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TEST BANK
CHAPTER 4: ORGANIZATIONAL AND MANGERIAL ISSUES IN LOGISTICS
Multiple Choice Questions (correct answers are bolded)
1. ___________ and ___________ are the two basic organizational structures associated with
logistics.
2. In a ___________ logistics structure, logistics activities are managed in multiple departments
throughout an organization.
3. One problem with a ___________ logistics structure is that because logistics activities are
scattered throughout a firm, they likely remain subservient to the objectives of the department in
which they are housed.
4. In a ___________ logistics structure, multiple logistics activities are combined into, and
managed as, a single department.
5. A ___________ logistics organization implies that the corporation maintains a single logistics
department that administers the related activities for the entire company from the home office.
6. A(n) ___________ logistics organization means that logistics-related decisions are made
separately at the divisional or product group level.
7. A primary advantage of ___________ logistics is its relative efficiency, whereas a primary
advantage of ___________ logistics is its customer responsiveness.
8. Which of the following is an advantage of a decentralized logistics organization?
3
9. Which of the following is an advantage of a centralized logistics organization?
10. ___________ organizational design has its foundations in the command-and-control military
operation, where decision making and communication often follow a top-down flow.
11. A ___________ organizational design attempts to create an organization that is responsive to
the parameters of the contemporary business environment.
12. A key attribute of network organizational design is a shift from ___________ to
___________.
13. ___________ refers to satisfying current and emerging customer needs.
14. ___________ can be defined as an organization’s ability to address unexpected operational
situations.
15. ___________ refers to the amount of output divided by the amount of input.
16. Productivity improvement efforts in logistics are often directed toward ___________.
17. What is the most important purpose of warehouse work rules?
Synthesis; AACSB Category 3: Analytical thinking]
18. What major retailer has been testing drones within its warehouses as a potential solution to
enhance productivity?
Application; AACSB Category 3: Analytical thinking]
19. A ___________ is a device used to monitor and control the actions taken by a driver and
his/her vehicle.
20. ___________ refers to an organization making their unused resources available to other
organizations.
21. ___________ is a set of generic standards used to document, implement, and demonstrate
quality management and assurance systems.
22. The quality concept that emphasizes the elimination of business errors is known as
___________.
23. ___________ refers to the integration of Six Sigma and the Lean approach.
24. What is a key difference between IS0 9000 and the Malcolm Baldrige National Quality
Award?
25. The ___________ has been established to identify uncertainty sources that can affect the risk
exposure for logistics activities.
7
26. From a logistics perspective, two of most important government agencies incorporated into
the Department of Homeland Security (DHS) were the Transportation Security Administration
(TSA) and ___________.
27. The ___________ is responsible for the security of the U.S. transportation system.
28. ___________ refers to a program where public and private organizations work together to
prevent terrorism against the United States.
29. The Importer Security Filing (ISF) rule requires importers to file ___________ pieces of
information and carriers to file ___________ pieces of information.
30. Which of the following statements is false?
8
31. The materials stolen in ___________ are usually for the employee’s own use.
32. What is the primary difference between pilferage and theft?
33. Approximately ___________ percent of all pirate attacks in recent years have involved
petroleum tankers.
34 The concept of logistics social responsibility, or corporate social responsibility issues that
relate directly to logistics, did not emerge until which decade?
9
35. The two areas in logistics systems where most energy costs occur are ___________ and
___________.
36. With respect to the design of warehouses, one suggestion for energy savings is to make sure
that dock doors are not placed on the ___________ side of a building.
37. Transportation accounts for approximately ___________ of all petroleum consumption in the
United States.
38. Which of the following is not one of the three critical factors associated with the process of
managing returned goods?
39. ___________ complexity refers to the growing number nodes and the associated changes to
the links in the logistics system.
40. ___________ complexity centers on the implications associated with the increasing number
of products that most companies continue to face in an effort to differentiate themselves with
their customers.
True-False Questions
1. The organization of logistics activities within a firm depends on a number of factors,
[LO 4.1: To explain organizational structure for logistics; Moderate; Application; AACSB
Category 3: Analytical thinking]
2. In a decentralized logistics structure, logistics activities are managed in multiple departments
[LO 4.1: To explain organizational structure for logistics; Easy; Concept; AACSB Category 3:
Analytical thinking]
3. One problem with a fragmented logistics structure is that because logistics activities are
scattered throughout the firm, they likely remain subservient to the objectives of the
[LO 4.1: To explain organizational structure for logistics; Moderate; Synthesis; AACSB
Category 3: Analytical thinking]
4. In a unified logistics structure, multiple logistics activities are combined into, and managed
[LO 4.1: To explain organizational structure for logistics; Easy; Concept; AACSB Category 3:
Analytical thinking]
5. A centralized logistics organization generally results in better customer responsiveness than a
[LO 4.1: To explain organizational structure for logistics; Moderate; Synthesis; AACSB
Category 3: Analytical thinking]
6. A decentralized logistics organization means that logistics-related decisions are made at the
[LO 4.1: To explain organizational structure for logistics; Easy; Concept; AACSB Category 3:
Analytical thinking]
[LO 4.1: To explain organizational structure for logistics; Moderate; Application; AACSB
Category 3: Analytical thinking]
[LO 4.2: Organizational design for logistics; Moderate; Application; AACSB Category 3:
Analytical thinking]
9. From a logistics perspective, a network organizational design in logistics is manifested in
[LO 4.2: Organizational design for logistics; Moderate; Synthesis; AACSB Category 3:
Analytical thinking]
[LO 4.2: Organizational design for logistics; Easy; Concept; AACSB Category 3: Analytical
thinking]
11. The postponement of product assembly and labeling until exact customer requirements are
12
[LO 4.2: Organizational design for logistics; Moderate; Application; AACSB Category 3:
Analytical thinking]
12. Productivity efforts in logistics are often directed at increasing the amount of output while
Synthesis; AACSB Category 3: Analytical thinking]
13. Union work rules are often very specific in the sense that job descriptions spell out the
AACSB Category 3: Analytical thinking]
14. Walmart has begun testing drones within its warehouses as a potential solution to enhance
AACSB Category 3: Analytical thinking]
15. The odometer is a recording instrument that produces a continuous, timed record of the truck,
AACSB Category 3: Analytical thinking]
16. Wireless communications, global positioning systems, and graphical information systems
Synthesis; AACSB Category 3: Analytical thinking]
17. Excess capacity, or unused available space, can be unproductive because it may result in the
Application; AACSB Category 3: Analytical thinking]
18. Coopetition is a concept that entails an organization making its unused resources available to
AACSB Category 3: Analytical thinking]
19. Logistics service quality relates to a firm’s ability to deliver products, materials, and services
[LO 4.4 To discuss quality issues in logistics; Easy; Concept; AACSB Category 3: Analytical
thinking]
20. ISO 14000 is a set of generic standards used to document, implement, and demonstrate
[LO 4.4 To discuss quality issues in logistics; Easy; Concept; AACSB Category 3: Analytical
thinking]
[LO 4.4 To discuss quality issues in logistics; Easy; Concept; AACSB Category 3: Analytical
thinking]
22. ISO 9000 involves organizations benchmarking themselves against organizations from
[LO 4.4 To discuss quality issues in logistics; Moderate; Concept; AACSB Category 3:
Analytical thinking]
23. The Logistics Uncertainty Index has been established to identify uncertainty sources that can
Moderate; Concept; AACSB Category 3: Analytical thinking]
24. Terrorism can be viewed as an illegal use of or threat of force or violence made by a group or
an individual against a person, a company, or somebody’s property with a goal of menacing
Moderate; Concept; AACSB Category 3: Analytical thinking]
25. From a logistical perspective, the Transportation Security Administration (TSA) and the
Department of Transportation are two of the most important government entities that were
[LO 4.5: To report on programs designed to lessen the impact of terrorism on logistics systems;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
26. The Transportation Worker Identification Credential (TWIC) uses biometric data to exclude
[LO 4.5: To report on programs designed to lessen the impact of terrorism on logistics systems;
Moderate; Application; AACSB Category 3: Analytical thinking]
27. Customs and Border Protection (CBP) is responsible for securing U.S. borders to protect the
[LO 4.5: To report on programs designed to lessen the impact of terrorism on logistics systems;
Moderate; Application; AACSB Category 3: Analytical thinking]
28. Companies that participate in the Customs Trade Partnership Against Terrorism (C-TPAT)
[LO 4.5: To report on programs designed to lessen the impact of terrorism on logistics systems;
Moderate; Application; AACSB Category 3: Analytical thinking]
29. The Importer Security Filing (ISF) rule requires carriers to file 10 pieces of information and
[LO 4.5: To report on programs designed to lessen the impact of terrorism on logistics systems;
Moderate; Concept; AACSB Category 3: Analytical thinking]
[LO 4.6: To describe ways to manage theft and pilferage; Easy; Application; AACSB Category
3: Analytical thinking]
31. One of the most effective methods of protecting goods from theft or pilferage is to keep them
[LO 4.6: To describe ways to manage theft and pilferage; Moderate; Application; AACSB
Category 3: Analytical thinking]
32. More than 50 percent of all pirate attacks in recent years have involved petroleum tankers.
[LO 4.6: To describe ways to manage theft and pilferage; Moderate; Application; AACSB
Category 3: Analytical thinking]
[LO 4.7: To review the concept of logistics social responsibility; Easy; Application; AACSB
Category 3: Analytical thinking]
34. Potential logistics social responsibility dimensions include the environment, diversity, safety,
15
[LO 4.7: To review the concept of logistics social responsibility; Moderate; Synthesis; AACSB
Category 3: Analytical thinking]
35. Warehousing and packaging are the two areas in logistics systems where the most energy
[LO 4.7: To review the concept of logistics social responsibility; Moderate; Synthesis; AACSB
Category 3: Analytical thinking]
AACSB Category 3: Analytical thinking]
37. Transportation accounts for about one-half of all petroleum consumption in the United
AACSB Category 3: Analytical thinking]
AACSB Category 3: Analytical thinking]
39. Network complexity refers to the growing number of nodes and the associated changes to the
[LO 4.8: To articulate logistics issues associated with complexity; Easy; Concept; AACSB
Category 3: Analytical thinking]
[LO 4.8: To articulate logistics issues associated with complexity; Moderate; Concept; AACSB
Category 3: Analytical thinking]
