300+ TOP Logistics Management MCQs and Answers Quiz

Logistics Management Multiple Choice Questions

1. ……………….includes design and administration of systems to control the flow of materials, WIP and finished inventory to support business unit strategy.

a. Logistics Management

b. Materials Management

c. Bill of Materials

d. None of the above

2. Which is not a part of basic systems of codifications?

a. Alphabetical System

b. Numerical System

c. Colour Coding System

d. None of the above

3. ……………and physical distribution are the two major operations of logistics.

a. Supply Chain Management

b. Materials Management

c. Logistics Management

d. None of the above

4. …………is the time that elapses between issuing replenishment order and receiving the material in stores.

a. Replenishment time

b. Lead time

c. Idle time

d. None of the above

5. ……………is the task of buying goods of right quality, in the right quantities, at the right time and at the right price.

a. Supplying

b. Purchasing

c. Scrutinizing

d. None of the above

6. Which of the following is not a component of 4PL?

a. Control Room (Intelligence)

b. Resource Providers

c. Information

d. Recycling

7. Which of the following is not a part of Supply chain Management system?

a. Supplier

b. Manufacturer

c. Information Flow

d. Competitor

8. …………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

9. Buying according to the requirements is called …………

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Tender Buying

e. Speculative Buying

10. EDI stands for
A. Electronic Data Interface.
B. Electronic Data Interchange.
C. Electronic Distribution Intermediary.
D. Electronic Documentation Interchange.
Answer: B

11. The objective of independent business function stage is
A. Cost reduction.
B. Maximisation of profit by sales volume.
C. Core competency.
D. Maximisation of profitable sales volume and cost reduction.
Answer: B

12. The objective of limited integrated business function stage is
A. Cost reduction.
B. Maximisation of profit by sales volume.
C. Core competency.
D. Maximisation of profitable sales volume and cost reduction.
Answer: A

13. Form utility is created by
A. Operation function.
B. Logistics function.
C. Procurement function.
D. Distribution function.
Answer: A

14. Place utility is created by
A. Operation function.
B. Logistics function.
C. Procurement function.
D. Distribution function.
Answer: B

15. The strategic component of logistical mission
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: A

16. The logistical component of logistics mission
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: B

17. Inbound and outbound logistics 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: B

18. HRM 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: C

19. 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

20. Just in time is a practice followed in
A. Japan.
B. America.
C. Britain.
D. China.
Answer: A

21. The original sailing vessel were replaced by steam boats in
A. the early 1800s.
B. the late 1800s.
C. the early 1900s.
D. the late 1900s.
Answer: A

22. The diesel power was introduced in the
A. 1910s.
B. 1920s.
C. 1930s.
D. 1940s.
Answer: B

23. The range of tankers is from
A. 1000 to 2000 dwt.
B. 2000 to 5000 dwt.
C. 2000 to 50000 dwt.
D. 2000 to 500000 dwt.
Answer: D

24. One third of the world’s merchant fleet in dead weight capacity terms is represented by
A. oil tankers.
B. product tankers.
C. LNG tankers.
D. Acid tankers.
Answer: A

25. VLCC is
A. Very large crude container.
B. Very large crude carrier.
C. Very large closed container.
D. Very large closed carrier.
Answer: A

26. VLCC are those vessels with dead weight
A. less than 200000 dwt.
B. exceeding 200000 dwt.
C. above 300000 dwt.
D. above 500000 dwt.
Answer: B

27. ULCC are those vessels with dead weight
A. less than 200000 dwt.
B. exceeding 200000 dwt.
C. above 300000 dwt.
D. above 500000 dwt.
Answer: C

28. OBO stands for
A. over bulk order.
B. Oil/Bulk/Ore.
C. Ore/Bulk/Order.
D. On bulk order.
Answer: B

29. Vessels designed to carry private cars are
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
Answer: B

30. Vessel designed to carry traditional tramp bulk cargos are
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
Answer: C

31. The route that helps trade between Western North America and Eastern Asia and that between North America and Australia is
A. The Cape route.
B. The South Atlantic route.
C. The Panama route.
D. The North Pacific route.
Answer: D

32. The opening of Suez canal saved __________ nautical miles
A. 4000.
B. 4500.
C. 5000.
D. 5500.
Answer: B

33. The Panama canal was opened in
A. 1869.
B. 1914.
C. 1920.
D. 1934.
Answer: B

34. The first liner company was formed in
A. 1825.
B. 1835.
C. 1837.
D. 1840.
Answer: C

35. The department in the shipping company that ensures the seaworthiness of ship is
A. husbandry department.
B. finance department.
C. technical department.
D. operating department.
Answer: A

36. The department that aims to maximize the economic employment of the ship is
A. husbandry department.
B. finance department.
C. technical department.
D. operating department.
Answer: D

37. The UN convention on Liner code emphasis the right of any country to develop its own merchant shipping fleet to carry _________ of its own foreign trade.
A. 10%.
B. 20%.
C. 30%.
D. 40%.
Answer: D

38. The stability of liner freight rates extends for a period of not less than
A. 6 months.
B. 12 months.
C. 15 months.
D. 18 months.
Answer: C

39. General notice of any increase in rate of freight should not be less than
A. 60 days.
B. 120 days.
C. 150 days.
D. 180 days.
Answer: C

40. The document that is used to differentiate liner operations from tramp operations is
A. bill of entry.
B. charter party.
C. letter of credit.
D. shipping bill.
Answer: B

41. The document that is used in imports and not in exports is
A. bill of entry.
B. charter party.
C. letter of credit.
D. shipping bill.
Answer: A

42. ITIC stands for
A. Indian trade intermediaries co-operation.
B. Indian trade intermediaries corporation.
C. Indian trade intermediaries club.
D. Indian transport intermediaries club.
Answer: D

43. Indian companies including ship agents can operate as MTS on obtaining license from
A. The ministry of commerce.
B. The chamber of commerce.
C. The DGFT.
D. The DG of shipping.
Answer: D

44. The document that is used for the MTO is
A. Bill of lading.
B. CTD.
C. ARE.
D. GR.
Answer: B

45. The freight broker’s duty of acting for the actual ship owner in finding cargo for the vessel is
A. chartering duty.
B. sale and purchase.
C. owner broker.
D. cabling broker.
Answer: C

46. The freight broker’s duty of communicating with other international markets is
A. chartering duty.
B. sale and purchase.
C. owner broker.
D. cabling broker.
Answer: D

47. The shipping inetermediary who is called M 5.5% is
A. shipping agent.
B. freight broker.
C. freight intermediary.
D. clearing house broker.
Answer: C

48. The intermediary who commonly works for imports is
A. shipping agent.
B. freight broker.
C. freight intermediary.
D. clearing house broker.
Answer: D

49. If shipment is not effected within the permitted free days, the goods incur
A. Dead freight.
B. Rebate.
C. Demurrage.
D. Back freight.
Answer: C

50. The permitted free days for the goods to be kept in port for shipment is
A. 5 days.
B. 7 days.
C. 10 days.
D. 15 days.
Answer: B

51. Stevedores are appointed by
A. the shipper.
B. the consignee.
C. the shipping company.
D. the shipping agent.
Answer: C

52. The leading Mazdoor is assisted by
A. Tindal.
B. Winch driver.
C. Signal man.
D. Mazdoor.
Answer: A

53. The labourers are paid on the basis of
A. monthly wages.
B. daily wages.
C. Commission.
D. work shifts.
Answer: D

54. 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

55. The term used for loading or unloading of heavy cargo is
A. Rigging.
B. Slinging.
C. Carnage.
D. Forced discharge.
Answer: C

56. How many major ports are there in India?
A. 10
B. 12
C. 13
D. 15
Answer: C

57. The major ports are under the direct responsibility of
A. The ministry of commerce.
B. The ministry of shipping.
C. The central government.
D. The state government.
Answer: C

58. All the major ports are administered under the provisions of the major port and trust Act
A. 1950.
B. 1956.
C. 1963.
D. 1965.
Answer: C

59. The tidal port is
A. Kandla.
B. Cochin.
C. New Mangalore.
D. Tuticorin.
Answer: A

60. The facilities for export of Kudremukk iron ore were specially developed at
A. Kandla.
B. Cochin.
C. New Mangalore.
D. Tuticorin.
Answer: C

61. The port that handles mainly coal traffic is
A. Kandla.
B. Cochin.
C. New Mangalore
D. Tuticorin.
Answer: D

62. The port which was formerly called Nhava Sheva is
A. New Mangalore.
B. Marmugao.
C. JNPT.
D. Vizhag.
Answer: C

63. The head quarter of shipping corporation of India is located at
A. Chennai.
B. Mumbai.
C. Delhi.
D. Kolkata.
Answer: B

64. FIB stands for
A. Freight In Board.
B. Freight Index Bureau.
C. Freight Investigation Bureau.
D. Freight In Bound.
Answer: C

65. The container vessels were formerly called
A. Vessels.
B. Trucks.
C. Vanships.
D. Ships.
Answer: C

66. GRP is a classification of container by
A. Raw material.
B. Size.
C. Use.
D. Cargo.
Answer: A

67. Insulated container is an example of
A. Container by raw material.
B. Container by size.
C. General cargo container.
D. Thermal container.
Answer: D

68. The container that has its base only is
A. Bulk container.
B. Flat container.
C. Garment container.
D. Special container.
Answer: B

69. OTL stands for
A. Over time lock.
B. One time lock.
C. One time lease.
D. On time landed.
Answer: B
70. The location of ICD and CFS is regulated by
A. The ministry of commerce.
B. The ministry of shipping.
C. The central government.
D. The state government.
Answer: A

71. The autonomous public sector undertaking under the Ministry of Railway is
A. ICD.
B. CFS.
C. CONCOR.
D. CWC.
Answer: C

72. 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

73. The place in a harbour with gates through which water may be let in and out is
A. Berth.
B. Dock.
C. Board.
D. Wharf.
Answer: B

74. A specific place for a ship in harbour is called
A. Berth.
B. Dock.
C. Board.
D. Wharf.
Answer: A

75. A wooden or stone structure at which vessels are moored for (un)loading is
A. Berth.
B. Dock.
C. Board.
D. Wharf.
Answer: D

76. The charge that is levied by railways when a consignment received at destination is not taken delivery of within the admissible free time is
A. Demurrage.
B. Wharfage.
C. Freight.
D. Rebate.
Answer: B

77. The cargo manifested but not loaded is referred to as
A. Short landed.
B. Short shipped.
C. Short of exchange.
D. Short load.
Answer: B
78. Conference system is an association of __________ shipowners.
A. Liner.
B. Tramp.
C. Tankers.
D. Container.
Answer: A

79. The first shipping company was established in
A. 1850.
B. 1865.
C. 1875.
D. 1885.
Answer: C

80. The immediate rebate system grants ___________ of rebate.
A. 1%.
B. 1.5.%
C. 2%.
D. 2.5.%
Answer: B

81. Charter party is a ______________ word ‘Charta Partitia’ meaning divided document.
A. Latin.
B. Greek.
C. Spanish.
D. Chinese.
Answer: A

82. The ship being chartered for a specific voyage between places is
A. Time charter.
B. Voyage charter.
C. Demise charter.
D. Tanker charter.
Answer: B

83. The chartering where the ship is chartered just as a hull is
A. Time charter.
B. Voyage charter.
C. Demise charter.
D. Tanker charter.
Answer: C

84. The international tanker nominal freight scale Association Ltd is located in
A. London.
B. New York.
C. Australia.
D. Germany.
Answer: A

85. The New York based American Tanker rate scale was set up in
A. 1962.
B. 1956.
C. 1969.
D. 1971.
Answer: B

86. BFI stands for
A. Buffer Freight Index.
B. Baltic Freight Index.
C. Better Freight Index.
D. Bombay Freight Index.
Answer: B

87. The freight charges that include the cost of depreciation and registration is
A. Fixed cost.
B. Semi-fixed cost.
C. Variable cost.
D. Semi-variable cost.
Answer: A

88. The cost of fuel, lubricating oil and accessories included in freight charges is
A. Fixed cost.
B. Semi-fixed cost.
C. Variable cost.
D. Semi-variable cost.
Answer: C

89. Contract of affreightment is the term used for the carriage of goods by
A. Air.
B. Sea.
C. Road.
D. Rail.
Answer: D
90. The freight amount that is paid before the delivery of goods is
A. Lumpsum.
B. Dead.
C. Advance.
D. Back.
Answer: C

91. The ship owner is entitled to claim _________ freight for unoccupied space.
A. Lumpsum.
B. Dead.
C. Advance.
D. Back.
Answer: B

92. The freight that is charged when cargo is assessed on a percentage of its value is
A. Lumpsum.
B. Dead.
C. Advance.
D. Back.
Answer: C

93. The freight for the goods that compress on voyage and expand on expand on unloading is
charged on
A. Value.
B. Compressed nature.
C. Expanded nature.
D. Weight.
Answer: B

94. If the lien for freight is not discharged within _______ days, the wharfinger may sell the goods
by public auction.
A. 30 days.
B. 45 days.
C. 90 days.
D. 120 days.
Answer: C

95. 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

96. Unreliability of vendors leads to
A. Production uncertainty.
B. Process uncertainty.
C. Demand uncertainty.
D. Supply uncertainty.
Answer: D

97. 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

98. The business activity of farming out identified non-core activities to external agencies is
A. Logistics.
B. SCM.
C. Outsourcing.
D. Distribution.
Answer: C

99. The warehouses managed by a public warehousing agency in the premises of a factory is
A. Field warehouse.
B. Buffer storage warehouse.
C. Bonded warehouse.
D. Export and import warehouse.
Answer: A

100. The warehouses located near the port is
A. Field warehouse.
B. Buffer storage warehouse.
C. Bonded warehouse.
D. Export and import warehouse.
Answer: D

101. 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

102. The transportation model coordinated between railways and roadways is
A. Transship.
B. Airtruck.
C. Piggyback.
D. Fishyback.
Answer: C

103. The transportation system that is an outcome of the combination of air and roadways is
A. Transship.
B. Airtruck.
C. Piggyback.
D. Fishyback.
Answer: B

104. Booking of shipping space in advance is helpful to an exporter in
A. Saving in freight charges.
B. Availing bank finance.
C. Getting priority on inland movement of cargo by all.
D. None of the above.
Answer: C

105. A mate’s receipt is
A. A draft bill of lading.
B. A substitute bill of lading.
C. Bill of lading evidencing goods carried on deck.
D. None of the above.
Answer: D

106. According to the Multimodal Transportation of Goods Act, a multimodal transport document cannot be
A. A bearer instrument.
B. An order instrument.
C. A non-negotiable instrument.
D. None of the above.
Answer: D

107. The following incoterm cannot be used for contracts providing for transportation of goods by sea
A. CFR.
B. DDP.
C. DES.
D. DEQ.
Answer: B

108. The incoterm providing or least responsibility to seller is
A. EXW.
B. DDP.
C. FOB.
D. CIF.
Answer: A

109. The group of incoterms under which the seller’s responsibility is to obtain freight paid transport document for the main carriage is
A. E terms.
B. C terms.
C. D terms.
D. F terms.
Answer: B

110. The price quoted by the seller for the product
A. Will vary depending upon the incoterm chosen.
B. Is irrespective of the incoterm.
C. Will be the base price.
D. None of the above.
Answer: A

111. Packaging performs two functions. ___________ and logistics.
A. Distribution.
B. Store keeping.
C. Material handling.
D. Marketing.
Answer: D

112. The outcome of the independent business function era was
A. aggressive preaching skill.
B. price -based competition.
C. customer value and harmonious relation.
D. increased productivity, profitability and market share.
Answer: A

113. The outcome of limited integrated business function was
A. aggressive preaching skill.
B. price based competition.
C. customer value and harmonious relation.
D. increased productivity, profitability and market share.
Answer: B

114. The outcome of internally integrated business function was
A. aggressive preaching skill.
B. price based competition.
C. customer value and harmonious relation.
D. increased productivity, profitability and market share.
Answer: C

115. The outcome of externally integrated business function was
A. aggressive preaching skill.
B. price based competition.
C. customer value and harmonious relation.
D. increased productivity, profitability and market share.
Answer: D

116. The period of existence of independent business function was
A. till 1950s.
B. 1960s to 1970s.
C. 1980s.
D. 1990s.
Answer: A

117. The non -logistical component of logistics mission
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: C

118. The service mission of logistics
A. reflects the ability of firm to exploit market.ment.
B. deal with basic services required for delivering of goods.
C. refers to the value-added services offered.
D. reflect the vision of top manage
Answer: A

119. Marketing and sales is ___________ in the generic value chain of logistics.
A. the only activity
B. a primary activity.
C. not an activity.
D. a support activity.
Answer: A

120. A well defined corporate vision
A. reflects the capability of the management to think beyond the current way.
B. reflects the extent of use of logistical component for competitive advantage.
C. ensures effective implementation of logistics strategy.
D. deals with managing change.
Answer: A

121. The logistics strategic analysis
A. reflects the capability of the management to think beyond the current way.
B. reflects the extent of use of logistical component for competitive advantage.
C. ensures effective implementation of logistics strategy.
D. deals with managing change.
Answer: B

122. Vessels that carry railway passenger and freight rolling stock are
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
Answer: D

123. Combination carrier is a unifixed cargo carrier combining container and
A. OBO.
B. RO/RO.
C. SD 14.
D. Train ferry.
Answer: B

124. The shipping route that lies between Western Europe, Eastern Canada and the United States is
A. The North Atlantic route.
B. The Mediterranean – Red Sea -Indian Ocean route.
C. The Cape route.
D. The South Atlantic route.
Answer: A

125. The sailing route that connects North Western Europe with the Eastern Europe,Southern and Eastern Asia, Australia and New Zealand is
A. The North Atlantic route..
B. The Mediterranean -Red Sea – Indian Ocean route.
C. The Cape route.
D. The South Atlantic route.
Answer: B

126. The route connecting Western Europe, Africa and Australia is
A. The Cape route.
B. The South Atlantic route.
C. The Panama route.
D. The North Pacific route.
Answer: A

127. The route lying between South Eastern South America and North Western Europe and Mediterranean is
A. The Cape route.
B. The South Atlantic route.
C. The Panama route.
D. The North Pacific route.
Answer: B

128. An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel.
A. time-saving part.
B. disciplinary role.
C. specialized role.
D. informational role.
Answer: C

129. Historically, conventional channels have lacked the leadership to ________.
A. assign member roles and manage conflict.
B. attain efficiency and assign member roles.
C. set standard pricing and promotions.
D. set standard pricing and packaging.
Answer: B

130. A channel consisting of one or more independent producers, wholesalers or retailers that are seeking to maximize their own profits even at the expense of profits for the channel as a whole is a ________.
A. administered vertical marketing system.
B. conventional distribution channel.
C. vertical marketing system.
D. independent channel allocation.
Answer: A

131. A corporate VMS has the advantage of controlling the entire distribution chain under ________.
A. single ownership.
B. a few intermediaries.
C. little control.
D. a profit-maximizing strategic plan.
Answer: B

132. A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________.
A. working partnerships.
B. limited liability corporations.
C. natural competitive forces.
D. oral agreements.
Answer: A

133. ____________ is / are the basic tools for determining competitor costs.
A. Cost drivers.
B. A value chain.
C. Cost cutters.
D. A value analysis.
Answer: B

134. Cost efficiency is determined by which of the following drivers?
A. Supply Costs, Experience, Product/Process Design and Economies of Scale.
B. Supply Costs & Economies of Scale.
C. Product/Process Design and Economies of Scale.
D. Experience.
Answer: B

135. The value chain attempts to identify those activities which add value to:
A. The organisation’s stakeholders.
B. The senior strategic managers in the organization.
C. The organisation’s shareholders.
D. The customer or final user.
Answer: D

136. Adoption of incoterm is
A. Compulsory for all international contracts.
B. Compulsory for all letter of credit transactions.
C. Optional for the parties to the contract.
D. Mandatory for transactions with Europe.
Answer: C

137. Strategic stretch involves:
A. The fit between the organisation and its environment.
B. Creating new opportunities by stretching and exploiting capabilities in new ways.
C. The skills of the senior management.
D. Utilising all the resources of an organisation to their full capacity.
Answer: A

138. Incoterm is specific about the responsibility for marine insurance in case of
A. FOB and EXW.
B. FOB and CIF.
C. CIF and CIP.
D. CPT and DDP.
Answer: C

139. The price quoted by the seller for the product
A. Will vary depending upon the incoterm chosen.
B. Is irrespective of the incoterm.
C. Will be the base price.
D. None of the above.
Answer: A

140. The incoterm should indicate the place of shipment in case of
A. F terms.
B. E terms.
C. C terms.
D. D terms.
Answer: A

141. The group of terms arranged in order of increasing responsibility of exporter is
A. C,D,E and E terms.
B. D,E,F and C terms.
C. E,F,C and D terms.
D. F,C,E and D terms.
Answer: C

142. Incoterms cover
A. Trade in intangibles.
B. Ownership and transfer rights.
C. Contracts of carriage.
D. Rights and obligations of parties to contract of sales.
Answer: D

143. Airway bill is prepared in
A. three originals.
B. Quadruplicate.
C. As many copies as required.
D. One original only.
Answer: A

144. The following transport document is acceptable under a letter of credit
A. House airway bill.
B. House bill of lading.
C. Warehouse receipt.
D. Tramp bill of lading.
Answer: A

145. Freight to pay bill of lading is acceptable if
A. The contract term is CIF.
B. The contract term is CFR.
C. The contract term is FOB.
D. Goods are carried by a foreign vessel.
Answer: C

146. A transferable credit can be transferred
A. Once.
B. Twice.
C. Thrice.
D. Any number of times.
Answer: A

147. When goods are sent to an agent of an exporter in the importing country, the method of payment adopted is
A. Open account.
B. Letter of credit.
C. Consignment sale.
D. Document against acceptance.
Answer: C

148. The best form of method of payment for an importer would be
A. Advance remittance.
B. Letter of credit.
C. Documents against payment.
D. Open account.
Answer: D

149. The internal process leads to
A. Supply uncertainty.
B. Process uncertainty.
C. Demand uncertainty.
D. Production uncertainty.
Answer: B

150. The flow of information that facilitates operational activities is
A. Forward information flow.
B. Backward information flow.
C. Upward information flow.
D. Downward information flow.
Answer: A

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