CHAPTER – 1

Introduction To Supply Chain Management -Part 1

Q1.
Which of the following would not usually be a main factor in selecting a vendor
. Location
. Price
quality
inventory turnover Correct Answer

Q2.
Which of the following is NOT a factor impacting the supply chain?
Reduced number of suppliers
Increased competition
Longer product life cycles
Correct Answer
Increased opportunities to strategically use technology

Q3.
In a manufacturing Organisation, raw material enters its premises through:
Supply System
Correct Answer
Sales department
Production department
Purchase department

Q4.
Vendor analysis has the greatest potential for savings for items which have
low cost per unit
high cost per unit
high annual cost-volume
Correct Answer
low annual cost-volume

Q5.
A market orientation helps the ___________ of Supply Chain Management.
Promotion
Relation
Execution
Correct Answer
Upstream
 CHAPTER – 1
Introduction To Supply Chain Management -Part 1
Q6.
…………………….. integrates supply and demand management within and across companies.
Supply chain management
Correct Answer
Operations
Quality
Marketing

Q7.
Which of the following is the first principle of supply chain management?
Customize the logistics network and focus intensively on the service requirements
Listen to signals of market demand and plan accordingly
Segment customers by service needs and then tailor services to those particular segments
Correct Answer
None of the above

Q8.
Which of the following is not one of the three main links in the supply chain?
Materials flow from suppliers and their "downstream" suppliers at all levels
Correct Answer
Transformation of materials into semifinished and finished products – the organization's own production processes
Distribution of products to customers and their "downstream" customers at all levels
None of the above

Q9.
Supply chains link operators to suppliers in
Layers
Groups
Tiers
Correct Answer
Channels

Q10.
The purpose of supply chain management is;
provide customer satisfaction
improve quality of a product
integrating supply and demand management
Correct Answer
increase production
 CHAPTER – 1
Introduction To Supply Chain Management -Part 1
Q11.
The Basic Concept of Supply Chain Management relates to _______________ of the complete Chain.
Globalisation
Distribution
Planning
Optimisation Correct Answer

Q12.
Supply chain management system are integrated partnership among all links in the flow of goods and services to ;
Company
Business
Customer Correct Answer
Supplier

Q13.
Following is not the principle of SCM
Customer as a king
Management logistic
Customer management
Services to owner
Correct Answer

Q14.
Stages of supply chain management include suppliers, producers, distributors, retailers, and
Financial flows
Customers
Reverse logistics
Correct Answer
Sustainability

Q15.
A supply chain is made up of a series of processes that involve an input, a _______, and an output.
shipment
supplier
customer
transformation
Correct Answer
 CHAPTER – 2
Introduction To Supply Chain Management - Part II
Q1.
method to make improvement in the supply chain is known as:
Major product redesign
Correct Answer
Major process simplification
Outsourcing logistics
forward and backward integration

Q2.
The speed of transprotation depends upon:;
mode of transportation
quantity
both A & B are correct
Correct Answer
both A & B are incorrect

Q3.
When the supplier supplies directly to end customer rather than seller it is known as:
channel assembly
Drop shipping
Correct Answer
blanket orders
standardisation

Q4.
time that elapses between point at which material enters the supply chain to point at which it exists is known as;
through - put
material flow time
Correct Answer
real time
actual time

Q5.
The average amount of inventory used to satisfy demand between receipt of supplier shipments is known as;
safety stock
Average inventoy
cycle inventory
Correct Answer
regular inventory
 CHAPTER – 2
Introduction To Supply Chain Management - Part II
Q6.
How many forms of structural changes are there in supply chain?
2
6
5
Correct Answer
10

Q7.
A contract to purchase certain items from vendor is known as:
channel assembly
Drop shipping
blanket orders
Correct Answer
standardisation

Q8.
According to _________ logistics cost is estimated to be about 12% of the world's GDP
World Bank
IMF
Correct Answer
WTO
UNO

Q9.
An innovation in transportation is known as
Cross Docking
Correct Answer
Virtual corporation
Cross functional teams
set up time reduction

Q10.
What plays an important role in Firm's competetive strategy?
costing
budgeting
pricing
Correct Answer
transporting
 CHAPTER – 2
Introduction To Supply Chain Management - Part II
Q11.
The values not in product or service are
Form value
time value
place value
brand value
Correct Answer

Q12.
Method of sending individual components and modules rather than finished products to distributor is;
channel assembly
Correct Answer
Drop shipping
blanket orders
standardisation

Q13.
What helps in providing coordination that is lacking across the various departments and functions of business?
Virtual corporation
Cross Docking
set up time reduction
Cross functional teams
Correct Answer

Q14.
The process in which fims decide how much to charge to customers is known as
pricing
Correct Answer
procurement
manufacturing
buying

Q15.
_________ focuses on outputs of process, especially quality levels
make or buy decision
Value analysis
supplier Evaluation
Correct Answer
Supplier certification
 CHAPTER – 3
Designing The Supply Chain Network
Q1.
Planning involving resource acquisition decision to be taken over long term planning horizons is known as;
Strategic planning Correct Answer
Tactical Planning
Operartional Planning
Functional Planning

Q2.
Approach which replicate the functioning of logistics is;
optimisation
simulation
Correct Answer
heuristic
spatial

Q3.
The decision related to what role a facility play is known as;
role of facility
Correct Answer
facility location
Allocation of capacity
market and supply allocation

Q4.
The type of change that are needed to the firm's logistics network should be confirmed in the context of;
Supply chain positioning
Correct Answer
supply chain network
network design
none of the above

Q5.
Redisigning the logistics network can generate annual savings of total logistics cost upto;
5 to 15 %
Correct Answer
10 to 15 %
15 to 20 %
20 to 25 %
 CHAPTER – 3
Designing The Supply Chain Network
Q6.
A ………………. Is the network of organization that are involved through upstream and downstream linkages in the different processes and activities that produce value in the
form of products and services in the hands of ultimate customers. It is also called as a value chain.
Process
Supply chain
Correct Answer
Flow
Capacity plan

Q7.
The decision related to which markets should each facility serrve & which supply sources should feed each facility is;
role of facility
facility location
Allocation of capacity
market and supply allocation
Correct Answer

Q8.
the number of product groups substantial for network analysis is;
10
5
15
20
Correct Answer

Q9.
The aspect which refers to locating facilities on a geographical area is known as;
temporal aspect
integration
Spatial aspect
Correct Answer
reverse integration

Q10.
Facility that leads in development and process technlogies is;
Lead facility
Correct Answer
server facility
Contributor facility
outpost facility
 CHAPTER – 3
Designing The Supply Chain Network
Q11.
Planning involving decision affecting the short term execution of firm's business is known as;
Strategic planning
Tactical Planning
Operartional Planning
Correct Answer
Functional Planning

Q12.
To compete effectively in the market firms search new ways to;
lower cost
improve customer service
both A & B
Correct Answer
None of above

Q13.
A company's goal is to add ______________ to its product
price
profit
Value
Correct Answer
surplus

Q14.
The three principle modelling approach do not include;
optimisation
simulation
heuristic
spatial
Correct Answer

Q15.
regional production facility with development skills is known as;
offshore facility
source facility
server facility
Contributor facility
Correct Answer
 CHAPTER – 4
Network Design
Q1.
Types of distribution used to distribute the products are;
two
three
Correct Answer
four
five

Q2.
Provisions for billing, granting credit and preparing invoces is
Containerisation
inventory control
order processing
Correct Answer
transportation

Q3.
utility created when products and services are available where consumer wants to buy them
time
place
Correct Answer
possession
form

Q4.
Strategy defining the set of customer needs is;
Competetive strategy
Correct Answer
distribution strategy
marketing strategy
production strategy

Q5.
function consisting of buying in relatively large quantities and selling in smaller quantities is known as;
Bulk breaking
Correct Answer
Accumulating bulk
creation of assortments
reducing transactions
 CHAPTER – 4
Network Design
Q6.
distribution system under which a producer firm sells its product through multiple but not all possible wholesalers or retailers;
Intensive distribution
Selective distribution
Correct Answer
exclusive distribution
extensive distribution

Q7.
All factors in physically moving and storing products should be considered as a whole and not individually' Is a premise of;
Total cost Approach
Correct Answer
Suboptimisation
Cost trade offs
physical distribution

Q8.
Cargo handeling system commonly used in physical distribution is;
Containerisation
Correct Answer
inventory control
order processing
transportation

Q9.
Relationship built on a single event or a series of separate single event usually over short term period is;
Strategic Alliance
Contract logistics
transaction logistics
Correct Answer
general alliance

Q10.
Condition in which the manager of each physical distribution function attempts to minimise cost
Total cost Approach
Suboptimisation
Correct Answer
Cost trade offs
physical distribution
 CHAPTER – 4
Network Design
Q11.
A situation in which the desires of channel membersare not sufficiently integrated
channel cooperation
Channel leadership
channel conflict
Correct Answer
channel relationship

Q12.
One of the most innovative and dynamic areas of marketing is;
outbound logistics
Correct Answer
inbound logistics
warehousing
supply chain management

Q13.
The structure which involves the manufacturer, wholesales, dealers or distributors and retailers through which the product or service is marketed is;
production channel
Marketing Channel
Correct Answer
transportation channel
All of above

Q14.
Firms ability to provide timely information to the customer about order status is;
Availabilty
Order Cycle
Communication
Correct Answer
none of above

Q15.
A situation in which the marketing objectives and strategies of two channel members are harmonious is;
channel cooperation
Correct Answer
Channel leadership
channel conflict
channel relationship
 CHAPTER – 5
Supply Chain Planning And Strategies
Q1.
VMI refers to;
vertical managed inventory
vertical management of inventory
Vendor Managed inventory
Correct Answer
vendor model inventory

Q2.
hallow corporations are also known as
vertical integration
Virtual companies
Correct Answer
Keiretsu networks
partnering companes

Q3.
The output of supply chain planning process is;
Supply Chain Planning
Supply Chain Strategy
Correct Answer
final output
master plan

Q4.
Management ensuring about company having right set of suppliers that they are performing and that the company is paying the best possible pricing across the board
Direct material procurement execution
Supply chain collaboration
sales pitch customization
Strategic supply management
Correct Answer

Q5.
strategy formulated to minimize level of capital investment is;
cost reduction strategy
profit increasing strategy
corporate strategy
Capital reduction strategy
Correct Answer
 CHAPTER – 5
Supply Chain Planning And Strategies
Q6.
the cost of producing and delevering a product to customer is;
supply chain efficiency
Correct Answer
cost reduction strategy
Supply Chain Strategy
Supply Chain Planning

Q7.
The partnership having long term horizon is;
joint venture
type2 partnership
Correct Answer
type3 partnership
type 1 partnership

Q8.
Strategy concerened with making optimum use of logistics and supply chain asset or resources is;
Asset productivity strategy
Correct Answer
Technology based strategy
Relationship based Strategy
Time based Strategy

Q9.
strategy formulated to achieve corporate objectives is;
cost reduction strategy
profit increasing strategy
corporate strategy
Correct Answer
decisional strategy

Q10.
Strategy which warehouses keep the stock and supply the items to customers is;
Cross Docking Strategy
warehousing strategy
Correct Answer
diect shipment strategy
relationship based strategy
 CHAPTER – 5
Supply Chain Planning And Strategies
Q11.
the type of supply chain in which the decisions pertaining toproduction and distribution are based on long term forecast is;
Demand -Driven supply chain
Push-Pull Supply chain
Pull-Based Supply Chain
Push-Based Supply Chain
Correct Answer

Q12.
Traditional ways that firm in the supply chainorganisationally relates to one another is;
joint venture
Arm's length relationship
vertical integration
Correct Answer
type 1 partnership

Q13.
The art of general means;
concept
Tactics
Strategy
Correct Answer
decesion

Q14.
Technologies which includes hardware, software and connectivity is;
Asset productivity strategy
Technology based strategy
Correct Answer
Relationship based Strategy
Time based Strategy

Q15.
System which uses the internet to automate the process of dealing with suppliers
Direct material procurement execution
Correct Answer
Supply chain collaboration
sales pitch customization
Strategic supply management
 CHAPTER – 6
Supply Chain Performance Measurement
Q1.
Measure of how effectively purchasing spends is;
Price performance measure
Correct Answer
cost effectiveness measure
purchasing workload
material status and control

Q2.
Process encompassing sourcing various materials is;
Plan
Source
Correct Answer
Make
Deliver

Q3.
Measure use to plan annual administrative budget is
cost effectiveness measure
purchasing workload measure
material status and control
Administrative and control measure
Correct Answer

Q4.
The elapsed lead time from the arrival of purchase requisition to placement of purchase order
General efficiency measure
Purchasing administrative lead time
Correct Answer
purchasing workload measure
material status and control

Q5.
Well defined measure use data that are available and accurate is known as;
Objectivity
Clarity
creativity
Accuracy
Correct Answer
 CHAPTER – 6
Supply Chain Performance Measurement
Q6.
Category having number of dimensions that are important to logistics and supply chain management is;
time
Supporting measures
Quality
Correct Answer
Cost

Q7.
Measuring system relying on quantitative data instead of qualitative is;
Objectivity
Correct Answer
Clarity
creativity
Accuracy

Q8.
Number of measurement criteria in SCM are;
two
three
Correct Answer
four
five

Q9.
An effective method of determining wether or not an organisation is meeting its goal is;
Performance measurement
Correct Answer
measuring inputs
measuring outputs
measurement matrix

Q10.
SCOR refers to;
Supply chain operations reference
Correct Answer
supply chain operation request
supply chain organisation reference
supply chain organisation request
 CHAPTER – 6
Supply Chain Performance Measurement
Q11.
Measuring all activities linked to inputs is;
Performance measurement
measuring inputs
Correct Answer
measuring outputs
measurement matrix

Q12.
Four categories of performance do not include;
time
profit
Correct Answer
Quality
Cost

Q13.
people understand a performance measures requirement is termed as;
Objectivity
Clarity
Correct Answer
creativity
Accuracy

Q14.
Method which uses past data about an activity is;
internal data
external data
historical data
Correct Answer
analytical data

Q15.
measures help to determine the level of resources consumed is;
purchasing workload measure
material status and control
Administrative and control measure
General efficiency measure
Correct Answer
 CHAPTER – 7
Benchmarking The Supply Chain
Q1.
Customer satisfaction can be achieved at the ------of logistics supply chain
Middle
Beginning
Before the end
End
Correct Answer

Q2.
The ultimate yardstick in measuring logistics and supply chain performance is
Customer
Correct Answer
Supplier
Owner
Government

Q3.
________ has the ability to provide specific aspects and levels of service
Default service
Customised service
Correct Answer
Balanced service
No service

Q4.
Time that is spent in process is called as
Diagonal
Perpendicular
Horizontal
Correct Answer
Vertical

Q5.
Comaprision of performance of internal business units is referred to as
Benchmarking
Competitive benchmarking
Process benchmarking
Internal benchmarking
Correct Answer
 CHAPTER – 7
Benchmarking The Supply Chain
Q6.
Logistics supply chain structure is defined through
Diagram
Graphs
Flow chart
Correct Answer
None of them

Q7.
Supply chain maps are also used to provide
External benchmark
Horizontal benchmark
Internal benchmark
Correct Answer
Vertical benchmark

Q8.
Time spent on activity which when eliminated would not lead to any reduction of benefit to the customer is known as
Value less time
Value adding time
Value time
Non value adding time
Correct Answer

Q9.
Quality best practice measure would include
Stock turnover rate
Cost per transaction
Frequency of delivery
Correct Answer
Advice on non availability

Q10.
Time best practice critieria would include
Stock turnover rate
Correct Answer
Cost per transaction
Frequency of delivery
Emerging response
 CHAPTER – 7
Benchmarking The Supply Chain
Q11.
________has the ability t provide fast deliveries
Quick response
Correct Answer
Slow response
Fast response
No response

Q12.
Delivery performance benchmarking is done in case of
Customer
Distributor
Correct Answer
Wholesaler
Retailer

Q13.
Critical dimensions which contribute significantly to the success or failure of the company in the market place is termed as
KPI
Correct Answer
PKI
IPK
None of them

Q14.
Comparison of business processes against those of competitiors is referred as
Logistics
Benchmarking
Correct Answer
Supply chain
Best practice

Q15.
In vertical time only --- is added
Cost
Correct Answer
Value
Cost & Value
None of them
 CHAPTER – 8
Current Issues In Supply Chain Management
Q1.
ECR stands for
Efficient consumer response
Every day consumer response
Correct Answer
Efficient cost record
Every day consumer record

Q2.
_____ aims at service quality
Better
Correct Answer
Worse
Average
Best

Q3.
________ is used to understand how a business process really works by first describing how things are and then by how you want them to be
Dormant modelling
Classic modelling
Activity modelling
Correct Answer
Glamor modelling

Q4.
_____ enables the companies to respond quickly and to be flexible to customers delivery requirements
NIT
KIT
SIT
JIT
Correct Answer

Q5.
Keeping the cost of transporting materials as low as possible constitent with safe and reliable delivery is termed as ______
Logistics
Correct Answer
Supply chain
Balance score card
None of them
 CHAPTER – 8
Current Issues In Supply Chain Management
Q6.
Information about competitors performance is useful to identify where improvement is needed is termed as
Bridge analysis
Short analysis
Gap analysis
Correct Answer
Long analysis

Q7.
_______ is an integrated set of activities designed to achieve high voume production using minimal inventories of raw materials
Lean production
Correct Answer
Mass production
Batch production
Job production

Q8.
Electronic transmission of data between firm and suppliers is called as
DEI
EDI
Correct Answer
DIE
IDE

Q9.
______ structurally changes the way companies will manage their supply chain operations
Unsynchronised supply chain
Synchronised supply chain
Correct Answer
Normal supply chain
Supply chain

Q10.
Demand pull strategies are referred to as
Filled strategies
Super strategies
Dynamic strategies
Replenishment strategies
Correct Answer
 CHAPTER – 8
Current Issues In Supply Chain Management
Q11.
Time spent for an activity that creates a benefit for which customer is prepared to pay
Non value adding time
Value adding time
Correct Answer
Waste of time
Priceless time

Q12.
QRM is similar to
ITJ
IJT
TIJ
JIT
Correct Answer

Q13.
Radical redesign of business processes is termed as
BPR
Correct Answer
PBR
BRP
PRB

Q14.
Customer value is slowly replacing______
Brand value
Correct Answer
Product value
Market value
No value

Q15.
Agility or speed to match supply with demand is known as
Active supply chain
Alert supply chain
Agile supply chain
Correct Answer
Absolute supply chain
 CHAPTER – 9
Supply Chain Challenges For The Future
Q1.
______must be viewed as an investment
Brand
Technology
Correct Answer
Product
Market

Q2.
Hybrid business brings to life idea of
Separate alignment
Combined alignment
Embedded alignment
Correct Answer
Virtual alignment

Q3.
Porters value chain presents
Four primary and Four support activites
Five primary and Five support activities
Four primary and Five support activities
Five primary and Four support activities
Correct Answer

Q4.
Short lead time is major element of
QR
JIT
Correct Answer
ECR
VMI

Q5.
3PL is _____ service provider
Internal
Diagonal
External
Correct Answer
Vertical
 CHAPTER – 9
Supply Chain Challenges For The Future
Q6.
__________eliminates the need for warehouses
Product utilisation
Market utilisation
Customer utilisation
Facility utilisation
Correct Answer

Q7.
Virtual network consortia is also known as
Internet supply chain
Intranet supply chain
Network supply chain
Correct Answer
Combined supply chain

Q8.
Relationship between buyers or between sellers is
Horizontal
Correct Answer
Vertical
Diagonal
Perpendicular

Q9.
Modification of quick response systemthat eliminates the need for replenishment orders is called as
QR
JIT
ECR
VMI
Correct Answer

Q10.
Co owned, co - managed service company are
JSC
Correct Answer
JCS
SCJ
CJS
 CHAPTER – 9
Supply Chain Challenges For The Future
Q11.
ECR ______ the length of time of inventory
Increases
Ignores
Reduces
Correct Answer
Expands

Q12.
Firm can gain market share through
Simple strategy
Differentiation strategy
Correct Answer
Complex strategy
Average strategy

Q13.
SKU stands for
Stock kitchen unit
Stock keeping unit
Correct Answer
Supply keeping unit
Supply kitchen unit

Q14.
Relationship is based on
Dynamic strategy
Push strategy
Pull strategy
Focus strategy
Correct Answer

Q15.
Customer driven system where distributors and suppliers work together as business allies to maximise customer satisfaction and minimize cost is called as
QR
JIT
ECR
Correct Answer
VMI