Logistics Management
Pre-Test Questions
Course Introduction
Logistics Management explores the strategies, processes, and technologies used to efficiently manage the flow of goods, services, and information from the point of origin to the final customer. The course covers key concepts including transportation management, inventory control, warehousing, procurement, and distribution systems. Students will learn to analyze logistics networks, optimize supply chain performance, and understand the critical role of logistics in global trade and e-commerce. Practical case studies and real-world scenarios are employed to demonstrate solutions for minimizing costs and improving customer service in dynamic business environments.
Recommended Textbook
Purchasing and Supply Chain Management 5th Edition by Robert M. Monczka
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20 Chapters
1411 Verified Questions
1411 Flashcards
Source URL: https://quizplus.com/study-set/3207
2
Chapter 1: Introduction to Purchasing and Supply Chain Management
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46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/63491
Sample Questions
Q1) In the manufacturing sector,the percentage of purchases to sales averages 55%.
A)True
B)False Answer: True
Q2) The key to the success of any company is the quality of its employees.
A)True
B)False
Answer: True
Q3) Competition today is no longer between firms; it is between the supply chains of those firms.
A)True
B)False
Answer: True
Q4) Sophisticated customers,both industrial and consumer,no longer talk about price increases; they demand price reductions.
A)True
B)False
Answer: True
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Chapter 2: The Purchasing Process
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77 Verified Questions
77 Flashcards
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Sample Questions
Q1) When using negotiating a ____,it is necessary to include a/an ____ that allows a buyer to terminate the contract in the event of persistently poor quality,delivery problems,and the like.
A) spot buy contract....evergreen clause
B) RFP....RFQ
C) purchase order....purchase agreement
D) blanket purchase order....escape clause
E) online catalog....RFP
Answer: D
Q2) All the following are expected growth areas in e-commerce except ____.
A) transmitting purchase orders to suppliers
B) submitting requests for quotes to suppliers
C) placing orders with suppliers
D) making electronic funds transfers to suppliers
E) submitting written check requests to accounts payable
Answer: E
Q3) The responsibility for concealed damage is often simple and easy to detect.
A)True
B)False
Answer: False
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Chapter 3: Purchasing Policy and Procedures
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) ____ refer(s)to standard operating procedures along with any rules and regulations.
A) Union contracts
B) Rules of action
C) Government regulations
D) Policy
E) OSHA rules
Answer: B
Q2) Which of the following is not one of the principles that support positive buyer-supplier relationships?
A) Treating suppliers fairly and with integrity.
B) Providing prompt payment to suppliers.
C) Encouraging suppliers to submit innovative ideas with joint sharing of benefits.
D) Establishing a fair process to award purchase contracts.
E) Providing engineering and manufacturing technical assistance.
Answer: E
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Chapter 4: Supply Management Integration for Competitive Advantage
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66 Verified Questions
66 Flashcards
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Sample Questions
Q1) Experience reveals that cross-functional sourcing teams are usually part-time/continuous assignments,making the use of sourcing teams a challenging way to work.
A)True
B)False
Q2) In collaboration,the relationship is bilateral; both parties have the power to shape its nature and future direction over time.
A)True
B)False
Q3) ____ occurs when a team does not complete its task in the best or most efficient manner or members are not motivated to employ their resources to create a successful outcome.
A) Groupthink
B) KPI
C) Collaboration
D) Process loss
E) Synergy
Q4) Suppliers are never an invaluable source of ideas for process improvement.
A)True
B)False
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Chapter 5: Purchasing and Supply Management Organization
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71 Verified Questions
71 Flashcards
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Sample Questions
Q1) Purchasing personnel cannot become experts in all categories of spend.
A)True
B)False
Q2) Progressive organizations recognize that a need for expeditors indicates that suppliers are not performing as required,or that suppliers are not receiving realistic or stable material release schedules.
A)True
B)False
Q3) The mission of a decentralized purchasing structure is to facilitate the consolidation of similar buying requirements and standardize buying processes at the various facilities.
A)True
B)False
Q4) A reason for decentralization is a reduction in duplication of effort.
A)True
B)False
Q5) Strategic responsibilities lack the immediacy of tactical duties and as a result are often ignored.
A)True
B)False
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Chapter 6: Supply Management and Commodity Strategy Development
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74 Verified Questions
74 Flashcards
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Sample Questions
Q1) A ____ is an annual review of a firm's entire set of purchases.
A) cost analysis
B) price analysis
C) make-buy analysis
D) technology roadmap
E) spend analysis
Q2) A preferred supplier designation indicates that the selected supplier should receive the business for a critical commodity under most conditions.
A)True
B)False
Q3) ____ is a tool to structure and segment the supply base and is used as a means of classifying suppliers into one of four types.
A) The supplier evaluation scorecard
B) The portfolio analysis matrix
C) Make-buy analysis
D) Price analysis
E) Value chain analysis
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Page 8
Chapter 7: Supplier Evaluation and Selection
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68 Verified Questions
68 Flashcards
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Sample Questions
Q1) Visiting the actual supplier facility provides the most complete way to ensure an accurate assessment of the supplier.
A)True
B)False
Q2) Which of the following is not an example of a question that should be asked when evaluating a supplier's production scheduling and control systems?
A) Does the supplier use MRP to ensure the availability of required components?
B) What lead time does the supplier's production scheduling and control system require?
C) What is the supplier's on-time delivery performance history?
D) Does the supplier's production scheduling system support a purchaser's JIT requirements?
E) Does the supplier have CAD capability?
Q3) Only marginal suppliers should receive placement on a preferred supplier list. A)True
B)False
Q4) International sourcing is generally less complex than domestic buying. A)True
B)False
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9
Chapter 8: Supplier Quality Management
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) Most suppliers are afraid to challenge specifications for fear of losing the bid.
A)True
B)False
Q2) A buyer cannot realistically expect the highest levels of supplier performance when the supplier must respond to frequent or short lead time changes.
A)True
B)False
Q3) Which of the following is not one of Deming's 14 points?
A) Institute training.
B) Drive out fear.
C) Optimize the efforts of individuals working alone.
D) Stop making decisions purely on the basis of price.
E) Improve constantly and forever.
Q4) Buyers should focus only on the supplier's physical output,never on the supporting systems and processes that created the output.
A)True
B)False
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10
Chapter 9: Supplier Management and Development:
Creating a World-Class Supply Base
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84 Verified Questions
84 Flashcards
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Sample Questions
Q1) Certain risks,such as those arising from war,piracy,and losses attributable to delays in transit are generally covered without the need for additional insurance premiums.
A)True
B)False
Q2) Overall reduction in material usage can be accomplished through engineering design changes and reuse and recycle programs.
A)True
B)False
Q3) Short-term purchase contracts that award small volumes of business to multiple suppliers decrease production costs and provide incentive for individual supplier investments in process improvement.
A)True
B)False
Q4) During the early phases of supply base rationalization and optimization,the process usually results in an absolute reduction in the total number of suppliers.
A)True
B)False
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Chapter 10: Worldwide Sourcing
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) Purchasing's role in countertrade is not as visible as marketing's role.
A)True
B)False
Q2) If the purpose of buying currency contracts is to realize a net gain,then the purchaser is ____ and not ____.
A) hedging....speculating
B) speculating....hedging
C) speculating....financing
D) hedging....financing
E) Purchasers do not get involved in managing currency fluctuation as this is solely a finance department activity.
Q3) ____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.
A) Switch trading
B) Barter
C) Compensation trading
D) Counterpurchase
E) Buy-back
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12
Chapter 11: Strategic Cost Management
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) A major benefit of multiple sourcing is a lower price that results from the higher volumes offered to a supplier.
A)True
B)False
Q2) In the ____,the supplier simply takes its estimate of costs and adds a markup percentage to obtain the desired profit.
A) margin pricing model
B) cost markup pricing model
C) total cost analysis model
D) penetration pricing model
E) revenue pricing model
Q3) ____ include all costs incurred when a product,service,or capital equipment reaches the end of its useful life,net of amounts received from the sale of remaining product or equipment (salvage value).
A) Net present value costs
B) Usage costs
C) Purchase price
D) End of life costs
E) Opportunity costs
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Page 13
Chapter 12: Purchasing and Supply Chain Analysis: Tools and Techniques
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51 Verified Questions
51 Flashcards
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Sample Questions
Q1) In a PERT network,the difference between the ____ and the ____ is slack.
A) early start....late finish
B) late start....early finish
C) early start....early finish
D) late start....early start
E) None of these choices.
Q2) Users apply ____ to projects where there is a single known time for each activity with no variance,while ____ applies to projects where time estimates are variable or uncertain.
A) Gantt charts....CPM
B) PERT....CPM
C) Gantt charts....PERT
D) CPM...PERT
E) PERT....TCO
Q3) Activities on the critical path will have slack.
A)True
B)False
Q4) Most processes do not cross functional boundaries.
A)True
B)False
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Chapter 13: Negotiation and Conflict Management
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97 Verified Questions
97 Flashcards
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Sample Questions
Q1) During an international negotiation,an interpreter might verbally communicate yet not fully convey the significance of unspoken actions,signals,and customs that may be invisible to the foreign or nonnative negotiator.
A)True
B)False
Q2) ____ means that one party is able to offer something of perceived value to the other party.
A) Referent power
B) Informational power
C) Expert power
D) Coercive power
E) Reward power
Q3) Analyzing the other party requires a thorough assessment of the relative strengths and weaknesses of the parties,as well as the particulars for each individual issue to be negotiated.
A)True
B)False
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Chapter 14: Contract Management
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92 Verified Questions
92 Flashcards
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Sample Questions
Q1) Perhaps the simplest method of resolving a contractual disagreement involves straightforward,face-to-face negotiation between the two parties involved.
A)True
B)False
Q2) To be most effective,cost-based contracts should include cost productivity improvements in order to drive continuous cost reduction over the life of the contract.
A)True
B)False
Q3) In a systems outsourcing situation,acceptance test criteria can only be determined after issuing the contract as actual operating conditions cannot be specified until the system is fully operational.
A)True
B)False
Q4) Purchasers cannot rely on an arbitration clause contained in their forms,particularly if the suppliers' forms do not contain such a clause.
A)True
B)False
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Chapter 15: Purchasing Law and Ethics
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97 Flashcards
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Sample Questions
Q1) The concept of damages in the UCC is based on the remedy of a party being "made whole."
A)True
B)False
Q2) Inventors seeking to expand their patent protection to other countries must file appropriate patent applications in each country in which protection is desired.
A)True
B)False
Q3) ____ is defined as that body of the law that refers to how business firms (parties)enter into contracts with each other,execute contracts,and remedy problems that arise in the process.
A) Civil law
B) Agency law
C) Commercial law
D) All of these choices.
E) None of these choices.
Q4) Copyright is automatically assumed.
A)True
B)False
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Chapter 16: Lean Supply Chain Management
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) The most basic and the easiest inventory-related cost to quantify and track is unit cost.
A)True
B)False
Q2) Production inventory consumes a minor portion of inventory investment.
A)True
B)False
Q3) A logical place to begin when managing inventory investment is to make sure there is agreement between physical and electronic inventory.
A)True
B)False
Q4) From the financial accounting perspective,inventory has historically been considered a current asset.
A)True
B)False
Q5) Shortening the material pipeline in terms of time between suppliers and a buyer can reduce the average amount of inventory in a system.
A)True
B)False
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Chapter 17: Purchasing Services
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93 Verified Questions
93 Flashcards
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Sample Questions
Q1) More effective control of inbound shipment costs usually requires purchasing goods under a shipping designation of FOB destination.
A)True
B)False
Q2) Exempt carriers are highly regulated economically by the Surface Transportation Board.
A)True
B)False
Q3) ____ refers to the accuracy and on-time consistency of the transportation service,arriving neither late nor early.
A) Reliability
B) Capability
C) Accessibility
D) Total cost
E) Speed
Q4) Shipping a high-priced component via air is never a cost-effective option.
A)True
B)False
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Chapter 18: Supply Chain Information Systems and Electronic Sourcing
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57 Verified Questions
57 Flashcards
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Sample Questions
Q1) Increased redundancy of information between files allows different systems to cross-reference and efficiently use the data contained in all files.
A)True
B)False
Q2) A reverse auction is a software tool that extends the tradition bid process to permit suppliers to configure their bids in any number of alternatives ways.
A)True
B)False
Q3) Because MRP and DRP systems are primarily external,an additional electronic linkage to suppliers and customers is not needed.
A)True
B)False
Q4) Users must be able to extract from databases the information that they need to make better supply chain decisions.
A)True
B)False
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Page 20
Chapter 19: Performance Measurement and Evaluation
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) A single,overall productivity measure representing purchasing and supply chain performance is feasible.
A)True
B)False
Q2) Measurement is virtually free.
A)True
B)False
Q3) A ____ is the increase or decrease in cost resulting from a change in purchasing strategy or practice brought about by an individual or a group.
A) cost change
B) cost avoidance
C) target cost
D) target price
E) purchase price variance
Q4) Purchasing and supply chain managers often use the historical approach with effectiveness measures.
A)True
B)False
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Chapter 20: Purchasing and Supply Strategy Trends
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35 Flashcards
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Sample Questions
Q1) Category strategies will become less complex,requiring only internal executive engagement.
A)True
B)False
Q2) Purchasing and supply will be expected to play a growing role in sustainability efforts of the firms,many of which closely involve suppliers.
A)True
B)False
Q3) Competition is no longer between fast and agile and slow firms but rather between big and small firms.
A)True
B)False
Q4) Which of the following is not one of the components of material ordering cycle time that supply chain management practices affect directly?
A) Transmission of requirements to suppliers.
B) Supplier's ordering and manufacturing cycle time.
C) Allocation of manufacturing overhead costs.
D) Delivery from suppliers.
E) Incoming receipt and inspection.
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