OME752-SCM- UNIT_01 -_05 MCQ`s with answers

List Areas that manager of the Companies in any supply chain must make decisions individually and
collectively for improving performances?

Production-Inventory-Location-Information

b) Process-Supply-Customer-Business

c) Retail-services-network-profit

d)Shipping-develop-sell-buy

Typical supply chain may involve a variety of stages, including

a) Customers- Retailers- Wholesalers- Manufacturers- Component/raw material suppliers

b) pricing- product variety-product –availability

c) Supplier–Storage-manufacturing– distributor–storage–retailer–customer

d)Network-Raw-material-Customer

Lsit the process views of Supply-Chain?

Product and process

b)Cross-functional view & Vertical view

c)Logical and hierarchical -view

d)Push/Pull & Cycle-view

The main objective of supply chain management?

a) To have the right products -at the right place- at the right moment at minimal cost.

b) To have the costlier products – at any place -at minimal cost.

c) To deliver the high end products – at any place -at minimal cost

d) To sell branded products – at right place –at efficient cost

What are three basic decisions to make regarding the creation and holding of inventory?

a)Supportive Inventory &Qualitative Inventory

b ) Cycle Inventory - Safety Inventory- Seasonal Inventory

c) Inventory for Business management

d) marketing Inventory control

Information is used for two purposes in any supply chain?

a) Finding similar products.

b) b. Facilitating wholesalers inventory selections

c) Creating synergy in their training programs

d)Coordinating daily activities & Forecasting-planning

The goal or mission of supply chain management can be defined?

a)Increase throughput & reducing inventory and operating expense

b) Process-Supply-Customer-Business

c) Facilitating wholesalers inventory selections

d) Finding similar products

Which is not a component of sourcing decisions?

a) In house or outsource
b) Supplier selection

c) Procurement

d)Product design

What is a strategic fit??

a) Consistency between competitive strategy & supply chain strategy

b) value a supply chain generates

c) To be able to have the right products in the right quantities

d) Action plans to response to a customer order

A supply chain is a sequence of firms that perform 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

An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for

a)Order processing, transportation scheduling, and inventory management

b)cost-effective flowing of raw materials

c)future purchasing of computer systems

d)future merger opportunities

A ____________ encompasses all activities associated with the flow and transformation of goods
from the raw material stage, through to the end user, as well as the associated information flows
a)production line

b)supply chain

c)marketing channel

d)warehouse

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

All of the above

The Non- Financial measures in Strategic sourcing of performance measures requires?

a. Cost-Revenue-Inventory-credits

b. Cycle time, customer service level, inventory levels, resource utilization

c. Penality-Stock-Labor-Technology-Capital

d. Productivity-Goods-Supply-Customers

The two types of lead times that supports performance measures in supply chain involves?

A. Back order time and Supplier lead time

b. Cycle time & Dock time

c. Lead Time to services and Lead Time to respond

d. Supply chain Lead Time & Order-to-delivery Lead time

three measures to gauge performance of customer service level in a supply chain is marked as

a) Order fill rate –stock out rate-back order level and On-time delivery

b) Raw materials- Work in progress- spare parts

c) storage of goods – raw materials - logistics

d) Maintenance – locations – stock –storage of goods

Examination of supplier services analysis by the survey team verifies the customer demand analysis
in the areas that involves ?

A. Reliabilty –legibility--flexibility

b. Transparency –availability -usability

c. Availability – orderability -visibility

d. Feasibility – Capability –Maturity –Capacity

A restaurant is an example of a

a. major service with accompanying goods and services

b. hybrid

c. pure service

d. pure tangible good

----- is Consistency between customer priorities of competitive strategy & supply chain capabilities
specified by the supply chain strategy?

customer relationship management

b) Supplier relationship management?

c) Strategic fit
d) Maintenance
On which dimensions should the performance of a distribution network be evaluated at the highest
level?

A. Profitability of individual supply chain components

B. Cost of meeting customer needs

C. Customer needs that are met

D. C and B only
The number of different products/configurations that a customer desires from the distribution
network is

A. Response time.

B. Product variety.

C. Product availability.

D. Customer experience.

When designing supply chain networks, companies must account for fluctuations in

A. exchange rates

B. demand

C. freight and fuel costs

D. All of the above

A firm’s ____________ focus on cost leadership tend to find the lowest cost location for their

A. Competitive Strategy

B. Production Technology
C. Political Factors

D. None

Facility location decisions have a long-term impact on a supply chain’s performance because

A. Expensive to shut down a facility or move it to a different location

B. Inexpensive to shut down a facility or move it to a different location

C. Poor utilization

D. None of the Above

Supply chain network design decisions include the location of manufacturing, storage,
transportation related facilities and allocation of capacity and the role to each facility .

A. True

B. False
_______is an example of a company that through trial and error adapted its distribution network to
take advantage of the Internet along with its existing retail store network.

A. Wal-Mart

B. Blockbuster

C. Border

D.None

Factors affecting network design decisions

A. strategic factor

B. micro economic factor

C. competitive factor
D. all the above

Compared to all distribution networks, Transportation costs are higher for

A. Drop-shipping

B. In-transit merge

C. Carrier Delivery

D. Last-mile Delivery

Good Response times are achieved with retail systems because of

A. Local Storage

B. Distributor’s supply

C. Quick response

D. Government’s support

The main advantage of in-transit merge over drop-shipping is

A. Lower Transportation Costs

B. Improved Customer Experience

C. Both A,B and additional effort to merge

D. Both A & B

In manufacturer storage with direct shipping, the transportation costs are higher because of

A. Fuel costs

B. Demand for freight

C. Increased distance and disaggregate shipping

D.Government Regulation

The major advantage of drop shipping is

A. ability to centralize inventories at the manufacturer

B. Increased Customer services

C. Increase in cost of goods sold

D. Higher Fulfillment costs

What is one major fear of managers when they decide to outsource their logistics function?

a. The achievement of cost savings

b.Transfer of fixed costs and capital investments into variable costs and expenditure

c. Increasing the scale and scope of operations

d.Loss of operational control and reduced contact with customers

The option in which the product is shipped directly from the manufacturer to the end customer,
bypassingthe retailer is called as

A. Drop-shipping

B. In-Transit Merge

C. Carrier Delivery

D.Last-mile Delivery

Outboundtransportation costs per unit tend to be higher than inbound costs because

A. Inbound sizes are larger

B. Inbound sizes are smaller

C. More Number of facilities

D. Less Number of facilities

Distributors play a much more significant role for consumer goods distribution in a country such as
India compared to theUnited States.

A. True

b.False

The profitability of the delivery network is decided by

A. Customer needs that are met

B. Costs of meeting the customer’s needs

C. Both A & B and including customer service

D. Both A & B

Supply network design is important because:

A. It allows organisations to reduce the number of suppliers.

B. It improves the relationship between internal and external suppliers.

C. Every operation is part of a larger and interconnected network of operations.

D.It allows marketing more influence over the choice of suppliers

A decrease in the response time should _______ the number of facilities in the network

A. Increase

B. Decrease
C. Could not be determined

D.Depends on location

Response times are slightly _______ in in-transit merge.

A. High

B. Low

C. Vary based on location

D.None of the Above

The movement of product from one location to another as it makes its way from the beginning of a
supply chain to the customer's hands is referred to as

A.transportation.

B) retailing.

C) distribution.

D) manufacturing
A warehouse that emphasizes speed and efficient product flow to hold goods for short periods of
time and move them out as soon as possible:

A.is a storage warehouse.

B) is a freight forwarder.

C) is a distribution centre.

D) isCanada,
Air an inventory expediting centre
a Montreal-based airline, uses its excess storage capacity on passenger flights to Europe
to haul cargo. It typically collects several small shipments consigned to a common European
destination. Shipment schedules are mandated by the passenger side of its business. Air Canada is

A) third-party service provider.

B) freight forwarder

C) vendor-managed logistics expert.

D) import agent

Combining different transportation modes in order to get the best features of each is called:

A.freight forwarding.

B) dual distribution.

C) intermodal transportation.

D) bimodal logistics.

Lead time is:

A) also called Order-cycle time & replenishment time.

B) typically more important to resellers than to consumers.

C) defined as the time that passes from ordering an item until it is received and ready for use or sale.

D) accurately
In Canada, described
Coca-Cola by all of the
Beverages hasabove
rolled out new marketing, technologies, and packaging to
outmaneuver private-label Canadian cola bottlers, which have captured considerable market share.
Coke will bring in a new just-in-time distribution system based on unit trains and cross-docking sales

A) Cross-docking will allow Coca-Cola to greatly reduce the need to store and warehouse products.

B) The use of cross-docking means Coca-Cola will rely more on business-to-business marketing.
C) The use of cross-docking means Coca-Cola will implement the customer service concept in its
relations with ultimate consumers.

D) Cross-docking will allow Coca-Cola to use less freight forwarding.

An online retailer like Amazon.com relies on an efficient supply chain. The development of its supply
chain supported its clearly defined marketing strategy and began with:
A) inventory forecasts.

B) a logistics mission statement.

C) the mature stage of the product life cycle.

D) understanding the customer

Air freight is costly, but its speed may create savings because of:

A) the extensive availability of airports

B) lower inventory.

C) getting to store shelves before water carriers.

D other transportation modes take more time

There are five basic transportation modes. They are air carrier, motor carrier, and:

A) pipelines, railways an water carriers

B) railways, ocean vessels and dirigibles

C) trucks, canals and robotics

D) water routes, railways and trucks

Lead time and order cycle time are the same as:

A) customer service time

B) supply chain flow

C) logistical clockage

D) replenishment time
Direct Shipment network to single destination serves the best only when the demand at buyer's
location is________

A. High

B.Low

C. Based on customer's willingness

D. Based on customer segments in that particular location

Which of the following firm uses milk run to support its manufacturing operations?

A. Walmart

B. Seven Level Japan

C. Dell

D.Toyota

Identify the important infrastructure required to coordinate all operations in a tailored network.

A. Transportation

B. Inventory

C. Facility

D. Information

Faster modes of Transporation is chosen for products with

A. High value and Large weights

B. Low value and less weights

C. High value and Less weights

D. Low value and Large weights

Modes with higher transporation costs are better if there is _____________

A. Lower Unit Costs

B. Higher Unit Costs

C. Higher Inventory Costs

D.Lower Inventory Costs

Inventory Aggregation is good for products with__________

A.Large value-to-weight ratio and high demand uncertainty

B.Small value-to-weight ratio and high demand uncertainty

C.Large value-to-weight ratio and low demand uncertainty

D.Small value-to-weight ratio and low demand uncertainty

Which kind of transport would be better in case of safety inventory used to satisfy a customer's
requirements?

A. Slower

B. Faster

C.Cheaper

D. Expensive

Replenishment of cycle inventories are done using________ mode of transport.

A. Slower

B. Faster
C.Cheaper

D. Expensive

The good mitigation strategy to stand against natural disruptions is ____________

A. Alternate routes to reach destination

B. Using Modified containers

C. Bringing timely delay in shipments

D.None of These

Which of the following mode of transports does not have a significant impact on transportation?

A. Airports

B. Ports

C. Water

D.Roadways

Once the design of a product is complete, the next process to commence is __________

A. Production

B. Planning

C.Procurement

D. Pricing

Which of the following companies did not follow inhousing of retailing?

A. Dell
B. Procter & Gamble

C. Apple

D. Motorola

Which of the following should not be true for making sourcing decisions?

A. Halting operations at manufacturing side or price rise

B. Aggregating orders within a firm

C. Using auctions

D. Coordination with supplier for forecasting and planning

Choose the incorrect supplier characteristic among the given options.

A. Lead Time

B.Design capability

C. Lack of co-operation with third party

D.Quality

How does a third party increases supply chain surplus?

A. Making suitable planning decisions

B.Decreasing the cost and increasing the quality of a product

C. Establishing a interface for communication with the customer group

D. Using well-defined marketing strategies

Which factor would not contribute to growth in supply chain surplus by a third party?
A. Demand Uncertainty for a firm

B. Shortage of capital

C. Firm scale

D. None of the above

Infer the factor making hard for long supply chains.

A. Aggregation

B. Outsourcing

C. In-housing

D. Design Collaboration

Find the service provided by 3PL.

A. Worldwide Track and Trace

B. Facility allocation

C.Order processing systems

D. Maintenance services

4PL aids a firm with________

A. Improved warehousing operations

B.Logistics

C. Material handling mechanisms

D. Process Aggregation
Which is the major component of delivery costs?

A.Delivery frequency

B.Packaging

C. Transportation Network

D.Unit sizes

Name the firm which is influenced by Bullwhip effect.

A. Amazon

B.Barilla

C.Dell

D. Walmart

Bullwhip effect can result in high replenishment lead times.

A. True

B.False
The lack of coordination makes the___________ to decrease thus affecting the performance of
supply chain.

A.Level of product availability

B.Replenishment Lead times

C.Inventory Costs

D.Transportation Costs

Which of the given obstacles will reduce the total profit for a supply chain?
A. Incentive obstacles

B.Operational obstacles

C.Information-processing obstacles

D.Behavioural obstacles

Shipments made during peak period________ than that of sales during the peak period.

A.Increases

B.Decreases

C. May vary based on the demand

D.None of the above

Whch stage in the supply chain helps for forecasting the demand?

A. Customer

B. Retailer

C.Wholesaler

D.None of the above

What would affect the overall supply chain performance?

A.Pricing Fluctuations

B.Rationing and shortage gaming

C.Lack of Trust

D.Large replenishment lead times

How many activities are to be the part of bringing collaboration among buyers and suppliers?

A. 2

B. 3

C. 4

D.5

P&G has implemented retail event collaboration with___________

A. Amazon

B. Wal-Mart

C. Seven Eleven Japan

D. None of the above

Which of the following would arise risk among CPFR partners?

A. Replenishment process

B.Situations of demand uncertainty

C.Natural Disruptions

D.Information misuse

____________ is the driver which has more significance to the overall supply chain performance.

A. Transportation

B. Facility

C. Inventory
D.Informatiom

Determine the incorrect characteristic of an information.

A. Accuracy

B. Accessibility

C. Incomplete

D.Reliable

Analysis of data helps for decision making resulting in____________________

A.Ensuring Quality of a product

B.Good Customer Service

C. Coordinating all operations within the supply chain

D. Maximising the profit

Information is used for making variety of decisions across the different drivers in the supply chain.

A. True

B. False

Pricing policies are based on the information about____________.

A. Demand of products

B. Demand of customer segments

C. Supply issues

D. All of the above

_________ consists of processes that focus on downstream interactions.

A. CRM

B. ISCM

C. SRM

D. All of the above

_________ consists of processes that focus on upstream interactions.

A. CRM

B. ISCM

C. SRM

D. All of the above

Good SCM is successful even when one stage in the supply chain increases profit at the expense of
others.

A. True

B. False
Name the company which has been successful in their interaction with customers and also in retail
operations.

A. Amazon

B. Dell

C. Apple

D. Walmart

____________ is said to be the major process which helps the firm to get connected to its customers.
A. Marketing

B. Order Processing systems

C. Sales

D. Service centers

Which is not to be true to improve the sell process?

A.Automation

B.Configuration

C. Personalization

D.Customization

Proper integration between ISCM and ________ is required in order to fulfill the demand.

A. CRM

B. SRM

C. Both A & B

D. None of the above

Identify the tool that would not support demand management.

A. Pricing

B. Promotion

C.Marketing

D. None of the above

The process which are dependant on suppliers is______________

A.Strategy planning

B.Demand planning

C. Source planning

D.Supply planning

The number of processes supporting SRM are__________

A. 4

B.5

C.6

D.8

Higlight the macroprocess that supports for design and execution of auctions.

A. CRM

B. ISCM

C. SRM

D. None of the Above

Better application is required to support collaboration over

A.Sourcing

B. Coordination

C. Forecasting
D.Pricing

Name the company which is the best Software vendor for ISCM processes.

A. Oracle

B. Sage Group

C. Microsoft

D.Infor Global solutions

Smarter and faster decisions could be done using _______________.

A. Saas platform

B. Real Time Information

C. Mobile devices

D. Customer service

Risk mitigation strategies for the use of IT in a supply chain can be____________

A. Data backup systems

B. Security Applications

C. Flexible Picking systems

D.All the above