LOGISTICAL MANAGEMENT - QUESTION BANK

OVERVEIW
1. Explain the importance of logistics decisions in improving the profitability of an
organization. .[May’05]
2. “Properly integrated outbound and inbound logistics can provide an efficient logistics
system”. Explain.[Nov’06]
3. How logistics management helps organization in gaining competitive advantage to
deliver superior customer service. (Oct’07)
4. Why has logistics recently been receiving more attention as a strategic function of the
organization? (May’06)
5. What do you understand by inbound and outbound logistics? Explain with example.
(May’03)
6. Define logistics and its mission? Explain the competitive advantage available through
Logistics? (May’02)
7. Describe operational objectives of logistical system. (May’02)
8. What is logistical mission? How does it fulfill business objectives?
9. What is the role of Logistical Management in competitive business?
10. What are the Operational objectives of logistics? What is their significance in Logistical
Management? Explain.
11. What are Logistical functions? And why should they be performed?
12. Comment on Logistical Interfaces with production & marketing and their importance.
13. What is logistical competency? How is it developed in business?
14. Explain the evolution of integrated logistics and the factors influencing the evolution.
TRANSPORTATION
1) What are the main functions of transportation? And explain its role in integrated logistical
management. ( Oct’07)
2) What are the main functions of transportation? Explain the role of transportation in
integrated logistical management. ( Oct’06)
3) What is the importance of transportation activity in logistics management? ( Oct’05)
4) What factors are to be considered for selecting mode of transport? Explain. ( May’07)

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5) Briefly discuss any three modes of transportation with their relative advantages and
disadvantages. (May’06)
6) Discuss the usefulness of inter-modal transportation in today’s globalization scenario?
(May’05)
7) Critically examine various criteria in selection of transport carrier. (May’04)
8) What is transportation mode? Describe various modes of transportation, their advantages
and cost elements.
9) Explain the importance of transportation
10) Explain various pricing factors for transportation.
11) What is an Inland Container Depot [ICD]? What type of coordination with transportation
will be required?
12) What is transportation environment and who are the participants in transportation
decisions?
13) Explain transportation infrastructure.
14) What are nodal points? What is their significance in transportation network?
15) How transportation policy is chalked out for a company? What options are available for
performing transportation?
16) What is inter-modal transportation? Why is it performed in business? Explain various
inter-modal transportation methods.
17) Explain the role of Containerization in achieving the objectives of flexibility, lead time
reduction and minimum cost in Logistical Management?
INVENTORY MANAGEMENT
1) What is the Economic Order Quantity in inventory problem? Discuss its basic square root
formula along with assumptions and limitations (Oct ’02)
2) How does Economic Order Quantity model select the most economical order quantity?
Explain with example. (May’03)
3) Critically examine the application of ABC analysis in Inventory Management. Give a
numerical example. (Oct’03)
4) Explain Perpetual and Periodic review methods of Inventory control. (May’04)
5) What is Selective Inventory control? What are various methods adopted in Selective
Inventory control policy? (Oct ’04)

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6) Compare and contrast EOQ & JIT system of inventory management. Explain the basics
of these two systems of inventory policies. (May’05)
7) 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)
8) What are various types of Selective Inventory control Techniques? Briefly discus the
same. (May’06)
9) What are different methods available for improving inventory management performance
of an organization? (Oct ‘06)
10) What is the role of Finished Goods Inventories in Physical Distribution System?
(May’07)
11) What is economic Order Quantity? State its assumptions and limitations (Oct 2007)
12) What is quadrant technique? How is this used for inventory management?
13) Explain how excessive inventories erode profit of the organization
14) How does JIT influence the inventory management in an organization?
15) What are different functions of inventory? Emphasize disproportionate risks taken by
different participants of a distribution channel?
16) What is vendor managed inventory under JIT philosophy of procurement?
17) How do you decide inventory policy for an organization? What do you understand by
asset turn over ratio?
18) Outline major differences in inventory control of manufacturing unit, raw material stores
& field distribution warehouse.
19) Why is safety stock necessary? Establish its relationship with reorder level consumption
rate & lead time
20) Briefly explain Q & P models or approaches [Perpetual and Periodic review methods]
for managing Inventory. Compare their significant features.

WAREHOUSING

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1) (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)
2) What is warehousing? Why do organizations use warehouses in spite of the obvious
additional costs? (Oct’06)
3) 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)
4) Explain various factors deciding the number of warehouses. Also discuss the basic layout
and design objectives of a warehouse. (Oct’04)
5) What are the underlying principles and square root law in deciding the number of
warehouse locations? (Oct’03)
6) Explain important steps involved in lay out, design and site selection for a Model
Warehouse. (Oct’02)
7) Describe different types of warehouses & state their relative advantages & disadvantages to
an organization. (May’07)
8) Explain the difference between consumer and logistics oriented packaging. (May’07)
9)
10) Describe different types of warehouses & state their relative advantages & disadvantages.
(May’06)
11) (a) Discuss factors deciding the number, design, layout and objectives of a warehouse. (b)
differentiate between stores, warehouse and distribution warehouse (May’05)
12) Explain the basic principles and square root law while considering the warehouse locations
for an organization? (May’04)
13) Describe various material handling equipment and their relevance in total logistics
(May’02)
14) What is warehousing? How would you decide location of warehouses?
15) What are the various activities under warehousing management? Explain.
16) Enumerate and explain economic and service benefits of warehouses.
17) What are the Principles of Warehouse designs? Explain.
18) What are warehousing alternatives?
19) How would you formulate Warehousing strategy for your company?
20) What specific requisites an Ideal Warehouse Location has to satisfy?

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21) Explain the square root law for inventory at various locations.
22) What is Packaging? Describe various Types of packaging.
23) What are the functions of packaging?
24) How would you plan material handling system of inbound handling?
25) Discuss manual, mechanical & automatic material handling system with examples.
26) “Material handling does not add value to product but it adds cost”. Comment with
reference to total logistics distribution cost.
LOGISTICAL NETWORK ANALYSIS
1) What is a logistical net work? Briefly explain the logistical net work of a company you
have seen.
2) What is the importance of location analysis or logistical network design?
INFORMATION
1) Explain the strategic role of information technology in logistics management. (Oct’04)
2) Draw and explain ‘order processing cycle’ (May’07)
3) Explain the principles for logistical information system design
4) Comment on the statement ‘Logistical Competency is competitive Logistical Information
System’
5) Detail the importance of information in logistics
6) Design an information system suitable for logistics objectives catering to order processing
7) Explain the importance and significant features of Logistical Information System
8) What are the primary activities of LIS?
9) Explain the four levels of information functionality
PERFORMANCE MEASUREMENT
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)

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6) Explain various guidelines for logistics performance categories and their measurements.
(May’04)
7) Comment on Internal/ External performance measurement and relevant measures
8) How is performance appraisal carried out in Logistics Function?
9) What are key measures of performance of logistics?
10) What is bench marking? How is it used for performance appraisal in logistics management?
11) Explain the concepts of logistical performance measurement & controlling
12) What are various levels of measurement and information flow
13) Explain various reports used in logistical performance reporting.
LOGISTICAL STRATEGY & PLANNING
1) How logistical strategy is relevant to business? Explain
2) Enumerate various phases in logistical planning and explain any one
3) What logistical decisions reside at the core of logistical strategy? Why are they so
important?
4) What is logistical Strategy and Planning?
5) What are logistical decisions?
LOGISTICAL COSTING
1) Explain the concept of mission based costing. What are its benefits? (Oct’03)
2) What is Activity Based Costing? What are its advantages over the traditional costing
methods? (May’06)
3) Explain briefly the basic principles of logistics costing. (May’03)
4) What is meant by total cost approach? What are its basic features and elements?
5) What is conventional approach to costing? Explain the concept and implications.
6) Explain the strengths and applicability of Mission based costing [or budgeting] in logistics
7) What difficulties are encountered in practicing Activity Based Costing? How can these be
overcome?
CUSTOMER SERVICE
1) What is the importance of Customer service in competitive business scenario? [Oct’06]
2) What are the various elements of Customer Service? Explain. [May’06, Oct’05]
3) Define Customer Service Logistics. Critically examine its importance in Logistics
Management.[May’03]

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4) What is the significance of 7-R rule in Customer Service?
OTHER TOPICS
1) What is the process of outsourcing? And what are the benefits an organization gets by
outsourcing their logistical functions? (Oct’07)
2) What is demand forecasting? Explain any three methods of demand forecasting. (Oct’05)
3) Explain various stages of logistical organization and their development.
4) What is matrix organization? Explain its significant features.
5) Explain Lead Time. What are buyer and supplier factors related to lead-time?
6) What factors are taken into consideration while out-sourcing?
7) What is the importance of forecasting? What methods are used for forecasting?
8) Explain the concepts of MRPI & MRPII and how these concepts are used in Logistical
Management.
9) Explain the concepts of DRPI & DRPII and how these concepts are used in Logistical
Management.
10) Explain the link between MRP & DRP systems in a Logistical system.
11) Explain response based techniques like QR, CR & AR and vendor managed inventory