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Mock exam 2.

3 Logistics
Examples Multiple choice questions. Indicate the one right answer by circling the
corresponding letter on the answer form.

1.
In building a new self designed house the Customer order decoupling
point is:
a.
b.
c.
d.

Make to order
Purchasing and make to order
Assemble to order
There is no decoupling point

2.

Which answer does not relate to a pull system?

a.
b.
c.
d.

It fits into the just in time philosophy


Manufacturing starts when the order is received
It is planning based
More than in a push system it decreases inventory levels

3.

Which of the following statements relating to customer service is false?

a.
The higher the inventory level, the higher the level of customer service
b.
The higher the level of customer service, the higher the profit
c.
Service level can be defined as the percentage of order lines that can
be delivered from stock
d.
The idea of customer service is not only important for sales, but for the
whole organization
4.

Customer Relationship Management enables a company to better:

a.
b.
c.
d.

keep an eye on the customer


respond to customer behaviour and cooperate with suppliers
pass on customer information to the suppliers
not pass on the information about groups of customers to the suppliers

5.

Among the tasks of physical distribution is not:

a.

Stock control of finished goods

b.
Taking care of a good production planning to ensure the delivery of the
required goods
c.
Transport of finished goods
d.
Storage and handling of finished goods in warehouses

6.

What can be achieved by ABC analysis?

a.
b.
c.
d.

Sorting out the importance of an article for the turnover


Get rid of obsolete stocks
Calculating which articles yields the highest net profit
Determine the life cycle of articles

7.

Which distribution channel is mainly used for e-commerce?

a.
b.
c.
d.

No distribution channel, because there is direct sales.


Direct channel.
Long channel, because the Internet is now also in between.
Specialized channel, especially designed for the Internet.

8.
What is the result of the chain effect of a small deviation in demand of
the consumers at the end of the chain (Bull whip effect)?
a.
b.
c.
d.

The
The
The
The

consumer starts to hoard.


retailer doesnt pay attention to inventory problems.
factory will have to face huge demand fluctuations.
wholesaler has no inventory problems.

9.
In an improvement project it becomes clear that a problem exists in
the area of productivity: it often happens that a machine is stopped because
there is no Work in Progress (WIP). A decision is made to make an Ishikawa
(fishbone) diagram. Under which M of the 4M fishbone is this problem
identified?

a.

The M of Method

b.
c.
d.

The M of the Machine, which not operating.


The M of the Man who had to ensure adequate supply
The M of the Material, because there is a shortage.

10.
Why is RFID typically applied to transport packaging (boxes) and not
(yet) to individual consumer packaging?
a.
better.
b.
c.
d.

Because the RFID sticker can be glued on the cardboard box


Because the risk of theft is greater.
The box represents a higher value, and can be better read.
The RFID tags would have too high radiation.

11.
What is the main reason for the introduction of supply chain
integration?
a.
b.
c.
d.

centralization of administration
simplification of the logistics processes
reduction of total costs
improvement of the quality of the product

12.
A purchaser tries to make far-reaching agreements with a supplier
about the exact timing of delivery and the exact place on the assembly line
where the goods must be delivered directly. Moreover, the supplier must
make use of standardized containers, and precisely monitor the production
sequence. By these measures, the organization of the buyer hopes to make
the goods flow as smoothly as possible.
In the Kraljic-matrix this is an example of :
a.
b.
c.
d.

purchasing management
material management
supply management
sourcing management

13.
Comment on the following statements
Statement 1. Assessing suppliers can be seen as the check phase in a PlanDo-Check- Act cycle
Statement 2. Supplier assessment can be done through the use of a vendor
rating card to grade the supplier on selected performance criteria
a. Only statement 1 is true

b. Both statements are false


c. Only statement 2 is true
d. Both statements are true

14.Among van Weeles E-procurement solutions is not:


a.
b.
c.
d.

Electronic
Electronic
Electronic
Electronic

market places
trade fairs
auctions
catalogue

15.Comment on the following statements


Statement 1. A bill of lading is a contract between the owner of the goods
and the carrier.
Statement 2. An export license is a company document describing the nature
of the exported goods.
a.
b.
c.
d.

Only statement 1 is true


Both statements are false
Only statement 2 is true
Both statements are true

Examples Open questions:


1.
2.
3.
4.
5.

What are the so called hard and soft elements of the 7S model?
What is the difference between order qualifiers and order winners?
How can a fish bone diagram be related to Pareto analysis? Give an example.
What does the EOQ model express?
What are the benefits of outsourcing procurement?

Answer key.
Multiple choice questions
1.
2.
3.
4.

b
c
b
b

5. b
6. a
7. b
8. c
9. d
10.c
11.c
12.c
13.d
14.b
15.a
Open questions
1. Systems, Strategy and Structure are the so called hard S-es.
Shared values, Skills, Staff and Style are the so called soft S-es of the 7S
model of Peters and Waterman.
2. The customer value attributes fall into two major categories order
winners and order qualifiers. Order qualifiers are the minimum standards
to make a customer consider to buy from you or not. Failing to meet these
standards provides reasons why customers will reject or ignore your
business, product or service. Order winners provide reasons why
customers choose your business, product or service.
3. The Ishikawa or fishbone diagram is used to find the root of process
imperfections. In the 4M method diagram the main categories man,
machine, method and material of causes are the main fish bones, the sub
causes are the side bones and the problem or effect is placed on the
position of the fish head. This powerful analytical tool is used in
combination with the Pareto analysis or 80/20 rule both in Kaizen and Six
Sigma quality programs. Through the use of the fishbone the 20% main
causes are identified, that account for 80% of the undesired effect.
Examples: quality of photocopies in relation to the 4Ms of the photocopy
production , quality of a cup of coffee
In relation to the process of preparing the coffee.
4. EOQ: Economic Order Quantity method determines the optimal order
quantity that will minimize the total inventory cost. EOQ is a basic model
and further models developed based on this model include the production
quantity model and quantity discount model. EOQ is an accounting
formula that determines the point at which the combination of order costs
and inventory carrying costs are the least. The result is the most cost
effective quantity to order. In purchasing this is known as the order
quantity, in manufacturing it is known as the production lot size.

5. Procurement outsourcing offers opportunities to not only save costs by


tapping into expertise and ideas from an outsourcing provider, it also
enabled its in-house team to focus on more strategic issues such as
demand management and stakeholder engagement. Other benefits are:
the possibilities it offers to take advantage of economies of scale, by going
to providers with better buying power or more expertise in certain
markets; avoiding further investments in transactional purchasing
technology; getting rid of low value activities and creating more
headroom to focus on value-adding activities. Outsourcing the firms
strategic sourcing to procurement service providers, means that
companies have consultancy-level capability on tap: high-quality people,
leading-edge methodology and technology, and the best data-analysis
skills.