Question 1. ___________ refers to breaking a homogeneous supply into smaller lots.

Select one:

a. Allocating

b. Accumulating

c. Assorting

 d. Sorting out

Question 2. Which channel covers the movement of title to the goods?

Select one:

a. promotions

b. logistics

c. finance

 d. ownership

Question 3. ___________ utility refers to having products available where they are needed by
customers.

Select one:

a. Form

b. Time

c. Place

 d. Possession

Question 4. How well a company does what it says its going to do represents ___________.

Select one:

 a. effectiveness

b. efficiency

c. productivity

d. quality
Question 5. Logistics managers use the ___________ approach to coordinate materials management
and physical distribution in a cost-efficient manner.

Select one:

 a. total cost

b. supply chain

c. intrafunctional logistics

d. balanced

Question 6. Electronic data interchange (EDI) is no longer an important logistics technology in the
twenty-first century.

Select one:

 a. FALSE

b. TRUE

Question 7. Which of the following is not a potential benefit of transportation management systems
(TMS)?

Select one:

a. reduced fuel consumption

 b. decreased empty vehicle miles

c. fewer stockouts

d. reduced transportation expenditures

Question 8. The Internet has emerged as the measuring stick for logistics information technology during
the first decade of the twenty-first century.

Select one:

a. TRUE

 b. FALSE

Question 9. __________ provide effective ways to process organizational business data, to perform
calculations, and to create documents.
Select one:

a. Enterprise resource planning (ERP) systems

 b. Office automation systems

c. Transaction processing systems

d. Decision support systems

Question 10. ___________ help various stakeholders employers, suppliers, customers work ...

Select one:

a. Transaction processing systems

b. Office automation systems

 c. Communication systems

d. Decision support systems

Question 11. ___________ refers to the integration of Six Sigma and the Lean approach.

Select one:

a. ISO 9000

b. Lean Six Sigma

 c. Quality management

d. Supply chain management

Question 12. ___________ complexity refers to the growing number nodes and the associated changes
to the links in the logistics system.

Select one:

a. Process

b. Range

 c. Network

d. System
Question 13. A ___________ organizational design attempts to create an organization that is responsive
to the parameters of the contemporary business environment.

Select one:

a. matrix

b. unified

c. decentralized

 d. network

Question 14. In a ___________ logistics structure, logistics activities are managed in multiple
departments throughout an organization.

Select one:

a. matrix

 b. fragmented

c. decentralized

d. unified

Question 15. ___________ refers to an organization making their unused resources available to other
organizations.

Select one:

a. Flexibility

b. Responsiveness

c. Excess capacity

 d. Sharing economy

Question 16. ___________ can be defined as an organizations ability to address unexpected...

Select one:

 Flexibility

b. Accommodation

c. Responsiveness

d. Relevancy
Question 17. A ___________ logistics organization implies that the corporation maintains a single
logistics department that administers the related activities for the entire company from the home office.

Select one:

a. unified

b. hierarchical

 c. centralized

d. command-and-control

Question 18. One problem with a ___________ logistics structure is that because logistics activities are
scattered throughout a firm, they likely remain subservient to the objectives of the department in which
they are housed.

Select one:

 a. fragmented

b. matrix

c. decentralized

d. hierarchical

Question 19. The quality concept that emphasizes the elimination of business errors is known as
___________.

Select one:

a. benchmarking

 b. Six Sigma

c. the Lean approach

d. zero tolerance

Question 20. Which of the following is an advantage of a decentralized logistics organization?

Select one:

 It can be responsive to customer service requirements.

b. It can be less expensive than a centralized organization.

c. There are good opportunities for freight consolidation.

d. There is better control over company data.

Question 21. Which of the following is an advantage of a centralized logistics organization?

Select one:

 a. It has good opportunities for freight consolidation.

b. It can be responsive to customer service requirements.

c. It is easier to manage than a decentralized organization.

d. It can be less expensive than a decentralized organization.

Question 21. In a ___________ logistics structure, multiple logistics activities are combined into, and
managed as, a single department.

Select one:

a. hierarchical

 b. unified

c. centralized

d. matrix

Question 23. A primary advantage of ___________ logistics is its relative efficiency, whereas a primary
advantage of ___________ logistics is its customer responsiveness.

Select one:

a. fragmented; centralized

b. unified; decentralized

 c. centralized; decentralized

d. unified; fragmented

Question 24. A(N) ___________ logistics organization means that logistics-related decisions are made
separately at the divisional or product group level.

Select one:

a. fragmented
b. flexible

c. agile

 d. decentralized

Question 25. ___________ refers to satisfying current and emerging customer needs.

Select one:

a. Accommodation

b. Flexibility

 c. Relevancy

d. Responsiveness

Question 26. A key attribute of network organizational design is a shift from ___________ to
___________.

Select one:

a. decentralization; centralization

b. process; function

c. centralization; decentralization

 d. function; process

Question 27. ___________ organizational design has its foundations in the command-and-control
military operation, where decision making and communication often follow a top-down flow.

Select one:

a. Unified

b. Centralized

 c. Hierarchical

d. Matrix

Question 28. What is the most important purpose of warehouse work rules?

Select one:

 a. to keep employees from engaging in unproductive and potentially destructive activities

b. to give managers control over warehouse workers

c. to protect companies from union grievance procedures

d. to control pilferage
Question 29. __________ is a set of generic standards used to document, implement, and demonstrate
quality management and assurance systems.

Select one:

a. Benchmarking

 b. ISO 9000

c. Six Sigma

d. ISO 14000

Question 30. Productivity improvement efforts in logistics are often directed toward ___________.

Select one:

 a. increasing output while holding input constant

b. reducing input while increasing output

c. reducing input while holding output constant

d. increasing output by a greater percentage than inputs are increased

Question 31. What concept refers to when firms consider all the costs that can be assigned to the
acquisition, use, and maintenance of a purchase?

Select one:

 a. activity-based costing

b. total cost of ownership

c. cost trade-offs

d. the systems approach

Question 32. Kraljics Portfolio Matrix ___________.

Select one:

a. is synonymous with the total cost of ownership

b. provides a framework for evaluating warehousing decisions

 c. is used by many managers to classify corporate purchases in terms of their importance and
supply complexity

d. allows managers to evaluate whether to add, or not add, product lines

Question 33. Strategic sourcing involves an increased focus on identifying and using data internally and
across the supply chain so that a company can consolidate its purchasing power for enhanced value.

Select one:

a. FALSE

 b. TRUE

Question 34. First and foremost, procurements objectives must manage the purchasing ...

Select one:

 FALSE

b. TRUE

Question 35. Buying the right products, at the right price, from the right source, at the right
specifications, in the right quantity, and for delivery at the right time to the right internal customer is
associated with what procurement objective?

Select one:

 a. supporting operational requirements

b. supporting organizational goals and objectives

c. managing the supply base

d. managing the purchasing process effectively and efficiently

Question 35. What is the first step in a global sourcing development model?

Select one:

a. problem recognition

 b. planning

c. specification

d. situation analysis

Question 37. The final step of the supplier selection process is to evaluate the decision.

Select one:

 a. TRUE

b. FALSE
Question 38. What is the first step in supplier selection and evaluation?

Select one:

a. Identify the need for supply.

b. Prepare a procurement budget.

c. Prepare a request for proposal.

 d. Identify possible suppliers.

Question 39. A contemporary procurement manager might have responsibility for reducing cycle times
and for generating additional revenues by collaborating with the marketing department.

Select one:

a. FALSE

 b. TRUE

Question 40. With respect to the supplier selection and evaluation process, ___________ looks at both
the internal and external environment within which the supply decision is to be made.

Select one:

a. Identify the need for supply.

 b. Perform a situation analysis.

c. Evaluate suppliers.

d. Identify suppliers.

Question 41. There are three primary methods that organizations can pursue when attempting to
integrate their supply chains. Which of the following is not one of them?

Select one:

a. vertical integration

b. formal contracts

c. informal agreements

 d. centralized organization

Question 42. Supply chain collaboration can be classified as transactional, strategic, or ___________ in
nature.

Select one:

a. managerial
b. operational

 c. tactical information sharing

d. relational

Question 43. ___________ collaborations offer the best opportunity for improving supply chain
performance.

Select one:

a. Tactical information sharing

b. Transactional

 c. Strategic

d. Operational

Question 44. What is a perfect order?

Select one:

a. order that is easy for the receiver to fill

 b. simultaneous achievement of relevant customer metrics

c. order that arrives undamaged

d. order that arrives on time

Question 45. Two key factors, ___________ and ___________, have sparked much of the technological
change affecting supply chains.

Select one:

a. Internet, electronic data interchange

b. electronic data interchange; enterprise resource planning

 c. computing power; Internet

d. computing power; enterprise resource planning

Question 46. Customer relationship management, supplier relationship management, order fulfillment,
and returns management are processes associated with the ___________.

Select one:

a. Supply Chain Efficiency (SCE) Model

b. Process Classification Framework (PCF)

 c. Global Supply Chain Forum (GSCF) Model

d. Supply Chain Operations Reference (SCOR) Model

Question 47. What concept can be viewed as a combination of processes, functions, activities,
relationships, and pathways along which products, services, information, and financial transactions
move in and between enterprises from original producer to ultimate end user or consumer?

Select one:

a. interorganizational coordination

b. marketing channel

 c. supply chain

d. logistics

Question 48. An organizations ability to respond to changes in demand with respect to ...

Select one:

a. responsiveness

b. relevancy

c. leanness

 d. agility

Question 49. Source, plan, make, and enable are processes associated with the ___________.

Select one:

a. Supply Chain Efficiency (SCE) Model

b. Global Supply Chain Forum (GSCF) Model

 c. Supply Chain Operations Reference (SCOR) Model

d. Process Classification Framework (PCF)

Question 50. What concept refers to the variability in demand orders among supply chain participants?

Select one:

 a. bullwhip effect

b. order fluctuation
c. unpredictability

d. agile supply chain

Question 51. Discuss how a minor change in demand at the retail level can significantly impact supply
chain variation at distributors, manufacturers, and suppliers.

Minor change in demand at the retail level causes bullwhip effect in the supply chain. Demand forecast
are hardly accurate at the retail level. Organization utilizing some amount of safety stock to account for
fluctuation in demand. When demand increases beyond the capabilities of the safety stock reserve of
the distributors they consequently offset this to the manufacture. It turns and shares the burden with
the material suppliers. Moreover, in every step in the process the magnitude of the shock in demand
increases exponentially.

Question 52. Suppose you were asked to advise a domestic firm in your region. Identify critical value
propositions that the firm uses to compete domestically. Using the value propositions that you have
identified, develop and rationalize an argument for the firm to increase its global operations based on
the points identified in Table below.

Value proposition refers to the special feature of the product to attract a large number of customers.
Through the addition of more value, a better solution can be offered to the customers compared to
customers. The value proposition helps the firm to compete in the domestic market. The factors that
help a firm to effectively compete are:

Reduce uncertainty

Low cost

Economies of scale

Reducing uncertainty: Firm can reduce uncertainty by maintaining consistency in production and
reaching the goal in an effective manner. Uncertainty is caused by tariff rates, currency exchange rate
and change in trade. These changes will not affect the firm. Thus, it increases operation at a domestic
level without any obstacles.

Low cost: It helps in reducing the price of products offering a competitive advantage to the firm in the
domestic market. It increases the profit creating huge scope for firms in expansion into a different
market.
Economies of scale: It supports an organization in reducing the per-unit price of the product increasing
production capacity. It helps in increasing operation at domestic level by meeting the market demand
efficiently.

Therefore, the above factors help the firm to increase the market in domestic level.

Question 53. Canadian Tire is one of Canada’s largest companies. They operate four large distribution
centers service over 470 tire retail outlets. They recently installed a Yard Management System (YMS),
which they have integrated with their Warehouse Management Systems (WMS) and Transport
Management System (TMS) systems. Their expectation was improved performance in over-the-road
transportation equipment utilization, driver productivity, and warehouse dock/door utilization. As a
relatively new logistics employee, you have been asked to develop an evaluation system to measure
operational productivity improvement. While management does not want a financial impact evaluation,
they are interested in developing benchmarks to measure initial and sustainable productivity
improvement. You have the job-how would you proceed?

The main focus of the company is performance improvement and driver productivity. It also expects to
be benefited and develop a benchmark for sustainable productivity improvement. The primary focus
will be on analysing the current situation of the company. It helps in understanding about problems
within the organisation and reason for highly dissatisfied customers. After analysing the current
situation, another step is to set objectives. I will develop KPI for three systems for assessing the
performance. Achievement of an objective is a challenging thing. I would prefer to redesign the
warehouse for customizing workflow and to ensure effective allocation of inventory. It supports the
warehouse manager to maximise warehouse space and reduce account for seasonal inventory variance.
Multiple employees will be assigned in the put-away and receipt of sizeable inbound shipment for
reducing transcription errors. A project team leader will be assigned to ensuring the success of the
project. Likewise, orders and shipment will be monitored daily. Driver performance and space utilisation
will be measured to have a successful performance. Thus, I believe the approach can improve the
performance of the company.

Question 54. Using television receivers as an example, how could three different brands be perceived by
different consumers as being the best quality brand in the market?

Logistics is the mechanism by which product and service movements are scheduled, organised, and
carried out. It is one of every company's critical functions because no business can carry out commercial
operations without appropriate logistics. Among the key factors that consumers prefer is the quality of
the product. Through consumer wishes to provide the highest standard of the merchandise. The
standards for describing a commodity as of high quality, however, vary from individual to individual. The
quality of a product is also based upon the perception of the product in the minds of consumers. Three
different brands of a similar product might be considered to have the best quality. Each customer has a
different preference regarding the TV features that they consider to be the best quality. Any customers
consider a business that produces its goods with specific desirable exterior characteristics as the best
standard as it has characteristics that some do not have. Other customers prefer to have a TV with the
best monitor resolution, image clarity and speed. In comparison, many consumers view a company and
its goods as being of the highest standard in terms of longevity and reliability.

Question 55. Explain how constraints in manufacturing are interrelated with a company's decisions
regarding volume and variety.

Volume and variety offer every business the manufacturing competency. Volume lets a company reap
the benefits of economy of scale. Variety reflects the number of combinations of the goods that can be
made. This reflects operation versatility, recognized as an economy of scope. In the situation of capacity
constraint, it might be difficult to reach the demonstrated capacity for meeting volume objectives. On
the other hand, variety represents a different range of product that can be manufactured in a
manufacturing process. It highlights the flexibility in the process through switching production to
another product from one product in the process of retaining the economy of scope. Variety can also be
affected by equipment constraint led by different available equipment and sequence of work. Similarly,
changeover constraint might also affect a variety of flexibility. Thus, a firm should evaluate different
types of constraint before making any decision on variety and volume.

Question 56. Please read this case study and answer the questions below.

1. List and discuss the benefits and shortcomings of acquiring a two-wheeled trailer for individually
store to use for delivering Super Gyms.

As the store operates in various states, it is very important to look after the motor vehicle and insurance
requirement at each state. The benefit is that deliveries will be under the control of each respective
store. Shortcomings can be related to labour cost, if two workers are needed for making the delivery.
Moreover, the store employee might have to assist in the assembly of the gym.

2. List and discuss the benefits and drawbacks of having local trucking companies transport the Super
Gym from the retail store to customers.

There is no disadvantage associated with the use of local trucking companies for making a delivery.
Difficulty can arise at handling the truck charges.
3. List and discuss the benefits and drawbacks of stocking Super Gyms at the distribution centres and
then having the truck that makes deliveries from the distribution centre to the retail stores also make
deliveries of Super Gyms to individual customers.

The major problem is on the size of the equipment. The large tractor might not be suitable for making
home delivery. It might increase the actual cost of using a truck. Saving in inventory can be achieved by
stocking the gyms at the distribution centre instead of a retail store.

4. List and discuss the benefits and drawbacks of invoicing customers for home delivery if they cannot
carry home the Super Gym.

The benefit that can be obtained for charging home delivery is the reimbursement of the cost. But, the
increment in customer purchase cost by addition of home delivery cost might reduce the demand of
customers.

5. What alternative would you prefer? Explain your reasons.

Any alternative can be chosen based on personal perspectives. But the analysis and interpretation of
case show that local trucking company and charging of customers for home delivery must be preferred.