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