Elements of Logistics Question Bank


The following is the list of questions appeared in University papers Of “Elements of Logistics Management” from Nov 2001-2008.

Question 2


2 mks:-
1) Benchmarking
2) Customer retention
3) Terminal delays
4) Lead time
5) Vendor managed inventory
6) What is intermodal transportation system?
7) Define reverse logistics
8) What is JIT II?
9) Define obsolescence cost
10) State main objectives of customer service
11) What is “Fill rate”?
12) Define 4th party logistics
13) State operating objectives of logistics management
14) What is Electronic Data Interchange (EDI)?
15) Define “Re-order level”
16) Define logistical management
17) What are the advantages of hiring public warehouses?
18) What is matrix organization
19) Define Activity based costing
20) Differentiate b/w MRP I and MRP II
21) Cross docking
22) Economic order quantity
23) Fill rate
24) Bill of material
25) Intermodal transportation
26) Palletisation in material handling
27) Drivers in reverse logistics
28) Internal performance measures in logistics
29) Activity based costing
30) ABC classification in inventory control
31) Basic functions of warehousing
32) Product related factors in transportation costs
33) Relevance of distance and volume to transportation cost
34) Differentiate b/w internal and external logistics information system
35) Distinguish b/w MRP-I and DRP
36) “Pipeline is a modal transport” – Explain
37) Pipeline inventory is a form of inventory

10 mks:-
1) Explain the growing importance of Logistics management in India in today’s context
2) Explain in detail various parameters to achieve logistical competency
3) How is performance appraisal carried out in logistics function?
4) What is economic order quantity in inventory problem? Discuss its basic square root formula along with assumptions and limitations
5) Explain the different objectives of developing and implementing performance measurement system in logistics
6) Explain the important steps involved in layout, design and site selection for a model warehouse


1) Elements of Customer Service or Importance
2) Objectives and Components of Logistics Performance Measurement
3) Objectives, Types, Principles of Material Handling
4) Importance/ Functions and Role of Transportation,
5) Types of Transportation costs
6) Demand Forecasting and its methods
7) Costs, Assumptions and Limitations of EOQ
8) Objectives, Functions, design and layout of warehousing
9) Different methods of Inventory control
10) P and Q system of inventory control
11) Elements of logistics costs
12) Functions of Logistics
13) Inbound and outbound logistics
14) Responsive Organization
15) Mission Based Costing
16) Activity Based Costing
17) Functions of Packaging
18) 4 PL
19) DRP
20) Process of outsourcing and its benefits
21) Perfect Order Concept
22) Information functionality
23) Primary activities of LIS

Exclusively for Oct 2010 Exams of Mumbai University for TYBMS Sem V by Achievers Academy

Q. 1)
a) How is the logistical competency achieved?
b) What’s pull whipped effect? How it is controlled through Kanban?
c) What are intermodal transport system?
d) What are inventory control procedure?
e) State importance of Logistics parks?

a) What are operating objectives of logistics?
b) What is 4PL?
c) How is warehouse layout design made? (Infra, Mkt, Regularity, Tax.. etc.)
d) How inventory is classified?
e) Modification of ABC analysis
f) What is activity based costing and mission based costing?

a) Difference b/w Logistics and SCM
b) What are functions of logistics management?
c) How are carrier selection made by Selector (Freight Management)
d) Inventory functionality and reasons for carrying inventory
e) Economic benefits of Golden Quadrilateral

a) State importance of reverse logistics
b) What is EDI
c) What is unitization, containerization and palleterization
d) EOQ, formulae, reorder point, square root formulae

Q. 5)
a) What are customer service elements and also state phases of customer service.
b) Different types of warehousing
c) Different types of warehousing strategy and transport strategy
d) Inbound, outbound process
e) State inventory related cost
f) Principles of material handling equipment

Q. Performance Measurement
Q. Modern Inventory System
Q. Reasons for outsourcing

P.S. These are the important topics but make it a point that you prepare other topics well.



  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?
  1. Explain various stages of logistical organization and their development.
  2. What is the importance of Customer service in competitive business scenario? [Oct’06]
  3. What are the various elements of Customer Service? Explain. [May’06, Oct’05]
  4. What is demand forecasting? Explain any three methods of demand forecasting. (Oct’05)
  1. Explain the categorization of the various elements of Customer Service

10.  What is the importance of forecasting? What methods are used for forecasting?



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.


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)

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?


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.


1)      What is the Economic Order Quantity in inventory problem? Discuss its basic square root formula along with assumptions and limitations (Oct ’02, ‘07)

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.

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)


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


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)

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?


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)


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)

Inter modal transportation System (May’06)

Hidden costs in transportation (May’05)

Exempt & Private transport carriers. (May’05)

Piggyback service in transportation (May’03)


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)


  • 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 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)


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)


What is Electronic Data Interchange (EDI)? (Oct’06)

State the advantages of Information Technology to logistical efficiency (May’07)

Information functionality (Oct’07)


What is ‘fill rate’? (Oct’06)

Fill rate (Oct ’04)

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)


List the phases of logistics planning (May’02)


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)


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)


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)

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  1. I was wondering if u have the model answers to the questions above. For example the questuiion 5, with 10marks. The one of the different objectives in developing and implementing performance measurement systems in logistics

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