Logistics Management Study Guide
Questions
Course Introduction
Logistics Management provides an in-depth examination of the strategies, principles, and practices involved in the efficient flow of goods, services, and information from point of origin to point of consumption. The course covers key topics such as transportation management, inventory control, warehousing, procurement, supply chain coordination, and emerging technologies in logistics. Students will analyze real-world case studies to understand how effective logistics decisions contribute to overall business competitiveness, cost reduction, and customer satisfaction, while also exploring challenges related to globalization, sustainability, and risk management within logistics networks.
Recommended Textbook
Introduction to Operations and Supply Chain Management 4th Edition by Cecil B. Bozarth
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Chapter 1: Introduction to Operations and Supply Chain Management
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Q1) Which of the following lists is in correct supply chain order?
A) first-tier supplier - manufacturer - distributor
B) distributor - manufacturer - retailer
C) first-tier supplier - second-tier supplier - third-tier supplier
D) customer - retailer - distributor
Answer: A
Q2) Scheduling and managing the flow of work through an organization and supply chain belongs to the logistics function of a supply chain.
A)True
B)False
Answer: False
Q3) The collection of people,technology,and systems within an organization that has primary responsibility for providing the organization's products or services is ________. Answer: operations
Q4) An activity or firm that is positioned earlier in the supply chain relative to another activity or firm is said to be ________.
Answer: upstream
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Chapter 2: Operations and Supply Chain Strategies
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Q1) A major retailer wants to sell items as cheaply as possible while maintaining an attractive and enjoyable shopping atmosphere.Spending too much on ambience will raise prices and drive away shoppers but spending too little will drive shoppers away also.Clearly,the retailer is faced with a(n)________.
Answer: trade-off
Q2) Which of these is a major operations and supply chain infrastructural decision category?
A) Organization
B) Facilities
C) Capacity
D) Technology
Answer: C
Q3) Your employer prepares a request for proposal that describes in vivid detail all of the capabilities that a new computer system should possess.A software product that can meet this request for proposal has performance characteristics that can be described as order qualifiers.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Q1) In a service blueprint,the two layers the customer is involved with are the ________ and the ________.
Answer: customer action; onstage activities
Q2) The ________ includes all the value-added physical and intangible activities that a service organization provides to the customer.
Answer: service package
Q3) Regardless of the number of tasks or their durations,a line balance that is 100% efficient is achievable if CT = T.
A)True
B)False
Answer: True
Q4) Refer to the scenario above.What is the theoretical minimum number of stations that will be used if the line is balanced using the appropriate takt time?
A) 3
B) 4
C) 5
D) 6
Answer: C
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Chapter 4: Business Processes
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Q1) A car wash services 200 customers in an hour on a lovely Saturday afternoon.The car wash employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour.They charge $10 per car for their standard wash job.Which of these changes would have the greatest positive impact on their productivity?
A) increasing their service rate so they can process 210 cars per hour
B) cutting their employee pay by $1 per hour
C) charging $11 per standard wash job
D) introducing a new waterless system
Q2) A person who fails to meet output standards could still have an efficiency measurement of more than 100%.
A)True
B)False
Q3) One reason the SCOR model is widely accepted is its consistency.It mandates the same information and physical flows for all products,regardless of the degree of customization.
A)True
B)False
Q4) ________ is a measure of process performance that is a ratio of output to inputs.
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Page 6
Chapter 5: Managing Quality
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Q1) A barbecue sauce producer makes their product in an 80-ounce bottle for a specialty store.Their historical process mean has been 80 ounces and their tolerance limits are set at 80 ounces plus or minus 1 ounce.What does their process standard deviation need to be in order to sustain a process capability ratio of 1.66?
A) 0.10
B) 0.20
C) 0.25
D) 0.33
Q2) A barbecue sauce producer sells their product in a 20-ounce bottle.Their historical process mean has been 20 ounces with a standard deviation of 0.25 ounces.If their tolerance limits are set at 20 ounces plus or minus 1 ounce,what is the process capability ratio of the bottle filling process?
A) 1.00
B) 1.33
C) 1.75
D) 2.00
Q3) A(n)________ cost is incurred by a company to assess its quality levels.
Q4) Describe the ISO 9000 family of standards,including the objectives and process of becoming certified.
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Chapter 6: Managing Capacity
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Sample Questions
Q1) Which of the following statements about theoretical capacity is best?
A) Theoretical capacity allows adjustments for preventive maintenance.
B) Running a factory at this level for a short time is often better than permanently raising resource levels.
C) Theoretical capacity levels are usually lower than rated capacity levels.
D) Theoretical capacity levels take into account that machines occasionally break and that workers occasionally call in sick.
Q2) A traditional university classroom has room for 30 students and is scheduled for use during 12 consecutive one hour periods from 8:00 a.m.to 8:00 p.m.in the spring semester.Its theoretical capacity is therefore half of its rated capacity.
A)True
B)False
Q3) The process step that limits throughput for the entire process chain is the
Q4) Define theoretical and rated capacity and name four factors that affect a company's capacity.Indicate how each factor impacts rated capacity.
Q5) In waiting line theory,a customer service attendant is a(n)________.
Q6) Describe the three capacity strategies and the advantages of each.
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Chapter 6: A: Advanced Waiting Line Theory and Simulation
Modeling
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Q1) A process is ________ if the outcome of one trial does not have any impact on the next trial.
Q2) One assumption in most waiting line analyses is that the number of customers is
Q3) ________ is an Excel function that generates a uniformly distributed random number between 0 and 1.
Q4) A waiting line cannot be both multiple-channel and multiple-phase.
A)True
B)False
Q5) Hopeful patrons line up to spin the giant slot machine at the entrance to Ace Rothstein's Tangiers casino.They pour in the door at the rate of 300 per hour and it takes exactly ten seconds every time for the wheels to spin and inform the unlucky patron that they have lost a dollar rather than win a new Corvette.How long do customers spend waiting in line and finding out the unhappy news on average?
A) 35 seconds
B) 30 seconds
C) 25 seconds
D) 20 seconds
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Q6) If 5 minutes passes between customer arrivals then the ________ is 12/hour.
Chapter 7: Supply Management
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Q1) One advantage of outsourcing is that it:
A) gives the company a high degree of control over its operations.
B) increases the company's access to state-of-the-art products and processes.
C) protects the company's proprietary designs and processes.
D) discourages the development of the company's core competencies.
Q2) A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's product or services is:
A) description by market grade.
B) description by brand.
C) description by specification.
D) description by performance characteristics.
Q3) Money is automatically drawn from the buyer's account and deposited into the supplier's account in an electronic funds transfer (EFT).
A)True
B)False
Q4) Authorization to a supplier to deliver a product,known as a(n)________,increasingly takes the form of a technology known as ________.
Q5) Profit margin is the ratio of ________ to ________.
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Chapter 8: Logistics
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Q1) One form of warehousing that features light manufacturing and packaging duties and allows firms to put off final assembly or packaging until the last possible moment is:
A) assortment warehousing.
B) spot stock warehousing.
C) postponement warehousing.
D) pac-man warehousing.
Q2) Between any two locations,a less-than-truckload shipment probably experiences fewer stops and handling than a direct truck shipment.
A)True
B)False
Q3) It looked like a scene right out of the Transformers series,albeit in a far more functional format.With the push of a button the rail car's wheels folded up into the body of the car and wheels suitable for highway transportation appeared out of nowhere.The whole process took only a minute or so and the ________ was ready to deliver steaming burritos to the growing crowd at the center of town.
Q4) Choose a major manufacturer and a major retailer and describe two types of warehousing each might use and why they use it.
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Chapter 9: Forecasting
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Q1) Describe the mechanics of three qualitative forecasting techniques and compare their strengths and weaknesses.
Q2) The slope of the regression equation is positive if the r-squared value is greater than 0.0.
A)True
B)False
Q3) Dividing actual demand by the model's forecast yields an index that can be used to adjust for ________ in the data.
Q4) The greater the randomness in the model,the greater the number of periods should be used in a moving average forecast.
A)True
B)False
Q5) Over the long run,fluctuations in demand due to seasonality are greater than those due to randomness.
A)True
B)False
Q6) ________ is unpredictable movement from one time period to the next.
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Chapter 10: Sales and Operations Planning Aggregate Planning
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Q1) A home improvement store adds several workers to the garden center in the summer in order to meet the demands of do-it-yourselfers for their dazzling array of plants.Once gardening season is over,both the workers' jobs (and the plants they sold)will perish.The home improvement store is following an offloading strategy.
A)True
B)False
Q2) The Super Bowl is right around the corner and Gowgem Hotels is aquiver with anticipation.They'd like to price their rooms at their three city locations,next to the stadium,near the airport,and in the suburbs,as high as possible but still achieve 100% occupancy.The approach they should take to this opportunity is:
A) yield management.
B) a tiered workforce.
C) a load profile.
D) a chase plan.
Q3) What are the possibilities for matching capacity to sales and vice versa when doing S&OP in a service environment?
Q4) A production planner can confirm future capacity requirements based on released or planned orders by referring to a(n)________.
Page 13
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Chapter 11: Managing Inventory Throughout the Supply Chain
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Sample Questions
Q1) A company that orders at their economic order quantity has an annual ordering cost that is half of their total cost.
A)True
B)False
Q2) Dependent demand inventory never needs to hold hedge inventory.
A)True
B)False
Q3) A manufacturer replenishes their packaging materials according to the economic order quantity model.They use 25,000 cases of packaging materials per year and order 500 cases at a time.Their cost to carry a case in inventory for a year is $12.How much does it cost them to place an order with their supplier?
A) $12
B) $60
C) $720
D) $5
Q4) Inventory items with demand levels that are beyond an organization's complete control are termed ________.
Q5) In a single period system,the target ________ is the balancing point between shortage costs and excess costs.
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Chapter 12: Managing Production Across the Supply Chain
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Q1) From a revenue standpoint,a producer would rather have higher forecasted demand than booked orders.
A)True
B)False
Q2) Forecasts in a company using a distribution requirements planning system are typically based on:
A) historical data from upstream supply partners.
B) historical data from downstream supply partners.
C) upstream supply partners' requirements.
D) downstream supply partners' requirements.
Q3) ________ translates the master schedule for final products into detailed requirements.
Q4) Material requirements planning is performed at greater level of detail than master scheduling.
A)True B)False
Q5) What are three advantages of using an MRP system?
Q6) Material requirements planning is used to manage independent demand inventory. A)True B)False
Page 15
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Chapter 12: A: Supply Chain Information Systems
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Q1) A typical CRM application is:
A) design collaboration.
B) the sell process.
C) sourcing decisions.
D) supply collaboration.
Q2) Internal supply chain management is used to link higher level planning and location decision making with lower level activities within the same supply chain.
A)True
B)False
Q3) Which of these is an essential characteristic of the cloud model?
A) distributed intelligence
B) third normal form
C) asynchronous communication
D) resource pooling
Q4) Before the Internet was widely adopted by business,most computer systems shared a common database but sharing software was a difficult task.
A)True
B)False
Q5) What are the salient features of cloud computing?
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Chapter 13: Jitlean Production
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Q1) Two modules are used to feed the final assembly station on an assembly line.The final assembly station must produce 250 units in an eight-hour day.Each finished unit needs two module A's and 3 module B's.The factory uses a standard sized container that can hold 25 module A's or 35 module B's.It takes 2 hours to fill and move a container of module A's,but only 90 minutes to fill and move a container of module B's.If both module assembly processes have safety factors of 15%,how many containers should be used for each? How many hours of demand will this satisfy?
Q2) A(n)________ is a production control approach that uses containers,cards,or visual cues to control production and movement of goods throughout the supply chain.
Q3) In a two-card kanban system:
A) each box of finished goods has a move card so it can be sent to the next step.
B) each box of raw material has a production card so it can be made into finished goods.
C) a downstream station pulls finished material out of a production area.
D) demand for more raw materials pushes finished goods to the finished goods area.
Q4) Just-in-time production is also referred to as ________.
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Chapter 14: Managing Projects
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Q1) During the ________,project planners identify how to accomplish the work,how to organize for the project,and the key personnel and resources needed.
Q2) Refer to the scenario above.Which of these activities has slack?
A) G
B) E
C) F
D) D
Q3) There are more resources required during the performance phase of a project than the project definition phase.
A)True
B)False
Q4) Refer to the scenario above.What is the duration of activity H?
A) 7 weeks
B) 8 weeks
C) 9 weeks
D) 10 weeks
Q5) What are the phases of a project and the activities within each?
Q6) Discuss the recent business trends that have increased the attention and interest in project management skills.
Page 18
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Chapter 15: Developing Products and Services
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Sample Questions
Q1) What does the M represent in the acronym DMADV?
A) Metrics
B) Measure
C) Monitor
D) Market
Q2) Develop the first matrix (customer requirements - product characteristics)for a house of quality for an improved wallet.Your house of quality should feature four rows and four columns and should identify relationships among the rows and columns.Identify relationships in the roof of your house of quality also.
Q3) Your supplier works closely with you to jointly design a product in:
A) gray box design.
B) black box design.
C) white box design.
D) red box design.
Q4) Companies can reduce the time and cost of developing new products and reduce the cost of final products by using parts standardization.
A)True
B)False
Q5) What is value analysis and how is it typically conducted?
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