Logistics Management
Textbook Exam 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. The course covers key topics such as inventory management, transportation, warehousing, supply chain coordination, procurement, and the use of technology in logistics. Students will analyze case studies, learn industry best practices, and develop strategies to reduce costs, improve customer service, and enhance organizational competitiveness in domestic and global markets.
Recommended Textbook
Operations and Supply Chain Management for the 21st Century 1st Edition by Ken Boyer
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Chapter 1: Operations and Supply Chain Strategy
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Sample Questions
Q1) Describe a simplified supply chain for personal computers.
Answer: Companies such as Intel,AMD,and Microsoft make components or parts (including software)that are assembled by various companies such as HP,Sony,Apple,and Dell.The end product is shipped to various stores around the world,including Best Buy,Circuit City,Tesco,Globus,and Wal-Mart.The end customer thus has a choice of numerous similar products from similar retailers provided through different supply chains.Put another way,supply chains are multiple-company linkages of the operations of individual companies.
Q2) Which of the following is an infrastructural decision question?
A)What worker skills are required?
B)How much should capacity be increased?
C)How much capacity is required?
D)What facility layout should be employed?
E)What suppliers should be integrated into the supply chain?
Answer: A
Q3) A structural decision might ask what metric should be used in a particular quality system.
A)True
B)False
Answer: False
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Chapter 2: Quality Management
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Sample Questions
Q1) As quality levels increase,____.
A)Internal costs decrease
B)Internal costs increase
C)External failure costs increase
D)Assurance costs decrease
E)Prevention costs decrease
Answer: A
Q2) Pete's Pizza promises delivery to your home or office in under an hour.His goal is to deliver all Pizzas between 20 and 60 minutes.Records indicate the average delivery time is 38 minutes,with a standard deviation of 3 minutes.Is the company delivering within Six Sigma quality levels with respect to delivery time?
Answer: Actual upper (mean + 6*s)value = 38 + 6*3 = 56 Actual lower (mean + 6*s)value = 38 - 6*3 = 20 Yes,the promised time is within 6 standard deviations of the mean.
Q3) External failure costs refer to the cost of poor quality if the error is caught within the production facility before it is sold to the customer.
A)True
B)False
Answer: False
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Page 4
Chapter 3: New Product Development
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Sample Questions
Q1) Profit management is a common initial driver for a new product development process for tangible goods.
A)True
B)False
Answer: False
Q2) Which of the following is a "low-clock-speed" industry?
A)Electronics
B)Computers
C)Cell phones
D)Chemicals
E)Motion pictures
Answer: D
Q3) A successful new product development process generally requires participation and input from multifunctional teams including members from marketing,engineering,and operations.
A)True
B)False
Answer: True
Q4) What are the four stages of the product life cycle?
Answer: Introduction,growth,maturity,and decline.
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Chapter 4: Process Design and Analysis
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Q1) Customers are normally much more involved in the service delivery process than with manufactured goods.
A)True
B)False
Q2) A fixed-position layout is appropriate for very large items,like a cruise ship.
A)True
B)False
Q3) Which of the following is not a "service factory"?
A)Hospital
B)Movie theater
C)Airline
D)Hotel
E)Fast food restaurant
Q4) A job shop is appropriate for products that are delivered in high volume.
A)True
B)False
Q5) A bottleneck will determine the amount of output of a process.
A)True
B)False
Q6) Describe outsourcing and give two reasons why its use has increased.
Page 6
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Chapter 5: Forecasting
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Sample Questions
Q1) Forecasting methods should be used for products with dependent demand.
A)True
B)False
Q2) Preparing an accurate forecast for an aggregated group of similar products is often easier than forecasting for an individual product separately.
A)True
B)False
Q3) The mean squared error is the best tool for measuring forecast error.
A)True
B)False
Q4) If the forecast for the first quarter for next year is 1000 units,what is the seasonally adjusted demand if the first quarter seasonal index is 1.24?
Q5) In the exponential smoothing model,what is the effect of the size of alpha on the forecast?
Q6) Linear regression models can only include one independent variable.
A)True
B)False
Q7) Describe yield management and give an example of it.
Q8) Describe r,r<sup>2</sup>,and the standard error of the estimate.
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Chapter 6: Independent Demand Inventory
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Sample Questions
Q1) The time between when an order is placed and when it is expected to arrive is the ____,when demand is certain.
A)Reorder point
B)Schedule receipt
C)Backorder
D)Lead time
E)On-hand time
Q2) Describe three ways to improve inventory accuracy.
Q3) What items are often kept in inventory for a service company?
A)MRO
B)RFID
C)EOQ
D)QFD
E)ROP
Q4) In manufacturing,which of the following is not considered a type of inventory?
A)Raw materials
B)WIP
C)Finished goods
D)Transport items
E)Supplies
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Chapter 7: Dependent Demand Inventory
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Sample Questions
Q1) Give three reasons for carrying safety stock.
Q2) An MRP system creates a master schedule.
A)True
B)False
Q3) Which phrase refers to a situation in MRP planning where a change in one part level ripples down to affect lower-level parts?
A)Safety stock
B)MRP explosion
C)MRP nervousness
D)Capacity planning
E)MRP rolling schedule
Q4) ____ represent/represents orders that have been placed but not yet received or completed.
A)Gross requirements
B)Scheduled receipts
C)On-hand inventory
D)Buckets
E)Safety stock
Q5) Provide three factors that may influence the lot size decision for a fixed order quantity.
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Chapter 8: Project Management
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Sample Questions
Q1) Identify and describe the three different estimates for activity times in the PERT method.
Q2) For an activity,the ES is 0,the EF is 2,the LS is 3,and the LF is 5.What is the slack?
A)0
B)2
C)3
D)5
E)8
Q3) Activity 7 is directly preceded by two activities,activity 5 and activity 6.Activity 5 has an expected time of 5 and ES time of 6.Activity 6 has an expected time of 7 and an ES time of 7.Activity 7 has an expected time of 10.The ES for activity 7 is
A)10
B)11
C)14
D)21
E)24
Q4) Identify and describe how leadership can impact project success.
Q5) Identify five of the critical factors in project failure.
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Chapter 9: Optimization and Simulation Modeling
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Sample Questions
Q1) The objective function of a linear program provides the criterion by which all decisions should be evaluated.
A)True
B)False
Q2) Which of the following is not considered to be a component of linear programming?
A)An objective function
B)Decision variables
C)Constraints
D)Nonnegativity
E)Restricted to integers
Q3) The graphical solution to a linear programming problem can be used when there are only two decision variables.
A)True
B)False
Q4) Recently developed simulation programs are generally easy to use,but require an understanding of logic and statistics.
A)True
B)False
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Chapter 10: Capacity Planning
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Q1) The decision to outsource is seldom part of a capacity decision-making process.
A)True
B)False
Q2) In a typical experience curve,the time per unit for the first 100 to 200 units
A)Increases slowly
B)Increases rapidly
C)Decreases slowly
D)Decreases rapidly
E)Remains constant
Q3) In services,capacity must be available when the customer wants the service.
A)True
B)False
Q4) Experience curves express an inverse relationship between labor and the quantity produced.
A)True
B)False
Q5) Identify five factors that affect the size of a capacity cushion.
Q6) Qualitative factors are relatively unimportant in capacity decisions.
A)True
B)False
Page 12
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Chapter 11: Quality Improvement Methods
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Sample Questions
Q1) A Type I error is a false negative.
A)True
B)False
Q2) Using students from one class would provide a simple random sample for all university students.
A)True
B)False
Q3) Describe the nine steps in benchmarking.
Q4) A quality circle is a way of getting feedback from what group?
A)Customers
B)Employees
C)Suppliers
D)Competitors
E)Supply chain members
Q5) Provide three rules for identifying if a process is out of control,in addition to a single point being outside of the control limits.
Q6) Describe three sampling techniques.
Q7) Once a quality improvement plan is implemented,the process is complete.
A)True
B)False
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Chapter 12: Lean Enterprise
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Sample Questions
Q1) Lean principles include all the following except that
A)Value is defined from the customers' point of view
B)Actions that do not add value should be eliminated
C)Continuous improvement
D)Products should be pushed to the customer
E)Value creation should be organized in a tight and integrated sequence
Q2) Which of the following is not considered a source of waste?
A)Overproduction
B)Setup Time
C)Poor Quality
D)Labor
E)Movement
Q3) In an assembly line following a lean philosophy,what would a worker do who found a quality problem?
A)Report the problem at the end of the shift
B)Report who made the mistake
C)Stop the line and fix the problem
D)Fix the problem personally at the end of the shift
E)Let the inspector fix the problem
Q4) What are the five S principles to create a more organized work space?
Page 14
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Chapter 13: Technology and Integrated Supply Management
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Sample Questions
Q1) What can be done to minimize the bullwhip effect?
Q2) Improvements in productivity and quality are generally a function of advances in technology.
A)True
B)False
Q3) What term describes an activity in services that the customer does not directly interact with or see?
A)Out-of-office activity
B)Front-office activity
C)Back-office activity
D)Pseudo office activity
E)Nondirect service activity
Q4) The use of technology to improve services is very similar to the use of technology to improve manufacturing.
A)True
B)False
Q5) ATM machines allow banks to shift much of the "back-office" work to the "front office."
A)True
B)False
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Chapter 14: Global Supply Chain and Service Integration
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Sample Questions
Q1) Which of the following is not a benefit of the globalization of industries?
A)Production of goods worldwide
B)Broader access to manufactured goods
C)Broader access to services
D)Wider access to investment funds
E)Reduced competition
Q2) In his book,Thomas Friedman identifies Wal-Mart as an example of a company that uses what very effectively to streamline item sales,distribution,logistics,and shipping?
A)Oil futures
B)Technology
C)Marketing leverage
D)Clout with suppliers
E)Personnel
Q3) Identify four "flatteners" described by Thomas Friedman in The World is Flat: A Brief History of the Twenty-First Century.
Q4) The United States is considered to be a highly globalized country.
A)True
B)False
Q5) Identify three goals of outsourcing a particular product or service.
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