The ownership of inventory in the VMI (vendor-managed inventory) system lies with___.
supplier
purchaser
logistics service provider
insurance firm
Supply chain mapping means the study of___.
logistics network
activities sequence
value and non-value-added activities
cost reduction areas
all the above
A good material-handling system will enhance the___in logistics.
productivity potential
efficiency
delivery reliability
speed to market
Components of the logistics mix are warehousing, transportation, packaging, inventor controls and___.
material handling
information flow
strategic logistics
reverse logistics
A material-handling system is selected on the basis of volumes to be handled, speed of handling, distance of movement, product characteristics, capital investment and___.
productivity
customer service
payload
automation
A well-designed material storage system will ensure___.
space efficiency
productivity
speed to market
low product damages
The ABC analysis of inventory control is based on___.
usage pattern
usage value
inventory movement
criticality in application
___is the most reliable mode of transportation for petroleum products.
air
road
sea/waterways
pipeline
Logistical packaging will ensure productivity in the logistical system through ease in handling, space utility and___.
cost reduction
damage reduction
manpower reduction
weight reduction
EDI (Electronic Data Interchange) used in the logistics system ensures___.
information transfer
document transfer
material transfer
money transfer
Answers to Quiz 1:
(1) a (2) c (3) a (4) b (5) a (6) a (7) b (8) d (9) b (10) b
Quiz 2
Four economic utilities that play a role in logistics management are possession, time, place and___.
inventory
damage control
cost
form
The major handicap for road transportation in India is___.
uneducated personnel
poor infrastructure
undue influence of politicians
unorganized industry
Cost associated with the return trip of a transport truck is an example of___cost.
fixed
variable
common
joint
If the demand for trucks at some place is high and the availability of trucks is low, the truck owner will adopt___pricing system.
value of service
cost of service
fully allocated
marginal
Goods transportation by air is more___.
reliable
speedier
cost-effective
frequent
Higher inventory turnover ratio indicates better___utilization.
demand
time
assets
manpower
Major consideration for logistics manager for transporting milk will be___.
volumes
route
insurance
safety
all the above
In production Kanban is a document that authorizes production of material withdrawn by a/the___workstation.
previous
subsequent
parallel
first
Logistics is the activity that is primarily based on___.
time
speed
information
strategy
Lean supply chain means a/an___.
simple logistics network
low level of inventory
high inventory turnover ratio
IT-based system
Answers to Quiz 2:
(1) a (2) b (3) d (4) a (5) b (6) c (7) b (8) b (9) c (10) b
Quiz 3
Truck freight charges on a per kilometre basis are inversely proportional to the distance covered.
Right
Wrong
Cross-docking is related to material handling at sea ports.
Right
Wrong
The supply chain will ensure competitiveness, while logistics will ensure cost effectiveness.
Right
Wrong
Procurement methodology will not necessarily reduce the transaction cost.
Right
Wrong
E-procurement is effective when products are non-standard.
Right
Wrong
In global logistics performance cycles are longer.
Right
Wrong
The growth of containerization depends on the development of a multi-modal transportation network in the country.
Right
Wrong
The type of ERP (Enterprise Resource Planning) system decides whether a firm should go in for the pull or the push type of marketing system.
Right
Wrong
A higher inventory turnover ratio will not help in reducing storage space in the warehouse.
Right
Wrong
Logistics cost as a percentage of the product price is large for low unit price products compared to high unit price products.
Right
Wrong
Answers to Quiz 3:
(1) Right (2) Wrong (3) Right (4) Wrong (5) Wrong (6) Right (7) Right (8) Wrong (9) Wrong (10) Right
Quiz 4
In recent times, three things have changed the perspective of logistics: globalization, focus on supply chain and___.
outsourcing
warehousing system
transportation modes
regulations
Freight management includes route planning, mode selection, vehicle scheduling and___.
speed to market
freight consolidation
order processing
product availability
Warehouse layout is greatly affected by___.
material-handling system
product demand in the market
storage capacity of the place
inventory throughput
As a thumb rule, freight cost for distribution of goods from factory to field warehouses___.
increases with increase in number warehouses
decreases with increase in number of warehouses
remains same irrespective of number of warehouses
none of the above
As a thumb rule, FMCG firms have a larger number of warehouses than an engineering company of similar size because of___.
low unit price of the product
frequent purchases by customer
pattern of product consumption and replenishment
strategic decision
For designing an effective and efficient material-handling system, one of the guidelines normally followed is: (Tick the correct answer)___.
should have continuous flow of material
should move heavy loads in any direction up to any distance
dead weight to payload should be more
should be non-standard equipment
Load unitization will give the benefits of ease in storage, transportation and___.
material handling
customer service
product identification
inventory foundation
The design of storage system for perishable goods should have the___consideration.
last-in-and-first-out
first-in-and-first-out
gravity flow
closed cabinets
The shipping container offers such benefits as door-to-door service, minimizing risk of transit damages and pilferages, reduction of packaging cost, speedier delivery and____.
effective integration of multi-modal transportation system
customization
ease in customs formalities for import and export cargo
elimination of transit insurance
For improving customer satisfaction through logistics fulfilment, the gaps that need to be bridged are communication, standards adopted, service delivery and___.
customer knowledge
product development
technology
channel management
Answers to Quiz 4:
(1) a (2) b (3) a (4) a (5) c (6) a (7) a (8) b (9) a (10) a
Quiz 5
Flexible manufacturing system is designed to take care of___and___of the product(s) requirements based on demand fluctuations in the markets.
volumes and varieties
efficiency and effectiveness
service and inventory
productivity and cost
___fulfilment is the most important customer service attribute that can be successfully done through the IT-enabled supply chain integration.
Order
Service
Customer expectations
Inventory
In the public warehouse there is no scope for___of storage and material-handling facility.
customization
maintenance
functional improvement
productive usage
Palletization is the most common method for___of similar-shaped products or packages.
customization
unitization
rationalization
picking up
Stockpiling refers to the storing of products or materials so as to allow a company to exploit its___in production and transportation.
expertise
core competency
economies
technology
Warehouse is a/an____facility in logistics network rather than only a field storage place to hold the stocks to meet customer demand.
service
switching
repackaging
inventory build-up
Pareto’s law is about the business activities and their potential values and is used in___.
warehousing
transportation
inventory control
marketing
Adoption of the JIT philosophy will help in making the supply chain of the firm___.
market oriented
product oriented
customized
lean
For the perishable products transportation, the major emphasis is on vehicle scheduling and___planning in logistics network.
route
inventory
warehouse
handling equipment
Cross-docking is used in relation to time-bound___of material in the warehouse.
movement
storage
repacking
damages
Answers to Quiz 5:
(1) a (2) a (3) a (4) b (5) c (6) b (7) c (8) d (9) a (10) b
Quiz 6
Reverse logistics system is deployed for:
meeting customer demand
increasing profitability
enhancing core competency
enhancing competitiveness
all the above
Reverse logistics covers
refilling
refurbishing
quality upgradation
recycling
all the above
none of the above
Deploying the reverse logistics system is easier in___.
B2C markets
B2B markets
C2C markets
C2B markets
All the above
None of the above
The reverse logistics system focuses more on the following process: (Tick the correct answer).
procurement process
manufacturing process
marketing activities
product recalls
In the reverse logistic system the role of the channel member is
node for re-collection
spotting the end consumers
helping consumers to reuse products
checking the product quality before selling
all the above
For designing a reverse logistics system the firm should focus on:
documentation
customer profiles
customer base
channel management
none of the above
More and more firms are showing an interest in designing and deploying a reverse logistics system (RLS) because they feel
RLS is a source of competitiveness
they have to conform to government regulations
consumer forums will sue them
all the above
The reason/s for the reverse logistics initiative of most of firms is/are
concern for environment pollution
government regulations
growing consumerism
stiff competition
all the above
none of the above
Which one of the following is not a reverse logistics activity?
refilling of LPG cylinder
refilling of soft drinks bottles
refurbishing Sony audio products
transporting perishable products to processing centres
all the above
The “green dot” on product packaging indirectly symbolizes a reverse logistics system in Germany for___.
industrial products
food products
FMCG products
hazardous products
all the above
Answers to Quiz 6:
(1) d (2) e (3) b (4) d (5) a (6) a (7) d (8) a (9) d (10) c
Quiz 7
The order process cycle in cross-border logistics is___.
longer than in domestic (within a country) logistics
the same as in domestic logistics
shorter than domestic logistics
none of the above
In cross-border logistics the order process cycle is___.
simpler than in domestic (within a country) logistics
the same as domestic logistics
more complex than in domestic logistics
none of the above
In cross-border logistics, logistics partners are
more in numbers than in domestics logistics
the same in numbers as in domestic logistics
less in numbers than in domestics logistics
none of the above
In cross-border logistics the information flow is characterized as
single channel and single standard
multiple channels, multiple languages and multiple standards
one language and single channel
multiple language and single channel
none of the above
Which of the following is not an operational factor in global logistics?
transportation
packaging
insurance
warehousing
product development
Which of the following is not an intermediary in cross-border trade?
freight forwarder
customer house broker
wholesaler
all the above
EDI is used in cross-border trade for___.
transferring information
transferring documents
transferring goods
transferring money
The role of “free trade zone” in cross-border trade is to
enhance international trade
facilitate smooth flow and transaction of goods
generate revenues for host country
regularize cross-border taxation i. all the above
The non-strategic issues in cross-border trade are
customer needs
economic and regulatory environment
logistical infrastructure
foreign exchange
Containerisation is important in cross-border trade as it will ensure;
ease in insuring the good in import and export trade
ease in transportation, warehousing and material handling
ease in documentation
all the above
none of the above
Answers to Quiz 7:
(1) a (2) c (3) a (4) b (5) e (6) c (7) b (8) f (9) d (10) b
Quiz 8
A competitive framework of strategic logistics comprises responsiveness, reliability, rationalization and …
relationship
reorientation
reorganization
all the above
Strategic logistics planning does not incorporate the following step: (Tick the correct answer).
environmental analysis
SWOT analysis
setting goals and objectives
identification of resources
designing and implementing logistics programmes/strategies
assessing quality
Generic logistics strategies do not cover the following: (Tick the correct answer).
cost leadership
differentiation
value addition
efficiency
Vendor-managed inventory will ensure the following: (Tick the correct answer).
increase inventory turns
reduce shipping delays to channel partners
reduce inventory-related cost
reduce customer’s order cycle time
Value addition through “cobbling” will___.
eliminate wasteful practices in transportation and storage
reduce inventory cost
reduce material handling
ensure speed to customer
Outsourcing of logistics services will not ensure___.
logistics cost control
an enhanced level of customer service
reduction in inventory level
increase in inventory turns
better understanding of customer needs
Logistics controls are broadly categorized as financial, non-financial and …
freight related
behavioural
damage related
storage related
In the maturity stage of PLC (product life cycle), the most appropriate logistics strategy is___.
customized logistics services
multi-modal transportation
reduction in the number of distribution centres
automation in material handling
In the growth stage of PLC (product life cycle), the most appropriate logistics strategy the firm can adopt is to
increase its own transport fleet
create a logistics infrastructure
increase inventory level
customize logistics service
“Rationalization” as a strategy in logistics is closer to
mass customization through components’ design
reducing the supplier base
eliminating non-value-added activities
segmenting customers for providing differential services
Answers to Quiz 8:
(1) a (2) f (3) e (4) c (5) a (6) e (7) b (8) a (9) d (10) a
Quiz 9
The Logistics Information System (LIS) operates through four levels, viz. strategic, tactical, operating and___.
administrative
control
financial
marketing
LIS basically does not incorporate the following element:
information sources
information collection system
storage, retrieval and processing
strategy formulation
The information sources of LIS do not include:
external customers
internal departments
channel partners
internet
Operating level LIS covers order registration, order processing, inventory planning, warehousing and distribution, and …
transportation and delivery
capacity planning
alliances and partnerships
all the above
The various functions not covered under order processing are____.
inventory allocations
creating and follow-up of order backlog
filled order document generation
outsourcing
Logistics facility planning covers the following: (Tick the correct answer).
inventory control system
scheduling transportation fleets
distribution centre location and design, storage and handling facility
installation of MIS
The characteristics of LIS are that it should be flexible, interactive and—
accurate
large
informative
reactive
The tactical level of LIS (Logistics Information System) does not cover____.
inventory management
facility planning
vehicle route planning and scheduling
developing distribution network
Logistical functions of distribution channel partners are storage, transportation and____.
requirement scheduling
credit financing
negotiations
payment collection
Logistics programme variants are delivery frequency, delivery time, lot size, and …
transportation cost
packaging (loose, packed, unitized)
warehousing type
capacity of logistics information system
Answers to Quiz 9:
(1) b (2) d (3) c (4) a (5) d (6) c (7) a (8) d (9) a (10) b
Quiz 10
The limitations in implementation of a logistics programme are order processing cycle, inventory norms and …
transportation cost
warehouse capacity
warehouse type
packaging
Logistics performance measurement system has the objectives of monitoring, controlling and …
processing
directing
scheduling
fulfilling
The internal measures of logistics performance are productivity, asset management, order fulfilment, quality ROI and …
operating cost
customer relationship
reliability
best practices in industry
The external measures of logistics performance are service quality, reliability, responsiveness and
inventory turns
warehousing cost
transportation cost
customer relationship
In activity-based costing the costs to products are assigned by tracing expenses to …
products
activities
networks
transportation modes
In activity-based costing the activities are categorized at unit level, batch level, product level, customer level and …
tactical level
control level
facility level
strategic level
Logistics is the management of four cycles, viz. customer order cycle, replenishment cycle, manufacturing cycle and …
delivery cycle
service cycle
inventory cycle
procurement cycle
Logistics controls can be exercised through budgetary controls and …
structural controls
monitory controls
cost controls
movement controls
Areas under the purview of “logistics audit” are quality of logistics service, technology, productivity, packaging system, warehousing and …
transportation modelling
manufacturing system
automation in logistics
costing methods
Q10. Quantitative techniques in logistics are used for
logistics process optimization
finding warehouse sites
designing warehouse layout
reducing head counts in logistics
Answers to Quiz 10:
(1) a (2) b (3) a (4) d (5) b (6) c (7) d (8) a (9) c (10) a