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 information from the point of origin to the point of consumption. This course covers key concepts in transportation, inventory management, warehousing, materials handling, order fulfillment, and distribution strategies. Students will learn how logistics supports the broader supply chain, examine the role of technology in modern logistics operations, and analyze methods to optimize logistics performance while balancing cost and customer service. Practical case studies and industry examples are used to illustrate best practices and emerging trends in logistics management.
Recommended Textbook
Introduction to Operations and Supply Chain Management 3rd Edition by Cecil B. Bozarth
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Chapter 1: Introduction to Operations and Supply Chain Management
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Q1) Operations can be considered a transformation process that takes things like materials,labor,and capital,called ________ and transforms them into goods or services,called ________.
Answer: inputs,outputs
Q2) The drive for efficiency has decreased the level of globalization in the world economy over the last twenty years.
A)True
B)False
Answer: False
Q3) The organization that provides national and institutional leadership in purchasing and materials management is:
A)APICS.
B)ISM.
C)CLM.
D)ASQ.
Answer: B
Q4) A second-tier supplier is located ________ from a first-tier supplier.
Answer: upstream
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Chapter 2: Operations and Supply Chain Strategies
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Q1) The operations and supply chain strategy wasn't aligned with the business strategy nor the mission,so management could only hope to minimize the damage the operations function caused.This ________ stage was targeted for improvement next year.
Answer: internally neutral
Q2) Which of these is NOT one of the primary objectives of an operations and supply chain strategy?
A)to help management choose the right mix of structural and infrastructural elements,based on a clear understanding of the performance dimensions valued by customers and the trade-offs involved
B)to ensure that the firm's structural and infrastructural choices are strategically aligned with the firm's business strategy
C)to support the development of core competencies in the firm's operations and supply chains
D)to align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement
Answer: D
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Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Q1) Takt time is the upper limit on the elapsed time between completions of successive items on a production line.
A)True
B)False
Answer: True
Q2) Assemble-to-order occurs upstream from:
A)design.
B)material sourcing.
C)fabrication.
D)finishing.
Answer: D
Q3) A cellular layout is another name for a functional layout.
A)True
B)False
Answer: False
Q4) Why are process decisions important?
Answer: Process decisions are important because they tend to be expensive and far-reaching.A process choice dictates the type and size of the workforce and the type of equipment that is needed.Different processes have different strengths and weaknesses.
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Chapter 4: Business Processes
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Sample Questions
Q1) When constructing a fishbone diagram,brainstorming takes place during the: A)closed phase.
B)narrow phase.
C)wide phase.
D)open phase.
Q2) Level 1 of the SCOR model is organized around the five core management processes: plan,source,make,deliver,and return.
A)True
B)False
Q3) ________ is a measure of process performance that is a ratio of output to inputs.
Q4) Describe the process of root cause analysis and include in your description the tools that it uses.
Q5) The Five Whys can be used during all three phases of construction of a Pareto chart. A)True
B)False
Q6) Describe continuous improvement and business process reengineering and compare their advantages and disadvantages in relation to each other.
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Chapter 5: Managing Quality
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Q1) Money spent training an employee how to do the job mistake-free is an example of an appraisal cost.
A)True
B)False
Q2) If a contact lens has a scratch on it,the manufacturer classifies it as defective.This is an example of a continuous variable.
A)True
B)False
Q3) Joseph Juran's definition of quality as "fitness for use" is an example of the value perspective of quality.
A)True
B)False
Q4) Which of these statements about the zero defects view of the total cost of quality is BEST?
A)Failure costs dictate the shape of the total cost curve.
B)In general,appraisal costs exceed prevention costs.
C)As the defect rate increases,appraisal costs increase.
D)As the defect rate increases,prevention costs increase.
Q5) Describe the four quality-related costs and tell how they are related.
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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) Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution.What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?
A)0.00
B)0.05
C)0.15
D)0.45
Q3) The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.
A)True
B)False
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Chapter 7: S Advanced Waiting Line Theory and Simulation
Modeling
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Q1) Everything about two different waiting line systems is the same except one system has a constant service time and the other has a Poisson distributed service time.Customers using the system with the constant service time will have half the waiting time of the customers using the system with Poisson distributed service times. A)True
B)False
Q2) In most waiting line models,customers are assumed to arrive at random intervals,based on a normal distribution.
A)True
B)False
Q3) It is more costly to create a more realistic simulation than one that is less realistic. A)True
B)False
Q4) All waiting line formulas assume that customers are served on a first-come first-served (FCFS)basis.
A)True
B)False
Q5) If 5 minutes pass between customer arrivals,then the ________ is 12 per hour.
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Chapter 8: Supply Management
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Q1) 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
Q2) Which of these is an indirect cost associated with insourcing?
A)maintenance
B)purchasing
C)receiving
D)quality control
Q3) Define outsourcing and discuss its advantages and disadvantages.
Q4) Cross sourcing is a strategy in which two suppliers are used for the same purchased product or service.
A)True
B)False
Q5) Firms do not compete only against global competitors,but against:
A)their suppliers.
B)themselves.
C)the customers of their competitors.
D)their competitors' supply chains.
Q6) Profit margin is the ratio of ________ to ________.
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Chapter 9: Logistics
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Sample Questions
Q1) A(n)________ can handle shipments on an as-needed basis with no long-term contract required.
Q2) Which of these is NOT a logistics activity?
A)material handling
B)inventory management
C)warehousing
D)inspection
Q3) The fireworks that were produced year-round in South Africa were sent to warehouses around the United States during the months of May and June in anticipation of large demand for the July 4th holiday.The warehousing system that is BEST suited to handle this situation is the:
A)assortment warehouse.
B)postponement warehouse.
C)spot stock warehouse.
D)break-bulk warehouse.
Q4) Define logistics and explain why it is critical.
Q5) Packaging is a logistics activity.
A)True
B)False
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Chapter 10: Forecasting
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Q1) Forecasts are almost always wrong.
A)True
B)False
Q2) Over the long run,fluctuations in demand due to seasonality are greater than those due to randomness.
A)True
B)False
Q3) In order to indicate ________ in a forecast model,you should use the mean forecast error approach rather than the mean absolute deviation approach.
Q4) Two time series techniques that are appropriate when the data display a strong upward or downward trend are ________ and ________.
Q5) A long-term movement up or down in a time series is called:
A)seasonality.
B)trend.
C)randomness.
D)cycle.
Q6) Using the data in the table,first plot the data and comment on the appearance of the demand pattern.Then develop a forecast for weekend #5 that fits the data.
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Chapter 11: Sales and Operations Planning Aggregate Planning
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Q1) Within the context of the planning cycle,the planning that takes place at the highest levels of the firm is called:
A)strategic planning.
B)operational planning.
C)tactical planning.
D)detailed planning and control.
Q2) At the beginning of the semester,you decide to devote 12 hours a week outside of class time to your operations management studies,regardless of scheduled tests,assignments,or project due dates.This is a level plan approach to your favorite course.
A)True
B)False
Q3) Offloading is part of a level strategy employed by services.
A)True
B)False
Q4) Planning values are used in bottom-up planning,but cannot be used in top-down planning.
A)True
B)False
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Q5) How can and why should a firm link S&OP throughout the supply chain?
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Chapter 12: Managing Inventory Throughout the Supply Chain
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Q1) Tata Motors assembles cars from their own parts and subassemblies and also controls the mining and fabrication of the materials used to create those parts.When Anand ordered their luxury sedan with the platinum dashboard he knew he wouldn't be taking delivery of his dream car the next week.Rather,he would be waiting a while thanks to:
A)a mismatch between supply chain lead time and customer demand.
B)a mismatch between overall demand levels and productive capacity.
C)a mismatch between demand and the most efficient production volume.
D)a mismatch between demand and the most efficient shipment volume.
Q2) Companies do not plan to use safety stock.
A)True B)False
Q3) Cycle stock can occur at more than one point in a supply chain.
A)True
B)False
Q4) Cavalier Enterprises elects to hold no safety stock.Their service level is therefore
Q5) A replenishment order for inventory is made when a predetermined stock level is reached in a(n)________ inventory system.
Page 14
Q6) Describe any four types of inventory and the drivers that spur their need.
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Chapter 13: Managing Production Across the Supply Chain
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Q1) Material requirements planning is used to manage independent demand inventory.
A)True
B)False
Q2) Explain in layman's terms all of the information that is provided by a master schedule.
Q3) Which of the following statements regarding master production scheduling calculations is BEST?
A)Forecasted demand always exceeds booked orders.
B)Booked orders always exceed forecasted demand.
C)If booked orders are greater than forecasted orders,there must be a master production schedule for that period.
D)If ending inventory is greater than or equal to zero,there is no master production schedule quantity for that period.
Q4) RFID tags can be used instead of a bar code system to trace the movement and location of materials.
A)True
B)False
Q5) For a given job,the amount of processing time remaining divided by the amount of time until the job is due is its ________.
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Chapter 14: S Supply Chain Information Systems
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Sample Questions
Q1) An execution and transaction processing level system that is used throughout the supply chain is a(n):
A)CRM system
B)DS system.
C)ERP system.
D)SRM system
Q2) Enterprise resource planning applications span the supplier,customer,and internal supply chain areas.
A)True
B)False
Q3) The purpose of the execution and transaction processing supply chain activities is to record and retrieve data and execute and control physical and monetary flows.
A)True
B)False
Q4) Which of these supply chain activities is the most day-to-day,routine activity?
A)control of monetary flows
B)capacity decision
C)warehouse location
D)workforce leveling
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Chapter 15: Jitlean Production
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Q1) Just-in-time production is also referred to as ________.
Q2) Companies employing the Lean philosophy use only kanban as a production control method.
A)True
B)False
Q3) The analogy of rocks in a river is often used when discussing Lean principles.In the analogy,the rocks represent ________ while the water represents ________.
Q4) In a two-card kanban system:
A)the production card signals when a move card should be moved to the next process step.
B)the move card signals when a container of parts should be produced.
C)the production card signals when a container that held parts should be returned to inventory.
D)the move card signals when a container of parts should move to the next process step.
Q5) ________ combines the focus on waste reduction with the discipline of define,measure,analyze,improve,and control.
Q6) The number of kanbans in a production system is inversely related to the ________.
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Chapter 16: Managing Projects
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Q1) For critical path activities,slack is ________.
Q2) Discuss the recent business trends that have increased the attention and interest in project management skills.
Q3) How many days can this project be shortened if money is no object?
A)6 days
B)9 days
C)10 days
D)13 days
Q4) Performance or time targets for each major group of activities in a project are set during the planning phase of a project.
A)True
B)False
Q5) A performance or time target for each major group of activities in a project is a(n)________.
Q6) You have been given a budget of $2500 and instructed to complete the project as quickly as you can using that amount.Which activities do you expedite and what is the final cost and project duration?
Q7) What are the phases of a project and the activities within each?
Q8) An activity's length added to its early start time yields the ________.
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Chapter 17: Developing Products and Services
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Q1) The operations and supply chain functions develop detailed process maps of the operations and supply chain flows and test new processes in the:
A)concept development phase.
B)planning phase.
C)design and development phase.
D)commercial preparation phase.
Q2) How does quality function deployment work and what advantages are accrued when it is used?
Q3) In the planning phase,the operations and supply chain function develops initial cost estimates and identifies key supply chain partners.
A)True
B)False
Q4) An airline specifies a wider monitor for installation on their overseas flights.The airframe manufacturer will accommodate this order by issuing an engineering change.
A)True
B)False
Q5) What are robust design,testability,and serviceability and how are they related?
Q6) In ________,the supplier works with the customer to jointly design the product.
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