Logistics Management
Pre-Test Questions
Course Introduction
Logistics Management focuses on the planning, implementation, and control of the efficient movement and storage of goods, services, and related information from the point of origin to the point of consumption. This course covers key topics such as supply chain management, inventory control, transportation systems, warehousing, material handling, order fulfillment, and logistics strategy. Students will analyze real-world case studies to understand how logistics impacts business operations and customer satisfaction, as well as explore emerging trends like technology integration and sustainability within the logistics sector. By the end of the course, learners will be equipped with practical skills to optimize logistical processes and support organizational objectives.
Recommended Textbook
Foundations of Operations Management 3rd Canadian Edition by Larry P. Ritzman
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Chapter 1: Creating Customer Value through Operations
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Sample Questions
Q1) In business setting,a crucial reason for monitoring is to stay ahead of the competition.
A)True
B)False
Answer: False
Q2) Which of the following is a strategy to gain presence of a firm's business overseas?
A) Negotiation
B) Joint Venture
C) Localization
D) Demand alliance
Answer: B
Q3) Which of the following statements is TRUE?
A) Processes cannot be broken down into subprocesses.
B) A market analysis divides the firm's customers into market segments.
C) Firms can only improve their competitive pricing.
D) An operations strategy is a single initiative for controlling the markets' entrance. Answer: A
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Chapter 2: Supply Chain Management
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Sample Questions
Q1) The most used form of e-purchasing today is electronic data interchange.
A)True
B)False
Answer: True
Q2) The basic purpose of supply chain management is to
A) create an exclusive set of suppliers who will not supply your competitors.
B) link your customers together so that the flow of materials remains under control.
C) synchronize the operations of all suppliers with those of purchasing, production, distribution, and customers.
D) reduce the inventory by proper selection of customers and transportation modes. Answer: C
Q3) ________ is an important point of contact between the firm and its customers. Answer: Customer service
Q4) Describe presourcing.
Answer: A level of supplier involvement in which suppliers are selected early in a products concept development stage and are given significant,if not total,responsibility for the design of certain components or systems.
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Chapter 3: Process Configuration
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Sample Questions
Q1) Resource flexibility helps to absorb the feast-or-famine workloads in individual operations that are caused by low-volume,jumbled routings,and fluid scheduling.
A)True
B)False
Answer: True
Q2) Under which one of the following environments would you opt for a higher degree of resource flexibility?
A) a firm using a flexible flow strategy
B) a firm facing a stable demand
C) a firm using a line flow strategy
D) a firm producing only one product
Answer: A
Q3) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
A)True
B)False
Answer: True
Q4) ________ automation can handle various products through programmability. Answer: Flexible
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Chapter 4: Capacity
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Sample Questions
Q1) Explain the cost and time implications that inventory has for the purposes of process choice.
Q2) Little's Law is the mathematical relationship than computes the average throughput time for items based on ________ inventory and the actual output rate.
Q3) Effective capacity is the maximum output that a process or facility can achieve under ideal conditions.
A)True
B)False
Q4) The first step in the application of the Theory of Constraints (TOC)is to identify the bottlenecks.
A)True
B)False
Q5) The throughput time for a specific item as it moves through a process includes A) operations time.
B) movement time.
C) wait time.
D) all of the above
Q6) Give four principal reasons why economies of scale can occur when output increases.
Page 6
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Chapter 5: Inventory Management
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Sample Questions
Q1) For a given level of annual demand (D),as the lot size Q decreases,both inventory holding costs and ordering or setup costs decrease.
A)True
B)False
Q2) Use the information in Table 5.5.What safety stock level provides a 95 percent cycle-service level?
A) less than or equal to 150 units
B) greater than 150 but less than or equal to 200 units
C) greater than 200 but less than or equal to 250 units
D) greater than 250 units
Q3) Dependent demand items are those items for which demand is influenced by market conditions and is not related to inventory decision for any other item held in stock.
A)True
B)False
Q4) A periodic review system is a system in which an item's inventory position is reviewed periodically rather than continuously.
A)True
B)False
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Chapter 6: Quality and Process Improvement
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Sample Questions
Q1) When should complete inspection be used?
A) when inspection tests are destructive
B) when inspection tasks are monotonous
C) when the cost of product failure is high relative to the inspection costs
D) when quality is a competitive priority
Q2) A product has three components with individual reliabilities of 0.85,0.92,and 0.95.What is the reliability of the product?
A) less than or equal to 0.75
B) greater than 0.75 but less than or equal to 0.80
C) greater than 0.80 but less than or equal to 0.85
D) greater than 0.85
Q3) Appraisal costs are associated with preventing defects before they happen. A)True B)False
Q4) Customers typically define quality as conformance to specifications. A)True B)False
Q5) Reliability is the probability that the product will be functional when used. A)True B)False
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Chapter 7: Lean Systems
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Sample Questions
Q1) One benefit of a just-in-time system is that it reduces space requirements.
A)True
B)False
Q2) Since the service organizations have limited use of inventory,JIT concepts are a relevant.
A)True
B)False
Q3) Cross-training is a common JIT tactic to improve flexibility.
A)True
B)False
Q4) What is variability in the context of JIT systems? What characteristics of lean systems aid in reduction of process variability?
Q5) Daily production schedules in high volume,make-to-stock environments must be ________ for extended periods.
Q6) How do small lots tribute to high quality,flexibility,and cost efficiencies?
Q7) Stable master production schedules are not needed for lean systems.
A)True
B)False
Q8) Discuss mixed model assembly.
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Chapter 8: Managing Projects
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Sample Questions
Q1) Using Table 3.5,what is the critical path of this project?
A) A-C-G
B) B-C-G
C) A-C-E-F
D) A-D-F
Q2) Identify and briefly explain the four categories of project risks.
Q3) Activity slack is defined as
A) latest start time minus earliest start time.
B) earliest start time minus latest start time.
C) earliest finish time minus latest finish time.
D) latest finish time minus earliest start time.
Q4) The crash cost is the additional cost associated with reducing the time required to complete an activity in a project.
A)True
B)False
Q5) All activities on the critical path must be crashed,or expedited,in order to reduce the overall project completion time.
A)True
B)False
Q6) Explain what the close out phase of the project life cycle involves.
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Chapter 9: Location and Layout
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Sample
Questions
Q1) Use the information in Table 9.10.What is the load-distance score for the current layout? (Assume rectilinear distance and that the distance between departments A and B is one unit of distance.)
A) less than or equal to 60
B) more than 60 but less than or equal to 75
C) more than 75 but less than or equal to 90
D) more than 90
Q2) ________ is the process of determining a geographic site for a firm's operations.
Q3) Build-It-Fast Inc.is analyzing the performance of its assembly line.Management observes that the line assembles 80 widgets per hour and that the total productive time needed to assemble one widget is 170 seconds.The assembly line currently has 6 stations.What is the efficiency of this line?
A) less than 70%
B) 70-80%
C) 81-90%
D) more than 90%
Q4) A(n)________ layout groups workstations or departments according to function.
Q5) What is a REL chart?
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Chapter 10: Managing Demand and Forecasting
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Sample Questions
Q1) A(n)________ is a measure that indicates whether a method of forecasting is accurately predicting actual changes in demand.
Q2) Luigui,who has been operating a very successful Italian restaurant in downtown Toronto,has had great success using forecasting techniques to predict demand for the main menu items ever since opening day.His forecast for last month was grossly inaccurate and so far this month,his forecast appears to be just as bad as last months.It's already time to prepare the forecast for next month,what should he do about his model?
Q3) What is a tracking signal? How is it calculated? Explain the connection between adaptive smoothing and tracking signals.
Q4) When a trend is present,exponential smoothing always will be below or above the actual demand.
A)True
B)False
Q5) Explain the coefficient of linear correlation.
Q6) Describe the term collaborative planning,forecasting,and replenishment (CPFR).
Q7) ________ is a time-series method used to estimate the average of a demand time series by averaging the demand for the n most recent time periods.
Page 12
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Chapter 11: Operations Planning and Scheduling
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Sample Questions
Q1) The aggregate planning strategy to be used should be consistent with the environment.Which one of the following pairs of environment and strategy is consistent?
A) skilled labor in short supply; adjust workforce levels
B) low inventory holding cost; build anticipation inventory
C) ample labor supply; increase backlog for short-term demand surges
D) seasonal requirements and ample, unskilled labor supply; subcontracting
Q2) A service firm's aggregate plan,called a(n)________,centers on staffing and other labor-related factors.
Q3) A TV repair service company has a seasonal demand for its service,and there is a general shortage of skilled TV repair persons.Which one of the following is a capacity production planning alternative suitable for this situation?
A) Hire and lay off workers to match the demand requirements.
B) Increase the backlog for short-term demand surges.
C) Offer reduced prices during the slack season.
D) Build anticipation inventories.
Q4) A(n)________ is an order that the customer expected to be filled immediately but reluctantly asks that it be delivered as soon as possible.
Q5) Briefly describe the difference between a production plan and a staffing plan.
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Chapter 12: Resource Planning
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Sample Questions
Q1) In an MRP system,a(n)________ item has at least one parent and at least one component.
Q2) Discuss planning lead time for inventory and manufacturers.
Q3) A(n)________ is an intermediate item that is assembled from one or more components.
Q4) In MRP,a(n)________ is any item manufactured from one or more components.
Q5) Explain the key differences between the FOQ,POQ and L4L lot sizing rules.
Q6) A(n)________ item is the final product sold to a customer.
Q7) The ability of one piece of software to interact with others is called interoperability.
A)True
B)False
Q8) A periodic order quantity issues orders at predetermined intervals using the same quantity for each order.
A)True
B)False
Q9) Service providers must plan for the same resources as in the manufacturing company having demand material driven.
A)True
B)False
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Chapter 13: Decision Making
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Sample Questions
Q1) Choosing the alternative that minimizes lost-opportunity costs using decision making under uncertainty would be
A) maximin.
B) maximax.
C) Laplace.
D) minimax regret.
Q2) The decision rule in decision making under uncertainty most appropriate for the pessimistic manager would be A) maximin.
B) maximax.
C) Laplace.
D) minimax regret.
Q3) The break-even point is the volume at which the total revenues equal total cost.
A)True
B)False
Q4) Fixed cost is the portion of the total cost that remains constant regardless of changes in levels of output.
A)True
B)False
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Chapter 14: Financial Analysis
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Sample Questions
Q1) Describe the basic techniques of financial analysis.
Q2) Which of the following is an accelerated depreciation method?
A) Straight-line depreciation
B) MACRS
C) Net present value
D) After-tax cash flow
Q3) The ________ is the concept that a dollar in hand today is worth more than a dollar to be received in the future.
Q4) The amount that must be invested now to accumulate to a certain amount in the future at a specified interest rate is called the ________.
Q5) Cash flows should be converted to ________ amounts before applying the net present value,payback,or internal rate of return method to them.
Q6) The ________ is the interest rate that is the lowest desired return on an investment.
Q7) The present value of an investment is the amount that must be invested now to accumulate to a certain amount in the future at a specific interest rate.
A)True
B)False
Page 16
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Chapter 15: Work Measurement
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Sample Questions
Q1) Work sampling is most often used in situations in which
A) a time standard is needed for a repetitive job.
B) an estimate of the proportion of the time spent on a particular activity is needed.
C) it is important to keep the sample size down.
D) special training is required for the observer, and stopwatches must be used.
Q2) A manager wants to determine the proportion of time a cashier is idle.A work-sampling method was used,and the idle time was found to be 20 percent based on 100 observations.If the manager wants a + 0.05 with a 95 percent confidence level,how many MORE observations are needed?
A) Fewer than or equal to 200
B) Greater than 200 but fewer than or equal to 300
C) Greater than 300 but fewer than or equal to 400
D) Greater than 400
Q3) Time studies are appropriate for setting time standards for tasks that are different each time.
A)True
B)False
Q4) The time added to adjust for factors such as fatigue or equipment malfunction is called ________.
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Chapter 16: Learning Curve Analysis
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Sample Questions
Q1) Using the information in Case G.1,how much time will it take to produce the units in month 1?
A) Fewer than 800 hours
B) Greater than or equal to 800 hours but fewer than 1,100 hours
C) Greater than or equal to 1100 hours but fewer than 1,500 hours
D) Greater than 1,500 hours
Q2) The learning effect can be represented by a line called a learning curve.
A)True
B)False
Q3) The fifth unit took 10 hours to produce and the learning rate is expected to be 85 percent.How long will it take to produce the tenth unit?
A) Fewer than or equal to 8.0 hours
B) Greater than 8.0 hours but fewer than or equal to 8.5
C) Greater than 8.5 hours but fewer than or equal to 9.0
D) Greater than 9.0
Q4) The ________ can be represented by a line called a learning curve.
Q5) What are the three major assumptions of the learning curve?
Q6) Why is the learning rate more pronounced for complex products than for simple products?
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Q7) The mathematical model that is used to generate a learning curve is ________.
Chapter 17: Computer-Integrated Manufacturing
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Sample Questions
Q1) CAM is an electronic system for designing new parts or products or altering existing ones.
A)True
B)False
Q2) Which one of the following is the heart of CAD?
A) A powerful desktop computer and mathematical software for inventory control
B) A powerful desktop computer and graphics software to allow a designer to manipulate geometric shapes
C) Graphics software to test and simulate new facility location patterns
D) The drawings and display monitor
Q3) Which one of the following results best describes the purpose of CIM technologies?
A) Increased productivity
B) Improved quality
C) Increased flexibility
D) All of these
Q4) A(n)________ integrates the design and manufacturing functions by translating final design specifications into detailed machine instructions for manufacturing an item.
Q5) Briefly describe two types of flexible automation for materials handling.
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Chapter 18: Acceptance Sampling Plans
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Sample Questions
Q1) A double-sampling plan has n? = 50,n? = 100,c? = 2,and c? = 4.Suppose on the first sample,five defectives were discovered.How many total items will be inspected before a decision is reached?
A) 50
B) 100
C) 150
D) This cannot be determined with the information provided.
Q2) Rectified inspection occurs when all defective items in the lot are replaced with good items if the lot is rejected and any defective items in the samples are replaced if the lot is accepted.
A)True
B)False
Q3) Replacing all defective items in a rejected lot and all defective items in a sample with good items is called ________ inspection.
Q4) Relative to an acceptance sampling plan,what is the net effect of increasing n while holding c constant?
Q5) A small ________ can be disregarded in AOQ calculations involving an extremely large lot size.
Q6) A double-sampling plan has a lower ________ than a single-sampling plan.
Page 20
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Chapter 19: Simulation
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Sample Questions
Q1) What are the differences between decision variables and uncontrolled variables? Describe the differences and provide an example from a simulation model.
Q2) ________ occurs when the simulation is repeated over enough time that the average results for performance measures remain constant.
Q3) Which of these is a special simulation language?
A) C++
B) FORTRAN
C) SLAM
D) VISUAL BASIC
Q4) The manager of a branch bank wants to build a simulation model of the lobby operation to reduce the waiting time of her customers.The number of customers arriving at any point of time is an example of
A) a decision variable.
B) an uncontrollable variable.
C) a time-compressed variable.
D) a dependent variable.
Q5) What are the motivations for using simulation for analyzing processes?
Q6) The two approaches to data collection for simulation are ________ and
21
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Chapter 20: Special Inventory Models
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Sample Questions
Q1) Use the information in Scenario D.1.What is the economic production lot size (ELS)?
A) Fewer than or equal to 400 units
B) Greater than 400 units but fewer than or equal to 480 units
C) Greater than 480 units but fewer than or equal to 500 units
D) Greater than 500 units
Q2) Use the information in Scenario D.3.What is the payoff when 40 units are ordered but a demand of 30 materializes?
A) $0
B) $100
C) $350
D) $450
Q3) Use the information in Scenario D.1.How many production runs per year are needed if Jerry chooses to produce at his economic production lot size (ELS)?
A) Fewer than or equal to 10 runs
B) Greater than 10 runs but fewer than or equal to 20 runs
C) Greater than 20 runs but fewer than or equal to 30 runs
D) Greater than 30 runs
Q4) A(n)________ is the minimum quantity needed to receive a discount.
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Chapter 21: Linear Programming
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Sample
Questions
Q1) NYNEX must schedule round-the-clock coverage for its telephone operators.To keep the number of different shifts down to a manageable level,it has only four different shifts.Operators work eight-hour shifts and can begin work at either midnight,8 a.m.,noon,or 4 p.m.Operators are needed according to the following demand pattern,given in four-hour time blocks.
\[\begin{array} { | l | c | }
\hline \text { Time Period } & \text { Operators Needed } \\
\hline \text { midnight to } 4 \text { a.m. } & 4 \\
\text { 4 a.m. to } 8 \text { a.m. } & 6 \\
8 \text { a.m. to noon } & 90 \\
\text { Noon to } 4 \text { p.m. } & 85 \\
\text { 4 p.m. to } 8 \text { p.m. } & 55 \\
\text { 8 p.m. to midnight } & 29 \\
\hline \end{array}\]
Formulate this scheduling decision as a linear programming problem,defining fully your decision variables and then giving the objective function and constraints.
Q2) ________ represent choices the decision maker can control.
Q3) What are the assumptions of linear programming? Provide examples of each.
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Chapter 22: Waiting Lines
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Sample Questions
Q1) India Sisson wants to grab a latte before heading to her marketing class,knowing that the jolt of a double tall mocha is the only thing that can possibly keep her eyes open during today's presentation on the four Ps.The barista is slower than molasses in January and India notes that the pace of the line won't permit her to grab her favorite seat in the back row of her class.She decides to risk marketing without a latte and leaves the line before getting served.India's behaviour is best described as A) balking.
B) blocking.
C) reneging.
D) queuing.
Q2) Customers arrive according to a Poisson distribution.The average number of customer arrivals per hour is three.The probability that four customers will arrive in the next two hours is
A) less than or equal to 0.10.
B) greater than 0.10 but less than or equal to 0.12.
C) greater than 0.12 but less than or equal to 0.14.
D) greater than 0.14.
Q3) A(n)________ is a rule that allows a customer of higher priority to interrupt the service of another customer.
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