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SCM U2 MCQ

The document contains 20 multiple choice questions about outsourcing, procurement, and supply chain management. It tests understanding of key concepts like outsourcing, offshoring, strategic sourcing, supplier selection criteria, challenges in global sourcing, and categories of indirect supplies.

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Sunil Allan
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145 views4 pages

SCM U2 MCQ

The document contains 20 multiple choice questions about outsourcing, procurement, and supply chain management. It tests understanding of key concepts like outsourcing, offshoring, strategic sourcing, supplier selection criteria, challenges in global sourcing, and categories of indirect supplies.

Uploaded by

Sunil Allan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Hiring a 3rd party company outside the country to perform activities is called

a. Outsourcing

b. Offshoring

c. Near Shoring

d. On-shoring

2. Can financial operations of a company be outsourced?

a. Yes

b. No

c. Maybe

d. Partially

3. Which of the following is not a benefit of outsourcing?

a. Cost advantages

b. Increased efficiency

c. Promotes local economy

d. Access to skilled resources

4. Sourcing from more than one company is called as

a. Third party sourcing

b. Omni-sourcing

c. External-sourcing

d. Multi-sourcing

5. Which of the following cost would be higher in buy condition?

a. Direct Labour Cost

b. Logistics Cost

c. Managerial Cost

d. All of the above


6. ________________ is the process of making sure that organization gets the best deal on supplies
and services and also includes optimizing internal methods.

a. Strategic Sourcing

b. Supplier Management

c. Value Management

d. Quality Management

7. In the supply chain, your upstream partners are your _____ and your downstream partners are
your _____.

a. Clients/Suppliers

b. Employees/Clients

c. Suppliers/Clients

d. Clients/Employees

8. The purchase cycle begins with the

a. Identification of Needs

b. Identify Criteria for Suppliers

c. Identify Sources for Suppliers

d. Supplier Selection

9. One of the major challenges of global sourcing is:

a. Partner selection

b. Exchange rates

c. Increased complexity of worldwide network

d. Constraint ability to safeguard intellectual assets

10. One aim of e-procurement is increasing savings by sourcing items:

a. At the right price

b. At the right quantity

c. From the right price

d. Of right quantity
11. Production related procurement refers to the purchasing of:

a. Office supplies

b. Raw material

c. Furniture

d. Information system

12. Moving towards becoming the supplier itself is called as:

a. Joint Venture

b. Virtual companies

c. Keiretsu network

d. Vertical Integration

13. Enriching the supplier by providing technical expertise and building long term relationship si

a. Keiretsu Network

b. Joint Venture

c. Supplier Relations

d. Strategic Partnering

14. Which of the following is not a criteria for supplier selection?

a. Reliability

b. Deliverability

c. Reputation

d. Value for Money

15. Should suppliers allow cancellation of orders?

a. Yes

b. No

c. Maybe

16. Which of the following business process is difficult to outsource?

A. Quality inspection
B. Legal affairs

C. Tax affairs

D. Manufacturing

17. Costs incurred in connection with the control and co-ordination of external suppliers are known
as:

A. Transaction costs

B. Economies of Scale

C. Relational Cost

D. Agency cost

18. Is cost the major criteria in supplier selection?

A. Yes

B. No

C. Maybe

19. Supplier evaluation involves

a. Quality Certifications

b. Flexibility

c. References from other customers

d. All of the above

20. Which of the following falls under “Indirect supplies” category?

a) Products used by a business through an indirect supplier

b) Products used by a business not specified by buyer

c) Product used by a business that do not form part of end product

d) None of the above

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