Sheet 4

Revision-Theoretical

Transportation
Management
For the Fourth Year – Business Department

Contact us on :
Mr. AHMED ELHOMY: 01111729649

If you
0 | Registration – Mr. ELHOMY: need clarification
01111729649 -- For Qs on anyon any points:
point: 01008499765
01008499765 (Transportation Management -R)
Q1: Solve following transportation problem using NWC- minimum cost and Vogel method and then
answer the following questions: 1-7
To
A B C D Supply
From
1 8
2 3 5 1
2 10
7 3 4 6
3 4 1 7 2 20

Demand 6 8 9 15 38
1- According to northwest, cell A1 must contain __________.
a) 2 c) 6
b) 4 d) 15
To
A B C D Supply
From
1 -- -- 8
6 2 2 3 5 1 0
2
2 -- 7 -- 10
6 3 4 4 6 0
4
3 -- 2 20
4 1 5 7 15 0
15
6 8 9 15 38
Demand 0 0
0 6 5 0
2- According to northwest, the objective function would total__________.
a) 150 c) 117
b) 127 d) 116
Solution According to NWC the total cost for initial solution= 6×2 + 2×3 + 6×3 + 4×4 + 5×7 + 15×2 = $117
3- According to northwest, cell B3 must contain __________.
a) 2 c) 15
b) 4 d) Zero.
4- According to minimum cost Cell method, cell A1 must contain __________.
a. 6 b. 4 c. Zero d.9
To
A B C D Supply
From
1 -- -- -- 8
2 3 5 8 1
0
2 7 -- -- 10
1 3 9 4 6 0 1
3 -- 20 5
5 4 8 1 7 7 2
12 0
6 8 9 15 38
Demand 0 1 0 0 7 0
According to MCM the total cost for initial solution=
8×1 + 1×7 + 9×4 + 5×4 + 8×1 + 7×2 = $93
5- According to minimum cost to Cell method, cell D3 must contain __________.
a) 8. c) 7.
b) 9. d) Zero.
6- The total cost of transportation according to the minimum cost method is__________ than the total
cost according to the Vogel Method.
a) Higher c) the same
b) lower
Solution

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
 To
A B C D Supply P1 P2 P3 P4 P5
From
1 2 3 5 11 8 0
5 -- -- 3 2-1=1 1 1 3 X=0
5
2 10 0
1 7 -- 3 9 4 -- 6 4-3=1 2 2 3 3
1
3 20
-- 4 8 1 -- 7 12 2 0 2-1=1 2 X=0 X=0 X=0
12
6 8 9 15 0
Demand 0 38
1 0 0 3
P1 4-2=2 3-1=2 5-4=1 2-1=1
P2 2 X=0 1 1
P3 5 X=0 1 5
P4 5 X=0 1 X=0
P5 X X=0 X X
Tie: P1
Penalty Least Cost
Column A 2 2
Column B 2 1 √√
Another Tie: P2
Penalty Least Cost Quantity
Column A 2 2 6 = ‫ واألقل آخده‬D/S ‫اقارن الـ‬
Row 2 2 4
Row 3 2 2 12 √√
Another Tie: P3
Penalty Least Cost
Column A 5 2
Column D 5 1 √√
➢ According to VAM the total cost for initial solution= 5×2 + 3×1 + 1×7 + 9×4 + 8 ×1 + 12×2 = $88
7- According to the Vogel method, cell D3 is __________than Cell D3 according to the minimum cost method.
a) Higher. c) the same.
b) lower.
Q2: Use the following cost matrix for transportation to solve questions from 1-10: NWC
To
A B C Supply
From
Plant1 10 35
5 10
Plant 2 20 30 40
20
Plant 3 40
𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
5 8 12
Demand 45 50 20 115
Solution
To
A B C Supply
From
Plant1 35 -- -- 35
5 10 10
0
Plant 2 10 20 30 -- 40 0
30 20
30
Plant 3 -- 5 20 8 20 12 40 0
20
45 50 20 115
Demand 0 0
10 20 0
According to NWC the total cost for initial solution= 35×5 + 10×20 + 30×30 + 20×8 + 20×12 =$ 1,675
Testing the optimality:
Test the number of Occupied cells: R+C-1= 3+3-1 =5 = used cells So, we can test the optimality

21 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
 ➢ Search unoccupied (unfilled Cells): 1B, 1C, 2C, 3A ^-^‫بدورعلى الخاليا الفاضية وجمعها‬
Unoccupied cell Closed path Net cost change
1B 1B→ 2B→ 2A→1A = +10 -30 +20 -5 = -5
1C 1C→ 1A→ 2A→2B→ 3B→3C = +10 -5 +20 -30 +8 -12 = -9
2C 2C→ 3C→ 3B→ 2B = +20 -12 +8 -30 = -14
3A 3A→ 2A→2B→3B = +5 -20 +30 -8 = 7
1- Using the Northwest Corner Cell method. The number of units that will be assigned to cell 1A is:
a) 35 c) 45
b) 10 d) None of this.
2- Using the Northwest Corner Cell method. The number of units that will be assigned to cell 1B is:
a) 10 c) 0
b) 35 d) None of this.
3- Using the Northwest Corner Cell method. The number of units that will be assigned to cell 2A is:
a) 0 c) 20
b) 10 d) None of this
4- Using the Northwest Corner Cell method. The number of units that will be assigned to cell 3C is:
a) 20 c) 40
b) 12 d) None of these.
5- The initial feasible solution would be equal to__________.
a) $1,675 c) $775
b) $1,435 d) None of these. 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
6- In Testing the optimality of the initial feasible solution, the improvement index of cell 1B will be equal:
a) It will not be tested. It's an occupied cell. c) -9
b) -5 d) None of these.
7- In Testing the optimality of the initial feasible solution, the improvement index of cell 2B will be equal:
a) It will not be tested. It's an occupied cell. c) 7
b) -5 d) None of these.
8- In Testing the optimality of the initial feasible solution, the improvement index of cell 1C will be equal:
a) It will not be tested. It's an occupied cell. c) -9
b) -5 d) None of these.
9- In Testing the optimality of the initial feasible solution, the improvement index of cell 2C will be equal:
a) It will not be tested. It's an occupied cell. c) -14
b) -5 d) None of these.
10- After testing the optimality of the initial feasible solution, it was found that:
a) The initial feasible, Is the optimal solution.
b) The initial feasible, is not optimal, and it can be reduced by assigning units to cell 2C.
c) The initial feasible, is not optimal, and it can be reduced by assigning units to cell 1C.
d) The initial feasible, is not optimal, and it can be reduced by assigning units to cell 3A.
Q3: Consider the following transportation tableau which shows
the initial solution. Evaluate the cost of allocating units to cell DR.
A) -5
B) -2
C) 0
D) 3
E) 5

Solution:
Unoccupied cell Closed path Net cost change
DR DR→ DT→ BT → BS→AS→ AR = +0 -0 +5 -1 +2 -1 = 5

13 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
Q4:North-West:

Total Cost - NWC = 2(150) + 7(50) + 8(300) + 25(250) + 18(250) = 13,800

Answer the following:
1. Factory 1 will ship …50... units to Market 2.
2. Market 3 will receive ….0..... Units from Factory 2.
3. Market 2 will ship ...(0)... Units to Factory 3. (the market can’t ship to the factory)
4. Total transportation cost of units shipped from factory 3 …10,750…… =(25×250 +18×250)
5. Total transportation cost of units shipped to Market 2…9000……=( 50×7 + 300×8 + 250×25)
6. Total transportation cost of units shipped to Market 3……4500……… (18×250)
7. Total transportation cost ……13,800………
Q5:North-West- unbalanced: 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4

Total Cost- NWC = 6(450) + 8(50) + 9(300) + 7(80) + 10(340) + 0(50) ='9760,
Answer the following:
1. Units shipped from warehouse 2 to market 3 is .....Zero...
2. Market 3 will receive .....340............ Units. )‫ النه مش حقيقي اصال‬Dummy ‫(الماركت مش هيستقبل من ال‬
3. How many units are shipped from warehouse W1 to market M2? (50 units(.
4. What is the total number of units shipped from warehouse W3? (420 units.
5. Which market received the smallest number of units? (Market M2 (received 430 units).
6. Which warehouse shipped the largest number of units? Warehouse W1 (shipped 500 units).
7. What is the total shipping cost from warehouse W3 to market M3? (10×340=3400)
8. If 20 additional units are added to the demand of market M1, how will this affect the table?
Answer: The table would need adjustments to redistribute the shipments accordingly
Q6:Minimum Cost:

𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4

Total Cost= 150×2 + 50×7 + 50×8 + 250×5 + 500×25 = $ 14,800

Answer the following:
1. Factory 1 will ship ......50...... units to Market 2.
2. Market 3 will receive ....250 ...... Units from Factory 2.
3. Market 2 will ship...0 ... Units to Factory 3. (the market can’t ship to the factory
4. Total transportation cost of units shipped from factory 3 ....12,500......= (500×25)
5. Total transportation cost of units shipped to Market 2.... 13,250.... =( 50×7 + 50×8 + 500×25)
6. Total transportation cost of units shipped to Market 3 ...1,250.... =(5×250)
7. Total transportation cost……14,800…….

41 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
Q7:Vogel Method:
To
W X Y Z Supply
From
Source 1 15 23 16 22 25,000

Source 2 25 14 4 11 13,000

Source 3 12 19 7 17 23,500
Demand 17,500 23,000 9,500 11,500 61,500
Solution
To
W X Y Z Supply P1 P2 P3 P4 P5
From
Source 1 17,500 15 7,500 23 16 22 25,000
7,500 0 1 7 1 1 1
Source 2 25 14 9,500 4 3,500
13,000
11 7 3 3 X=0 X=0
3,500 0
Source 3 12 15,500 19 8,000
23,500 0
7 17 5 5 2 2 X
15,500
Demand 17,500 23,000 9,500 11,500 61,500
0 7,500 0 0 8,000 0

P1 3 5 3 6
P2 3 5 X=0 6
P3 X=0 5 X=0 6
P4 X=0 4 X=0 5
P5 X=0 4 X=0 X=0
The total initial cost for VAM =
= 17,500×15 + 7,500×23 + 9,500×4 + 3,500×11+ 15,500×19+ 8,000×17= $942,000
Answer the following:
1- The number of units that should be shipped from source 3 to Z is:
a. 15,500. d. 6,000.
b. 8,000. e. None of the above.
c. 23,500.
2- Demand Y will receive units from source 2:
a. 13,000 d. 1,500
b. 11,500 e.None of the above
c. 9,500
3- How many units are shipped from Source 1 to X: 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
a. 7,500 c. 25,000
b. 23,000 d. 9,500
4- What is the total number of units supplied by Source 2?
a. 11,500 c. 23,500
b. 13,000 d. 9,500
5- Which source supplies the largest number of units?
a. Source 1 c. Source 3
b. Source 2 d. None of the above
6- How many units are shipped from Source 3 to X?
a. 15,500 c. 7,500
b. 8,000 d. 9,500
7- Which destination (W, X, Y, Z) receives the smallest number of units?
a. W c. Y
b. X d. Z

52 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
8- What is the total demand for destination Z?
a. 11,500 c. 23,000
b. 9,500 d. 17,500
9- What is the penalty cost for destination X during the first iteration of Vogel's method?
a. 4 c. 9
b. 5 d. 7
10- Which destination (W, X, Y, Z) will be selected first for allocation in Vogel's method?
a. W c. Y
b. X d. Z
11- After the first allocation using Vogel's method, how many units remain unallocated for Source 1?
a. 17,500 c. 25,000
b. 7,500 d. 10,000
12- What is the penalty cost for Source 2 in the second iteration?
a. 3 c. 7
b. 11 d. 4
13- Using Vogel's method, how many units will be allocated to destination Y from Source 3?
a. 15,500 c. 7,000
b. 9,500 d. None of the above
14- What is the total transportation cost after applying Vogel's method?
a. 120,000 c. 175,000
b. 150,000 d. None of the above
Q8:Stepping-stone:Which statement regarding this transportation table is best?

𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
A. The solution is degenerate.
B. This solution can be improved by shipping from C to X.
C. This solution would be improved by shipping from B to W.
D. This solution was developed using the northwest corner rule.
Unoccupied cell Closed path Net cost change
BW BW→AW→AX→BX = +5 -3 +5 -4 = 3
CX CX→AX→AW→CW =+8 -5 +3 -10 = -4
Q9:In the following transportation matrix,What is the reduced cost if we decide to allocate to cell 2C?

Unoccupied cell Net cost change

A) -2 C) 0 2C +4-10+20-10+6-12= -2
B) -1 D) +1
2-How units would be allocated to cell 2C?
A) 10 -ve ‫ هتبص على الخاليا اللى فيها‬:‫هقولك تجيبها ازاى بمجرد النظر‬
B) 14 -10 → 20 units -10 → 14 units
C) 6 -12→ 30 units
D) 0 ^-^‫وتاخد األقل فيهم‬

16 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
‫‪Q10: on Vogel & Stepping-stone:‬‬
‫‪To‬‬
‫‪D1‬‬ ‫‪D2‬‬ ‫‪D3‬‬ ‫‪Supply‬‬
‫‪From‬‬
‫‪S1‬‬ ‫‪500‬‬
‫‪6‬‬ ‫‪8‬‬ ‫‪8‬‬
‫‪S2‬‬ ‫‪300‬‬
‫‪7‬‬ ‫‪9‬‬ ‫‪5‬‬
‫‪S3‬‬ ‫‪520‬‬ ‫‪1320‬‬
‫‪11‬‬ ‫‪7‬‬ ‫‪10‬‬

‫‪Demand‬‬ ‫‪450‬‬ ‫‪430‬‬ ‫‪390‬‬

‫➢‬
‫‪1270‬‬ ‫‪Supply > Demand → Add Dummy Column.‬‬
‫➢‬
‫‪Solution‬‬
‫‪To‬‬
‫‪D1‬‬ ‫‪D2‬‬ ‫‪D3‬‬ ‫‪Dum‬‬ ‫‪Supply‬‬ ‫‪P1‬‬ ‫‪P2‬‬ ‫‪P3‬‬ ‫‪P4‬‬ ‫‪P5‬‬
‫‪From‬‬
‫‪S1‬‬ ‫‪500 0‬‬
‫‪450 6‬‬ ‫‪--‬‬ ‫‪8‬‬ ‫‪50‬‬ ‫‪8‬‬ ‫‪--‬‬ ‫‪0‬‬ ‫‪6-0=6‬‬ ‫‪2‬‬ ‫‪2‬‬ ‫‪0‬‬ ‫‪X‬‬
‫‪50‬‬
‫‪S2‬‬ ‫‪300‬‬
‫‪-- 7‬‬ ‫‪--‬‬ ‫‪9‬‬ ‫‪300 5‬‬ ‫‪--‬‬ ‫‪0‬‬ ‫‪5-0=5‬‬ ‫‪2‬‬ ‫‪X=0‬‬ ‫‪X=0‬‬ ‫‪X=0‬‬
‫‪0‬‬
‫‪S3‬‬ ‫‪520 40‬‬
‫‪-- 11‬‬ ‫‪430 7‬‬ ‫‪40‬‬ ‫‪10 50‬‬ ‫‪0‬‬ ‫‪7-0=7‬‬ ‫‪3‬‬ ‫‪3‬‬ ‫‪3‬‬ ‫‪X‬‬
‫‪470 0‬‬
‫‪Demand‬‬ ‫‪450‬‬ ‫‪430‬‬ ‫‪390 40‬‬ ‫‪50‬‬ ‫‪1320‬‬
‫‪0‬‬ ‫‪0‬‬ ‫‪90 0‬‬ ‫‪0‬‬
‫‪P1‬‬ ‫‪7-6=1‬‬ ‫‪8-7=1‬‬ ‫‪8-5=3‬‬ ‫‪0-0=0‬‬
‫‪P2‬‬ ‫‪1‬‬ ‫‪1‬‬ ‫‪3‬‬ ‫‪X=0‬‬
‫‪P3‬‬ ‫‪5‬‬ ‫‪1‬‬ ‫‪2‬‬ ‫‪X=0‬‬
‫‪P4‬‬ ‫‪X=0‬‬ ‫‪1‬‬ ‫‪2‬‬ ‫‪X=0‬‬
‫‪P5‬‬ ‫‪X=0‬‬ ‫‪X=0‬‬ ‫‪2‬‬ ‫‪X=0‬‬
‫➢‬

‫‪Tie: P2‬‬ ‫‪Penalty‬‬ ‫‪Least Cost‬‬

‫‪Column D3‬‬ ‫‪3‬‬ ‫‪5‬‬ ‫√√‬ ‫√√‬
‫‪Row S3‬‬ ‫‪3‬‬ ‫‪7‬‬
‫‪to VAM the total cost for initial solution= 450×6 + 50×8 + 300×5 + 430×7 + 40×10 + 50×0= $8,010‬‬
‫‪To‬‬
‫‪D1‬‬ ‫‪D2‬‬ ‫‪D3‬‬ ‫‪D4‬‬ ‫‪Supply‬‬
‫‪From‬‬
‫‪S1‬‬ ‫‪0‬‬ ‫‪500‬‬
‫‪450 6‬‬ ‫‪8‬‬ ‫‪50 8‬‬
‫‪S2‬‬ ‫‪0‬‬ ‫‪300‬‬
‫‪7‬‬ ‫‪9‬‬ ‫‪300‬‬ ‫‪5‬‬
‫‪S3‬‬ ‫‪11‬‬ ‫‪520‬‬
‫‪430 7‬‬ ‫‪40‬‬ ‫‪10‬‬ ‫‪50‬‬ ‫‪0‬‬
‫‪1320‬‬
‫‪Demand‬‬ ‫‪450‬‬ ‫‪430‬‬ ‫‪390‬‬ ‫‪50‬‬
‫➢‬ ‫‪First Test the number of Occupied cells: R+C-1= 3+4-1 =6 = used cells‬‬
‫‪So, we can test the optimality‬‬
‫‪Search unoccupied (unfilled Cells): S1D2, S1D4, S2D1, S2D2, S2D4, S3D1‬‬
‫بدورعلى الخاليا الفاضية وجمعها^‪^-‬‬
‫تخل بالك منها‪:‬‬‫ي‬ ‫علشان ترسم ال ـ ‪ LOOP‬صح يف شوية قواعد الزم‬
‫امش األول من خلية فاضية والزم أروح لخلية مليانة ومتوزع فيها‪.‬‬ ‫ي‬ ‫يعن‬
‫ي‬ ‫مليان‪،‬‬ ‫والباف يكون‬
‫ًي‬ ‫‪ -‬الزم ابتدي من خلية فاضية‬
‫ً‬
‫‪ -‬المسار الزم يتحرك أفقيا وعموديا فقط‪ ،‬وما ينفعش يعدي عل نفس النقطة أكت من مرة وممنوع تتحرك بشكل مائل‪.‬‬
‫الل رسمته‪ ،‬وحط إشارات بالتبادل (‪.)- ، + ، - ، +‬‬
‫امش يف المسار ي‬
‫ي‬ ‫الل اختتها وحط إشارة "‪ "+‬فيها‪ ،‬و بعدين‬ ‫‪ -‬ابدأ من الخلية ي‬
‫ثان‪.‬‬
‫ي‬ ‫ارجعله‬ ‫بدأت‬ ‫ما‬ ‫مكان‬ ‫من‬ ‫يعن‬
‫ي‬ ‫يقفل‬ ‫بتاع‬
‫ي‬ ‫‪ -‬الزم الـ ‪Path‬‬
‫يعن لو عديت عل ‪ 4‬خاليا الزم يكون منهم اثني ‪ ve+‬و اثني – ‪.ve/‬‬ ‫ي‬ ‫‪Even‬‬ ‫يكون‬ ‫الزم‬ ‫‪Path‬‬ ‫ال‬ ‫ف‬
‫ي‬ ‫عليها‬ ‫هعدي‬ ‫الل‬‫ي‬ ‫‪Cells‬‬ ‫‪ -‬عدد ال‬
‫‪-‬‬

‫‪70 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:‬‬ ‫)‪01008499765 (Transportation Management -R‬‬
 Unoccupied cell Closed path Net cost change
S1 D2 S1D2→ S1D3→ S3D3→ S3D2 = +8 -8 +10 -7 = 3
S1 D4 S1D4→ S3D4→ S3D3→ S1D3 = +0 -0 +10 -8 = 2
S2 D1 S2D1→ S2D3→ S1D3→ S1D1 = +7 -5 +8 -6 = 4
S2 D2 S2D2→ S3D2→ S3D3 → S2D3 = +9 -7 +10 -5 = 7
S2 D4 S2D4→ S3D4→ S3D3→ S2D3 = +0 -0 +10 -5 = 5
S3 D1 S3D1→ S1D1→ S1D3→ S3D3 = +11 -6 +8 -10 = 3
optimal Solution‫) فمفيش توزيع ينفع يحصل ثاني ويبقي انا وصلت للــ‬+ve( ‫كلهم‬
Answer the following questions:
1. What is the total supply available from all sources (S1, S2, S3)?
A) 1320 C) 1325
B) 450 D) 1270
2. In the given table, what is the total demand from all destinations (D1, D2, D3)?
A) 1270 C) 1200
B) 1320 D) 1340
3. To obtain a balance between total supply and total demand in This in a transportation problem…..
A)Add Dummy Row by 50 units with 0 Costs. C) Add Dummy Column with 120 units with $1 Cost.
B)Add Dummy Column by 50 units with $ 0 Costs. D) Cancel Units Fron any Source
4. What is the demand quantity for D3?
A) 390 C) 430
B) 450 D) 50
5. What is the penalty cost for destination 2 during the first iteration of Vogel's method?
a. 4 c. 9
b. 1 d. 7
6. What is the penalty cost for Source 3 during the Fourth iteration of Vogel's method?
a. 4 c. 9
b. 3 d. 7
7. What is the supply quantity from source S1 to point D1?
A) 450 C) 430
B) 50 D) 300
8. Which source provides the highest total supply?
A) S1 C) S3
𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
B) S2 D) S4
9. Using Vogel's method, how many units will be allocated to destination 2 from Source 3?
a. 430 c. 40
b. 450 d. None of the above
10. After the first allocation using Vogel's method, how many units remain unallocated for Source 1?
a. 470 c. 500
b. 430 d. 450
11. What is the Optimal Solution Cost to this transportation problem?
A)$8,010 C)7,500
B)8,200 D)8100
Q11: on Stepping-stone: test The optimality of The Following Table
To
A B C Supply
From
1 150
6 25 8 125 10

2 175
7 11 175 11
3 4 5 275
200 75 12
Demand 200 100 300 600
➢ The total cost for initial solution= 25×8+ 125×10 + 175×11 + 200×4 + 75×5= $ 4,550
81 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
 First Test the number of Occupied cells: R+C-1= 3+3-1 =5= used cells So, we can test the optimality
➢ Search unoccupied (unfilled Cells): 1A, 2A, 2B, 3C ^-^‫بدورعلى الخاليا الفاضية وجمعها‬
Unoccupied cell Closed path Net cost change
1A 1A→ 1B→ 3B→3A = +6 -8 +5 -4= -1 √√
2A 2A→ 3A→ 3B→ 1B→ 1C→ 2C = +7 -4 +5 -8 +10 -11 = -1
2B 2B→ 2C→ 1C→ 1B = +11 -11 +10 -8= +2
3C 3C→ 3B→ 1B→1C = +12 -5 +8 -10 =5
‫ بس‬$ 1 ‫ مش بـ‬$4 ‫ بـ‬T.C ‫ النها هتقلل الــ‬-4 ‫ هختار أكيد‬-4 ‫و‬-1 ‫ فهاخد أي واحدة لكن مثال لو عندى‬-1 ‫هنا انا كان عندى األثنين‬
To A B
^-^ ‫هنعمل ايه بقا‬
From
-200 ‫ و‬-25 ‫ يعني هنا عندنا‬،)-Ve( ‫ مين الــ‬Loop ‫هنشوف جوه الــ‬
1 25 25
(+) 6 (-) 0
8 -: ‫ ونعمل ايه بقا ركز معايا‬25 ‫ناخد اآلقل اللى هى‬
2 25 ‫) هننقص منه‬-( ‫ واللى قدامه‬25 ‫( هنضيفله الــ‬+) ‫اللي عنده اشارة‬
7 11
.‫وده هيبقي التوزيع بتاعنا الجديد‬
3 200
(-) 175 4 (+)10075 5

To
A B C Supply
From
1 150
25 6 8 125 10
2 175
7 11 175 11

3 4 5 275
175 100 12
600
Demand 200 100 300
➢ The total cost = 25×6+ 125×10 + 175×11 + 175×4 + 100×5= $ 4,525
➢ Test again to make sure that $4,525 is the optimal solution:
Unoccupied cell Closed path Net cost change
1B 1B→ 3B→ 3A→1A = +8 -5 +4 -6 = 1
2A 2A→ 1A→ 1C→ 2C = +7 -6 +10 -11 =0
2B 2B→ 3B→ 3A→1A→1C→2C = +11 -5 +4 -6 +10 -11 = 3
3C 3C→ 1C→ 1A→ 3A +12 -10 +6 -4 = 4
optimal Solution‫) فمفيش توزيع ينفع يحصل ثاني ويبقي انا وصلت للــ‬+ve( ‫كلهم‬
Q12:Consider the following transportation tableau with the initial solution provided. Use the stepping
stone method to identify a better allocation.

➢ The Total Initial Cost = 80×1 + 20×2 + 100×1+ 10×5 + 50×0= $ 270
Solution

91 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
First Test the number of Occupied cells: R+C-1= 3+3-1 =5= used cells So, we can test the optimality
Unoccupied cell Net cost change
AT = +3 -5+1 -2 = -3
BR = +4 -1 +2 -1 = 4
DR = +0 -1 +2 -1 +5 -0 = 5
DS =+0-1+5-0=4

(-) (+) 10 10 ‫ ناخد اآلقل اللى هى‬-20 ‫ و‬-10 ‫ يعني هنا عندنا‬،)-Ve( ‫ مين الــ‬Loop ‫هنشوف جوه الــ‬
10 ‫ وده هيبقي التوزيع بتاعنا‬25 ‫) هننقص منه‬-( ‫ واللى قدامه‬10 ‫( هنضيفله الــ‬+) ‫اللي عنده اشارة‬
(+) (-) .‫الجديد‬
110 0

➢ The Total Cost after Re-allocation = 80×1 + 10×2 +10×3 +110×1+ 50×0= $ 240
Example 13 (NWC): D ≠S𝔈𝓜𝓸 𝟚𝟘𝟚𝟜
To
M1 M2 M3 Supply
From
F1 500
6 8 8
F2 300 1220
7 9 5
F3 11 7 10 420

Demand 450 430 390

Solution
1270 Demand > Supply → Add Dummy Row.
To
M1 M2 M3 Supply
From
F1 -- 500
450 6 50 8 8 0
50
F2 -- -- 300
7 300 9 5
0
F3 -- 11 7 420
80 340 10 0
340
Dummy -- 0 -- 0 50
0 50
0
Demand 450 430 80 390 0
0 1270
0 380 50
➢ the total initial cost for NWC =450×6 + 50×8 + 300×9 + 80×7+ 340×10 + 50×0 = $9,760
1- If supply is not equal to the Demand, then-------.
a) the problem cannot be solved.
b) northwest massive is not applicable.
c) adding dummy supply word would affect the total cost.
d) adding dummy supply or demand would help to allocate.
2 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:
10 01008499765 (Transportation Management -R)
2- If supply is greater than demand, then-------.
a) Adding a dummy supply (row ) b) adding dummy demand (column)
3- total transportation cost is calculated as-------.
a) 7,960 c) 9,760
b) 6,790 d) 9670
4- units shipped from warehouse 2 to market 3
a) 300 c) 80
b) 340 d) zero
5- market three will receive -----units
a) 390 c) 50
b) 340 d) Zero
Example 14 (NWC): D ≠S
To
A B C Supply
From
1 150
4 6 10
2 200
4 11 12
550
3 5 8 8 200

Demand 150 200 100

Solution 450 Supply > Demand → Add Dummy Column.

To
A B C Dummy Supply
From
1 -- -- -- 150
150 4 6 10 0
0
2 -- -- -- 200
4 200 11 12 0
0
3 -- -- 8 200 0
5 100 8 100 0
100
150 200 100 100
Demand 550
0 0 0 0
According to NWC the total cost for initial solution=150×4 +200×11 +100×8 +100×0 =$ 3,600
Example 15(NWC): D ≠S Calculate The initial Cost
To
W R Supply
From
A 200
2 3
B 200
5 3
𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
C 5 8 200

Demand 300 300 600

Solution
To
W R Supply
From
A -- 200
200 2 3
0
B 200 0 the total initial cost for NWC
100 5 100 3
100 =200×2 +100×5 +100×3 +200×8
C -- 5 8 200 =$ 2,800
200
0
Demand 300 0 300
0 600
100 200

3 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

11 01008499765 (Transportation Management -R)
 EX:16: Generate Your Transportation Tableau and Distribute initially by NWC and MCM
Location Capacity (tons)
A. Cabin Greek 90
B. Surry 50
C. Old Fort 80
D. McCoy 60
Total Supply 280 tons
Plant Demand 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
1. Richmond 120
2. Winston- Salem 100
3. Durham 110
Total Demand 330 tons

To
From 1 2 3
A $7 $10 $5
B 12 9 4
C 7 3 11
D 9 5 7
Solution
The Transportation Tableau:
To
1 2 3 Supply
From
A 10 5 90
7
B 50
12 9 4 280
C 7 3 11 80

D 60
9 5 7

Demand 120 100 110

330 Demand > Supply → Add Dummy Row.

1- The Northwest corner Method:
To
1 2 3 Supply
From
A -- 10 -- 90
90 7 5
0
B 20 -- 50
30 12 9 4 0
20
C 7 3 80 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
-- 80 -- 11
0
D 5 60
-- 9 -- 60 7
0
Dummy 0 50
-- -- 0 50 0
0
Demand 120 0 100 0 110 330
0
30 80 50
According to NWC the total cost for initial solution=
90×7 + 30×12 + 20×9 + 80×3 + 60×7 + 50×0 = $1,830.

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

12 01008499765 (Transportation Management -R)
 2- The Minimum Cell Cost Method:
To
1 2 3 Supply
From
A -- 90
30 7 10 60 5 0
30
B 50
-- 12 -- 9 50 4
0
C 7 3 80
-- 80 -- 11
0
D 60
40 9 20 5 -- 7
40 0
Dummy 50
50 0 -- 0 -- 0
0
Demand 120 40 100 110 330
0 0
70 0 20 60
another Tie:
Cell Cost Quantity
Tie
A3: 5 60 = ‫ واألقل آخده‬D/S ‫اقارن الـ‬
√√
D2: 5 20
Must Choose the cell with Largest Quantity which is 60.
the total initial cost for MCM = 30×7 + 60×5 + 50×4 + 80×3 + 40×9 + 20×5 + 50×0 = $1,410.
Extra Questions:
1. In case there is unbalance between Demand and supply, the best action to take when solving the transportation problem is
to__________
a) Highlight the biggest value between supply and demand and allocate according to it.
b) Create dummy column or domino with the coast equal to the lowest cost of the matrix.
c) Create a dummy column or row with a cost equal to zero and allocate accordingly.
d) Create a dummy column or row with a cost equal to zero and ignore their existence.
2. When allocating using Vogel method, if there is a tie, __________
a) Choose the send with the highest cost.
b) choose the cell with the least cost.
3. when the tie is in the least cost, __________
a) Choose the cell with the least units.
b) Choose the cell with the largest units.
4. When testing table occupation in is optimality, __________ 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
a) Number of rows must be equal to number of columns.
b) Number of rows plus number of columns must be equal to 5.
c) Numbers of rows plus numbers of columns minus one equal to 5.
d) Numbers of rows plus numbers of columns minus one must be equal to the number of occupied cells.
5. Consider the following transportation tableau which shows the initial solution. Evaluate the cost of allocating units to cell CR.

A)-12.
B) -9.
C) -6.
D) -2.
E) +3.

6. A transportation table contains an optimal solution when all the empty cell evaluations are
A) positive or 0 . C) positive .
B) negative or 0. D) negative.
7. A transportation table that has a cell evaluation of 0 means that
A) the table is optimal C) supply and demand are equal
B) an equivalent alternative solution exists D) the solution is not optimal.

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

13 01008499765 (Transportation Management -R)
8. The solution presented in the following table is
A. infeasible.
B. degenerate.
C. unbounded.
D. Optimal.
E. none of the above.

9. The solution shown was obtained by Vogel's

approximation. The difference between the
objective function for this solution and that for
the optimal is
A. 40
B. 60
C. 80
D. 100
E. none of the above

10. The initial solution of a transportation problem can be obtained by applying any known method. However, the only condition
is that
A. the solution be optimal C. the solution not be degenerate
B. the rim conditions are satisfied D. all the above
11. An initial transportation solution appears in the table.

𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
Can this solution be improved if it costs $5 per unit to ship from A to C; $7 per unit to ship
from A to D; $8 to ship from B to C; and $9 to ship from B to D?
A. Yes, this solution can be improved by $50.
B. Yes, this solution can be improved by $100.
C. No, this solution is optimal.
D. Yes, the initial solution can be improved by $10.
12. When the total supply is not equal to total demand in a transportation problem then it is called
(a) Balanced (e) Degenerate
(b) Unbalanced (d) None of these
13. With the transportation technique, the initial solution can be generated in any fashion one chooses. The only restriction is that
A. the edge constraints for supply and demand are satisfied.
B. the solution is not degenerate.
C. the solution must be optimal.
D. one must use the northwest-corner method.
14. The purpose of a dummy source or dummy destination in a transportation problem is to
A. prevent the solution from becoming degenerate.
B. obtain a balance between total supply and total demand.
C. make certain that the total cost does not exceed some specified figure.
D. provide a means of representing a dummy problem.
15. Which of the following is NOT needed to use the transportation model?
A. the cost of shipping one unit from each origin to each destination
B. the destination points and the demand per period at each
C. the origin points and the capacity or supply per period at each
D. degeneracy
16. In a transportation problem, we must make the number of __________ and__________ equal.
A. destinations; sources D. positive cost coefficients; negative cost coefficients
B. units supplied; units demanded E. warehouses; suppliers
C. columns; rows
1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:
14 01008499765 (Transportation Management -R)
17. _________ or __________ are used to "balance" an assignment or transportation problem.
A. Destinations; sources D. Large cost coefficients; small cost coefficients
B. Units supplied; units demanded E. Artificial cells; degenerate cells
C. Dummy rows; dummy columns
18. The North-West Corner Method is used to:
a) Minimize transportation costs c) Test for optimality
b) Provide an initial feasible solution d) None of the above
19. Which cell is chosen first in the North-West Corner Method?
a) Cell with the highest cost c) Top-left corner of the cost matrix
b) Cell with the lowest cost d) Bottom-right corner of the cost matrix
20. What is the main limitation of the North-West Corner Method?
a) It always provides the optimal solution c) It is computationally expensive
b) It doesn’t account for costs d) It cannot handle unbalanced problem
21. The Minimum Cost Method focuses on:
a) Assigning maximum supply to any cell c) Assigning supply to the cell with the least cost
b) Allocating demand based on the highest cost cell d) None of the above
22. In the Minimum Cost Method, what happens after assigning supply to the least cost cell?
a) The row or column is deleted c) The supply and demand are updated
b) The cell cost is increased d) None of the above
23. What is the main advantage of the Minimum Cost Method over the North-West Corner Method?
a) Easier to compute c) Guarantees optimality
b) Results in lower transportation costs d) Requires fewer iterations
24. What does Vogel's Approximation Method aim to minimize?
a) Total transportation time c) Number of iterations
b) Total transportation cost d) Total supply
25. In VAM, how is the penalty cost calculated?
a) Difference between the two lowest costs in a row/column
b) Difference between the highest and lowest costs in a row/column
c) Average of all costs in a row/column
d) Sum of all costs in a row/column
26. What happens after the penalties are calculated in VAM?
a) The highest penalty is chosen, and allocation is made in that row or column 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
b) The row with the highest total supply is chosen
c) The column with the lowest cost is chosen
d) None of the above
27. The Stepping Stone Method is used to:
a) Calculate initial feasible solutions c) Allocate supply to the least cost cell
b) Check if the current solution is optimal d) Calculate penalties for VAM
28. In the Stepping Stone Method, a closed loop is formed to:
a) Test for optimality by calculating opportunity costs
b) Allocate supply to the highest cost cell
c) Update supply and demand
d) Eliminate unbalanced conditions
Answer: a
29. If all opportunity costs in the Stepping Stone Method are non-negative, the solution is:
a) Infeasible
b) Optimal
c) Degenerate
d) None of the above
Answer: b
30. Which of the following is NOT a step in the Stepping Stone Method?
a) Calculate opportunity cost
b) Form a closed loop
c) Select the highest opportunity cost
d) Calculate penalties for each cell
Answer: d

0 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

15 01008499765 (Transportation Management -R)
 Chapter 1: Supply chain Management:
Q1: What is Supply Chain Management (SCM)? 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
• is the active management of supply chain activities to maximize customer value and achieve a sustainable
competitive advantage.
• It represents a conscious effort by the supply chain firms to develop and run supply chains in the most
effective & efficient ways possible.
• Supply chain activities cover everything from product development, sourcing, production, and logistics, as
well as the information systems needed to coordinate these activities.
• SCM is the management of a network of all business processes and activities involving procurement of raw
materials, manufacturing, and distribution management of Finished Goods.
• SCM is also called the art of management of providing the Right Product, At the Right Time, Right Place
and at the Right Cost to the Customer.

The concept of Supply Chain Management (SCM) is based on two core ideas:
1) every product that reaches an end user represents the cumulative effort of multiple organizations. These
organizations are referred to collectively as the supply chain.
2) supply chains have existed for a long time, most organizations have only paid attention to what was
happening within their “four walls.” Few businesses understood, much less managed, the entire chain of
activities that ultimately delivered products to the final customer. The result was disjointed and often
ineffective supply chains.
The organizations that make up the supply chain are “linked” together through physical flows and
information flows.
• Physical Flows:
Physical flows involve the transformation, movement, and storage of goods and materials. They are the
most visible piece of the supply chain. But just as important are information flows.
• Information Flows:
Information flows allow the various supply chain partners to coordinate their long-term plans, and to
control the day-to-day flow of goods and materials up and down the supply chain.
Q2: What is the meaning of Supply chain strategy?
• Supply chain strategy is an iterative process that evaluates the compromise between costs and benefits
of operational components; it also defines the combination of activities and functions within the value
chain.
• Business strategy involves leveraging the core competencies of the organization to achieve a defined high-
level goal or objective. It also includes the analytic and decision-making process surrounding what to offer
(e.g., products and services), when to offer (timing, business cycles, etc .), and where to offer (e.g., markets
and segments) as a competitive plan.
‫ كما تتضمن أيضًا عملية التحليل واتخاذ القرار المحيطة بما يجب تقديمه‬.‫تنطوي على االستفادة من الكفاءات األساسية للمنظمة لتحقيق هدف أو هدف محدد رفيع المستوى‬
‫ األسواق والقطاعات) كخطة‬،‫ ومكان العرض (على سبيل المثال‬،)‫ وما إلى ذلك‬،‫ ودورات األعمال‬،‫ ومتى يتم العرض (التوقيت‬،)‫ المنتجات والخدمات‬،‫(على سبيل المثال‬
.‫تنافسية‬
Q3: What are the objectives of supply chain management?
• Supply Chain Management becomes a tool to help accomplish. corporate strategic objectives:
- Reducing working capital.
- Taking assets off the balance sheet.
- Accelerating cash-to- cash cycles.
- Increasing inventory turns and do on.

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

16 01008499765 (Transportation Management -3)
 Q4: What are supply-chain Principles, methodology and solutions?
The seven principles bring a host of competitive advantages by Andersen Consulting are as follows:
1. Segment customers based on service needs.‫ تقسيم العمالء بنا ًء على احتياجات الخدمة‬.
• Companies traditionally have grouped customers by industry, product, or trade channel and then
provided the same level of service to everyone within a segment.
• Supply-Chain management, by contrast, groups customers by distinct service needs and then tailors’
services to those particular segments.
2. Customize the Supply Chain Management network. ‫تخصيص شبكة إدارة سلسلة التوريد‬.
• In designing their Supply Chain Management network, companies need to focus intensely on the service
requirements and profitability of the customer segments identified.
3. Listen to signals of market demand and plan accordingly. ‫ االستماع إلى إشارات الطلب في السوق والتخطيط بنا ًء عليها‬.
• sales and operations planning must span the entire chain to detect early warning signals of changing
demand in ordering patterns, customer promotions, and so forth.
• This demand - intensive approach leads to more consistent forecasts and optimal resource allocation.
4. Differentiate product closer to the customer.‫ تمييز المنتجات بالقرب من العميل‬.
• Companies can no longer rely on stockpiling inventory to address forecasting errors. Instead, they should
delay product differentiation until closer to actual consumer demand.
5. Strategically manage the sources of supply.‫ إدارة مصادر التوريد بشكل استراتيجي‬.
• By working closely with their key suppliers to reduce the overall costs of owning materials and services,
supply-chain management leaders enhance margins both for themselves and their suppliers.
• Beating multiple suppliers over the head for the lowest price is out, Andersen advises. “Gain sharing is in.
6. develop a supply chain wide Technology Strategy ‫تطوير استراتيجية تقنية شاملة لسلسلة التوريد‬
• As one of the cornerstones of successful supply chain Management, information technology must
support multiple levels of decision making.
• It also should afford a clear view of the flow of products, services, and information.
7. Adopt channel – spanning performance measures.‫اعتماد مقاييس أداء شاملة تمتد عبر القنوات‬
• Effective supply-chain management extends beyond internal monitoring, adopting service and financial
metrics across the entire chain, such as true account profitability. Successful systems prove that
satisfying customers drives growth.
Q5: Explain How supply chain management can have a direct effect on corporate value?
Expected Results / Benefits
Thompson and his colleagues have identified five areas in which supply chain management can have a
direct effect on corporate value. They include:
:‫ وتشمل‬،‫" وزمالؤه خمس مجاالت يمكن أن تؤثر فيها إدارة سلسلة التوريد بشكل مباشر على قيمة الشركة‬Thompson" ‫حدد‬

1. Profitable growth.‫ النمو المربح‬.

• by allowing assembly of "perfect orders," supporting after - sales service and getting involved in new product
development.‫ ودعم خدمة ما بعد البيع والمشاركة في تطوير المنتجات الجديدة‬،'‫ من خالل السماح بتجميع 'الطلبات المثالية‬.
• inefficiencies in the supply chain can waste up to 25 percent of a company's operating costs. ‫يمكن أن يؤدي عدم‬
‫ بالمائة من تكاليف تشغيل الشركة‬25 ‫الكفاءة في سلسلة التوريد إلى إهدار ما يصل إلى‬.
• With profit margins of only 3 to 4 percent, the consultants point out, even a 5-percent reduction in supply
- chain waste can double a company's profitability.
.‫ بالمائة في هدر سلسلة التوريد يمكن أن يضاعف ربحية الشركة‬5 ‫ يشير المستشارون إلى أنه حتى التخفيض بنسبة‬،‫ بالمائة فقط‬4 ‫ إلى‬3 ‫مع هامش ربح يتراوح بين‬
2. Working - capital reductions.‫ تقليل رأس المال العامل‬.
• Increasing inventory turns, managing receivables and payables, minimizing days of supply in inventory,
and accelerating the cash - to - cash cycle all are affected by supply chain execution.
3. Fixed-capital efficiency.‫ كفاءة رأس المال الثابت‬.
• This refers to network optimization -- for instance, assuring that the company has the right number of
warehouses in the right places, or outsourcing functions where it makes more economic sense.
4. Global tax minimization.‫ تقليل الضرائب على المستوى العالمي‬.
• There's a ton of money here," Thompson says, if companies look at assets and sales locations, transfer
pricing, customs duties, and taxes.
5. Cost minimization.‫ تقليل التكاليف‬.
• This largely focuses on day -to - day. operations, but it also may involve making Strategic choices about
such issues outsourcing and process design.
1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:
17 01008499765 (Transportation Management -R)
 Chapter 2: Business Logistics:
Q1: Differentiate between logistics, supply chain and SCM? 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
• Logistics: typically refers to activities that occur within • Supply Chain: refers to networks of companies
the boundaries of a single organization. that work together and coordinate their actions
• "Logistics is about getting: to deliver a product to market.
• the right product to the right customer, in the right
quantity, in the right condition, at the right place, at the
right time, and at the right cost (the seven Rs of
Logistics)" - from Supply Chain Management.
• Traditional logistics: focuses its attention on activities • Supply Chain Management (SCM):
such as procurement, distribution, maintenance, and acknowledges all of traditional logistics and also
inventory management. includes activities such as marketing, new
product development, finance, and customer
service”
Q2: What is Logistics Management?
Logistics Management: deals with the efficient and effective management
of day-to-day activity in producing the company's finished goods and
services.

Business Logistics/Supply Chain Management:

- covers the planning, organizing, and controlling of activities such as
transportation, inventory maintenance, order processing, purchasing,
warehousing, materials handling, packaging, customer service standards, and product scheduling.
- It is specifically designed to help learners solve the actual problems that they will encounter in today’s
marketplace.
- It provides the basic decision-making tools and concepts used for finding cost reduction and strategic
opportunities.
Q3: What is the Difference between Inbound and Outbound Logistics?
Inbound Logistics Outbound Logistics
Supplier Manufacturer Market
• Inbound Logistics refers to the movement of goods and raw materials from suppliers to your company.
• Outbound Logistics: refers to movement of finished goods from your company to customers”.
Q4: What is Transport and Logistics?
Refers to 2 types of activities, namely:
• Transportation (traditional services such as air/sea/land
transportation, warehousing, customs clearance).

• Logistics: (value-added services. which includes information

technology and consulting)".

Q5: What are International Logistics and Global Logistics?

International Logistics (also known as Global Logistics):
- focuses on how to manage and control overseas activities effectively as a single business unit.
- Therefore, companies should try to harness the value of overseas product, services, marketing, R&D and tum
them into competitive advantage".
- They are used interchangeably and often referred to international production and transportation activities.
Q6: What is 3PL or Third-Party Logistics?
- 3PL: refers to the outsourcing of logistics activities, ranging from a specific task, such as trucking or marine
cargo )‫ (البضائع البحرية‬transport to broader activities serving the whole supply chain such as inventory
management, order processing and consulting.”

Reasons of Transportation by outsource Provider / by 3PL:

a- Haven’t the ability to transfer.

2 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

18 01008499765 (Transportation Management -R)
 b- Have the ability but, the outsource provides the transportation service in lower cost.
- In the past, many 3PL providers didn't have adequate expertise to operate in complex supply chain structure
and process. The result was the inception of another concept.
-^ ‫ جديد ظهرواللى موجود فى السؤال الجاي‬concept ‫ كان عندهم الخبرة الكافية للعمل في هيكل وعملية سلسلة التوريد المعقدة وده خلى فى‬outsource provider ‫بس مش كل الـ‬
Q7: What is 4PL or Fourth Party _Logistics?
- a party who works on behalf of the client to do contract negotiations and management of performance of
3PL providers, including the design of the whole supply chain network and control of day-to-day operations.
‫ بما في ذلك تصميم‬،Transportation ‫ وبتابع عملية ال‬3PL ‫ بيقوم بكل المفاضات الجراء العقود ويتابع أداء الــ‬Client ‫من اآلخر بيكون طرف بينوب عن الــ‬ -
.‫شبكة سلسلة التوريد بأكملها والتحكم في العمليات اليومية‬
3 reasons why customers would like to use 4PL providers:
a- Lack of technology to integrate supply chain processes.
b- The increase in operating complexities.
c- The sharp increase in global business operations.
Q8: Indicate the key activities of logistics management?
There are four key activities of typical logistics system:
1- Alliance between Customer Service and Marketing: 2- Transportation:
- To determine customer needs and wants for logistics - Mode and transport service selection.
services. - Freight consolidation - Carrier routing.
- To determine customer responses to service. - Vehicle scheduling.
- To set customer service levels. - Equipment selection.
- Claim processing. - Rate auditing
3- Inventory Management: 4- Information flows and order processing:
- Raw materials and finished goods stocking policies. - Sales order-inventory interface procedures.
- Short-term sales forecasting. - Order information transmittal methods.
- Product mix at stocking points. - Order rules (e.g., EOQ, Lot for Lot etc.)
- Number, size, and location of stocking points.
- Just-in-time, push and pull strategies.
Q9: Why is logistics management is important?
1- Customer Satisfaction:
- Meeting customer demand and providing superior service are crucial benefits of logistics management.
- Good logistics management is essential for satisfying customer demands.
2- Visibility in the Supply Chain:
- Logistics management creates visibility into a company's supply chain.
- Advanced systems analyze historical and real-time data, enabling optimization and preventing disruptions.
3- Revenue Growth:
- Proper logistics management leads to increased revenue.
- Improved customer service enhances a company's reputation and generates more business.
- Supply chain visibility results in significant cost savings in operations.
4- Operational Efficiency:
- Logistics management ensures control over inbound freight, optimal inventory levels, and organized reverse
flow of goods.
- Proper utilization of transportation modes cuts costs significantly.
5- Role of 3PLs:
- Due to the growing complexity of logistics management, many companies opt for third-party logistics
providers (3PLs).
- 3PLs offer expertise and advanced technology to cut costs and improve processes more efficiently than in-
house solutions.
Q10: How do you know if a logistics management operation is efficient?
An effective logistics management operation should yield 4 key results:
1- Increase revenue.
2- Improve operating cost structure.
3- Reduce overall transportation costs.
4- Improve customer service.

3 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

19 01008499765 (Transportation Management -R)
 Chapter 4: Information Technology & Supply chain Management:
Q1:How the information systems support & help supply chain𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
- It’s a software system that helps to collect a great amount of data ,process the data & save it to offer
information we needed.
- It studies the different alternatives to provide the most suitable alternative which in turn will lead to
integration & work successfully that help in making decisions.
Q2:Explain Material Requirement planning system (MRP I)?
➢ MRP 1: is a collection of techniques which enable management of the upper part of the supply chain, &
particularly in the supply subsystems & production.
➢ These techniques are often supported with appropriate computer applications.
➢ The main objective: making the flows between the supplier & the recipient more efficient. It is achieved
by optimization of the supplies needed for production.
➢ The objectives of the MRP system are: ➢ The main elements of MRP systems include:
- Providing a sufficient number of materials, parts & - Master Production Schedule (MPS).
products for the needs of the planned production - A specification of elements which create the structure
or supply to the customer. of the product — Bill of Materials (BOM).
- Maintaining a minimum level of supplies. - Master Production Schedule (MPS).
- Planning production, supplies & purchasing - Inventory Master File (IMF).
Q3:Explain Material Requirement planning system (MRP II)?
➢ MRP II: is the development of the MRP system & is an integrated multi-accessible IT system designed for
supporting management of a production enterprise which in fact the basic link in the supply chain.
➢ It joins the process of planning, steering, & manufacturing.
➢ Implementation of MRP II enables better customer service through limiting the cases of shortages or lack
of supplies, more efficient supplies, & higher sensitivity to the changes in Demand, & therefore make the
relation between the supplier & the recipient more efficient in the supply chain.
➢ The system of planning production supplies facilitates the reduction of costs of stock & downtime of the
production line & increase the flexibility of flows.
The MRP II system covers most of all the planning of:
1. Undertakings. 3. Material Requirements.
2. Production. 4. Capacity Requirements.
Functions: Presents 16 groups of functions which it is supposed to fulfill:
1. Sales & Operation Planning (SOP). 9. Capacity Requirement Planning (CRP).
2. Demand Management (DEM). 10. Input/output Control (OC).
3. Master Production Scheduling (MPS). 11. Purchasing (PUR).
4. Material Requirement Planning (MRP). 12. Distribution Resource Planning (DRP).
5. supporting material structures mgt - Bill of 13. Tooling Planning & Control.
Material Subsystem (BOM). 14. Financial Planning Interface.
6. Inventory Transaction System (INV). 15. Simulations.
7. Scheduled Receipts Subsystem (SRS). 16. Performance Measurement.
8. Shop Floor Control (SEC).
Two most important functions in planning MRP II production resources are performed by two components:
➢ MRP - material requirements planning.
➢ CRP - capacity requirements planning.
In order to plan the material requirements well, you need to introduce the following into the data base:
1. Forecast of the ready goods sales.
2. Number of components, raw materials & materials falling on one unit of sale of the ready good.
3. Dates of supply of components, raw materials, & materials.
4. The length of the production cycle of the ready good:
5. Warehouse state of the ready goods, components, raw materials, & materials
6. Minimum units of purchase & size of packaging.
7. The size of the safety supplies of ready goods, components, raw materials & materials.
The right functioning of MRP II requires previous opening of the order:
➢ For the customers.
For production.
➢ For the purchase of components, raw materials, & materials.

4 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

20 01008499765 (Transportation Management -R)
The forecast of the production capacity requires the knowledge about:
➢ Production scheduling. ➢ Workload of the working centers.
➢ Capacities of the working centers. ➢ Working time parameters.
➢ Production routes.
➢ Available resources of production capacities in machine hours.
Advantages Disadvantages
1. The improvement in production planning & the 1- The main disadvantage of MRP is that the
possibility of its tracking. original MRP method is already 50 years old &
2. Decreasing the stock state by their better distribution often it is not able to fulfill the needs of
& tracking their state in the warehouses. contemporary enterprises.
3. Lowering the costs connected with decreasing the 2- MRP/MRP II are not sufficient in case of a
stock state. complex approach to logistics chain
4. Complex reporting, reports about production planning
management or production cooperation of a
& execution.
few companies.
5. Ordering the information flow & facilitating access to
it. 3- The Master Production Schedule is too rigid a
6. The possibility of short- & long-term planning on the tool for modern companies.
basis of the possessed data & also conducted ‫عمرها‬ ‫ األصلية‬MRP ‫ هو أن طريقة‬MRP ‫العيب الرئيسي لبرنامج‬-1
simulations. ‫ عا ًما وغالبًا ما تكون غير قادرة على تلبية احتياجات المؤسسات‬50 ‫بالفعل‬
7. The improvement in supply & sale through integration .‫المعاصرة‬
of data about it with the data about the company's
Demand. ‫ ليست كافية في حالة وجود نهج معقد إلدارة سلسلة‬MRP / MRP II-2
.‫اللوجستيات أو التعاون اإلنتاجي لعدد قليل من الشركات‬
Q4: What are Distribution Resources Planning System (DRP)? 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
➢ is defined as a system which determines the Demandfor resources in particular distribution centers of the
enterprise.
➢ It gathers information about the Demand& sends it to the production & the material system. It begins
forecasting from the lowest level of the distribution channel, e.g., a shop or a warehouse.
➢ Application of the DRP model enables achieving the following benefits:
- Raising the level of customer service.
- Lowering the risk of the resource’s depletion.
- Reduction of the level of resources of the ready product.
- Reducing the level of the transport costs.
- Facilitating the functioning of the distribution centers.
Q:What is customer relationship management CRM? 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
➢ CRM is one of the supporting systems for the company the need to provide marketing actions with help.
➢ SFA (sales force automation tools) enabling automation of business tasks, started to be developed.
➢ This include:
- order processing. - warehouse stock control.
- contact management/customer relationship - order tracking.
management. - sales forecast & analysis.
- information exchange.
➢ CSS (customer service support) systems were another stage supporting the work of the after-sales &
service department on a greater scale. They were a reaction to customers leaving for the competition due to
poor service quality.
➢ Definitions of CRM found in literature:
- CRM: is an infrastructure that enables defining & multiplying the consumers’ value & proper means used
to encourage the best customers to be loyal, i.e. to make another purchase.
- CRM: is a consumer-oriented, integrated, widely accessible & open computer system, intended to aid the
marketing management, sales, service, & technical support, i.e. the features of the seller-consumer relation,
underlining the characteristics of the consumer, aimed at attracting & maintaining a long-term cooperation
with the latter.
- CRM: is a business strategy building relations and managing the clients in order to optimize the long-term
benefits.

21
1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
 Chapter 5: Issues in Supply chain Management:
Q1: what are the Characteristics of the logistics information system? 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
Logistics management: is connected with acquisition, collection, processing, and transmission of large amounts
of information. Meeting the information demand of the management functions requires that an information
system be created, which would provide continuous access to timely, accurate and truthful information.
From the perspective of logistics, the basic benefits of implementing information systems include:
- customer service improvement.
- increasing the atmosphere of trust and confidence through good communication within the logistics chain.
- The possibility to use electronic signatures.
- stock levels reduction.
- synchronization of supply, production, and distribution processes.‫تزامن عمليات التوريد واإلنتاج والتوزيع‬
- the capacity to produce to order - as opposed to "to stock" production.
- the reduction of possible downtime caused by shortage of materials for production.
- cost levels reduction.
- improvement of delivery timeliness, lessening probable errors made in orders.
- reduction of the number of documents in circulation.
Logistics information systems, is a guarantee of business performance improvement, which manifests itself in:
- operations speed improvement. - the quality of customer service,
- production quality improvement.
- cost reduction, and thereby higher competitiveness in the market.
Q2: What are the significant sources of information that are the reports of the logistics system?
First: the new market environment which is created by access to a global network.
Second: the market space convergence resulting from the absence of geographic isolation of companies and economies.
Third: the new technologies that enable people and organizations to interact in a network environment.
Fourth: the convergence of infrastructure consisting of a combination of different technologies for distribution of data
-

and information.
Fifth: the convergence of processes involving
Sixth: the convergence of products that may exist in various forms of physical and electronic formats, depending on the
level of relevance to the consumer.
Q3: What are the most commonly used applications, systems and advisory services in Logistics?
- The make or buy issue.
- production planning, including the development of assortment planning,
- raw material supply planning, including the choice of supplier, supply forecasting.
- customer service, including identification of customers' needs and requirements.
- forecasting the demand, in terms of time and space.
- planning the deployment of storage bases, including determination of their size and number.
- warehouse management, including warehouse space planning, admissions, and releases scheduling.
- stock control, including the estimation of safe stock level.
- transport management/ transportation planning, including cargo distribution and complementation,
planning of removals (route-planning).
Q4: What are Logistics flows infrastructure?
➢ The implementation of logistics processes requires infrastructure, which should facilitate the efficient and
effective physical transfer of goods and services from the place of origin to the final destination.
➢ logistics infrastructure: The Dictionary of Logistics Terminology
- is a system of roads, waterways, airports, seaports and/or telecommunication networks located in a
given area.
- there are three components of logistics infrastructure:
• The linear component: the network existing in a given country, understood as every separate strip
of land, intended for transportation traffic or stopping-places.
• The point component: separate facilities for stationery cargo handling (discharge areas, stations,
yards and transshipment points, logistics centers).
• Communication infrastructure: the media, the data exchange standards and the measures to ensure
their flow.
1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:
22 01008499765 (Transportation Management -R)
 Q5: What are Logistics flows infrastructure?
➢ Definition of Logistics Costs: 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
- Logistics costs are the purposeful consumption of economic system resources, expressed in monetary
units.
- These costs result from the flow of material goods, supply, maintenance, and processing information
connected with logistics operations in the economic system and its supply chain.
➢ Scope of Logistics Costs:
- First Subsystem:
• Major burden in the cost structure.
• Directly connected with logistics processes (materials purchase, transportation, warehousing,
packaging).
• Related to maintaining necessary customer service standards.
- Second Subsystem:
• Costs arising from extraordinary events, losses, and the decrease of assets due to logistics operations.
• Caused by inadequate standards and quality of raw materials and products.
• Stemming from penalties and random factors, including crisis situations.
- Third Subsystem:
• Costs (tangible and intangible) of lost benefits.
• Result from inventory shortages due to unforeseen needs, such as emergency or crisis situations.
- Cognitive Aims of Analyzing Logistics Costs:
• Determine the relation of costs to basic types of logistics processes: physical and information flows,
inventory maintenance, transport, exploitation, etc.
• Understand costs in relation to the supply and materials flow.
• Examine the use of expenditure in specific decision-making situations.
• Explore the origin of costs and their use in Activity Based Costing (ABC).
➢ from the perspective of the most basic components of logistics processes divides them into three
groups:
• the costs of the physical flow of materials.
• The costs of the stocks.
The costs of information processes
Questions on chapter 1
1. is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive
advantage
A. forecasting. C. planning.
B. supply chain D. Strategic management.
2. __________ Represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective
and efficient ways possible.
a) forecasting. c) planning.
b) supply chain management. d) Strategic management.
3. __________ activities cover everything from product, development, sourcing production and logistics as well as information
system needed to coordinate these activities
a) forecasting. c) planning.
b) supply chain management. d) Strategic management.
4. __________ Is the management of network of all business processes and activities involving procurement of row materials
manufacturing and distribution management of finished the goods.
a) forecasting. c) planning.
b) supply chain. d) Strategic management.
5. __________ Is also called the art of management of providing the right product at the right time right place and the right
goes to the customer.
A. forecasting. C. planning.
B. supply chain. D. Strategic management.
6. The concept of supply chain management is based on:
a) Every product that reaches an end user represents the commutative effort of multiple organizations.

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

23 01008499765 (Transportation Management -R)
 b) While supply chain had existed for a long time most organizations have only paid attention to what was happening within
their four walls.
c) Both of them. d) None of them.
7. __________ Involves the transformation, movement and storage of goods and materials.
A. Forecasting. C. physical flows.
B. information flows. D. strategic management.
8. __________ Allow the various supply chain partners to coordinate their long-term plans and control the day-to-day flow
of goods and materials up and down the supply chain
A. Forecasting. C. physical flows.
B. information flows. D. strategic management.
9. ________ Involves leveraging the core competencies of the organization to achieve a defined high-level goal or objective.
A. business strategy C. information flow
B. physical flows D. supply chain
10. Supply chain management issues include:
A. Modal analysis C. Supply chain management.
B. Load planning D. All of them.
11. __________ is a cross functional approach that includes managing the movement of remove material into an organization
certain aspect of the internal processing of materials into finished goods and the movement of finished goods out of the
organization and forward to the end user.
A. Supply-chain management. C. physical flows.
B. Business Strategy. D. information flows.
12. The fundamental objective of __________ is to “add value”
A. Supply-chain management. C. physical flows.
B. Business Strategy. D. information flows.
13. The objective of supply chain:
A. Reducing working capital. D. Increasing inventory turns and do on.
B. Taking assets off the balance sheet. E. All of them.
C. Accelerating cash-to- cash cycles.
14. Companies traditionally have grouped customers by industry, product, or trade channel and then provided the same level
of service to everyone within a segment is the principle of:
A. Segment customers based on service needs.
B. Customize the Supply Chain Management network.
C. Listen to signals of market demand and plan accordingly.
D. Differentiate product closer to the customer.
15. In designing their Supply Chain Management network, companies need to focus intensely on the service requirements and
profitability of the customer segments identified is the principle of:
a) Segment customers based on service needs.
b) Customize the Supply Chain Management network.
c) Listen to signals of market demand and plan accordingly.
d) Differentiate product closer to the customer.
16. The conventional approach of creating a "monolithic" Supply Chain Management network runs counter to successful
supply-chain management.
A. Segment customers based on service needs.
B. Customize the Supply Chain Management network.
C. Differentiate product closer to the customer.
17. This demand - intensive approach leads to more consistent forecasts and optimal resource allocation is the principle of:
a) Segment customers based on service needs.
b) Customize the Supply Chain Management network.
c) Listen to signals of market demand and plan accordingly.
d) Differentiate product closer to the customer.
18. Companies today no longer can afford to stockpile inventory to compensate for possible forecasting errors is the principle
of:
A. Segment customers based on service needs.
B. Customize the Supply Chain Management network.
C. Listen to signals of market demand and plan accordingly.
D. Differentiate product closer to the customer.
𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
2 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:
24 01008499765 (Transportation Management -R)
 19. By working closely with their key suppliers to reduce the overall costs of owning materials and services, supply-chain
management leaders enhance margins both for themselves and their suppliers is the principle of:
A. Strategically manage the sources of supply.
B. develop a supply chain wide Technology Strategy.
C. Adopt channel – spanning performance measures.
D. Listen to signals of market demand and plan accordingly.
20. The organizations adopt measures that apply to every link in the supply chain. These measurement systems embrace both
service and financial metrics, Such as each account’s true profitability is the principle of:
A. Strategically manage the sources of supply. C. Adopt channel – spanning performance measures.
B. develop a supply chain wide Technology Strategy. D. Listen to signals of market demand and plan accordingly.
21. The characteristics of supply chain management program are:
A. They focus in intensely on actual customer demand
B. involved in new product level development
C. inefficiencies in the supply chain can waste up to 25% companies operating costs
D. All of them.
22. The area in which supply chain management can have a direct effect on corporate value include:
A. profitable growth. C. fixed capital efficiency.
B. working capital reductions. D. all of them.
23. The area in which supply chain management can have a direct effect on corporate value include:
A. Global tax minimization. D. all of them.
B. Cost minimization.
C. fixed capital efficiency.
24. supply chain management contributes to profitable growth by:
A. allowing assembly to perfect orders. C. supporting after sales service
B. getting involved in new product development D. all of them.
25. Encompasses all processes involved in reducing and delivering a product to customer
A. business strategy . C. information flow .
B. physical flows .
D. supply chain.
26. Conditions for SCM implementation include:
A. It requires changing the process.
B. Supply chain management professionals must become conversant with information technology.
C. all of them.
27. SCM creates ____ by managing the processes of all of those independent trading partners so that they can ____ with one
another in an efficient, effective, and cost-conscious way(value; collaborate)
28. What does Supply Chain Management (SCM) aim to achieve?
A. Increase production costs.
B. Maximize customer value and achieve a sustainable competitive advantage.
C. Minimize product development activities.
D. Avoid any conscious effort in supply chain operations.
29. How is Supply Chain Management described in terms of business processes? 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
A. Managing only manufacturing processes.
B. Managing a network of procurement processes.
C. Managing a network of all business processes involving procurement, manufacturing, and distribution.
D. Focusing solely on logistics processes.
30. According to SCM, what is often referred to as the "art of management"?
A. Minimizing production costs.
B. Providing the Right Product, At the Right Time, Right Place, and at the Right Cost to the Customer.
C. Avoiding product development activities.
D. Maximizing logistics efficiency.
31. What is the fundamental idea behind Supply Chain Management (SCM)?
a. Products reaching end users involve a single organization's effort.
b. Products reaching end users involve the cumulative effort of multiple organizations.
c. End users are solely responsible for product delivery.
d. Supply chains are irrelevant to product delivery.

3 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

25 01008499765 (Transportation Management -R)
Questions on chapter 2:
1. __________ typically refers to activities that occur within the parameters of a signal organization.
a) Logistics. c) traditional logistics.
b) supply chain. d) supply chain management.
2. _________ refers to the network of companies that work together and coordinate their actions to deliver products to market.
a) Logistics. c) traditional logistics.
b) supply chain. d) supply chain management.
3. __________ focuses its attention on activities such as procurement, distribution, maintenance and inventory management.
a) Logistics. c) traditional logistics.
b) supply chain. d) supply chain management.
4. __________ acknowledges all traditional logistics and also includes activities such as marketing, new product, development,
finance, and customer service.
a) Logistics. c)traditional logistics.
b)supply chain. d)supply chain management.
5. __________ is about getting the right product, to the right customer, in the right quantity, in the right condition, at the
right place, at the right time, and the right cost.
a) Logistics. c) traditional logistics.
b) supply chain. d) supply chain management
6. __________ deals with the efficient and effective management of day-to-day activity producing the companies finished
goods and services.
a) Logistics. c) traditional logistics.
b) supply chain. d) logistics management.
7. __________ cover the planning, organizing, and controlling of activities such as transportation, inventory maintenance,
order processing, purchasing, housing, material, handling, packaging, customer service standard, and the project scheduling
a)Logistics. c)traditional logistics.
b)supply chain. d)supply chain management.
8. Business logistics / supply chain management covers the planning, organizing, and controlling of activities such as:
a) Transportation. c) inventory maintenance.
b) order processing. d) all of them.
9. Business logistics / supply chain management covers the planning, organizing, and controlling of activities such as:
a) Purchasing materials. c) warehousing.
b) Handling d) all of them.
10. Business logistics / supply chain management covers the planning, organizing, and controlling of activities such as:
a) Packaging c) customer service standards
b) product scheduling d) all of them.
11. __________ provides the basic decision-making tools and concepts used for finding cost reduction and strategic
opportunities.
a)Logistics. c)traditional logistics.
b)supply chain. d)supply chain management.
12. __________ refers to movement of goods and raw materials from suppliers to your company in contract.
a) Inbound logistics c) supply chain .
b) outbound logistics. d) supply chain management.
13. __________ refers to movement of finished goods from your company to your customer.
a) Inbound logistics c) supply chain .
b) outbound logistics. d) supply chain management.
14. __________ Refers to two types of activities namely transportation (transportation services such as air/sea/ land
transportation, warehousing, customer clearance):
a) Logistics c) supply chain
b) Transport d) supply chain management.
15. _________ is the value-added services which including information technology and consulting.
a) Logistics c) supply chain
b) Transport d) supply chain management.
16. _________ focuses on how to manage and control overseas activities effectively as a single business unit.
a) International Logistics b) Transport

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

26 01008499765 (Transportation Management -R)
 c) supply chain d) supply chain management.
17. __________ Refers to the outsourcing of logistics activities, ranging from a specific task, such as trucking or marine cargo
transport to broader activities serving the whole supply chain:
a) third-party logistics c) supply chain
b) 4th -party logistics d) supply chain management.
18. 3rd the birthday logistics serves as the wound supply chains such as:
a) inventory management. c) order processing.
b) Consulting. d) all of them.
19. __________ Refers to a part who works on behalf of the client to do contract negotiations and management of performance
of 3PL providers:
a) third-party logistics. c) supply chain.
b) 4th -party logistics. d) supply chain management.
20. customers would like to use 4PL providers:
a) Lack of technology to integrate supply chain processes. c) The sharp increase in global business operations
b) The increase in operating complexities. d) all of them.
21. there is an Alliance between Customer Service and Marketing:
a) To determine customer needs and wants for logistics services.
c) To set customer service levels.
b) To determine customer responses to service. d) all of them.
22. The activities of Transportation that relate to logistics management:
a) Mode and transport service selection. c) Carrier routing.
b) Freight consolidation d) all of them.
23. The activities of Transportation that relate to logistics management:
a) Vehicle scheduling.
b) Equipment selection.
c) Claims processing 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
d) all of them.
24. __________ will give a company control over inbound freight, keep inventory at optimal levels, organize the reverse flows of
goods and utilize freight moves on the proper transportation models all of which can cut costs significantly
a) Logistics. c) traditional logistics.
b) supply chain. d) logistics management.
25. With the growing complexity of logistics management, many companies select a__________ to manage some are all their
logistics functions:
a) third-party logistics.
b) 4th -party logistics.
c) supply chain.
d) supply chain management.
26. __________ have expertise and advanced technology to cut costs and improve the processes much more efficiently than
companies can in-house:
a) third-party logistics.
b) 4th -party logistics.
c) supply chain.
d) supply chain management.
27. __________ analyze historical data and track real time movement of goods into and out of business:
a) third-party logistics.
b) 4th -party logistics
c) international logistics
d) advanced transportation management system
28. Data analysis of __________ keeps a company supply chain moving more efficiently all while gaining operational insight.
a) third-party logistics. c) international logistics
b) 4th -party logistics d) advanced transportation management system
29. The results of effective logistics management operation are:
a- increase revenues.
b- improving operating cost structure.
c- reducing overall transportation costs.

27
1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point: 01008499765 (Transportation Management -R)
Questions on chapter 4
1- the management information systems are allowed for:
a. The use of any branch systems & data sources.
b. Making available reports to selected users according to the policy adopted. 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
c. preparation of reports & analysis ad hoc.
d. all of them.
2- The management information systems are allowed for:
a. Making available reports to selected users according to the policy adopted.
b. Automatic refreshing of reports & making the reports available.
c. sharing the central data repository through a corporate for portal.
d. all of them.
3- In TS & __________ that decision situation has been defined in the information database & the models of the decision-making
process (if they occur) are a permanent element of the user's software.
a) transaction systems.
b) The management information system MIS
c) Decision support systems
d) Knowledge management.
4- __________ is mostly used to solve non structured or poorly structured problems.
a) transaction systems. c) Decision support systems.
b) The management information system MIS. d) Knowledge management.
5- __________ supports the reasoning process whilst not eliminating it & makes decisions more efficient & not just quicker.
a) transaction systems. c) Decision support systems.
b) The management information system MIS. d) Knowledge management.
6- The computerized __________ allows the decision maker to use the data & models in order to recognize, underst& &
formulate the problem
a. transaction systems. c. Decision support systems.
b. The management information system MIS. d. Knowledge management.
7- __________ supports creating solution projects, enables multi-dimensional forecasts & analysis of their efficiency.
a. transaction systems. c. Decision support systems.
b. The management information system MIS. d. Knowledge management.
8- The basic functions of decision support system include:
a) data bases management. c) analysis & structurization of the model.
b) presenting results — in the right form. d) all of them
9- The basic functions of decision support system include:
a) construction of the model of mathematical solutions to the problem.
b) statistical techniques & models. d) all of them.
c) forecasting & simulation models.
10- __________ allow the managers to gain a wider perspective on the problem & enable simulation of effects of different variants
of the decision & the impact of various situation development scenarios in the company's surroundings on the effects achieved
through the decisions Made.
a) transaction systems. c) Decision support systems.
b) The management information system MIS. d) Knowledge management
11- __________ are characterized by Separating the base of decision models from the user's software, the possibility of simulating
decision Situations, the possibility of analyzing the model selection process & generating justifications for the executed
process.
a) transaction systems. c) Decision support systems.
b) The management information system MIS. d) Knowledge management.
12- __________ Supported by: computers through the systems of physical facilities design support & those based on the so-
called artificial intelligence.
a) transaction systems. c) Decision support systems.
b) The management information system MIS. d) Knowledge management.
13- The main objective of a __________ making the flows between the supplier & the recipient more efficient. It is achieved by
optimization of the supplies needed for production.
a) transaction systems. c) Decision support systems.
b) Material requirements planning system. d) Knowledge management.

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

28 01008499765 (Transportation Management -R)
14- __________ is a collection of techniques which enable management of the upper part of the supply chain, & particularly in
the supply subsystems & production.
a) transaction systems. c) Decision support systems.
b) Material requirements planning system. d) Knowledge management.
15- __________ foresees the production times & supply times. The planning process may include optimization of costs, time of
completion & profitability.
a) transaction systems. c) Decision support systems.
b) Material requirements planning system. d) Knowledge management.
16- The objectives of the MRP system include:
a) Providing a sufficient number of materials, parts & products for the needs of the planned production or supply to the customer.
b) Maintaining a minimum level of supplies.
c) Planning production supplies & purchasing.
d) All of them.
17- The main elements of the MRP system include:
a) Master Production Schedule (MPS).
b) A specification of elements which create the structure of the product — Bill of Materials (BOM).
c) Master Production Schedule (MPS).
d) Inventory Master File (IMF).
e) All of them.
18- __________ is the development of the MRP system & is an integrated multi accessible IT system designed for supporting
management of a production enterprise which in fact the basic link in the supply chain;
a) transaction systems.
b) Material requirements planning system.
c) Decision support systems.
d) Material requirements planning system II.
19- __________ compiled & published by the APCIS (American Production & Inventory Control Society) organization
commission in the late 80s.
a) transaction systems. c) Decision support systems.
b) Material requirements planning system. d) Material requirements planning system II.
20- __________ joins the process of planning, steering & manufacturing. Moreover, the processes also include, apart from the
cells directly connected with production, the cells from other functional departments of the company (supply, distribution &
others, according to needs), integrating them together.
a) transaction systems. c) Decision support systems.
b) Material requirements planning system. d)Material requirements planning system II.
21- The MRP II system covers most of all the planning of:
a. Undertakings. c. Material Requirements.
b. Production. d. All of them.
22- The MRP II system covers most of all the planning of:
a) Undertakings. c) Material Requirements.
b) Capacity requirements. d) All of them.
23- The MRP II Presents 16 groups of functions which it is supposed to fulfill:
a) Sales & Operation Planning (SOP). c) DemandManagement (DEM).
b) Master Production Scheduling (MPS). d) All of them.

24- Most important functions in planning MRP II production resources are performed
a) MRP - material requirements planning. c) Both of them.
b) CRP - capacity requirements planning. d) none of them.
25- In order to plan the material requirements well, you need to introduce the following into the data base:
a) Forecast of the ready goods sales.
b) Number of components, raw materials & materials falling on one unit of sale of the ready good.
c) Dates of supply of components, raw materials, & materials.
d) All of them.
26- In order to plan the material requirements well, you need to introduce the following into the data base:
a) The length of the production cycle of the ready good.
b) Warehouse state of the ready goods, components, raw materials, & materials

0 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

29 01008499765 (Transportation Management -R)
 c) Minimum units of purchase & size of packaging.
d) All of them.
27- The forecast of the production capacity requires the knowledge about:
a) Production scheduling. c) Production routes.
b) Capacities of the working centers. d) All of them.
28- the benefits of using MRP II system include:
a) The improvement in production planning & the possibility of its tracking.
b) Decreasing the stock state by their better distribution & tracking their state in the warehouses.
c) Lowering the costs connected with decreasing the stock state.
d) All of them.
29- What is CRM primarily designed to support within a company?
a) Human Resources c) Financial Management
b) Marketing Actions. d) Product Development
30- What are some functionalities included in Sales Force Automation (SFA) tools?
a) Employee Training c) Business Task Automation
b) Inventory Management d) Facility Maintenance
31- Which of the following is NOT a component of CRM systems?
a) Order Processing c) Project Management
b) Warehouse Stock Control d) Sales Forecast & Analysis
Questions on Chapter 5
1- What is the primary focus of logistics management in relation to information?
a) A) Production Quality Improvement c) C) Transmission of Large Amounts of Information
b) B) Acquisition of Raw Materials d) D) Financial Management
2- What is a basic benefit of implementing information systems in logistics, according to the provided information?
a) A) Increase in Atmospheric Conditions c) C) Synchronization of Communication Processes
b) B) Reduction of Possible Downtime d) D) Improvement of Delivery Timeliness
3- How does the implementation of information systems contribute to customer service in logistics?
a) A) Reduction of Documents in Circulation c) C) Improvement of Delivery Timeliness
b) B) Increase in Atmospheric Conditions d) D) Enhancement of Customer Service
4- What is NOT mentioned as a benefit of implementing information systems in logistics?
a) A) Reduction of Stock Levels c) C) Production to Order Capability
b) B) Use of Electronic Signatures d) D) Increase in Atmospheric Conditions
5- According to the comprehension, what does the synchronization of supply, production, and distribution processes lead to?
a) A) Improvement of Delivery Timeliness c) C) Increase in Atmospheric Conditions
b) B) Reduction of Cost Levels d) D) Production Quality Improvement
6- What is described as a guarantee of business performance improvement in logistics information systems?
a) A) Synchronization of Processes c) C) Reduction of Stock Levels
b) B) Increase in Atmospheric Conditions d) D) Transmission of Large Amounts of Information
7- What does the reduction of possible downtime, as mentioned in the comprehension, contribute to?
a) A) Cost Reduction c) C) Increase in Atmospheric Conditions
b) B) Operations Speed Improvement d) D) Enhancement of Customer Service
8- What is identified as the first significant source of information in logistics reports?
a) A) Market Space Convergence c) C) New Market Environment from Global Network Access
b) B) New Technologies d) D) Convergence of Products
9- What does the second significant source of information in logistics reports result from?
a) A) Convergence of Products c) C) New Technologies
b) B) Absence of Geographic Isolation d) D) Convergence of Processes
10- What enables people and organizations to interact in a network environment, according to the provided information?
a) A) Convergence of Processes c) C) New Technologies
b) B) New Market Environment from Global Network d) D) Convergence of Infrastructure
Access
11- What does the fourth significant source of information involve in logistics reports?
a) A) Convergence of Products c) C) Convergence of Infrastructure
b) B) New Market Environment from Global Network d) D) Convergence of Processes
Access

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

30 01008499765 (Transportation Management -R)
12- What does the convergence of processes, mentioned as the fifth source of information, refer to?
a) A) New Technologies
b) B) Convergence of Products
c) C) Access to a Global Network
d) D) Combination of Different Technologies for Data Distribution
13- What is the sixth significant source of information in logistics reports related to?
a) A) Convergence of Infrastructure c) C) Convergence of Products
b) B) New Market Environment from Global Network d) D) Convergence of Processes
Access
14- Which logistics aspect does the "make or buy issue" primarily address?
a) Warehouse Management c) Stock Control
b) Production Planning d) Distribution Planning
15- What does raw material supply planning involve in logistics?
a) A) Selection of distribution channels c) C) Determination of safe stock level
b) B) Identification of customers' needs d) D) Choice of supplier and supply forecasting
16- What is the focus of customer service in logistics?
a) Warehouse Management c) C) Identification of Customers' Needs and Requirements
b) Forecasting Demand d) Distribution Planning
17- In logistics, what does distribution planning involve?
a) A) Determination of safe stock level
b) B) Selection of distribution channels
c) C) Planning the deployment of storage bases
d) D) Cargo distribution and complementation
18- What does warehouse management in logistics include?
a) A) Forecasting Demand
b) B) Determination of safe stock level
c) C) Warehouse space planning, admissions, and releases scheduling
d) D) Planning the deployment of storage bases 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
19- What is the primary focus of stock control in logistics?
a) Selection of distribution channels c) C) Cargo distribution and complementation
b) B) Estimation of safe stock level d) D) Planning the deployment of storage bases
20- What does transport management involve in logistics?
a) A) Warehouse space planning c) C) Assortment planning
b) B) Route-planning and planning of removals d) D) Identification of customers' needs and requirements
21- What is the primary requirement for the implementation of logistics processes?
a) A) Financial investment
b) B) Technological advancements
c) C) Efficient and effective infrastructure
d) D) Marketing strategies
22- How many components are there in logistics infrastructure according to the provided information?
a) A) Two c) C) Four
b) B) Three d) D) Five
23- What is the primary focus of logistics costs, according to the provided definition?
a) Consumption of physical goods c) Resource utilization in the economic system
b) Monetary expenditure on marketing d) Customer service standards implementation
24- What causes costs in the second subsystem related to logistics operations?
a) Adequate standards and quality of raw materials c) Customer service standards implementation
b) Penalties and random factors d) Monetary investment in marketing
25- In the third subsystem, what primarily results in the costs of lost benefits?
a) Unforeseen needs, such as emergency or crisis situationsc) Standardization of logistics processes
b) Adequate inventory maintenance d) Effective customer service
26- What are the cognitive aims of analyzing logistics costs?
a) Focus on customer satisfaction c) Determine the relation of costs to basic types of logistics
b) B) Understand the supply chain dynamics processes
d) Implement marketing strategies

0 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

31 01008499765 (Transportation Management -R)
27- Which of the following is NOT mentioned as a part of the first subsystem of logistics costs?
a) Transportation costs c) Costs of lost benefits
b) Costs related to inventory maintenance d) Packaging costs
28- What do the costs in the second subsystem result from?
a) Efficient logistics operations c) Planned marketing campaigns
b) Adequate standards and quality of raw materials d) Crisis situations and inadequate standards
29- In the third subsystem, what contributes to the costs of lost benefits?**
a) Effective inventory management d) Unforeseen needs, such as emergency or crisis
b) Random factors in logistics operations situations
c) Planned customer service standards
30- What is the primary aim of analyzing the structure of kinds of expenditure in logistics costs?
a) Maximizing short-term profits
b) Determining the relation of costs to basic types of logistics processes
c) Implementing customer loyalty programs
d) Improving employee performance
31- How are logistics costs described?
a) Random financial expenditures c) Unplanned monetary investments
b) Purposeful consumption of resources d) Customer-oriented financial processes

Extra Questions: T/F IMP 𝔈𝓜𝓸 𝟚𝟘𝟚𝟜

1- SCM is the art of management of providing the right product, at the right time, right place and the right goes to customers. TRUE
2- The concept of SCM implies that most organizations are paying attention beyond there are four walls. FALSE
3- Information flows allow supply chain partners to coordinate their plans. TRUE
4- Any glitch in the product not being available at the right time can result in a drop in customer interest and demand which can be
disastrous. TRUE
5- SCM has nothing to do with moving goods more quickly. FALSE
6- Supply chain management helps Partners to gain more market share. TRUE
7- Supply chain management is a cross functional approach. TRUE
8- SCM has nothing to do with adding value. FALSE
9- SCM does not affect furnace inventory turnover ratios. FALSE
10- information technology can provide a clear view of the flow of products, services and information. TRUE
11- Excellent supply chain management systems adapt measures that apply to every link in the supply chain. TRUE
12- Effective supply chain management grouped customers by industry, product, or trade channel. FALSE
13- SCM can help manage receivables and payables. TRUE
14- SCM increases the cost figures of firms adapting it. FALSE
15- Fixed capital efficiency assures that the company has the right number of warehouses distributed within the right range. TRUE
16- Once the correct information is in hand, companies can design their SC processes to provide what the customers really needs TRUE
17- The implementation of the SCM consulting project takes more than five years to be established. FALSE
18- Implementation of SCM demands both executive management-level commitment and superb execution at the operational level.
TRUE
19- Supply chain refers to activities that appear within the boundaries of a single organization. FALSE
20- Logistics management deals with the efficient and effective management of the day-to-day activity in producing the company's
finished goods and services. TRUE
21- supply chain management acknowledges open traditional logistics only. FALSE
22- Movement of goods and raw materials from suppliers to your company is outbound logistics. FALSE
23- 3PL is the outsourcing of logistics activities. TRUE
24- The lack of technology to integrate supply chain processes is a motive to use 4PL. TRUE
25- Advanced transportation management systems TMS analyze historical data and track the real-time movement of goods into and out
of business. TRUE
26- An efficient management of logistics can increase firms’ revenue but it has nothing to do with transportation cost. FALSE
27- TS specialized mostly in records and elementary data. TRUE
28- In TS and MIS the decision situation has been defined in the information data base and the models of the decision-making process (if
they occur) are a permanent element of the user's software. TRUE
29- MRP’s main objective is to make the flows between the supplier and the recipient more efficient. TRUE
30- MPS (Master Production Schedule) is one of the subsystems of MRP. TRUE

0 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

32 01008499765 (Transportation Management -R)
Extra Questions: MCQ 𝔈𝓜𝓸 𝟚𝟘𝟚𝟜
1- Supply chain activities covered the following except:
a) product development. c) information systems
b) sourcing logistics d) nothing excluded.
2- every product that reaches and end users represents the community effort of:
a) single organization. c) One department.
b) Multiple organizations. d) Multiple departments.
3- which of the following is not true:
a) Faster product availability is key to increasing sales
b) Supply chain management tires and important role to play and moving goods more quickly to their destinations.
c) Information flows and all the various supply chain partners to compete with each other.
d) all the statements are true.
4- Any glitch in the product not being available at the right time can result in__________.
a) increasing inventory turns. c) a drop in customer interest.
b) increasing inventory storage. d) none of the above.
5- Which of the following sentences is false?
a) Supply chain management is a cross functional approach.
b) The fundamental objectives of SCM are to add value.
c) SCM does not affect a firm’s working capital.
d) old sentences are true.
6- The management of the flow of goods and services involves__________.
a) The movement and the storage of raw materials. c) finished goods.
b) Work in process inventory. d) all the above.
7- Companies traditionally have grouped customers by:
a) Industry. c) Product.
b) service needs. d) A and C.
8- By working closely with their key suppliers, firms have managed to__________.
a) reduce the overall cost figures. c) strategically accelerate information flow.
b) benefited from supplier’s discount. d) All of the above.
9- In SCM Context, EDP systems means__________.
a) electronic debit processing. c) electronic data processing.
b) electronic down payment. d) none of the above.
10- Which of the following is not an expected result of supply chain management?
a) Profitable growth. d) HRM competency.
b) tax minimization. e) none of the above.
c) working capital reduction. 𝔇𝔯.𝔈𝓜𝓸 𝟚𝟘𝟚4
11- When applying SCCM the most important thing is to first__________.
a) Analyze firm’s competitive position. c) understand customers’ needs.
b) promote a new product line. d) none of the above
12- According to research, the minimum number of employees needed in an organization to apply SCM is__________, at least
__________of them in management positions.
a) Ten, two c) Twenty, four.
b) A hundred, twenty. d) Thirty, seven.
13- Movement of goods and raw materials from suppliers to your company is called __________.
a) Outbound logistics. c) In-logistics.
b) internal logistics. d) Inbound logistics.
14- An effective logistics management yield__________.
a) Increasing revenues
b) reducing transportation costs
c) improving customer service
d) all of the above

1 | Registration – Mr. ELHOMY: 01111729649 -- For Qs on any point:

33 01008499765 (Transportation Management -R)