the length of the queue.
A)True
B)False
Q2) Which of the following is not a suggestion for managing queues presented in the textbook?
A)Train your servers to be friendly
B)Segment the customers
C)Determine an acceptable waiting time for your customers
D)Inform your customers of what to expect
E)Encourage customers to come during slack periods
Q3) When arrivals occur in a purely random fashion at a service facility,the distribution of the number of arrivals per unit of time forms which kind of distribution?
Q4) The customer arrivals in a queuing system come almost exclusively from infinite populations.
A)True
B)False
Q5) Getting a flu shot from the one campus nurse that is on duty might involve standing in which type of queuing line structure?
Q6) In what ways can management influence the arrival patterns of waiting lines?
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Chapter 25: Process Capability and Spc
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Q1) You have just used the capability index (C<sub>pk</sub>)formulas to compute the two values "min [1,1]".Which of the following is the proper interpretation of these numbers?
A)The true capability index value is exactly 1
B)The mean of the production process has shifted to the left of the design limits
C)The mean of the production process has shifted to the right of the design limits
D)The mean has not shifted at all
E)None of the above
Q2) An example of assignable variation in a production system may be that workers are not identically trained.
A)True
B)False
Q3) The value for "z" used in quality control charts is based on the degree of confidence you want to have in the resulting UCL and LCL values.
A)True
B)False
Q4) All else being equal,how large is the effect of lot size on sample size?
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Chapter 26: Simulation
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Q1) Which of the following are not viewed as advantages of simulation in operations management decision making?
A)Simulations are easy to run and easy to explain to upper management
B)Time can be compressed
C)Simulations do not disrupt ongoing activities of the real system
D)Simulations can be used to analyze transient conditions
E)Developing a simulation model can lead to better understanding of the real system
Q2) Run length and run time are the same thing.
A)True
B)False
Q3) As stated in the textbook,there are five different categories of probability distributions that can be used for a simulation study.
A)True
B)False
Q4) What two kinds of probability distributions can be used in a simulation?
Q5) In a simulation model time cannot be advanced by variable time increments. A)True B)False
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