CLTD Test Questions with complete
Solutions8
Reseasonalizing - ANSWERS -multiplying the deseaonalized date by the given periods seasonal
index to find the seasonal forecast values and gives the actual forecast values for each period
What is Logistics? - ANSWERS -Designs, plans, executes and controls forward and reverse
movements, storage, and handling of goods
Logistics= physical supply + distribution (outbound)
Logistics= materials management + distribution (inbound)
8 functions of logistics - ANSWERS -1. warehousing
2. transportation
3. import/exports
4. packaging
5. materials handling
6. inventory management
7. order management
8. warehouse management/transportation execution systems
Effectiveness - ANSWERS -the ability to meet stated goals and whether those goals are the true
direction the organization should be taking (meet customer needs?); e.i. warehouse increases
capacity to store without increasing cost
Efficiency - ANSWERS -use fewer resources to accomplish a goal
, Distribution - ANSWERS -activities associated with the movement of material, usually finished
goods or service parts, from the manufacturer to the customer
Physical supply - ANSWERS -The movement and storage of goods from suppliers to
manufacturing; cost of physical supply is ultimately passed on to the customer
total cost concept - ANSWERS -all logistical decisions that provide equal service levels should
favor the option that minimizes the total of all logistical costs and not just cost reductions in one
area (such as lower transportation charges) alone
Ex) slower transport= more inventory and warehousing and long lead times
line haul - ANSWERS -portion of a transportation journey that moves between two
transportation terminals; distinguished from and excludes the pickup and delivery portions of a
journey used to acquire or distribute less-than-truckload freight
Capital cost - ANSWERS -cost of financing the physical inventory, which may include finance
charges or the opportunity cost of investing in inventory rather than some other
investment/opportunity
Trade off's related to 4P's of Marketing - ANSWERS -Place: number of echelons impact logistics
complexity
Price: bulk discount levels, free shipping?
Product: consumer package needs to fit unit loads, equipment
Promotion: push or pull variability strains logistics
Production Methods that impact types of inventory held - ANSWERS -1. ETO (engineer to order)
2. MTO (made to order)
3. ATO (assemble to order)
4. MTS (made to stock)
Solutions8
Reseasonalizing - ANSWERS -multiplying the deseaonalized date by the given periods seasonal
index to find the seasonal forecast values and gives the actual forecast values for each period
What is Logistics? - ANSWERS -Designs, plans, executes and controls forward and reverse
movements, storage, and handling of goods
Logistics= physical supply + distribution (outbound)
Logistics= materials management + distribution (inbound)
8 functions of logistics - ANSWERS -1. warehousing
2. transportation
3. import/exports
4. packaging
5. materials handling
6. inventory management
7. order management
8. warehouse management/transportation execution systems
Effectiveness - ANSWERS -the ability to meet stated goals and whether those goals are the true
direction the organization should be taking (meet customer needs?); e.i. warehouse increases
capacity to store without increasing cost
Efficiency - ANSWERS -use fewer resources to accomplish a goal
, Distribution - ANSWERS -activities associated with the movement of material, usually finished
goods or service parts, from the manufacturer to the customer
Physical supply - ANSWERS -The movement and storage of goods from suppliers to
manufacturing; cost of physical supply is ultimately passed on to the customer
total cost concept - ANSWERS -all logistical decisions that provide equal service levels should
favor the option that minimizes the total of all logistical costs and not just cost reductions in one
area (such as lower transportation charges) alone
Ex) slower transport= more inventory and warehousing and long lead times
line haul - ANSWERS -portion of a transportation journey that moves between two
transportation terminals; distinguished from and excludes the pickup and delivery portions of a
journey used to acquire or distribute less-than-truckload freight
Capital cost - ANSWERS -cost of financing the physical inventory, which may include finance
charges or the opportunity cost of investing in inventory rather than some other
investment/opportunity
Trade off's related to 4P's of Marketing - ANSWERS -Place: number of echelons impact logistics
complexity
Price: bulk discount levels, free shipping?
Product: consumer package needs to fit unit loads, equipment
Promotion: push or pull variability strains logistics
Production Methods that impact types of inventory held - ANSWERS -1. ETO (engineer to order)
2. MTO (made to order)
3. ATO (assemble to order)
4. MTS (made to stock)
