Logistics Management Review
Questions
Course Introduction
Logistics Management provides an in-depth examination of the strategies and processes involved in the efficient movement and storage of goods, services, and information within supply chains. The course covers key topics such as transportation management, inventory control, warehousing, order fulfillment, procurement, and distribution network design. Emphasis is placed on the integration of logistics functions to optimize overall supply chain performance, the adoption of technology in logistics operations, sustainability practices, and the role of logistics in achieving customer satisfaction and competitive advantage. Students will also explore case studies and real-world examples to develop practical skills for managing logistics in various organizational contexts.
Recommended Textbook
Operations and Supply Chain Management 14th Edition by F. Robert Jacobs
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Page 2
Chapter 1: Introduction
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Q1) Which of the following is not a characteristic that distinguishes services from goods?
A)Service jobs are unskilled.
B)A service is intangible.
C)Services are perishable.
D)Services are heterogeneous.
E)None of these
Answer: A
Q2) Internet technology has made the sharing of reliable real-time information expensive.
A)True
B)False Answer: False
Q3) The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning.
A)True
B)False Answer: False
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Page 3
Chapter 2: Strategy
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Sample Questions
Q1) When a company seeks to match the benefits of a successful position while maintaining its existing position in offering customers a variety of differing services, what is this process called?
A)Operations capability analysis
B)Straddling
C)Order qualifying
D)Order winning
E)Inter-functional analysis
Answer: B
Q2) An order qualifier is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.
A)True
B)False Answer: True
Q3) One of the competitive dimensions that form the competitive position of a company when planning its strategies is making the best trade-off.
A)True
B)False Answer: False
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Page 4
Chapter 3: Design of Products and Services
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Q1) Incorporation of environmental considerations in the design and development of products or services is called ecodesign.
A)True
B)False
Answer: True
Q2) A competency is not core if it is easy for competitors to imitate.
A)True
B)False
Answer: True
Q3) A key decision point in the generic development process during "Phase 1: Concept Development" is project approval.
A)True
B)False
Answer: False
Q4) The main purpose of concurrent engineering is to improve product quality.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Project Management
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Sample Questions
Q1) You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values.What can you conclude?
A)You have incorrectly performed the analysis.
B)You have multiple critical paths.
C)Only one path is optimal.
D)More than one path is optimal.
E)The project will not be completed by the desired time.
Q2) In a CPM analysis, if you subtract the early start from the late start, the result is the activity's slack time.
A)True
B)False
Q3) The fact that organizations are flattening is one of the reasons that project management is important.
A)True
B)False
Q4) What are "project milestones?"
Q5) What is the most basic requirement of an EVM system?
Q6) What do the initials EVM stand for? Page 6
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Page 7
Chapter 5: Strategic Capacity Management
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Sample Questions
Q1) Compared with a service operation, a manufacturing operation's capacity is which of the following?
A)More dependent on time and location
B)Subject to more volatile demand fluctuations
C)Utilization more directly impacts quality
D)Demand can be smoothed by inventory policies
E)More capable of reacting to demand fluctuations
Q2) A production facility develops virtuosity and works best when it focused on a widely varied set of production objectives.
A)True
B)False
Q3) The capacity utilization rate is found by dividing best operating level by capacity used.
A)True
B)False
Q4) The probability of each occurrence at a decision tree chance node is the reciprocal of the number of possibilities at the chance node.
A)True
B)False
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Chapter 6: Learning Curves
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Sample Questions
Q1) You are a consultant specializing in estimating the costs after the employees learn how to do a job more efficiently by repetition.Your client can produce a product the first time at a cost of $2,500.If their 65 percent learning curve allows them to reduce their costs on each product, what is the total cost of producing 400 units of the new product?
A)$100,000
B)$78,900
C)$58,600
D)$45,765
E)$37,850
Q2) With a 70 percent unit improvement factor learning curve and an initial time of 100 minutes to do a job, at what number of repetitions does the job take less than 50 minutes?
A)2 repetitions of the job
B)3 repetitions of the job
C)4 repetitions of the job
D)5 repetitions of the job
E)6 repetitions of the job
Q3) What is a learning curve?
Q4) Why are learning curves useful in business?
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Chapter 7: Manufacturing Processes
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Sample Questions
Q1) A make-to-order firm will work with the customer to design the product and then make it from purchased materials, parts, and components.
A)True
B)False
Q2) Distinguish between a work center and a manufacturing cell.
Q3) 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
Q4) Process selection refers to the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.
A)True
B)False
Q5) Give an example of a project layout.______________________
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Chapter 8: Facility Layout
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Q1) Assembly-line balancing means assigning all necessary tasks to a series of workstations so that each workstation has no more than can be done in the workstation cycle time and so that idle time across all workstations is minimized.
A)True
B)False
Q2) Having a lot of interstage storage of materials is considered a good layout design for a manufacturing plant.
A)True
B)False
Q3) If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes, the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure.
A)True
B)False
Q4) The term "assembly line" refers to progressive assembly linked by some material handling device.
A)True
B)False
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Chapter 9: Service Processes
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Sample Questions
Q1) The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems.
A)True
B)False
Q2) Which of the following is not part of "the service triangle"?
A)Employees
B)Support systems
C)Customers
D)Service strategy
E)Service encounter
Q3) In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following?
A)High sales opportunity
B)High degree of customer/server contact
C)Low production efficiency
D)High production efficiency
E)None of these
Q4) Describe the role of service guarantees from the marketing and the operations perspective.
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Chapter 10: Waiting Line Analysis and Simulation
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Sample Questions
Q1) Having animation capabilities to graphically display product flows through a production system is not considered a desirable feature of simulation software systems.
A)True
B)False
Q2) Standing in line to buy tickets for a basketball game where there are multiple ticket windows involves which type of queuing system line structure?
Q3) Being user-friendly and easy to understand typically means that the simulation produces less accurate results.
A)True
B)False
Q4) The Poisson probability distribution is used in waiting line management when one is interested in the number of arrivals to a queue during some fixed time period.
A)True
B)False
Q5) When arrivals occur in a purely random fashion at a service facility, what kind of distribution does a plot of interarrival times yield?
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Chapter 11: Process Design and Analysis
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Sample Questions
Q1) Little's law says there is a long-term relationship among the inventory, throughput, and flow time of a production system in steady state.
A)True
B)False
Q2) Cycle time is the ratio of the time that a resource is actually activated relative to the time that it is available for use.
A)True
B)False
Q3) Make-to-stock production processes can easily handle requests for customized product features.
A)True
B)False
Q4) To reduce process throughput time, you might try which of the following actions?
A)Outsource activities.
B)Change the sequence of activities.
C)Improve teamwork.
D)Reduce management interference.
E)Introduce incentive pay
Q5) The ratio of output to input is called ____________.
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Chapter 12: Six Sigma Quality
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Sample Questions
Q1) While business organizations can seek to achieve the Baldrige National Quality Award, universities cannot.
A)True
B)False
Q2) One of the tools common to all quality efforts is leadership.
A)True
B)False
Q3) Which of the following is a dimension of design quality?
A)Price
B)Features
C)Color
D)Weight
E)Quality at the source
Q4) Why were ISO 9000 and ISO 14000 standards developed?
Q5) TQM is an acronym meaning "total quality measurement."
A)True
B)False
Q6) What does the acronym "CTQ" stand for?
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Chapter 13: Statistical Quality Control
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Sample Questions
Q1) An example of assignable variation in a production system may be that a machine is not adjusted properly.
A)True
B)False
Q2) You are going to develop an X-bar chart based on range statistics, and you are using a sample size of 12 for your charting purposes.Which of the following is the A<sub>2</sub> factor for the X-bar chart?
A)0.37
B)0.31
C)0.27
D)0.22
E)0.18
Q3) Lots are defined as low quality when the percentage of defective units is greater than what?
Q4) What is the symbol designating the capability index?
Q5) You have 75 total defects from 100 different samples of 15.What is p-bar?
Q6) What does it mean when we say that a process is capable?
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Chapter 14: Lean Supply Chains
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Sample Questions
Q1) To implement lean production schedules, a firm would do which of the following?
A)Have excess capacity.
B)Force demand.
C)Hire a consultant.
D)Achieve bottom-up management.
E)Implement kanban groups.
Q2) In the textbook, Toyota's Fujio Cho identified which of the following types of waste to be eliminated?
A)Underproduction
B)Excess quality
C)Preventive maintenance
D)Product defects
E)Kaizen
Q3) Uniform plant loading is a process of smoothing the production activity flow to dampen the reaction waves that normally occur in response to schedule variations.
A)True
B)False
Q4) Explain why lean manufacturing requires a stable demand environment.
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Chapter 15: Logistics Distribution, and Transportation
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Sample Questions
Q1) The centroid method for plant location uses which of the following data?
A)Volume of goods to be shipped between existing points
B)Inbound transportation costs
C)Transport times between facilities
D)Correlation matrix of existing facilities
E)Probabilities and payoffs
Q2) Plant A is located at the (X, Y) coordinates of (100, 200) and has a volume of shipping of 500 units a day.Plant B is located at the (X, Y) coordinates of (150, 400) and has a volume of shipping of 200 units a day.Using the centroid method, which of the following is the X coordinate for the new plant location?
A)About 100
B)About 114
C)About 130
D)About 150
E)X coordinate cannot be computed from the data given.
Q3) Hub-and-spoke systems combine the idea of consolidation and that of cross-docking.
A)True
B)False
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Page 18
Chapter 16: Global Sourcing and Procurement
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Sample Questions
Q1) The total cost of ownership (TCO) can be categorized into three areas: acquisition costs, ownership costs, and post-ownership costs.
A)True
B)False
Q2) The effect of the lack of synchronization among supply chain members is referred to as which of the following?
A)Forward buying
B)Continuous replenishment
C)Bullwhip effect
D)Metcalf's law
E)Being out of step
Q3) What is it called when a firm controls most of the activities in its supply chain?
Q4) Acquisition costs include which of the following costs?
A)Quality costs
B)Maintenance and repair costs
C)Environmental costs
D)Supply chain costs
E)Customer dissatisfaction costs
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Chapter 17: Enterprise Resource Planning Systems
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Sample Questions
Q1) Which of the following is a main benefit of processing transactions in real time?
A)There is no delay in the processing of the transaction.
B)The amount of detail available in the system is extremely rich.
C)It allows for immediate analysis, which can be valuable in making improvements.
D)All of these
Q2) Accounts receivable is the amount owed the firm by its suppliers.
A)True
B)False
Q3) Which of the following is not an aspect of ERP that determines quality?
A)The software should be multifunctional.
B)The software should be integrated.
C)The software should narrowly focus on a single function.
D)The software must facilitate basic planning.
Q4) Because the scope of ERP packages is very large, it is rarely necessary to add additional software.
A)True
B)False
Q5) In what ways can ERP be used to strengthen the entire supply chain?
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Chapter 18: Forecasting
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Q1) Name the four basic types of forecasting.(1)
(2) ______________________________
(3) ______________________________
(4) ______________________________
Q2) A restriction in using linear regression is that it assumes that past data and future projections fall on or near a straight line.
A)True
B)False
Q3) Exponential smoothing forecasts always lag behind the actual occurrence but can be corrected somewhat with a trend adjustment.
A)True
B)False
Q4) In business forecasting, what is usually considered a long-term time period?
A)Three months or longer
B)Six months or longer
C)One year or longer
D)Two years or longer
E)Ten years or longer
Q5) Distinguish between strategic and tactical forecasts.
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Chapter 19: Sales and Operations Planning
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Sample Questions
Q1) Because a level production strategy does not require adjustment in the short-to-medium term, aggregate sales and operations planning is not required.
A)True
B)False
Q2) Which of the following is a production planning strategy presented in the textbook?
A)Level
B)Strategic
C)Balanced
D)Synchronous
E)Optimal
Q3) The objective of the aggregate operations plan is to ensure that the marketing and sales plans are realistic.
A)True
B)False
Q4) In a logistics organization, vehicle dispatching immediately precedes vehicle loading.
A)True
B)False
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Chapter 20: Inventory Management
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Sample Questions
Q1) What is the term for there being no relationship between demands for various items?
Q2) In a price-break model of lot sizing, to find the lowest-cost order quantity, it is sometimes necessary to calculate the economic order quantity for each possible price and to check to see whether the lowest cost quantity is feasible.
A)True
B)False
Q3) Which of the following is an assumption of the basic fixed-order-quantity inventory model?
A)Lead times are averaged.
B)Ordering costs are variable.
C)Price per unit of product is constant.
D)Back-orders are allowed.
E)Stock-out costs are high.
Q4) Safety stock can be defined as the amount of inventory carried in addition to the expected demand.
A)True
B)False
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Chapter 21: Material Requirements Planning
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Sample Questions
Q1) Which of the following is an input file necessary to run an MRP system?
A)Exception report
B)Computer-aided-design files
C)Inventory records file
D)Personnel files
E)Planned order schedule
Q2) The economic order quantity (EOQ) lot-sizing technique produces or acquires exactly the amount of product that is needed each time period with none carried over into future periods.
A)True
B)False
Q3) Which of the following files allows us to retrace a material requirement upward in the product structure through each level, identifying each parent item that created the demand?
A)Planning bill of materials file
B)Modular bill of materials file
C)Super bill of materials file
D)Exception report file
E)Peg record file
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Page 24
Chapter 22: Workcenter Scheduling
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Q1) A work center has five jobs assigned to it.They are labeled, in the order of their arrival in the shop, as jobs A, B, C, D, and E.The work center may work on only one job at a time and must complete any job it starts before starting another job.Job A has a processing time of 6 days and is due to the customer in 9 days.Job B has a processing time of 2 days and is due in 16 days.Job C has a processing time of 4 days and is due in 10 days.Job D has a processing time of 3 days and is due in 7 days.Job E has a processing time of 5 days and is due in 12 days.Using the shortest operating time priority rule, in what order should these jobs be undertaken?
Q2) Which of the following is not a function performed in scheduling and controlling an operation?
A)Allocating orders and equipment
B)Setting priorities and sequencing jobs
C)Allocating personnel to work centers
D)Expediting late orders
E)Reporting bottleneck operations
Q3) What is the difference between finite and infinite loading?
Q4) What is sub-optimization in scheduling?
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Chapter 23: Theory of Constraints
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Sample Questions
Q1) What are the three measurements in TOC that give guidance to the firm's operations? (1)
Q2) What is a word indicating a resource whose capacity is less than the demand placed on it?
Q3) The operational measure of throughput is "the rate at which money is generated by the system through production of goods and services that might be sold."
A)True
B)False
Q4) According to the theory of constraints, the term "productivity" is defined as all those actions that bring a company closer to its goals.
A)True
B)False
Q5) In a process sequence where a product flows from process A to process B, process B is called the dependent process.
A)True
B)False
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Chapter 24: Health Care
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Q1) Among the major trends in health care that relate to OSCM is computer-assisted diagnosis.
A)True
B)False
Q2) The customer service dashboard reports hospital scores on issues such as meal quality, mortality rate, and percentage of transfusions having adverse reactions.
A)True
B)False
Q3) The flow of work through a hospital is sometimes referred to as a care chain.
A)True
B)False
Q4) A hospital is a facility whose staff provides services relating to observation, diagnosis, and treatment to cure or lessen the suffering of patients.
A)True
B)False
Q5) The acronym CPOE stands for computerized prescription order entry.
A)True B)False
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Chapter 25: Operations Consulting
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Q1) Consulting has become one of the major areas of employment for business graduates.
A)True
B)False
Q2) The goal of consulting firms is to satisfy a client's needs.
A)True
B)False
Q3) What is the most common method for improving efficiency in consulting firms?
Q4) A key principle of reengineering is to downsize (layoff) workers and do the same amount of work as before.
A)True
B)False
Q5) One form of gap analysis used in operations consulting is benchmarking particular client company processes against firms that are exemplars in the process and measuring the differences.
A)True B)False
Q6) What is the goal of consulting firms?
Page 28
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