1. Which of the following statements about a one-dock layout is FALSE?

Goods move in a straight configuration

2. Nissan is a brand that has been absolutely famous for manufacturing and selling forklifts
to their retailers. In their report last year, they publish that they always sold out 9,000
forklifts every 3 months. According to their data last year, every time they place a new
order, it always takes 7 days to receive the forklifts. Consequently, Nissan has to save
minimum 250 forklifts in their storage for serving unexpected demands. Nissan wants to
know the proper time for making a new order. Let's help Nissan determine the reorder
point. Assuming that a month has 30 days.
ROP= 950 forklifts

3. Less-than-truckload motor carriers

Operate through a series of terminals

4. Pipeline transport characteristics include:

High mass - transport capacity, high network - forming capability, high reliability and thus
plan ability, environmentally friendly by avoiding emissions, limited products' type.

5. Which of the following is not an environmentally-friendly packaging strategy that

firms might adopt?
Increase the amount of packing materials used.

6. Cathkidston is a store which mainly sells fashionable bags and clothes. This store wants
to calculate the ordering cost per year and the carrying cost per order for their next
business year based on the number of items that the store expects to sell. They expect to
sell 1200 items every month, their ordering cost per order is $80. The average value of an
item is $160. The carrying cost is 26% of the value of an item. If Cathkidston calls for
orders every week, how much will the ordering cost for a year and the carrying cost for
an order be? Note: 1 year has 52 weeks and assuming 1 month has 4 weeks.
Co= $ 4160 and Ch = $ 6240

7. The economic order quantity (EOQ) determines

the point at which carrying costs equal ordering costs.
 8. Refers to the removal of intermediaries between producer and consumer:
Disintermediation

9. Which of the following is WRONG about Intermodal transportation?

Intermodal freight consists of products and raw materials that are transported in a container by
a variety of the same vehicles which belong to one transportation mode.

10. …. offers the opportunity to buy direct from the supplier with reduced costs and
shorter cycle.
Disintermediation

11. Each of the following is a shipping hazard that a package may be exposed to except:
Retraction

12. ABC analysis of inventory

Recognizes that inventories are not of equal value to a firm.
13. Which of the following statements is true ?
Logistics is a subset of supply chain and supply chain is the superset for logistics,
procurement , inventory, etc....
14. Why warehouses are different with distribution centres?
Because warehouses are only for storage while distribution centres are for both storage and
distributing.

15. Choose the WRONG answer. Humanitarian logistics represents:

An emerging application of logistics to only - for - profit organizations.

16. Many organizations hold safety stocks as part of their inventory. Which of the following
is a reason for holding safety stocks?
To cater for demand forecast errors.
 17. Choose the WRONG answer. Tailored logistics is applied when
Companies use one logistics approach to target all their customers as well as all their partners.

18. Which of the following statements is right about Fixed Order Quantity?
 An inventory management system in which replenishment stock is ordered when the stock
reaches a reorder point and the replenishment quantity is kept fixed irrespective of external
circumstances.

19. Holding high levels of inventory result in ... inventory carrying costs and ... stockout
costs.
High; low
20. Logistics historically grew from the function of supplying troops in the field.
 Military.

21. Intexshop specializes in selling computer hardware equipment. They purchase their
inputs with the price at $35 per item and they plan to sell 8,000 items every year. The
ordering cost is $22 per order and their annual inventory carrying cost is 26% of the price
of an item. What is the economic order quantity? How much is their total inventory cost?
A. EOQ» 197 items and TC = $281, 789.8
B. EOQ» 197 items and TC = $281, 898.6
C. EOQ » 82 items and TC = $ 282, 519.4
D. EOQ » 82 items and TC = $283, 298.4

22. The …. department often measures inventory in terms of its cost or value in dollars,
whereas … tends to measure inventory in terms of units.
 finance; logistics

23. …. Refers to breaking a homogeneous supply into smaller lots.

 allocating
 24. Which of the following is not exactly a goods handling equipment?
 Industrial trucks

25. Jenny manages a garment factory called Hawthorn in London. In order to strictly control
the arrangement as well as the management of the factory, she tries to classify her fabrics
based on their revenue presenting in the table below. Let's help Jenny classify them by
using ABC analysis. Determine which type of fabrics should be sort in group A.
Leather, Velvet

26. Which of the given reasons, is NOT a valid reason for packaging of food items?
 Increase the weight of goods
Security, Portion control, Marketing, Convenience, Protection and Information
transmission are all valid reasons for packaging.

27. ….. refers to being out of an item at the same time there is demand for it.
 Stockout

28. Which of the following is a reverse logistics activity?

 Recycling products and components

29. What is considered to be the biggest drawback to public warehousing?

 lack of control by the user

30. Read the news informing Singaporeans about the distribution of masks below. According
to 7Rs in Logistics, what is the information for Right People in this case?
'SINGAPORE - The Temasek Foundation will be offering free reusable MaskPlus Livinguard
face masks for Singapore residents from 1 to 14 March at vending machines in over 800
locations islandwide. This will be its fourth round of mask distribution.
In a media release on Tuesday (24 February), the foundation said that anyone with a
government-issued ID may collect one free mask each. This includes Singaporeans, permanent
residents, employment or work pass permit holders, long-term pass holders and their family
dependents, and international students living in hostels. Residents may collect on behalf of their
family members and friends, by scanning the barcodes of their respective government-issued IDs
or keying in their ID information. The reusable masks are available in S, M, L, and XL sizes.
Free size S masks are only available to children aged 8 and younger. The MaskPlus Livinguard
reusable mask has two layers of proprietary-treated cotton fabric that offer protection primarily
by inactivating viruses. It has an antiviral performance of over 97% and antibacterial
performance of over 99.7% after 30 washes.
A. From 1 to 14 March.
B. Reusable MaskPlus Livinguard face masks in S, M, L, and XL sizes which has 2 layers
of proprietary - treated cotton fabric that offer protection primarily by inactivating viruses
C. At vending machines in over 800 locations islandwide.
D. Anyone with a government-issued ID including Singaporeans, permanent residents,
employment or work pass permit holders, long-term pass holders and their family
dependents, and international students living in hostels.

Quiz 1

1. Which of the below does belong to logistics cost?

Costs from procurement activity.

2. Logistics costs in Vietnam as a percentage of GDP were estimated at............. in 2020.

16.8%

3. Which one includes in order processing activity?

Checking the status of orders.

4. "Beverages sold in small size presentations are perfect to fit the needs of consumers that
are occasionally thirsty, as opposed to big-size presentations that are more suitable for
family gatherings or group meetings" is considered for the example of......
Form utility

5. "Some companies use suitable mode of transportation with an acceptable cost to meet
customer delivery requirements as well as increase satisfaction for the customer". As
such, the company could be considered.... Efficient but not effective.
 6. …..refers to an item that the firm holds with a very large amount of quantity at the same
time there is no demand for it.
overstock

7. In transportation activity, how companies can do to increase the satisfaction of

customers?
Design transportation route with very short delivery time.

8. Logistics costs of bubble manufacturing industry will be.. ........compared with logistics
costs of automobile manufacturing industry. lower

9. "Process management occurs from placing order of customers, checking the status of
products, make announcement for customer about availability of product, packaging the
product and delivery the product to customer" refers to........ Order processing

10. How many modes of transportation? 5

11. Which concept refers to the storage of raw materials and movement to the producer?
inbound logistics

12. Which of the below is the most difficult to control in 7 R's? Right time

13. Which of the following mentions to contribution of logistics to place utility?

Online retailers like Amazon.com and Alibaba.com delivery products directly to your home or
office.

14. A cost trade-off is a situation where:

The firm accepts for using premium transportation to release more products in their
warehouse.
 15. The ….. approach indicates that a company's objectives can be realized by recognizing
the mutual interdependence of major functional areas. systems

16. Which does include in warehousing activity?

Basing on featured characteristics of product, the firm will select the suitable method to store
product.

Quiz 2
1. Which concept refers to the storage of final product and movement to the customer?
 physical distribution

2. Which of the following is FALSE?

 The boomerang effect refers to variability in demand orders among supply chain members.

3. Which of the following is an example of a carrying cost for products purchased from a
supplier?
 the cost of clerical staff for preparing the purchase.

4. Which organizational function is not a focus of the Supply Chain Operations Reference
(SCOR) model? warehousing/ marketing

5. Use this information below to calculate the optimal order quantity:

 Annual demand for backpacks is 45,000 units
 The cost to place an order is $250
 The per unit cost of the item is $30.00
 The annual holding rate is 27.5%
Choose the closest answer.
1651 units

6. There are some of the ways that inventory can be reduced in the supply chain except
from:
supply-push

7. Which of the following is reason that companies hold a supply of inventory?

Companies would like to purchase in bulk to take advantage of quantity discounts.

8. Which of the following is characteristics of agile supply chain?

an organization's ability to respond to changes in demand with respect to volume and variety.

9. Which of the following is NOT a reason that companies hold a supply of inventory?
Companies would like to increase inventory costs.

10. Which of the following method that the firm can apply to reduce inventory through the
supply chain?
break orders with smaller quantities, and place frequently.

11. "The wages of the person who takes orders by telephone" is considered as...
order costs

12. All of the following are suggestions for dealing with dead stock (inventory), except
 aggressive marketing
 donate to charities
 throw it away
All answers are correct

13. The trade-off that exists between carrying and ordering costs is that they respond in
opposite ways to the number of orders or size of orders. That is, an decrease in the
number of orders leads to...carrying costs and... order costs
lower, higher

14. Which one of the following statements regarding the Economic Order Quantity (EOQ) is
true?
 If an order quantity is smaller than the EOQ, the annual holding cost is lower than the annual
ordering cost.

15. If an item is ordered at its economic order quantity, the annual carrying cost should be:
equal to the annual ordering cost..

16. Which of the following is an example of an ordering cost for products purchased from a
supplier?
the cost of clerical staff for preparing the purchase

17. Dead inventory refers to a product for which there is no sales during a period
12 month

18. Which of the following industry should apply theory of lean supply chain?
Gasoline industry

19. 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?
supply chain

20. When demand and delivery lead time are known and constant, and demand is nine per
day, and purchase lead time is four days, the reorder point is:
36

21. Holding low levels of inventory result in...........inventory carrying costs and
some...........stockout costs.
low; high
 22. The purchase cost of a widget is $8, and the holding rate is 20% of purchase cost; cost of
processing an order is $30, annual demand is for 300 widgets, and supply and usage
patterns are stable. What is the economic order quantity (EOQ)?
106.06
23. The order of product flow in the supply chain is as follows:
Raw material supplier, component manufacturer, end product manufacturer, wholesale
distributor, retailer, end-product consumer.

24. What is meant by ABC analysis of inventory?

All inventories are not of equal value to a firm and, as a result, all inventory should not be
managed in the same way.

Quiz 3
1. Which of the following pair of goods are incompatible when storing in the warehouse?
Green bean - fresh potatoes

2. When the firm changes material of packaging from glass to plastic, it means that the firm
emphasizes on.... transportation function

3. As aisle space............. the storage capacity of a facility….  increases; decreases

4. Which of the following pair of goods are incompatible when storing in the warehouse?
cement - electronic devices

5. A department store might want to supply individual stores with a number of different suit
color (e.g., black, white, red, etc.) and styles (e.g., two-button suits, three-button suits,
etc.) is example.. ..................... when mentioning one of warehousing's regrouping
function.
assorting

6. Why are labels important?

a. labels clarify handling requirements for a package, making shipping and handling dangerous
goods a safer process.
b. hazmat labels help carriers determine stowage and segregation on board planes, trucks and
vessels.
c. emergency responders use hazard labels for accident clean-up and potential evacuations.
d. all answers are correct.

7. Which of the following is benefit of cross docking facility?

improve service by allowing products to reach the destination more quickly as well as reduce
inventory carrying costs from less safety stock because of faster product delivery.

8. Which of the following is bulk cargo? Coal

9. Why milk boxes are rectangle?

a. Milk needs to be refrigerated. Rectangular boxes occupy less shelf space, and less shelf
space is more valuable when that shelf space has to be cooled.
b. Maximize storing space and all boxes can piled up with many layers.
c. The ability to comfortably hold the rectangle box in one's hand
d. All answers are correct.

10. Which of the following is false?

container is used for transporting the cargo by airway, waterway

11. Which of the following is the advantage of unit load?

it enables mechanical devices to be substituted for manual labor.

12. What's following element which requires for consolidated shipping?

a. Destination points of all shipments have to be the same.
b. Characteristics of goods have to be the same
c. A forwarder will be responsible for collecting shipments from all shippers.
d. All answers are right.
 13. Which of the following is right when mentioning to dropping packaging testing?
is a simulation of the falls that a package holding goods may experience during shipping and
handling.

14. What is the biggest advantage of public warehousing?

users can save money because there is no capital investment.

15. Which of the following is right when mentioning to compression packaging testing?
is designed to evaluate how much weight a package can withstand, and is particularly relevant
to those in the distribution chain and those producing the packaging raw material.

16. In general, warehousing security can be enhanced by focusing on people, …, and…

facilities; processes

17. Which of the following statements is true?

a. assorting refers to separating products into grades and qualities desired by different target
markets. F
b. clean and sanitary warehousing facilities can increase employee turnover. F
c. contract warehousing is owned or occupied on a long-term lease by the firm using them. F
d. contract warehousing simultaneously mitigates the negative aspects and accentuates the
positive aspects of public and private warehousing. True

18. Which of the following is right when mentioning to compression packaging testing?
is designed to evaluate how much weight a package can withstand, and is particularly relevant
to those in the distribution chain and those producing the packaging raw material.

19. All are characteristics of private warehousing, except _

feasible when demand patterns are irregular
 20. Why are labels important?
a. labels clarify handling requirements for a package, making shipping and handling dangerous
goods a safer process.
b. hazmat labels help carriers determine stowage and segregation on board planes, trucks and
vessels.
c. emergency responders use hazard labels for accident clean up and potential evacuations.
d. all answers are correct.

21. What organization regulates the packaging of international air shipments?

International Air Transport Association

22. ...packaging tends to be cheaper, more versatile, and more consumer-friendly

than.............packaging.
plastic; paper

23. Which of the following statement is true?

a. Warehouses emphasize the rapid movement of products through a facility and attempt to
maximize throughput. False
b. Materials handling has been referred to as transportation at zero miles per hour False
c. In essence, multi-client warehousing mixes attributes of private and contract warehousing. F
d. Warehousing is needed because patterns of production and consumption may not
coincide. True

24. Which of the following is the example of the product's ability to withstand some
elements?
ice cream can be exposed to freezing conditions while vaccine cannot.
True
1. Many well-run companies view warehousing as a strategic consideration and as a potential
source of competitive advantage.
3. Warehousing is needed because patterns of production and consumption may not coincide.
5. Accumulating involves bringing together similar stocks from different sources.
8. Throughput is the amount of product entering and leaving a warehousing facility in a given
period of time.
10. With public warehousing the user rents space as needed, thus avoiding the cost of unneeded
space.
13. Private warehousing tends to be feasible when demand patterns are relatively stable.
14. Private warehousing offers potential users a great deal of control over their storage needs.
16. Three-to-five year contracts appear to allow sufficient time for contract warehouses to learn
their client's business while at the same time allowing clients some flexibility.
18. Common sense should not be ignored with respect to the design of warehousing facilities.
19. A storage facility with low rates of product turnover should be laid out in a manner that
maximizes utilization of the cubic capacity of the storage facility.
20. Trade-offs must be made among space, labor, and mechanization with respect to
warehousing design.
22. A general rule of thumb is that it is cheaper to build up than build out.
24. Narrower aisles can increase the space utilization of a facility.
25. Radio frequency identification is an example of warehouse automation.
27. Motivation of warehousing employees can be difficult because of the somewhat repetitive
nature of the operation.
29. One low-cost suggestion for improving warehousing productivity is to play music, if
conditions permit.
31. Back and shoulder injuries are the most frequent injuries among warehousing personnel.
33. Fires are a constant threat in warehousing.
35. In the United States, approximately 95,000 employees are injured every year while operating
forklifts in warehousing facilities.
37. Buildings that store hazardous materials often have walls and doors that can withstand
several hours of intense fire.
38. Potential threats to warehousing security include theft, pilferage, heat and humidity, and fire,
among others.
40. Clean and sanitary warehousing facilities can have a positive impact on employee safety,
morale, and productivity.
41. The term Cycle Counting is synonymous with physically counting inventory
42. Radio Frequency Identification (RFID) is considered an eventual replacement of bar code
because of its ability to store huge amounts of information to differentiate goods at the item level
43. Relaxing the instantaneous replenishment assumption of the EOQ model results in the
Economic Manufacturing Quantity model
44. The optimal order quantity for the quantity discount model may exist at a price breakpoint
45. When demand and lead time are constant, reorder point is the demand during lead time.
1. The supply chain concept originated in the logistics literature.
2. Supply chain management requires companies to adopt an enterprise-to-enterprise point of
view.
3. A perfect order simultaneously achieves relevant customer metrics.
4. Relational changes cannot be successful without information sharing among various
participants.
5. A primary objective of supply chain management is to optimize the performance of the supply
chain as a whole.
6. A willingness to share information and buying decisions based on value rather than cost or
price are two characteristics of supply chain partnerships.
7. The Internet has been referred to as the greatest force of commodization known to man, for
both goods and services.
8. The general idea behind third-party logistics is that one company allows a specialist company
to provide it with one or more logistics functions.
9. One cause of the bullwhip effect is asymmetrical information among supply chain
participants.
11. A best-of-breed approach chooses the best software application for a particular function.
12. Since nearly any organization can be part of a supply chain, SCM can be specifically
managed by the organizations operating within or out of the supply chain.

False
2. Materials handling has been referred to as transportation at zero miles per hour.
4. Assorting and sorting refer to adjustments associated with the quantity of product.
6. Assorting involves breaking larger quantities into smaller quantities.
7. Warehouses emphasize the rapid movement of products through a facility and attempt to
maximize throughput.
9. One drawback of cross-docking is that it increases the amount of necessary warehousing
space.
12. Perhaps the biggest drawback to public warehousing is the inability to provide specialized
services.
11. In the United States, the Warehousing Safety Administration has primary responsibility for
warehousing safety practices.
15. Public warehousing has embraced value-adding activities such as customization and reverse
logistics to a greater degree than has contract warehousing.
17. In essence, multi-client warehousing mixes attributes of private and contract warehousing.
21. A variable slot location warehousing system may result in low space utilization.
23. A one-dock warehouse layout, in contrast to a two-dock layout, increases the space needed
for storage docks.
25. Radio frequency identification is an example of warehouse automation.
26. Recent estimates suggest that only approximately 25% of a warehousing facility's cubic
capacity is actually occupied by product.
28. Increases in warehousing productivity require significant investment in technology or
mechanized or automated equipment.
30. Forklift operators in the United States must be recertified every five years.
32. Dunnage refers to charges for accessorial transportation service.
34. Approximately 10% of all warehousing fires in recent years were sent intentionally.
36. Government regulations require organizations to create a safety data sheet (SDS) for each
imported item that is stored in a warehousing facility.
39. In general, warehousing security can be enhanced by focusing on people, facilities, and
information.
40.Dependent Demand must be forecasted based on market conditions
41.The four broad categories of inventory are raw materials, work-in-process, subassemblies,
and finished goods
42.Inventory turnover ratio shows how many times a firm turns over its inventory in an
accounting period. Faster turnovers are generally viewed as negative because it indicates
instability in the firm's inventory level
43. Pareto Analysis is an inventory model used to determine the optimal order size that
minimizes total annual inventory costs
44.In the Economic Manufacturing Quantity model, the annual consumption rate must be higher
than the annual production rate
10. Today, computer hardware is a larger barrier than computer software to interorganizational
collaboration.
12. An individual firm can only be involved in one supply chain at a time.
13. Horizontal integration refers to where one organization owns multiple participants in a
supply chain.
15. The goals and objectives of individual supply chain participants needn’t be completely
compatible with the goals and objectives of other participants in the supply chain.