CHAP 1:

1. What is the origin of the term "logistics"?

a) French word meaning "calculation"
b) Greek word meaning "rational" or "calculatory"
c) Roman word meaning "distribution"
d) Latin word meaning "strategy"
2. Which of the following is a key difference between
military logistics and business logistics?
a) Focus on supply chain continuity
b) Scale of operations and goals
c) Involvement of military personnel
d) Use of technology for calculations
3. Which decade saw the rise of global sourcing in
logistics?
a) 1970s
b) 1980s
c) 1990s
d) 2000s
4. What are the "5 Rights" of business logistics?
a) Right supplier, Right cost, Right service, Right place, Right
person
b) Right cost, Right service, Right time, Right person, Right
place
c) Right quantity, Right quality, Right time, Right
place, Right cost
d) Right product, Right service, Right time, Right quality,
Right cost
5. What is the primary goal of e-commerce logistics?
a) To enhance the supply chain management process
b) To optimize goods, finance, and information flows
using internet technology
c) To manage the procurement process effectively
d) To increase the number of delivery hubs
6. Which of the following is NOT a model of e-commerce?
a) Business-to-Consumer (B2C)
b) Business-to-Business (B2B)
c) Consumer-to-Government (C2G)
d) Consumer-to-Consumer (C2C)
7. What is social commerce (S-commerce)?
a) The use of social networks to facilitate e-commerce
transactions
b) The use of websites for consumer-to-consumer
transactions
c) A business-to-business transaction involving multiple
companies
d) The integration of payment systems into traditional
commerce
8. Which logistics activity is NOT considered an inbound or
outbound process?
a) Warehousing
b) Reverse logistics
c) Procurement
d) Order management
9. What is the main objective of customer-centric e-
commerce logistics?
a) Reducing warehousing costs
b) Meeting customer demands efficiently and
transparently
c) Optimizing only financial flows
d) Managing relationships with suppliers
10. What is the major cause of complaints from customers
in e-commerce logistics?
a) Damaged or lost goods
b) Late delivery
c) Incomplete orders
d) Poor customer service
11. What is the key feature of mobile e-commerce (M-
commerce)?
a) Facilitating transactions via social networks
b) Conducting commercial activities through mobile
devices
c) Allowing businesses to market industrial products
d) Conducting auctions online between consumer
12. Which of the following is NOT a type of logistics based
on the process?
a) Inbound logistics
b) Outbound logistics
c) Reverse logistics
d) Sourcing logistics
13. What is a key aspect of the customer-centric e-
commerce logistics model?
a) Reducing investment in infrastructure
b) Building loyalty and enhancing customer
relationships
c) Decreasing transparency in product lines
d) Focusing on physical store locations
14. Which of the following best defines e-logistics?
a) Logistics that focus on global sourcing and fulfillment
b) Logistics operations enhanced by internet, IT, and
communication technologies
c) Logistics involving the delivery of goods through
traditional brick-and-mortar stores
d) A process focusing solely on optimizing product
distribution centers
15. what percentage of customer complaints in e-
commerce logistics is about late delivery?
a) 12%
b) 31%
c) 44%
d) 6%
16. Which e-commerce model includes the use of an
intranet or private network for business transactions?
a) Consumer-to-Consumer (C2C)
b) Business-to-Business (B2B)
c) Social e-commerce
d) Local e-commerce
17. Which is NOT a basic principle of logistics?
a) Optimizing goods, finance, and information flows
b) Right quantity, quality, time, place, and cost
c) Focusing only on physical goods transportation
d) Managing inbound and outbound transportation and
storage
18. What is the purpose of packaging in e-commerce
logistics?
a) Increase sales and marketing efforts
b) Improve supplier relationships
c) Unload, store, and reduce product losses
d) Manage inventory forecasting

CHAP 2:
1. What does the physical distribution infrastructure
in e-commerce logistics require?
A. Small investment with minimal interaction
B. Large investment in real estate, warehouses, and
vehicles
C. Investment in hardware, software, and networking
D. No significant material responsibility
2. Which of the following is a key function of
information technology infrastructure in logistics?
A. Reducing transportation costs
B. Supporting decision-making and analysis
C. Managing physical warehouse operations
D. Minimizing real estate investment
3. The Logistics Information System (LIS) primarily
helps businesses:
A. Reduce inventory levels
B. Improve the efficiency of logistics operations
through better information
C. Increase warehouse space
D. Lower real estate costs
4. Which of the following is NOT an input of the
Logistics Information System (LIS)?
A. Customer data
B. Public information
C. Technical equipment data
D. Administrative data
5. What is the role of the database in an information
system?
A. Performing manual data processing
B. Organizing and storing information to avoid
redundancy and inconsistency
C. Reducing warehouse space requirements
D. Providing only physical storage for hardware
6. Which of the following is a key output of a Logistics
Information System (LIS)?
A. Procurement orders
B. Inventory/procurement status reports
C. New customer acquisition
D. Delivery route planning
7. What is the primary role of a warehouse in the
logistics system?
A. Increase transportation costs
B. Store, preserve, and transfer products throughout
the supply chain
C. Eliminate the need for transportation
D. Act as a point of sales
8. Which type of warehouse design layout allows for
the most efficient straight-line flow of goods?
A. U-shaped design
B. I-shaped design
C. L-shaped design
D. Circular design
9. Which of the following is a strategic decision in
designing a distribution network?
A. Reducing the number of suppliers
B. Selecting the location and number of warehouses
C. Choosing between manual and automated inventory
management
D. Hiring more logistics staff
10. Which factor is NOT a key consideration when
designing a warehouse layout?
A. Demand forecasting
B. Number of customers in the store
C. Order quantity for each type of goods
D. Volume requirements for storage
11. What is a key benefit of using an I-shaped
warehouse design?
A. Straight flow of goods from unloading to dispatch
B. Reduced need for employee management
C. Requires fewer docks
D. Allows for circular movement of goods
12. In which type of distribution model do customers
pick up goods at a specified location?
A. Stocking at the factory, delivering directly to customers
B. Stocking at the manufacturers/distributors,
customers pick up goods
C. Stocking at retailers, customers come to receive goods at
the store
D. Distributor in charge of delivery
13. Which of the following is a core function of a
Logistics Information System (LIS)?
A. Increasing warehouse space
B. Supporting operational processes like order
processing and inventory management
C. Reducing marketing expenses
D. Managing employee schedules
14. What is the primary goal of inventory
management in logistics?
A. Finding an optimal stock policy balancing cost and
service
B. Maximizing the number of stored goods
C. Reducing the number of suppliers
D. Expanding warehouse space
15. Which warehouse design is the most common due
to its streamlined traffic flow?
A. U-shaped design
B. L-shaped design
C. I-shaped design
D. Circular design
16. Which principle ensures that an LIS delivers data
that is useful and relevant?
A. Timeliness principle
B. Selective principle
C. Accuracy principle
D. Flexibility principle
CHAP 3
1. What is the primary goal of fulfillment logistics?
A. To increase inventory levels
B. To maximize transportation costs
C. To efficiently and timely deliver customer orders
D. To minimize customer demand
2. Which of the following is NOT a requirement of e-
fulfillment?
A. Right time and right place
B. Perfect customer satisfaction
C. Promptness and accuracy
D. Balancing costs and services
3. The primary goal of outbound logistics is to:
A. Increase customer demand
B. Reduce transportation costs
C. Minimize total costs while delivering the expected
level of service
D. Avoid stockouts
4. Which of the following factors influences response
time in e-fulfillment?
A. Inventory turnover
B. Warehouse size
C. Distance and transportation
D. All of the above
5. Which is a disadvantage of the Online Order
Fulfillment Logistics Model?
A. Lower inventory costs
B. Broadened product offerings
C. Reduced profit margins
D. Decreased transportation costs
6. What does shipping management focus on?
A. Coordinating suppliers with customer service
B. Ensuring timely and cost-effective delivery of
goods
C. Minimizing inventory costs
D. Increasing warehouse storage capacity
7. Which of the following is an advantage of airway
transportation?
A. High accessibility
B. Low cost
C. High speed and uncompromising delivery
D. High flexibility
8. Which mode of transportation accounts for over
90% of global trade?
A. Railway
B. Marine transportation
C. Airway
D. Motorway
9. What is a key challenge of freight management in
e-commerce?
A. Large order sizes
B. High operational complexity
C. High density of delivery locations
D. Low customer demand
10. Which transportation model uses a single contract
for the entire journey?
A. Intermodal transportation
B. Multimodal transportation
C. Pipeline transportation
D. Direct shipping
11. What is the first step in the order processing
cycle?
A. Order fulfillment
B. Inventory check
C. Product collection
D. Collect customer information
12. Which type of customer typically requires high-
volume orders and professional buying processes?
A. Individual customers
B. Institutional customers
C. End consumers
D. Small businesses
13. Which of the following is an example of flexibility
in customer service?
A. Consistency in delivery times
B. Adapting to changes in customer demands
C. Increasing product prices
D. Offering limited product variety
14. What is a key advantage of using pipelines for
transportation?
A. High operational costs
B. Limited flexibility
C. Continuous transportation without interruptions
D. Suitable for small, lightweight products
15. Which shipping method is ideal for small, quick
shipments with high accessibility?
A. Marine transportation
B. Truck freight (Motorway)
C. Airway
D. Pipeline
16. What is a key disadvantage of using waterway
transportation?
A. High shipping costs
B. Limited accessibility and slow transit times
C. High risk of product damage
D. High environmental impact
17. Which of the following best describes intermodal
transportation?
A. Separate contracts for each leg of the journey
B. One contract for the entire journey
C. No contracts involved in the shipping process
D. Using only one mode of transportation
18. What is the primary benefit of using a distribution
center in the shipping process?
A. Reduces the need for inventory management
B. Ensures goods pass through fewer stages before reaching
the customer
C. Meets high levels of customer service expectations
and supports a well-organized logistics network
D. Increases the speed of last-mile deliveries
19. What is a major challenge in e-commerce freight
logistics?
A. Large order volumes in B2C transactions
B. Lack of customer feedback
C. Wide distribution of delivery locations and difficulty
in scheduling
D. High inventory turnover rates
20. Which transportation mode is most cost-effective
for long-distance shipments of heavy and bulk goods?
A. Airway
B. Truck freight
C. Railway
D. Pipeline
CHAP 4
1. What is the primary purpose of operational
procurement?
a) To negotiate contracts with suppliers
b) To ensure the daily operation of a business
c) To reduce employee turnover
d) To increase production capacity
2. Which principle suggests that a reduction in
procurement costs can significantly increase profit
margins?
a) Return on Assets (ROA)
b) Leverage Principle
c) Diverse Supplier Principle
d) Service & Logistics Cost Principle
3. Which procurement method is applied when no
significant changes are required in the product or
supplier?
a) New Buy
b) Straight Rebuy
c) Modified Rebuy
d) Forward Buying
4. The balance interest principle in procurement aims
to establish what kind of relationship with suppliers?
a) Short-term, high-cost relationships
b) Competitive relationships
c) Long-term, sustainable relationships
d) Technology-driven relationships
5. In procurement timing strategies, which strategy is
used when prices are expected to increase in the
future?
a) Speculative Buying
b) Forward Buying
c) Purchasing by Requirements
d) Mix Buying
6. What is a key consideration in the safety stock
approach to inventory management?
a) Minimizing inventory levels to reduce costs
b) Ensuring timely delivery of all shipments
c) Mitigating the risk of stockouts due to demand
fluctuations
d) Increasing supplier competition
7. In which procurement model does the power
dynamic shift toward the customers?
a) Seller-Centric Model
b) Customer-Centric Model
c) E-commerce Platform
d) Strategic Alliance
8. What does cycle inventory represent in inventory
management?
a) Inventory in transit between locations
b) The goods held to meet daily production
requirements
c) Extra stock held to prevent stockouts
d) Inventory used for seasonal promotions
9. What is a key benefit of using the Economic Order
Quantity (EOQ) model?
a) Maximizes inventory holding
b) Allows for unpredictable demand
c) Minimizes total inventory costs
d) Eliminates the need for safety stock
10. Which inventory classification method follows the
80/20 Pareto Rule?
a) In-Transit Inventory
b) Safety Stock
c) EOQ
d) ABC Analysis
11. What is the primary function of standardized
packaging operations?
a) Increase production time
b) Reduce unnecessary operations
c) Increase transportation costs
d) Decrease employee safety
12. What is the key feature of the seller-centric
procurement model?
a) Customer empowerment
b) Customer-managed procurement systems
c) Seller-driven power dynamics
d) Strategic alliances
13. In which procurement process step is quantity
verification performed?
a) Supplier Selection Process
b) Goods Receiving Process
c) Post-Procurement Review
d) Demand Analysis
14. Which principle in procurement promotes
competition among suppliers to mitigate risks?
a) Cost and Profit Optimization
b) Diverse Supplier Principle
c) Return on Assets
d) Service & Logistics Cost Principle
15. In the post-procurement review, which is a critical
evaluation criterion for assessing procurement
outcomes?
a) Supplier diversity
b) Accurate documentation
c) Lead time reduction
d) Increased supplier costs
CHAP 5:
1. What is the primary goal of a logistics strategy in
e-commerce?
 A. Increase product variety
B. Reduce marketing costs
C. Manage the flow of goods and services from
suppliers to customers efficiently
D. Focus on customer acquisition
2. What is the main difference between a logistics
strategy and logistics operations?
A. Logistics strategy focuses on daily operations, while
logistics operations involve long-term planning
B. Logistics strategy deals with high-level planning,
and logistics operations handle day-to-day execution
C. Logistics operations are more cost-effective than logistics
strategy
D. There is no difference between logistics strategy and
logistics operations
3. Which of the following is NOT a benefit of
outsourcing logistics services?
A. Reduce capital investment and costs
B. Improve customer service quality
C. Increase company control over logistics operations
D. Increase management skills and flexibility
4. What is one of the primary risks of outsourcing
logistics services?
A. Lower flexibility in supply chain management
B. High customer satisfaction
C. Leakage of sensitive information and data
D. Reduction in management skills
5. What is the correct sequence for the partner
selection process in logistics outsourcing?
1. Develop operational framework
2. Evaluate logistics strategy and outsourcing needs
3. Evaluate outsourcing options
4. Select logistics partner
5. Implement and optimize logistics operations
A. 1, 2, 3, 4, 5
B. 2, 3, 4, 1, 5
C. 2, 4, 3, 1, 5
D. 2, 3, 1, 4, 5
6. What is the primary role of reverse logistics in e-
commerce?
A. Moving products from point of origin to the consumer
B. Enhancing customer satisfaction and
environmental sustainability
C. Reducing supply chain costs
D. Minimizing order fulfillment time
7. Which of the following is a measurement used to
control logistics operations?
A. Customer acquisition cost
B. Service quality measurement, such as perfect order
ratio
C. Marketing expenditure
D. Number of new suppliers onboarded
8. Which of the following is NOT a characteristic of
reverse logistics?
A. High recovery costs
B. Small scale and scattered operations
C. Simple ownership and responsibilities
D. Limited number of capable providers
9. What is a hybrid logistics solution?
A. A mix of digital and manual logistics management
B. Combining in-house logistics management with
outsourced logistics services
C. A logistics strategy that focuses only on B2B models
D. Using only in-house logistics operations
10. In logistics control, which of the following is
measured under labor and equipment productivity?
A. Total response time for one order
B. Volume of products in and out per employee or
device
C. Customer complaint ratio
D. Return on investment