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FLM511C- FUNDAMENTALS OF LOGISTICS MANAGEMENT- 1ST OPP- NOV 2023 |
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nAmlBIA unlVERSITY
OF SCIEn CE Ano TECHn OLOGY
CENTREFOR ENTERPRISEDEVELOPMENT
CATS PROGRAMME
QUALIFICATION: CERTIFICATEIN BUSINESS PROCESSMANAGEMENT
QUALIFICATION CODE: 21CABM
LEVEL: 5
COURSE CODE: FLMSllC
COURSE NAME:
MANAGEMENT
FUNDAMENTALS
OF LOGISTICS
SESSION: NOVEMBER 2023
DURATION: 3 HOURS
PAPER: THEORY
MARKS: 100
EXAMINER(S)
FIRST OPPORTUNITY EXAMINATION PAPER
Ms. Gloria Tshoopara
MODERATOR: Ms Hilma Kotti-Nuuyandja
INSTRUCTIONS
1. Answer All questions
2. Write neatly and clearly
3. Write e.g 20 facts for 20 points allocated per question OR Consider the marks allocated per
question to determine the appropriate length of your response.
THIS MEMORANDUM PAPER CONSISTSOF 4 PAGES(Including this front page)
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MULTIPLE CHOICE QUESTION
QUESTION 1
1. Which type of inventory costs can be challenging to estimate accurately due to factors such as
obsolescence and changes in market conditions?
(2 marks)
a) Holding costs
b) Ordering costs
c) Shortage costs
d) Transportation costs
2. Which of the following is a primary reason companies choose to outsource certain business
functions?
(2 marks)
a) To increase in-house expertise
b) To reduce costs and focus on core competencies
c) To centralise decision-making
d) To expand their product portfolio
3. What is the primary objective of "strategic inventory management" in supply chain strategy?
(2 marks)
a) Maximising order frequency
b) Minimising holding costs
c) Balancing supply and demand
d) Achieving competitive advantage through inventory optimisation
4. Warehouses emphasise __ _, and their primary purpose is to maximise?
a) product storage; throughput
b) product storage; usage of available storage space
c) rapid movement of product; throughput
d) rapid movement of product, usage of available storage space
(2 marks)
5. Which of the following is a primary advantage of the Just-In-Time (JIT) inventory system? (2
marks)
a) High safety stock levels
b) Low holding costs
c) Minimal supplier relationships
d) Reduced order frequency
6. The objectives of purchasing include:
a) Obtaining the goods and services at the highest price
bl Ensuring the best possible service and prompt delivery by the supplier
c) Obtaining goods and services of the lowest quality
d) Obtaining goods and services at any quantity
(2 marks)
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7. What is the primary advantage of using the Just-In-Time (JIT) inventory system?
a) High safety stock levels
c) Minimal warehouse space requirements
b) Low-order frequency
d) Increased lead times
8. __ refers to a process where a product is received in a facility, occasionally married with
product going to the same destination, and then shipped at the earliest time, without going into
longer-term storage.
(2 marks)
a) Just-in-time
b) Cross-docking
c) Consolidation
d) Turbologistics
9. The total logistics cost includes expenses associated with transportation, material handling and:
(2 marks)
a) Customer complaints, cost of food and highway usage taxes
b) Warehousing, inventory, stock-outs and order processing
c) Inventory control with sales forecasting
d) Stock outage control with sales forecasting
e) Historical figures weighted by last year's numbers
10. What is the fundamental difference between logistics and supply chain management? (2
marks)
a) One is more concerned with the distribution of manufactured goods
b) Supply chain management is more concerned with outbound logistics
c) Logistics is more concerned with transport
d) Logistics includes internal storage and movement of materials
11. All of the following are suggestions for dealing with dead stock (inventory), except:
a) aggressive marketing
b) donate to charities
c) make to stock
d) throwing it away
e) all are suggestions
(2 marks)
12. What is the fundamental difference between logistics and supply chain management? (2
marks)
a) One is more concerned with the distribution of manufactured goods
b) Supply chain management is more concerned with outbound logistics
c) Logistics is more concerned with transport
d) Logistics includes internal storage and movement of materials
Sub-total: (24 marks)
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QUESTION 2
Complete the following sentences
ANSWERS
2.1 In __ _,
the term ___
refers to the total time it takes for a product to move from the
supplier to the customer, including order processing, manufacturing, and transportation time.
(4 marks)
2.2 Effective _________
are available when needed.
is essential for minimising carrying costs and ensuring products
(2 marks)
2.3 Effective ________
enables companies to track the movement of goods in real-time
and promptly respond to any_____
(4 marks)
2.4 _______
is integral to logistics, as companies must anticipate and mitigate potential
disruptions such as natural disasters, strikes, and supply chain____
(4 marks)
2.5 A well-designed ____________
transportation and
can optimise the flow of products and reduce
(2 marks)
Sub-total: (16 marks)
QUESTION 3
Analyse the significance of transportation in logistics. Discussthe various transportation modes (road,
rail, air, sea, pipeline) and their suitability in different logistics contexts. Provide real-world examples
of companies that have leveraged innovative transportation solutions to enhance their logistics
efficiency.
(20 marks)
QUESTION 4
Delve into the complexities of inventory management within logistics. Explain the concept of just-in-
time inventory versus safety stock and discuss the trade-offs between the two. Share case studies of
organisations that have successfully managed their inventory to meet customer demands while
minimising carrying costs.
(20 marks)
QUESTION 5
Discussthe common challenges faced by logistics managers in today's globalised and rapidly changing
business environment. Explore how increasing transportation costs, supply chain disruptions, and
demand forecasting accuracy impact logistics decision-making.
(20 marks)
TOTAL= 100 MARKS
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