SCM 372 LOGISTICS FINAL EXAM QUESTIONS &
ANSWERS
Among the four utilities, logistics add value by providing a place and time utility. Which
part of the definition of logistics management is most probably related? - Answer -
Delivery to the point of consumption
Given the definition of SCM by CSCMP, which part of the definition is most probably
associated with the Form Utility? - Answer -Conversion
There is a less airline service between Lansing and NY compared with the between LA
and NY. Which of the following concepts can be used to get a logistics perspective? -
Answer -Economies of density
Suppose due to the increasing # of international students at MSU, the frequency of the
airline service between Lansing and NY has been increased, but at the same time the
ticket costs less than before. This can be explained by: - Answer -Economies of scale
and economies of density
What is the essence of tradeoff concept in logistics? - Answer -to minimize total
logistics cost given certain customer service level
Which statement about logistics distribution system is NOT true? - Answer -Inventory
holding cost will always increase in line with the increase in number of distribution
centers
What statement about the supply chain model is correct? - Answer -The solid arrow
from 1 to sourcing can be considered as procurement activity which involves inbound
shipment flow
Normally, which transportation mode has the largest share among five different modes?
- Answer -Road
Which of the transportation modes can be considered to have the highest fixed cost? -
Answer -Pipeline
A major difference between 3PL and 4PL is the 3PL is asset based and 4PL is non-
asset based. - Answer -True
AFTK stands for available Freight Ton Kilometers. It is the measure of a flight's freight
carrying capacity. It is calculated by multiplying the number of ton of freight on an
aircraft by the distance traveled in kilometers. - Answer -True
ANSWERS
Among the four utilities, logistics add value by providing a place and time utility. Which
part of the definition of logistics management is most probably related? - Answer -
Delivery to the point of consumption
Given the definition of SCM by CSCMP, which part of the definition is most probably
associated with the Form Utility? - Answer -Conversion
There is a less airline service between Lansing and NY compared with the between LA
and NY. Which of the following concepts can be used to get a logistics perspective? -
Answer -Economies of density
Suppose due to the increasing # of international students at MSU, the frequency of the
airline service between Lansing and NY has been increased, but at the same time the
ticket costs less than before. This can be explained by: - Answer -Economies of scale
and economies of density
What is the essence of tradeoff concept in logistics? - Answer -to minimize total
logistics cost given certain customer service level
Which statement about logistics distribution system is NOT true? - Answer -Inventory
holding cost will always increase in line with the increase in number of distribution
centers
What statement about the supply chain model is correct? - Answer -The solid arrow
from 1 to sourcing can be considered as procurement activity which involves inbound
shipment flow
Normally, which transportation mode has the largest share among five different modes?
- Answer -Road
Which of the transportation modes can be considered to have the highest fixed cost? -
Answer -Pipeline
A major difference between 3PL and 4PL is the 3PL is asset based and 4PL is non-
asset based. - Answer -True
AFTK stands for available Freight Ton Kilometers. It is the measure of a flight's freight
carrying capacity. It is calculated by multiplying the number of ton of freight on an
aircraft by the distance traveled in kilometers. - Answer -True
