A.V.C.

COLLEGE OF ENGINEERING, Mayiladuthurai, Mannampandal

Department of Information Technology

OME752 - SUPPLY CHAIN MANAGEMENT

MCQ - UNIT 1

Class : IV Year / VII Sem Date: 23.8.2020

S.No Questions with Answers

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

(Ans:d)
2) The supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production

Ans: a) marketing
3) The supply chain management philosophy emerged in which decade?
a) 1960's
b) 1970's
c) 1980's
d) 1990's

Ans: c
4) "A network of manufacturers and service providers that work together to convert and move
goods from the raw materials stage through to the end user" is the definition of

a) Supply chain.
b) Operations management.
c) Service operations.
d) Operations function.

Ans: A. Supply chain.

5) From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products
wanted by ________ Channel members.
a) manufacturers
b) marketers
c) distributors
d) consumers

Ans: c) distributors
6) The sequence of a typical manufacturing supply chain is

a. Supplier–distributor–retailer–customer
b. Supplier-manufacturing–distributor–retailer–customer
c. Supplier–Storage-manufacturing– distributor–storage–retailer–customer
d. Supplier–Storage-manufacturing–storage– retailer–distributor–customer

(Ans:b)
7) Companies manage their supply chains through ________.
a) information
b) transportation modes
c) competitors
d) the Internet

Ans: d) the Internet

8) 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

Ans: c) suppliers and customers

9) 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

(Ans:c)
10) 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

(Ans:d)
11) 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

Ans: d) just-in-time logistics

12) 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
 Ans: a) provide customer satisfaction

13) 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

Ans: d) all of the above

14) Which of the following is not a part of supply chain management system?
a) supplier
b) manufacturer
c) information flow
d) competitor

Ans: d) competitor

15) "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

Ans: b) A user-based definition of quality

16) . …………is the time that elapses between issuing replenishment order and receiving the
material in stores.

a. Replenishment time
b. Lead time
c. Idle time
d. None of the above

Answer: b
17) ……………….includes design and administration of systems to control the flow of
materials, WIP and finished inventory to support business unit strategy.
a. Logistics Management
b. Materials Management
c. Bill of Materials
d. None of the above

Answer: Logistics Management

18) A supply chain is made up of a series of processes that involve an input, a _______, and an
output.
A. shipment
B. supplier
C. customer
D. transformation

Ans: D. transformation
19) The impact of cost reduction on profits is much larger than the impact of increased
A. innovation.
B. production.
C. information.
D. sales.

ans: D. sales.
20) The ___________ encompasses all activities associated with the transformation of goods
from the raw-material stage, when the goods and services reach the end customer.

a) Supply chain.
b) Operations management.
c) Service operations.
d) Operations function.

Ans: a) Supply chain.