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Postgraduate Diploma in
SUPPLY CHAIN MANAGEMENT SCMExam 01 Sample Paper
Session: March 20XX
Instructions
1. Time allowed: 2:30 hours.
2. Answer from each section as directed
3. Marks for each section is shown within brackets .
4. No books, dictionaries, notes or any other written materials are allowed in this examination .
5. All your answers to the multiple choice questions must be ticked on the question paper.
6. Before you start the examination, check that your answer sheet is free from printing
defects, i.e. misaligned contents, faded print, missing print, repetitive defects, smeared or
smudged. Ask the invigilator to replace your answer sheet if it has printing defects.
7. Read each question carefully. Using a ball-point pen tick the appropriate answer
corresponding to the letter of the correct answer
8. For MCQ, tick only ONE option for EACH question. If more than one options are ticked for
a single question, your answer for that question will be invalid. An incorrect mark may
produce improper results during marking.
9. Rough calculations may be shown separate paper. If required, ask for separate paper to
the invigilator.
10. Candidates who break BiMSregulations or commit any misconduct will be disqualified from
the examinations.
11. Question papers must not be removed from the Examination Hall .
12. Total Marks: 100
To be filled-up by the examinee
To be completed by the invigilator
Student ID Batch
Student Name
Signature
Signature of the invigilator
Date and time of the
examination
PGDSCM Question Set 1
Page 2 of 9
Section A: True/False Questions 25 x 1 = 25 Marks
Please identify each statement as True or False by giving tick in the appropriate box
1) A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer request.
True False
2) In a manufacturing organisation, supply chain includes functions involved in
receiving a customer request only.
True False
3) Supply chain success should be measured in terms of the profits at an individual
stage and not in terms of supply chain profitability. True False
4) Effective supply chain management involves the management of supply chain
assets and product, information, and fund flows to maximise total supply chain
profitability.
True False
5) There are four intrinsic flows of a supply chain.
True False
6) Every supply chain does not have the finance or money flow.
True False
7) The failure of many e-businesses such as Webvan and Kozmo can be attributed to
their inability to design appropriate supply chains or manage supply chain flows
effectively.
True False
8) The supply chain's configuration determined in the strategic phase is fixed.
True False
9) The time horizon in Supply Chain Operation phase is quarter to year.
True False
10) All supply chain processes can be broken down into the following four process
cycles.
True False
11) With push processes, execution is initiated in anticipation of customer orders.
True False
12) Pull processes operate in an uncertain environment
True False
PGDSCM Question Set 1
Page 3 of 9
13) The value chain in a company begins with marketing and sales, which creates
specifications for the product.
True False
14) Each functional strategy must support other functional strategies and help a firm
reach its competitive strategy goal.
True False
15) Responsiveness comes at a cost.
True False
16) Primary goal of Efficient Supply Chains is to supply demand at the lowest cost.
True False
17) Pricing strategy of Responsive Supply Chains is to keep margin higher.
True False
18) Supplier strategy of Efficient Supply Chains is to select supplier based on speed,
flexibility, reliability, and quality.
True False
19) There is no right supply chain strategy for a given competitive strategy.
True False
20) There is no supply chain strategy that is always right.
True False
21) The two major types of facilities are production sites and operational sites.
True False
22) Changing inventory policies can not alter the supply chain's efficiency and
responsiveness.
True False
23) Sourcing decisions affect both the responsiveness and efficiency of a supply chain.
True False
24) Pricing affects the behaviour of the buyer of the good or service but does not
affect the supply chain performance.
True False
25) Locating facilities close to customers increases the number of facilities needed and
consequently reduces efficiency.
True False
PGDSCM Question Set 1
Page 4 of 9
Section B: MCQ 25 x 1 = 25 Marks
Please identify most appropriate answer by giving tick in the appropriate number
26) How does the stages of supply chain connected with?
a) Each stage in a supply chain is connected through heavy wares
b) Each stage in a supply chain is connected with nuts and bolts
c) Each stage in a supply chain is connected through the flow of products,
information, and funds
d) Each stage in a supply chain is connected with heavy chains
27) What should be the objective of a supply chain?
a) The objective of every supply chain should be to maximise the overall value
generated
b) The objective of every supply chain should be to maximise the efficiency of
work
c) The objective of every supply chain should be to maximise the revenue of
the organisation
d) The objective of every supply chain should be to maximise the profits at an
individual stage
28) What is necessary to understand the boundary of supply chain?
a) One needs to understand the material flows of a supply chain
b) One needs to understand the intrinsic flows of a supply chain
c) One needs to understand the information flows of a supply chain
d) One needs to understand the finance flows of a supply chain
29) ______________means that the material flow that run through the supply chain
changes its ownership from one company to another, from supplier to buyer.
a) Material flows
b) Commercial flows
c) Information flows
d) Finance flows
30) What time frame is more appropriate for Supply Chain Planning phase?
a) Five years
b) A quarter to a year
c) Less than three months
d) Weekly or daily
31) What time frame is more appropriate for Supply Chain Operation?
a) Five years
b) A quarter to a year
c) Less than three months
d) Weekly or daily
32) Given the five stages of a supply chain all supply chain processes can be broken
down into the four process cycles. Which of the following is not the process cycle?
a) Customer order cycle
b) Replenishment cycle
c) Sales cycle
d) Procurement cycle
PGDSCM Question Set 1
Page 5 of 9
33) A push/pull view of the supply chain is very useful when considering strategic
decisions relating to_________________.
a) Supply chain design
b) Supply chain process
c) Supply chain stages
d) Supply chain engineering
34) Which of the following in not the core processes or functions of a value chain?
a) Marketing and sales
b) Operations
c) Distributions
d) Human resources
35) Which of the following is the core processes or functions of a value chain?
a) Marketing and sales
b) Accounting
c) Information Technology
d) Human Resources
36) Which of the following specifies the portfolio of new products that a company will
try to develop?
a) A product development strategy
b) A marketing and sales strategy
c) A supply chain strategy
d) A Value chain strategy
37) Why a company may NOT fail?
a) Because of a lack of strategic fit
b) Because it’s overall supply chain design and processes do not provide the
capabilities to support the desired strategic fit.
c) Because it’s resources do not provide the capabilities to support the desired
strategic fit.
d) Because experienced CEO left the company
38) Which of the following is not the basic step to achieve the strategic fit?
a) Understanding the Customer and Supply Chain Uncertainty
b) Understanding the Supply Chain Capabilities
c) Achieving Strategic Fit
d) Understanding the Customers and Suppliers
39) Which of the following is a logistical driver of Supply Chain Structure?
a) Facilities
b) Pricing
c) Information
d) Sourcing
40) Which of the following is a cross-functional driver of Supply Chain Structure?
a) Facilities
b) Inventory
c) Transportation
d) Sourcing
PGDSCM Question Set 1
Page 6 of 9
41) ______________________ measures the maximum amount a facility can process.
a) Capacity
b) Utilisation
c) Flow time efficiency
d) Product variety
42) Which of the following is not the component of a facilities decision?
a) Role
b) Location
c) Capacity
d) Condition
43) Which of the following measures the average transportation cost of each incoming
delivery?
a) Average inbound transportation cost per shipment
b) Average outbound transportation cost
c) Average incoming shipment size
d) Average inbound transportation cost
44) Which of the following measures the average number of units or dollars on each
outbound shipment at a facility.
a) Average inbound transportation cost
b) Average outbound transportation cost
c) Average incoming shipment size
d) Average outbound shipment size
45) Which of the following is NOT a component of information decision in Supply
Chain Management?
a) Push Versus Pull
b) Controlling
c) Forecasting and Aggregate Planning
d) Enabling Technologies
46) ______________________allows companies to place instantaneous, paperless purchase
orders with suppliers.
a) Electronic data interchange (EDI)
b) Internet
c) Enterprise resource planning (ERP)
d) Radio frequency identification (RFID)
47) Which of the following measures the difference between the forecast and actual
demand?
a) Forecast error
b) Seasonal factors
c) Forecast horizon
d) Frequency of update
48) Which of the following is a component of sourcing decision in Supply Chain
Management?
a) Role
b) Location
c) Capacity
d) Supplier Selection
PGDSCM Question Set 1
Page 7 of 9
49) ________________measures the average time between when an order is placed and
the product arrives.
a) Supply lead time
b) Fraction on-time deliveries
c) Average purchase quantity
d) Supply quality
50) Which of the following is not an obstacle to achieving strategic fit?
a) Increasing variety of products
b) Decreasing product life cycles
c) Increasingly demanding customers
d) Improved technology
Section C: Filling the gap 25 x 2 =50 Marks
Please write the most appropriate answer in the given space for each question
51) During Supply Chain Strategy or Design phase, given the marketing and pricing
plans for a product, a company decides
___________________________________________________.
52) Pull processes are initiated by a customer order, whereas push processes are
initiated and performed by __________________________________.
53) A company's competitive strategy defines, relative to its competitors,
_____________________________________________________________
54) A product development strategy specifies the portfolio of new products that a
company will try to develop. It also dictates whether the development effort
______________________
55) A supply chain strategy determines
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
______________________________________________________________________________________
56) Strategic fit means
________________________________________________________________________________________
__________________________________________________________
57) A company may fail either because of a lack of strategic fit or because
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
58) There are three basic steps to achieving this strategic fit:
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
____________________________
PGDSCM Question Set 1
Page 8 of 9
59) Supply chain responsiveness includes a supply chain's ability to
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
_____________
60) The cost-responsiveness efficient frontier is the curve
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
61) The first step in achieving strategic fit is
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
62) Primary goal of Responsive Supply Chains is to
________________________________________________________________________________________
63) Product design strategy of Efficient Supply Chains is to
_________________________________________________________________________
64) Lead-time strategy of Responsive Supply Chains is to
_________________________________________________________________________
65) Scope of strategic fit refers
________________________________________________________________________________________
__________________________________________________________
66) Agile intercompany scope refers to
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
67) Facilitiesare defined as
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
68) the logistical and cross-functional drivers of supply chain performance
are_____________________________________________________________________________________
________________________________________________________________________________________
____________________________________________
69) Information consists of
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
70) Sourcing is the
________________________________________________________________________________________
__________________________________________________________
71) Facility Related Metrics- Utilisation, measures
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
PGDSCM Question Set 1
Page 9 of 9
72) Theoretical flow/cycle time of production measures
________________________________________________________________________________________
________________________________________________________________________________________
___________________________________________
73) Product variety measures
________________________________________________________________________________________
__________________________________________________________
74) Key components of transportation that companies must
analyse________________________________________________________________________________
________________________________________________________________________________________
_____________________________________________
75) Many technologies exist to share and analyse information in the supply chain.
Some of these technologies include
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
____________________
PGDSCM Question Set 1
Page 10
Answer for Questions
1. True
2. False
3. False
4. True
5. True
6. False
7. True
8. True
9. False
10. True
11. True
12. False
13. False
14. True
15. True
16. True
17. True
18. False
19. False
20. True
21. False
22. False
23. True
24. False
25. True
26. C
27. A
28. b
29. b
30. b
31. D
32. C
33. a
34. d
35. a
36. a
37. d
38. d
39. a
40. d
41. a
42. D
43. a
44. d
45. b
PGDSCM Question Set 1
Page 11
46. a
47. a
48. d
49. a
50. d
Question Ans for the blank space
51. ……how to structure the supply chain over the next several years
52. seller in anticipation of customer orders.
53. the set of customer needs that it seeks to satisfy through its products
and services.
54. will be made internally or outsourced.
55. the nature of procurement of raw materials, transportation of materials
to and from the company, manufacture of the product or operation to
provide the service, and distribution of the product to the customer,
along with any follow-up service and a specification of whether these
processes will be performed in-house or outsourced.
56. that both the competitive and supply chain strategies have aligned
goals.
57. its overall supply chain design, processes, and resources do not
provide the capabilities to support the desired strategic fit.
58. a. Understanding the Customer and Supply Chain Uncertainty
b. Understanding the Supply Chain Capabilities
59. Respond to wide ranges of quantities demanded
Meet short lead times
Handle a large variety of products
Build highly innovative products
Meet a high service level
Handle supply uncertainty
60. showing the lowest possible cost for a given level of responsiveness.
61. to assign roles to different stages of the supply chain that ensure the
appropriate level of responsiveness.
62. Respond quickly to demand
63. Maximise performance at a minimum product cost
64. Reduce lead time aggressively, even if the costs are significant
65. to the functions within the firm and stages across the supply chain that
devise an integrated strategy with a shared objective.
66. a firm's ability to achieve strategic fit when partnering with supply
chain stages that change over time.
67. the actual physical locations in the supply chain network where
product is stored, assembled, or fabricated.
68. facilities, inventory, transportation, information, sourcing, and pricing.
69. data and analysis concerning facilities, inventory, transportation, costs,
prices, and customers throughout the supply chain.
PGDSCM Question Set 1
Page 12
70. choice of who will perform a particular supply chain activity such as
production, storage, transportation, or the management of
information.
71. the fraction of capacity that is currently being used in the facility.
72. the time required to process a unit if there are absolutely no delays at
any stage.
73. the number of products/product families processed in a facility.
74. Design of Transportation Network
Choice of Transportation Mode
75. Radio frequency identification (RFID); Supply chain management (SCM)
software; Enterprise resource planning (ERP) systems; The Internet
Electronic data interchange (EDI)
