MULTIPLE CHOICE QUESTIONS (MCQ) ON SUPPLY CHAIN MANAGEMENT

1) 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 cash backwards through the chain
C. Exchange of information moves in both the direction
D. All of the above
2) The sequence of a typical manufacturing supply chain is
A. Storage–Supplier–manufacturing–storage–distributor–retailer–customer
B. Supplier–Storage-manufacturing–storage–distributor–retailer–customer
C. Supplier–Storage-manufacturing– distributor–storage–retailer–customer
D. Supplier–Storage-manufacturing–storage– retailer–distributor–customer
3) 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
4) Logistics is the part of a supply chain involved with the forward and reverse flow of
A. goods
B. services
C. cash
D. all of the above
5) Due to small change in customer demands, inventory oscillations become progressively
larger looking through the supply chain. This is known as
A. Bullwhip effect
B. Netchain analysis
C. Reverse logistics
D. Reverse supply chain
6) VMI stands for
A. Vendor material inventory
B. Vendor managed inventory
C. Variable material inventory
D. Valuable material inventory
7) 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
8) Distribution requirement planning is a system for
A. Inventory management
B. Distribution planning
C. Both ‘a’ and ‘b’
D. None of the above
9) Reverse logistics is required because
 A. Goods are defective
B. Goods are unsold
C. The customers simply change their minds
D. All of the above
10) 3-PL stands for
A. Three points logistics
B. Third party logistics
C. Three points location
D. None of the

MCQ: SUPPLY CHAIN MANAGEMENT

1) "Quality 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
2) The supply chain concept originated in what discipline?
A. marketing
B. operations
C. logistics
D. production
3) Zero defects in manufacturing is
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
4) The supply chain management philosophy emerged in which decade?
A. 1960s
B. 1970‟s
C. 1980s
D. 1990s
5) Which of the following are not key attributes of supply chain management?
A. inventory control
B. leveraging technology
C. customer power
D. all are key attributes
6) Positive, long-term relationships between supply chain participants refer to:
A. Co-opetitions
B. tailored logistics
C. partnerships
D. supply chain management
7) Which one of the following best represents a pure good?
A. Soap
B. Fast food
C. Attending a play
D. Vehicle repair
8) Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
A. third-party logistics
B. supply chain collaboration
C. dovetailing
D. relationship marketing
9) Process improvement technique that sorts the "vital few" from the "trivial many" is
A. Taguchi analysis
B. Pareto analysis
C. benchmarking
D. Yamaguchi analysis
10) A fishbone diagram is also known as a
A. cause-and-effect diagram
B. poka-yoke diagram
C. Kaizen diagram
D. Taguchi diagram
11) What is a perfect order?
A. simultaneous achievement of relevant customer metrics
B. an order that arrives on time
C. an order that arrives undamaged
D. an order that is easy for the receiver to fill
12) Which of the following is not one of the major categories of costs associated with
quality?
A. prevention costs
B. appraisal costs
C. internal failures
D. none of the above, they are all major categories of costs associated with quality
13) Lean production involves
A. Elimination of cost only
B. Improvement of quality only
C. Improvement of speed only
D. Elimination of all types of waste
14) All of the following costs are likely to decrease as a result of better quality except
A. customer dissatisfaction costs
B. maintenance costs
C. scrap costs
D. warranty and service costs
15) Inspection, scrap, and repair are examples of
A. internal costs
B. external costs
C. costs of dissatisfaction
D. societal costs
16) A successful TQM program incorporates all of the following except
A. continuous improvement
B. employment involvement
C. benchmarking
D. centralized decision making authority
17) Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
A. Taguchi Loss Function
B. Pareto Chart
C. ISO 9000 Quality Cost Calculator
D. Process Chart
18) A quality loss function utilizes all of the following costs except
A. the cost of scrap and repair
B. the cost of customer dissatisfaction
C. inspection, warranty, and service costs
D. sales costs
E. costs to society
19) Pareto charts are used to
A. identify inspection points in a process
B. outline production schedules
C. organize errors, problems or defects
D. show material flow 2
20) Which one of the following would not generally be considered an aspect of
operations management?
A. Work methods
B. Secure financial resources
C. Maintain quality
D. Product or service design
21) Which of the following is not a key activity of an operations manager?
A. Understanding the needs of customer
B. Continually learning
C. Managing cash flows
D. Exploiting technology to produce goods and services
22) Which one of the following best represents a pure good?
A. Salt
B. Fast food
C. Attending a play
D. Vehicle repair
23) Which one of the following would not generally be considered an aspect of
operations management?
A. Schedule work
B. Secure financial resources
C. Maintain quality
D. Oversee the transformation process
24) Which one of these was not mentioned in the list of recent trends in operations
management?
A. Total quality management
B. Worker involvement
C. Global competition.
D. Automation.
25) Which came last in the development of manufacturing techniques?
A. Lean production
B. Division of labor
C. Mass production
D. Craft production.
26) Which function typically employs more people than any other functional area?
A. Information System
B. Operations
C. Marketing
D. Finance
27) Which of the following is not a type of operations?
A. Goods production
B. storage/transportation
C. entertainment
D. price reduction .
28) The inputs to a transformation process include all of the following except
A. Material
B. People
C. Information
D. Assembly
29) ______is an example of a pure good.
A. Restaurant
B. Dentist
C. Coal Mining
D. Education
30) ”Quality is conformance to specifications”-This definition of quality is from point of
view of
A. Customer
B. Manufacturer
C. Quality Circle Forum
D. TQM
31) The goal of Total Quality Management is:
A. Customer satisfaction
B. Product differentiation
C. Brand equity
D. Acting globally
32) Which of the following is not a typical supply chain member?
A. Retailer‟s Creditor
B. Wholesaler
C. Producer
D. Customer
33) Quality is both quantitative and
A. Supportive
B. Qualitative
C. Measurable
D. Conclusive
34) When suppliers, distributors, and customers partner 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
35) Intermediaries play an important role in matching .
A. dealer with customer
B. manufacturer to product
C. information and promotion
D. supply and demand
36) Raw materials and specialised services procured are converted into useful service
offerings and finaly distributed to customers in following Industry
A. Hotel
B. Cement
C. Sugar
D. Refinery
37) In a SC,Material flows in one direction while from in both direction
A. Process
B. Information
C. Product
D. Semifinished Goods
38) Companies manage their supply chains through
A. information
B. transportation modes
C. competitors
D. the Internet
E. skilled operators
39) Today, a growing number of firms now outsource some or all of their logistics to
intermediaries.
A. competitors
B. third-party logistics providers
C. channel members
D. cross-functional teams
40) Most operations produce a mixture of both products and services. Which of the
following businesses are closest to producing “pure” services?
A. Counsellor/Therapist
B. Restaurant
C. IT company
D. Steel company
41) Which one does not use operations management?
A. Supermarket
B. Bank
C. Hospital
D. They all use it.
42) The trend in organizations is to place the SCM function:
A. Under the manufacturing function
B. Under the finance function
C. Under the engineering function
D. At the same level as the other major functions
43) The most common form of quality control includes:
A. Planning
B. Organizing
C. Inspection
D. Directing
44) Which of the following is not a typical supply chain member?
A. Retailer‟s creditor
B. wholesaler
C. reseller
D. producer
45) A company's channel decisions directly affect every .
A. customer's choices
B. employee in the channel
C. channel member
D. competitor's actions
46) A supply chain is essentially a sequence of linked:
A. customer and prospects
B. supplier and manufacturer
C. suppliers and customers
D. warehousing and wholesaling units
47) Companies manage their supply chains through .
A. Information
B. transportation modes
C. competitors
D. the Internet
48) Today, a growing number of firms now outsource some or all of their logistics to
intermediaries
A. Competitors
B. third-party logistics providers
C. channel members
D. cross-functional teams
49) Supply chain concept originated in what discipline?
A. Marketing
B. operations
C. logistics
D. production
50) A restaurant is an example of a
A. major service with accompanying goods and services
B. hybrid
C. pure service
D. pure tangible good
51) Which of the following are not key attributes of supply chain management?
A. inventory control
B. leveraging technology
C. customer power
D. all are key attributes
52) Positive, long-term relationships between supply chain participants refer to:
A. co-opetitions
B. tailored logistics
C. partnerships
D. supply chain management
53) The variability in demand orders among supply chain participants:
A. cannot be controlled
B. refers to the bullwhip effect
C. can be controlled with electronic order placement
D. is more pronounced in relational exchanges
54) Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
A. third-party logistics
B. supply chain collaboration
C. dovetailing
D. relationship marketing
55) Which of the following is NOT a reason that companies are depending more on their
suppliers?
A. More focus on core competencies
B. Need for more flexibilities
C. Desire to share risks
D. More control over their suppliers