ogistics Management Multiple Choice Questions

1. ……………….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

2. Which is not a part of basic systems of codifications?

a. Alphabetical System

b. Numerical System

c. Colour Coding System

d. None of the above

Answer: d

3. ……………and physical distribution are the two major operations of

logistics.
a. Supply Chain Management

b. Materials Management

c. Logistics Management

d. None of the above

Answer: b

4. …………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

5. ……………is the task of buying goods of right quality, in the right

quantities, at the right time and at the right price.
a. Supplying

b. Purchasing

c. Scrutinizing

d. None of the above

Answer: b

6. Which of the following is not a component of 4PL?

a. Control Room (Intelligence)

b. Resource Providers

c. Information

d. Recycling

Answer: d

7. Which of the following is not a part of Supply chain Management

system?
a. Supplier

b. Manufacturer

c. Information Flow

d. Competitor

e. Customer

Answer: d

8. ……………………..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

Answer: a

9. Buying according to the requirements is called …………

a. Seasonal Buying

b. Hand to mouth buying

c. Scheduled Buying

d. Tender Buying

e. Speculative Buying

Answer: b

Supply Chain Management Solved Multiple choice Questions.

1. _______ analysis relates to what processes, activities, and decisions actually create costs in your
supply chain.
A. Cost driver
B. Value proposition
C. Cost reduction
D. Target costing
cost driver analysis considers how processes, activities, and decisions actually create costs in the
value chain/supply chain.
2. In the 1980s, Toyota and Honda outcompeted American carmakers because they relied on
suppliers for approximately _______ percent of a car’s value.
A. 30
B. 45
C. 60
D. 80
4.The _______ has made it possible for other companies to eliminate intermediaries and sell directly
to the end consumer.
A. SCM
B. Internet
C. competition
D. global sourcing
The World Wide Web has made it possible for each consumer, sans intermediaries, to access the
sellers in the market place directly. If a business has been constrained by its ability to present itself
directly in the market place, there will be growing opportunities to by pass intermediaries and sell
directly to the end consumer.
5. Value stream mapping is an application of process mapping, developed to apply _______
principles to process improvement.
A. management
B. lean
C. supply chain
D. cycle time
Value stream mapping has supporting methods that are often used in Lean environments to analyze
and design flows at the system level (across multiple processes).
6. 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
7. _______ is a tool to chart how individual processes are currently being conducted and to help lay
out new improved processes.
A. Process mapping
B. Pareto charting
C. Supply chain design
D. Design chain mapping
8.Identify from the following list a major strategic risk associated with outsourcing.
A. Outsourcing landed cost is usually higher than insourcing cost.
B. The supplier is purchased by a competitor.
C. The business loses sight of market trends.
D. The cost of supplied material is passed on to the customer.
9. _______ is the design of seamless value-added processes across organization boundaries to meet
the real needs of the end customer.
A. Operations
B. Supply chain management
C. Process engineering
D. Value charting
10. The impact of cost reduction on profits is much larger than the impact of increased
A. innovation.
B. production.
C. information.
D. sales.

11. _______ considers how your organization competes and is an essential element of corporate
strategy.
A. Value proposition analysis
B. Leadership
C. A consultant
D. A competitor
12. “3PL” involves using a supplier to provide _______ services.
A. marketing
B. design
C. logistics
D. contract manufacturing
Third Party Logistics; using an OUTSOURCED supplier to provide some combination of logistics
activities such as transportation, warehousing, procurement, manufacturing, inventory management,
and customer service.
13. The collective learning in the organization, especially how to coordinate diverse production
skills and integrate multiple streams of technologies, is called
A. innovative constraint.
B. second-tier competency.
C. corporate skill.
D. core competency.
Core competencies are the collective learning in organizations, and involve how to coordinate diverse
production skills and integrate multiple streams o

14. Integration of business economics and strategic planning has given rise to a new area of
study called __________.
A. Micro Economics
C. Corporate Economics
B. Macro Economics
D. Managerial Economics

1. Market logistics planning has ________ steps.

a) Three
b) Four
c) Two
d) None of the above

View Answer / Hide Answer

ANSWER: b) Four

2. Integrated Logistics Systems include

a) Materials Management
b) Material flow systems
c) Physical distribution supported by information technology
d) All of the above

View Answer / Hide Answer

ANSWER: c) Physical distribution supported by information technology

3. The last frontier for cost economies is known as

a) Market facilities
b) Market logistics
c) Market distributions
d) None of the above

View Answer / Hide Answer

ANSWER: b) Market logistics

4. Getting the right goods to the right locations at the right time for the least
cost is known as
a) Market facilities
b) Market logistics
c) Market distributions
d) None of the above

View Answer / Hide Answer

ANSWER: b) Market logistics

5. No system or organization can simultaneously maximize customer service

and reduce distribution cost.

a) True
b) False
c) Can't say
d) None of the above

View Answer / Hide Answer

ANSWER: a) True

6. Total market logistics cost of proposed system depends on

a) Total freight cost of proposed system

b) Total fixed and total warehouse cost of proposed system
c) Total cost of lost sales due to average delivery delay under proposed system
d) All of the above

View Answer / Hide Answer

ANSWER: d) All of the above

7. _______ 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

View Answer / Hide Answer

ANSWER: a) Storage warehouses

8. _________ are meant to receive products from various company suppliers
and plants and move them out as soon as possible.

a) Storage warehouses
b) Distribution warehouses
c) Automated warehouses
d) None of the above

View Answer / Hide Answer

ANSWER: b) Distribution warehouses

9. ___________ 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

View Answer / Hide Answer

ANSWER: c) Automated warehouses

10. Inventory cost____________ at an accelerating pace as the customer-

service level increase move toward 100%.

a) Increases
b) Decreases
c) Stays equivalent
d) None of the above

View Answer / Hide Answer

ANSWER: a) Increases

11. Order processing costs is a sum of running costs and set up costs.

a) True
b) False
c) Can't say
d) None of the above

View Answer / Hide Answer

ANSWER: a) True

12. Order processing costs a unit _________ with the number of units ordered.

a) Increases
b) Decreases
c) Stays equivalent
d) None of the above

View Answer / Hide Answer

ANSWER: a) Increases