Logistics Management
Midterm Exam
Course Introduction
Logistics Management explores the strategies and processes involved in the efficient flow and storage of goods, services, and information from origin to consumption. The course examines key concepts in supply chain integration, inventory control, transportation, warehousing, order fulfillment, and logistics technology. Students will analyze real-world case studies to understand problem-solving in logistics, the impact of globalization, sustainability in logistics processes, and the role of information systems. Emphasis is placed on developing skills for optimizing operations, reducing costs, and enhancing customer satisfaction within a competitive business environment.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) Marketing can always meet the customer's needs.
A)True
B)False
Answer: False
Q2) While customers and service organizations interact directly, customers and manufacturers interact
Answer: Through service organizations like distributors, wholesalers, and retailers.
Q3) What is a concept that takes a total system approach to creating efficient operations?
A) lean systems
B) enterprise resource planning
C) customer relationship management
D) management science
E) management information systems
Answer: A
Q4) Manufacturers often provide services like
Answer: Shipping, helping customers use products, repairs, replacement parts, warranty service, and credit.
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) Each day a firm produces 50 products worth $40 each. Raw materials cost per unit are $12. The firm uses 4 workers on an eight-hour shift earning $10 per hour each. What is the multifactor productivity ratio?
A) 1.82
B) 0.77
C) 3.16
D) 0.12
E) 2.17
Answer: E
Q2) For what entities can productivity be measured?
Answer: individuals, departments, organizations, industries, or even countries
Q3) Technology should be acquired because:
A) the new technology is fun
B) the new technology keeps the employees happy
C) the new technology doesn't cost very much
D) the new technology always improves productivity
E) the new technology supports the company's chosen competitive priorities
Answer: E
Q4) A business strategy is like an explorer's ________________________.
Answer: compass
Page 4
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) If a firm has fixed costs of $250,000, a market-based selling price of $50 per unit, and it expects to sell 20,000 units, how low must its variable costs be to break even?
Answer: $37.50 (VC= SP - F/ Q<sub>BE</sub>) = $50 - $250,000 /20,000) = $37.50/unit)
Q2) What type of machine is controlled by a computer and can do a variety of tasks, such as drilling, boring, or turning parts of different sizes and shapes?
A) numerically controlled
B) variable turning
C) flexible driven
D) non-calculating
E) next component
Answer: A
Q3) Analyzing customer preferences is an ongoing process.
A)True
B)False
Answer: True
Q4) How efficient was a process whose Standard output = 27 while Actual output = 24?
Answer: Efficiency = Actual output / Standard output = 24 / 27 0.889.
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Chapter 4: Supply Chain Management
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Sample Questions
Q1) Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:
A) a tier one supplier.
B) a tier two supplier.
C) a tier three supplier.
D) a tier four supplier.
E) not in the supply chain.
Q2) The tier one, tier two, and tier three supplier designations are based upon whom the suppliers are providing materials or services to.
A)True
B)False
Q3) Shipments should spend less than 24 hours in a crossdock. A)True
B)False
Q4) Partnerships between supplier and purchaser are easier to develop when there is (are) ______________________ supplier(s).
Q5) List some benefits derived from E-commerce.
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Chapter 5: Total Quality Management
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Sample Questions
Q1) Pareto analysis is a technique used to identify quality problems based on their degree of importance.
A)True
B)False
Q2) Warranty claims, customer complaints, and costs of litigation are examples of __________ costs.
A) Internal failure
B) External failure
C) Appraisal
D) Prevention
E) Replacement
Q3) A cause-and-effect diagram is also referred to as a Taguchi diagram.
A)True
B)False
Q4) Which of the Malcolm Baldrige Award criteria is allocated the most points?
A) leadership
B) information and analysis
C) human resource focus
D) process management
E) business results
Page 7
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) Given a sample size of 2, the lower limit for the R-chart is 0.
A)True
B)False
Q2) Descriptive statistics are used to describe quality characteristics and relationships. A)True
B)False
Q3) According to the text, what percent of defects are consumers generally willing to accept?
A) 1-2%
B) 2-3%
C) 3-4%
D) 4-5%
E) 5-6%
Q4) A process chart is a
A) graph that shows how the population was evaluated
B) graph of the population failures
C) graph that shows whether a sample of data falls within assignable causes
D) graph that show whether a sample falls within the common or normal range
E) table showing final inspection results
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Chapter 7: Just-In-Time and Lean Systems
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Q1) Consider a workstation that can process 1060 units per hour. It takes 15 minutes to receive an order from the previous station. The container size is 20 units. The factory sets safety stock at 20 percent of demand during lead time. How many kanbans are needed for the workstation?
Q2) Three basic elements work together to complete a JIT system: just-in-time manufacturing, total quality management, and
A) Quality circles
B) Pull production
C) Minimizing inventory
D) Respect for people
E) Full utilization of capacity
Q3) Discuss why implementation of a JIT will not start and end in definite time periods.
Q4) Unlike JIT traditional quality control systems use
A) quality circles
B) quality plans
C) control charts
D) acceptable quality levels
E) quality applications
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Chapter 8: Forecasting
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Sample Questions
Q1) What is a correlation coefficient?
Q2) What is the exponential smoothing formula?
Q3) Which of the following is not typically done jointly by CPFR trading partners?
A) set forecasts
B) plan production
C) replenish inventories
D) raise capital
E) evaluate their success in the marketplace
Q4) What are the 9 steps utilized in the most complete form of CPFR?
Q5) "Inside information" is most likely garnered through which of the following forecasting methods?
A) exponential smoothing
B) seasonal indexes
C) naïve
D) Delphi
E) multiple regression
Q6) Statistical packages such as SPSS, SAS, and Minitab, are types of forecasting software.
A)True
B)False
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) A facility location factor that is important for both service and manufacturing organizations is locating close to ________________________.
A) labor supply
B) sources of transportation
C) suppliers
D) warehouses
E) natural resources
Q2) A focused factory is one that ____________________.
A) produces many products with options
B) is small and highly specialized
C) has a large number of management specialists
D) is vertically integrated
E) is located at the center of demand
Q3) When evaluating location alternatives the firm should look at
A) only qualitative factors
B) only quantitative factors
C) both qualitative and quantitative factors
D) weighted average values
E) decision support models only
Q4) Discuss why marketing is important in making capacity decisions.
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Chapter 10: Facility Layout
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Sample Questions
Q1) Suppose that an assembly line consists of two stations. Station 1 involves three tasks, taking 40 seconds, 20 seconds, and 30 seconds, respectively. Station 2 involves one task that takes 80 seconds. Compute the efficiency and balance delay of the assembly line.
Q2) Which of the following is more like a product layout as compared to a process layout?
A) Resources used are general purpose.
B) Facilities are less capital intensive.
C) Products cannot be easily added or deleted from the existing product line.
D) Space requirements for inventory storage are higher.
E) Scheduling resources is less challenging.
Q3) A predecessor can be worked in parallel with a successor.
A)True
B)False
Q4) Approximately how much of the U.S. workforce works in an office environment?
A) 10%
B) 25%
C) 50%
D) 75%
E) 90%
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Chapter 11: Work System Design
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Sample Questions
Q1) Typical work elements that occur in many jobs include all except which of the following?
A) insert something
B) tighten something
C) position an item
D) figure out the instructions
E) reach for materials
Q2) The first unit of a product took 80 hours to complete. The firm plans to produce 10 units in the first month and 12 units in the second month. If a 75% learning curve is expected, how many hours will the firm use to work on the product during the second month?
A) 960.0 hours
B) 505.2 hours
C) 751.0 hours
D) 447.1 hours
E) 303.9 hours
Q3) What are the ways that standard times can help in planning and scheduling?
Q4) What are the steps involved when a time study analyst uses standard elemental times?
Q5) Studying the time it takes to do a job is called __________________.
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Chapter 12: Inventory Management
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Sample Questions
Q1) What is the formula for calculating the maximum inventory level?
A) Imax = H(1-d/p)
B) Imax = Q(1-d/p)
C) Imin = Q(1-s/p)
D) Imax = Q(1-d/s)
E) Imin = Q(1-d/h)
Q2) In a two-bin system, what does the quantity in the second bin represent?
A) the EOQ
B) the EPQ
C) demand during replenishment lead time
D) the quantity in the first bin
E) safety stock
Q3) The reorder point for a product that is delivered two days after an order is placed and whose average daily demand is 100 is __________________.
Q4) What does WIP stand for?
Q5) What is another name for speculative inventory?
Q6) What are the characteristics of a single-period inventory model?
Q7) Any inventory turnover less than 4 is considered to be poor performance.
A)True
B)False
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) ___________________ is an important advantage of level production plans.
Q2) Calculate the total cost to meet the demand using a chase production plan with overtime. Once overtime is approved the workers are on the job 12 hours each day for the full period.
A) $72,960
B) $73,460
C) $73,660
D) $76,800
E) $77,175
Q3) What are the disadvantages for firing permanent employees?
Q4) Which of the following is not typical of overtime?
A) 50% wage premium
B) quality may decrease
C) productivity decreases
D) workers' output rate increases
E) cost of labor per unit increases
Q5) The comparison of aggregate plans is difficult when they produce different quantities and have different ending inventories.
A)True
B)False
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Chapter 14: Resource Planning
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Sample Questions
Q1) ERP and e-commerce systems should not interface with each other.
A)True
B)False
Q2) In MRP, the starting points for each part and material needed to accomplish the master production schedule are the ___________________.
A) net requirements
B) gross requirements
C) planned releases
D) scheduled receipts
E) planned receipts
Q3) The company forecasts dependent demand based on independent demand input.
A)True
B)False
Q4) A computer-based information system designed to manage dependent demand inventory is _____________.
A) manufacturing resources planning
B) multifunctional requirements planning
C) material relationships planning
D) material requirements planning
E) manufacturing requirements planning
Page 16
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Chapter 15: Scheduling
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Sample Questions
Q1) Job A is due on day 15, and it is finished on day 12. What is its lateness?
A) -3
B) 0
C) 3
D) both -3 and 3
E) none of these answer choices are correct
Q2) The transfer batch should always equal the process batch.
A)True
B)False
Q3) If all jobs are available at the same time, their flow time is the same as their
Q4) Using the S/RO rule, which of the following jobs will be scheduled first?
A) the first job that arrives at a work center
B) the job with the least slack per remaining operations
C) the job with the highest slack per remaining operations
D) the job with the smallest ratio of time remaining until due date to process time remaining
E) the job with the largest ratio of time remaining until due date to process time remaining
Q5) The time a job spends in the shop is called its __________________.
Page 17
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Chapter 16: Project Management
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Sample Questions
Q1) What are the benefits of network planning techniques?
Q2) Consider a project activity that has an optimistic time of 3 weeks, a most likely time of 10 weeks, and a pessimistic time of 25 weeks. What is the expected time for that activity?
Q3) What is involved in the approach for crashing projects?
Q4) Removing safety time from the individual activities and putting the total safety time at the end of the critical path creates a(n) ___________________.
A) project safety net
B) project buffer
C) overconfident project manager
D) activity shortage
E) larger number of activities
Q5) A feeder buffer protects a ______ path from delays in a __________.
A) shortest, buffer overflow
B) noncritical, critical path
C) critical, noncritical path
D) critical, longest variance
E) noncritical, longest variance
Q6) List and briefly describe the phases in the project life cycle.
Page 18
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Chapter 17: Spreadsheet Modeling: An Introduction
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Sample Questions
Q1) What are the most common useful numerical formats?
A) date, currency, and percentage
B) date, time, and custom
C) time, custom, and number
D) number, custom, and percentage
E) number, currency, and percentage
Q2) The benefits of including a particular factor in a model must be weighed against the decreased complexity of the model resulting from its inclusion.
A)True
B)False
Q3) In Excel, what are the three arguments that a MATCH function takes?
A) Lookup_value, Match_type, and Lookup_array
B) Lookup_value, Match_type, and Array
C) Lookup_value, Column_num, and Lookup_array
D) Array, Row_num, and Column_num
E) Lookup_array, Row_num, and Column_num
Q4) Describe five main types of models.
Q5) What are the six steps to developing an effective spreadsheet model?
Q6) Models transform inputs into ________________________
Q7) Describe the difference between the MAX and MIN Excel functions.
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) Riker Co. is considering which of four different projects to undertake in order to maximize its net present value (NPV). Define X<sub>i</sub> as a binary (0-1) variable that equals 1 if project i is undertaken and 0 otherwise, for i = 1,2,3,4. The NPV and required capital (in millions) for each project are listed below.
Project Net Present Value Capital Required
1 60 7
2 50 10
3 40 6
4 20 3
Which of the following represents the constraint(s) stating that project 1 must be undertaken and at least one of the other projects must be undertaken?
A) X<sub>1</sub> + X<sub>2</sub> 1, and X<sub>1</sub> + X<sub>3</sub> 1, and X<sub>1</sub> + X<sub>4</sub> 1
B) X<sub>1</sub> 1, and X<sub>2</sub> + X<sub>3</sub> + X<sub>4</sub> 1
C) X<sub>1</sub> + X<sub>2</sub> 1, and X<sub>1</sub> + X<sub>3</sub> 1, and X<sub>1</sub> + X<sub>4</sub> 1
D) X<sub>1</sub> 1, and X<sub>2</sub> + X<sub>3</sub> + X<sub>4</sub> 3
E) X<sub>1 </sub>+ X<sub>2</sub> + X<sub>3</sub> + X<sub>4</sub> 2
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) Which of the following waiting line systems best describes a drive-through service at a fast-food restaurant, where the order is placed at the first service point, the order is paid for at the second service point, and the food is picked up at the third service point?
A) single-server, single-phase
B) single-server, multi-phase
C) multi-server, single-line, single-phase
D) multi-server, multi-line, single-phase
E) multi-server, multi-phase
Q2) Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at an average rate of 60 per hour, and the average (exponentially distributed) service time is 45 seconds per customer. What is the average number of customers waiting in line?
Q3) Waiting line models typically assume that service times are represented by the exponential distribution.
A)True
B)False
Q4) Waiting line models are important to a company because they directly affect customer service _________.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Sample Questions
Q1) What data are added to create an extended MPS record that allows the firm to compute available-to-promise units?
A) time period (e.g. weeks)
B) forecast
C) customer orders
D) projected available
E) MPS
Q2) In an MPS record, the forecast row shows the forecasted supply for the product.
A)True
B)False
Q3) Which of the following is not a correctly stated step of the CPOPF method?
A) Determine the appropriate planning factors using forecasted demand data.
B) Multiply the MPS quantities by the appropriate planning factor.
C) Sum capacity requirements for each resource by time period.
D) Allocate capacity requirements to individual work centers based on historical percentages.
E) Evaluate the workload at each resource to validate MPS feasibility.
Q4) In the current period, Available-to-Promise adds ________________________ to the formula used for future periods.
Q5) Discuss the Master scheduler responsibility.
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