MSC 824

Logistical Management
Third Midterm Study Questions
FS 2000

1. Answer only the three circled questions – NO substitutes or additions.

2. Sign and return this exam paper. Failure to sign and return this paper
will void your examination.
3. Print your name, student ID and page number on all answer sheets.
4. Each student will be assigned one question from question numbers 1-5
and one question from questions 6-10.

Warehousing-Transportation Exam-1
 MSC 824
Logistical Management
Third Midterm Questions
Dr. Closs
FS 2000

1. Describe the major considerations in minimizing warehousing costs.

Discuss some of the specific tactics that should be employed to
minimize the warehouse cost.

2. Compare and contrast a service area strategy vs. a class of trade

strategy in terms of warehouse design considerations.

3. What is the future impact of transportation regulation on logistics?

Your assessment should include a description of the various
dimensions of transportation regulation.

4. Describe and characterize the four possible material handling

technologies in terms of fixed cost, variable cost, and flexibility.

5. Compare and contract the major modes of transportation in terms of

cost characteristics, service capability, accessibility, and flexibility.

6. Describe the relative cost drivers for less-than-truckload (LTL) and

truckload (TL) transportation. Define a type of product (e.g., food,
electronics, chemicals, etc.). For the item you defined, rank the cost
drivers in terms of their relevant impact on the overall transportation
cost of an item.

7. Compare and contrast the role of packaging in a marketing and supply

chain environment. Identify two trends in consumer packaging being
driven by marketing. Discuss how these two trends have or will
impact logistics and supply chain requirements and operations.

Warehousing-Transportation Exam-2
8. Compare and contrast the cost and service benefits of warehousing.
Develop a specific example illustrating the cost benefits of a
warehouse. Include a specific example with appropriate cost
assumptions for inbound and outbound transportation and handling
costs. The example should compare the total cost of serving a market
with and without a warehouse.

9. Assume that you have the responsibility to select a warehouse

material handling system for a consumer goods manufacturer.
Assume that the company markets over 4,000 SKUs that are small in
size and that the product line turns over about 33 percent per year.
This implies that a typical product lasts about 3 years before it is out-
dated. They primarily ship full pallets of product to customer
distribution centers for re-distribution. Justify your selection of one of
the four technologies discussed in class.

10. Suppose you have responsibility for selecting a warehousing strategy

for Amazing.com, an e-marketer of small consumer electronics. They
market a wide range (i.e., more than 5,000 SKUs) of brand name and
private label consumer electronics directly to consumers over the
Internet. Consumers place the order using the Internet and the product
is delivered directly to their home using one of the package delivery
companies such as UPS or FedEX. The consumer can select either
regular (i.e., ground) or premium (i.e., air) delivery and is charged for
the corresponding freight expense. The average order size is slightly
more than one line. Each of the 5,000 SKUs is stocked in only one of
the company’s two distribution centers (One in New Jersey and one in
Los Angeles). Assuming that you keep the two existing warehouses,
what is the potential role of: 1) Cross-docking; 2) Consolidation; 3)
Break-bulk; 4) Processing; and 5) Mixing warehouses? Discuss how
each should (or should not) be employed by Amazing. Rationalize
your answer using economies of scale and service considerations.
(DO NOT ASSESS THE VIABILITY OF THE ABOVE BUSINESS).

Warehousing-Transportation Exam-3