Question 1

What is the primary objective of logistics in supply chain management?&#10;A)To help customers meet creditors so that they can fulfill their needs.&#10;B)To move the inventory in a supply chain effectively and efficiently to extend the desired level of customer service at the lowest cost.&#10;C)To plan, decide and sample a new product.&#10;D)None of the above.&#10;

Accepted Answer

A fundamental aim of logistics is to help achieve customer satisfaction. However, there is a limit to the amount that customers will pay for any service, so a realistic aim looks for the best balance between customer service and cost.

Question 2

Logistics management is used as a means to ___________.&#10;A)Maintain and improve the profitability of a manufacturing enterprise&#10;B)Help boost the economy only&#10;C)Effectively deploy available resources&#10;D)Organize the given resources&#10;

Accepted Answer

Logistics management is used as a means to maintain and improve the profitability of a manufacturing enterprise. Conventional improvement of the logistics process is usually only focused on a single element. Nevertheless, from a macro-viewpoint, the improvement can help bring the best profit to the enterprise.

Question 3

At a micro level, logistics works as a bridge between ____________ and _____________.&#10;A)Customers; managers&#10;B)Customer demand; physical supply&#10;C)Customer demand; creditor&#10;D)Manufacturer; firms&#10;

Accepted Answer

At a micro level, logistics work as bridge between customer demand and physical supply. Hence, any productivity improvement in a logistics system reduces the operating costs and allows resources to be deployed to other productive purposes.

Question 4

Logistics management is not required in which of the following industries?&#10;A)Insurance.&#10;B)Rock Music.&#10;C)Cotton Manufacturing.&#10;D)All of the above.&#10;

Accepted Answer

This is easiest to imagine in a manufacturing company, but all of the other fields also use logistics management. When a rock band goes on tour, they carry huge amounts of equipment. Procurement buys everything, transport packs it and moves it to the next destination, receiving makes sure that everything arrives safely, warehousing keeps things safe, materials handling moves things to the stage, and location decides where to perform. An insurance company chooses what kind of branch network to have, where to find offices, who to purchase office equipment and other services from, how to convey information to customers, and so on.

Question 5

Logistics are a vital cost for firms, making up ______ percent of the cost.&#10;A)10&#10;B)25&#10;C)Unable to be calculated.&#10;D)0&#10;

Accepted Answer

It is difficult to calculate the exact cost, because normal accounting conventions do not separate logistics costs from other operating expenditure, and there is always disagreement about which activities to include.

Question 6

What does the term logistics refer to?&#10;A)All attempts to measure and minimize the ecological impact of logistics activities.&#10;B)A chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.&#10;C)A group of organizations and people involved in moving a product or service from supplier to customer.&#10;D)The process of developing, executing, and adjusting procedures for the efficient and effective transportation and storage of goods from the point of origin to the point of consumption.&#10;

Accepted Answer

The process of developing, executing, and adjusting procedures for the efficient and effective transportation and storage of goods, including services and related information, from the point of origin to the point of consumption for the purpose of conforming to customer requirements.

Question 7

The 6 &#34;R&#34; of logistics are:&#10;A)Right Product, Right Storage, Right Quantity, Right Handling, Right Quality, and Right Costs.&#10;B)Right Equipment, Right Place, Right Quantity, Right Production, Right Quality, and Right Distribution&#10;C)Right Area, Right Place, Right Quantity, Right Handling, Right Transport, and Right Storage.&#10;D)Right Product, Right Place, Right Quantity, Right Time, Right Quality, and Right Costs.&#10;

Accepted Answer

The Chartered Institute of Logistics and Transport (CILT) in UK describes logistics as involving "getting the right product to the right place in the right quantity at the right time, in the best condition (right condition) at an acceptable cost (right cost)."

Question 8

What are the key activities required to facilitate the flow of a product from point of origin to point of consumption?&#10;A)Purchasing, producing, allocating, storing, and retailing,&#10;B)Demand forecasting, managing the movement of raw materials into an organization, processing of raw materials into finished goods, and movement of finished goods toward the end customer.&#10;C)Customer service, demand forecasting, inventory management, storing and retailing, and material handling.&#10;D)Customer service, demand forecasting, inventory management, logistics, and material handling.&#10;

Accepted Answer

These are the activities of supply chain management: purchasing, producing, distributing, storing and selling, demand forecasting, managing the movement of raw materials into an organization, handling of materials into finished goods, and movement of finished goods toward the end consumer.

Question 9

The term &#34;costs of system&#34; can be best described as:&#10;A)Interest rate of the bounded capital, insurance, depreciation, loss by theft.&#10;B)Fix costs of the warehouse equipment, efforts for transfer to and release from stock.&#10;C)Planning, realization, and control of the material flow.&#10;D)Planning of production program, control, and order processing.&#10;

Accepted Answer

The costs of logistics can reach between 15 and 20 percent of the total costs, therefore they considerably influence the company's profit. One of the important types of logistics cost is costs of system, which includes planning, realization, and control of the material flow.

Question 10

If the final inspector at a tractor paint shop discovers that the paint on the tractor has a poor finish, the tractor may have to be completely rescinded and repainted. What type of cost does this situation describe?

A)External failure cost
B)Appraisal cost
C)Prevention cost
D)Internal failure cost

Accepted Answer

Internal failure costs are the costs incurred to fix problems that are discovered before the product/service is delivered to the consumer. These costs include scrap, disallowed products, refurbishing defective units, and downtime caused by quality problems. In the above example the cost incurred is an internal failure cost.

Question 11

What is the correct order of the logistic cycle?&#10;A)Raw material, converting industry, primary industry, commerce, and recycling industry.&#10;B)Raw material, primary industry, converting industry, commerce, final consumer, and recycling industry.&#10;C)Converting industry, commerce, final consumer, government, and bank.&#10;D)Primary industry, raw material, manufacturing industry, commerce, final consumer, and government&#10;

Accepted Answer

The answer of What is the correct order of the...

Question 12

The three main phases through which logistics delivers value to customers are:&#10;A)Inbound logistics, process logistics, and outbound logistics.&#10;B)Warehousing, packaging, and transportation.&#10;C)Inbound processing, order processing, and outbound processing.&#10;D)Order processing, warehousing, and packaging.&#10;

Accepted Answer

The answer of The three main phases through which logistics...

Question 13

What is meant by third party logistics?&#10;A)Suppliers' logistics.&#10;B)External establishments that carry out logistics activities.&#10;C)Internal organizations that carry out logistics activities.&#10;D)None of the above.&#10;

Accepted Answer

The answer of What is meant by third party logistics?&#10;A)Suppliers'...

Deck 9: Logistics