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SCM PQ
SCM PQ
Diploma in
Supply Chain
Management
Practice Questions
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Practice Questions
The coordination of all supply activities of an organisation from its suppliers and partners to its
customers is referred to as:
A. Efficient customer response
B.
An appropriate strategy to achieve the objective of optimising the productivity of retail space
and inventory is:
A. Efficient store assortments
B.
Efficient replacement
Operational aim
C. Strategic aim
D. Performance evaluation
4
Supply chain management is all about designing and planning out the overall architecture of the
supply chain network and the value adding flows that go through it.
The key contents of such architecture design and planning includes all of the following except:
A. Extent of vertical integration
B.
Configuration
C. Strategic outsourcing
D. Marketing strategies
5
Purchasing activities
Practice Questions
Services can be classified in several ways. Which of the statements below is correct?
A. A popular way to classify services is based on their physical characteristics
B.
The classification that distinguishes contact intensity, identifies three different services:
professional services, service shop and mass services
C. The way in which a service is classified determines how the customer and supplier should
interact, after the contract has been closed
D. All the statements above are correct
8
Services are differentiated from goods by four basic characteristics. Which of the statements
below is not correct?
A. Intangibility relates to the fact that services cannot be touched
B.
C. Simultaneity relates to the fact that services are produced and consumed at the same time
D. Perishability, relates the fact that once a service is consumed it vanishes
9
Which of the following is not thought to be the rationale for the radical changes in traditional
business and modern business environment?
A. Heightened customer expectation
B.
Globalisation
C. Popularity of outsourcing
D. Geopolitical factors
10
Which of the following flows DOES NOT belong to the intrinsic flows of supply chain?
A. Data flow
B.
Information flow
C. Commercial flow
D. Finance flow
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Practice Questions
12
Supply chain is usually viewed as a chain that has distinct characteristics than group of
companies.
Which of the following does not have resemblance with such characteristics?
A. There has to be more than one participating companies
B.
Which of the flows mentioned below may represent major areas of concerns and research
activities in the supply chain management?
A. Material flow, information flow, finance flow, commercial flow
B.
A chocolate manufacturing supply chain will have the cocoa plucked from cocoa plantation
been transformed through the chain and end up to a pack of CADBURY chocolate ties the
whole supply chain together and define its clear boundary.
Which of the following intrinsic values represent the above situation?
A. Material flow
B.
Information flow
C. Finance flow
D. Commercial flow
15
The intrinsic flow that can run in both directions, i.e. upstream and downstream alike, is which of
the following:
A. Material flow
B.
Information flow
C. Finance flow
D. Commercial flow
16
There are options for restructuring the supply chain. A characteristic of vertical integration is:
A. Total reliance on linked third parties
B.
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Practice Questions
17
The typical aim of the pull from customer approach to supply chain management is:
A. To improve costs of distribution
B.
Single entity perspective of a supply chain is a very useful foundation for supply chain
integration and collaboration. State which one of the following intrinsic flows of a supply chain
represents the single entity concept?
A. Material flow
B.
Information flow
C. Finance flow
D. Commercial flow
19
Within an organisation, material flows from one process to another but as no ownership
changes there is no ____________ flow.
A. Material flow
B.
Information flow
C. Finance flow
D. Commercial flow
20
Which one of the following is not a part of the conceptual components of supply chain
management?
A. Supply chain configuration
B.
Page 5 of 23
Practice Questions
22
Quality filter mapping is a tool used in supply chain management strategies. Which of the
following is INCORRECT regarding to quality filter mapping?
A. It is a tool designed to identify quality problems in the order fulfillment process or the
wider supply chain
B.
The result of a Quality Filter Map shows how much waste is being generated within an
organisation at each stage of the process.
C. It is a tool designed to justify and prioritise quality problems in the order fulfillment process
or the wider supply chain.
D. Results of Quality Filter Mapping are commonly used to feed into continuous improvement
plans.
23
Supply chain configuration is about how a supply is constructed from all its participating firms.
Following are the factors that shape any particular supply chain, except:
A. Downstream distribution channel
B.
A key characteristic of _________ supply chain is flexibility, which should be interpreted from two
side of supply chain.
A. global
B.
lean
C. agile
D. stable
25
Key performance indicator of agile supply chain operating environment is distinctly different
from any other supply chain, for example lean supply chain operating environment.
Which of the following is not a key performance indicator relevant for agile supply chain
operating environment?
A. Delivery lead time
B.
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Practice Questions
26
C. The functions that will see the greatest increase in outsourcing are product development,
supply chain planning and shared services
D. Outsourcing is relatively complex to understand as a concept, but is difficult to implement in
practice.
27
_______________, hardworking, well educated workforce and loyalty to the company become part
of the organizational culture.
A. High motivation
B.
High remuneration
C. High commitment
D. Good working environment
28
The process flow concept helps to see and understand the value stream of the ___________ and
the supply chain.
A. manufacture
B.
work-in-progress
C. finished goods
D. production
29
Much of the supply chain design is determined by the extent of vertical integration. Which one
of the following is the appropriate definition of vertical integration?
A. Vertical integration is defined as the single ownership of consecutive activities along the
supply chain.
B.
Vertical integration is defined as the group of consecutive activities along the supply chain.
C. Vertical integration is defined as the sequential activities along the supply chain
D. Vertical integration is defined as the schedule of consecutive activities along the supply
chain.
30
Bullwhip effect refers to a supply chain-wide phenomenon that modest change of customer
demand is distorted and amplified toward the upstream end of the supply chain resulting in
large variations of orders placed upstream. Basically the bullwhip effect has number of
characteristics.
Which of the following is not a bullwhip characteristic?
A. Oscillation
B.
Amplification
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Practice Questions
C. Dynamic
D. Phase lag
31
The agile supply chain is essentially a practical approach to managing customer networks and
developing ___________ capabilities to satisfy the fast changing customer demand.
A. Required
B.
Flexible
C. Probable
D. Rigid
32
An OEM operates through a layered suppliers and distributers with medium and long-term
stability
ii.
An OEM operates short-term stability and uses un-tiered suppliers and distributors.
Which of the above statement regarding supply chain configuration, when observed from
network relationship perspective, is appropriate?
A. (i) = Dynamic network; (ii) = Stable network
B.
______________ develop and make use of employees intellectual assets and everyone is
encouraged to make improvement suggestions. Which of the following best fill the gap?
A. Just-in-time manufacturing
B.
C. Lean manufacturing
D. Original equipment manufacturing
34
Supplier selection involves a number of steps. Which of the following steps is not part of the
supplier selection process?
A. Determining a bidders list
B.
Sharing of subcomponents across the product lines will lead to effective management of
inventories, consistent supplies and operational cost savings and can be achieved through which
of the following?
A. Products and material standardisation
B.
Practice Questions
36
Structure
C. Systems
D. Shared value
37
Staff
C. Skills
D. Shared values
38
Staff
Page 9 of 23
Practice Questions
C. Skills
D. Systems
39
Structure
C. Systems
D. Skills
40
Structure
C. Systems
D. Shared values
Page 10 of 23
Practice Questions
41
Structure
C. Systems
D. Shared values
42
component map
C. pipeline map
D. statistical map
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Quantity
C. Delivery
D. Consistent supplier
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Small
C. Large
D. Close
Page 11 of 23
Practice Questions
45
Consider the following statements concerning the Triple-A supply chain model.
I.
An organisation and its supply chain can embark on major strategic changes in technology,
market positioning, radical skill upgrading and competence shift.
II.
A supply chain has been structured as such that it remains stable and align all the
complimentary resources.
'The processes of transforming raw materials to finished product delivered to customer's refers
to:
A. The physical transformation task
B.
Virtual integration
C. Vertical disintegration
D. None of the above
48
One choice for an organizers vertical integration strategy related to 'The balance among the
vertically integrated stages' is:
A. To what extent does each stage of the supply chain focus on supporting the immediate
supply chain?
B.
How far should the company take downstream or upstream vertical integration?
C. Should the company aim to direct ownership at the upstream or downstream supply chain
D. None of the above
49
In a facility environment, a gap exists between the expectations of the internal client and the
purchasing department. Which of the statements below is correct?
A. The purchasing department considers timely delivery as a critical factor
B.
Page 12 of 23
Practice Questions
C. The internal client considers a fast response time and feedback as a critical factor
D. The purchasing department considers flexibility and high accessibility as critical factors
50
Consider the statements below about the improvement of customer orientation of the (internal)
purchasing department:
I.
In order to improve the service orientation of a purchasing department, the following steps
should be taken:
II.
1.
2.
Target setting.
3.
4.
5.
Implementation.
When a purchasing department does not live up to the expectations of the internal
client, internal clients may start doing their own purchases.
If observed carefully, one should realise that supply chain management is merely a part of
_________.
A
Finance
B
Marketing Management
C
Operations Management
D
Human Resource Management
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Practice Questions
B
C
D
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Practice Questions
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Holding of inventories can cost anywhere between _________ percent of their value.
A
20 to 40
B
30 to 50
C
10 to 20
D
40 to 50
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65
Which is NOT of the functions that are most difficult to bring under the umbrella of Supply
Chain Management are:
A
Master production planning
B
Sales forecasting
C
Third party invoice payment/audit
D
Procurement of materials
66
Now two major trends are benefiting Supply Chain Management operations. These are
A
Customer service focus and robot technology
B
Customer service focus and Information technology
C
Process management focus and Information technology
D
Customer service focus and diversification
67
68
Which is not an area where supply chain management can have a direct effect on corporate
value
A
Fixed-capital efficiency
B
Working-capital reductions
C
Inventory turnover reduction
D
Global tax minimisation
69
The Kearney consultants found that supply-chain inefficiencies could waste as much as ____
percent of a company's operating costs.
A
20
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Practice Questions
B
C
D
25
30
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70
Through the use of a third-party SCM provider, Nabico was able to consolidate six multi-vendor
loads into two truckloads. This is an example of
A
Shipment consolidation
B
Distribution network optimisation
C
Cross docking
D
Supplier management
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74
For a global supply chain, which of the below is the final thing you need to manage?
A
border crossings
B
multiple hand-offs
C
information
D
uncertainty
75
Sheffi and Peters both agree that there are certain elements that are required to manage any
supply chain regardless of whether its domestic or global.
Which of the below is NOT one of that element?
A
Cost
B
Visibility
C
Technology
D
Flexibility
76
Practice Questions
A
B
C
D
Technology
Customer focus
Visibility
Value
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79
Which of the below is not generally covered by the functionality of a supply chain software?
A
Order Management
B
Accounts Management
C
Return Management
D
Forecasting and Planning
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82
Return management with supply chain management software in place automate the processing
of claims with
A
Suppliers
B
Distributors
C
Insurance companies
D
All available options
83
Which of the below is not one of the Five Most Common Supply Chain Management Challenges
in a global supply chain according to Supply Chain Council (SCC)?
A
Unable to apply the right metrics to manage supply chains effectively
B
Difficulty prioritising supply chain improvement efforts
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Practice Questions
C
D
84
85
Metrics are used to measure the performance of something. The problem of finding and
implementing the right metrics in supply chain management includes A
agreeing on definitions and calculation of right metrics
B
having too many metrics
C
difficulty in coordination
D
difficulty in benchmarking
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Practice Questions
D
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in-or-out decision
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Toyota Production System (TPS), now more commonly known as lean manufacturing. Which of
the below is the main goal of both lean manufacturing and TPS?
A
Making the organisation lean and small
B
Cost reduction by the elimination of waste
C
Increase of sales by more customer focus
D
Outsourcing most of the tasks to increase value
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Practice Questions
D
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Which one is NOT one of the key drivers of lean supply chain?
A
Demand Management
B
Process Standardisation
C
Engaging People
D
Economies of scale
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Practice Questions
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Which is not one of the organisational changes that are required to make an organisation ready
to operate in an agile supply chain?
A
Decentralised operation
B
Using ERP system
C
Building large warehouses
D
Identifying process short-cuts
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According to Vanpoucke and Vereecke, which is not one of the three important behavioural
characteristics that affect an alliances performance
A
its underlying attributes
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Practice Questions
B
C
D
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Practice Questions
SOLUTION
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Answer
D
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B
B
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Answer
B
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Answer
D
D
B
B
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D
B