Logistics Management Exam
Materials
Course Introduction
Logistics Management explores the processes involved in planning, implementing, and controlling the efficient flow and storage of goods, services, and information from the point of origin to the point of consumption. The course covers key concepts such as supply chain management, transportation, inventory control, warehousing, procurement, distribution strategies, and the integration of technology in logistics. Students will analyze case studies and develop practical skills in optimizing logistical operations, reducing costs, improving customer service, and supporting organizational objectives in a global marketplace.
Recommended Textbook Operations Management 5th Canadian Edition by William J. Stevenson
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Page 2
Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management.
A)True
B)False
Answer: True
Q2) The impact of globalization for manufacturing companies has been reduced reliance on long international supply chains because of the increasing cost to ship components and finished goods to foreign markets.
A)True
B)False
Answer: False
Q3) Which of the following is not true about the systems approach?
A) It recognizes the importance of taking into account the impact on all parts of the system.
B) It emphasizes interrelationships among subsystems.
C) It concentrates on efficiency within subsystems.
D) It becomes essential whenever something is being redesigned or improved.
E) The objectives of the whole take precedence over those of any one part.
Answer: C
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Page 3
Chapter 2: Competitiveness, Strategic Planning, and Productivity
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Sample Questions
Q1) Tracking productivity measures over time enables managers to judge organizational performance and to decide where improvements are needed.
A)True
B)False
Answer: True
Q2) Strategies have a(n)__________ impact on the general direction and basic character of a company.
A) long-term.
B) medium-term.
C) short-term.
D) insignificant.
E) tactical.
Answer: A
Q3) A mission statement should provide a guide for the formulation of strategies for the organization.
A)True
B)False
Answer: True
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Chapter 3: Demand Forecasting
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Sample Questions
Q1) What is the forecast for this year using the least squares trend line for these data?
A) 163
B) 180
C) 300
D) 420
E) 510
Answer: B
Q2) The naive approach to forecasting requires a linear trend line.
A)True
B)False
Answer: False
Q3) A seasonal relative (or seasonal indexes)is expressed as a percentage of the average or trend in a time series.
A)True
B)False
Answer: True
Q4) What is this year's forecast using exponential smoothing with alpha = .25,if last year's smoothed forecast was 45?
Answer: 46
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Chapter 4: A: Product Design
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Sample Questions
Q1) Reliability refers to the ability of a product to perform its intended function under extreme,abnormal conditions.
A)True
B)False
Q2) Designing production processes includes building prototypes of processes and revising the process if necessary.
A)True
B)False
Q3) Delayed differentiation and modular design are tactics for mass customization.
A)True
B)False
Q4) Standardization refers to the extent to which there is absence of variety in a part or product.
A)True
B)False
Q5) Design for assembly means focusing on reducing the number of parts in a product and the methods for putting it together.
A)True
B)False
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Chapter 4: B: Product Design
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Sample Questions
Q1) One of the solar instruments on a satellite has three major parts which must all operate.Two have reliabilities of .7,and the other has a reliability of .9.In case the system fails,there is an identical backup system which kicks on automatically.The overall reliability of the system,including the backup,is closest to:
A) .40
B) .50
C) .60
D) .70
E) .80
Q2) One operational definition of reliability is the probability that a product or system will function when activated.
A)True
B)False
Q3) A life monitoring system can operate an average of 15 months between failures.Determine these probabilities:
(i)a failure within 12 months of the previous failure
(ii)a failure between 12 and 18 months after the previous failure
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Chapter 5: A: Strategic Capacity Planning
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Sample Questions
Q1) If the office space at this new location has design and effective capacities of 10,000 and 8,000 recruits processed annually,respectively,and 6,000 recruits will be processed per year,what will be the utilization of the office space?
A) 50%
B) 60%
C) 75%
D) 80%
E) 100%
Q2) As utilization increases the number of jobs/people waiting in an operating system decreases.
A)True
B)False
Q3) An alternative will have fixed costs of $10,000 per month,variable costs of $50 per unit,and revenue of $70 per unit.The break-even point volume is:
A) 143
B) 200
C) 350
D) 500
E) none of these.
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Chapter 5: B: Strategic Capacity Planning
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Sample Questions
Q1) Influence diagrams contain more detailed information than decision trees.
A)True
B)False
Q2) A sensitivity analysis graph:
A) provides the exact values of the range of probability for the optimal alternative.
B) is useful for a maximum of three alternatives.
C) is useful when the probabilities of payoffs are known.
D) provides a visual indication of the range of probability for the best alternative.
E) All of the choices are correct.
Q3) A decision tree is:
A) an algebraic representation of alternatives.
B) a behavioural representation of alternatives.
C) a matrix representation of alternatives.
D) a graphical representation of alternatives.
E) a horticultural representation of alternatives.
Q4) In an influence diagram,the circles show chance events.
A)True
B)False
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Chapter 6: A: Process Design and Facility Layout
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Sample Questions
Q1) For output to equal projected demand,what will be the last task performed at the second workstation of the production line which uses the minimum number of workstations?
A) U
B) V
C) W
D) X
E) Y
Q2) As a general rule,continuous processing systems produce products for a high volume of standardized output.
A)True
B)False
Q3) A process layout is more susceptible to shutdowns caused by equipment breakdowns than a product layout.
A)True
B)False
Q4) For eight hours of operating time per day and a desired output rate of 960 units per day,what is the percentage of idle time for the balance which uses the minimum number of stations?
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Chapter 6: B: Process Design and Facility Layout
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Sample Questions
Q1) The owner of Crackers,Inc.produces two kinds of crackers: Deluxe (D)and Classic (C).She has a limited amount of the three ingredients used to produce these crackers available for her next production run: 4,800 ounces of sugar; 9,600 ounces of flour,and 2,000 ounces of salt.A box of Deluxe crackers requires 2 ounces of sugar,6 ounces of flour,and 1 ounce of salt to produce; while a box of Classic crackers requires 3 ounces of sugar,8 ounces of flour,and 2 ounces of salt.Profits for a box of Deluxe crackers are $0.40; and for a box of Classic crackers,$0.50.What is the objective function?
A) Z = $0.50 D + $0.40 C
B) Z = $0.20 D + $0.30 C
C) Z = $0.40 D + $0.50 C
D) Z = $0.10 D + $0.20 C
E) Z = $0.60 D + $0.80 C
Q2) The value of an objective function decreases as it is moved away from the origin. A)True
B)False
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Chapter 7: A: Design of Work Systems
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Sample Questions
Q1) Job enlargement involves an increase in the level of employee responsibility for planning and coordinating tasks.
A)True
B)False
Q2) Specialization is a primary point of disagreement between the efficiency and behavioural approaches to job design.
A)True
B)False
Q3) What is the standard time (ST)for this task if the employee worked at a 20% faster pace than is average and an allowance of 25% of job time is used?
A) 40 seconds
B) 50 seconds
C) 53.3 seconds
D) 60 seconds
E) 64 seconds
Q4) Efficiency generally declines after a work break.
A)True
B)False
Q5) What is the observed time for this task?
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Chapter 7: B: Design of Work Systems
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Sample Questions
Q1) How long would a job with a 70 percent learning curve and a time of 20 hours for the first unit require (approximately,in hours)for the third unit?
A) 14
B) 11.4
C) 10
D) 7
E) 4
Q2) Assembly of a radar unit has a learning curve of 80 percent.Estimated time to assemble the second unit is 40 hours.Determine approximately how much time will be required for: (i)the eighth unit (ii)the first ten units
Q3) A job has a 90 percent learning curve associated with it.The second unit of a 25-unit job had a unit time of 36 minutes.What will the total time be for the entire job?
Q4) The decrease in time between the second and fourth units will be equal to the decrease in time between the first and second units.
A)True
B)False
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13
Chapter 8: A: Location Planning and Analysis
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Sample Questions
Q1) What is the composite score for location B?
A) 69
B) 72
C) 75
D) 79
E) 82
Q2) In location planning,land prices,transportation types,and taxes are:
A) regional/country factors.
B) community/site-related factors.
C) market factors.
D) irrelevant factors.
E) none of the choices.
Q3) What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?
A) $280,000
B) $140,000
C) $220,000
D) $300,000
E) $156,000
Q4) For what quantity would you be indifferent between selecting site A or site B?
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Chapter 8: B: Location Planning and Analysis
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Sample Questions
Q1) The transportation model can be used for capacity planning.
A)True
B)False
Q2) Which of the following are assumptions or requirements of the transportation method?
I.Goods are the same,regardless of the source.
II.There must be multiple sources.
III.Minimum quantities must be shipped.
IV.Shipping costs per unit do not vary with the quantity shipped.
A) I and IV only
B) II and III only
C) I, II, and IV only
D) I and III only
E) I, II, III, and IV
Q3) The transportation model assumes transportation cost per unit is the same regardless of the number of units shipped.
A)True
B)False
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15
Chapter 9: Management of Quality
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Sample Questions
Q1) Which of the following is not an example of an external failure cost?
A) Warranty claims
B) Handling complaints
C) Loss of customer goodwill
D) Scrap and rework during production
E) Price discounts to offset inferior quality
Q2) According to the text,the typical difference between "quality circles" and "continuous improvement teams" is that:
A) quality circles are more structured and formal.
B) continuous improvement teams only work on product design whereas quality circles focus on both product and process design.
C) continuous improvement teams use only engineers while quality circles use just the workers doing the work
D) quality circles tend to have less authority.
E) there is no difference-they are the same.
Q3) The cost of quality includes appraisal costs,failure costs,and prevention costs.
A)True
B)False
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Chapter 10: A: Statistical Quality Control
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Sample Questions
Q1) What is the standard deviation of the sampling distribution of sample means?
A) 5 hours
B) 6.67 hours
C) 10 hours
D) 11.55 hours
E) 20 hours
Q2) If a point on a control chart falls outside one of the control limits,this suggests that the process output is non-random,assignable variation.
A)True
B)False
Q3) The six sigma quality improvement methodology is called:
A) PDSA
B) DMAIC
C) 5W2H
D) continuous improvement system.
E) none of the choices are correct.
Q4) The end of a manufacturing process is always the best place for a quality inspection point.
A)True
B)False
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Chapter 10: B: Statistical Quality Control
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Sample Questions
Q1) A firm that makes plastic wrapping material takes random samples of 50 items from each lot before it is sent to a customer.Lots contain 2,000 items each.Any lot with more than one defective is subjected to 100 percent inspection,and any defectives are replaced with good ones.
(i)Construct the OC curve for this plan.
(ii)Construct the AOQ curve for this plan.What is the approximate AOQ limit?
Q2) The average outgoing quality (AOQ)assumes that lots contain some given proportion defective.
A)True
B)False
Q3) Which one of the following would not be a reason for using acceptance sampling?
A) High cost of passing defectives
B) Large number of items
C) Destructive testing
D) Boredom and fatigue that would accompany complete inspection
E) All of the choices are reasons.
Q4) In a double-sampling plan,a second sample may not be taken if the results of the first sample are conclusive.
A)True
B)False
Page 18
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Chapter 11: Supply Chain Management
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Sample Questions
Q1) The purchasing department interfaces with the accounting,engineering design,and operations functions,along with several other functional areas.
A)True
B)False
Q2) The primary goal of purchasing is to negotiate low prices from an organization's suppliers.
A)True B)False
Q3) The role of ERP systems in supply chain management is limited to inventory planning.
A)True
B)False
Q4) Determining the number,location,and capacity of facilities would be considered one of the tactical/operational activities of supply chain management.
A)True B)False
Q5) An advantage of decentralized purchasing is the attention given to local needs. A)True B)False
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Chapter 12: Inventory Management
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Sample Questions
Q1) The basic EOQ model assumes that the demand varies widely throughout the year.
A)True
B)False
Q2) In the EOQ with quantity discount model,the optimum quantity will always be found on the lowest total cost curve.
A)True
B)False
Q3) Which of the following is not a function of inventory?
A) Allowing for time, while goods are transported
B) Hedging against price increases
C) Preventing decoupling of operations
D) Taking advantage of quantity discounts
E) Preventing shortages
Q4) The purpose of "cycle counting" is to:
A) count all the items in inventory.
B) determine the optimum re-order point.
C) reduce discrepancies between inventory records and actual.
D) reduce theft.
E) none of the choices.
Q5) What is the economic order quantity for this item?
Page 20
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Chapter 13: Aggregate Operations Planning
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Sample Questions
Q1) Aggregate operations planners balance actions that influence:
A) demand and inventories.
B) demand and costs.
C) capacity and inventories.
D) capacity and costs.
E) capacity and demand.
Q2) That portion of projected inventory which enables marketing to make realistic commitments about delivery dates for new orders is:
A) beginning inventory.
B) safety stock inventory.
C) available-to-promise inventory.
D) marketable inventory.
E) None of the choices.
Q3) In order to use the "level output/workforce strategy",variations in demand are met by:
A) varying output during regular time without changing employment levels.
B) keeping output level by changing workforce levels.
C) relying on overtime to adjust capacity.
D) using some combination of inventories, subcontracting and back orders.
E) All of the choices.
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Chapter 14: Material Requirements Planning and Enterprise
Resource Planning
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Sample Questions
Q1) What is the lot size for the second order using the part-period method?
A) 80
B) 150
C) 170
D) 250
E) 230
Q2) A net-change MRP is one that involves periodically updating all aspects of an MRP system.
A)True
B)False
Q3) Safety time is sometimes used in MRP rather than safety stock.
A)True
B)False
Q4) ERP involves software that is used to manage and coordinate all the resources,information,and functions of an organization from a shared database.
A)True
B)False
Q5) Independent demand tends to be more sporadic or "lumpy" than dependent demand.
A)True
B)False Page 22
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Chapter 15: A: Just-In-Time and Lean Production
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Sample Questions
Q1) Reductions in setup time are necessary to make a JIT system feasible.
A)True
B)False
Q2) In JIT/lean systems "preventive maintenance" is designed to provide a rapid response after a breakdown has occurred to get the equipment back on line as fast as possible.
A)True
B)False
Q3) In the JIT approach,the content,sequence,and timing of employees' work processes are intentionally left flexible to allow for continuous improvement.
A)True
B)False
Q4) The ultimate goal of lean systems is to have:
A) minimal in-process inventories.
B) empowered cross-trained workers.
C) a balanced, rapid flow of materials and products through the system.
D) reduced setup times.
E) small production lot sizes.
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Chapter 15: B: Just-In-Time and Lean Production
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Sample Questions
Q1) The optimum amount of preventive maintenance is where:
A) total breakdown costs are a minimum.
B) total preventive maintenance costs are a minimum.
C) each maintenance component cost is a minimum.
D) total maintenance costs are a maximum.
E) total maintenance costs are a minimum.
Q2) The goal of maintenance is to maintain the productive system in good working order while minimizing:
A) total preventive maintenance costs.
B) total breakdown maintenance costs.
C) total maintenance costs.
D) the difference between preventive and breakdown costs.
E) the ratio of breakdown to preventive maintenance costs.
Q3) Ideally,preventive maintenance will be performed just prior to a breakdown or failure.
A)True B)False
Q4) The cost of replacement is not considered as part of maintenance analysis. A)True B)False
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Chapter 16: Job and Staff Scheduling
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Sample Questions
Q1) The output of the system is limited by the output of the bottleneck operation(s).
A)True
B)False
Q2) The sequence that would result using the SPT rule is:
A) e-b-c-d-a.
B) c-a-b-e-d.
C) a-d-c-e-b.
D) d-e-b-a-c.
E) e-d-b-a-c.
Q3) If these jobs were scheduled in the sequence shown,what would be the make-span?
Q4) The shortest processing time (SPT)rule minimizes downstream idle time.
A)True
B)False
Q5) In developing the sequence which will minimize make-span,what is the initial job to be placed in the schedule sequence?
Q6) What is the schedule sequence using the earliest due date (EDD)priority rule?
Q7) In developing the sequence that will minimize make-span,where in the schedule sequence should the job W be placed?
Q8) What is the sequence which will minimize make-span?
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Chapter 17: Project Management
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Sample Questions
Q1) What is the estimated slack time for the path B-D-F?
A) 0 days
B) 30 days
C) 40 days
D) 50 days
E) 100 days
Q2) A hierarchical listing of what must be done during the project is called:
A) work breakdown structure (WBS).
B) program evaluation and review technique (PERT).
C) planning matrix.
D) crashing.
E) critical path method (CPM).
Q3) The path in a PERT/CPM precedence network with the fewest activities and shortest duration is referred to as the critical path.
A)True
B)False
Q4) In crashing this project,which activity is the first to be reduced?
Q5) The path in a precedence network with the longest duration is the critical path.
A)True
B)False
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Chapter 18: A: Waiting-Line Analysis
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Sample Questions
Q1) What is the average number of machines down with one operator?
A) 1.49
B) 3.35
C) 4.40
D) 6.65
E) 8.51
Q2) What is the overall average arrival rate?
Q3) In an infinite source model,the average time in line is equal to the average number of customers in line divided by the average arrival rate.
A)True
B)False
Q4) Why is there waiting in a queue even if the service capacity exceeds the average demand on the system ?
A) Poor scheduling
B) Slow service
C) Low utilization
D) Variability in arrival and service rates
E) Multiple phase processing
Q5) What is average time in line for a high priority item?
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Chapter 18: B: Waiting-Line Analysis
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Q1) The purpose of running experiments on a simulation model is to answer "what if" questions.
A)True
B)False
Q2) Simulation enables a decision maker to experiment with a system and observe its behaviour.
A)True
B)False
Q3) An analyst wants to simulate observations from a Normal distribution that has a mean of 41 and a standard deviation of 3.The analyst draws a random number from a normally distributed table of random numbers.The random number is -2.00.The simulated value is:
A) 31
B) 35
C) 38
D) 43
E) none of the choices are correct.
Q4) Simulation is basically an optimizing technique.
A)True
B)False
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