Thursday, 2 April 2020

Multiple Choice Questions for Supply Chain Management (Answer key included)


UNIT WISE QUESTION BANK OF MULTIPLE CHOICES FOR QUIZ

UNIT-1

Choose the correct Answer:
1.      A supply chain that includes suppliers of the immediate supplier and customers of the immediate customer, all involved in the upstream and/or downstream flows of products, services, finances, and/or information is known as:
a)      Direct supply chain                                         c) Ultimate supply chain
b)      Extended supply chain                                   d) Agile supply chain
(Ans -b)
2.      The downstream supply chain is:
a)      Exclusively inside an organization
b)      Involved with procurement of materials from suppliers
c)      The distribution of products or delivery of services to customers
d)     None of the above
(Ans –c)
3.      The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or value disposal is known as:
a) Flows in supply chain                                       b)  Agile supply chain
c) Reverse supply chain                                        d) Supply chain network
(Ans –b)

4.      In customer order cycle, the process in which customers informing the retailer what products they want to purchase  and the retailer allocating products is known as:
c)      Customer arrival                                              c)  Customer order receiving
d)     Customer order fulfillment                             d) Customer order entry
(Ans – d)
                
5.      The four major drivers of supply chain performance are facilities, information, inventory and-------
               a) Material handling                                           c) Transportation
               b) Physical Distribution                                     d) Quality control
                  (Ans – c)
               
6.      Core competency’ is associated with the following fundamental feature of SCM.
               a) Single entity concept                                     c) Systems approach
               b) Inventory perspective                                    d) doing what one can do best
                  (Ans -d)
7.      A key characteristic of an Agile Supply chain is:
             a) Connectivity                                                    c) Relationship
             b) Flexibility                                                         d) Rigidity
                  (Ans – b)           

8.      The processes that focus on the interface between firm and its suppliers comes under:
         a) CRM                                                                    c) SRM
         b) SCM                                                                    d) ISCM
                    (Ans – c)

9.      The flow in the value chain of SCM which in general flows in both the directions.
        a) Cash flow                                                              c) Information flow
        b) Fund flow                                                             d) Value flow
                  (Ans – c)
    
10.  To achieve the ‘core competency’ was the objective of which era?
        a) Independent Business function era
        b)  Limited Internally Integrated business function era
        c) Fully Internally Integrated Business function era
        d) Externally Integrated Business function era
                  (Ans – d)

11.  Which flow in the value chain of SCM majorly is in forward direction?
a)    Value flow                                               c) Cash flow
b)      Information flow                                     d ) Fund flow
(Ans – a)

12.  An aircraft company is a good example of one of the following types of logistics systems.
a)            Balanced system                              c) Heavy outbound
b)            Heavy Inbound                                d) Reverse systems
(Ans – b)

13.  The activities associated with receiving storing and disseminating inputs to the product, such as material handling, inventory control, inbound inspection, scheduling, returns to supplies etc. are part of the:
a)      Downstream logistics                          c) Reverse logistics
b)      Up stream logistics                              d) None of these
(Ans – b)

14.  Which among the following is not a primary component of logistics management?
a)      Network Design                                              c) Procurement
b)      Inventory management                                   d) Transportation
(Ans – c)

15.  A cause of Bullwhip effect in which the customers order intentionally present manufactures with a false picture of consumer demand is known as:
a)      Order Batching                                               c) Gaming
b)      Demand forecast updating                             d) Price fluctuations
(Ans –c)

UNIT-1I

1.      The models that allow prediction of demand based on past data or other parameters that are independently available are:-
a)      Allocation models                         c) Scheduling models
b)      Inventory models                          d) Forecasting models
                                                              i.      (Ans – d)
2.      The warehouse which is licensed and authorized by the custom authorities for storing of goods till import duty due it is paid- owned either by the government or private parties is known as:
a)      Field warehouse                                  c) Buffer storage warehouse
b)      Export and import warehouse             d) Bonded warehouse
                             (Ans –d)

3.      The function of warehouse in which a warehouse receives and consolidates materials/goods from different production plants and then dispatches the same to a particular customer on a single transportation shipment is known as:
a)      distribution function                           c) consolidation function
b)      movement function                             d) break-bulk function
                               (Ans –c)

4.      The distribution channel structure in which two or more unrelated companies join together, so as to have pooled resources to exploit an emerging marketing opportunity is known as:
a) Indirect distribution channel     c Horizontal marketing systems
b) Vertical marketing systems       d) Contractual vertical marketing systems.
                                (Ans -c)

5.      The wholesaler who accumulates orders from retailers and purchases sizeable quantities from the manufacturer at a discount, although they themselves carry no stock and make themselves no deliveries are called:
a)      Cash & carry wholesalers                    c) Rack jobber
b)      Drop-shipper                                       d) Mail order wholesaler
                                (Ans – b)

6.      The method of procurement of all types of materials, supplies, equipment etc through a single department under the direct control and superintendence of one responsible person.
a)      single vendor concept                         c) decentralized purchasing
b)      centralized purchasing                        d) hand to mouth purchasing
                           (Ans – b)

7.      The vendor rating method in which the members of buying staff are required to assign the plus or minus notations against each factor provided for the evaluation purposes of the suppliers so as to assess the performance of each supplier is:
a)      The weighted point method                c) Performance appraisal
b)      The cost-ratio plan                              d) Categorical plan
                            (Ans –d)

8.      Blanket purchase orders are given for items:
a)      continuously used                               c) large single orders
b)      normal purchases                                 d) small value purchases
                           (Ans – a)

9.      The report prepared as soon as materials are cleared from receiving sections and sent for inspections from the stores is known as:
a)      Advice note                                        c) Clearance report
b)      Materials received report                    d) Final goods inward report
                        (Ans – b)

10.  The accounting method used for pricing the material issues, in which material issues are charged at a predetermined, budgeted or estimated price which reflects a normal or an effected future price is called:
a)      Replacement price method                 c) Average cost method
b)      Market price method                           d) Standard price method
                              (Ans –d)

11.  The method of stock verification in which all the items are verified relatively on the continuous basis is known as:
a)      Periodic inventory verification           c) Perpetual inventory verification
b)      Categorical plan                                  d) FSN analysis
                           (Ans –c)

12.  If small orders are placed frequently (rather than placing large orders infrequently), then total inventory cost:
a) Increased                                                           c) Either increased or reduced  
b) Reduced                                                           d) minimized
                                (Ans –c)

UNIT- II1

1.      If orders are placed with size determined by the EOQ, then the reorder costs   component
a)      Equal to the holding cost component:
b)      greater than the holding cost component
c)      less than the holding cost component  
d)     either greater than or less than the holding cost component
(Ans – a)

2.      Which costs can vary with order quantity?
            a) Unit cost only                                             c) holding cost only   
b) Reorder cost only                                       d) All of these
          (Ans –d)
         
3.      If the total investment in stock is limited, will the best order quantity for each item:
           a) Equal the economic order quantity                         
           b) Be greater than the EOQ
           c) Be less than EOQ
           d) Be either greater or less than the EOQ
             (Ans – c)

4.      The basic information required for an efficient control of inventory is:
           a) What items should be stock?
           b) When should an order be placed to replenish inventory?
           c) How much should be ordered in each replenishment?
           d) all of the above
             (Ans – d)

5.      The basic reorder point policy is:
             a) (s, Q) policy                                                           c) (s, T) policy
             b) (T,s,S) policy                                                          d) none of the above
              (Ans – a)
            
6.      ABC analysis depends on the:
a)   Quality of materials,                        c) Cost of materials,
b)   Quantity of materials used,  d) Annual consumption value of material.
(Ans – d)
7.      The rent for the stores where materials are stored falls under:
a)   Inventory carrying cost                                c) Procurement cost
b)   Ordering cost                                               d) Stocking cost
(Ans –a)

8.      As the order quantity increases, this cost will reduce:
a)      Ordering cost                                            c) Inventory carrying cost
b)      Insurance cost                                           d) Stock out cost
(Ans – a)

9.      Economic Batch Quantity is given by: (where, C1 = Inventory carrying cost, C3= Ordering cost, r = Demand for the product):
a)      (2C1/C3)1/2                                                              c) 2C3 r/C1
b)      (2C3/C1r) ½                                                                 d) (2C3 r/C1) 1/2
(Ans – d)

10.  The VED analysis depends on:
a)      Annual consumption cost of materials,           c) Time of arrival of materials
b)      Unit price of materials                                    d) Criticality of materials
(Ans – d)

11.  In FSN analysis the letter S stands for:
a)      Slack materials                                                c) Slow moving materials
b)      Stocked materials                                            d) Standard materials
(Ans – c)

12.  The lead-time is the time:
a)      To place orders of materials
b)      Time of receiving materials
c)      Time between receipt of material and using materials
d)     Time between placing the order and receiving the materials.
(Ans  d)


13.  The inter company computer to computer exchange of business documents in standard formats is known as:
a)   Electronic Data interchange                       c) Enterprise Resource planning
b)   E Commerce                                               d) Artificial Intelligence
      (Ans – a)

14.  The technologies aimed at making computers  imitate human reasoning and are concerned with symbolic reasoning rather than numeric processing:
a)      EDI                                                     c) AI
b)      ERP                                                     d) RF technologies
(Ans – c)

15.  Which of the following input information is not required by the MRP?
a)      Inventory status file                            c) Bill of materials
b)      Master production schedule                d) Sales forecasts
(Ans – d)

UNIT-1V

1.      The business activity of framing out identified non-core activities to external agencies is known as:
a)      Procurement                                        c) Benchmarking
b)      Vendor rating                                      d) Outsourcing
(Ans – d)

2.      A set of interrelated and interdependent functions for collection, storage, analysis and retrieval of information in required format so as to facilitate a smooth flow of input goods from their sources to the processing facilities and outputs to their final destination of use is known as:
a)      MIS                                                     c) DSS
b)      DBMS                                                 d) LIS
(Ans – d)

3.      Processes that focus on downstream interactions between the enterprise and its customers are  known as:
a)      SCM                                                   c) CRM
b)      SRM                                                   d) ISCM
(Ans – c)

4.      The hardware-cum-software technology that allows placement of computer readable codes on different items so that they can be easily recorded at various points of storage or use is known as:
a)      Classification                                                c) RF tags
b)      Codification                                      d) Bar coding
(Ans – d)

5.      An integrator that assembles the capabilities, technology and resources of its own organization and other organizations to design, build and run comprehensive supply chain solutions is known as:
a)      3PL                                                   c) LIS
b)      AI                                                      d) 4PL
(Ans – d)

6.      A time-based representation of the processes and activities that are involved as the materials or products move through the supply chain:
a)      Flow chart                                         c) Supply chain operations reference
b)      Supply chain mapping                       d) Operations program
(Ans – b)

7.      While Benchmarking the second phase is:
a)      Planning                                           c) Analysis
b)      Integration                                       d) Action
(Ans – c)

8.      Which of the following statement regarding Benchmarking is extremely false?
a)      Benchmarking includes comparing one company with the industry       average.
b)      Benchmarking includes comparing one company with a key competitor
c)      If the industry average for gross profit is 35% and your company average is 40%, this would be considered favorable.
d)     If the industry average for cost of goods sold is 50% and your company average is 60%, this would be considered favorable
(Ans –d)

9.      Which among the following is not a component of a 4PL?
a)      Integrator                                        c) Informdiary
b)      Control room                                   d) Spokesperson
(Ans – d)

10.  The step ‘continuous improvement’ comes in the following phase of Benchmarking:
a)      Planning                                         c) Integration
b)      Analysis                                         d) Action
(Ans – d)


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