300+ TOP Supply Chain & Logistics Management MCQs and Answers

Supply Chain & Logistics Management Multiple Choice Questions

1. A supply chain which includes the distribution of finished product and service?
A. Outbound logistics

B. Inbound logistics

C. Supply of goods

D. Transportation

Answer:
A.Outbound logistics

2. What additional factor does overall equipment effectiveness take into account which makes it moremeaningful than efficiency or utilization?
A. Flexibility

B. Speed

C. Cost

D. Quality

Answer:
A.Flexibility

3. Which of the following is true for supply chain management?
A. The physical material moves in the direction of the end of chain.

B. Flow of the cash backward through the chain.

C. Exchange of information moves in both the direction.

D. All the above

Answer:
D.All the above

4. The purpose of supply chain management is
A. Provide customer satisfaction

B. Improve quality of a product

C. Integrating supply and demand management

D. Increasing production

Answer:
C.Integrating supply and demand management

5. VMI stands for
A. Vendor material inventory

B. Vendor managed inventory

C. Variable material inventory

D. Valuable material inventory

Answer:
B.Vendor managed inventory

6. The major decision areas in supply chain management are
A. Location, production, distribution, inventory

B. Planning, production, distribution, inventory

C. Location, production, scheduling, inventory

D. Location, production, distribution, marketing

Answer:
A.Location, production, distribution, inventory

7. Logistics is the part of supply chain involved with the forward and reserve flow of
A. Goods

B. Service

C. Cash

D. All of these

Answer:
D.All of these

8. Reserve logistics is required because
A. Goods are defective

B. Goods are unsold

C. The customer simply change their minds

D. All of the above

Answer:
D.All of the above

9. 3-PL stands for
A. Three points logistics

B. Third party logistics

C. Three points location

D. None of the above

Answer:
B.Third party logistics

10. The supply concept originated in what discipline?
A. Marketing

B. Operations

C. Logistics

D. Production

Answer:
A.Marketing

11. Qualified 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:
B.A user based definition of quality

12. The supply chain management philosophy emerged in…………..
A. 1960’s

B. 1970’s

C. 1980’s

D. 1990’s

Answer:
D.1990’s

13. Positive, long term relationships between supply chain participants refers to
A. Co-operation

B. Tailor logistics

C. Partnership

D. Supply chain management

Answer:
D.Supply chain management

14. The input to a transformation process include all of the following except
A. Material

B. People

C. Information

D. Assembly

Answer:
D.Assembly

15. 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.Is the goal of TQM

16. Which of the following is not an area responsibility for a logistic manager
A. Inventory

B. Purchasing

C. Warehousing

D. Marketing

Answer:
B.Purchasing

17. Which came last in the development of manufacturing techniques?
A. Learn production

B. Division of labor

C. Mass production

D. Interchangeable parts

Answer:
D.Interchangeable parts

18. Which one of the following would not generally be considered as an aspect of operations management?
A. Work methods

B. Secured financial resources

C. Maintain quality

D. Product or service design

Answer:
B.Secured financial resources

19. Inspection, scarp, and repair are example of
A. Internal cost

B. External cost

C. Cost of dissatisfaction

D. Warranty & service cost

Answer:
B.External cost

20. All the following costs are likely to decrease a result of better quality except
A. Customer dissatisfaction

B. Maintenance cost

C. Scrap cost

D. Warranty and service cost

Answer:
B.Maintenance cost

21. Which came last in the development of manufacturing process
A. Lean production

B. Division of labor

C. Mass production

D. Craft production

Answer:
B.Division of labor

22. Which of the following is not a typical supply chain member?
A. Retailer

B. Wholesaler

C. Producer

D. Customer

Answer:
D.Customer

23. A supply chain includes the chain of entities involved in the planning, procurement, production and………….. of products and services
A. Distribution

B. Supply

C. Demand

D. Transport

Answer:
A.Distribution

24. Companies manage their supply chain through…………..
A. Information

B. Competitor

C. Internet

D. Skilled operator

Answer:
C.Internet

25. Lean production involves
A. Improvement of speed only

B. Improvement of quality only

C. Elimination of all types of waste

D. Elimination of cost only

Answer:
C.Elimination of all types of waste

26. Which of the following is not a factor affecting the supply chain?
A. Reduced number of suppliers

B. Increased competition

C. Longer product life cycle.

D. Increased opportunities to strategically use technology

Answer:
C.Longer product life cycle.

27. TQM refers to
A. Total quantity management

B. Total quality management

C. Total quality marketing

D. Total quotient management

Answer:
B.Total quality management

28. …………… includes design and administration of system to control the flow of materials, work in progress and finished inventory to support business unit strategy
A. Logistics management

B. Materials management

C. Bills of materials

D. None of these

Answer:
A.Logistics management

29. ………….. and physical distribution are the two major operations of logistics
A. Supply chain management

B. Material management

C. Logistics management

D. None of these

Answer:
B.Material management

30. Buying according to the requirements is called …………..
A. Seasonal buying

B. Hand to mouth buying

C. Scheduled buying

D. Tender buying

Answer:
B.Hand to mouth buying

31. Getting the right goods to the right location at the right time for the least cost is known as
A. Market facilities

B. Market logistics

C. Market distribution

D. None of the above

Answer:
B.Market logistics

32. ………….. are meant to store products for moderate to long period of time
A. Storage warehouses

B. Distribution warehouses

C. Automated warehouses

D. None of the above

Answer:
A.Storage warehouses

33. ………….. uses advanced materials handling systems under the direction of a central computer
A. Storage warehouses

B. Distribution warehouses

C. Automated warehouses

D. None of the above

Answer:
C.Automated warehouses

34. …………….. encompasses all activities associated with the flow and transformation of goodsfrom the raw materialstage, 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.Supply chain

35. Which of the following is not one of the process in the SCOR model
A. Sell

B. Plan

C. Make

D. Return

Answer:
A.Sell

36. According to Professor Mentzer and colleages, the supply chain concept originated in what discipline?
A. Marketing

B. Operations

C. Logistics

D. Production

Answer:
C.Logistics

37. ………….. is the provision of service to customers before, during and after a purchase
A. Customer service

B. Product management

C. Purchase management

D. None of the above

Answer:
A.Customer service

38. “Kaizen” is a Japanese term meaning
A. A fool proof mechanism

B. Just in time (JIT)

C. A fishbone diagram

D. Continuous improvement

Answer:
D.Continuous improvement

39. The most common form of quality control includes:
A. Planning

B. Organizing

C. Inspection

D. Directing

Answer:
C.Inspection

40. When suppliers, distributors, and customers collaborate 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:
B.Value delivery network

41. A supply chain is a sequence of firms that performance 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.To create and deliver goods to consumers

42. Intermediaries play an important role in matching ………….
A. Dealer with customer

B. Manufacture to product

C. Information & promotion

D. Supply & demand

Answer:
D.Supply & demand

43. Today, a growing number of firms now out source some or all of their logistics to ……………intermediaries
A. Competitors

B. Third party logistics providers

C. Channel members

D. Cross functional teams

Answer:
C.Channel members

44. What technique deal with the problem of supply sufficient facilities to production lines or individuals that require uneven service?
A. Supply-demand theory

B. PERT

C. Inventory theory

D. Queing theory

Answer:
D.Queing theory

45. A type of logistics costing
A. Consumer costing

B. Employee costing

C. Activity costing

D. None of these

Answer:
C.Activity costing

46. Supply chain management is increasingly difficult and complex due to:
A. Increased pace of globalization

B. Population

C. Economies of scale

D. Improvements in communication system

Answer:
A.Increased pace of globalization

47. The time difference between a business ordering and receiving stock is called the
A. Recorder quantity

B. Lead time

C. Buffer stock

D. Recorder level

Answer:
B.Lead time

48. The business term that involves choosing a supplier, agreeing what to buy at a certain price and by when is called?
A. Logistics

B. Supply chain management

C. Stock control

D. Procurement

Answer:
D.Procurement

49. Procurement methods have considerable impact on……………
A. Product pricing

B. Inventory level

C. Warehouse space

D. Transportation modes

Answer:
B.Inventory level

50. AITS in inventory controls means……………
A. All Inventory Transport System

B. Automated Inventory Tracking and System

C. Alternative Inventory Trading System

D. Adoption of Inventory Tracing Storage

Answer:
B.Automated Inventory Tracking and System

51. Expand SPC
A. Standard process control

B. Statistical performance control

C. Standard production control

D. Statistical production control

Answer:
C.Standard production control

52. Which of the following is not included in the logistic costs?
A. Storage of material and waste

B. External and internal transport

C. Storage of semi-finished products

D. None of these

Answer:
D.None of these

53. Which cost element is included in inventory holding?
A. Service cost

B. Risk cost

C. Storage cost

D. All of these

Answer:
D.All of these

54. Which of the following is considered as fixed cost for supply chain costing?
A. Driver salary

B. Depreciation of vehicle

C. Warehouse building property tax

D. All of these

Answer:
D.All of these

55. Which of the following is not included in logistics costs?
A. Storage of material and waste

B. External and internal transport

C. Storage of semi-finished products

D. None of these

Answer:
D.None of these

56. What refers to the distance to and from a delivery zone?
A. Drop distance

B. Stem distance

C. Petal distance

D. None of these

Answer:
B.Stem distance

57. Which logistics net work modeling technique, is often referred to a “rule of thumb”?
A. Optimization modeling

B. Simulation models

C. Heuristic model

D. None of these

Answer:
C.Heuristic model

58. Which of the following document is a contract between the owner of goods and carrier (as withdomestic shipments)?
A. Consular invoice

B. Commercial invoice

C. Certificate of value

D. Bill of lading

Answer:
D.Bill of lading

59. What is included in the product segmentation while undertaking supply chain segmentation?
A. Size

B. Temperature regime

C. Hazard

D. All of these

Answer:
D.All of these

60. Which phase of supply chain design process, decides on which market will be supplied fromwhich locations?
A. Supply chain strategy

B. Supply chain planning

C. Supply chain operation

D. None of these

Answer:
B.Supply chain planning

61. Which aggregate planning strategy, involves a stable machine capacity and workforce aremaintained with a constant output rate?
A. Chase strategy

B. Flexibility strategy

C. Level strategy

D. None of these

Answer:
A.Chase strategy

62. Which of the following is not a part of logistics?
A. Production scheduling

B. Replenishment

C. Procurement

D. Meandering

Answer:
D.Meandering

63. Which of the following transportation modes used for digital products?
A. Raid

B. Truck

C. Air

D. Internet

Answer:
D.Internet

64. Non destructive methods of inspecting and identify goods in transportation systems is called
A. Radiography

B. Cargo scanning

C. Produce inspection

D. Goods verification

Answer:
B.Cargo scanning

65. The word ‘logistics’ is derived from the French word …………..
A. Logic

B. Logger

C. Longer

D. Logos

Answer:
B.Logger

66. Logistics is typically considered as a subset of ……………
A. Marketing

B. Supply chain management

C. Human resource management

D. None of these

Answer:
B.Supply chain management

67. CPFR stands for
A. Collection Planning Forecasting and Replacement

B. Collaborative Planning Forecasting and Reflective

C. Collaborative Planning Forecasting and Replacement

D. Collaborative Planning Forecasting and Replenishment

Answer:
D.Collaborative Planning Forecasting and Replenishment

68. 4PL stands for
A. Fourth Party Logistic Provider

B. Four Point Logistics Provider

C. Location Provider

D. None of these

Answer:
A.Fourth Party Logistic Provider

69. Integrated logistics systems included
A. Materials management

B. Materials flow systems

C. Physical distribution supported by information technology

D. All of the above

Answer:
C.Physical distribution supported by information technology

70. A supply chain is made up of a series of process that involve an input, a ………….., and anoutput
A. Shipment

B. Supplier

C. Customer

D. Transformation

Answer:
D.Transformation

71. “3PL”involves using a supplier to provide …………….service
A. Marketing

B. Design

C. Logistics

D. Contract manufacture

Answer:
C.Logistics

72. ………….. is a tool to chart how individual process are currently be conducted and to help layout to new improve process
A. Process mapping

B. Pareto charting

C. Supply chain design

D. Design chain mapping

Answer:
A.Process mapping

73. …………..are the products that emerge when new products arrive to replace old products
A. Innovative products

B. Replacement products

C. Imitative products

D. All of these

Answer:
B.Replacement products

74. ………… was the first kind of packaging Materials used in the history
A. Basket

B. Glass

C. Metal

D. None of these

Answer:
A.Basket

75. Which of the following is not an input into logistics
A. Land

B. Competitive advantage

C. Facilities

D. Equipment

Answer:
B.Competitive advantage

76. …………. is referred as professional working in the field of logistics management?
A. Manager

B. Warehouse man

C. Logistician

D. None of these

Answer:
C.Logistician

77. What is the primary objective for material management?
A. Efficient materials planning

B. Maintaining good supplier and customer relationship

C. Supply and distribution of materials

D. All of these

Answer:
B.Maintaining good supplier and customer relationship

78. Which of the following is not a function of wholesaler?
A. Stock holding

B. Sub distribution

C. Promotion

D. None of these

Answer:
D.None of these

79. The length of time for which sellers extend credit terms to buyers is known as ………….
A. Marker

B. Dating

C. Buying

D. Price tag

Answer:
B.Dating

80. Where production logistics is primarily applied?
A. Manufacturing plants

B. Ware houses

C. Stock rooms

D. None of these

Answer:
A.Manufacturing plants

81. …………describesthe process of logistics within the industry
A. Management logistics

B. Production logistics

C. Logisticians

D. None of these

Answer:
B.Production logistics

82. …………. Is referred as a professional working in the field of logistic management?
A. Manager

B. Ware house man

C. Logistician

D. None of these

Answer:
C.Logistician

83. A systematic process for originating, developing and evaluating new product ideas is known as ………….
A. Marketing research

B. Product planning & development

C. Market forecast

D. All of these

Answer:
B.Product planning & development

84. …………. refers to the process of having the right item in the right quantity at the right time atthe right place for the right condition to the right customers
A. Business logistics

B. Engineering logistics

C. Management logistics

D. None of these

Answer:
D.None of these

85. It has been believed that the concept of the logistics originated from the …………..
A. Government

B. Military

C. People

D. None of these

Answer:
B.Military

86. What is the primary function of a logistician
A. Inventory management

B. Selling

C. Packing

D. None of these

Answer:
A.Inventory management

87. Which of the following is an output of logistics
A. Land

B. Facilities

C. Competitive advantage

D. Equipment

Answer:
C.Competitive advantage

88. A company’s channel decisions directly affect every ……………
A. Marketing decision

B. Employee in the channel

C. Competitor’s action

D. Channel member

Answer:
A.Marketing decision

89. What does ROP expands to
A. Repeat Order Quantity

B. Reorder Quantity

C. Reorder-Point

D. Repeat Order Point

Answer:
C.Reorder-Point

90. The objectives of logistics is
A. Rapid response

B. Consolidated movement

C. Create visibility

D. All of these

Answer:
D.All of these

91. 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 afew days of operation
A. Reduction inventory management

B. Supply chain management

C. Economic order quantity

D. Just in time logistics

Answer:
D.Just in time logistics

92. In a supply chain, material flows in one direction while ………….. from in both direction
A. Process

B. Information

C. Product

D. Semi-finished goods

Answer:
B.Information

93. Today, a growing number of firms now out source some or all of there logistics to ……………. Intermediaries
A. Competitors

B. Third party logistics providers

C. Channel members

D. Cross functional team

Answer:
B.Third party logistics providers

94. What are the two basic type of the production system?
A. Automated & manual

B. Intermittent & non –intermittent process

C. Normal and continuous process

D. Continuous process and batch

Answer:
B.Intermittent & non –intermittent process

95. 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.Actual output divided by effective capacity

96. A big advantage of process layout is
A. It is flexibility

B. It low cost

C. The ability to employee low skilled labor

D. It is a high equipment utilization

Answer:
D.It is a high equipment utilization

97. Selecting suppliers and purchasing item is called …………..
A. Negotiation

B. Procurement

C. Contracting

D. Selection

Answer:
B.Procurement

98. The purpose of supply chain management is…………….
A. provide customer satisfaction

B. improve quality of a product

C. Integrating supply and demand management

D. increase production

Answer:
A.provide customer satisfaction

99. Logistics is the part of supply chain involved with the forward and reverse flow of
A. goods

B. services

C. cash

D. all of the above

Answer:
D.all of the above

100. .The major decision areas in supply chain management are
A. planning, production ,distribution, inventory

B. Location, production, scheduling ,inventory

C. location ,production ,inventory

D. location ,production, distribution, marketing

Answer:
A.planning, production ,distribution, inventory

101. Distribution requirements planning is a system for
A. inventory management

B. distribution planning

C. both ‘a’ and ‘b’

D. none of the above

Answer:
C.both ‘a’ and ‘b’

102. Reverse logistics is required because
A. goods are defective

B. goods are unsold

C. the customer simply change their minds

D. all of the above

Answer:
D.all of the above

103. PL stands for
A. three points logistics

B. third party logistics

C. three points location

D. none of the above

Answer:
B.third party logistics

104. What are the elements of logistics system ?
A. transportation

B. warehousing

C. inventory management

D. all of the above

Answer:
D.all of the above

105. Logistics system are made up of 3 main activities.
A. order processing

B. inventory management

C. both ‘a’ and ‘b’

D. none of these

Answer:
C.both ‘a’ and ‘b’

106. E-logistics features :
A. every modification is logged

B. advanced search capabilities

C. both ‘a’ and ‘b’

D. none of these above

Answer:
C.both ‘a’ and ‘b’

107. Which is not a part of basic systems of codification?
A. alphabetical system

B. numerical system

C. colour coding system

D. none of these above

Answer:
D.none of these above

108. …………………… and physical distribution are the two major operations of logistics .
A. supply chain management

B. material management

C. logistics management

D. all of the above

Answer:
B.material management

109. Which of the following is not a component of 4 PL?
A. control room

B. resource providers

C. information

D. recycling

Answer:
B.resource providers

110. Which of the following is not a part of supply chain management system?
A. supplier

B. manufacturer

C. information flow

D. competitor

Answer:
D.competitor

111. DRP stands for
A. distribution requirement planning

B. dividend requirement planning

C. distribution resource planning

D. distribution reverse planning

Answer:
A.distribution requirement planning

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