LOGISTICAL MANAGEMENT - QUESTION BANK

UNIT I
1. Explain the importance of logistics decisions in improving the profitability of an
organization. .[May’05]
2. Why has logistics recently been receiving more attention as a strategic function of the
organization? (May’06)
3. Explain the evolution of Logistical management and supply chain management
4. What factors are considered to have driven (drivers of SCM) SCM?
5. Explain various stages of logistical organization and their development.
6. What is the importance of Customer service in competitive business scenario? [Oct’06]
7. What are the various elements of Customer Service? Explain. [May’06, Oct’05]
8. Explain the categorization of the various elements of Customer Service
9. What is demand forecasting? Explain any three methods of demand forecasting. (Oct’05)
10. What is the importance of forecasting? What methods are used for forecasting?
UNIT II
(TRANSPORTATION)
1) Critically examine various criteria in selection of transport carrier. (May’04)
2) Discuss the usefulness of inter-modal transportation in today’s globalization scenario?
(May’05)
3) Briefly discuss any three modes of transportation with their relative advantages and
disadvantages. (May’06)
4) What factors are to be considered for selecting mode of transport? Explain. ( May’07)
5) Explain various pricing factors for transportation.
6) Explain transportation infrastructure.
(WAREHOUSING)
1) Discuss merits and demerits of “public warehouse” as a warehousing alternative in
logistical management. (5 mks-Nov’09)
2) (a). What are the main objectives and functions of Warehousing? Explain. (b). what
are the principles to be applied for designing efficient material handling system?
(Oct’07)

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 3) What is warehousing? Why do organizations use warehouses in spite of the obvious
additional costs? (Oct’06)
4) Explain various factors deciding the number of warehouses. Also discuss the basic
layout and design objectives of a warehouse. (Oct’04)
5) Describe different types of warehouses & state their relative advantages &
disadvantages to an organization. (May’06, May’07)
6) Discuss factors deciding the number, design, layout and objectives of a warehouse.
(b) differentiate between stores, warehouse and distribution warehouse (May’05)
7) What is warehousing? How would you decide location of warehouses?
8) What are the various activities under warehousing management? Explain.
9) Enumerate and explain economic and service benefits of warehouses.
10) What are the Principles of Warehouse designs? Explain.
11) What are warehousing alternatives?
12) Explain important steps involved in lay out, design and site selection for a Model
Warehouse. (Oct’02)
13) How would you formulate Warehousing strategy for your company?
(MATERIAL HANDLING AND PACKAGING)
7) What are the main objectives of material handling system design? What are the various
types of material handling equipment used in a manufacturing plant? (Oct’05)
8) Explain the difference between consumer and logistics oriented packaging. (May’07)
9) Describe various material handling equipment and their relevance in total logistics
(May’02)
10) What specific requisites an Ideal Warehouse Location has to satisfy?
11) What is Packaging? Describe various Types of packaging.
12) What are the functions of packaging?
13) How would you plan material handling system of inbound handling?
14) Discuss manual, mechanical & automatic material handling system with examples.
UNIT III
1) What is the Economic Order Quantity in inventory problem? Discuss its basic square root
formula along with assumptions and limitations (Oct ’02, ‘07)

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2) How does Economic Order Quantity model select the most economical order quantity?
Explain with example. (May’03)
3) Explain Perpetual and Periodic review methods of Inventory control. (May’04)
4) What is Selective Inventory control? What are various methods adopted in Selective
Inventory control policy? (Oct ’04, ‘06)
5) Compare and contrast EOQ & JIT system of inventory management. Explain the basics
of these two systems of inventory policies. (May’05)
6) Define Economic Order Quantity. What are the different costs to be considered while
calculating the EOQ? A firm uses 1000 units of a certain item per month, having a unit
price of Rs.20/-. The ordering cost is Rs.15/- per order and annual ordering cost is
@20%. In what economic lot should the items be purchased to minimize the total
procurement cost? (Oct ’05)
7) What are different methods available for improving inventory management performance
of an organization? (Oct ‘06)
8) What is quadrant technique? How is this used for inventory management?
9) Explain how excessive inventories erode profit of the organization
10) How does JIT influence the inventory management in an organization?
11) What are different functions of inventory? Emphasize disproportionate risks taken by
different participants of a distribution channel?
12) What is vendor managed inventory under JIT philosophy of procurement?
13) How do you decide inventory policy for an organization? What do you understand by
asset turnover ratio?
14) Outline major differences in inventory control of manufacturing unit, raw material stores
& field distribution warehouse.
15) Why is safety stock necessary? Establish its relationship with reorder level consumption
rate & lead time
16) Briefly explain Q & P models or approaches [Perpetual and Periodic review methods]
for managing Inventory. Compare their significant features.
17) Explain the concepts of MRPI & MRPII and how these concepts are used in Logistical
Management.

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 18) Explain the concepts of DRPI & DRPII and how these concepts are used in Logistical
Management.
19) Explain the link between MRP & DRP systems in a Logistical system.
20) Explain response based techniques like QR, CR & AR and vendor managed inventory
21) Explain the strategic role of information technology in logistics management. (Oct’04)
22) Draw and explain ‘order processing cycle’ (May’07)
23) What is the role of Logistical Information System in procurement area? (5 mks-Nov’09)
24)
25) Explain the principles for logistical information system design
26) Comment on the statement ‘Logistical Competency is competitive Logistical Information
System’
27) Detail the importance of information in logistics
28) Design an information system suitable for logistics objectives catering to order
processing
29) Explain the importance and significant features of Logistical Information System
30) What are the primary activities of LIS?
31) Explain the four levels of information functionality
UNIT IV
1) What are the main objectives of logistical performance measurement? Explain. [Oct’06]
2) What are the objectives of logistical performance measurement? Describe the components
of internal and external performance measurement. (Oct’05)
3) Discus the various factors of performance measures of logistic activities. (Oct’04)
4) Explain different objectives of developing and implementing performance measurement
systems in integrated logistics. (Oct’02)
5) What are the elements of internal and external performance measurement system?
(May’07)
6) Explain various guidelines for logistics performance categories and their measurements.
(May’04)
7) What is the importance of location analysis or logistical network design?
8) What are the objectives of location analysis or logistical network design?
9) Explain briefly the basic principles of logistics costing. (May’03)

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 10) Explain the concept of mission based costing. What are its benefits? (Oct’03)
11) What is Activity Based Costing? What are its advantages over the traditional costing
methods? (May’06)
12) What is meant by total cost approach? What are its basic features and elements?
13) What is conventional approach to costing? Explain the concept and implications.
14) Explain the strengths and applicability of Mission based costing [or budgeting] in logistics
15) What difficulties are encountered in practicing Activity Based Costing? How can these be
overcome?
16) Define Customer Service Logistics. Critically examine its importance in Logistics
Management.[May’03]
17) What is the significance of 7-R rule in Customer Service?
LOGISTICAL MANAGEMENT CONCEPTS
What is Reverse Logistics? (May’06, Oct’07)
State operating objectives of logistical management (Oct’06)
Define Lead-time (May’06)
Define logistics management (Oct ’05)
Core competency and third party logistics in global business environment (May’05)
Important functions of logistics (May’03)
Drivers in reverse logistics (Oct’03, May’04)
Role of planning in logistics management (Oct’02)
Differentiate between inbound and outbound logistics (May’02)
Centralized organization structure can be a hurdle for efficient logistics. (May’02)
Fourth party logistics ((Oct’07, Oct’04, Oct’06)
Responsive organization (Oct’06)
Physical Distribution Performance Cycle (May’04)
Logistics in Indian business environment (May’04)
TRANSPORTATION
What is inter-modal transportation system? (Oct’03, Oct’07)
Inter modal transportation – Fishy back, Birdy back and land bridge ()
Unbalanced transportation (May’05)
Product related factors in transportation costs (Oct ’02)

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Inter modal transportation System (May’06)
Hidden costs in transportation (May’05)
Exempt & Private transport carriers. (May’05)
Piggyback service in transportation (May’03)
INVENTORY MANAGEMENT
Define Re Order Level (Oct’06)
What is JIT II (Oct’07)
JIT system in logistics (May’03)
Define obsolescence cost (Oct’07)
Define “safety stock” (May’07)
What is Vendor Managed Inventory? (May’07)
ABC classification in Inventory control (Oct ’02)
P & Q System of inventory control (Oct’05, May’06)
Lead time in inventory management (Oct’04)
Supplier Selection and Evaluation Technique (May’05)
Inventory functionality and principles (May’04)
Economic order quantity (May’02, Oct ’04)
NUMERICALS
 Annual demand of the item is 1000 units, ordering cost is Rs.10/- per order and inventory
carrying cost is 30% per year. Price per unit is Re.0.50/- Lead time is two years. Determine
the optimal order quantity and Re Order Level (Oct’03)
 For a normally distributed lead time demand, the expected demand during lead time is 80
units and standard diviation of demand during leadtime is 10 units. If it is decided to have
95% level of customer service, and then find the reorder level. (Oct’04)
 A company wants reduce its current inventory at 16 warehouses locations from 8000 units to
4000 units using square root law. Find the required number of warehouses. (May’05)
 In a central grain store, it takes 15 days to get stock after placing an order and daily 500 tons
are dispatched to neighboring markets. On an ad hoc basis safety stock is assumed to be 10
days stock. Calculate the Re Order Point. (May’04)
 A tractor manufacturing company has calculated that 16 spare engines will result into a stock
out risk of 25% while 20 will reduce the risk to 15% and 24 to 10%. The lead time is three

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 months and average usage is six engines per month. What should be the Re Order Level
(ROL) to maintain 85% service level. (May’03)
 The average yearly consumption for an item is 3600 units and the normal lead time is one
month. If the maximum consumption has been up to 4800 units per year and the maximum
lead time is two months, what should be the buffer stock of the item? (Oct ’02)
WAREHOUSING
State logistical functions of a warehouse (May’07)
What are the advantages of hiring public warehouses ((Oct ’05)
Cross docking (Oct ’04)
Palletizing in material handling (Oct’03)
What are the Logistics functions performed by Packaging? (May’06)
Unitization in Logistics (May’04)
Importance of packaging in logistics management (May’03)
Basic functions of warehousing (Oct ’02)
What is containerization? (May’02)
Design and layout of warehouses ((Oct’05)
Logistical functions of Packaging (Oct’06)
Objectives of material handling (Oct’06)
Functions of packaging (Oct’04)
Unitization and containerization (Oct’04)
Materials handling System: Objectives and Scope (May’06)
Palletization and containerization (May’05)
Factors influencing number of warehouses (May’03)
Packaging (May’03)
INFORMATION
What is Electronic Data Interchange (EDI)? (Oct’06)
State the advantages of Information Technology to logistical efficiency (May’07)
Information functionality (Oct’07)
PERFORMANCE MEASUREMENT
What is ‘fill rate’? (Oct’06)
Fill rate (Oct ’04)

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Internal performance measures in logistics
What is the process of benchmarking? (May’07)
What are the main objectives of Logistics performance Measurement? (May’06)
External performance measures in logistics (May’04)
“Logistics Appraisal is the first step in logistics costing” – Explain (May’02)
Perfect order concept (Oct’07)
LOGISTICAL STRATEGY & PLANNING
List the phases of logistics planning (May’02)
LOGISTICAL COSTING
Define activity based costing (Oct ’05)
Mission costing (May’05)
Activity based costing (Oct ’02)
Activity based costing ((Oct’07, May’07)
Mission based costing (Oct’06)
Various elements of logistics costs ((Oct’05)
Mission based costing in logistics (Oct’02)
Total-cost Analysis (Oct’02)
CUSTOMER SERVICE
State the objectives of Customer Service (May’06)
Elements of Customer Service (May’05)
State main objectives of customer service (Oct’07)
Performance measures & Customer Service (May’04)
OTHER TOPICS
What is matrix organization ((Oct ’05)
Differentiate between MRP I & MRP II ((Oct ’05)
Bill of materials (Oct ’04)
Process of outsourcing (May’07)
MRP & DRP (May’05)
DRP (May’02)