Multiple Choice Questions (MCQ) on Supply Su pply chain management 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 di rection d. All of the above (Ans:d)
The sequence of a typical manufacturing supply chain is a. Storage– Storage–Supplier Supplier– –manufacturing manufacturing– –storage storage– –distributor distributor– –retailer retailer– –customer b. Supplier Supplier– –Storage-manufacturing Storage-manufacturing– –storage storage– –distributor distributor– –retailer retailer– –customer c. Supplier– Supplier–Storage-manufacturing Storage-manufacturing– – distributor distributor– –storage storage– –retailer retailer– –customer d. Supplier Supplier– –Storage-manufacturing Storage-manufacturing– –storage storage– – retailer retailer– –distributor distributor– –customer (Ans:b)
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)
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)
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 (Ans:a)
VMI stands for a. Vendor material inventory b. Vendor managed inventory c. Variable material inventory
d. Valuable material inventory (Ans:b)
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 (Ans:a)
Distribution requirement planning is a system for a. Inventory management b. Distribution planning c. Both ‘a’ and ‘b’ d. None of the above (Ans:c)
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 (Ans:d)
3-PL stands for a. Three points logistics b. Third party logistics c. Three points location d. None of the above (Ans:b)
Single-sourcing has a number of advantages. Which of the following is NOT an advantage of single sourcing? Your Answer:
Wide sources of knowledge and expertise to tap. Yes, that's correct.
2.
Multiple-sourcing has a number of advantages. Which of the following is NOT an advantage? Your Answer:
Correct Answer:
A wider source of knowledge and expertise is available. More scale economies.
No, that's not correct.
3.
If the operation has minimum inventory and low-cost suppliers and the market requirements are predictable with few changes, that is: Your Answer:
Match
Yes, that's correct.
4.
If the operation has deployed inventory and flexible suppliers and the market requirements are for short lead time and high margins, that is: Your Answer: Correct Answer:
Mismatch Match
No, that's not correct.
5.
If the operation is low cost and minimum inventory and the
market requirements are for stable prices and low lead time, that is: Your Answer:
Match
Yes, that's correct.
6.
Greater dependency encouraging more commitment and effort is an advantage of: Your Answer:
Single sourcing
Yes, that's correct.
7.
Can switch sources in case of supply failure is an advantage of: Your Answer:
Multi-sourcing
Yes, that's correct.
8.
Higher confidentiality is an advantage of: Your Answer: Correct Answer:
Multi-sourcing Single sourcing
No, that's not correct.
9.
Potentially better quality because more SQA possibilities is an advantage of: Your Answer:
Single sourcing
Yes, that's correct.
10.
Professor Lamming defines lean supply as supplying goods in the smallest possible quantities in order to increase flexibility. Your Answer:
False
Yes, that's correct.
11.
EPOS systems used by retailers, stands for electronic point of sale. Your Answer:
True
Yes, that's correct.
12.
Vendor-managed inventory (VMI) is a way to allow an upstream supplier to manage the inventories of its downstream customer. Your Answer: Correct Answer:
False True
No, that's not correct.
13.
All the operations that are linked together to provide goods and services to the end customer arecalled: Your Answer:
The Distribution
Chain Correct Answer: The Supply Network
14.
The emphasis on understanding the end customer in a supply chain has led to some authorities objecting the term ‘supply chain’. Instead they argue they should be referred to as: Your Answer:
Demand chains
Yes, that's correct.
15.
Authorities who object to the term ‘supply chain’ argue that the concept implies a ‘pull’ mentality. Your Answer: Correct Answer:
1.
False
Which of the following is NOT a disadvantage of single-sourcing? Your Answer:
2.
True
(blank)
Kerietsu is a Japanese word for global sourcing. Your Answer: Correct Answer:
True False
No, that's not correct.
3.
A linkage of operations that provide goods and services through to the end customer is called:
Your Answer: Correct Answer:
4.
Correct Answer:
7.
All of the above
Dependability of supply
Which of the following is considered an impact of eprocurement? Your Answer:
It opens up the marketplace to increased competition, but limits the ability to manage suppliers
Correct Answer:
It drives efficiency, opens up the market to competition, and improves the ability to manage suppliers
The concept of materials management originated from purchasing functions that understood the importance of integrating materials flow and its supporting functions. Your Answer:
8.
Decreasing salaries by 25%
Which of the following relates to the short-term ability to supply? Your Answer:
6.
The Supply Chain
If total sales for a company are £10,000,000 the cost of purchase goods and services i s £7,000,000 salaries are £2,000,000 and overheads are £500,000, profits can be doubled by: Your Answer:
5.
The Logistics Network
True
The volume and value of purchases of goods or services typically increase as organisations concentrate on their ‘core’ tasks Your Answer: Correct Answer:
False True
9.
‘Logistics' covers a smaller proportion of the supply chain than ‘Physical distribution management' Your Answer:
10.
False
The larger the level of material costs as a proportion of total costs, the greater the effect on profitability of a reduction in material costs. Your Answer: Correct Answer:
11.
True
E-Procurement is a generic term used to describe the use of electronic methods in every stage of the purchasing process from identification if need through to payment, and even contract management. Your Answer: Correct Answer:
12.
False
False True
In attempting to reduce inventory in the supply chain as a whole, the supply chain manager must focus attention on: Your Answer:
End customers
Correct Answer: ‘Bottle
neck’ businesses
No, that's not correct.
13.
The idea of identifying waste al ong the whole supply chain, especially in the form of unnecessary inventory, is the basis of what concept? Your Answer: Correct Answer:
Effective supply chain Lean supply chain
No, that's not correct.
14.
What is the well-accepted term for the function that deals with the operation’s interface with its supplier
markets? Your Answer: Correct Answer:
Logistics Purchasing and supply management
No, that's not correct.
What is the term commonly used to refer to the extension of physical distribution management?
15.
Your Answer: Correct Answer:
Downstream supply management Logistics
No, that's not correct.
Which of the following is NOT a disadvantage of single-sourcing? Your Answer:
2.
(blank)
Kerietsu is a Japanese word for global sourcing. Your Answer: Correct Answer:
True False
No, that's not correct.
3.
A linkage of operations that provide goods and services through to the end customer is called: Your Answer:
Correct Answer:
The Logistics Network The Supply Chain
4.
If total sales for a company are £10,000,000 the cost of purchase goods and services is £7,000,000 salaries are £2,000,000 and overheads are £500,000, profits can be doubled by: Your Answer:
Decreasin g salaries by 25%
All of the Answer: above Correct
5.
Which of the following relates to the short-term ability to supply? Dependabilit Answer: y of supply Your
6.
Which of the following is considered an impact of eprocurement? Your Answer:
It opens up the marketplac e to increased competitio n, but limits the ability to manage suppliers
It drives Answer: efficiency, opens up Correct
the market to competitio n, and improves the ability to manage suppliers
7.
The concept of materials management originated from purchasing functions that understood the importance of integrating materials flow and its supporting functions. Your Answer:
8.
True
The volume and value of purchases of goods or services typically increase as organisations concentrate on their ‘core’ tasks Your Answer: Correct Answer:
9.
True
‘Logistics' covers a smaller proportion of the supply chain than ‘Physical distribution management' Your Answer:
10.
False
False
The larger the level of material costs as a proportion of total costs, the
greater the effect on profitability of a reduction in material costs. Your Answer: Correct Answer:
11.
True
E-Procurement is a generic term used to describe the use of electronic methods in every stage of the purchasing process from identification if need through to payment, and even contract management. Your Answer: Correct Answer:
12.
False
False True
In attempting to reduce inventory in the supply chain as a whole, the supply chain manager must focus attention on: Your Answer:
End customers
Correct ‘Bottle Answer: neck’
businesse s No, that's not correct.
13.
The idea of identifying waste along the whole supply chain, especially in the form of unnecessary inventory, is
the basis of what concept? Your Answer:
Correct Answer:
Effective supply chain Lean supply chain
No, that's not correct.
14.
What is the well-accepted term for the function that deals with the operation’s interface with its supplier markets? Your Answer:
Logistics
Purchasing Answer: and supply manageme nt Correct
No, that's not correct.
15.
What is the term commonly used to refer to the extension of physical distribution management? Your Answer:
Correct
Downstrea m supply manageme nt Logistics
Answer:
No, that's not correct.
Which of the following is NOT a disadvantage of single-sourcing? Your Answer:
Less easy to develop effective SQA. Yes, that's correct.
