Logistics Management Practice
Questions
Course Introduction
Logistics Management explores the planning, implementation, and control of the efficient flow and storage of goods, services, and related information from the point of origin to the point of consumption. This course examines key logistics functions, including transportation, inventory management, warehousing, material handling, order fulfillment, and distribution. Students learn about contemporary logistics strategies, technology integration, supply chain coordination, and the impact of globalization on logistics operations. Through case studies and real-world applications, the course prepares students to address logistical challenges and optimize processes to enhance organizational effectiveness and customer satisfaction.
Recommended Textbook
Introduction to Operations and Supply Chain Management 5th Edition by Cecil B. Bozarth
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Chapter 1: Introduction to Operations and Supply Chain Management
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Sample Questions
Q1) There is no need for an organizational interface between the finance function and the operations and supply chain management function.
A)True
B)False
Answer: False
Q2) Which job title would be given to someone responsible for planning and controlling production in a manufacturing setting?
A)supply chain manager
B)production manager
C)supplier development manager
D)purchasing manager
Answer: B
Q3) Which of the following is primarily a supply chain management decision?
A)from whom to purchase materials
B)how many of each item should be produced
C)the mix of labor skill and automation
D)the location of the plant
Answer: A
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Chapter 2: Operations and Supply Chain Strategies
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Sample Questions
Q1) Tangible resources are infrastructural elements in an organization.
A)True
B)False
Answer: False
Q2) What are three structural and three infrastructural decision categories in operations and supply chain management? Pick one from each category and provide an example of a choice that an operations and supply chain manager might make. Answer: The authors identify capacity, facilities and technology as the structural decision categories. The authors identify five infrastructural decision categories - organization, sourcing and purchasing process decisions, planning and control, business processes and quality management, and product and service development. Examples will vary; for structural decisions, the manager might decide on building size or the number of locations for capacity; the degree of centralization for facilities; and the level of automation for technology. In the infrastructural category, the decision pairs include organization-compensation/reward system, sourcing-supplier selection/screening, planning-forecasting, business processes-six sigma, product/service development-supplier roles.
Q3) A firm's ________ explains why an organization exists.
Answer: mission statement
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Page 4
Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Sample Questions
Q1) Refer to the scenario above. How many workstations must be added to increase the output rate to one unit per minute?
D)4
Answer: C
Q2) Service positioning is based on the three axes of contact, customization, and cost.
A)True
B)False
Answer: False
Q3) ________ gets its name from the fact that items are moved through the different manufacturing steps in groups.
Answer: Batch manufacturing
Q4) No manufacturing process can be best at everything.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Business Processes
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Sample Questions
Q1) It takes one day for Peter Gibbons to complete a TPS report and attach the cover sheet. During that day, Peter spends about 15 minutes a day performing actual work and the other 7 hours and 45 minutes spacing out. Which of the following statements is correct?
A)Peter's cycle time is 7 hours and 30 minutes.
B)Peter's efficiency is 25%.
C)Peter's productivity is 8 hours per TPS report.
D)Peter's percent value-added time is just over 3%.
Q2) Describe continuous improvement and business process reengineering and compare their advantages and disadvantages in relation to each other.
Q3) ________ is a process improvement philosophy that results in small, incremental changes while ________ is a process improvement philosophy that results in dramatic organizational changes.
Q4) Your university sends a contingent of top-ranking officials to Las Vegas hotels to study ways to improve dormitory living conditions. This is an example of process benchmarking.
A)True
B)False
Q5) Level two of the SCOR model divides SCM activities into ________.
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Chapter 5: Managing Quality
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Sample Questions
Q1) An R chart is used to track how much the individual observations within a sample vary.
A)True
B)False
Q2) Floyd Electric is fabricating flanges for a new electrical motor. The flange is to be 25 millimeters in diameter with an upper tolerance limit of 26.5 millimeters and a lower tolerance limit of 23.5 millimeters. Bill Floyd took a sample consisting of ten flanges, measured the diameter and recorded the observations in the table. \[\begin{array} { | l
25.69 & 25.58 & 24.78 & 24.94 & 24.87 & 24.63 & 25.70 & 25.52 & 24.95 & 24.91 \end{array}\] What is Floyd Electric's process standard deviation?
A)0.15
B)0.17
Q3) Taguchi's quality loss function runs counter to the notion that a product falling within tolerance limits is acceptable.
A)True B)False
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Page 7
Chapter 6: Managing Capacity
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Sample Questions
Q1) Saul Goodman represents several clients and bills by the hour at a reasonable $500 per hour. He forgot to record the time it took to complete each activity, but he knows his eight-hour day was spent representing 13 clients involved in one high profile case. He also remembers that Walt told him once that his learning curve percentage was 80%. How many hours should Saul bill his first client?
A)one hour eight minutes and forty five seconds
B)one hour two minutes and thirty six seconds
C)fifty six minutes and twenty eight seconds
D)fifty minutes and five seconds
Q2) A fiscally conservative firm is more likely to adopt a match capacity strategy than any other capacity strategy.
A)True
B)False
Q3) The maximum output capability of a system, allowing for no adjustments for preventive maintenance or unplanned downtime is the ________.
Q4) The ________ capacity strategy is better positioned to avoid adding extra costs as long as possible.
Q5) In waiting line theory, a customer service attendant is a(n)________.
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Chapter 6: S: Advanced Waiting Line Theory and Simulation
Modeling
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Sample Questions
Q1) Barber College is the best deal in town! For only $5, you can get a shampoo and cut by any one of four untrained stylists completed in 7.5 minutes on average. Perhaps this is why customers show up on average two minutes apart (both arrival times and service times are exponentially distributed). On average, how many customers are waiting in line?
A)9
B)11
C)13
D)15
Q2) The department chair is out of town at a conference and you, as the assistant department chair, find yourself besieged by dozens of students needing permission to get into a very popular (but closed)class. Student arrivals are governed by the Poisson distribution with a mean of 5 minutes. Telling the students that they can't get into the closed class takes about 3 minutes, and this average is exponentially distributed. About how long does it take a student to wait in line and receive your valuable service?
A)0.125 minutes
B)0.075 hours
C)4.5 minutes
D)7.5 minutes
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Chapter 7: Supply Management
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Sample Questions
Q1) Authorization to a supplier to deliver a product is done through a(n)________, and released using the form of technology known as ________.
Q2) This table contains the performance criteria and scores (larger numbers are better)for four potential suppliers to Los Pollos Hermanos. Evaluate the data and identify the BEST source for Los Pollos Hermanos. \[\begin{array} { | l | c | c | c | c | }
\hline \text { Performance Dimension } & \text { Company W } & \text { Company P } & \text { Company D } & \text { Company G } \\
\hline \text { Purity } ( \mathrm { W } = 0.5 ) & 5 & 4 & 2 & 5 \\
\hline \text { Cost } ( \mathrm { W } = 0.2 ) & 4 & 3 & 5 & 2 \\
\hline \text { Stability } ( \mathrm { W } = 0.2 ) & 2 & 1 & 4 & 5 \\
\hline \text { Speed } ( \mathrm { W } = 0.1 ) & 3 & 5 & 5 & 2 \\
\hline
\end{array}\]
A)Company W
B)Company P
C)Company G
D)Company D
Q3) Define outsourcing and discuss its advantages and disadvantages.
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Chapter 8: Logistics
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Sample Questions
Q1) Packaging is a logistics activity.
A)True
B)False
Q2) The cost of the donuts for the ISOM department's fall meeting was $73.11 and the delivery and warehousing service was another $26.89, bringing the ________ to an even $100.
Q3) The landlord's favorite place to buy shrimp in New Orleans was the Cajun Seafood market on Claiborne and he did not hesitate to stock up on shrimp when he dropped by the shotgun double house he bought as an investment a few years ago. Sadly, it was 685 miles one way to visit the property and even though gas was available at $1.88 per gallon and the car achieved 25 miles per gallon, it was an expensive and lengthy trip. Therefore he bought the cheapest plane tickets he could muster at $299 round trip and packed a cooler with $12 worth of ice. The shrimp were a bargain at $7.99 per pound for jumbos and he always tried to fit 35 pounds of the crustaceans in the cooler. What is the landed cost of a pound of shrimp?
A)$11.28
B)$16.88
C)$9.80
D)$14.78
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Page 11
Chapter 9: Forecasting
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Sample Questions
Q1) Fed up with her working conditions at the call center, Lisa decides to invest in a state-of-the-art sewing machine and produce limited quantities of her own clothing designs. After a few months of operation, she decides to apply some of the forecasting techniques she mastered in school. Which of these statements about her forecasts is correct?
A)Her forecasts will probably be 100% accurate.
B)Her demand forecasts for a year from now will probably be more accurate than her demand forecasts for three months from now.
C)Her demand forecasts for each style of skirt will be more accurate than her demand forecasts for all skirts.
D)The best way for her to determine the amount of fabric she needs is to forecast it based on her customer orders for each type of skirt.
Q2) The greater the randomness in the model, the greater the number of periods that should be used in a moving average forecast.
A)True
B)False
Q3) Models that predict values based upon some independent factor(s)other than time are ________ forecasting models.
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Page 12
Chapter 10: Sales and Operations Planning Aggregate Planning
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Sample Questions
Q1) A(n)________ limits our ability to increase profits or cut costs by reducing the set of possible solutions in an optimization model.
Q2) What is the purpose of S&OP and what takes place at the strategic, tactical, and detailed planning and control levels?
Q3) A constraint in an optimization modeling approach to S&OP should not allow overscheduling of equipment time.
A)True
B)False
Q4) Sales and operations planning is a necessary task for all companies, but is never a source of competitive advantage.
A)True
B)False
Q5) A(n)________ production plan matches production in each time period with the sales forecast.
Q6) Among strategic, tactical and detailed planning, it is ________ planning that presents managers with the fewest options for altering capacity.
Q7) A(n)________ is a formula that is the goal of an optimization model for S&OP.
Page 13
Q8) How can and why should a firm link S&OP throughout the supply chain?
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Chapter 11: Managing Inventory Throughout the Supply Chain
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Sample Questions
Q1) The order quantity in a periodic review system rises as the on-hand inventory level falls.
A)True
B)False
Q2) Which of these conditions is likely to cause a decrease in the probability of a stockout?
A)higher lead time variance
B)lower lead time
C)higher demand level variance
D)lower service level
Q3) A hospital's biomedical repair shop uses a 4-week periodic system to maintain the inventory on the blood pressure cuff repair parts. They use an average 40 adult arm cuffs with a standard deviation of 6 cuffs during their reorder leadtime. Cuffs aren't the most critical item they carry, but the manager would like to avoid the embarrassment of a stockout at least 95% of the time. What should their restocking level be?
A)40 cuffs
B)46 cuffs
C)50 cuffs
D)52 cuffs
14
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Chapter 12: Managing Production Across the Supply Chain
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Sample Questions
Q1) Given the forecast and booked orders shown in the table, and a beginning inventory of 20, what is the available to promise inventory for the first period? There are no LOT quantity constraints. \[\begin{array} { | l | c | c | c | c | }
\hline \text { Period } & 1 & 2 & 3 & 4 \\
\hline \text { Forecasted Demand } & 200 & 220 & 240 & 200 \\
\hline \text { Booked Orders } & 190 & 80 & 30 & 10 \\
\hline \text { Projected ending inventory } & & & & \\
\hline \text { Master production schedule } & & & & \\
\hline \text { Available to Promise } & & & & \\
\hline
\end{array}\]
Q2) What organizational disciplines are required in order for an organization to successfully run a material requirements planning system?
Q3) What are three advantages of using an MRP system?
Q4) Explain all of the information that is provided by a master schedule.
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Chapter 12: S: Supply Chain Information Systems
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Sample Questions
Q1) A supply chain information system that links a company with an entity upstream is called a(n):
A)customer relationship management system.
B)supplier relationship management system.
C)internal supply chain management system.
D)business process modeling tool.
Q2) All information systems are computer-based.
A)True
B)False
Q3) An organization can use ________ as a repository to access documents or other files from anywhere in the world whenever they are needed.
Q4) SAP and Oracle are ERP vendors.
A)True B)False
Q5) Computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making are called ________.
Q6) The greatest user discretion is found at the ________ level of supply chain information system use.
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Chapter 13: Jitlean Production
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Sample Questions
Q1) When using MRP and kanban together:
A)the control capabilities of MRP are used instead of those from kanban.
B)the planning capabilities of kanban are used instead of those from MRP.
C)the demand rate should be variable in order to derive the greatest benefit from the MRP portion of the system.
D)this information is used to recalculate the number of production kanbans needed.
Q2) Two announcers are used to read names at the semiannual commencement exercises held at a regional university in America's heartland. All students have their names read then walk briskly to the president who shakes their hand and offers them an empty diploma cover until such time that all financial obligations to the university have been met. The president greets about 640 students in an eight-hour day. The diploma covers come in boxes of 24 and it takes one hour to carry one from the receiving dock to the field house where the ceremony is held. The president likes to keep things moving, so he has requested a 50% safety factor. How many containers are needed?
A)two
B)three
C)four
D)five
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Chapter 14: Managing Projects
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Sample Questions
Q1) An expectation that a new building's foundation would be poured and cured by the end of the year is an example of a(n):
A)activity.
B)scope.
C)milestone.
D)precedence.
Q2) A forward pass through a network is used to determine the earliest start times and earliest finish times for each project activity.
A)True
B)False
Q3) Refer to the scenario above. Develop a Gantt chart for this project and indicate the finish times for each activity.
Q4) Refer to the scenario above. Which of these statements is BEST?
A)Only four of these activities have zero slack.
B)The late finish of D minus the latest finish of C is less than the slack of B.
C)B's latest start plus its slack equals F's latest finish.
D)The sum of the latest start times for activities A through E is less than the sum of the latest start times for F and G.
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Chapter 15: Developing Products and Services
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Sample Questions
Q1) What role do supply chain partners play in product and service design?
Q2) Which of these features would contribute to a design for the environment (DFE)program?
A)using one model of fan motor across the entire product line that uses fan motors
B)using more reliable parts that are in areas that are difficult to access C)standardizing on two or three fasteners where there were ten different kinds before D)using recyclable parts whenever possible
Q3) In the planning phase, the operations and supply chain function develops initial cost estimates and identifies key supply chain partners.
A)True
B)False
Q4) New product designs are quickly copied so there is virtually no advantage to new products.
A)True
B)False
Q5) The relationship between product functionality and product cost is quantified as
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