MCQ Distrubution-Logistic PDF

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Multiple Choice Questions (MCQ) on Supply chain management Which of the following is true for supply chain management?

a. b. c. d.

The physical material moves in the direction of the end of chain Flow of cash backwards through the chain Exchange of information moves in both the direction All of the above (Ans:d)

The sequence of a typical manufacturing supply chain is

a. b. c. d.

Storage–Supplier–manufacturing–storage–distributor–retailer–customer Supplier–Storage-manufacturing–storage–distributor–retailer–customer Supplier–Storage-manufacturing– distributor–storage–retailer–customer Supplier–Storage-manufacturing–storage– retailer–distributor–customer (Ans:b)

The purpose of supply chain management is

a. b. c. d.

provide customer satisfaction improve quality of a product integrating supply and demand management increase production (Ans:c)

Logistics is the part of a supply chain involved with the forward and reverse flow of

a. b. c. d.

goods services cash all of the above (Ans:d)

Due to small change in customer demands, inventory oscillations become progressively larger looking through the supply chain. This is known as

a. b. c. d.

Bullwhip effect Netchain analysis Reverse logistics Reverse supply chain (Ans:a)

VMI stands for

a. b. c. d.

Vendor material inventory Vendor managed inventory Variable material inventory Valuable material inventory (Ans:b)

The major decision areas in supply chain management are

a. b. c. d.

location, production, distribution, inventory planning, production, distribution, inventory location, production, scheduling, inventory location, production, distribution, marketing (Ans:a)

Distribution requirement planning is a system for

a. b. c. d.

Inventory management Distribution planning Both ‘a’ and ‘b’ None of the above (Ans:c)

Reverse logistics is required because

a. b. c. d.

Goods are defective Goods are unsold The customers simply change their minds All of the above (Ans:d)

3-PL stands for

a. b. c. d.

Three points logistics Third party logistics Three points location None of the above (Ans:b)

Single-sourcing has a number of advantages. Which of the following is NOT an advantage

of single sourcing? Wide sources Your of knowledge Answer: and expertise to tap. Yes, that's correct.

2.

Multiple-sourcing has a number of advantages. Which of the following is NOT an advantage? A wider Your Answer: source of knowledge and expertise is available. More scale Correct economies. Answer:

No, that's not correct.

3.

If the operation has minimum inventory and low-cost suppliers and the market requirements are predictable with few changes, that is: Match Your Answer:

Yes, that's correct.

4.

If the operation has deployed inventory and flexible suppliers and the market requirements are for short lead time and high margins, that is: Mismatch Your Answer: Match Correct Answer:

No, that's not correct.

5.

If the operation is low cost and minimum inventory and the market requirements are for stable prices and low lead time, that is: Match Your Answer:

Yes, that's correct.

6.

Greater dependency encouraging more commitment and effort is an advantage of: Single sourcing Your Answer:

Yes, that's correct.

7.

Can switch sources in case of supply failure is an advantage of: Multi-sourcing Your Answer:

Yes, that's correct.

8.

Higher confidentiality is an advantage of: MultiYour Answer: sourcing Single Correct sourcing Answer:

No, that's not correct.

9.

Potentially better quality because more SQA possibilities is an advantage of: Single sourcing Your Answer:

Yes, that's correct.

10.

Professor Lamming defines lean supply as supplying goods in the smallest possible quantities in order to increase flexibility. False Your Answer:

Yes, that's correct.

11.

EPOS systems used by retailers, stands for electronic point of sale. True Your Answer:

Yes, that's correct.

12.

Vendor-managed inventory (VMI) is a way to allow an upstream supplier to manage the inventories of its downstream customer. False Your Answer: True Correct Answer:

No, that's not correct.

13.

All the operations that are linked together to provide goods and services to the end customer arecalled: The Your Answer: Distribution Chain The Supply Correct Network Answer:

14.

The emphasis on understanding the end customer in a supply chain has led to some authorities objecting the term ‘supply chain’. Instead they argue they should be referred to as: Demand chains Your Answer:

Yes, that's correct.

15.

Authorities who object to the term ‘supply chain’ argue that the concept implies a ‘pull’ mentality. True Your Answer:

False Correct Answer:

1.

Which of the following is NOT a disadvantage of singlesourcing?

Your (blank) Answer:

Kerietsu is a Japanese word for global sourcing.

2. True Your Answer: False Correct Answer:

No, that's not correct.

3.

A linkage of operations that provide goods and services through to the end customer is called: The Logistics Network Your Answer: The Supply Chain Correct Answer:

4.

If total sales for a company are £10,000,000 the cost of purchase goods and services is £7,000,000 salaries are £2,000,000 and overheads are

£500,000, profits can be doubled by: Decreasing salaries by 25% Your Answer: All of the above Correct Answer:

5.

Which of the following relates to the short-term ability to supply? Dependability of supply Your Answer:

6.

Which of the following is considered an impact of eprocurement? It opens up the marketplace to Your Answer: increased competition, but limits the ability to manage suppliers It drives efficiency, opens up Correct the market to competition, and Answer: improves the ability to manage suppliers

7.

The concept of materials management originated from purchasing functions that understood the importance of integrating materials flow and its supporting functions.

Your True Answer:

8.

The volume and value of purchases of goods or services typically increase as organisations concentrate on their ‘core’ tasks

Your Answer: False

Correct True Answer:

9.

‘Logistics' covers a smaller proportion of the supply chain than ‘Physical distribution management'

Your False Answer:

10.

The larger the level of material costs as a proportion of total costs, the greater the effect on profitability of a reduction in material costs.

Your Answer: False

Correct True Answer:

11.

E-Procurement is a generic term used to describe the use of electronic methods in every stage of the purchasing process from identification if need through to payment, and even contract management.

Your Answer: False

Correct True Answer:

12.

In attempting to reduce inventory in the supply chain as a whole, the supply chain manager must focus attention on: End customers Your Answer: ‘Bottle neck’ businesses Correct Answer:

No, that's not correct.

13.

The idea of identifying waste along the whole supply chain, especially in the form of unnecessary inventory, is the basis of what concept? Effective supply chain Your Answer: Lean supply chain Correct Answer:

No, that's not correct.

14.

What is the well-accepted term for the function that deals with the operation’s interface with its supplier markets? Logistics Your Answer:

Purchasing and supply Correct management Answer:

No, that's not correct.

What is the term commonly used to refer to the extension of physical distribution management?

15.

Downstream supply Your Answer: management Logistics Correct Answer:

No, that's not correct.

Which of the following is NOT a disadvantage of single-sourcing?

Your (blank) Answer:

2.

Kerietsu is a Japanese word for global sourcing. True Your Answer: False Correct Answer:

No, that's not correct.

3.

A linkage of operations that provide goods and services through to the end customer is called: The Your Answer: Logistics Network The Correct Supply Answer: Chain

4.

If total sales for a company are £10,000,000 the cost of purchase goods and services is £7,000,000 salaries are £2,000,000 and overheads are £500,000, profits can be doubled by: Decreasin Your Answer: g salaries by 25% All of the Correct above Answer:

5.

Which of the following relates to the short-term ability to supply? Dependabilit Your y of supply Answer:

6.

Which of the following is considered an impact of eprocurement? It opens Your Answer: up the marketpla ce to increased competitio n, but limits the ability to manage suppliers It drives Correct efficiency, Answer: opens up the market to competitio n, and improves the ability to manage suppliers

7.

The concept of materials management originated from purchasing functions that understood the importance of integrating materials flow and its supporting functions.

Your True Answer:

8.

The volume and value of purchases of goods or services typically increase as organisations concentrate on their ‘core’ tasks

Your Answer: False

Correct True Answer:

9.

‘Logistics' covers a smaller proportion of the supply chain than ‘Physical distribution management'

Your False Answer:

10.

The larger the level of material costs as a proportion of total costs, the greater the effect on profitability of a reduction in material costs.

Your Answer: False

Correct True Answer:

11.

E-Procurement is a generic term used to describe the use of electronic methods in every stage of the purchasing process from identification if need through to payment, and even contract management.

Your Answer: False

Correct True Answer:

12.

In attempting to reduce inventory in the supply chain as a whole, the supply chain manager must focus attention on: End Your Answer: customer s ‘Bottle Correct neck’ Answer: businesse s No, that's not correct.

13.

The idea of identifying waste along the whole supply chain, especially in the form of unnecessary inventory, is the basis of what concept? Effective Your Answer: supply chain Lean Correct supply Answer: chain

No, that's not correct.

14.

What is the well-accepted term for the function that deals with the operation’s interface with its supplier markets? Logistics Your Answer: Purchasing Correct and supply Answer: manageme nt No, that's not correct.

15.

What is the term commonly used to refer to the extension of physical distribution management?

Downstrea Your Answer: m supply manageme nt Logistics Correct Answer:

No, that's not correct.

Which of the following is NOT a disadvantage of single-sourcing? Less easy to develop effective SQA. Your Answer:

Yes, that's correct ....