Supply Chain Management Multiple Choice Questions and Answers

MCQ for 206OSCM Supply chain management

Supply Chain Management Multiple Choice Questions and

Answers. 1. The costs of inventory at various levels and cost of logistics form the total cost of

___.

Ans. Distribution network

2. Distributors and retailers often rely on storage warehouses. (True/False)

Ans. True

3. At ___ level, the decisions are made with long-term objectives. (Pick the right

option)

a) Performance

b) Strategic

c) Tactical

d) Operational

Ans. b) Strategic

4. A company can understand the customer only if it identifies the needs of the ___.

Ans. Customer segment

5. What is demand uncertainty?

Ans. Demand uncertainty is the uncertainty of customers who demand the product.

6. A new product developed will have low supply uncertainty because the design and

production processes will not be fully developed. (True/False)

Ans. False. A new product developed will have high supply uncertainty because the

design and production processes will not be fully developed.

7. Companies that intend to increase the performance level must move their

competitive strategy and supply chain strategy towards the ___.

Ans. Zone of strategic fit

8. Each functional area creates its own independent strategy with the objective of

optimizing its ___.

Ans. Performance

9. The intracompany – intraoperative scope is a scope of strategic fit which is limited

to two operations in a functional area within a company. (True/False)

Ans. False. The intracompany – intraoperative scope is a scope of strategic fit which is

limited to one operation in a functional area within a company.

10. In intracompany – intra-functional scope, different functions have conflicting ___.

Ans. Objectives

11. In intercompany – inter-functional scope, the two parties work together to

minimize the amount of ___ required.

Ans. Inventory

12. Just-In-Time delivery (JIT) is a service provided by ___.

Ans. Package carriers

13. Truck Load shipping is best suited for transportation between manufacturing

facilities and warehouses or between suppliers and manufacturers. (True/False)

Ans. True

14. Rail services are considered as an ideal model for carrying large, heavy, or high-

density products over long distances. (True/False)

Ans. True

15. ___ modes of transportation suit high quantity shipments. (Pick the right option)

a) Air transportation

b) Water transportation

c) Rail transportation

d) Intermodal transportation

Ans. b) Water transportation

16. ___ are mostly used to transport liquid and gases.

Ans. Pipelines

17. Intermodal transportation is a combination of at least two or more modes of

transportation. (True/False)

Ans. True

18. Mass transportation is expensive than transporting goods in small quantities.

(True/False)

Ans. False. Mass transportation is cheaper than transporting goods in small

quantities.

19. Trip-related cost and quantity-related costs remain the same with all carriers.

(True/False)

Ans. False. Trip-related costs and quantity-related costs differ from carrier to carrier.

20. ___ cost includes administrative costs, rent of an office building, and so on.

Ans. Overhead

21. Which of the following is the cost involved in holding goods in a warehouse?

a) Facility cost

b) Processing cost

c) Inventory cost

d) Transportation cost

Ans. c) Inventory cost

22. Facility costs include the fuel of a vehicle used in transportation. (True/False)

Ans. False. Facility cost does not include the fuel of a vehicle used in transportation.

23. ___ cost is the cost involved in direct labor.

Ans. Processing

24. Higher service levels and fast delivery cost more. (True/False)

Ans. True

25. Which of the following are true with respect to traffic assignment?

a) Estimating the volume of traffic on a network

b) Estimating the turning movements at intersections

c) Both a) and b)

d) None of the above

Ans. c) Both a) and b)

26. All-or-none assignment model deals with different paths for every O-D pair.

(True/False)

Ans. False. The all-or-none assignment model deals with a single path for every O-D

pair.

27. ___ implements the all-or-none assignment model in steps.

Ans. Incremental assignment

28. The following traffic assignment model tries to estimate an equilibrium solution

based on the all-or-none assignment model.

a) Capacity restraint assignment

b) User equilibrium assignment

c) Incremental assignment

d) System optimum assignment

Ans. Capacity restraint assignment

29. ___ is based on Wardrop’s first principle.

Ans. User equilibrium assignment

30. System optimum assignment model is based on Wardrop’s second principle.

(True/False)

Ans. True

31. For a high value-to-weight ratio shipment, increasing inventories is important.

(True/False)

Ans. False. For a high value-to-weight ratio shipment, decreasing inventories is

important.

32. As the degree of inventory aggregation increases, the cost of transportation goes

up. (True/False)

Ans. True

33. Temporal aggregation of demands in a limited amount reduces the cost of

transportation effectively. (True/False)

Ans. True

34. Which of the following is the approach that is learned and mastered by

experience and self-learning?

a) Heuristic approach

b) Exact approach

c) Interactive approach

d) Combination approach

Ans. a) Heuristic approaches

35. ___ approach is also known as the Optimal approach.

Ans. Exact

36. Interactive approach is approaching that use tools like simulation, cost

calculation, and graphics. (True/False)

Ans. True

37. Combinational approach focuses on time and money-saving as a result of

decreasing vehicle operating expenses, giving better services to customers, and

improving productivity in fleet management. (True/False)

Ans. True

38. ___ modes of transportation best suit time-sensitive and emergency shipments.

(Pick the right option)

a) Air

b) Truck

c) Pipeline

d) Water transportation

Ans. Air

39. To minimize the supply and demand imbalances in the supply chain, firms utilize

various methods of ___.

Ans. Inventory management

40. ___ represents an investment in a product or material.

Ans. Inventory

41. ___ provides a low-cost service for export production. (Pick the right option)

a) Source facility

b) Offshore facility

c) Contributor facility

d) Outpost facility

Ans. b) Offshore facility

42. Source facilities need to be established in places where production cost is

relatively high. (True/False)

Ans. False. Source facilities prefer to be established in places where production costs

are relatively low.

43. A server facility is established as a result of tax incentives,___, and tariff barriers.

Ans. Local market requisites

44. ___ is established to gain the knowledge and skills of a certain region.

Ans. Outpost facility

45. If facilities have lower fixed costs many local facilities can be established because

this reduces ___

a) Fixed costs

b) Exchange rates

c) Transportation costs

d) Taxes

Ans. c) Transportation costs

46. The availability of good infrastructure is an important pre-condition to locate a

facility in a region. (True/ False)

Ans. True

47. Taxes and ___ affect the profits of a firm.

Ans. Tariffs

48. The goal of the network design models is to maximize the profit with the ___.

a) Reduction in transportation cost

b) Increased plant capacity

c) Suitable location

d) Satisfaction of the customer needs

Ans. d) Satisfaction of customer needs

49. The variable costs are the costs that are gained without considering the quantity

produced or shipped from a facility. (True/False)

Ans. False. The variable costs are the costs that are gained as a result of the quantity

produced or shipped from a facility.

50. The main objective of the ___ model is to minimize the transportation cost of

both raw materials and finished goods.

Ans. Gravity location

51. The factors such as ___, costs, and also the situations of technology change must

be considered while selecting a location. (Pick the right option)

a) Future demand

b) Cultural independence

c) Taxes

d) Workforce

Ans. a) Future demand

52. It is difficult in most of the supply chains, to change ___ than storage facilities.

Ans. Production facilities

53. The performance of the available workforce and its morale has a great impact on

the quality of life supported in the selected location. (True/ False)

Ans. True

54. The selection of international locations is often decided on the basis of___.

Ans. Tax incentives

55. Physical inventory needs to be done at least once a year, and as often as once a

month, depending on the probability of loss of items. (True/False)

Ans. True

56. The basic equation used for ordering and re-ordering goods by all firms is ___.

Ans. Economic Order Quantity

57. ___ is the total cost of holding inventory.

Ans. Carrying Cost

58. Demand forecasting involves techniques including both informal methods such

as educated guesses and quantitative methods such as the use of historical sales

data or current data from test markets. (True/False).

Ans. True

59. By combining inventory at a single location, the amount of safety stock that is

necessary for a service level ___.

a) Decreases

b) Increases

c) Remains fixed

d) Halves

Ans. a) Decreases

60. Unlike other systems, Thrive Demand Forecasting automatically detects seasonal

patterns where they exist and projects them in the forecast using proprietary

harmonic soothing science. (True/False).

Ans. True

61. ___ is designed to leverage today’s computing power, efficiently crunching the

math required to calculate fresh forecasts.

Ans. Thrive Demand Forecasting

62. Risk pooling involves the use of centralized inventory to gain benefits when

demand is higher than average at some retailers and lower than average at others.

(True/False)

Ans. True

63. Higher the ___, greater the benefit obtained from risk pooling.

Ans. Coefficient of variation

64. ___ bulk shipping has been a part of inventory management for a long time.

Ans. Bulk shipping

65. The fixed order interval models are used when the supply is uniform at uniform

intervals, such as 10 meters of cloth per week. (True/False)

Ans. True

66. The accounts department receives the invoice from the vendor. (True/False)

Ans. True

67. What are routine commodities?

Ans. Routine commodities are many standard items at a low price.

68. Leverage occurs when there is low-to-high expenditure. (True/False)

Ans. False. Leverage occurs when there is medium-to-high expenditure.

69. A ___ adds details to the mission.

a) Business strategy

b) Corporate strategy

c) Functional strategy

d) Vision

Ans. b) Corporate strategy

70. The strategic decision made by the purchasing department is considered as the

___ made in an organization.

Ans. Broader decision

71. For designing a purchase strategy, it is necessary to understand the ___ that in

turn helps to identify what purchasing has to achieve.

Ans. Business objectives

m

D. None of these

Answer-B

4. Moving goods from producer to the distributor is called as........

A. Downstream

B. Upstream

C. Horizontal stream

D. None of these

Answer-A

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI,PUNE – 45

MCQ SUb:Supply Chain Management (501) class: bbaty v sem

Prof.Maya Jadhav www.dacc.edu.in

5.Proper inventory can save the........

A. The cost

B. Labours

C. Space

D. All the above

Answer-D

6.A warehouse manager have to keep the proper updates of the...

A. Stock

B. Finance

C. Marketing

D. None of these

Answer-A

7.SCM includes..........

A. Transportation

B. Material handling

C. Storage

D. All the above

Answer-D

8.Different machineries are used for material handling......

A. Yes

B. No

C. can't say

D. None of these

Answer-A




9 ....... Plays important role in supply chain management

A. Finance

B. Marketing

C. Information system

D. None of these

Answer-C

10.In the previous era the proper attention was not given to ........

A. marketing

B. Finance

C. Supply chain management

D. Human Resource Management

Answer-C

11.Now a days organisations are paying attention supply chain management for...

A. Proper supply

B. Value addition

C. Transportation

D. All the above

Answer-D




12.In the today's competition world every organisation want give proper service to the

customers with the help of.......

A. Supply chain management

B. Retail Management

C. Sales management

D. None of these

Answer-A

13.Many times organisations cannot do .... on their own in such cases they Outsource



C. Sales management

D. None of these

Answer-A

14.Supply chain management includes..........

A. Transportation

B. Distribution

C. Material handling

D. All the above

Answer-D




15.Moving goods from suppliers to manufacturing company is part of of....

A. Marketing

B. production

C. finance

D. supply chain management

Answer-D

16. Handling material in the organisation within the production process is part of......

A. production

B. finance

C. supply chain management

D. Marketing

Answer-C

17.Keeping stock updated in the warehouse is the the function of..........



C. Sales management

D. None of these

Answer-A

18.Handling material with the help of proper instruments is also includes in......

A. production

B. finance

C. supply chain management

D. Marketing

Answer-C




19.Bulldozer can be used in the organisation for..........

A. Material handling


C. Sales management

D. None of these

Answer-A

20.An elevator is used by the construction company for.........



C. Sales management

D. None of these

Answer-A

21.A moving belt is used in assembly unit for.....



C. Sales management

D. None of these

Answer-A

22.Many times........ is not included in SCM



C. Sales management

D. None of these

Answer-A




23.Use of automatad sealing machine in a milk processing industry is.



C. Sales management

D. None of these

Answer-A

24.Movement of goods within the organisation is also part of.......



C. Sales management

D. None of these

Answer-A

25.Return of goods in case of defect is also part of..........



C. Sales management

D. None of these

Answer-A

26.Transportation services also called as.........

A. Financial

B. marketing

C. Logistics

D. none of these

Answer-C




27.If a customer return the product if it is not matching with ordered one then picking

up of the product is part of......



C. Sales management

D. None of these

Answer-A

28.Reena order for 1 dozen of mangoes but she found that mangoes are rotten does

return process is included in .



C. Sales management

D. None of these

Answer-A

29.SCM now a days providing........ To the customers

A. Transparency

B. Production

C. Storage

D. None of these

Answer-A




30.Transparency of SCM definitely helpful in building the.......... The with the

organisation

A. Infrastructure

B. Machinery

C. trust

D. None of these

Answer-C

31.For service industry like SCM bonding with..... is important

A. Manufacturers

B. customers

C. landowners

D. sellers

Answer-B

32.Information technology is helpful in improviding right.......

A. information

B. westage

C. Over production

D. Product packaging

Answer-A




33.Different......... It can be used to get connected with customers

A. Tools

B. Software packages

C. Machineries

D. None of these

Answer-B

34 ......... With the customers is very important in today's era

A. Connectivity

B. Organising

C. Productivity

D. leadership

Answer-A

35......... Customers can be helpful to make positive changes in the product

A. Connectivity

B. Organising

C. Feedback

D. leadership

Answer-C




36.Well-designed SCM always go along with the organisations......

A. Production

B. Objectives

C. Marketing

D. Finance

Answer-B

37.Pre and post inventory can be kept in the control with the help of..........

A. Production

B. Supply chain management

C. Marketing

D. Finance

Answer-B

38.Proficient supply chain management variance should be.......

A. high

B. Low

C. Medium

D. None of this

Answer-B




Unit-2

39.SCM should follow.......,,, method for working

A. Known

B. Unknown

C. standardized

D. Can't say

Answer-C

40.A fixed proper method of working which is used on day to day basis is called as.......

Method

A. day to day

B. standerdised

C. planned

D. none of these

Answer-A

41.In production process SCM have to follow the........

A. Production quality control

B. Product design

C. Product method

D. None of these

Answer-A




42.Reducing number of defective units is also included in..........

A. Finance management

B. Marketing management

C. Supply chain management

D. Human Resource Management

Answer-C

43.Reduction in wastage order affected units can reduce.... Of production

A. Efforts

B. Cost

C. Design

D. Nature

Answer-B

44.A proper material handling definitely can reduce.........

A. Production

B. westige

C. Design

D. movement

Answer-B




45.SCM always strive for to give.......... Time for the material handling

A. Maximum

B. Minimum

C. Moderate

D. can't say

Answer-B

46.Supply chain management plants are go hand in hand with organisations..........

A. Production

B. Business strategy

C. finance

D. Human resource

Answer-B

47.Supply chain management has its interface with all the.......

A. The task

B. Departments

C. Nature

D. Duty

Answer-B




48.Working as per the schedule are keeping importance of time for customer service it

challenge for......

A. Production

B. Supply chain management

C. finance

D. Human resource

Answer-B

49.Global supply chain management means providing the the products and services all

over the.........

A. Village

B. City

C. globe

D. Metropolitan

Answer-C

50.Nowadays......supply chain management is also becoming familiar

A. City

B. global

C. Metropolitan

D. None of these

Answer-B




51.The ultimate goal of SCM is......

A. High productivity

B. Cost reduction

C. Better service

D. All the above

Answer-D

52.Many time people has confusion between SCM and........

A. Finance

B. Transportation

C. Marketing

D. Human resource

Answer-B

53..... Is part of supply chain management



C. Sales management

D. None of these

Answer-A




Q54. "Quality is defined by the customer" is :

a) An unrealistic definition of quality

b) A user based definition of quality

c) A manufacturing-based definition of quality

d) A product-based definition of quality

Answer-a

55.“ Zero defects in manufacturing …”

a) is a relevant goal only in electronic assembly

b) is readily achievable in all areas

c) is the goal of TQM

d) is an unobtainable and misleading idea

Answer-c

56. A ____________ encompasses all activities associated with the flow and

transformation of goods from the raw material stage, through to the end user, as well as

the associated information flows.

a) production line

b) supply chain

c) marketing channel

d) warehouse

Answer-b




57. Which one of the following is not a typical question dealt with by an operations

managers?

a) How much capacity will be needed in the months ahead?

b) What is a satisfactory location for a new facility?

c) How to motivate employees?

d) All are typical of operations decisions.

Answer-d

58. Which of the following are not key attributes of supply chain management?

a) inventory control

b) leveraging technology

c) customer power

d) all are key attributes

Answer-d

59. Positive, long-term relationships between supply chain participants refer to:

a) Coo- petition

b) Tailored Logistics

c) Partnerships

d) Supply Chain Management

Answer-c




60. Which of the following statements is true of LEAN?

a) Lean principles focus on advanced statistical methods

b) Lean principles are separate body of knowledge

c) Lean principles have been developed over a lengthy period of time.

d) Lean principles include reducing waste.

Answer-d

61. According to the manufacturing-based definition of quality

a) “Quality is the degree of excellence at an acceptable price and the control of

variability at an acceptable cost"

b) Quality depends on how well the product fits patterns of consumer preferences

c) Even though quality cannot be defined, you know what it is

d) Quality is the degree to which a specific product conforms to standards

Answer-d

62. Cooperative supply chain relationships developed to enhance the overall business

performance of both parties is a definition of:

a) Third-party logistics

b) Supply chain collaboration

c) Dovetailing

d) Relationship marketing

Answer-b




63. Total Quality Management emphasizes

a) The responsibility of the Quality Control staff to identify and solve all qualityrelated problems

b) A commitment to quality that goes beyond internal company issues to suppliers and

customers

c) A system where strong managers are the only decision makers

d) A process where mostly statisticians get involved

Answer-a

64. "Kaizen" is a Japanese term meaning

a) A Foolproof Mechanism

b) Just-in-time (JIT)

c) A Fishbone Diagram

d) Continuous Improvement

Answer-d

65. Among the tools of TQM, the tool ordinarily used to aid in understanding the

sequence of events through which a product travels is a…

a) Pareto chart

b) Flow chart

c) Check Sheet

d) Taguchi Map

Answer-b




66..Which one of the following would not generally be considered as an aspect of

operations management?

• Work methods

• Secure financial resources

• Maintain quality

• Product or service design

Answer-b

67. The inputs to a transformation process include all of the following except

a) Material

b) People

c) Information

d) Assembly

Answer-b

68. Which came last in the development of manufacturing techniques?

a) Lean production.

b) Division of labor.

c) Mass production.

d) Interchangeable parts.

Answer-a




69. When suppliers, distributors, and customers partner with each other to improve the

performance of the entire system, they are participating in a ________

a) Channel Of Distribution

b) Value Delivery Network

c) Supply Chain

d) Supply And Demand chain

Answer-c

70. Which of the following is not an area of responsibility for a logistics manager?

a) Inventory

b) Purchasing

c) Warehousing

d) Marketing

Answer-b

71. To reduce inventory management costs, many companies use a system called

________, which involves carrying only small inventories of parts or merchandise,

often only enough for a few days of operation.

Reduction-inventory Management

Supply Chain Management

Economic Order Quantity

Just-in-time Logistics

Answer-b




72.A Supply Chain which includes the Distribution of finished products and services

a) Outbound Logistics

b) Inbound Logistics

c) Supply of Goods

d) Transportation

Answer-a

73. In a SC, Material flows in one direction while _________from in both direction

a) Process

b) Information

c) Product

d) Semi-finished Goods

Answer-b

74 does not add value to the final product?

• Jobbing processes

• Lean production processes

• Continuous processes.

• Batch processes

Answer-c

75. A supply chain is a sequence of firms that perform activities required:

a) to find products that are similar

b) to facilitate wholesalers inventory selections

c) to create synergy in their training programs

d) to create and deliver goods to consumers

Answer-d




76. Today, a growing number of firms now outsource some or all of their logistics to

________ intermediaries

a) Competitors

b) Third Party Logistics (3PL) Providers

c) Channel Members

d) Cross-functional Teams

Answer-b

77. What are the two basic types of production systems?

a) Automated and manual

b) Intermittent and non-intermittent (Continuous) process

c) Normal and continuous process

d) Continuous process and batch

Answer-c

78. What type of process would a paper mill be most likely to use?

a) Continuous flow

b) Project

c) Job shop

d) Flow shop

Answer-a




79. Which of the following is true?

a) Value is always lower than price.

b) Value is what consumers are prepared to pay.

c) Cost is always lower than price.

d) Price is always lower than value

Answer-b

80. Efficiency is defined by

a) Actual output divided by design capacity.

b) Capacity divided by utilization.

c) Effective capacity divided by actual output.

d) Actual output divided by effective capacity.

Answer-d

81. As production systems move from projects to batch production to mass production

to continuous production

a) Processes become more flexible

b) Customer involvement with the process increases

c) Products become more standardized

d) Demand volumes decrease

Answer-d

82. A big advantage of a process layout is

• Its flexibility

• Its low cost

• The ability to employ low-skilled labour

• Its high equipment utilization

Answer-a




83. Which of the following is an implication of low variety?

a) Low unit cost

b) Flexibility needed

c) High complexity

d) Matching customers specific needs

Answer-d

84. Operations typically differ in terms of volume of output, variety of output, variation

in demand or the degree of ‘visibility’ (ie, customer contact) that they give to

customers of the delivery process. Please match the following element with the most

appropriate of the above dimensions. Low unit costs are most closely matched to:-

a) Variety

b) Variation

c) Volume

d) Visibility

Answer-d

85. In a process flow chart transportation is depicted by _________?

a) A circle

b) A square

c) A triangle

d) An arrow

Answer-d




86. In a process flow chart storage of information is depicted by ________? a) A circle

b) A square

c) A triangle

d) An arrow

Answer-b

87. A useful process improvement tool to search for the root cause of a problem is the

___________ process?

a) 3 Whats

b) 4 Whos

c) 5 Whys

d) 6 Wheres

Answer-d

88. A quality criterion which can be measured is called a ___________?

a) Quality variable

b) Quality component

c) Quality attribute

d) Quality characteristic

Answer-c

89. Which of these is a quality variable for a motor car?

a) Comfort of the seating

b) Time to reach a given speed

c) Road holding ability

d) Headlights are working

Answer-a




Unit-3

90. In a materials processing operation the design capacity is defined as

_____________?

a) The Minimum Output Per Given Time.

b) The Aggregate Annual Output.

c) The Theoretical Maximum Output in A Given Time.

d) The Most Likely Output In A Given Time.

Answer-a

91. What additional factor does Overall Equipment Effectiveness take into account

which makes it more meaningful than efficiency or utilization?

a) Flexibility

b) Speed

c) Cost

d) Quality

92. Adjusting inputs to an operation so that outputs match demand is known as

____________________?

a) A level capacity strategy

b) A demand management strategy

c) A chase demand strategy

d) A yield management strategy




93. Having a 'happy hour' in a pub or restaurant is an example of which type of

capacity management?

a) A level capacity strategy

b) A demand management strategy

c) A chase demand strategy

d) A yield management strategy

Answer-d

94 In the mass production era there were 4 types of operations process; complex

project, batch production, assembly line and ____________?

a) Job shop

b) Simple project

c) Mass process

d) Continuous flow process

Answer-d

95.In a materials processing operation, which of the following process type is

associated with the highest volume and lowest variety?

a) Job shop

b) Batch process

c) Mass process

d) Continuous process

Answera




In a materials processing operation, which process is associated with the highest

variety?

a) Project

b) Job shop

c) Batch process

d) Mass production

Answer-a

96. A sequence of business and information links is called a ________?

a) Logistics network

b) Distribution network

c) Sales channel

d) Supply chain

Answer-d

97.Supply chains link operators to suppliers in _________?

a) Layers

b) Groups

c) Tiers

d) Vertical Layer

Answer-d




98.Activities which are undertaken before the final operation are termed _______

activities.

a) Upstream

b) Primary

c) Secondary

d) Downstream

Answer-d

99.In the automotive supply chain information flows in which direction?

a) Towards the end user only

b) Towards the supplier only

c) Between the end user and the operation only

d) Both towards the end user and the supplier

Answer-d

100.How do automotive companies mainly sell their new products?

a) Over the internet

b) Through retail distributers

c) Via a trade magazine

d) Directly to customers

Answer-c




101. Selecting suppliers and purchasing items is called ____?

a) Negotiation

b) Procurement

c) Contracting

d) Selection

Answer-b

102.The main benefit to an operation of having multiple sourcing is ______?

a) Consistent quality

b) Speed of delivery

c) Continuity of supply

d) Flexibility of products

Answer-d

103.Which of the following is an advantage of single sourcing?

a) Continuity of supply

b) Ability to keep prices down

c) Increased flexibility of supply

d) Lower administration cost

Answer-a

104.When an organization owns its suppliers it is known as ________?

a) Downstream supplier collaboration

b) Backward vertical integration

c) Forward vertical integration

d) Upstream supplier collaboration

Answer-b




105.Logistics is the term for which activities?

a) Procurement of raw materials

b) Distribution of goods to customers

c) Accounting for raw materials in transit

d) All of the above

Answer-d

106.The Japanese term for waste is ____________?

a) Muri

b) Kanban

c) Muda

d) Kaizen

Answer-b

107.The Japanese term “Muri” means ____________?

a) The Overburden

b) The Unevenness

c) Leveling of Production


Answer-d

108.The Japanese term “Kanban” means ____________?

a) Visual Depicts

b) Visual Cards

c) Leveling of Production


Answer-d




109.In the Japanese term “Kaizen”, “Kai” means _________?

a) Performance

b) Change

c) Improvement

d) Standards

Answer-c

110.The Japanese term “Jidoka” means ____________?

a) Manual Correction

b) Automation

c) Autonomation


Answer-c

111.Which of the following is true for supply chain management? The physical

material moves in the direction of the end of chain

Flow of cash backwards through the chain

Exchange of information moves in both the direction

All of the above

Answer-d




112.Question2 The sequence of a typical manufacturing supply chain is

Storage–Supplier–manufacturing–storage–distributor–retailer–customer

Supplier–Storage-manufacturing–storage–distributor–retailer–customer

Supplier–Storage-manufacturing– distributor–storage–retailer–customer

Supplier–Storage-manufacturing–storage– retailer–distributor–customer

Answer-b

113. The purpose of supply chain management is

provide customer satisfaction

improve quality of a product

integrating supply and demand management

All the above

Answer-d

114. Logistics is the part of a supply chain involved with the forward and reverse flow

of

Goods

Services

Cash

all of the above

Answer-d




115. Due to small change in customer demands, inventory oscillations become

progressively larger looking through the supply chain. This is known as

Bullwhip effect

Netchain analysis

Reverse logistics

Reverse supply chain

Answer-a

116.Distribution requirement planning for..

Inventory management

Distribution planning

Both ‘a’ and ‘b’

None of the above

Answer-d

117.Reverse logistics is required because

Goods are defective

Goods are unsold

The customers simply change their minds

All of the above

Answer-d




118. The process of obtaining goods or services is called

procurement.

logistics.

purchasing.

integration.

Answer-b

119.he transportation of finished goods, raw materials, or supplies is

production.

logistics.

marketing.

procurement.

Answer-b

120. Supply chain means Logistics

True

False

Can’t say

None of these

Answer-b

121. The purpose of green supply chain management is....

protect environment

Earn profit

Global business

supplying farm products

Answer-a




122. Reduction of pre & post production inventory is objective of

HR

Marketing

finance

all of the above

Answer-d

123.Supply chain management is increasingly difficult and complex due to:

The increased pace of globalization

The UK’s ageing population

Economies of scale

shortage of employees

Answer-a

124. Duty of storekeeper is...

keep updates of stock

order goods

safety of stock

all the above

Answer-a




125.Which of the following is a main reason why a supplier may not like to do

business with new business?

The quality of the supplies may not meet customer expectations

The new business may request large volumes of stock

The new business may demand reasonable prices

High failure rate of new businesses

Answer-c

126.Which of the following is the first stage in a supply chain for a chocolate

bar?

The supplier of cocoa beans

The manufacturer of the chocolate bar

Transportation between each stage of the supply chain

The retailer

Answer-a

127.Which of the following is a benefit to a business of having an efficient

procurement department?

Improved levels of customer service

Increased levels of staff motivation

Higher sales revenue

Lower unit costs

Answer-d




128.Which of the following is a benefit to a business of reducing its production

times?

It will hold less stock

It sales will increase

Its staff will be not more motivated

It could not create a competitive advantage

Answer-a

129.A business getting good value when buying products means that it will:

Always get the cheapest price

Always get the highest quality

Get the right balance between price and quality

Charge its customers the lowest price possible

Answer-c

130.There no need of SCM for organizations

False

True

Can’t say

None of these

Answer-a




Unit-4

131.SCM is having role in manufacturing

Yes

No

Can’t say

None of these

Answer-a

132.Different machines are required for material handling

Yes

No

Can’t say

None of these

Answer-a

133.Different kind of raw material is required for

Scheduling

Manufacturing

Material handling

HR

Answer-b

134.Workflow automation is necessary for

Systematic work

For making a chart

Foreclosure of work

None of these

Answer-a




135.Workflow automation means the the activities

In a proper serial and sequence

Activities together

No importance of serial

Answer-a

136.For maximum efficiency the material handling time should be

Maximum

Minimum

Can't say

None of these

Answer-b

137.Material handling means

Operating with material at the time of work in progress

Chatting material

Taking care of material

Can’t say

Answer-a

138.SCM can be helpful in material handling

To lose time

To save time

Prime time

Can’t say

Answer-a




139.System design can give a a Guideline in in working of

SCM

Production

Manufacturing

All the above

Answer-a

140........is very important for a warehouse

Manager

Space

Selves

None of these

Answer-b

141.A place where raw material is kept is called as

Goods room

Store room

Material room

shopfloor

Answer-b

142.Keeping all updates of stock is the responsibility of

Worker

Store manager

Production manager

Materials manager

Answer-b




143.Supply chain management also works in the work in progress of a product

Yes

No

Can’t say

None of these

Answer-a

144.The proper decisions taken by the warehouse manager are useful to

Supply chain management

Production management

Inventory management

All the above

Answer-a

145.Supplying finished products products to the customers is job of

Finance Management

Production management

Supply chain management

Human Resource Management

Answer-c

146.A proper strategy is necessary to be followed by store manager

To handle stock well

No need of strategy

That is duty of production manager

None of the above

Answer-a




147.Store keeper try to keep stock for minimum time

To reduce unnecessary investment

To use space efficiently

To use workers efforts efficiently

All of the above

Answer-d

148.Keeping excessive stock is is good for and Organisation

Yes

No

Can’t say

None of these

Answer-a

149.Stock management is necessary to move the stock timely

Yes

No

Can’t say

None of these

Answer-a

150.Space management is the the important task of warehouse management

Yes

No

Can’t say

None of these

Answer-a




151 positive, long-term relationships between supply chain participants refer to:

a. Co-opetitions

b. tailored logistics

c. partnerships

d. supply chain management

Answer-d

152.The goal of logistics is

A. to achieve a target level of customer service at lowest possible cost

B. to achieve targeted level of customer service.

C. increase in the market share.

D. All of the above.

Answer-d

153.In the product life cycle, the emphasis in marketing mix during growth stage is

A. Distribution.

B. Promotion.

C. Price.

D. Cost reduction.

ANSWER: A




154. In the product life cycle, the emphasis in marketing mix during maturity stage is

A. Distribution.

B. Promotion.

C. Price.

D. Cost reduction.

ANSWER: C

155. In the product life cycle, the emphasis in marketing mix during decline stage is

A. Distribution.

B. Promotion.

C. Price.

D. Cost reduction.

ANSWER: D

156. The concept of logistics has been systematically divided into

A. 2 phases.

B. 3 phases.

C. 4 phases.

D. 5 phases.

ANSWER: A

157. Michael porter explained the concept of

A. Motivation.

B. Cost advantage.

C. Competitive advantage.

D. Quest for quality.

ANSWER: C




158. EDI stands for

A. Electronic Data Interface.

B. Electronic Data Interchange.

C. Electronic Distribution Intermediary.

D. Electronic Documentation Interchange.

ANSWER: B

159. EOQ stands for

A. Electronic Ordered Quantity

B. Economic Order Quantity

C. Economic Order Quality

D. Electronic Obtained quantity

ANSWER: B

160. Packaging performs two functions. ___________ and logistics.

A. Distribution.

B. Store keeping.

C. Material handling.

D. Marketing.

ANSWER: D

161. Form utility is created by

A. Operation function.

B. Logistics function.

C. Procurement function.

D. Distribution function.

ANSWER: A




162. Place utility is created by





ANSWER: B

163. Time utility is created by





ANSWER: D

164. MRP stands for

A. Material requirement planning.

B. Manpower recruitment process.

C. Machine repair plan.

D. Mechanical re-engineering process.

ANSWER: A




165.MPS stands for

A. Manpower placement structure.

B. Master production schedule.

C. Manpower placement schedule.

D. Material processing schedule.

ANSWER: B

166. Master planning in the planning hierarchy

A. determines the direction of business.

B. creates the capacity.

C. involves the functional planning.

D. provides specification for manufacturing.

ANSWER: A

167. Master scheduling is the process that





ANSWER: B

168. Customer order processing level is that





ANSWER: D




169. Master planning deals with

A. customer interface.

B. marketing interface.

C. supplier interface.

D. manufacturing interface.

ANSWER: C

170. The service mission of logistics

A. reflect the vision of top management.

B. deal with basic services required for delivering of goods.

C. refers to the value-added services offered.

D. reflects the ability of firm to exploit market.

ANSWER: D

171. Firm infrastructure is __________ in the generic value chain of logistics

A. a support activity.

B. a primary activity.

C. not an activity.

D. the only activity.

ANSWER: A




Unit-5

172. Inbound and outbound logistics is _________ in the generic value chain of

logistics.



C. not an activity.


ANSWER: B

173. HRM is _________ in the generic value chain of logistics.



C. not an activity.


ANSWER: C

174. Marketing and sales is ___________ in the generic value chain of logistics.



C. not an activity.


ANSWER: B




175. Competitive advantage can be created and achieved by logistics managers by

A. cost advantage.

B. Quality.

C. value advantage.

D. cost and value advantage.

ANSWER: D

176. Real time communication of information regarding requirements and availability

of logistics service is the core of

A. right response.

B. right quality.

C. right quantity.

D. right value.

ANSWER: A

177. The maintenance of a minimum possible level of inventory required for a desired

level of customer service is the objective of

A. right response.

B. right quality.

C. right quantity.

D. right value.

ANSWER: C




178. The logistical objective that ensures a proper balance between total logistics cost

and a desired level of customer service performance is

A. right response.

B. right quality.

C. right cost trade off.

D. right information.

ANSWER: C

179. Just in time is a practice followed in

A. Japan.

B. America.

C. Britain.

D. China.

ANSWER: A

180. The term which covers the operation of shifting the cargo to or from the vessel is

A. Rigging.

B. Slinging.

C. Carnage.

D. Forced discharge.

ANSWER: B




181. The term used for loading or unloading of heavy cargo is

A. Rigging.

B. Carnage.

C. Slinging.

D. Forced discharge.

ANSWER: B

182. The term used for carriage of goods when points of origin and destination are both

within the sovereignty of UK is

A. ULD.

B. Classification rate.

C. Valuation charge.

D. Cabotage.

ANSWER: D

183. The delivery of a damaged product has

A. An increase in its value.

B. A decrease in its value.

C. No change in its value.

D. Better demand.

ANSWER: B




184. The flow of work in process is

A. From a supplier to producer.

B. From the last production price to ultimate user.

C. Between the various production sub-system.

D. Between the various distribution channels.

ANSWER: C

185. The flow of information that facilitates co-ordination activities is

A. Forward information flow.

B. Backward information flow.

C. Upward information flow.

D. Downward information flow.

ANSWER: B

186. Unreliability of vendors leads to

A. Production uncertainty.

B. Process uncertainty.

C. Demand uncertainty.

D. Supply uncertainty.

ANSWER: D

187. The internal process leads to





ANSWER: B




188. The uncertainty that could be reduced through forecasting techniques is





ANSWER: C

189. The number of stages that the goods and services flow through

A. Add to the complexity of SCM.

B. Relaxes the complexity of SCM.

C. Brings no change in complexity of SCM.

D. Ensures better quality.

ANSWER: A

190.The business activity of farming out identified non-core activities to external

agencies is

A. Logistics.

B. SCM.

C. Outsourcing.

D. Distribution.

ANSWER: C




191. The warehousing function that combines the logistical flow of several small

shipments to a specific market area is

A. Break bulk function.

B. Operational function.

C. Stockpiling function.

D. Consolidation function.

ANSWER: D

192. Cash on delivery method is normally used for

A. Bulk cargo with immediate market. B. Slow moving items.

C. Small but valuable items sent by post.

D. Exports to countries with balance of payments problems.

ANSWER: C

193. An appropriate strategy to achieve timely, accurate, paperless information flow is:

A. integrate this activity into all supply chain planning.

B. efficient store assortments.

C. revision of organization processes supported by information systems.

D. efficient replacement.

ANSWER: C

194. An appropriate strategy to maximize efficiency of promotions is:

A. revision of organization processes supported by information systems.

B. efficient store assortments..

C. integrate this activity into all supply chain planning.


ANSWER: C




195. An appropriate strategy to optimize for time and cost in the ordering process is:

A. efficient store assortments.

B. revision of organization processes supported by information systems.



ANSWER: D

196. An appropriate strategy to optimize the productivity of retail space and inventory

is:

A. efficient store assortments.

B. revision of organization processes supported by information systems.



ANSWER: A

197. The upstream supply chain is:

A. exclusively inside an organization.

B. involved with procurement of material from suppliers.

C. the distribution of products or delivery of services to customers.

D. both the first and third answer above.

ANSWER: B




198. The downstream supply chain is:

A. exclusively inside an organization.

B. involved with procurement of material from suppliers.

C. the distribution of products or delivery of services to customers.

D. both the first and third answer above.

ANSWER: C

199. The correct sequence of an organizations supply chain from a systems perspective

is:

A. transformation process, delivery to customers, acquisition of resources.

B. transformation process, acquisition of resources, delivery to customers.

C. acquisition of resources, transformation process, delivery to customers.

D. delivery to customers, acquisition of resources, transformation process.

ANSWER: C

200. ______ offers the opportunity to buy direct from the supplier with reduced costs

and shorter cycle.

A. Reintermediation

B. Countermediation

C. Contramediation

D. Disintermediation

ANSWER: D

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Supply Chain Management Multiple Choice Questions and Answers