Logistics Management Study Guide Questions
Course Introduction
Logistics Management is the strategic organization and coordination of the movement, storage, and flow of goods, services, and information throughout the supply chain. This course explores the principles and practices of logistics, including transportation, warehousing, inventory management, order fulfillment, and distribution systems. Students will learn how effective logistics management enhances customer satisfaction, reduces costs, and delivers value to organizations. The course also examines global logistics challenges, technological advancements, and sustainability considerations, providing a comprehensive foundation for understanding the critical role logistics plays in both manufacturing and service industries.
Recommended Textbook
Managing Operations Across the Supply Chain 2nd Edition by Morgan Swink
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19 Chapters
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527 Flashcards
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Page 2
Chapter 1: Introduction to Managing Operations Across the Supply Chain
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Sample Questions
Q1) During the "mass production" era, operations management focused primarily on:
A)Production and design.
B)Internal production.
C)The global supply chain.
D)Sales, production and design.
Answer: B
Q2) Physical goods can be differentiated from services in the operations management process by:
A)Longer lead times and they can be inventoried.
B)More capital intensive and short lead times.
C)More labor intensive and longer lead times.
D)More expensive and easier to control.
Answer: A
Q3) A process is:
A)A set of planned steps used to achieve an objective.
B)A system of activities that transforms inputs into valuable outputs.
C)A system of decisions.
D)A combined effort by people who want to get something done.
Answer: B
Page 3
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Chapter 2: Operations and Supply Chain Strategy
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Sample Questions
Q1) Which of the following is NOT considered a key characteristic of a core capability:
A)It is based on factors that are rare or unique to the firm.
B)It is hard to imitate.
C)It does not need to be extendable to many market opportunities.
D)There are few substitutes for it.
Answer: C
Q2) Corporate strategic planning involves decisions related to:
A)What businesses should we be in?
B)What specific product- and market-based initiatives and goals should we establish?
C)What measures should we use to control strategic initiatives?
D)All of these.
Answer: A
Q3) Which of the following is NOT a component of the business model?
A)Critical customer
B)Value proposition
C)Desired outcome statement
D)System capabilities
Answer: C
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4
Chapter 3: Managing Processes and Capacity
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Sample Questions
Q1) Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?
A)15 percent
B)50 percent
C)85 percent
D)100 percent
Answer: C
Q2) A short-term, highly focused effort for improving a process is known as a:
A)Jidoka Event.
B)Kaizen Event.
C)Chaebol Event.
D)Poka-yoke Event.
E)Enchilada Event.
Answer: B
Q3) One implication of increased utilization in a process is that:
A)Process cost typically will go up.
B)Waiting time typically will go up.
C)Variance typically will be reduced.
D)All of these.
Answer: B
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Chapter 3: Extension: Process Mapping and Analysis
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Sample Questions
Q1) Production planning and scheduling is most likely to be associated with which of the following activities?
A)Operation
B)Inspections
C)Storages
D)Transportation
Q2) Which of the following is an example of an activity that is "necessary but not value-adding"?
A)Scheduling
B)Processing
C)Inspections
D)Setups
Q3) After you have drawn the "current state" process map, you decide that you need a tool for showing the actual moves of material (and their locations) that take place in the manufacture of WidgetA. Which of the following tools would be most appropriate?
A)A "future state" map
B)A process flow table
C)An assembly process chart
D)A physical layout diagram
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Page 6
Chapter 4: Productprocess Innovation
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Sample Questions
Q1) Cross-functional integration is needed in innovation projects because:
A)Everyone deserves to have a voice in the design of a new product.
B)It is cheaper to solve problems uncovered early in development.
C)Process design decisions are dependent on product design decisions.
D)Both B and C are correct.
Q2) Sequential product development projects are likely to have ____________ development costs and ____________ development times than concurrent engineering product development projects.
A)Higher; longer
B)Higher; shorter
C)Lower; longer
D)Lower; shorter
Q3) The stage of the product life cycle in which process innovation becomes an important way to increase efficiencies is:
A)Launch
B)Growth
C)Maturity
D)Decline
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7
Chapter 5: Manufacturing and Service Process Structures
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Sample Questions
Q1) Compared to a functional layout, cellular layouts have:
A)Less work-in-process inventory.
B)More complexity in scheduling.
C)More frequent setups.
D)Lower efficiency.
Q2) Wanda Corp. currently uses a job shop process. It wants to maintain the advantages of this but increase efficiency. Wanda should investigate:
A)Cellular manufacturing.
B)Job shop processes.
C)Mass customization.
D)Project process.
Q3) A company needs to produce 400 units per day (the day is defined as 12 hours of production). There are three tasks to be completed, with a total task time for all three tasks of 6 minutes. The company should have:
A)3 workstations.
B)4 workstations.
C)5 workstations.
D)2 workstations.
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8
Chapter 6: Managing Quality
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Sample Questions
Q1) If a product includes features that customers care most about, we would say that it has high:
A)Conformance quality.
B)Design quality.
C)Reliability.
D)Aesthetics.
Q2) XYZ distribution center receives 1,000 deliveries each day. Arrivals are on time if they are within plus or minus 10 minutes of the targeted arrival. In order to have only 3.4 late or early arrivals per million deliveries, what would the standard deviation of arrival times need to be?
A)3.33 minutes
B)0.83 minutes
C)1.67 minutes
D)6.67 minutes
Q3) Which of the following is NOT a core value of TQM?
A)Prevention is better than inspection.
B)Problem solving should occur at the lowest organizational levels possible.
C)Quality assurance managers should have the most power in the organization.
D)Product quality should be viewed holistically.
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Page 9
Chapter 6: Extension: Quality Improvement Tools
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Sample Questions
Q1) A process can be said to be capable when:
A)The C<sub>p</sub> is greater than 1.5.
B)The C<sub>pk</sub> is less than 1.0.
C)The process is perfectly centered within the specification.
D)The C<sub>pk</sub> is greater than 1.5.
Q2) You have been given the following data: Specification information: Anything between 10 and 20 units per order is acceptable.
Process Mean: 13
Upper limit of the process: 16
Lower limit of the process: 10
Using this information, which of the following conclusions is most appropriate?
A) The process is not capable since it is not centered.
B) The process is barely capable but not centered.
C) The process is capable and centered.
D) The process is not capable and centered.
Q3) The Taguchi methods link process design to:
A)Customer expectations.
B)Production availability.
C)Process capability.
D)All of these.
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Chapter 7: Managing Inventories
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Sample Questions
Q1) Johnson Company had beginning inventory of $1,000,000 and ending inventory of $1,200,000. Johnson has determined inventory carrying cost to be 25 percent. Johnson's inventory carrying cost was:
A)$250,000.
B)$275,000.
C)$300,000.
D)None of these.
Q2) Which of the following is NOT a role of inventory?
A)Increasing quality of finished goods
B)Balancing supply and demand
C)Buffering uncertainty in supply or demand
D)Enabling geographical specialization
Q3) If beginning inventory is $1,000,000, ending inventory is $1,400,000, sales are $10,000,000, and anticipated sales are $50,000 per day, what is the days of supply?
A)28 days
B)70 days
C)60 days
D)32 days
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Chapter 8: Lean Systems
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Sample Questions
Q1) Zanadu Corp. produces several different colors of a product on a single production line. It used to take several hours to switch colors, but now Zanadu has found a way to prepare for changing colors in a few minutes. This was most likely accomplished by:
A)TAKT time flow balancing.
B)Implementing andon lights.
C)Converting internal to external setups.
D)Converting external to internal setups.
Q2) Most of the tools and techniques used in lean systems seek to:
A)Reduce variability from the system.
B)Reduce the operator's discretion.
C)Improve product quality.
D)None of these.
Q3) Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production?
A)Emphasis on flexible, cross-trained workers
B)Inspections after each piece is produced
C)Frequent changeovers from one product to another
D)Emphasis on preventive maintenance for equipment
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Chapter 9: Customer Service Management
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Sample Questions
Q1) Which measure of basic service will most likely show poorest performance for a firm?
A)Item fill rate
B)Order fill rate
C)Line fill rate
D)Perfect orders
Q2) Customers who are both low revenue generators and low profit generators for a firm should be:
A)Terminated as customers.
B)Provided with a minimum level of customer service.
C)Reviewed for possible termination or continuation.
D)Treated with customer success relationships to improve revenue and profit.
Q3) A company surveyed both its customers and its senior management about customer expectations. Senior management's perceptions of customer expectations did not match customers' actual expectations. This is an example of:
A)A knowledge gap.
B)A standards gap.
C)A performance gap.
D)A perception gap.
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13
Chapter 10: Sourcing and Supply Management
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Sample Questions
Q1) A legally binding document that signals to a supplier that goods and services are needed is a(n):
A)Purchase requisition.
B)Electronic data interchange.
C)Purchase order.
D)Supplier relationship management document.
Q2) An online auction used for sourcing:
A)Typically drives prices up as suppliers compete against each other.
B)Is used in situations similar to negotiation.
C)Can hurt supplier relationships.
D)Can only consider price.
Q3) Which of the following would NOT be a step in conducting a make/buy analysis?
A)Assessing quantitative costs of outsourcing
B)Evaluating new suppliers who could make the SKU
C)Assessing the relationship of the product to the firm's core competencies
D)Conducting a detailed internal audit of purchasing practices
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14
Chapter 11: Logistics Management
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Sample Questions
Q1) You are shipping 200 diamonds to one customer located 2,000 miles away. The value of a diamond is $1,500. You can ship via air for $500 and the diamonds will arrive in two days, or you can ship via a specialty ground carrier for $250 and the diamonds will arrive in four days. You figure your inventory carrying cost is 25 percent. Your customer will immediately transfer funds to your bank account on receipt of the shipment. Using the air carrier would save approximately how much money in total cost? Use 365 days as the number of days in a year.
A)Nothing, it would actually cost more.
B)$150.00
C)$247.95
D)$160.96
Q2) Jones Company learned that several other shippers in its hometown had customers located in the same markets that it serves. With this information, Jones should investigate the possibility of:
A)Market area consolidation.
B)Scheduled delivery consolidation.
C)Pooled delivery consolidation.
D)All of these.
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Chapter 12: Demand Planning: Forecasting and Demand Management
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Sample Questions
Q1) How does product design affect forecasting accuracy?
A)Postponable product designs remove the need to forecast demand for final product configurations.
B)A popular product design improves the demand volume and forecast.
C)Forecast accuracy is not related to product design.
D)None of the above statements are true.
Q2) An office manager forecasts demand for office stationery by exponential smoothing, with alpha = 0.4. Actual demand two weeks ago (i.e., the week before last) was 12 boxes, but the forecast for that period was only 10. Actual demand last week was 7. What was the forecast for last week?
A)10.8
B)11.0
C)11.2
D)8.2
E)8.8
Q3) Long-term/strategic demand planning is typically done using what units?
A)Total business unit sales
B)Total product family sales
C)Total product item sales
D)Sales at a given location
Page 16
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Chapter 13: Sales and Operations Planning
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Sample Questions
Q1) Generally speaking, the sales function and operations function differ in objectives. Which of the following is NOT one of those differences?
A)Sales prefers detailed forecasts for setting bonuses, operations prefers aggregate forecasts.
B)Sales prefers many product variations, operations prefers few variations.
C)Sales emphasizes revenue, operations emphasizes cost minimization.
D)All of these.
Q2) If a company strongly prefers that its aggregate output plan be closer to a level plan than a chase plan, this implies that it is concerned about minimizing:
A) Inventory carrying costs.
B) Hiring and layoff costs.
C) Cost of subcontracting.
D) Both A and C.
E) Both B and C.
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Chapter 14: Materials and Resource Requirements Planning
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Sample Questions
Q1) Advanced planning and scheduling systems:
A)Use logic similar to the logic found in MRP.
B)Consolidate all business planning systems and data throughout an organization.
C)Integrate materials and capacity planning into one system.
D)A and C
E)All of these.
Q2) Which of the following is NOT included in the information about the inventory records file for an item?
A)Safety stock
B)Preferred order quantity
C)Net requirements
D)Lead time
Q3) If the cumulative lead time is 8 weeks, to be feasible the MPS planning horizon must be:
A)Exactly 8 weeks.
B)At least 8 weeks.
C)Less than 8 weeks.
D)At least 16 weeks.
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18
Chapter 15: Project Management
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Sample Questions
Q1) Nearly all projects seem to go through the same phases and in the following sequence:
A)Planning, definition, execution, completion
B)Definition, planning, delivering, and closing
C)Definition, planning, execution, and completion
D)Selection, planning, delivering and completion
Q2) Task X is expected to take 3 days to complete. The maximum (latest) earliest finish date for any predecessors to task X is 10. Therefore, the earliest finish for task X is:
A)7
B)10
C)13
D)Cannot determine from the information given
Q3) Project manager Bill Jones has determined that task R has a high variation between "best case" and "worst case" estimated durations. Task R is probably a good candidate for:
A)Close monitoring and frequent status reporting.
B)Buffering.
C)Contingency planning.
D)All of these.
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Chapter 15: Extension: Advanced Methods for Project Scheduling
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Sample Questions
Q1) An estimate of the duration of a task that is based on a weighted average of a range of possible task durations is known as:
A)Most likely duration.
B)Expected duration.
C)Worst-case duration.
D)Probabilistic duration.
Q2) The customer has offered a $10,000 bonus if the project is completed within 14 days. What is the probability that the bonus will be earned?
A)Approximately 85 percent
B)Approximately 5 percent
C)Approximately 2.3 percent
D)Approximately 97.7 percent
Q3) If a project path has an expected duration of 10 days and a standard deviation of 3 days, what is the probability that the path will be completed in 10 days or less?
A)0 percent
B)33 percent
C)50 percent
D)75 percent
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Chapter 16: Sustainable Operations Managementpreparing
for the Future
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Sample Questions
Q1) Which of the following environmental initiatives/programs deals most specifically with building design and construction?
A)The Kyoto Protocol
B)Responsible Care
C)ISO 14000
D)LEED certification
Q2) When people and profit intersect, from a sustainability perspective, which of the following areas is most impacted?
A)Equitability
B)Sustainability
C)Bearability
D)Viability
Q3) Which of the following sustainability issues has a significant impact on supply chain relationships?
A)Culture
B)Common usage of lean systems
C)Location
D)Governmental regulations and tariffs
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