Supply Chain and Logistics Management

solved mcqs
1 of 5 sets

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
Discussion
A. Outbound logistics
2. What additional factor does overall equipment effectiveness
take into account which makes it more
meaningful than efficiency or utilization?
A. Flexibility
B. Speed
C. Cost
D. Quality
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
B. Third party logistics
10. The supply concept originated in what discipline?
A. Marketing
B. Operations
C. Logistics
D. Production
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
B. Division of labor
22. Which of the following is not a typical supply chain
member?
A. Retailer
B. Wholesaler
C. Producer
D. Customer
Discussion
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
Discussion
A. Distribution
24. Companies manage their supply chain through..............
A. Information
B. Competitor
C. Internet
D. Skilled operator
Discussion
A. Information
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
C. Automated warehouses
34. …………….. encompasses all activities associated with
the flow and transformation of goods
from 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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
D. Continuous improvement
39. The most common form of quality control includes:
A. Planning
B. Organizing
C. Inspection
D. Directing
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
D. Queing theory
45. A type of logistics costing
A. Consumer costing
B. Employee costing
C. Activity costing
D. None of these
Discussion
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
Discussion
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
Discussion
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
Discussion
D. Procurement
49. Procurement methods have considerable impact
on...............
A. Product pricing
B. Inventory level
C. Warehouse space
D. Transportation modes
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
C. Heuristic model
58. Which of the following document is a contract between
the owner of goods and carrier (as with
domestic shipments)?
A. Consular invoice
B. Commercial invoice
C. Certificate of value
D. Bill of lading
Discussion
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
Discussion
D. All of these
60. Which phase of supply chain design process, decides on
which market will be supplied from
which locations?
A. Supply chain strategy
B. Supply chain planning
C. Supply chain operation
D. None of these
Discussion
B. Supply chain planning

61. Which aggregate planning strategy, involves a stable

machine capacity and workforce are
maintained with a constant output rate?
A. Chase strategy
B. Flexibility strategy
C. Level strategy
D. None of these
Discussion
A. Chase strategy
62. Which of the following is not a part of logistics?
A. Production scheduling
B. Replenishment
C. Procurement
D. Meandering
Discussion
D. Meandering
63. Which of the following transportation modes used for
digital products?
A. Raid
B. Truck
C. Air
D. Internet
Discussion
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
Discussion
B. Cargo scanning
65. The word ‘logistics’ is derived from the French word
…………..
A. Logic
B. Logger
C. Longer
D. Logos
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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 an
output
A. Shipment
B. Supplier
C. Customer
D. Transformation
Discussion
D. Transformation
71. “3PL”involves using a supplier to provide
…………….service
A. Marketing
B. Design
C. Logistics
D. Contract manufacture
Discussion
C. Logistics
72. ………….. is a tool to chart how individual process are
currently be conducted and to help lay
out to new improve process
A. Process mapping
B. Pareto charting
C. Supply chain design
D. Design chain mapping
Discussion
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
Discussion
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
Discussion
A. Basket
75. Which of the following is not an input into logistics
A. Land
B. Competitive advantage
C. Facilities
D. Equipment
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
B. Dating
80. Where production logistics is primarily applied?
A. Manufacturing plants
B. Ware houses
C. Stock rooms
D. None of these
Discussion
A. Manufacturing plants

81. …………describesthe process of logistics within the

industry
A. Management logistics
B. Production logistics
C. Logisticians
D. None of these
Discussion
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
Discussion
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
Discussion
B. Product planning & development
84. …………. refers to the process of having the right item in
the right quantity at the right time at
the right place for the right condition to the right customers
A. Business logistics
B. Engineering logistics
C. Management logistics
D. None of these
Discussion
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
Discussion
B. Military
86. What is the primary function of a logistician
A. Inventory management
B. Selling
C. Packing
D. None of these
Discussion
A. Inventory management
87. Which of the following is an output of logistics
A. Land
B. Facilities
C. Competitive advantage
D. Equipment
Discussion
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
Discussion
A. Marketing decision
89. What does ROP expands to
A. Repeat Order Quantity
B. Reorder Quantity
C. Reorder-Point
D. Repeat Order Point
Discussion
C. Reorder-Point
90. The objectives of logistics is
A. Rapid response
B. Consolidated movement
C. Create visibility
D. All of these
Discussion
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 a
few days of operation
A. Reduction inventory management
B. Supply chain management
C. Economic order quantity
D. Just in time logistics
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
D. It is a high equipment utilization
97. Selecting suppliers and purchasing item is called
…………..
A. Negotiation
B. Procurement
C. Contracting
D. Selection
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
B. third party logistics
104. What are the elements of logistics system ?
A. transportation
B. warehousing
C. inventory management
D. all of the above
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
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
Discussion
D. competitor
111. DRP stands for
A. distribution requirement planning
B. dividend requirement planning
C. distribution resource planning
D. distribution reverse planning
Discussion
A. distribution requirement planning