Chapter 1

1. Which of the following is NOT a key element of logistics?

a. Transportation

b. Inventory Management

c. Warehousing

d. Production

Answer: d. Production

2. Which of the following is a key consideration in logistics design?

a. Cost

b. Speed

c. Quality

d. All of the above

Answer: d. All of the above

3. What is the primary purpose of logistics?

a. To increase efficiency

b. To reduce costs

c. To improve customer satisfaction

d. All of the above

Answer: d. All of the above

4. What is the goal of logistics strategy?

a. To meet customer demand

b. To reduce costs

c. To maximize profit

d. All of the above

Answer: d. All of the above

5. What is the difference between inbound and outbound logistics?

a. Inbound logistics involves the movement of products from suppliers to the company, while outbound
logistics involves the movement of products from the company to customers.

b. Inbound logistics involves the movement of products from the company to customers, while
outbound logistics involves the movement of products from suppliers to the company.

c. Inbound logistics involves the movement of products from one company location to another, while
outbound logistics involves the movement of products from customers to the company.

d. Inbound logistics involves the movement of people, while outbound logistics involves the movement
of products.

Answer: a. Inbound logistics involves the movement of products from suppliers to the company, while
outbound logistics involves the movement of products from the company to customers.

6. What is the role of transportation in logistics?

a. To move goods from one location to another

b. To store goods until they are needed

c. To manage inventory levels

d. To process customer orders

Answer: a. To move goods from one location to another

7. What is the difference between push and pull strategies in logistics?

a. Push strategies focus on anticipating customer demand, while pull strategies focus on reacting to
customer demand.

b. Push strategies involve producing goods based on actual customer orders, while pull strategies involve
producing goods based on forecasted demand.

c. Push strategies involve holding large inventories, while pull strategies involve holding small
inventories.

d. Push strategies are used in inbound logistics, while pull strategies are used in outbound logistics.

Answer: a. Push strategies focus on anticipating customer demand, while pull strategies focus on
reacting to customer demand.

8. What is the role of inventory management in logistics?

a. To minimize inventory levels

b. To maximize inventory levels

c. To ensure that inventory levels match demand

d. To eliminate inventory entirely

Answer: c. To ensure that inventory levels match demand

9. What is the difference between direct and indirect logistics costs?

a. Direct costs are related to the movement and storage of goods, while indirect costs are related to the
management of logistics activities.

b. Direct costs are related to the management of logistics activities, while indirect costs are related to the
movement and storage of goods.

c. Direct costs are variable, while indirect costs are fixed.

d. Direct costs are fixed, while indirect costs are variable.

Answer: a. Direct costs are related to the movement and storage of goods, while indirect costs are
related to the management of logistics activities.

10. What is the role of technology in logistics?

a. To increase efficiency and accuracy

b. To reduce costs

c. To improve customer service

d. All of the above

Answer: d. All of the above

Chapter 2: Logistics and Supply Chain Strategy

1. What is the primary goal of logistics and supply chain management? A. To minimize costs B. To
maximize profits C. To enhance customer satisfaction D. To increase employee productivity

Answer: C. To enhance customer satisfaction

2. Which of the following is not a component of logistics and supply chain management? A.
Transportation B. Warehousing C. Inventory management D. Customer service

Answer: D. Customer service

3. What is the difference between supply chain management and logistics management? A. Supply
chain management involves only the upstream flow of goods, while logistics management
 involves only the downstream flow of goods. B. Supply chain management is concerned with the
coordination of all activities involved in creating and delivering a product or service, while
logistics management is concerned with only the physical movement and storage of goods. C.
Supply chain management focuses on managing suppliers, while logistics management focuses
on managing customers. D. There is no difference between the two.

Answer: B. Supply chain management is concerned with the coordination of all activities involved in
creating and delivering a product or service, while logistics management is concerned with only the
physical movement and storage of goods.

4. Which of the following is not a benefit of effective logistics and supply chain management? A.
Reduced costs B. Improved customer service C. Increased flexibility D. Decreased competition

Answer: D. Decreased competition

5. What is the difference between inbound logistics and outbound logistics? A. Inbound logistics
involves the flow of goods from the manufacturer to the customer, while outbound logistics
involves the flow of goods from the customer to the manufacturer. B. Inbound logistics involves
the flow of goods from suppliers to the manufacturer, while outbound logistics involves the flow
of finished products from the manufacturer to the customer. C. Inbound logistics involves the
storage and handling of raw materials, while outbound logistics involves the storage and
handling of finished products. D. There is no difference between the two.

Answer: B. Inbound logistics involves the flow of goods from suppliers to the manufacturer, while
outbound logistics involves the flow of finished products from the manufacturer to the customer.

6. Which of the following is not a trend affecting logistics and supply chain management? A.
Globalization B. Technology C. Deregulation D. Increased competition

Answer: D. Increased competition

7. What is the purpose of a logistics audit? A. To identify areas where logistics costs can be reduced
B. To evaluate the effectiveness of logistics and supply chain management processes C. To assess
the financial performance of logistics operations D. To compare logistics performance against
industry benchmarks

Answer: B. To evaluate the effectiveness of logistics and supply chain management processes

8. Which of the following is not a factor affecting transportation decisions? A. Distance B. Mode of
transportation C. Frequency of delivery D. Price of competitors' products

Answer: D. Price of competitors' products

9. What is the difference between push and pull strategies in logistics and supply chain
management? A. Push strategies involve producing goods based on customer demand, while
pull strategies involve producing goods based on forecasts. B. Push strategies involve moving
goods through the supply chain based on customer orders, while pull strategies involve moving
goods through the supply chain based on forecasts. C. Push strategies involve holding inventory
to meet anticipated demand, while pull strategies involve replenishing inventory as needed. D.
There is no difference between the two.
Answer: C. Push strategies involve holding inventory to meet anticipated demand, while pull strategies
involve replenishing inventory as needed.

Chapter 2 continue
1. What are the three elements of the triple bottom line? a. Profit, people, and planet b.
Performance, people, and planet c. Profit, power, and production d. Performance, power, and
production

Answer: a. Profit, people, and planet

2. Which of the following is not one of the five core disciplines of logistics? a. Transportation b.
Inventory c. Purchasing d. Production

Answer: d. Production

3. What are the three levels of customer service? a. Standard, deluxe, and premium b. Basic,
enhanced, and superior c. Essential, upgraded, and optimal d. Economic, intermediate, and
luxury

Answer: b. Basic, enhanced, and superior

4. Which of the following is not a key logistical function? a. Warehousing b. Packaging c. Material
handling d. Sales

Answer: d. Sales

5. Which of the following is not a component of logistics cost? a. Transportation b. Inventory c.

Production d. Packaging

Answer: c. Production

6. What is the primary objective of logistics? a. Maximizing profits b. Minimizing costs c. Meeting
customer needs d. Improving efficiency

Answer: c. Meeting customer needs

7. What are the four major transportation modes? a. Air, water, rail, and pipeline b. Air, water,
truck, and pipeline c. Air, road, rail, and pipeline d. Air, road, rail, and ocean

Answer: d. Air, road, rail, and ocean

8. What is the difference between inbound logistics and outbound logistics? a. Inbound logistics
focuses on transporting goods to customers, while outbound logistics focuses on transporting
goods to suppliers. b. Inbound logistics focuses on transporting goods from suppliers to
manufacturers, while outbound logistics focuses on transporting goods from manufacturers to
retailers. c. Inbound logistics focuses on transporting goods from suppliers to manufacturers,
while outbound logistics focuses on transporting goods from manufacturers to customers. d.
Inbound logistics focuses on transporting goods from manufacturers to retailers, while outbound
logistics focuses on transporting goods from retailers to customers.
Answer: c. Inbound logistics focuses on transporting goods from suppliers to manufacturers, while
outbound logistics focuses on transporting goods from manufacturers to customers.

9. What are the three basic functions of inventory? a. Balancing supply and demand, protecting
against uncertainty, and permitting economies of scale b. Balancing supply and demand,
providing security, and promoting quality c. Balancing supply and demand, reducing risk, and
maximizing profits d. Balancing supply and demand, promoting innovation, and reducing waste

Answer: a. Balancing supply and demand, protecting against uncertainty, and permitting economies of
scale

10. What is the purpose of the order cycle? a. To ensure that inventory levels are maintained b. To
ensure that customer orders are fulfilled accurately and on time c. To ensure that the production
process runs smoothly d. To ensure that transportation costs are minimized

Answer: b. To ensure that customer orders are fulfilled accurately and on time

Chapter 3
1. The order cycle time can be defined as the elapsed time between what two events? A. Order
placement and order receipt B. Order receipt and product delivery C. Product delivery and
payment receipt D. Payment receipt and order placement Answer: A

2. What is the primary difference between inventory holding costs and ordering costs? A. Ordering
costs are fixed, while inventory holding costs vary. B. Inventory holding costs are fixed, while
ordering costs vary. C. Ordering costs are directly related to order size, while inventory holding
costs are not. D. Inventory holding costs are directly related to order size, while ordering costs
are not. Answer: C

3. What is the economic order quantity (EOQ) model used to determine? A. The optimal order
quantity that minimizes total inventory costs B. The optimal order quantity that maximizes
customer service levels C. The optimal order quantity that minimizes lead times D. The optimal
order quantity that maximizes profits Answer: A

4. What is the purpose of a safety stock? A. To reduce inventory carrying costs B. To increase order
frequency C. To meet unexpected demand D. To reduce order size Answer: C

5. Which of the following is a characteristic of the just-in-time (JIT) inventory system? A. High levels
of safety stock B. Large order quantities C. Long lead times D. Reduced inventory levels Answer:
D

6. What is the primary benefit of using vendor-managed inventory (VMI)? A. Reduced inventory
carrying costs B. Increased order frequency C. Reduced order size D. Increased lead times
Answer: A

7. What is the goal of order fulfillment lead time reduction? A. To increase inventory levels B. To
decrease order frequency C. To decrease inventory holding costs D. To increase customer
satisfaction Answer: D
 8. What is the primary purpose of transportation in the supply chain? A. To reduce transportation
costs B. To increase order frequency C. To increase customer satisfaction D. To reduce order size
Answer: C

9. What is the difference between the replenishment and distribution inventory systems? A.
Replenishment systems manage inventory in the supply chain, while distribution systems
manage inventory at the retail store level. B. Replenishment systems manage inventory at the
retail store level, while distribution systems manage inventory in the supply chain. C.
Replenishment systems focus on inventory management, while distribution systems focus on
logistics. D. Replenishment systems focus on logistics, while distribution systems focus on
inventory management. Answer: A

10. What is the role of information technology in logistics management? A. To reduce transportation
costs B. To increase order frequency C. To increase visibility and coordination in the supply chain
D. To reduce inventory carrying costs Answer: C

Chapter 5
1. The purpose of inventory is to: a) Maximize carrying costs b) Maximize stockouts c) Maximize
profits d) Maximize production capacity

Answer: c) Maximize profits

2. Which of the following is NOT a cost associated with holding inventory? a) Carrying costs b)
Ordering costs c) Stockout costs d) Shrinkage costs

Answer: b) Ordering costs

3. The EOQ model is used to calculate: a) Carrying costs b) Ordering costs c) Optimal order quantity
d) Optimal lead time

Answer: c) Optimal order quantity

4. Safety stock is used to protect against: a) Stockouts b) Obsolescence c) Carrying costs d) Ordering
costs

Answer: a) Stockouts

5. A company with a high inventory turnover ratio: a) Has a lower amount of inventory relative to
sales b) Has a higher amount of inventory relative to sales c) Has a higher amount of sales
relative to inventory d) Has a lower amount of sales relative to inventory

Answer: a) Has a lower amount of inventory relative to sales

6. The bullwhip effect refers to: a) The impact of production on inventory b) The impact of demand
on inventory c) The impact of inventory on profits d) The impact of promotions on inventory

Answer: b) The impact of demand on inventory

7. Which of the following is NOT a technique for reducing inventory levels? a) Vendor-managed
inventory b) Just-in-time c) Economic order quantity d) Batch processing
Answer: d) Batch processing

8. ABC analysis categorizes inventory based on: a) The age of the inventory b) The value of the
inventory c) The quantity of the inventory d) The type of inventory

Answer: b) The value of the inventory

9. In a periodic review system, inventory levels are reviewed: a) On a continuous basis b) At

predetermined intervals c) Only when a stockout occurs d) Only when demand increases

Answer: b) At predetermined intervals

10. Safety lead time is used to protect against: a) Stockouts b) Obsolescence c) Carrying costs d)
Ordering costs

Answer: a) Stockouts

Chapter 7
1. The two basic types of logistics information systems are _____ and _____. a) manual; automated
b) internal; external c) strategic; tactical d) operational; strategic Answer: d) operational;
strategic

2. The use of _____ in logistics management involves the monitoring of product flows, inventory
levels, and processing activities. a) advanced technology b) standardized procedures c) cross-
functional teams d) customer service Answer: a) advanced technology

3. A(n) _____ provides real-time access to data and is designed to support real-time processing of
logistics transactions. a) Enterprise Resource Planning (ERP) system b) Transportation
Management System (TMS) c) Warehouse Management System (WMS) d) Automatic
Identification System (AIS) Answer: b) Transportation Management System (TMS)

4. Which of the following statements is true regarding the use of RFID technology in logistics? a)
RFID tags are less expensive than bar codes. b) RFID tags must be within a few inches of a reader
in order to be read. c) RFID tags can only store a limited amount of information. d) RFID
technology can help companies improve inventory accuracy and supply chain visibility. Answer:
d) RFID technology can help companies improve inventory accuracy and supply chain visibility.

5. The use of _____ involves the capture of data in electronic form, such as through bar codes or
RFID tags. a) Automatic Identification (Auto-ID) b) Customer Relationship Management (CRM) c)
Supplier Relationship Management (SRM) d) Warehouse Management Systems (WMS) Answer:
a) Automatic Identification (Auto-ID)

6. The goal of _____ is to ensure that all parties in the supply chain have the information they
need, when they need it, to make informed decisions. a) data warehousing b) data mining c)
supply chain visibility d) collaborative planning Answer: c) supply chain visibility

7. Which of the following is an example of a logistics application of artificial intelligence (AI)? a)

Forecasting demand for products b) Monitoring quality control on the production line c)
 Handling customer inquiries through a chatbot d) Optimizing delivery routes for trucks Answer:
d) Optimizing delivery routes for trucks

8. _____ involves the use of software to optimize the movement of goods between locations,
taking into account constraints such as transportation capacity and delivery windows. a)
Inventory management b) Order management c) Transportation management d) Warehouse
management Answer: c) Transportation management

9. Which of the following is a potential disadvantage of using drones for last-mile deliveries? a)
Limited range and payload capacity b) High upfront costs c) Concerns about privacy and security
d) Difficulty navigating in urban environments Answer: a) Limited range and payload capacity

10. The use of _____ can help logistics managers monitor delivery performance and proactively
address potential issues. a) Key Performance Indicators (KPIs) b) Customer Relationship
Management (CRM) systems c) Radio Frequency Identification (RFID) technology d) Electronic
Data Interchange (EDI) Answer: a) Key Performance Indicators (KPIs)

Chapter 8
1. What is the difference between a forward and reverse logistics system? A. Forward logistics
system is responsible for the delivery of goods to customers while reverse logistics system
handles the return and disposal of goods. B. Reverse logistics system is responsible for the
delivery of goods to customers while forward logistics system handles the return and disposal of
goods. C. There is no difference between forward and reverse logistics systems. D. Both forward
and reverse logistics systems are responsible for the delivery of goods to customers.

2. Which of the following is not a type of logistics provider? A. Third-party logistics provider (3PL) B.
Fourth-party logistics provider (4PL) C. Second-party logistics provider (2PL) D. All of the above
are types of logistics providers.

3. Which of the following is not a factor that affects transportation mode selection? A. Cost B.
Transit time C. Availability of the mode D. Weather conditions

4. What is the role of a freight forwarder in international logistics? A. To provide warehousing

services B. To transport goods from the manufacturer to the final destination C. To handle all the
necessary documentation for international shipments D. To provide packaging materials for
shipments

5. What is the difference between intermodal and multimodal transportation? A. Intermodal

transportation involves the use of multiple modes of transportation while multimodal
transportation involves the use of a single mode of transportation. B. Multimodal transportation
involves the use of multiple modes of transportation while intermodal transportation involves
the use of a single mode of transportation. C. There is no difference between intermodal and
multimodal transportation. D. Intermodal transportation is only used for domestic shipments
while multimodal transportation is used for international shipments.

6. What is the main advantage of using private transportation? A. Flexibility in scheduling and
routing B. Lower costs C. Ability to handle large volumes of goods D. Improved transit times
 7. Which of the following is not a key performance indicator (KPI) used to measure transportation
performance? A. Transit time B. On-time delivery C. Cost per unit D. Number of shipments

8. What is the difference between a tariff and a rate? A. Tariff is a tax while rate is a fee charged for
transportation services. B. Rate is a tax while tariff is a fee charged for transportation services. C.
There is no difference between a tariff and a rate. D. Tariff and rate are both fees charged for
transportation services.

9. What is the purpose of a transportation management system (TMS)? A. To manage the

movement of goods from the manufacturer to the final destination B. To manage the
transportation providers used by a company C. To manage the scheduling and routing of
shipments D. All of the above

10. What is the primary role of the Federal Motor Carrier Safety Administration (FMCSA) in the
United States? A. To regulate the safety of commercial motor vehicles B. To provide funding for
transportation infrastructure projects C. To manage the scheduling and routing of shipments D.
To provide training for transportation workers

Chapter 9
1. Which of the following is a key element in designing a successful transportation system? a. Low
transportation cost b. High transportation cost c. Unreliable delivery times d. Limited
transportation options Answer: a. Low transportation cost

2. Which of the following is a factor that contributes to transportation economies of scale? a.

Lower fuel prices b. Higher shipment volumes c. Smaller vehicles d. Higher labor costs Answer: b.
Higher shipment volumes

3. Which of the following is a potential drawback of using intermodal transportation? a. High

transportation costs b. Limited route options c. Increased shipping time d. Decreased cargo
security Answer: c. Increased shipping time

4. Which of the following is an advantage of using air transportation? a. Lower transportation costs
b. Increased shipment security c. Slower delivery times d. Limited cargo capacity Answer: b.
Increased shipment security

5. Which of the following is a factor that can affect transportation mode selection? a. Distance
between origin and destination b. Type of product being transported c. Availability of transport
providers d. All of the above Answer: d. All of the above

6. Which of the following is a characteristic of a private carrier? a. Offers transportation services to

the general public b. Owned by a group of shippers c. Operates for the benefit of the owning
company d. Regulated by the government Answer: c. Operates for the benefit of the owning
company

7. Which of the following is a potential disadvantage of using pipeline transportation? a. Limited

route options b. High transportation costs c. Slow delivery times d. Low cargo capacity Answer:
a. Limited route options
 8. Which of the following is a characteristic of a common carrier? a. Offers transportation services
to the general public b. Owned by a group of shippers c. Operates for the benefit of the owning
company d. Regulated by the government Answer: a. Offers transportation services to the
general public

9. Which of the following is a factor that contributes to transportation speed? a. Distance traveled
b. Type of transportation mode c. Traffic congestion d. All of the above Answer: d. All of the
above

10. Which of the following is an advantage of using rail transportation? a. Lower transportation costs
b. Increased shipment security c. Faster delivery times d. Limited cargo capacity Answer: a.
Lower transportation costs

Chapter 10
1. What is the difference between qualitative and quantitative forecasting techniques? A.
Qualitative forecasting techniques rely on expert opinions and judgment, while quantitative
techniques use historical data and mathematical models.

2. What is exponential smoothing and how is it used in forecasting? A. Exponential smoothing is a

time series forecasting method that calculates a weighted average of past observations to
predict future values. It is used to generate short-term forecasts and adjust for random variation.

3. What is the difference between a moving average and a weighted moving average? A. A moving
average calculates the average of a fixed number of past observations, while a weighted moving
average gives more weight to more recent observations.

4. What are the advantages and disadvantages of using historical data to forecast future demand?
A. Advantages: historical data can provide insights into trends and patterns, can help identify
seasonal patterns, and is readily available. Disadvantages: historical data may not accurately
reflect future demand, may not account for changes in market conditions, and may not be
available for new products or markets.

5. What is the purpose of collaborative planning, forecasting, and replenishment (CPFR)? A. The
purpose of CPFR is to improve supply chain efficiency and reduce inventory costs by sharing
information and coordinating planning and replenishment activities between suppliers and
retailers.

6. What is the bullwhip effect and how can it be mitigated? A. The bullwhip effect is the
phenomenon where small changes in customer demand can lead to large fluctuations in
upstream inventory levels. It can be mitigated by improving communication and information
sharing between supply chain partners, reducing lead times, and using demand-driven
production.

7. What are the key differences between a push and pull system in inventory management? A. A
push system is based on forecasts and pushes inventory through the supply chain, while a pull
system is based on actual demand and pulls inventory through the supply chain as needed.
 8. What is vendor-managed inventory (VMI) and how does it work? A. VMI is a supply chain model
where the supplier is responsible for managing and replenishing the customer's inventory. The
supplier uses point-of-sale data to monitor inventory levels and initiates replenishment orders as
needed.

9. What are safety stock and reorder point, and how are they calculated? A. Safety stock is extra
inventory held to protect against unexpected demand or lead time variability. Reorder point is
the inventory level at which a new order should be placed. They are calculated using formulas
that account for average demand, lead time, and service level.

Chapter 10 continue

1. What is the primary objective of safety stock in inventory management? a) To reduce stockouts
b) To minimize holding costs c) To increase inventory turnover d) To maximize order quantity

Answer: a) To reduce stockouts

2. Which of the following is NOT a method for determining safety stock? a) Maximum stock level b)
Lead time variability c) Service level d) Economic order quantity

Answer: d) Economic order quantity

3. Which inventory control method relies on fixed time intervals for ordering and replenishing
inventory? a) Continuous review b) Periodic review c) Just-in-time d) ABC analysis

Answer: b) Periodic review

4. What is the formula for calculating reorder point? a) (Average daily usage x lead time) + safety
stock b) (Economic order quantity x annual demand) / 2 c) (Maximum stock level + minimum
stock level) / 2 d) Annual demand / 365

Answer: a) (Average daily usage x lead time) + safety stock

5. Which of the following is NOT a benefit of using RFID technology for inventory management? a)
Increased accuracy and efficiency b) Real-time tracking and visibility c) Lower costs than
traditional barcode systems d) Reduced labor requirements

Answer: c) Lower costs than traditional barcode systems

6. What is the primary objective of order picking in warehouse management? a) To minimize travel
time and distance b) To maximize order quantity c) To minimize holding costs d) To increase
inventory turnover

Answer: a) To minimize travel time and distance

7. What is the purpose of cycle counting in inventory management? a) To count inventory only
when it reaches a certain level b) To count inventory on a periodic basis c) To count inventory at
the end of each fiscal year d) To count inventory continuously throughout the year

Answer: d) To count inventory continuously throughout the year

 8. What is the difference between a push system and a pull system in inventory management? a) A
push system relies on customer demand, while a pull system forecasts demand. b) A push
system replenishes inventory before it is needed, while a pull system replenishes inventory when
it is needed. c) A push system uses real-time tracking, while a pull system uses barcode systems.
d) A push system relies on fixed time intervals, while a pull system relies on lead time variability.

Answer: b) A push system replenishes inventory before it is needed, while a pull system replenishes
inventory when it is needed.

Chapter 11
1. What is the primary purpose of packaging and handling? A. To transport goods from one place to
another B. To protect goods during transportation and storage C. To reduce the cost of
transportation D. To increase the weight of the shipment

Answer: B

2. What is the difference between primary and secondary packaging? A. Primary packaging is used
for long-term storage, while secondary packaging is used for short-term storage. B. Primary
packaging is used for transport, while secondary packaging is used for storage. C. Primary
packaging is in direct contact with the product, while secondary packaging is used to group
primary packages together. D. Primary packaging is used for heavy goods, while secondary
packaging is used for lightweight goods.

Answer: C

3. Which of the following is NOT a benefit of using returnable containers? A. Reduced

environmental impact B. Reduced packaging and handling costs C. Improved product quality D.
Improved worker safety

Answer: C

4. What is unitization? A. The process of packing goods in a container for transportation B. The
process of grouping individual items into larger units for handling and transportation C. The
process of labeling individual items for identification D. The process of verifying the contents of a
shipment before transportation

Answer: B

5. What is the purpose of cushioning in packaging? A. To protect the product from moisture and
humidity B. To provide extra space for more products C. To absorb shock and vibration during
transportation D. To prevent theft of the product

Answer: C

6. Which of the following is NOT a type of mechanical handling equipment? A. Conveyor belts B.
Forklift trucks C. Hand trucks D. Automated guided vehicles (AGVs)

Answer: C
 7. What is the difference between pallets and skids? A. Pallets have four sides, while skids have two
sides. B. Pallets have a flat top deck, while skids have a slatted top deck. C. Pallets have bottom
deck boards, while skids do not have bottom deck boards. D. Pallets are used for lightweight
goods, while skids are used for heavy goods.

Answer: C

8. What is the purpose of stretch wrapping in handling and storage? A. To protect the product from
damage during transportation B. To keep the product clean and free from dust C. To provide
extra space for more products D. To secure the load and prevent shifting during transportation

Answer: D

9. Which of the following is NOT a factor to consider when selecting packaging materials? A. Cost B.
Product weight C. Product fragility D. Product color

Answer: D

10. What is the purpose of a bill of lading? A. To provide a list of all the products in the shipment B.
To provide instructions for the handling of the shipment C. To provide proof of delivery to the
consignee D. To provide instructions for the assembly of the product

Answer: C

Chapter 12
1. What is the primary objective of distribution management? A. To minimize costs B. To maximize
sales C. To improve customer satisfaction D. To reduce lead time

Answer: C

2. What is the difference between direct and indirect distribution? A. Direct distribution is more
expensive than indirect distribution B. Indirect distribution involves intermediaries, while direct
distribution does not C. Direct distribution is slower than indirect distribution D. Indirect
distribution is used for low-value products, while direct distribution is used for high-value
products

Answer: B

3. What is a channel conflict? A. A disagreement between channel partners B. A disruption in the

supply chain C. A delay in delivery D. A quality control issue

Answer: A

4. What is a push strategy in marketing? A. When a company uses aggressive advertising to push its
products to customers B. When a company uses sales promotions to encourage customers to
buy its products C. When a company relies on intermediaries to push its products to customers
D. When a company produces products based on customer demand

Answer: C
 5. What is a pull strategy in marketing? A. When a company uses aggressive advertising to push its
products to customers B. When a company uses sales promotions to encourage customers to
buy its products C. When a company relies on intermediaries to push its products to customers
D. When a company creates demand for its products among customers and then uses
intermediaries to fulfill that demand

Answer: D

6. What is cross docking? A. A type of warehouse where products are stored for a short period of
time before being shipped out B. A method of transportation where products are shipped
directly from the manufacturer to the customer C. A process where incoming products are
immediately sorted and routed to their final destination D. A type of packaging that can be easily
recycled

Answer: C

7. What is intermodal transportation? A. A type of transportation where products are shipped on

multiple modes of transportation (e.g., truck, train, ship) B. A type of transportation where
products are shipped only by air C. A type of transportation where products are shipped only by
train D. A type of transportation where products are shipped only by truck

Answer: A

8. What is a freight forwarder? A. A person or company that organizes shipments for individuals or
corporations B. A type of warehouse where products are stored for a short period of time before
being shipped out C. A method of transportation where products are shipped directly from the
manufacturer to the customer D. A type of packaging that can be easily recycled

Answer: A

9. What is order picking? A. A process where products are loaded onto trucks for transportation B.
A process where products are moved from one warehouse to another C. A process where
individual products are selected from a warehouse to fulfill a customer order D. A process where
products are inspected for quality before being shipped to customers

Answer: C

10. What is cross-functional collaboration? A. When individuals from different functional areas
within a company work together to achieve a common goal B. When individuals within a
functional area work together to achieve a common goal C. When individuals from different
companies work together to achieve a common goal D. When individuals within a company work
together to achieve different goals

Answer: A
Chapter 14
1. Strategic logistics management refers to: a. Decisions related to the movement of goods and
materials within an organization b. The management of all activities involved in the
procurement, production, and delivery of products to customers c. The coordination of activities
that allow a company to optimize its supply chain and gain a competitive advantage d. The
management of transportation, warehousing, and inventory management activities

Answer: c. The coordination of activities that allow a company to optimize its supply chain and gain a
competitive advantage

2. Which of the following is not a key factor in strategic logistics management? a. Customer service
b. Sustainability c. Cost reduction d. Product quality

Answer: d. Product quality

3. The key components of global logistics management include: a. Transportation, warehousing,

and inventory management b. Sourcing, procurement, and production planning c. Customs
compliance, regulatory compliance, and security management d. All of the above

Answer: d. All of the above

4. Which of the following is not a challenge associated with global logistics management? a.
Cultural differences b. Language barriers c. Increased competition d. Political instability

Answer: c. Increased competition

5. What is the difference between a domestic logistics system and a global logistics system? a.
Global logistics systems are more complex and involve additional components such as customs
compliance and regulatory compliance. b. Domestic logistics systems are more complex and
involve additional components such as transportation and warehousing. c. Global logistics
systems are simpler and involve fewer components than domestic logistics systems. d. There is
no difference between a domestic logistics system and a global logistics system.

Answer: a. Global logistics systems are more complex and involve additional components such as
customs compliance and regulatory compliance.

6. The main advantage of using cross-functional teams in logistics is: a. Improved communication
and coordination between departments b. Increased employee satisfaction and motivation c.
Reduced costs and increased efficiency d. Better quality control and risk management

Answer: a. Improved communication and coordination between departments

7. Which of the following is not a reason why companies use outsourcing in logistics? a. To reduce
costs b. To gain access to specialized expertise c. To increase control over supply chain operations
d. To focus on core competencies

Answer: c. To increase control over supply chain operations

8. What is the difference between a third-party logistics (3PL) provider and a fourth-party logistics
(4PL) provider? a. 3PL providers are involved in transportation and warehousing, while 4PL
 providers focus on strategic supply chain management. b. 3PL providers are focused on strategic
supply chain management, while 4PL providers are involved in transportation and warehousing.
c. 3PL providers provide logistics services to a specific industry, while 4PL providers provide
logistics services to multiple industries. d. There is no difference between a 3PL provider and a
4PL provider.

Answer: a. 3PL providers are involved in transportation and warehousing, while 4PL providers focus on
strategic supply chain management.

9. Which of the following is not a key trend in global logistics management? a. Increased use of
technology and automation b. Growing emphasis on sustainability and social responsibility c.
Decreased reliance on outsourcing d. Greater focus on risk management and supply chain
resilience

Answer: c. Decreased reliance on outsourcing