OSCM Merge @vicky

LOGISTIC SUPPLY AND CHAIN MANAGEMENT
MULTIPLE CHOICE QUESTIONS:
1.……………………., production control and physical distribution are the three major
operations of logistics.
a. Supply chain Management

b. Materials Management
c. Logistics Management
d. Personal Management
Answer: b. Materials Management
1. Which of the following is not an area to responsibilities for a logistics manager?

a. Inventory
b. Marketing
c. Warehousing
d. Purchasing
Answer: b. Marketing
2. DRP stands for

a. distribution requirement planning
b. dividend requirement planning
c. distribution resource planning
d. distribution reverse planning
Answer: a. distribution requirement planning
3. Which of the following is not a component of 4 PL?

a. control room
b. resource providers
c. information
d. recycling
Answer: b. Resource Providers
4. ……………….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. Distribution Management
Answer: a. Logistics Management

5. …………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. Replacement Time
Answer: b. Lead Time
6. In Railway transportation the ownership in with…………….

a. Manufacturer
b. Third Party
c. Buyer
d. Government
Answer: d. Government
7. ……………..is a part of development of facility structures.

a. Transportation
b. Warehousing
c. Sorting
d. Logistics
Answer: b. Warehousing
8. The first thing that the consumer will notice about the product is the …………. Of the
product.
a. Price
b. Packaging
c. Expiry date
d. Bar code
Answer: b. Packaging
9. …………….. concept is similar to the concept of unitization and has the similar objective of
space reduction
a. Logistical Packaging
b. Cube Minimization
c. Building block
d. Palletizing
Answer: b. Cube minimization
10. The objective of performance measure is to achieve a ……………

a. Benchmark
b. Perfect distribution
c. Perfect order
d. Goal
Answer: c. Perfect order.

11. RO-RO concept means:…………
a. Roll on – Ride Off
b. Ride on- Ride off
c. Roll Off- Roll on
d. Roll on- Roll off
Answer: d. Roll on- Roll off
12. The sequence of a typical manufacturing supply chain is

a. Storage–Supplier–manufacturing–storage–distributor–retailer–customer
b. Supplier–Storage-manufacturing–storage–distributor–retailer–customer
c. Supplier–Storage-manufacturing– distributor–storage–retailer–customer
d. Supplier–Storage-manufacturing–storage– retailer–distributor–customer
Answer: b. Supplier–Storage-manufacturing–storage–distributor–retailer–customer
13. 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
Answer: c. integrating supply and demand management
14. …………..refers to supply chain practices that strive to reduce energy and environmental
footprints in terms of freight distribution.
a. Inbound Logistics
b. Green Logistics
c. Outbound Logistics
d. SCM
Answer: b. Green Logistics
15. …………..involves streamlining the distribution process in terms of physical and

information efficiency.
a. Technical Integration
b. Channel Integration
c. Channel Hierarchy
d. Vertical Marketing System
Answer: b. Channel Integration
16. ……………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. Scrutinizing
c. Selling
d. Purchasing
Answer: d. Purchasing
17. ……………………..is the provision of service to customers before, during and after a
purchase.
a. Customer Service
b. Product Management
c. Purchase management
d. Logistics Management
Answer: a. Customer Service
18. …………..is a function of re-arranging and re- packing as per individual orders.
a. Break- Bulk
b. Warehousing
c. Cross Docking
d. Sorting
Answer: c. Cross Docking
19. Break-Bulk warehouse performs ………function.

a. Warehousing
b. Collecting
c. Sorting
d. Supply
Answer: c. Sorting
20. The term ………….refers to any idle resources that can be put to some future use.
a. Inventory
b. Warehousing
c. Logistics
d. Procurement
Answer: a. Inventory
21. ………………is related with a single manufacturing location, not multiple manufacturing
centres.
a. Safety Stock
b. EOQ
c. ROL
d. Decoupling
Answer: d. Decoupling
22. Properly designed …………..helps in reducing total logistical cost.

a. Logistics
b. Warehouse
c. Distribution
d. Logistical network
Answer: d. Logistical Network
23. ……………is a kind of distribution strategy.

a. RORO
b. LASH
c. Milk Run
d. LNA
Answer: c. Milk Run
24. VMI stands for

a. Vendor material inventory
b. Vendor managed inventory
c. Variable material inventory
d. Valuable material inventory
Ans: b. Vendor managed inventory
25. 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. location, production, distribution, inventory
26. ………….is concerned with a firm’s ability to satisfy customer’s requirement in timely
manner.
a. Minimum Inventory
b. Price stabilization
c. Quality
d. Rapid Responses
Answer: d. Rapid Responses
27. The purpose of ……….is to arrive at a realistic projection of demand patters across different
market and for different product lines.
a. Demand forecasting
b. Speculation
c. Logistics
d. Supply chain management
Ans: a. Demand forecasting
28. Buying according to the requirements is called …………

a. Seasonal Buying
b. Scheduled Buying
c. Tender Buying
d. Hand to mouth buying
Answer: d. Hand to mouth buying
29. Following is not type of Piggy-Back……………..

a. LASH
b. TTFC
c. COFC
d. TOFC
Answer: a. LASH
30. Special purpose material handling equipment are used in ………….

a. Line layout
b. Process layout
c. In-land layout
d. Warehousing
Answer: a. Line layout
31. The ………….system should be designed after analysing the needs for the organization.
a. Warehousing
b. Logistics
c. Material handling
d. Distribution
Answer: c. Material Handling
32. EOQ is that order quantity which result in …………total inventory cost.
a. Maximum
b. Minimum
c. Carrying
d. Average
Answer: b. Minimum
33. Re-order level depends upon two factors, lead time and ……….
a. Inventory
b. Warehouse
c. Procurement
d. Safety stock
Answer: .d. Safety Stock
34. ………….is the invisible element in the system which is the facilitator of other function.
a. Information
b. Logistics
c. EDI
d. ADC
Answer: a. Information.
35. ……………is developed to identify marketing and financial objectives of the firm.
a. LIS
b. Strategy
c. Plan
d. Information System
Answer: b. Strategy
36. ………..is most suitable for remote and hilly areas.

a. Road transport
b. Railway transport
c. Water transport
d. Pipeline
Answer: a. Road transport
37. …………is the fastest mode of transport.

a. Road transport
c. Water transport
d. Air Transport
Answer: d. Air transport
38. When air transport is used in combination with road or rail transport, it is called……….
a. Piggy Back
b. Fishy back
c. Birdy back
d. Land bridge
Answer: c. Birdy back
39. ………….means using land transport i.e. rail or road transport to connect two separate
water transport.
a. Piggy Back
b. Fishy back
c. LASH
d. Land bridge
Answer: d. Land bridge
40. …………are used for vertical movement of materials, generally from one floor to another.
a. Conveyor belts
b. Cranes
c. Elevators
d. Towlines
Answer: c. Elevators
41. ………..can move carton loads or pallet loads horizontally or vertically.

a. Conveyor belts
b. Cranes
c. Elevators
d. Forklift trucks
Answer: d. Forklift trucks

42. Customer service create time and ………. utility for the customer.
a. distribution
b. supply
c. place
d. sales
Answer: c. Place
43. …….. represent the frequency of satisfying customer order in given span of time.
a. order cycle time
b. fill rate
c. perfect order
d. system flexibility
Answer: b. Fil Rate
44. Intermediaries play an important role in matching…………..

a. product to tegion
b. demand & supply
c. information & promotion
d. dealer with customer
Answer: b. Demand & Supply
45. …………analysis, parameters for classification of inventory is unit price of material.

a. ABC Analysis
b. EOQ
c. HML Analysis
d. GOLF
Answer: c. HML Analysis
46. In ……….analysis, classification parameter is nature of source of supply.

a. ABC
b. EOQ
c. HML
d. GOLF
Answer: d. GOLF
47. Market logistics planning has ________ steps.

a. Three
b. Four
c. Two
d. Five
Answer: a. Three
48. Which of the following is not included in logistics process.

a. Implementing the plan for flow of goods & services.
b. planning the physical flow of goods & services
c. Controlling the physical flow of goods services & information.
d. gathering customer ideas for new product
Answer: d. gathering customer ideas for new product
49. 3-PL stands for

a. Three points logistics
b. Third party logistics
c. Three points location
d. The Party Logistics
Answer: b. Third Party Logistics
50. Which of the following is not a part of supply chain management system?
a. Supplier
b. Manufacturer
c. Information Flow
d. Competitor
Answer: d. Competitor
51. The ………….component is long range general movement in periodic sales over sufficient
long period of time.
a. Demand
b. Sales
c. Price
d. Trend
Answer: d. Trend
52. The ……………. Forecasting approach is a decentralized approach.

a. Demand
b. Trend
c. Supply
d. Bottom up
Answer: d. Bottom Up
53. ……………….is the process of planning implementation and control of transportation

services to achieve organization goals.
a. Logistics Management
b. Transportation Management
c. Supply Chain Management
d. Distribution Management
Answer: b. Transportation Management
54. Transportation serves as a ……………. During the movement of product.

a. In-transit storage
b. Warehouse
c. Product storage
d. Movement
Answer: a. In-transit storage
55. The………… type of material handling system is the simplest and cheapest form of material
handling system.
a. Manual system
b. Mechanized system
c. Semi-automated system
d. Automated system
Answer: a. Manual System
56. Conveyor belt facilitate continuous movement of material over a ………. Route.
a. Fixed
b. Flexible
c. Rotational
d. Safe
Answer: a. Fixed
57. A………is a set of customer service goals which are to be achieved within a specific
combination or mix of products and customer segment.
a. Mission
b. Objective
c. Vision
d. Target
Answer: a. Mission
58. ABC focuses on…………..activities.

a. Important
b. Individual
c. Logistics
d. Procurement
Answer: b. Individual
59. …………….is the method of sorting, transporting and distributing products in unitized or
standardized form in a container.
a. Cold chain logistics
b. ICD
c. Containerization
d. DFC
Answer: c. Containerization
60. …………..occurs when a company retains another business to perform some of its work
activities.
a. Outsourcing
b. KPO
c. 3PL
d. 4PL
Answer: a. Outsourcing
61. ……………..is the most economical mode of transportation.

a. Road transport
c. Water transport
d. Air transport
Answer: c. Water transport
62. ………….is the most suitable for transportation of fluids.

a. Road transport
c. Water transport
d. Pipeline
Answer: d. Pipeline
63. ………….cost is one-time costs.

a. Fixed
b. Variable
c. Joint
d. Common
Answer: a. Fixed
64. ………….cost is directly proportional to the volume of activity.

a. Fixed
b. Variable
c. Joint
d. Common
Answer: b. Variable
65. ………….comprises of raw materials, components, and fuels, etc. which are required to
facilitate manufacturing operations.
a. Raw material inventory
b. Work in process inventory
c. Finished goods inventory
d. Average inventory
Answer: a. Raw material inventory
66. ………… is not the type of inventory based on inventory position in the supply chain.
a. Supplier
b. Manufacturer
c. Retailer
d. Customer
Answer: d. Customer
67. The objective of outbound supply chain is to make the product available to the………
a. Customer
b. Retailor
c. Whole seller
d. Supplier
Answer: a. Customer
68. Supply chain management has its own origin in operation of …….. Enterprise.
a. Business
b. Trading
c. Non profit
d. Social
Answer: a. Business
69. DRP stands for

a. distribution requirement planning
b. dividend requirement planning
c. distribution resource planning
d. distribution reverse planning
Answer: a. distribution requirement planning
70. Which one of the following is not the qualitative technique of forecasting?
a. Jury of executive opinion
b. Delphi method
c. Market research method
d. Casual method
Answer: d. Casual Method
71. In……….analysis, the parameters of classification is whether seasonal or non-seasonal

materials.
a. SOS
b. SDE
c. ABC
d. HML
Answer: a. SOS
72. ………….is related with checking whether the goals and objectives formulated earlier have
been achieved or not.
a. Benchmarking
b. ABC Analysis
c. Goal achievement
d. Resource development
Answer: c. Goal achievement
73. _______ are meant to store products for moderate to long period of time.
a. Storage warehouses
b. Distribution warehouses
c. Automated warehouses
d. Private warehouse
Answer: a. Storage warehouse
74.The goal of logistics is

a. to achieve a target level of customer service at lowest possible cost
b. to achieve targeted level of customer service.
c. increase in the market share.
d. All of the above.
ANSWER: D
75.In the product life cycle, the emphasis in marketing mix during growth stage is
a. Distribution.
b. Promotion.
c. Price.
d. Cost reduction.
ANSWER: A
76.In the product life cycle, the emphasis in marketing mix during maturity stage is
a. Distribution.
b. Promotion.
c. Price.
d. Cost reduction.
ANSWER: C
77.In the product life cycle, the emphasis in marketing mix during decline stage is
a. Distribution.
b. Promotion.
c. Price.
d. Cost reduction.
ANSWER: D
78.The concept of logistics has been systematically divided into

a. 2 phases.
b. 3 phases.
c. 4 phases.
d. 5 phases.
ANSWER: A
79.Michael porter explained the concept of
a. Motivation.
b. Cost advantage.
c. Competitive advantage.
d. Quest for quality.
ANSWER: C
80.EDI stands for

a. Electronic Data Interface.
b. Electronic Data Interchange.
c. Electronic Distribution Intermediary.
d. Electronic Documentation
Interchange. ANSWER: B
81.EOQ stands for

a. Electronic Ordered Quantity
b. Economic Order Quantity
c. Economic Order Quality
d. Electronic Obtained
quantity ANSWER: B
82.Packaging performs two functions. and logistics.

a. Distribution.
b. Store keeping.
c. Material handling.
d. Marketing.
ANSWER: D
83. Form utility is created by

a. Operation function.
b. Logistics function.
c. Procurement function.
d. Distribution function.
ANSWER: A
84. Place utility is created by

ANSWER: B
85. Time utility is created by

ANSWER: D
86. MRP stands for
a. Material requirement planning.
b. Manpower recruitment process.
c. Machine repair plan.
d. Mechanical re-engineering
process. ANSWER: A
87. MPS stands for

a. Manpower placement structure.
b. Master production schedule.
c. Manpower placement schedule.
d. Material processing
schedule. ANSWER: B
88. Master planning in the planning hierarchy

a. determines the direction of business.
b. creates the capacity.
c. involves the functional planning.
d. provides specification for
manufacturing. ANSWER: A
89. Master scheduling is the process that

a. determines the direction of business.
manufacturing. ANSWER: B
90. Customer order processing level is that

a. determines the direction of
business.
manufacturing. ANSWER: D
91. Master planning deals with

a. customer interface.
b. marketing interface.
c. supplier interface.
d. manufacturing
interface. ANSWER: C
92. The service mission of logistics

a. reflect the vision of top management.
b. deal with basic services required for delivering of goods.
c. refers to the value-added services offered.
d. reflects the ability of firm to exploit
market. ANSWER: D
93. Firm infrastructure is in the generic value chain of logistics
a. a support activity.
b. a primary activity.
c. not an activity.
d. the only activity.
ANSWER: A
in the generic value chain of logistics.
94. Inbound and outbound logistics
is
c. not an activity.
ANSWER: B
95. HRM is in the generic value chain of logistics.

c. not an activity.
ANSWER: C
96. Marketing and sales is in the generic value chain of logistics.

c. not an activity.
ANSWER: B
97. Competitive advantage can be created and achieved by logistics managers by

a. cost advantage.
b. Quality.
c. value advantage.
d. cost and value
advantage. ANSWER: D
98. Real time communication of information regarding requirements and availability of

logistics service is the core of
a. right response.
b. right quality.
c. right quantity.
d. right value.
ANSWER: A
99. The maintenance of a minimum possible level of inventory required for a desired level
of customer service is the objective of
a. right response.
b. right quality.
c. right quantity.
d. right value.
ANSWER: C
100.The logistical objective that ensures a proper balance between total logistics cost and a
desired level of customer service performance is
a. right response.
b. right quality.
c. right cost trade off.
d. right information.
ANSWER: C
101.Just in time is a practice followed in

a. Japan.
b. America.
c. Britain.
d. China.
ANSWER: A
102.The term which covers the operation of shifting the cargo to or from the vessel is
a. Rigging.
b. Slinging.
c. Carnage.
d. Forced discharge.
ANSWER: B
103.The term used for loading or unloading of heavy cargo is

a. Rigging.
b. Carnage.
c. Slinging.
d. Forced discharge.
ANSWER: B
104.The term used for carriage of goods when points of origin and destination are both within
the sovereignty of UK is
a. ULD.
b. Classification rate.
c. Valuation charge.
d. Cabotage.
ANSWER: D
105.The delivery of a damaged product has

a. An increase in its value.
b. A decrease in its value.
c. No change in its value.
d. Better demand.
ANSWER: B
106. The flow of work in process is
a. From a supplier to
producer.
b. From the last production price to ultimate user
Between the various production sub-system.
c. Between the various distribution

channels.
ANSWER: C
107.The flow of information that facilitates co-ordination activities is

a. Forward information flow.
b. Backward information flow.
c. Upward information flow.
d. Downward information flow.
ANSWER: B
108.Unreliability of vendors leads to

a. Production uncertainty.
b. Process uncertainty.
c. Demand uncertainty.
d. Supply uncertainty.
ANSWER: D
109.The internal process leads to

ANSWER: B
110.The uncertainty that could be reduced through forecasting techniques is

ANSWER: C
111.The number of stages that the goods and services flow through
a. Add to the complexity of SCM.
b. Relaxes the complexity of SCM.
c. Brings no change in complexity of SCM.
d. Ensures better
quality. ANSWER: A
112.The business activity of farming out identified non-core activities to external agencies is
a. Logistics.
b. SCM.
c. Outsourcing.
d. Distribution.
ANSWER: C
113.The warehousing function that combines the logistical flow of several small shipments to
a specific market area is
a. Break bulk function.
b. Operational function.
c. Stockpiling function.
d. Consolidation function.
ANSWER: D
114.Cash on delivery method is normally used for

a. Bulk cargo with immediate market.
b. Slow moving items.
c. Small but valuable items sent by post.
d. Exports to countries with balance of payments
problems. ANSWER: C
115.An appropriate strategy to achieve timely, accurate, paperless information flow is:
a. integrate this activity into all supply chain planning.
b. efficient store assortments.
c. revision of organization processes supported by information systems.
d. efficient
replacement. ANSWER: C
116.An appropriate strategy to maximize efficiency of promotions is:

a. revision of organization processes supported by information systems.
b. efficient store assortments..
c. integrate this activity into all supply chain planning.
d. efficient
replacement. ANSWER: C
117.An appropriate strategy to optimize for time and cost in the ordering process is:
a. efficient store assortments.
b. revision of organization processes supported by information systems.
d. efficient
replacement. ANSWER: D
118.An appropriate strategy to optimize the productivity of retail space and inventory is:
a. efficient store assortments.
b. revision of organization processes supported by information systems.
d. efficient
replacement. ANSWER: A
119.The upstream supply chain is:

a. exclusively inside an organization.
b. involved with procurement of material from suppliers.
c. the distribution of products or delivery of services to customers.
d. both the first and third answer
above. ANSWER: B
120.The downstream supply chain is:

a. exclusively inside an organization.
involved with procurement of material from suppliers.
b. the distribution of products or delivery of services to customers.

c. both the first and third answer above.
ANSWER: C
121.The correct sequence of an organizations supply chain from a systems perspective is:
a. transformation process, delivery to customers, acquisition of resources.
b. transformation process, acquisition of resources, delivery to customers.
c. acquisition of resources, transformation process, delivery to customers.
d. delivery to customers, acquisition of resources, transformation
process. ANSWER: C
122. offers the opportunity to buy direct from the supplier with reduced costs and
shorter cycle.
a. Reintermediation
b. Countermediation
c. Contramediation
d. Disintermediation
ANSWER: D
123.IS can be used to reduce cycle time by:

a. increased efficiency of individual processes.
b. improved data integration between elements of the supply chain.
c. reduced cost through outsourcing.
d. reduced complexity of the supply chain.
e. ANSWER: A
124.The typical aim of the push approach to supply chain management is:
a. to reduce costs of distribution.
b. to enhance product and service quality.
c. to reduce costs of new product development.
d. both the first and third answer above.
ANSWER: D
125.One choice for an organization's vertical integration strategy related to 'The direction of
any expansion'. What does this mean?
a. How far should the company take downstream or upstream vertical integration?
b. Should the company aim to direct ownership at the upstream or downstream supply
chain?
c. To what extent does each stage of the supply chain focus on supporting the immediate
supply chain?
d. How to enhance product and service
quality. ANSWER: B
126.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
e. ANSWER: D
127.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 ANSWER: C
128.In the automotive industry, the person who is responsible for translating customer
requirements into actual orders and arranges delivery dates is the car maker:
a. supply manager
b. purchasing manager
c. supply chain manager
d. production
manager ANSWER: C
129.It is estimated that the logistics costs of a new car are

about: A. 10-20%
B. 25-30%
C. 20-25%
D. 30-40%
ANSWER: B
130.An appropriate strategy to achieve timely, accurate, paperless information flow is:
a. revision of organisation processes supported by information systems
b. integrate this activity is integrated into all supply chain planning
c. efficient replacement
d. efficient store
assortments ANSWER: A
131.An appropriate strategy to maximise efficiency of promotions is:

a. revision of organisation processes supported by information systems
b. integrate this activity is integrated into all supply chain planning
d. efficient store
assortments ANSWER: B
132.An appropriate strategy to optimise for time and cost in the ordering process is:
a. efficient store assortments
b. revision of organisation processes supported by information systems
d. integrate this activity is integrated into all supply chain
planning ANSWER: C
133.An appropriate strategy to optimise the productivity of retail space and inventory is:
a. integrate this activity is integrated into all supply chain planning
b. efficient store assortments
c. revision of organisation processes supported by information systems
d. efficient
replacement ANSWER: B
134.The upstream supply chain is:

a. exclusively inside an organisation
b. the distribution of products or delivery of services to customers
c. involved with procurement of material from suppliers
d. both the first and third answer above
e. ANSWER: C
135.The downstream supply chain is:

a. exclusively inside an organisation
b. involved with procurement of material from suppliers
c. the distribution of products or delivery of services to customers
e. ANSWER: C
136.One of the important role of distribution in SCM towards base cost reduction is
a. Transportation
b. Warehousing/inventory
c. Information
d. all the above
ANSWER: D
137. offers the opportunity to buy direct from the supplier with reduced costs and
shorter cycle
a. Reintermediation
b. Countermediation
c. Disintermediation
d. Contramediation
e. ANSWER: C
138.IS can be used to reduce cycle time by:

a. improved data integration between elements of the supply chain
b. increased efficiency of individual processes
c. reduced cost through outsourcing
d. reduced complexity of the supply chain
ANSWER: B
139.The typical aim of the push approach to supply chain management is:
a. to reduce costs of distribution
b. to enhance product and service quality
c. to reduce costs of new product development
e. ANSWER: D
140. 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
ANSWER: A
141.MRO stands for

a. Management Resource Outstanding
b. Maintanance Repair Operative
c. Marketing Reverse Order
d. Maintanance Record
Overview ANSWER: B
142. 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
ANSWER: B
143. 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
ANSWER: B
144. 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. Transformatio
n ANSWER: D
145. 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
ANSWER: A
146.from the following list a major strategic risk associated with outsourcing.
a. Outsourcing landed cost is usually higher than in sourcing 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.
e. ANSWER: B
147. 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
e. ANSWER: B
148.The impact of cost reduction on profits is much larger than the impact of increased
a. innovation.
b. production
c. information.
d. sales
e. ANSWER: D
149. 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
e. ANSWER: A
150. Demand Forecasting is

a. animperfeC
t science
b. accompanied with forecast error
c. identifying the future demand
d. all the above
ANSWER: D
151.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.
ANSWER: D
152. Integration of business economics and strategic planning has given rise to a
ne area of study called .
a. Micro Economics
b. Corporate Economics
c. Macro Economics
d. Managerial Economics
ANSWER: B
153.Factors affecting network design decisions

a) strategic factor
b) micro economic factor
c) competitive factor
d) all the above
e) ANSWER:D
154. When suppliers, distributors, and

customers partner with each other to improve the performance of the entire system, they are
participating in a
f) channel of distribution
g) value delivery network
h) supply chain
i) supply and
demand chain
a. ANSWER: B
155. A company's channel decisions

directly affect every .
j) customer's choices
k) employee in the channel
l) channel member
m) marketing decision
ANSWER: D
156. F
rom the economic system's point of view, the role of marke ting 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. consumer
s ANSWER: D
157. Intermediaries play an importan t

role in matching .
a. dealer with customer
b. manufacturer to product
c. information and promotion
d. supply and
demand ANSWER: D
158.Marketing logistics involves getting the right product to the right customer in the r ight place
at the right time. Which one of the following is not included in this process?
a. implementing the plan for the flow of goods and services
b. planning the physical flow of goods and services
c. gathering customer's ideas for new products
ontrolling the physical flow of goods, se rvices, and information ANSWER: C
159.Which of the following is not an area of responsibility for a logistics manager?

a. inventory
b. marketing
c. warehousing
d. purchasing
ANSWER: B
160. F
rom 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. consumer
s ANSWER: C
161. 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
b. inventory management
c. supply chain management
d. economic order
quantity ANSWER: B
162. Companies manage their supply chains

through .
a. information
b. transportation modes
c. competitors
d. skilled
operators ANSWER:
D
163. Julie Newmar recognizes that

her company needs to provide better customer service and trim distribution costs through
team work, both inside the company and among all the marketing channel organizations. Julie
will begin the practice of .
a. intermediation
b. customer relationship management
c. integrated logistics management
d. horizontal marketing syste m
management ANSWER: C
164. T
oday, a growing number of firms now outsource some or all of their logistics to .
intermediaries
a. competitors
b. third - party logistics providers
c. channel member
d. ross - functiona l teams
ANSWER: D
165.According to Professor Mentzer and colleagues, the supply chain concept originated in
what discipline?
a. marketing
b. operations
c. logistics
d. productio
n ANSWER: B
166.The supply chain management philosophy emerged in whic h

decade? A. 1960s
B. 1970s
C. 1980s
D. 1990s
ANSWER: B
167. 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 info
rmation flows.
a. production line
b. supply chain
c. marketing channel
d. warehous
e ANSWER: B
168.Which of the following are not key attributes of supply chain management?
a. inventory control
b. leveraging technology
c. custo mer power
d. a long - term
orientation ANSWER: C
169.. Positive, long - term relationships between supply chain participants refer to:
a. co - opetition
b. tailored logistics
c. partnerships
d. supply chain manag
ement ANSWER: D
170.Cross docking is the major SC technique used by

a. Flipkart
b. Wall mart
c. Dell
d. Zara
ANSWER: B
171.The variability in demand orders among supply chain participants:

a. cannot be controlled
b. refers to the bullwhip effect
c. can be controlled with electronic order placement
d. is more pronounced in relational
exchanges ANSWER: B
172. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
a. third - party logistics
b. supply chain collabor ation
c. dovetailing
d. relationship
marketing ANSWER: B
173. What is a perfect order?

a. simultaneous achievement of relevant customer metrics
b. an order that arrives on time
c. an order that arrives undamaged
d. an order that is e asy for the receiver to
fill ANSWER: A
174. The method of payment where the exporter relies on the undertaking of a bank to pay is
a. Bank guarantee.
b. Letter of credit.
c. Letter of comfort.
d. None of the
above. ANSWER: D
175. The beneficiary under a letter of credit is

a. The bank opening the credit.
b. The customer of the opening bank.
c. The confirming bank.
d. The
exporter.
ANSWER: D
176. When a letter of credit does not indicate whether it is revocable or irrevocable, it is treated as
a. Revocable.
b. Irrevocable.
c. Revocable or irrevocable in the option of the beneficiary.
d. Revocable or irrevocable in the option of the negotiating
bank. ANSWER: B
177. Under an acceptance letter of credit, the responsibility of the issuing bank is
a. Only to accept the bill.
b. To pay against the bill.
c. To accept the bill immediately and also to pay the amount of the bill on its due date.
d. To get the acceptance of the importer on the
bill. ANSWER: C
178. The warehousing function that combines the logistical flow of several small shipments to
a specific market area is
a. Break bulk function.
b. Operational function.
c. Stockpiling function.
d. Consolidation function.
ANSWER: D
179. The warehouses located near the port is

a. Field warehouse.
b. Buffer storage warehouse.
c. Bonded warehouse.
d. Export and import
warehouse. ANSWER: D
180. The kind of warehouse that is licensed and authorized by the customs for storing goods
till import duty is
a. Field warehouse.
b. Buffer storage warehouse.
c. Bonded warehouse.
d. Export and import
warehouse. ANSWER: C
181. The business activity of farming out identified non-core activities to external agencies is
a. Logistics.
b. SCM.
c. Outsourcing.
d. Distribution.
ANSWER: C
182. Which of the following statements is true?

a. Supply chain is a subset of logistics.
b. Logistics is a subset of supply chain.
c. Transportation and logistics are same.
d. Logistics and supply chain are same.
ANSWER: B
183. If a customer visiting a departmental store cannot find his desired soap manufactured
by Hindustan Unilever Ltd (HUL) in the store, which of the following chain partner will he
hold responsible for the non-availability of the soap?
a. The logistics service provider
b. The distributor
c. The departmental store
d. Hindustan Unilever Ltd
ANSWER: C
184. A Supply chain process is viewed as

a. Birds eye view
b. Technical view
c. strategic view
d. cyclic and push/pull view
ANSWER: D
185. Supply chain is concerned with the

a. flow of raw materials, WIP and finished products in the forward direction
b. flow of information in both the directions
c. flow of materials in the forward direction, cash in the reverse direction and information
in both the directions
d. flow of materials in the forward direction and that of cash in the reverse
direction ANSWER: C
186. The objective of a supply chain is:

a. to improve the efficiency across the whole supply chain
b. to improve responsiveness across the whole supply chain
c. to deliver improved value to the customers
d. to improve the efficiency and responsiveness across the whole supply chain and also
deliver improved value to the customers
ANSWER: D

a. Ford supply chain is both highly efficient as well as highly responsive.
b. Dell supply chain propagated the concept of long-term relationship with the
suppliers.
c. Toyota supply chain believed in medium-term relationship with the suppliers with
loosely held supplier network.
d. Dell supply chain is both highly efficient as well as highly responsive.
ANSWER: B
188. which type of demand forecast is related to environmental factors

a. Qualitative forecast
b. Time forecast
c. Casual forecast
d. Simulation forecast
ANSWER: C
189. Which of the following statements is true regarding outsourcing?

a. Higher level of outsourcing enables a firm to have better control on all outsourced
activities.
b. Higher level of outsourcing makes a firm more vulnerable to outside influences.
c. Higher level of outsourcing enables a firm to outsource core activities to other
competent players.
d. Higher level of outsourcing enables a firm to outsource non-core activities to other
competent players.
ANSWER: A
190. If the focus of a retailer is to achieve leadership in cost, then which of the
following phenomenon will hold good?
a. Customers will like to have convenience and the retailers will also set up a number of stores
at different locations in order to provide convenience to the customers.
b. Customers will prefer a large variety of products and the retailer will also keep a large
variety in the store in order to satisfy customer needs.
c. Customers will prefer a large variety of products but the retailer will not keep a large
variety in the store in order to achieve economies of scale.
d. Customers will prefer short lead time for their products and the retailer will keep
higher amount of inventory in order to satisfy customer needs in time.
ANSWER: C
191. The companies will realize the benefits of implementing IT when which of the following is
undertaken?
a. Companies need to invest heavily in information systems.
b. Companies need to automate the existing supply chain systems and processes.
c. Companies need to re-engineer their supply chain structure.
d. Companies need to re-engineer their supply chain structure and undertake revision in
the supporting organizational processes.
ANSWER: D
192. Ford supply chain is characterized by

a. Increased product variety
b. Loosely-held supplier networks
c. Vertical integration
d. Long-term relationship with the
suppliers ANSWER: C
193. Dell supply chain is characterized by

a. Lean production systems
b. Zero product variety
c. Vertical integration
d. Individual customization
ANSWER: D

a. A 3PL company is a professional logistics service provider meeting the logistics requirements
of an organization and can also integrate its resources, capability, and technology in order to
provide comprehensive solution to its customers.
b. A 4PL company is a professional logistics service provider meeting the logistics requirements
of an organization and can also integrate its resources, capability, and technology in order to
provide comprehensive solution to its customers.
c. A 3PL is a logistics service provider meeting only the logistics requirements of an
organization while 4PL is a logistics service provider meeting the logistics requirements of an
organization and can also integrate its resources, capability and technology to provide
comprehensive solution to its customers.
d. A 4PL company is a professional logistics service provider meeting only the logistic
requirements of an organization.
ANSWER: C
195. Which one of the following is not the supply challenge being faced by the
Indian organizations?
a. Poor infrastructure
b. IT implementation
c. Complex taxation structure
d. Smaller pack sizes
ANSWER: B
196. Many organisations hold safety stocks as part of their inventory. Which of the following is
a reason for holding safety stocks?
a. To improve stock holding levels
b. To improve stock accuracy levels
c. To cater for demand forecast errors
d. To cater for a large storage
capacity. ANSWER: C
197. Which of the following stock valuation methods is based on a cost estimate made before
the part is purchased?
a. Standard costing
b. FIFO
c. Average costing
d. LIFO.
ANSWER: A
198. The receipt used for warehouse is

a. Inventory receipt
b. Dock receipt
c. EDI receipt
d. Goods
receipt ANSWER:
B
199. Warehouses and stockyards are two types of storage facilities. Which of the following is
the most appropriate factor to consider in the design of a stockyard?
a. Structure
b. Services
c. Surface
d. Shelving.
ANSWER: C
200. Managing predictable variability is

a. managing the seasonal demand
b. managing the change in demand that can be forecasted
c. forecasted error ratio
d. managing stock out
situation ANSWER: B

a. Ford supply chain is both highly efficient as well as highly responsive.
b. Dell supply chain is both highly efficient as well as highly responsive.
c. Dell supply chain propagated the concept of long-term relationship with the
suppliers.
d. Toyota supply chain believed in medium-term relationship with the suppliers with
loosely held supplier network.
ANSWER: C
202. Role of distribution in supply chain management

a. providing localised services
b. Collecting product reviews from customers which could be used by manufacturers
c. Reduces inventory holding cost
d. All the above
ANSWER: D
203. Which of the following types of container is used to carry oversized cargo?
a. Bulk
b. Flat rack
c. Reefer
d. Tank.
ANSWER: B
204. Which of the following is the name given to a bill of lading where goods have been
received by a carrier free of defects?
a. Shipped bill of lading
b. Claused bill of lading
c. Ordinary bill of lading
d. Clean bill of lading.
ANSWER: D
205. TQM means

a. Total quality management
b. Transport quality manageemnt
c. Terminal quay management
d. Total quantity
managament ANSWER: A
206. The objective of limited integrated business function stage is

a. Cost cost.
b. Maximisation of profit by sales volume.
c. Core competency.
d. Maximisation of profitable sales volume and cost
reduction. ANSWER: A
207. The objective of internally integrated business function stage is
a. Cost.
c. Core competency.
d. Maximisation of profitable sales volume and cost reduction.
ANSWER: D
208. The objective of externally integrated business function stage is

a. Cost.
c. Core competency.
d. Maximisation of profitable sales volume and cost
reduction. ANSWER: C
209. KAIZEN means

a. Complete improvement
b. Collaborative planning and improvement
c. Continous improvement
d. Continous
monitoring ANSWER: C
210. Packaging performs two functions. and logistics.

a. Distribution.
b. Store keeping.
c. Material handling.
d. Marketing.
ANSWER: D
211. Form utility is created by

ANSWER: A
212. Place utility is created by

ANSWER: B
213. Time utility is created by

ANSWER: D
214. The strategic component of logistical mission

d. reflects the ability of firm to exploit market.
ANSWER: A
215. The logistical component of logistics mission

d. reflects the ability of firm to exploit
market. ANSWER: B
216. World classic Supply chain Companies

a. TOYOTA
b. APPLE
c. WAL MART
d. All the above
ANSWER: D
217. Firm infrastructure is in the generic value chain of logistics
c. not an activity.
ANSWER: A
in the generic value chain of logistics.
218. Inbound and outbound logistics
is
c. not an activity.
ANSWER: B
219. The logistics strategic analysis
a. reflects the capability of the management to think beyond the current way.
b. reflects the extent of use of logistical component for competitive advantage.
c. ensures effective implementation of logistics strategy.
d. deals with managing
change. ANSWER: B
220. The department in the shipping company that ensures the seaworthiness of the ship is
a. husbandry department.
b. finance department.
c. technical department.
d. operating
department. ANSWER: A
221. The department that aims to maximize the economic employment of the ship is
a. husbandry department.
b. finance department.
c. technical department.
d. operating department
ANSWER: D
Unit 1 – Introduction to OSCM
1. Quality is defined by the customer as:

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
2. According to the manufacturing-based definition of quality
a. quality is the degree of excellence at an acceptable price and the control of
variability at an acceptable cost
b. quality depends on how well the product fits patterns of consumer
preferences
c. even though quality cannot be defined, you know what it is
d. quality is the degree to which a specific product conforms to standards
3. Zero defects in manufacturing is

a. is a relevant goal only in electronic assembly
b. is readily achievable in all areas
c. is the goal of TQM
d. is an unobtainable and misleading idea
4. Which one of the following is not a typical question dealt with by an operations
manager?
a. How much capacity will be needed in the months ahead?
b. What is a satisfactory location for a new facility?
c. How to motivate employees?
d. All are typical of operations decisions.
5. Which one of the following best represents a pure good?

a. Soap
b. Fast food
c. Attending a play
d. Vehicle repair
6. Which of the following statements is true of LEAN?

a. Lean principles focus on advanced statistical methods
b. Lean principles are separate body of knowledge
c. Lean principles have been developed over a lengthy period of time.
d. Lean principles include reducing waste.
7. Process improvement technique that sorts the "vital few" from the "trivial many" is
a. Taguchi analysis
b. Pareto analysis
c. benchmarking
d. Yamaguchi analysis
8. Which of the following functions is not a core function of an organisation?
a. The Product / Service Development Function
b. The Operations Function
c. The Marketing ( Including Sales ) Function
d. The accounting and finance function

d. an order that is easy for the receiver to fill
10. Total Quality Management emphasizes

a. the responsibility of the Quality Control staff to identify and solve all
quality-related problems
b. A commitment to quality that goes beyond internal company issues to
suppliers and customers
c. A system where strong managers are the only decision makers
d. A process where mostly statisticians get involved
11. Which of the following is not one of the major categories of costs associated with
quality?
a. prevention costs
b. appraisal costs
c. internal failures
d. none of the above, they are all major categories of costs associated with
quality
12. According to the manufacturing-based definition of quality,

a. quality is the degree of excellence at an acceptable price and the control of
b. quality depends on how well the product fits patterns of consumer
preferences
13. Lean production involves

a. Elimination of cost only
b. Improvement of quality only
c. Improvement of speed only
d. Elimination of all types of waste
14. All of the following costs are likely to decrease as a result of better quality except
a. customer dissatisfaction costs
b. maintenance costs
c. scrap costs
d. warranty and service costs
15. Inspection, scrap, and repair are examples of
a. internal costs
b. external costs
c. costs of dissatisfaction
d. societal costs
e.
16. Which of the following activities is not a direct responsibility of operations
management?
a. Determining the exact mix of products and services that the customers
will want
b. Designing the operation's products, services and processes
c. Developing an operations strategy for the operations
d. Planning and controlling the operation
17. A successful TQM program incorporates all of the following except

a. continuous improvement
b. employment involvement
c. benchmarking
d. centralized decision making authority
18. Which of the following would not be normally considered as a key feature of
Operations Management?
a. Operations is the part of an organisation which creates wealth through the
management of the transformation process
b. World class Operations can give an organisation competitive advantage
c. Most new technology is implemented in Operations areas
d. Operations is the area of a business where most people work
19. „Kaizen‟ is a Japanese term meaning

a. a foolproof mechanism
b. Just-in-time (JIT)
c. a fishbone diagram
d. continuous improvement
20. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
a. Taguchi Loss Function
b. Pareto Chart
c. ISO 9000 Quality Cost Calculator
d. Process Chart
21. A quality loss function utilizes all of the following costs except
a. the cost of scrap and repair
b. the cost of customer dissatisfaction
c. inspection, warranty, and service costs
d. sales costs
e. costs to society
22. Which of the following is the least likely decision to be made by Operations
Managers?
a. Selecting the location and layout of a facility
b. Deciding which market areas to manufacture products for
c. How much capacity is required to balance demand
d. Designing and improving the jobs of the workforce
23. Among the tools of TQM, the tool ordinarily used to aid in understanding the
sequence of events through which a product travels is a
a. Pareto chart
b. Flow chart
c. check sheet
d. Taguchi map
24. Which one of the following would not generally be considered an aspect of
operations management?
a. Work methods
b. Secure financial resources
c. Maintain quality
d. Product or service design
25. A worker operates a shear press. She notices that the metal sheets she is cutting
have curled edges. Who should get the first "shot" at solving the problem?
a. the foreman
b. a member of the Quality Control department
c. the operator herself
d. the employee's supervisor
26. Which of the following is not a key activity of an operations manager?

a. Understanding the needs of customer
b. Continually learning
c. Managing cash flows
d. Exploiting technology to produce goods and services
27. Which one of the following would not generally be considered an aspect of
a. Schedule work
b. Secure financial resources
c. Maintain quality
d. Oversee the transformation process
28. Which came last in the development of manufacturing techniques?

a. Lean production.
b. Division of labor.
c. Mass production.
d. Craft production.
29. Which function typically employs more people than any other functional area?
a. Information System
b. Operations
c. Marketing
d. Finance
30. Which of the following is not a type of operations?

a. Goods production
b. Storage / transportation
c. entertainment
d. price reduction
31. Which of the following is not true about a lean production system?
a. It puts emphasis on quality, flexibility, and time reduction.
b. It puts emphasis on reducing a company's labor force.
c. It is involved in maintaining and improving the system with lower amounts
of inventory.
d. It relies on buffers against unforeseen occurrences.
32. The inputs to a transformation process include all of the following except
a. Material
b. People
c. Information
d. Assembly
33. ……………… is an example of a pure good.

a. Restaurant
b. Dentist
c. Salt
d. Education
34. Which one does not use operations management?

a. A Super market.
b. A bank.
c. A hotel
d. They all use it.
35. “Quality is conformance to specifications”, this definition of quality is from point

of view of
a. Customer
b. Manufacturer
c. Quality Circle Forum
d. TQM
36. Which of the following is not a typical supply chain member?
a. Retailer’s Creditor
b. Wholesaler
c. Producer
d. Customer
37. Quality is both quantitative and

a. Supportive
b. Qualitative
c. Measurable
d. Conclusive

a. Improvement of speed
b. Improvement of quality
c. Elimination of all types of waste
d. All of the above
39. Most operations produce a mixture of both products and services. Which of the
following businesses are closest to produce “pure” services?
a. Counsellor / Therapist
b. Restaurant
c. IT company
d. Steel company

a. Lean principles focus on advanced statistical methods
b. Lean principles are separate body of knowledge
c. Lean principles have been developed over a lengthy period of time.
d. Lean principles include reducing waste.

a. Supermarket
b. Bank
c. Hotel
d. They all use it.
42. If two potential suppliers can deliver a part with the same quality and prices, the
selection should be based on:
a. Age of the firms
b. A coin flip
c. Outside evaluation
d. The capabilities and flexibilities of the firms
43. What name is often given to the Japanese “total approach” to removing anything
that does not add value to the final product?
a. Jobbing processes
b. Lean production processes
c. Continuous processes.
d. Batch processes.
44. The most common form of quality control includes:

a. Planning
b. Organizing
c. Inspection
d. Directing
e.
45. TQM refers to
a. total quantity management
b. total quality management
c. total quality marketing
d. total quotient management
46. A restaurant is an example of a

a. major service with accompanying goods and services
b. pure service
c. pure tangible good
d. None of the above

d. an order that is easy for the receiver to fill
48. 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
49. Which one of the following is not a typical question dealt with by
an operations manager?
a) How much capacity will be needed in the months ahead?

b) What is a satisfactory location for a new facility?
c) How to motivate employees?
d) All are typical of operation decisions
50. Which of the following are not key attributes of supply chain
management?
a) inventory control
b) leveraging technology
c) customer power
d) all are key attributes .
51. Positive, long-term relationships between supply chain

participants refer to:
a) Coopetition
b) Tailored Logistics
c) Partnerships
d) Supply Chain Management .
52. Cooperative supply chain relationships developed to enhance the

overall business performance of both parties is a definition of:
a) Third-party logistics
b) Supply chain collaboration
c) Dovetailing
d) Relationship marketing
53. When suppliers, distributors, and customers partner with each other to
improve the performance of the entire system, they are participating in a
a) Channel Of Distribution
b) Value Delivery Network
c) Supply Chain
d) Supply And Demand Chain .
54. Which of the following is not an area of responsibility for a
logistics manager?
a) Inventory
b) Purchasing
c) Warehousing
d) Marketing
55. 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) is an inventory expediting centre.
e) has a just-in-time inventory system. .
56. A Supply Chain which includes the Distribution of finished products and
services
a) Outbound Logistics
b) Inbound Logistics
c) Supply of Goods
d) Transportation .
57. 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 .
58. Today, a growing number of firms now outsource some or all of their
logistics to intermediaries
a) Competitors
b) Third Party Logistics (3PL) Providers
c) Channel Members
d) Cross-functional Teams .
59. A quality criterion which can be measured is called a _?
a) Quality variable
b) Quality component
c) Quality attribute
d) Quality characteristi
MCQ: Unit-1: introduction to Operations and Supply Chain management
1."Quality is defined by the customer" is :

An unrealistic definition of quality
A user-based definition of quality
A manufacturing-based definition of quality
A product-based definition of quality

quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards
3. The supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production
4. Zero defects in manufacturing is
a. is a relevant goal only in electronic assembly
b. is readily achievable in all areas
c. is the goal of TQM
d. is an unobtainable and misleading idea
5. The supply chain management philosophy emerged in which decade?
1960s
1970‟s
1980s
1990s
6. 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.
production line
supply chain
marketing channel
warehouse
7. Which one of the following is not a typical question dealt with by an operations managers?
How much capacity will be needed in the months ahead?
What is a satisfactory location for a new facility?
How to motivate employees?
All are typical of operations decisions.
8. Which of the following are not key attributes of supply chain management?
inventory control
leveraging technology
customer power
all are key attributes
9. Positive, long-term relationships between supply chain participants refer to:
Co-opetitions
tailored logistics
partnerships
supply chain management

Soap
Fast food
Attending a play
Vehicle repair

Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.
12. The bullwhip effect:

is an ineffective way to motivate warehouse employees
applies to rodeos and has nothing to do with supply chain management
refers to the “swaying” motion associated with triple trailers
Refers to variability in demand orders among supply chain participants.
"quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost"
14. The variability in demand orders among supply chain participants:

cannot be controlled
refers to the bullwhip effect
can be controlled with electronic order placement
is more pronounced in relational exchanges
third-party logistics
supply chain collaboration
dovetailing
relationship marketing
17. Process improvement technique that sorts the "vital few" from the "trivial many" is
Taguchi analysis
Pareto analysis
benchmarking
Yamaguchi analysis
18. A fishbone diagram is also known as a
cause-and-effect diagram
poka-yoke diagram
Kaizen diagram
Taguchi diagram
19. Which of the following functions is not a core function of an organisation?

The Product/Service Dev.Function
The Operations Function
The Marketing ( Including Sales ) Function
The accounting and finance function
simultaneous achievement of relevant customer metrics
an order that arrives on time
an order that arrives undamaged
an order that is easy for the receiver to fill

the responsibility of the Quality Control staff to identify and solve all quality-related
problems
A commitment to quality that goes beyond internal company issues to suppliers and
customers
A system where strong managers are the only decision makers
A process where mostly statisticians get involved
22. "Quality is defined by the customer" is

an unrealistic definition of quality
a user-based definition of quality
a manufacturing-based definition of quality
a product-based definition of quality
the definition proposed by the American Society for Quality Control
23. Which of the following is not one of the major categories of costs associated with quality?
prevention costs
appraisal costs
internal failures
none of the above, they are all major categories of costs associated with quality
24. According to the manufacturing-based definition of quality,
quality is the degree of excellence at an acceptable price and the control of variability
at an acceptable cost
25. An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for:
Order processing, transportation scheduling, and inventory management
cost-effective flowing of raw materials
future purchasing of computer systems
future merger opportunities
Elimination of cost only
Improvement of quality only
Improvement of speed only
Elimination of all types of waste
27. All of the following costs are likely to decrease as a result of better quality except
customer dissatisfaction costs
maintenance costs
scrap costs
warranty and service costs
28. Inspection, scrap, and repair are examples of
internal costs
external costs
costs of dissatisfaction
societal costs
29. Which of the following activities is not a direct responsibility of operations management?
Determining the exact mix of products and services that the customers will want
Designing the operation's products,services and processes
Developing an operations strategy for the operations
Planning and controlling the operation
the responsibility of the Quality Control staff to identify and solve all quality-related
problems
a commitment to quality that goes beyond internal company issues to suppliers
and customers
a system where strong managers are the only decision makers
a process where mostly statisticians get involved
31. A successful TQM program incorporates all of the following except
continuous improvement
employment involvement
benchmarking
centralized decision making authority
32. Which of the following would not be normally considered as a key feature of Operations
Management?
Operations is the part of an organisation which creates wealth through the management of
the transformation process
World class Operations can give an organisation competitive advantage
Most new technology is implemented in Operations areas
Operations is the area of a business where most people work
33. "Kaizen" is a Japanese term meaning

a foolproof mechanism
Just-in-time (JIT)
a fishbone diagram
continuous improvement
34. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
Taguchi Loss Function
Pareto Chart
ISO 9000 Quality Cost Calculator
Process Chart
35. A quality loss function utilizes all of the following costs except
the cost of scrap and repair
the cost of customer dissatisfaction
inspection, warranty, and service costs
sales costs
costs to society
36. Which of the following is the least likely decision to be made by Operations Managers?
Selecting the location and layout of a facility
Deciding which market areas to manufacture products for
How much capacity is required to balance demand
Designing and improving the jobs of the workforce
37. Pareto charts are used to

identify inspection points in a process
outline production schedules
organize errors, problems or defects
show material flow
38. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of
events through which a product travels is a
Pareto chart
Flow chart
check sheet
Taguchi map
39. Which one of the following would not generally be considered an aspect of operations
management?
Work methods
Secure financial resources
Maintain quality
Product or service design
40. Which one of the following is not a typical question dealt with by an operations managers?
41. A worker operates a shear press. She notices that the metal sheets she is cutting have curled
edges. Who should get the first "shot" at solving the problem?
the foreman
a member of the Quality Control department
the operator herself
the employee's supervisor
42. Which of the following is not a key activity of an operations manager?

Understanding the needs of customer
Continually learning
Managing cash flows
Exploiting technology to produce goods and services
43. A recent consumer survey conducted for a car dealership indicates that, when buying a car,
customers are primarily concerned with the salesperson's ability to explain the car's features, the
salesperson's friendliness, and the dealer's honesty. The dealership should be especially
concerned with which dimensions of service quality?
communication, courtesy, and credibility
competence, courtesy, and security
competence, responsiveness, and reliability
communication, responsiveness, and reliability
44. Which one of the following best represents a pure service?
Bank loans
Computer diagnosis and repair
Attending a theatre play
Fast food restaurant
Salt
Fast food
Attending a play
Vehicle repair
46. Which one of the following would not generally be considered an aspect of operations
management?
Schedule work
Maintain quality
Oversee the transformation process
47. Which one of these was not mentioned in the list of recent trends in operations management?
Total quality management
Worker involvement
Global competition.
Automation.
Lean production.
Division of labor.
Mass production.
Craft production.
49. Which function typically employs more people than any other functional area?
Information System
Operations
Marketing
Finance
50. Which of the following is not a type of operations?

Goods production
storage/transportation
entertainment
price reduction
51. Which of the following is not true about a lean production system?
It puts emphasis on quality, flexibility, and time reduction.

It puts emphasis on reducing a company's labor force.
It is involved in maintaining and improving the system with lower amounts of
inventory.
It relies on buffers against unforeseen occurrences.
52. The inputs to a transformation process include all of the following except
Material
People
Information
Assembly
53. ____ is an example of a pure good.

Restaurant
Dentist
Coal Mining
Education
54. Which one of the following is not a typical question dealt with by an operations manager?
Which products/services should be offered?
A CPA firm.
A bank.
A hospital
They all use it.
56.Zero defects in manufacturing

is an unobtainable and misleading ideal
is the goal of TQM
is readily achievable in all areas
is a relevant goal only in electronic assembly
57. Which one is not generally considered an advantage of using models for decision-making?
Providing a systematic approach to problem solving.
Emphasizing quantitative information.
Providing an exact representation of reality.
Requiring users to be specific about objectives.
58. ”Quality is conformance to specifications”-This definition of quality is from point of view of
Customer
Manufacturer
Quality Circle Forum
TQM

Lean production.
Division of labor.
Mass production.
Interchangeable parts.
60. The goal of Total Quality Management is:
Customer satisfaction
Product differentiation
Brand equity
Acting globally
Retailer‟s Creditor
Wholesaler
Producer
Customer
62. Quality is both quantitative and
Supportive
Qualitative
Measurable
Conclusive
63. When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a ________
Channel Of Distribution
Value Delivery Network
Supply Chain
Supply And Demand Chain
64. A company's channel decisions directly affect every ________.
customer's choices
employee in the channel
channel member
Marketing decision.
65. 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.
manufacturers
marketers
distributors
consumers
66. Intermediaries play an important role in matching ________.
dealer with customer
manufacturer to product
information and promotion
supply and demand
67. Marketing logistics involves getting the right product to the right customer in the right place
implementing the plan for the flow of goods and services
planning the physical flow of goods and services
controlling the physical flow of goods, services, and information
gathering customer's ideas for new products
68. Raw materials and specialised services procured are converted into useful service offerings
and finaly distributed to customers in following Industry
Hotel
Cement
Sugar
Refinery
69. Which of the following is not an area of responsibility for a logistics manager?
inventory
purchasing
warehousing
marketing
70. 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.
reduction-inventory management
economic order quantity
just-in-time logistics
limited inventory logistics
71. A Supply Chain includes the chain of entities involved in the
planning,procurement,production and ------------- of products and services
Distribution
Supply
Demand
Transport
72. In a SC,Material flows in one direction while _________from in both direction
Process
Information
Product
Semifinished Goods
73. Companies manage their supply chains through ________.
information
transportation modes
competitors
the Internet
skilled operators
74. Julie Newmar recognizes that her company needs to provide better customer service and trim
distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Julie will begin the practice of ________.
intermediation
customer relationship management
horizontal marketing system management
75. There are four generic processes involved in any SCM-Planning for operations,Sourcing
decisions,Manufacturing related activities and
Purchase
Inventory
Information
Distribution

77. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries.
competitors
third-party logistics providers
channel members
cross-functional teams
78. Most operations produce a mixture of both products and services. Which of the following
businesses are closest to producing “pure” services?
Counsellor/Therapist
Restaurant
IT company
Steel company
79. If a sample of parts is measured and the mean of the measurements is outside the control
limits the process is
in control, but not capable of producing within the established control limits
out of control and the process should be investigated for assignable variation
within the established control limits with only natural causes of variation
monitored closely to see if the next sample mean will also fall outside the control
limits
80. A quality circle holds a brainstorming session and attempts to identify the factors responsible
for flaws in a product. Which tool do you suggest they use to organize their findings?
Ishikawa diagram
Pareto chart
process chart
control charts
81. When a sample measurement falls inside the control limits, it means that
each unit manufactured is good enough to sell

the process limits cannot be determined statistically
the process output exceeds the requirements
if there is no other pattern in the samples, the process is in control


Supermarket
Bank
Hospital
They all use it.
84. The trend in organizations is to place the SCM function:
Under the manufacturing function
Under the finance function
Under the engineering function
At the same level as the other major functions
85. Which of the following is NOT a factor affecting the supply chain?
Reduced number of suppliers
Increased competition
Longer product life cycles
Increased opportunities to strategically use technology
86. If two potential suppliers can deliver a part with the same quality and prices, the selection
should be based on:
Age of the firms
A coin flip
Outside evaluation
The capabilities and flexibilities of the firms
87. Just-in-time/SCM purchasing requires the following condition:

Many suppliers
Short-term contracts
Cooperation between purchasing and suppliers
Continuous competitive bidding
88. The amount of inventory kept at each stock point in a warehouse network is usually based
on:
Minimizing transportation costs
Constant demand
Tradeoffs between warehousing, inventory, and transportation costs
Product pricing strategy
89. Which of the following is true regarding control charts?

Values above the upper and lower control limits indicate points out of adjustment.
Control charts are built so that new data can be quickly compared to past performance
data.
Control charts graphically present data.
All of the above are true.
90. The goal of inspection is to
detect a bad process immediately
add value to a product or service
correct deficiencies in products
correct system deficiencies
91. Which of the following is not a typical inspection point?
upon receipt of goods from your supplier
during the production process
before the product is shipped to the customer
at the supplier's plant while the supplier is producing
after a costly process
92. What name is often given to the Japanese „total approach‟ to removing anything that does not
add value to the final product?
Jobbing processes
Lean production processes
Continuous processes.
Batch processes.
94. The most common form of quality control includes:

Planning
Organizing
Inspection
Directing
Retailer‟s creditor
wholesaler
reseller
producer
a. "quality is the degree of excellence at an acceptable price and the control of variability at
an
acceptable cost"
b. quality depends on how well the product fits patterns of consumer preferences
97. TQM refers to
a. total quantity management
b. total quality management
c. total quality marketing
d. total quotient management
98. When suppliers, distributors, and customers collaborate with each other to improve the
performance of the entire system, they are participating in a ________
a) channel of distribution
b) value delivery network
c) supply chain
d) supply and demand chain
99. A company's channel decisions directly affect every ________.

a) customer's choices
b) employee in the channel
c) channel member
d) competitor's actions

d. to create and deliver goods to consumers
101. A supply chain is essentially a sequence of linked:
d. warehousing and wholesaling units
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
103. Intermediaries play an important role in matching ________.
a) dealer with customer
b) manufacturer to product
c) information and promotion
d) supply and demand
104. Marketing logistics involves getting the right product to the right customer in the right place
a) implementing the plan for the flow of goods and services
b) planning the physical flow of goods and services
c) controlling the physical flow of goods, services, and information
d) gathering customer's ideas for new products

e. to find products that are similar
f. to facilitate wholesalers inventory selections
g. to create synergy in their training programs
h. to create and deliver goods to consumers
e. customer and prospects
f. supplier and manufacturer
g. suppliers and customers
h. warehousing and wholesaling units
107. Which of the following is not an area of responsibility for a logistics manager?
a) inventory
b) purchasing
c) warehousing
d) marketing
108. 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
109. Companies manage their supply chains through ________.
a) information
b) transportation modes
c) competitors
d) the Internet
110. Julie Newmar recognizes that her company needs to provide better customer service and
trim distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Julie will begin the practice of ________.
a) intermediation
b) customer relationship management
c) integrated logistics management
d) supply chain management
111. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries
a) competitors
b) third-party logistics providers
c) channel members
d) cross-functional teams
112. Supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production
113. A restaurant is an example of a
a. major service with accompanying goods and services
b. hybrid
c. pure service
d. pure tangible good
a) 1960s
b) 1970s
c) 1980s
d) 1990s
115. 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
d) warehouse
c) c. customer power
d) all are key attributes
a) co-opetitions
b) tailored logistics
c) partnerships

a) is an ineffective way to motivate warehouse employees
b) applies to rodeos and has nothing to do with supply chain management
c) refers to the “swaying” motion associated with triple trailers
d) refers to variability in demand orders among supply chain participants.

a) cannot be controlled
b) refers to the bullwhip effect
c) can be controlled with electronic order placement
d) is more pronounced in relational exchanges
a) third-party logistics
b) supply chain collaboration
c) dovetailing
d) relationship marketing
a) simultaneous achievement of relevant customer metrics

b) an order that arrives on time
c) an order that arrives undamaged
d) an order that is easy for the receiver to fill
122. Which of the following is NOT a reason that companies are depending more on their
suppliers?
a) More focus on core competencies
b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers
123. Which of the following is NOT a benefit of SCM Purchasing?
a) Consistent quality
b) Savings on resources
c) Lower costs
d) Less dependence on suppliers
124. What term describes a vertical expansion of job duties in order to give the worker more
responsibility?
a) Job enlargement
b) Job rotation
c) Job enrichment
d) Job design
125. What are the two basic types of production systems?

a) Automated and manual
b) Intermittent and non-intermittent process
c) Normal and continuous process
d) Continuous process and batch
126. What type of process would a paper mill be most likely to use?
a) Continuous flow
b) Project
c) Job shop
d) Flow shop
127. What technique deals with the problem of supplying sufficient facilities to production lines
or individuals that require uneven service?
a) Supply-demand theory
b) PERT
c) Inventory theory
d) Queuing theory
128. A manufacturer has been receiving excessive numbers of defective standard machine parts
from a vendor on a regular basis. What is the most effective way to design a formal inspection
system for incoming parts?
a) Queuing analysis
b) Time series analysis
c) Statistical quality control
d) Regression analysis
129. A set of simultaneous equations that has more variables than constraints has
a) no solution
b) an infinite number of solutions
c) a finite solution
d) an infinite solution
130. In a PERT/CPM network, computing the critical path requires
a) determining the total project duration
b) assigning the earliest finish time for an activity as the earliest start time for the
next
c) that the latest finishing time for an activity not delay the overall project beyond initial
expectation
d) a sophisticated and complex computer program
131. At the completion of the forward and backward passes, the slack for an activity is given by
the
a) difference between early start and early finish
b) difference between early start and latest finish
c) difference between latest start and early finish
d) amount of idle labor on the critical path
DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
MCQs: Specialization:-OPERATION MANAGEMENT

Course Code- 206 Course Name -Supply Chain Management
Unit I- Supply Chain Structure
Sr.no Question ANSWERS
Which of the following is not a stage within a typical supply
1 chain? E
Customers
Retailers
Wholesalers/Distributors
Manufacturers
All of the above are stages within a typical supply chain.
2. Which of the following is not a stage within a typical supply
2 chain? D
Customers
Retailers
Wholesalers/Distributors
Merchandisers
Component/Raw material suppliers
3 3. Supply chain profitability is E
not correlated to the value generated by the various stages of the
supply chain.
the total profit to be shared across all supply chain stages.
the difference between the revenue generated from the customer
and the overall cost across the supply chain.
the total revenue generated by the distributor stage of the supply
chain.
b and c only
4. Successful supply chain management requires which of the
4 following decision phases? D
supply chain strategy/design
supply chain planning
supply chain operation
all of the above
a and b only
5 5. The decision phases in a supply chain include C
production scheduling.
customer relationship management
supply chain operation.
supply chain orientation.
Prof. Nilambari Moholkar www.dimr.edu.in

all of the above

6 6. The cycle view of a supply chain holds that B
the processes in a supply chain are divided into 2 categories.
the processes in a supply chain are divided into a series of activities
performed at the interface between successive stages.
all processes in a supply chain are initiated in response to a
customer order.
all processes in a supply chain are performed in anticipation of
customer orders.
None of the above are true.
7 7. The push/pull view of a supply chain holds that D
the processes in a supply chain are divided into a series of activities
performed at the interface between successive stages.
all processes in a supply chain are initiated in response to a
customer order.
all responses in a supply chain are performed in anticipation of
customer orders.
the processes in a supply chain are divided into 2 categories
depending on whether they are initiated in response to or in
anticipation of customer orders.
8. Which of the following is not a cycle in the supply chain cycle
8 view? A
Analysis cycle
Customer order cycle
Replenishment cycle
Manufacturing cycle
Procurement cycle
9. Which of the following is not a cycle in the supply chain cycle
9 view? E
Customer order cycle
Replenishment cycle
Manufacturing cycle
Procurement cycle
All of the above are part of the supply chain cycle view.
10 10. The customer order cycle occurs at the A
customer/retailer interface.
retailer/distributor interface.
distributor/manufacturer interface.
manufacturer/supplier interface.

none of the above

11. Which of the following is not a process in the customer order
11 cycle? A
Customer arrival
Customer order entry
Customer order fulfillment
Customer order receiving
All are processes in the customer order cycle
12 12. Customer arrival refers to C
the point in time when the customer has access to choices and
makes a decision regarding a purchase.
the customer informing the retailer of what they want to purchase
and the retailer allocating product to the customer.
the process where product is prepared and sent to the customer.
the process where the customer receives the product and takes
ownership.
none of the above
13 13. The objective of the customer arrival process is to D
a. get the correct orders to customers by the promised due date at
the lowest possible cost.
b. maintain a record of product receipt and complete payment.
c. maximize the conversion of customer arrivals to customer orders.
d. ensure that orders are quickly and accurately entered and
communicated to other affected supply chain processes.
e. none of the above
14 14. Customer order entry is B
ownership.
none of the above
15 15. The objective of customer order entry is to D
get the correct orders to customers by the promised due date at the
lowest possible cost.
maintain a record of product receipt and complete payment.
maximize the conversion of customer arrivals to customer orders.
ensure that orders are quickly and accurately entered and


none of the above
16 16."Quality is defined by the customer" is : B
An unrealistic definition of quality
A user-based definition of quality
A manufacturing-based definition of quality
A product-based definition of quality
17 17. According to the manufacturing-based definition of quality D
quality is the degree of excellence at an acceptable price and the
control of variability at an acceptable cost
quality depends on how well the product fits patterns of consumer
preferences
quality is the degree to which a specific product conforms to
standards
18 The supply chain concept originated in what discipline? A
marketing
operations
logistics
production
19 Zero defects in manufacturing is C
is a relevant goal only in electronic assembly
is readily achievable in all areas
is the goal of TQM
is an unobtainable and misleading idea
The supply chain management philosophy emerged in which
20 decade? C
1960s
1970‟s
1980s
1990s
Which one of the following is not a typical question dealt with by
21 an operations managers? D
Which of the following are not key attributes of supply chain
22 management? C
inventory control

customer power
Positive, long-term relationships between supply chain participants
23 refer to: D
Co-opetitions
tailored logistics
partnerships
24 24.Which one of the following best represents a pure good? A
Soap
Fast food
Attending a play
Vehicle repair
25 25. Which of the following statements is true of LEAN? D
26 26. The bullwhip effect: B
applies to rodeos and has nothing to do with supply chain
management
Refers to variability in demand orders among supply chain
participants.
27 27. According to the manufacturing-based definition of quality D
quality is the degree of excellence at an acceptable price and the
control of variability at an acceptable cost
quality depends on how well the product fits patterns of consumer
preferences
quality is the degree to which a specific product conforms to
standards
28. The variability in demand orders among supply chain
28 participants: D
29 29. Cooperative supply chain relationships developed to enhance C

the overall business performance of both parties is a definition of:

dovetailing
30.Process improvement technique that sorts the "vital few" from
30 the "trivial many" is D
Taguchi analysis
Pareto analysis
benchmarking
Yamaguchi analysis
31 A fishbone diagram is also known as a B
cause-and-effect diagram
poka-yoke diagram
Kaizen diagram
Taguchi diagram
Which of the following functions is not a core function of an
32 organisation? A
The Product/Service Dev.Function
The Operations Function
The Marketing ( Including Sales ) Function
The accounting and finance function
33 33.Customer order fulfillment refers to D
ownership.
none of the above
34 34. The objective of customer order fulfillment is to D
get the correct orders to customers by the promised due date at the
lowest possible cost.
maintain a record of product receipt and complete payment.
maximize the conversion of customer arrivals to customer orders.
ensure that orders are quickly and accurately entered and
none of the above
35 35.Customer order receiving is D

makes a decision regarding a purchase
and the retailer allocates product to the customer.
ownership.
none of the above
36 36.The replenishment cycle occurs at the D
manufacturer/supplier interface
none of the above
37 37.The processes involved in the replenishment cycle include E
retail order receiving.
retail order entry.
retail order trigger.
retail order fulfillment.
all of the above
38.The processes included in the replenishment cycle include all of
38 the following except D
retail order receiving.
retail order entry
retail order trigger.
retail order fulfillment.
none of the above
39 39.The processes included in the replenishment cycle include D
order arrival.
retail trigger.
manufacturing.
receiving.
40 40. The replenishment cycle is initiated when D
the customer walks into the supermarket.
the customer calls a mail order telemarketing center.
customers load items intended for purchase into their carts.
a product is received into stock at a store.
None of the above.
41 41.The manufacturing cycle occurs at the D

none of the above
42 42.The processes involved in the manufacturing cycle include C
receiving.
manufacturing and shipping.
order arrival.
all of the above
43 43. The processes involved in the manufacturing cycle include B
order trigger.
order fulfillment.
order entry.
manufacturing order analysis.
44. The production scheduling process in the manufacturing cycle
44 is similar to the C
order receiving process in the replenishment cycle.
order fulfillment process in the replenishment cycle.
order entry process in the replenishment cycle.
order trigger process in the replenishment cycle.
none of the above
45.The manufacturing and shipping process in the manufacturing
45 cycle is equivalent to the B
order receiving process in the replenishment cycle.
order fulfillment process in the replenishment cycle.
order entry process in the replenishment cycle
order trigger process in the replenishment cycle.
none of the above
46 46.The procurement cycle occurs at the D
none of the above
47. The relationship between the manufacturer and supplier during
47 the procurement cycle is very similar to the relationship between D
customer and retailer.

retailer and distributor.

distributor and manufacturer.
manufacturer and customer.
48. The cycle view of the supply chain is useful when considering
48 operational decisions, because D
it categorizes processes based on whether they are initiated in
response to or in anticipation of customer orders.
it specifies the roles and responsibilities of each member of the
supply chain.
processes are identified as either reactive or speculative.
it focuses on processes that are external to the firm.
it focuses on processes that are internal to the firm.
49.The push/pull view of the supply chain is useful when
considering strategic decisions relating to supply chain design,
49 because A
it categorizes processes based on whether they are initiated in
response to or in anticipation of customer orders.
it specifies the roles and responsibilities of each member of the
supply chain.
it clearly defines the processes involved and the owners of each
process.
50.Which of the following statements about pull processes is
50 accurate? B
May also be referred to as speculative processes.
Execution is initiated in anticipation of customer orders.
At the time of execution, demand must be forecast
May also be referred to as reactive processes.
None of the above are accurate.


UNIT-II- Flows in SC:
Sr.
no Question Answer
Which of the following is not an accurate statement about pull
1 processes? A
May also be referred to as speculative processes.
Execution is initiated in response to a customer order.
At the time of execution, demand is known with certainty.
May also be referred to as reactive processes
All of the above are accurate.
2. Which one of the following is not a typical question dealt with by
2 an operations managers? C
3. Which of the following are not key attributes of supply chain
3 management? D
inventory control
customer power
4 4. The major decision areas in supply chain management are B
planning, production ,distribution, inventory
Location, production, scheduling ,inventory
location ,production ,inventory
location ,production, distribution, marketing
5 5. Distribution requirements planning is a system for D
inventory management
distribution planning
both ‘a’ and ‘b’
none of the above
6 6. Reverse logistics is required because C

goods are defective

goods are unsold
the customer simply change their minds
all of the above
7 7.PL stands for A
three points logistics
third party logistics
three points location
none of the above
8 8. What are the elements of logistics system ? C
transportation
warehousing
all of the above
9 9. Logistics system are made up of 3 main activities. C
order processing
none of these
10 10.E-logistics features : D
every modification is logged
advanced search capabilities
none of these above
11 11. Which is not a part of basic systems of codification? B
alphabetical system
numerical system
colour coding system
none of these above
12 12. Which of the following is not a component of 4 PL? B
control room
resource providers
Information

Recycling
13. Which of the following is not a part of supply chain management
13 system? D
Supplier
Manufacturer
information flow
Competitor
14 14DRP stands for A
distribution requirement planning
dividend requirement planning
distribution resource planning
distribution reverse planning
15 15.What is a perfect order? A
16 16. Supply chain macro processes include which of the following? D
Customer Relationship Management (CRM)
Internal Supply Chain Management (ISCM)
Supplier Relationship Management (SRM)
all of the above
none of the above
17 17.Supply chain macro processes include which of the following? B
Internal Relationship Management (IRM)
Customer Relationship Management (CRM)
External Relationship Management (ERM)
Supply Chain Relationship Management (SCRM)
none of the above
18 18.Supply chain macro processes include which of the following? D
Internal Relationship Management (IRM)
External Relationship Management (ERM)
Supplier Relationship Management (SRM)
Supply Chain Relationship Management (SCRM)

none of the above

19.Activities involved in the Customer Relationship Management
19 (CRM) macro process include B
planning of internal production and storage.
order fulfillment.
marketing.
supply planning.
demand planning.
20.Activities involved in the Customer Relationship Management
20 (CRM) macro process include all of the following except D
marketing.
sales.
order management.
call center management.
All of the above are activities of CRM.
21. Activities involved in the Internal Supply Chain Management
21 (ISCM) macro process include D
marketing.
order fulfillment.
sales.
order management.
call center management.
22.Activities involved in the Internal Supply Chain Management
22 (ISCM) macro process include all of the following except B
order fulfillment.
supply planning.
order management.
23. Activities involved in the Supplier Relationship Management
23 (SRM) macro process include C
order fulfillment.
supplier evaluation and selection.
order management.

24.Activities involved in the Supplier Relationship Management

24 (SRM) macro process include all of the following except A
negotiation of supply terms.
design collaboration.
demand planning.
supplier evaluation and selection.
supply collaboration.
25 25. A company’s competitive strategy D
defines the set of customer needs that it seeks to satisfy through its
products and services.
specifies the portfolio of new products that it will try to develop.
specifies how the market will be segmented and how the product will
be positioned, priced, and promoted.
determines the nature of procurement and transportation of materials
as well as manufacture and distribution of the product.
determines how it will obtain and maintain the appropriate set of skills
and abilities to meet customer needs.
26 26.A company’s product development strategy B
27 27.A company’s marketing and sales strategy C


28 A company’s supply chain strategy E
Which of the following determines the nature of procurement of raw
materials, transportation of materials to and from the company,
manufacture of the product or operation to provide the service, and
distribution of the product to the customer along with follow-up
29 service? A
Competitive strategy
Product development strategy
Marketing and sales strategy
Supply chain strategy
none of the above
30. Which of the following defines the set of customer needs that a
30 company seeks to satisfy through its products and services? A
none of the above
31.Which of the following specifies how the market will be
segmented and how the product will be positioned, priced, and
31 promoted? C


none of the above
32.Which of the following specifies the portfolio of new products that
32 a company will try to develop? B
all of the above
33 33. A supply chain strategy includes D
supplier strategy
operations strategy
logistics strategy.
all of the above
none of the above
34 34.A supply chain strategy involves decisions regarding E
inventory.
transportation.
operating facilities.
information flows.
all of the above
35.A supply chain strategy involves decisions regarding all of the
35 following except C
inventory.
transportation.
new product development
operating facilities.
information flows.
36.Which of the following is a key to the success or failure of a
36 company? D
The competitive strategy and all functional strategies must fit together
to form a coordinated overall strategy.

Each functional strategy must support other functional strategies and

help a firm reach its competitive strategy goal.
The different functions in a company must appropriately structure
their processes and resources to be able to execute strategies
successfully.
All of the above are keys to success.
None of the above are a key to success.
37.Which of the following is not a key to the success or failure of a
37 company? E
successfully.
None of the above are a key to success.
38. Which of the following is not a key to the success or failure of a
38 company? E
The competitive strategy and all functional strategies operate
independently of each other
successfully.
39 39. Which of the following are basic steps to achieving strategic fit? D
Understanding the customer and supply uncertainty.
Understanding the supply chain capabilities.
Achieving strategic fit.
All of the above are basic steps to achieving strategic fit.
None of the above are a basic step to achieving strategic fit.

40. Customer demand from different segments varies along which of

40 the following attributes? E
The quantity of product needed in each lot.
The response time that customers are willing to tolerate.
The variety of products needed.
The service level required.
all of the above
41 41.The uncertainty of customer demand for a product is the B
rate of strategic uncertainty.
demand uncertainty.
implied demand uncertainty.
average forecast error.
none of the above
42.The uncertainty that exists due to the portion of demand that the
42 supply chain is required to meet is the C
rate of strategic uncertainty.
demand uncertainty.
implied demand uncertainty.
average forecast error.
none of the above
43. Which of the following customer needs will cause implied
43 uncertainty of demand to increase? E
Range of quantity required increases
Lead time decreases
Variety of products required increases
Required service level increases
all of the above
44.Which of the following customer needs will cause implied
44 uncertainty of demand to decrease? A
Range of quantity required increases
Lead time decreases
Variety of products required increases
Required service level increases
none of the above

45.Which of the following customer needs will cause implied

45 uncertainty of demand to increase? B
Product margin
Lead time decreases
Average stockout rate
Average forced season end markdown
none of the above
46.Which of the following characteristics of customer demand have a
46 correlation with implied uncertainty? E
Product margin
Average forecast error
all of the above
47.Which of the following is not a characteristic of customer demand
47 correlated with implied uncertainty? D
Product margin
Unpredictable and low yields
None of the above are correlated with implied uncertainty
48. Which of the following supply chain capabilities will cause supply
48 uncertainty to increase? E
Frequent breakdowns
Poor quality
Limited supply capacity
all of the above
49.Which of the following supply chain capabilities will cause supply
49 uncertainty to increase? E
Evolving production process
Inflexible supply capacity
Limited supply capacity

all of the above

50. The first step in achieving strategic fit between competitive and
50 supply chain strategies is to D
understand the supply chain and map it on the responsiveness
spectrum.
understand customers and supply chain uncertainty.
match supply chain responsiveness with the implied uncertainty of
demand.
ensure that all functional strategies within the supply chain support
the supply chain’s level of responsiveness.
none of the above


UNIT-III Total SCM
Sr no. Question Answer

1.Identify from the following list a major strategic risk associated
1 with outsourcing. B
Outsourcing landed cost is usually higher than in sourcing cost.
The supplier is purchased by a competitor.
The business loses sight of market trends.
The cost of supplied material is passed on to the customer.
2.The impact of cost reduction on profits is much larger than the
2 impact of increased D
innovation.
production.
information.
sales.
3.The collective learning in the organization, especially how to
coordinate diverse production skills and integrate multiple streams of
3 technologies, is called D
. innovative constraint.
second-tier competency
corporate skill.
core competency.
4 4.Which of the following is true for supply chain management? D
The physical material moves in the direction of the end of chain
Flow of cash backwards through the chain
Exchange of information moves in both the direction
All of the above
5 5. The sequence of a typical manufacturing supply chain is B
Storage–Supplier–manufacturing–storage–distributor–retailer–
customer
Supplier–Storage-manufacturing–storage–distributor–retailer–
customer
Supplier–Storage-manufacturing– distributor–storage–retailer–
customer

Supplier–Storage-manufacturing–storage– retailer–distributor–
customer
6 6. The purpose of supply chain management is C
provide customer satisfaction
improve quality of a product
integrating supply and demand management
increase production
7. Logistics is the part of a supply chain involved with the forward
7 and reverse flow of D
goods
services
cash
all of the above
8. Due to small change in customer demands, inventory oscillations
become progressively larger looking through the supply chain. This is
8 known as A
Bullwhip effect
Netchain analysis
Reverse logistics
Reverse supply chain
9 9. VMI stands for B
Vendor material inventory
Vendor managed inventory
Variable material inventory
Valuable material inventory
10 10. The major decision areas in supply chain management are A
location, production, distribution, inventory
planning, production, distribution, inventory
location, production, scheduling, inventory
location, production, distribution, marketing
11 11. Distribution requirement planning is a system for C
Inventory management
Distribution planning
Both ‘a’ and ‘b’

None of the above

12 12. Reverse logistics is required because D
Goods are defective
Goods are unsold
The customers simply change their minds
All of the above
13. The second step in achieving strategic fit between competitive and
13 supply chain strategies is to D
spectrum.
understand customers and supply chain uncertainty.
demand.
ensure that all functional strategies within the supply chain support
the supply chain’s level of responsiveness.
none of the above
14. The final step in achieving strategic fit between competitive and
14 supply chain strategies is to E
spectrum
understand customers and supply chain uncertainty
demand.
combine customer and supply chain uncertainty and map it on the
implied uncertainty spectrum.
all of the above
15. Supply chain responsiveness includes the ability to do which of
15 the following? E
Respond to wide ranges of quantities demanded
Meet short lead times
Handle a large variety of products
Meet a very high service level
all of the above
16 the following? E

Handle supply uncertainty

Build highly innovative products
all of the above
17 the following? D
Handle supply uncertainty
Understand customers and supply chain uncertainty
Match supply chain responsiveness with the implied uncertainty of
demand
Ensure that all functional strategies within the supply chain support
the supply chain’s level of responsiveness
none of the above
18 the following? D
Understand customers and supply chain
demand
none of the above
19 the following? E
Understand customers and supply chain
demand
all of the above
20.The cost of making and delivering a product to the customer is
20 referred to as C
supply chain responsiveness

supply chain efficiency

cost-responsiveness efficient frontier
implied uncertainty.
none of the above
21. The curve that shows the lowest possible cost for a given level of
21 responsiveness is referred to as the D
supply chain responsiveness curve.
supply chain efficiency curve
cost-responsiveness efficient frontier.
responsiveness spectrum.
none of the above
22. A firm that is not on the cost-responsiveness efficient frontier can
22 improve A
both responsiveness and cost performance
only responsiveness.
only cost performance
responsiveness, but not cost performance
neither responsiveness nor cost performance.
23. A firm that is on the cost-responsiveness efficient frontier can
23 improve D
responsiveness only by increasing cost and becoming less efficient.
cost performance only by reducing responsiveness.
both responsiveness and cost performance by improving processes
and changing technology to shift the efficient frontier.
all of the above
neither responsiveness nor cost performance.
24. A graph with two axes with implied uncertainty along the
horizontal axis and responsiveness along the vertical axis is referred
24 to as the C
uncertainty/responsiveness map.
zone of strategic fit.
none of the above

25. The relationship where increasing implied uncertainty from

customers and supply sources is best served by increasing
25 responsiveness from the supply chain is known as the D
uncertainty/responsiveness map.
zone of strategic fit.
none of the above
26 26. To achieve complete strategic fit, a firm must D
consider all functional strategies within the value chain.
ensure that all functions in the value chain have consistent strategies
that support the competitive strategy.
ensure that all substrategies within the supply chain such as
manufacturing, inventory, and purchasing be consistent with the
supply chain’s level of responsiveness.
all of the above
none of the above
27 27. The drive for strategic fit should come from D
the supply chain manager.
the strategic planning department.
the highest levels of the organization, such as the CEO.
middle management.
sales and marketing.
28 28. The important points to remember about achieving strategic fit are D
there is one best supply chain strategy for all competitive strategies
there is no right supply chain strategy independent of the competitive
strategy.
there is a right supply chain strategy for a given competitive strategy
all of the above
b and c only
29. The preferable supply chain strategy for a firm that sells multiple
29 products and serves customer segments with very different needs is to D
set up independent supply chains for each different product or
customer segment.

set up a supply chain that meets the needs of the highest volume
product or customer segment.
tailor the supply chain to best meet the needs of each product’s
demand.
set up a supply chain that meets the needs of the customer segment
with the highest implied uncertainty.
set up a supply chain that meets the needs of product with the highest
implied uncertainty.
30. Which of the following would not be a demand and supply
30 characteristic toward the beginning stages of a product’s life cycle? C
Demand is very uncertain and supply may be unpredictable
Demand has become more certain and supply is predictable.
Margins are often high and time is crucial to gaining sales.
Product availability is crucial to capturing the market.
Cost is often of secondary consideration.
31. Which of the following would be a demand and supply
31 characteristic toward the beginning stages of a product’s life cycle? A
Margins are lower due to an increase in competitive pressure.
Price becomes a significant factor in customer choice.
none of the above
32. Which of the following would not be a demand and supply
32 characteristic in the later stages of a product’s life cycle? E
Margins are lower due to an increase in competitive pressure.
Price becomes a significant factor in customer choice.
All of the above are characteristics of the later stages.
33 33. All of the above are characteristics of the later stages. C
competitive strategy.
supply chain strategy.
scope of strategic fit.

scope of marketing strategy.

scope of product development strategy.
34. The most limited scope over which strategic fit is considered is
one operation within a functional area in a company. This is referred
34 to as E
intracompany intraoperational scope.
intracompany intrafunctional scope.
intracompany interoperational scope.
intercompany interfunctional scope.
agile intercompany scope.
35. Which of the following is not a major driver of supply chain
35 performance? A
Facilities
Inventory
Transportation
Information
All of the above are major drivers of supply chain performance.
36. Which of the following is not a major driver of supply chain
36 performance? B
Customers
Facilities
Inventory
Transportation
Information
37.The places in the supply chain network where product is stored,
37 assembled, or fabricated are known as B
facilities.
inventory.
transportation.
information.
customers.
38 38.Moving inventory from point to point in the supply is known as C
facilities.
inventory.

transportation.
information.
customers.
39.The data and analysis concerning facilities, inventory,
transportation, and customers throughout the supply chain is known
39 as D
facilities.
inventory.
transportation.
information.
customers.
40 40. The two major types of facilities are E
distribution sites and storage sites.
production sites and distribution sites.
production sites and storage sites.
retail sites and distribution sites.
distribution sites and inventory sites.
41.Which component of the supply chain decision-making framework
41 would be established first? D
Customer strategy
Supply chain structure
Replenishment strategy
42. Which component of the supply chain decision-making
42 framework would be established second? B
Customer strategy
43.Which component of the supply chain decision-making framework
would be used to reach the performance level dictated by the supply
43 chain strategy? C

Customer strategy
44 44. Which of the following is not a component of facilities decisions? E
Location
Capacity
Operations methodology
Warehousing methodology
All of the above are components of facilities decisions.
45 45. Which of the following is not a component of facilities decisions? B
Warehousing methodology
Forecasting methodology
Operations methodology
Capacity
Location
46. Which of the following statements concerning decisions regarding
46 location of facilities is false? D
Deciding where a company will locate its facilities constitutes a large
part of the design of a supply chain.
A basic trade-off here is whether to centralize to gain economies of
scale or decentralize to become more responsive by being closer to
the customer.
Companies must also consider a host of issues related to the various
characteristics of the local area in which the facility may be situated.
All of these statements are true.
None of these statements are true.
47.Which of the following is not an issue companies need to consider
47 in facility location decisions? B
quality of workers
product development
proximity to customers and the rest of the network
cost of facility

tax effects
48. Which of the following is not an issue companies need to consider
48 in facility location decisions? E
quality of workers
availability of infrastructure
proximity to customers and the rest of the network
cost of facility
All of the above are issues companies need to consider in facility
location decisions.
49 49. Excess capacity D
allows a facility to be very flexible and to respond to wide swings in
the demands placed on it.
costs money and therefore can decrease efficiency.
requires proximity to customers and the rest of the network.
both a and b
all of the above
50. Which of the following is a characteristic of a facility with excess
50 capacity? A
will likely be more efficient per unit of product it produces than one
with a lot of unused capacity
would be very flexible and to respond to wide swings in the demands
placed on it
would be considered a high utilization facility
will have difficulty responding to demand fluctuations
none of the above


Course Code- 206 Course Name -Service Chain Management
UNIT-IV- SCM Building Blocks:
Sr no. Question Answer

1 1.A facility with little excess capacity D
will likely be more efficient per unit of product it produces than one
with a lot of unused capacity.
would be considered a high utilization facility.
will have difficulty responding to demand fluctuations.
2. Which of the following would be a characteristic of a facility with
2 little excess capacity? D
allows a facility to be very flexible and to respond to wide swings in
the demands placed on it
costs money and therefore can decrease efficiency
requires proximity to customers and the rest of the network
will likely be more efficient per unit of product it produces
none of the above
3 3. Which of the following is not a warehousing methodology? A
Warehouse unit storage
Stock keeping unit (SKU) storage
Job lot storage
Cross-docking
All of the above are warehousing methodologies.
4. The warehousing methodology that uses a traditional warehouse to
4 store all of one type of product together is B
warehouse unit storage.
stock keeping unit (SKU) storage.
job lot storage.
cross-docking.
none of the above

5. The warehousing methodology in which all the different types of

products needed to perform a particular job or satisfy a particular type
5 of customer are stored together is C
warehouse unit storage.
stock keeping unit (SKU) storage.
job lot storage.
cross-docking.
none of the above
6. The following warehousing methodology is one in which goods are
not actually warehoused in a facility. Instead, trucks from suppliers,
each carrying a different type of product, deliver goods to a facility.
There the inventory is broken into smaller lots and quickly loaded
onto store-bound trucks that carry a variety of products, some from
6 each of the supplier trucks. D
warehouse unit storage
stock keeping unit (SKU) storage
job lot storage
cross-docking
none of the above
7 7.All of the following are components of inventory decisions except E
cycle inventory.
safety inventory.
seasonal inventory.
sourcing.
All of the above are components of inventory decisions.
8 8. All of the following are components of inventory decisions except A
capacity.
cycle inventory.
safety inventory.
seasonal inventory.
sourcing.
9. The average amount of inventory used to satisfy demand between
9 receipt of supplier shipments is referred to as A
cycle inventory.
safety inventory.

seasonal inventory.
sourcing.
none of the above
10.The inventory that is built up to counter predictable variability in
10 demand is called C
cycle inventory.
safety inventory.
seasonal inventory.
sourcing.
none of the above
11.The inventory held in case demand exceeds expectation in order to
11 counter uncertainty is called B
cycle inventory.
safety inventory.
seasonal inventory.
sourcing.
none of the above
12.The set of business processes required to purchase goods and
12 services is known as D
cycle inventory.
safety inventory.
seasonal inventory.
sourcing.
none of the above
13 13. Cycle inventory decisions involve D
how much to order for replenishment.
how often to place orders.
a basic trade-off between the cost of holding larger lots of inventory
and the cost of ordering product frequently.
all of the above
a and b only
14 14. Cycle inventory is used because B
the world is perfectly predictable.
demand is uncertain and may exceed expectations.

it involves making a trade-off between the costs of having too much

inventory and the costs of losing sales due to not having enough
inventory.
15 15. Seasonal inventory should be used when A
a company can rapidly change the rate of its production system at a
very low cost.
changing the rate of production is expensive (e.g., when workers must
be hired or fired).
adjusting to a period of low demand without incurring large costs.
the world is perfectly predictable.
production rate is flexible.
16 16. Sourcing involves E
deciding the tasks that will be outsourced and those that will be per-
formed within the firm.
deciding whether to source from a single supplier or a portfolio of
suppliers.
identifying the set of criterion that will be used to select suppliers and
measure their performance.
selecting suppliers and negotiating contracts with them.
all of the above
17.Which of the following are key components of transportation
17 decisions when designing and operating a supply chain? D
Mode of transportation
Route and network selection
In-house or outsource
all of the above
none of the above
18. Which of the following are key components of transportation
18 decisions when designing and operating a supply chain? B
Software selection
Mode of transportation
Source selection
Warehouse selection

none of the above

19.Which of the following are key components of information that
must be analyzed to increase efficiency and improve effectiveness in
19 a supply chain? E
Push versus pull
Coordination and information sharing
Forecasting and aggregate planning
Pricing and revenue management
all of the above
20. Which of the following are key components of information that
must be analyzed to increase efficiency and improve effectiveness in
20 a supply chain? D
Software selection
Source selection
Warehouse selection
Forecasting and aggregate planning
none of the above
21. When all the different stages of a supply chain work toward the
objective of maximizing total supply chain profitability, rather than
each stage devoting itself to its own profitability without considering
21 total supply chain profit, it is known as A
supply chain coordination.
forecasting.
aggregate planning.
revenue management.
pricing.
22. The art and science of making projections about what future
22 demand and conditions will be is B
forecasting.
aggregate planning.
revenue management.
pricing.
23. Transforming forecasts into plans of activity to satisfy the
23 projected demand is known as C

forecasting.
aggregate planning.
revenue management.
pricing.
24.The process by which a firm decides how much to charge
24 customers for its goods and services is E
forecasting.
aggregate planning.
revenue management.
pricing.
25. The use of differential pricing over time or customer segments to
25 maximize profits from a limited set of supply chain assets is D
forecasting.
aggregate planning.
revenue management.
pricing.
26. Which of the following are technologies that share and analyze
26 information in the supply chain? E
Electronic Data Interchange (EDI)
Internet
Enterprise Resource Planning (ERP)
Supply Chain Management (SCM) software
all of the above
27.Which of the following are technologies that share and analyze
27 information in the supply chain? A
Internet
Enterprise Data Planning (EDP)
Electronic Resource Interchange (ERI)
Chain Management (CM) software
none of the above
28. The steps taken to move and store a product from the supplier
28 stage to a customer stage in the supply chain is referred to as D

transportation.
retailing.
wholesaling.
distribution.
manufacturing.
29.Distribution is a key driver of the overall profitability of a firm
29 because B
the addition of distributors only adds cost to the supply chain.
it directly impacts both the supply chain cost and the customer
experience.
it slows down the responsiveness of the supply chain.
it cannot be developed as a part of supply chain strategy.
Distribution is not a key driver of profitability
30.Which one of the following is not a typical question dealt with by
30 an operations managers? D
31. A worker operates a shear press. She notices that the metal sheets
she is cutting have curled edges. Who should get the first "shot" at
31 solving the problem? B
the foreman
a member of the Quality Control department
the operator herself
the employee's supervisor
32. Which of the following is not a key activity of an operations
32 manager? C
Understanding the needs of customer
Continually learning
Managing cash flows
Exploiting technology to produce goods and services
33 33. Which one of the following best represents a pure service? C
Bank loans
Computer diagnosis and repair
Attending a theatre play

Fast food restaurant

34 34.Which one of the following best represents a pure good? A
Salt
Fast food
Attending a play
Vehicle repair
35.Which one of the following would not generally be considered an
35 aspect of operations management? C
Schedule work
Maintain quality
Oversee the transformation process
36. Which one of these was not mentioned in the list of recent trends
36 in operations management? A
Total quality management
Worker involvement
Global competition
Automation.
37. Which came last in the development of manufacturing
37 techniques? B
Lean production.
Division of labor.
Mass production.
Craft production.
38.Which function typically employs more people than any other
38 functional area? B
Information System
Operations
Marketing
Finance
39 39.Which of the following is not a typical supply chain member? D
Retailer‟s Creditor
Wholesaler
Producer
Customer

40 40. Quality is both quantitative and B

Supportive
Qualitative
Measurable
Conclusive
41. Marketing logistics involves getting the right product to the right
customer in the right place at the right time. Which one of the
41 following is not included in this process? D
42.Raw materials and specialised services procured are converted into
useful service offerings and finaly distributed to customers in
42 following Industry A
Hotel
Cement
Sugar
Refinery
43 logistics manager? D
inventory
purchasing
warehousing
marketing
44.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
44 of operation. D
reduction-inventory management
economic order quantity
just-in-time logistics
limited inventory logistics
45.There are four generic processes involved in any SCM-Planning
45 for operations,Sourcing decisions,Manufacturing related activities D

and
Purchase
Inventory
Information
Distribution
46 46.Lean production involves C
47.Today, a growing number of firms now outsource some or all of
47 their logistics to ________ intermediaries. D
competitors
third-party logistics providers
channel members
cross-functional teams
48. Most operations produce a mixture of both products and services.
Which of the following businesses are closest to producing “pure”
48 services? A
Counsellor/Therapist
Restaurant
IT company
Steel company
49.If a sample of parts is measured and the mean of the measurements
49 is outside the control limits the process is B
in control, but not capable of producing within the established control
limits
within the established control limits with only natural causes of
variation
monitored closely to see if the next sample mean will also fall outside
the control
limits
50 50. The trend in organizations is to place the SCM function: D
Under the manufacturing function
Under the finance function

Under the engineering function

At the same level as the other major functions


Course Code- 206 Course Name -Supply Change Management
UNIT-V- Customer Value:
Sr
no. Question Answer
1. Which of the following is NOT a factor affecting the supply
1 chain? C
Reduced number of suppliers
Increased competition
Longer product life cycles
Increased opportunities to strategically use technology
2. If two potential suppliers can deliver a part with the same quality
2 and prices, the selection should be based on: D
Age of the firms
A coin flip
Outside evaluation
The capabilities and flexibilities of the firms
3 3. Just-in-time/SCM purchasing requires the following condition: C
Many suppliers
Short-term contracts
Cooperation between purchasing and suppliers
Continuous competitive bidding
4. The amount of inventory kept at each stock point in a warehouse
4 network is usually based on: C
Minimizing transportation costs
Constant demand
Tradeoffs between warehousing, inventory, and transportation costs
Product pricing strategy
5 5. Which of the following is true regarding control charts? D
Values above the upper and lower control limits indicate points out
of adjustment.
Control charts are built so that new data can be quickly compared to
past performance data.
Control charts graphically present data.


6 6. The goal of inspection is to D
detect a bad process immediately
add value to a product or service
correct deficiencies in products
correct system deficiencies
7 7. Which of the following is not a typical inspection point? A
upon receipt of goods from your supplier
during the production process
before the product is shipped to the customer
at the supplier's plant while the supplier is producing
after a costly process
8. What name is often given to the Japanese „total approach‟ to
8 removing anything that does not add value to the final product? B
Jobbing processes
Lean production processes
Continuous processes.
Batch processes.
9 9. Lean production involves C
10 10. The most common form of quality control includes: C
Planning
Organizing
Inspection
Directing
11 11. Which of the following is not a typical supply chain member? D
Retailer‟s creditor
wholesaler
reseller
producer
12 12. A supply chain is a sequence of firms that perform activities D

required:
to find products that are similar
to facilitate wholesalers inventory selections
to create synergy in their training programs
to create and deliver goods to consumers
13 13. A supply chain is essentially a sequence of linked: C
customer and prospects
supplier and manufacturer
warehousing and wholesaling units
14. Marketing logistics involves getting the right product to the
right customer in the right place at the right time. Which one of the
14 following is not included in this process? D
15. A supply chain is a sequence of firms that perform activities
15 required: D
16 16.A supply chain is essentially a sequence of linked: C
17 logistics manager? D
inventory
purchasing
warehousing
marketing
18 18. Supply chain concept originated in what discipline? C

marketing
operations
logistics
production
19 19. A restaurant is an example of a B
major service with accompanying goods and services
hybrid
pure service
pure tangible good
20. The supply chain management philosophy emerged in which
20 decade? D
1960s
1970s
1980s
1990s
21.Which of the following are not key attributes of supply chain
21 management? D
inventory control
customer power
22.Positive, long-term relationships between supply chain
22 participants refer to: C
co-opetitions
tailored logistics
partnerships
23 23.The bullwhip effect: D
applies to rodeos and has nothing to do with supply chain
management
refers to variability in demand orders among supply chain
participants.
24.The variability in demand orders among supply chain
24 participants: B

25. Cooperative supply chain relationships developed to enhance
25 the overall business performance of both parties is a definition of: B
dovetailing
26 26. What is a perfect order? A
27. Which of the following is NOT a reason that companies are
27 depending more on their suppliers? D
More focus on core competencies
Need for more flexibilities
Desire to share risks
More control over their suppliers
28 28. Which of the following is NOT a benefit of SCM Purchasing? D
Consistent quality
Savings on resources
Lower costs
Less dependence on suppliers
29. What term describes a vertical expansion of job duties in order
29 to give the worker more responsibility? C
Job enlargement
Job rotation
Job enrichment
Job design
30 30. What are the two basic types of production systems? B
Automated and manual

Intermittent and non-intermittent process

Normal and continuous process
Continuous process and batch
31 31.What type of process would a paper mill be most likely to use? A
Continuous flow
Project
Job shop
Flow shop
32.What technique deals with the problem of supplying sufficient
facilities to production lines or individuals that require uneven
32 service? D
Supply-demand theory
PERT
Inventory theory
Queuing theory
33. A manufacturer has been receiving excessive numbers of
defective standard machine parts from a vendor on a regular basis.
What is the most effective way to design a formal inspection system
33 for incoming parts? C
Queuing analysis
Time series analysis
Statistical quality control
Regression analysis
34.A set of simultaneous equations that has more variables than
34 constraints has B
no solution
an infinite number of solutions
a finite solution
an infinite solution
35 35.In a PERT/CPM network, computing the critical path requires B
determining the total project duration
assigning the earliest finish time for an activity as the earliest start
time for the next
that the latest finishing time for an activity not delay the overall
project beyond initial expectation
a sophisticated and complex computer program

36.At the completion of the forward and backward passes, the slack
36 for an activity is given by the A
difference between early start and early finish
difference between early start and early finish
difference between latest start and early finish
amount of idle labor on the critical path
37.A supply chain is a sequence of firms that perform activities
D
37 required:
to create synergy in their training programs
to support the acquisition of raw materials
38.An important feature of supply chain management is its
application of electronic commerce technology that allows A
38 companies to share and operate systems for:
order processing, transportation scheduling, and inventory
management.
cost-effective flowing of raw materials
future purchasing of computer systems
future merger opportunities
prospecting new business ventures.
39 39. A supply chain is essentially a sequence of linked: C
events in the marketing process
40. In the automotive industry, the person who is responsible for
translating customer requirements into actual orders and arranges D
40 delivery dates is the car maker:
supply manager
purchasing manager
production manager
supply chain manager

VP for production
41 41.The physical characteristics of a product will often dictate what: E
types of sales can be made
forms of sales promotion to be used
types of instructions needed
geographic regions will be included
kinds of transportation can be used
42. Pricing interacts with a supply chain in many ways. For
instance, transportation rate structures are adjusted by the carrier B
42 based on:
cost to unload
the size of the shipment
local currency rates
the logistics costs concept
43. The total logistics cost includes expenses associated with B

43 transportation, materials handling and:
customer complaints, cost of food and highway usage taxes
warehousing, inventory, stock outs and order processing
inventory control with sales forecasting
stock outage control with sales forecasting
historical figures weighted by last years numbers
44 44. The total logistics cost factors need to be balanced against the: C
supply chain managers total experience
total expected transportation needs
customer service factors
lead time expectations
replenishment time forecasts
45 45. Lead time and order cycle time are the same as D
customer service time
supply chain flow
logistical clockage
replenishment time
real time service time

46. The inventory management systems designed to reduce the A

46 retailer's lead time for receiving merchandise is called:
efficient consumer response delivery system.
effective response.
on-time market delivery system.
efficient logistical response.
on-time consumer response systems.
47 47. Examples of third-party logistics providers are: C
FedEx and Rosenau Transport
Sentinel Self-Storage and UPS
FedEx and UPS
UPS and Metro Van Lines
Purolator and Metro Van Lines
48. The seller must concentrate on removing unnecessary barriers
B
48 for:
a quick response.
customer convenience.
transportation modes.
a piggyback operation.
a more personable relationship with the customer.
49. There are five basic transportation modes. They are air carrier,
A
49 motor carrier, and:
pipelines, railways an water carriers
railways, ocean vessels and dirigibles
trucks, canals and robotics
water routes, railways and trucks
pipeline, water routes and ocean vessels
50 50. Rail has the largest shipping capacity compared to all except: C
pipeline
air carrier
water carrier
motor carrier
none of the above

Unit 2 Production Processes
1. What term describes a vertical expansion of job duties in order to give the worker more
responsibility?
a. Job enlargement
b. Job rotation
c. Job enrichment
d. Job design
2. What are the two basic types of production systems?
a. Automated and manual

b. Intermittent and non-intermittent process
c. Normal and continuous process
d. Continuous process and batch
3. What type of process would a paper mill be most likely to use?
a. Continuous flow
b. Project
c. Job shop
d. Flow shop
4. Which of the following is not a mark of a good layout in manufacturing?
a. straight line flow pattern (or adaptation)

b. predictable production time
c. bottleneck operations
d. work stations close together
e. open plant floors (high visibility)
5. Which of the following is also referred to as a layout by function?
a. Process layout
b. Product layout
c. Group technology layout
d. Fixed-position layout
e. Assembly line
6. A flow shop layout is often referred to as a:
a. Process layout
b. Product layout
c. Group technology layout
d. Fixed-position layout
e. Batch process
7. According to the authors, when balancing an assembly line, it is best to start by:
a. determining the required cycle time.

b. computing the minimum number of work stations.
c. drawing a precedence diagram.
d. establishing rules by which tasks are to be assigned to work stations.
e. assigning tasks to individual work stations.
8. All of the following are inputs to the facility layout decision EXCEPT:
a. specifying system output and flexibility objectives.

b. identifying bottleneck work stations.
c. estimating system demand.
d. determine the number of operations and flows between departments.
e. determining space availability.
9. When similar equipment or functions are grouped together the type of layout is referred to as a:
a. product layout.
b. fixed-position layout.
c. process layout.
d. cellular layout.
e. none of the above.
11. A shipyard is an example of a:
a. process layout.
b. product layout.
c. group technology layout.
d. fixed-position layout.
e. none of the above.
12. The time between successive units coming off the end of the line is known as the:
a. make span time.

b. throughput time.
c. value added time.
d. cycle time.
e. assembly time.
13. Which of the following is not a basic process flow structure?
a. WorkCenter
b. Mass Attack
c. Assembly Line
d. Project Layout
e. Continuous Process
14. The type of processing structure that is used to produce gasoline, chemicals, and drugs is:
a. WorkCenter
b. Batch
c. Assembly Line
d. Project Layout
15. The type of processing structure that is used for producing discrete products at higher volume
is:
a. WorkCenter
b. Batch
c. Assembly Line
d. Project Layout
16. The major decision variables in equipment selection are:
a. Flexibility
b. Labor requirements
c. Manufacturer
d. Both A and B
e. Both B and C
17. The product-process matrix:
a. shows as volume decreases an assembly line is the solution

b. shows as volume increase specialized equipment becomes cost effective
c. shows all process structures except work centers are inefficient
d. guides companies on what products to produce
e. allows a manager to justify buying new equipment
18. A breakeven point indicates which of the following:
a. The point where profit is maximized

b. The point where cost is minimized
c. The point where we are indifferent between two options
d. The point where we are most efficient
e. All of the above
19. The type of processing structure that is used for producing discrete products at higher volume
is:
a. WorkCenter
b. Batch
c. Assembly Line
d. Project Layout
20. Which of the following is not one of the assumptions for Cost Volume Analysis
a. One product is not involved

b. Everything produced can be sold
c. Variable cost per unit is the same regardless of volume
d. Fixed costs do not change with volume
21. Which of the following does not fall under Economic Production Quantity ( EPQ)
a. Only two or more items are involved

b. Annual demand is known
c. Usage rate is constant
d. Usage occurs continually
22. Advantages of Process Layout Include
a. Equipment used is less costly

b. Low unit cost.
c. Labor specialization.
d. Low material handling cost
23. Common types of Operations include
a. Continuous Processing.
b. Intermittent Processing.
c. Automation
d. All of the above
24. As production systems move from projects to batch production to mass production to
continuous production
a. Processes become more flexible
b. Customer involvement with the process increases

c. Products become more standardized
d. Demand volumes decrease
25. A big advantage of a process layout is
a. Its flexibility
b. Its low cost
c. The ability to employ low-skilled labour
d. Its high equipment utilization
26. A useful process improvement tool to search for the root cause of a problem is the
……………. process?
a. 3 Whats
b. 4 Whos
c. 5 Whys
d. 6 Wheres
27. In a materials processing operation, which of the following process type is associated with the
highest volume and lowest variety?
a. Job shop
b. Batch process
c. Mass process
d. Continuous process
28. In a materials processing operation, which process is associated with the highest variety?
a. Project
b. Job shop
c. Batch process
d. Mass production
29. In a customer processing operation, which process type has the lowest volume?
a. Mass service
b. Service shop
c. Professional service
d. Self service
30. In a Process Strategy, High Variety & Low Volume should focus on ………………
a. Processes
b. Product
c. Both a & b
31. In a Process Strategy, Low Variety & High Volume should focus on ……………..
a. Processes
b. Product
c. Both a & b
32. Which of the following are the Determinants of Process Characteristics?
a. Volume
b. Variety
c. Flow
d. All of the above
33. The project process has a ………………….
a. Matching Volume to Variety

b. High Degree of Job Customization
c. High Degree of Flexibility
d. Job Repetition & Rotation
34. Similar products or services are manufactured repeatedly using intermittent flow is called as
…………………
a. Batch Production
b. Continuous Production
c. Job Shop Production
d. Project Production
35. Production of Automobiles, Electronic Appliances, Personal Computers & Toys like products
are manufactured using …………………..
a. Continuous Flow
b. Line Flow
c. Job Shop Flow
d. Batch Flow
36. A Layout designed to Product which is too large to move is example of ……………
a. Process layout
b. Product Layout
c. Fixed Product Layout
d. Hybrid Layout
37. A Layout designed to Group similar resources together is example of ………………
a. Process layout
b. Product Layout
d. Hybrid Layout
38. A Layout designed to produce a specific product, or a small number of products efficiently is
example of …………………….
a. Process layout
b. Product Layout
d. Hybrid Layout
39. When Volume of Production is High (Mass Production) then ……………. is Feasible.
a. Product Layout
b. Process Layout
c. Fixed Layout
d. Flexible Layout
40. When Volume of Production is ……………… then Process Layout is Feasible
a. High
b. Medium
c. Low
d. Average
41. The resources arranged are as ………………. to each product for smooth component flow in
each job shop
a. Dedicated
b. Shared
c. Arranges one per each department
d. Arranged Systematically
42. Private Sector banks follow …………………
a. Process layout
b. Mixed Layout
c. Product Layout
d. Customer Service Layout
43. Public Sector banks follow …………………
a. Process layout
b. Mixed Layout
c. Product Layout
d. Customer Service Layout
44. Service blueprint is a ………….. that accurately portrays the service system to provide better
services to people
a. Projection
b. Blue Print
c. Diagram/Design
d. None of the Above
45. In service blue printing, ……………… is where the customer directly interacts with the
service providers
a. Line of Services
b. Line of Interaction
c. Line of Internal Interaction
d. Lobby
46. In service blue printing, ………………….. is where the service providers interacts with the
service supporters
a. Line of Services
b. Line of Interaction
d. Lobby
47. Beyond this line, the customer cannot see the activities of service providers
a. Line of Interaction
b. Line of Visibility
d. Line of Usability
48. In the first instance ……………….. allows the customer to make a decision on quality of
services as per service blue print
a. Line of Interaction
b. Front Stage Actions
d. Physical Evidences
49. Efficiency is defined by
a) Actual output divided by design capacity.

b) Capacity divided by utilization.
c) Effective capacity divided by actual output.
d) Actual output divided by effective capacity. .
50. Which of the following is an implication of low variety?
a) Low unit cost

b) Flexibility needed
c) High complexity
d) Matching customers specific needs .
51. Operations typically differ in terms of volume of output, variety of output, variation in
demand or the degree of ‘visibility’ (i.e, customer contact) that they give to customers of
the delivery process. Please match the following element with the most appropriate of the
above dimensions. Low unit costs are most closely matched to:-
a) Variety
b) Variation
c) Volume
d) Visibility .
Unit 3 PPC
1. Efficiency is defined by
a) Actual output divided by
design capacity. b) Capacity
divided by utilization.

2. In a materials processing operation the design capacity is defined as

a) The Minimum Output Per
Given Time. b) The Aggregate
Annual Output.
c) The Theoretical Maximum Output in A Given Time.

d) The Most Likely Output In A Given Time. .
3. Adjusting inputs to an operation so that outputs match demand is known as

?
a) A level capacity strategy
b) A demand management strategy
c) A chase demand strategy
d) A yield management strategy .
4. Having a 'happy hour' in a pub or restaurant is an example of which type

of capacity management?
a) A level capacity strategy
b) A demand management strategy
c) A chase demand strategy
d) A yield management strategy .
5 Activities which are undertaken before the final operation are termed
activities.
a) Upstream
b) Primary
c) Secondary
d) Downstream .
6. Selecting suppliers and purchasing items is called ?

a) Negotiation
b) Procurement
c)
Contracting
d) Selection
.
7. The main benefit to an operation of having multiple sourcing is ?

a) Consistent
quality
b) Speed of
delivery
c) Continuity of supply
d) Flexibility of products .
8. Which of the following is an advantage of single sourcing?

a) Continuity of supply
b) Ability to keep prices down
c) Increased flexibility of supply
d) Lower administration cost .
9. When an organization owns its suppliers it is known as ?

a) Downstream supplier collaboration
b) Backward vertical integration
c) Forward vertical integration
d) Upstream supplier collaboration .
10. Henry Gantt - recognized the value of nonmonetary rewards to motivate
workers, and developed a widely used system for scheduling, called Gantt
charts
a) Nonmonetary Rewards
b) Monetary Rewards
c) Employee
Motivation d)
Flow Charts .
11. Vertical integration or outsourcing to manage with Operations & Supply is

a decision also called as_
a) Expansion of business
b) Backward integration
c) Make or buy decision
d) Outsourcing decision
12. Reducing unnecessary motion in operations can significantly improve

throughput. Making these improvements is known as ?
a) Eco-motion
b) Ergonomics
c) Economics
d) Employment
13. Which of these is not one of the 5 principles of lean production?

a) Specify value to the
customer
b) Identify the value
stream
c) Push goods through to completion

d) Strive for perfection .
14. Organizations generally use demand forecasting to

develop
a) Financial Plans
b) Facilities
Plans
c) Marketing
Plans
d) All of the
above
15. Which of the following is used for identifying the total resources
requirement for meeting market demand
a) Capacity Planning
b) MRP-I
c) MRP-II
d) Inventory Management .
16. MRP through MPS, ensures availability of required raw materials at the
point of utilization. Thus MRP ensures..
a) Better Customer Services and delivery of value
b) To reduce cost of manufacturing
c) To improve schedule of maintenance
d) To improve performance of financial department .
17. Production Planning includes;

a) Orders booking from market
b) Planning production budget
c) Operation Layout
d) All of the Above .
18. The last step in production control is..

a) Tools & Techniques
b)
Dispatching
c)
Scheduling
d) Time
Estimating
19. The correct sequence of operations in production planning and control is…
a) Routing-Scheduling-Dispatching-Follow up
b) Scheduling-Routing-Dispatching-Follow up
c) Dispatching-Routing-Scheduling-Follow up
d) Routing-Scheduling-Follow up-Dispatching .
20. Which of the Following is true for Routing
a) It is the flow of work in the plant

b) Route sheets include list of machines and tools to follow
c) It depends upon material handling facilities
d) All of the above .
21. Loading in operations means..
a) Sending the raw materials to the machines

b) Sending the finished materials to the store
c) Assigning the work to the facilities
d) Uploading the software in machine control panel .
22. Dispatching authorizes the start of production operations

by..
i) Release of materials and components from store to floor

ii) Release of materials from process to the process
iii) Issue of drawings instruction sheets
Which of the above is true
a) Only I
b) Only
ii
c) I & ii
d) i, ii & iii .
23. Bills of Materials consists of
a) Part number
b) Part
Specification
c) Price of the
part
d) All of the
above
24. Procurement cycle time is time consumed
for..
a) Receiving of Raw Materials

b) Inspection of the received Materials
c) Storage of Materials
d) All of the Above .
26. Master Production Schedule allows
a) Schedule of dispatch of Materials –MRP-I

b) Schedule of sequencing and loading of facilities-MRP-II
c) Capacity Requirement Planning-CRP
27. Gantt Chart is mainly useful for the …

a) Routing
b) Scheduling
c) Follow up
d) Inspection & Quality Control .
28. The process of comparing output to the previously decided plans as

well set standards is to determine if corrective actions is needed is called
as…
a) Production Planning
b) Production Scheduling
c) Production Forecasting
d) Production Control .
29. Master Production Scheduling step achieved after aggregate planning

requires…
a) Disaggregating the Aggregate Plan

b) Sub Optimization of Demand
c) Strategy Formulation
d) Rough Cut Capacity Planning .
30. is the ability of the manufacturing organizations to meet

the demand of market
a) Priority
b) Capacity
c) Forecasting
d) Control .
31. The is the plan for the production of individual end items
per day, per week, per month on long time horizon
a) JIT
b)
MPS
c)
MRP-I
d)
DRP .
32. A Strategy means producing exactly what is demanded in the

market by the customers at a given time
a) Chase
b) Production Leveling
c) Sub Contracting
d) TQM .
33. is the first step in PPC system

a) Production Planning
b) Forecasting
c) Inventory Management
d) Dispatching of the Materials .
34. The main objective of PPC is to ensure..
a) Smooth Flow of Materials

b) Intermittent Flow Materials
c) Continuous Flow Materials
d) Job Flow Materials .
35. Which of the following is not the technique of
Forecasting
a) Simple Moving Average Method
b) Exponential Smoothing factor

c) Weighted Moving Average Method
d) Market Potential .
36. In the environment, several product options exist

(e.g., automobiles) and the customer is not willing to wait until the product is
made. Therefore manufacturers produce and stock standard component parts.
a) make-to-order
b) Production
leveling
c) make-to-
stock
d) assemble to order .
37. is also called as part list or building list is the document

generated at the design stage
a) MPS
b) BoM
c) MRP-I
d) MRP-II .
38. Purchasing is the task of buying 5R’s of materials then Procurement is
a) Receiving of the Materials at Store

b) Checking of Materials with placed orders
c) Storing the materials in the store/warehouse
39. Moving from the aggregate plan to a master production schedule

requires
a) Rough Cut Capacity Planning
b) Sub-optimization
c) Disaggregation
d) Strategy Formulation .
40. Identifying the path of how a product is manufactured right from input
& raw material into finished product , this process is known as
a) Routing
b) Scheduling
c) Loading
d) Planning .
41. Process consisting of assignment of standing and completion times for

various operations to be performed this process is called as
a) Routing
b) Scheduling
c) Loading
d) Planning .
42. Which scheduling technique should be employed when due dates are
important for a job order?
a) Forward
Scheduling
b) Loading
c) Dispatching
d) Backward Scheduling .
43. Which of the following is not an effectiveness criterion for scheduling?

a) Maximizing Flow Time
b) Minimizing Completion Time
c) Minimizing WIP Inventory
d) Maximizing Utilization .
44. Forward scheduling…

a) begins with a delivery date, then each operation is offset one at a
time, in reverse order
b) is well suited where the supplier is usually able to meet precise
delivery dates
c) tends to minimize in-process inventory

d) assumes that procurement of material and operations start as soon
as requirements are known .
45. A strategy which aims to produce a perfect product which will suit
everybody is called
a) Marketing orientation.
b) Production orientation.
c) Product orientation.
d) Perfection orientation. .
46. A strategy which aims to produce the maximum amount of goods at

the lowest possible price is called:
a) Production orientation.
b) Selling orientation.
c) Societal marketing.
d) Cost orientation. .
47. Which of the following is

true?
a) Value is always lower than price.
b) Value is what consumers are prepared to pay.
c) Cost is always lower than price.
d) Price is always lower than value .
48. A measure of the reserve capacity a process has to handle in unexpected

increases in demand is the:
a) Capacity utilization rate.
b) Capacity cushion.
c) Capacity bottleneck.
d) Capacity constraint limit. .
49. Efficiency is given by

a) Actual output divided by design capacity.
b) Capacity divided by utilization.
50. A facility with a design capacity of 1,000 units, an actual average of 800
units, and effective capacity of 850 units has a utilization of .
a) 85%
b) 80%
c)12%
d) 94%
51. The master production schedule is the schedule of production for

what level product/material?
a) Level 0
b) Level 1
c) Level 2
d) Level 3 .
52. In a distribution requirements planning environment, forecasted

demand at the plant level is equal to in the distribution center
level.
a) Scheduled receipts
b) Planned receipts
c) Planned orders
d) None of the above .
53. The difference between a gross material requirements plan (gross MRP)
and a net material requirements plan (net MRP) is
a) The net MRP includes consideration of the inventory on hand,
whereas the gross MRP does not
b) The gross MRP doesn't take taxes into account, whereas the net MRP
includes the tax considerations.
c) The gross MRP may not be computerized, but the net MRP must
be computerized.
d) The gross MRP includes consideration of the inventory on hand,
whereas the net MRP does not
54. The first activity of purchasing cycle is
a) Source Selection & Negotiation
b) Communicating the Requirement to the Suppliers

c) Recognizing the need of Procurement
d) Inspection of the Goods .
Unit 4 – Inventory Management
1. 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 .
2. Costs that continue even if no units are produced are called

a) Variable costs.
b) Mixed costs.
c) Marginal costs.
d) Fixed costs. .
3. A lot-sizing technique that generates exactly what was required to meet the
plan is
a) The Wagner-Whitin algorithm.
b) Economic order quantity.
c) Lot-for-lot.
d) Part period balancing. .
4. An example of purchasing costs include
a) Incoming Freight
b) Storage Costs
c) Insurance
d) Spoilage
5. If demand of one year is 25000 units, relevant ordering cost for each purchase
order is INR 210 and carrying cost of one unit of stock is INR 25 then economic
order quantity is
a) 678 packages
b) 658 Packages
c) 668 Packages
d) 648 packages .
6. Activities related to coordinating, controlling and planning activities of
flow of inventory are classified as
a) Decisional Management
b) Throughput Management
c) Inventory Management
d) Manufacturing Management .
7. Required rate of return is multiplied per unit cost of purchased units for
calculating
a) Irrelevant Inventory Carrying Costs
b) Relevant Opportunity Cost Of Capital

c) Relevant Purchase Order Costs
d) Relevant Inventory Carrying Costs .
8. Costs associated with storage of finished goods such as spoilage, obsolescence

and insurance of goods are classified as
a) Carrying Costs
b) Purchasing Costs
c) Stock-out Costs
d) Ordering Costs .
9. Costs of goods are acquired from suppliers is classified as…

a) Stock-out Costs
b) Ordering Costs
c) Carrying Costs
d) Purchasing Costs .
10. If economic order quantity for one time is 15000 packages and demand in
units for one year are 15000 units then number of deliveries in a year will be
a) 16
b) 12
c) 10
d) 14 .
11. Decision model to calculate optimal quantity of inventory to be ordered
is called
a) Efficient Order Quantity
b) Economic Order Quantity

c) Rational Order Quantity
d) Optimized Order Quantity .
12. A regular check on Book entry and physical stocks in hand must be
done to..
a) Place the order
b) To check exact availability of stocks

c) To decide the reorder point
d) To control the stock movement .
13. Inventory carried for the purpose of providing flexibility to each decision-
making unit
to manage its operations independently is known as….
a) Safety inventory
b) Pipeline inventory
c) Decoupling inventory
d) Cycle inventory .
14. The inventory which is dependent on alternative modes of transportation is

known as
a) Decoupling inventory
c) Safety inventory
15. In an automobile manufacturing facility, the management has brought down
the cost of ordering of automotive components from Rs 500 to Rs 50 through the
introduction of electronic ordering. The annual demand of cars is 15,000 units.
Inventory carrying cost of automotive components is Rs 20 per unit per year. The
inventory turnover ratio in both the cases would be
a) 35.64 and 111.48
b) 36.64 and 112.48
c) 33.64 and 107.48
d) 34.64 and 109.48 .
16. Higher demand uncertainty provides higher savings by pooling which

of the following inventory?
a) Safety inventory
c) Decoupling inventory
17. Which of the following is true for inventory control

a) EOQ has minimum totals costs per order
b) Inventory Carrying cost increases with quantity/order

c) Ordering cost decreases with increase in quantity/order
18. The time period between placing the order and receiving the placed order
is called as..
a) Waiting Time
b) Takt Time
c) Cycle Time
d) Lead Time .
19. A firm's inventory turnover (IT) is 5 times on a cost of goods sold (COGS) of
$800,000. If the IT is improved to 8 times while the COGS remains the same, a
substantial amount of funds is released from or additionally invested in
inventory. In fact,
a) $160,000 is released
b) $60,000 is released.
c) $100,000 is additionally invested.
d) $60,000 is additionally invested .
20. If EOQ = 360 units, order costs are $5 per order, and carrying costs are $.20
per unit, what is the annual usage in units?
a) 129,600 units
b) 25,920 units
c) 2,592 units
d) 18,720 units
21. Costs of not carrying enough inventories include

a) Lost Sales
b) Customer Disappointment
c) Possible Worker Layoffs
22. Receiving a required inventory item at the exact time needed.

a) ABC Analysis
b) JIT
c) FOB
d) PERT .
23. The two basic questions in inventory management are how much to order
and when to order.
a) True
b) False .
24. Using the EOQ model, if an item's holding cost increases, its order
quantity will decrease.
a) True
b) False .
25. With the A-B-C approach, items which have high unit costs are classified as
A items.
a) True
b) False .
26. When using EOQ ordering, the order quantity must be computed in
every order cycle.
a) True
b) False .
27. Holding and ordering costs are inversely related to each other..
a) True
b) False .
28. In the basic EOQ model, annual ordering cost and annual ordering cost are
equal for the optimal order quantity.
a) True
b) False .
29. Increasing the order quantity so that it is slightly above the EOQ would
not increase the total cost by very much.
a) True
b) False .
30. The first activity of purchasing cycle is..
a) Source Selection & Negotiation
b) Communicating the Requirement to the Suppliers

c) Recognizing the need of Procurement
d) Inspection of the Goods .
31. Raw Materials & WIP can be classified as
a) Direct Materials
b) Indirect Materials
c) Finished Materials
d) Standard Materials .
32. Which of the following is a function of inventory?

a) to provide a stock of goods that will provide a selection for
customers
b) to take advantage of quantity discounts
c) to hedge against inflation

d) all of the above are functions of inventory .
33. All of the following statements about ABC analysis are true except
a) inventory may be categorized by measures other than dollar volume
b) it categorizes on-hand inventory into three groups based on annual

dollar volume
c) it is an application of the Pareto principle
d) it states that all items require the same degree of control .
34. Which of the following statements about the basic EOQ model is true?
a) If the ordering cost were to double, the EOQ would rise.
b) If annual demand were to double, the EOQ would increase.
c) If the carrying cost were to increase, the EOQ would fall
d) All of the above statements are true. .
35. Which of the following statements about the basic EOQ model is false?
a) If the setup cost were to decrease, the EOQ would fall.
b) If annual demand were to increase, the EOQ would increase.
c) If the ordering cost were to increase, the EOQ would rise.
d) If annual demand were to double, the EOQ would also double. .

36. Extra units that are held in inventory to reduce stock- outs are called
a) Just-in-time inventory.
b) Reorder point.
c) Demand variance.
d) Safety stocks. .
37. Which of the following is NOT a type of inventory?

a) MRP
b) Finished goods
c) Raw material
d) Work-in-process .
38. A system that triggers ordering on a uniform time basis is called a_

a) Fixed-quantity Order system.
b) Reorder point Order system.
c) Fixed-period Order system.
d) EOQ. .
39. Logistic network through which unwanted or excess products by

resellers or consumers is classified as
a) Inbound Distribution
b) Outbound Distribution
c) Forward Distribution
d) Reverse Distribution .
40. Pareto charts are used to

a) Identify Inspection Points In A Process
b) Outline Production Schedules
c) Organize Errors, Problems Or Defects

d) Show Material Flow .
41. Each of the following is an objective regarding inventories except
a) Providing Customer Service

b) Providing Efficiencies in Production
c) Keeping investment as low as possible
d) Keeping available space filled
42. Safety stocks would most likely be necessary for which of the following
types of inventory
a) Finished Goods
b) Work – in – Process
c) Semi finished goods
d) Raw material
43. Inventory that results from decisions regarding the quantity of goods to be
produced or manufactured in each cycle may be called:
a) Safety Stock
b) Lot – Size Stock
c) Anticipation Stock
d) Pipeline Stock
44. The most significant consequence of stock out is
a) Back Order
b) Financial Penalty
c) Lost Customer
d) Impact on the performance of Sales Executive
45. ABC Classification of inventory is a means to categorize materials in terms

of their
a) Function
b) Type of material
c) Annual usage value
d) Storage requirement
46. Which of the following inventory control methods is more appropriate for
items with dependent demand than for items with independent demand?
a) Reorder Point
b) ABC Analysis
c) Time Phased Order Point
d) Material Requirement Planning (MRP)
47. Which of the following are costs of “Carrying” inventory:
a) Capital costs and production control costs

b) Capital costs and storage costs
c) Production control costs and purchase costs
d) Storage costs and purchasing costs
48. The EOQ model with quantity discounts attempts to determine
a) How many units should be ordered

b) What is the lowest amount of inventory necessary to satisfy a certain
service level
c) What is the lowest purchasing price
d) Whether to use fixed-quantity or fixed period order policy
49. FSN Analysis is used to sort the inventory according to
a) Value
b) Usage tenure
c) Usage value
d) Importance
50. In GOLF analysis „O” denotes
a) Other than government supply

b) Open supply
c) Original supplier
d) Optimal supply
Unit 5 SCM
1. The supply chain concept originated in which discipline?

a. marketing
b. operations
c. logistics
d. production

a. 1960s
b. 1970s
c. 1980s
d. 1990s
3. 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
d. warehouse
c. customer power
d. all are key attributes
5. Positive, long term relationships between supply chain participants refer to:
a. Cooperatives
c. partnerships
d. supply chain management

a. is an ineffective way to motivate warehouse employees
b. applies to rodeos and has nothing to do with supply chain management
c. refers to the “swaying” motion associated with triple trailers
d. Refers to variability in demand orders among supply chain participants.

d. is more pronounced in relational exchanges

a. Third party logistics
b. supply chain collaboration
c. dovetailing
d. relationship marketing

a. Retailer’s Creditor
b. Wholesaler
c. Producer
d. Customer
10. When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a ………………
a. Channel of Distribution
b. Value Delivery Network
c. Supply Chain
d. Supply And Demand Chain
11. A company's channel decisions directly affect every …………….

a. customer's choices
b. employee in the channel
c. channel member
d. Marketing decision.
transform the assortment of products made by producers into the assortment of products
wanted by ……………………..
a. manufacturers
b. marketers
c. distributors
d. consumers / customers
13. Intermediaries play an important role in matching …………..

d. supply and demand
14. Which of the following is not an area of responsibility for a supply chain manager?
a. inventory
b. purchasing
c. warehousing
d. marketing
15. 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
e. limited inventory logistics
16. A Supply Chain includes the chain of entities involved in the planning, procurement,
production and ……………. of products and services
a. Distribution
b. Supply
c. Demand
d. Transport
17. In a Supply Chain, Material flows in one direction while …………. flows in both
directions
a. Process
b. Information
c. Product
d. Semi-finished Goods
18. Companies manage their supply chains through ………………… .

a. Marketing intermediaries
c. the Internet
d. All of the above
19. There are four generic processes involved in any SCM which includes Planning for
operations, Sourcing decisions, Manufacturing related activities and ……………….
a. Purchase
b. Inventory
c. Information
d. Distribution
20. The trend in organizations is to place the SCM function:

a. Under the manufacturing function
b. Under the finance function
c. Under the engineering function
d. At the same level as the other major functions
21. Which of the following is NOT a factor affecting the supply chain?
a. Reduced number of suppliers
b. Increased competition
c. Longer product life cycles
d. Increased opportunities to strategically use technology
22. If two potential suppliers can deliver a part with the same quality and prices, the selection
should be based on:
a. Age of the firms
b. A coin flip
c. Outside evaluation
d. The capabilities and flexibilities of the firms
23. Just-in-time / SCM purchasing requires the following condition:

a. Many suppliers
b. Short-term contracts
c. Cooperation between purchasing and suppliers
d. Continuous competitive bidding
24. When suppliers, distributors, and customers collaborate with each other to improve the
performance of the entire system, they are participating in a …………………
a. channel of distribution
b. value delivery network
c. supply chain
d. supply and demand chain
25. A company's channel decisions directly affect every ………………….

a. customer's choices
b. employee in the channel
c. channel member
d. competitor's actions

28. Intermediaries play an important role in matching …………………

d. supply and demand


31. Which of the following is not an area of responsibility for a supply chain manager?
a. inventory
b. purchasing
c. warehousing
d. marketing
32. 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
33. Companies manage their supply chains through ………………….

a. information
c. competitors
d. the Internet
34. Supply chain concept originated in which discipline?

a. marketing
b. operations
c. logistics
d. production
35. 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
d. warehouse
c. customer power
d. all are key attributes
a. cooperatives
c. partnerships
d. supply chain management

d. is more pronounced in relational exchanges
a. third party logistics
b. supply chain collaboration
c. dovetailing
d. relationship marketing
40. Which of the following is NOT a benefit of SCM Purchasing?

a. Consistent quality
b. Savings on resources
c. Lower costs
d. Less dependence on suppliers
Read following Reference Books:
Unit 2 - Manufacturing & Operations Management by Prof. L.C.Jhamb
Unit 1 and 3 : Operations Management by B.Mahadevan
Unit 4 : Inventory Management by LC JHamb
Unit 5 : SCM by Shridhar Bhat
Chap 1: Introduction to Operations and Supply Chain Management

1) What is a perfect order?
a) simultaneous achievement of relevant customer metrics
b) an order that arrives on time
c) an order that arrives undamaged
d) an order that is easy for the receiver to fill
2) "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
e) the definition proposed by the American Society for Quality Control
3) Which of the following is not one of the major categories of costs associated
with quality?
a) prevention costs
b) appraisal costs
c) internal failures
d) none of the above, they are all major categories of costs associated
with quality
4) According to the manufacturing-based definition of quality,
a) quality is the degree of excellence at an acceptable price and the control of
b) quality depends on how well the product fits patterns of consumer
preferences
c) even though quality cannot be defined, you know what it is
d) quality is the degree to which a specific product conforms to standards
5) All of the following costs are likely to decrease as a result of better quality
except
a) customer dissatisfaction costs
b) maintenance costs
c) scrap costs
d) warranty and service costs
6) Inspection, scrap, and repair are examples of
a) internal costs
b) external costs
c) costs of dissatisfaction
d) societal costs
7) Total Quality Management emphasizes
a) the responsibility of the Quality Control staff to identify and solve all
quality-related problems
b) a commitment to quality that goes beyond internal company issues to
c) a system where strong managers are the only decision makers
d) a process where mostly statisticians get involved
8) A successful TQM program incorporates all of the following except
a) continuous improvement
b) employment involvement
c) benchmarking
d) centralized decision making authority
9) "Kaizen" is a Japanese term meaning
a) a foolproof mechanism
b) Just-in-time (JIT)
c) a fishbone diagram
d) continuous improvement
10) Costs of dissatisfaction, repair costs, and warranty costs are elements of cost
in the
a) Taguchi Loss Function
b) Pareto Chart
c) ISO 9000 Quality Cost Calculator
d) Process Chart
11) A quality loss function utilizes all of the following costs except
a) the cost of scrap and repair
b) the cost of customer dissatisfaction
c) inspection, warranty, and service costs
d) sales costs
e) costs to society
12) Pareto charts are used to
a) identify inspection points in a process
b) outline production schedules
c) organize errors, problems or defects
d) show material flow
13) Among the tools of TQM, the tool ordinarily used to aid in understanding the
sequence of events through which a product travels is a
a) Pareto chart
b) Flow chart
c) check sheet
d) Taguchi map
14) A worker operates a shear press. She notices that the metal sheets she is
cutting have curled edges. Who should get the first "shot" at solving the
problem?
a) the foreman
b) a member of the Quality Control department
c) the operator herself
d) the employee's supervisor
15) A recent consumer survey conducted for a car dealership indicates that, when
buying a car, customers are primarily concerned with the salesperson's ability
to explain the car's features, the salesperson's friendliness, and the dealer's
honesty. The dealership should be especially concerned with which
dimensions of service quality?
a) communication, courtesy, and credibility
b) competence, courtesy, and security
c) competence, responsiveness, and reliability
d) communication, responsiveness, and reliability
16) Which one of the following would not generally be considered an aspect of
a) Schedule work
b) Secure financial resources
c) Maintain quality
d) Oversee the transformation process
17) Which one of these was not mentioned in the list of recent trends in operations
management?
a) Total quality management
b) Worker involvement
c) Global competition.
d) Automation.
18) Which came last in the development of manufacturing techniques?
a) Lean production.
b) Division of labor.
c) Mass production.
d) Craft production.
19) Which of the following is not a type of operations?
a) Goods production
b) storage/transportation
c) entertainment
d) price reduction
20) Which of the following is not true about a lean production system?
a) It puts emphasis on quality, flexibility, and time reduction.
b) It puts emphasis on reducing a company's labor force.
c) It is involved in maintaining and improving the system with lower amounts of
inventory.
d) It relies on buffers against unforeseen occurrences.
21) Which one of the following is not a typical question dealt with by an operations
manager?
c) Which products/services should be offered?
d) All are typical of operations decisions.
22) Which one does not use operations management?
a) A CPA firm.
b) A bank.
c) A hospital
d) They all use it.
23) Which one is not generally considered an advantage of using models for
decision-making?
a) Providing a systematic approach to problem solving.
b) Emphasizing quantitative information.
c) Providing an exact representation of reality.
d) Requiring users to be specific about objectives.
24) Which came last in the development of manufacturing techniques?
a) Lean production.
b) Division of labor.
c) Mass production.
d) Interchangeable parts.
25) The goal of Total Quality Management is:
a) Customer satisfaction
b) Product differentiation
c) Brand equity
d) Acting globally
26) Which of the following is not a typical supply chain member?
a) Retailer’s Creditor
b) B. Wholesaler
c) Producer
d) Customer
27) When suppliers, distributors, and customers partner with each other to
improve the performance of the entire system, they are participating in a
________
a) Channel Of Distribution
b) Value Delivery Network
c) Supply Chain
d) Supply And Demand Chain
28) A company's channel decisions directly affect every ________.
a) customer's choices
b) employee in the channel
c) channel member
d) Marketing decision.
29) 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
30) Intermediaries play an important role in matching ________.
a) dealer with customer
b) manufacturer to product
c) information and promotion
d) supply and demand
31) Marketing logistics involves getting the right product to the right customer in
the right place at the right time. Which one of the following is not included in
this process?
a) implementing the plan for the flow of goods and services
b) planning the physical flow of goods and services
c) controlling the physical flow of goods, services, and information
d) gathering customer's ideas for new products
32) Which of the following is not an area of responsibility for a logistics manager?
a) inventory
b) purchasing
c) warehousing
d) marketing
33) 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
e) limited inventory logistics
34) Companies manage their supply chains through ________.
a) information
b) transportation modes
c) competitors
d) the Internet
e) skilled operators
35) Julie Newmar recognizes that her company needs to provide better customer
service and trim distribution costs through teamwork, both inside the company
and among all the marketing channel organizations. Julie will begin the
practice of ________.
a) intermediation
b) customer relationship management
f) the Internet
c) supply chain management
36) Today, a growing number of firms now outsource some or all of their logistics
to ________ intermediaries.
a) competitors
b) third-party logistics providers
c) channel members
d) cross-functional teams
37) The supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production
38) The supply chain management philosophy emerged in which decade?
a) 1960s
b) 1970’s
c) 1980s
d) 1990s
39) 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
d) warehouse
40) Which of the following are not key attributes of supply chain management?
c) customer power
d) all are key attributes
41) Positive, long-term relationships between supply chain participants refer to:
a) Co-opetitions
b) tailored logistics
c) partnerships
42) The bullwhip effect:
a) is an ineffective way to motivate warehouse employees
b) applies to rodeos and has nothing to do with supply chain management
c) refers to the “swaying” motion associated with triple trailers
d) Refers to variability in demand orders among supply chain participants.
43) The variability in demand orders among supply chain participants:
a) cannot be controlled
b) refers to the bullwhip effect
c) can be controlled with electronic order placement
d) is more pronounced in relational exchanges
44) Cooperative supply chain relationships developed to enhance the overall
business performance of both parties is a definition of:
a) third-party logistics
b) supply chain collaboration
c) dovetailing
d) relationship marketing
45) A fishbone diagram is also known as a
a) cause-and-effect diagram
b) poka-yoke diagram
c) Kaizen diagram
d) Taguchi diagram
46) If a sample of parts is measured and the mean of the measurements is outside
the control limits the process is
a) in control, but not capable of producing within the established control limits
b) out of control and the process should be investigated for assignable
variation
c) within the established control limits with only natural causes of variation
d) monitored closely to see if the next sample mean will also fall outside the
control limits
47) A quality circle holds a brainstorming session and attempts to identify the
factors responsible for flaws in a product. Which tool do you suggest they use
to organize their findings?
a) Ishikawa diagram
b) Pareto chart
c) process chart
d) control charts
48) When a sample measurement falls inside the control limits, it means that
a) each unit manufactured is good enough to sell
b) the process limits cannot be determined statistically
c) the process output exceeds the requirements
d) if there is no other pattern in the samples, the process is in control
49) Which of the following is true regarding control charts?
a) Values above the upper and lower control limits indicate points out of
adjustment.
b) Control charts are built so that new data can be quickly compared to past
performance data.
c) Control charts graphically present data.
d) All of the above are true.
50) The goal of inspection is to
a) detect a bad process immediately
b) add value to a product or service
c) correct deficiencies in products
d) correct system deficiencies
51) Which of the following is not a typical inspection point?
a) upon receipt of goods from your supplier
b) during the production process
c) before the product is shipped to the customer
d) at the supplier's plant while the supplier is producing
e) after a costly process
52) The most common form of quality control includes:
a) Planning
b) Organizing
c) Inspection
d) Directing
53) Which of the following is NOT a reason that companies are depending more on
their suppliers?
a) More focus on core competencies
b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers
54) The trend in organizations is to place the SCM function:

a) Under the manufacturing function
b) Under the finance function
c) Under the engineering function
d) At the same level as the other major functions
55) Which of the following is NOT a factor affecting the supply chain?
a) Reduced number of suppliers
b) Increased competition
c) Longer product life cycles
d) Increased opportunities to strategically use technology
56) If two potential suppliers can deliver a part with the same quality and prices,
the selection should be based on:
a) Age of the firms
b) A coin flip
c) Outside evaluation
d) The capabilities and flexibilities of the firms
57) Just-in-time/SCM purchasing requires the following condition:

a) Many suppliers
b) Short-term contracts
c) Cooperation between purchasing and suppliers
d) Continuous competitive bidding
58) The amount of inventory kept at each stock point in a warehouse network is
usually based on:
a) Minimizing transportation costs
b) Constant demand
c) Tradeoffs between warehousing, inventory, and transportation costs
d) Product pricing strategy
59) Which of the following is NOT a benefit of SCM Purchasing?

a) Consistent quality
b) Savings on resources
c) Lower costs
d) Less dependence on suppliers
60) What term describes a vertical expansion of job duties in order to give the
worker more responsibility?
a) Job enlargement
b) Job rotation
c) Job enrichment
d) Job design
61) What are the two basic types of production systems?

a) Automated and manual
b) Intermittent and non-intermittent process
c) Normal and continuous process
d) Continuous process and batch
62) What type of process would a paper mill be most likely to use?
a) Continuous flow
b) Project
c) Job shop
d) Flow shop
63) What technique deals with the problem of supplying sufficient facilities to
production lines or individuals that require uneven service?
a) Supply-demand theory
b) PERT
c) Inventory theory
d) Queuing theory
64) A manufacturer has been receiving excessive numbers of defective standard
machine parts from a vendor on a regular basis. What is the most effective way
to design a formal inspection system for incoming parts?
a) Queuing analysis
b) Time series analysis
c) Statistical quality control
d) Regression analysis
65) A set of simultaneous equations that has more variables than constraints has
a) no solution
b) an infinite number of solutions
c) a finite solution
d) an infinite solution
66) In a PERT/CPM network, computing the critical path requires
a) determining the total project duration
b) assigning the earliest finish time for an activity as the earliest start time
for the next
c) that the latest finishing time for an activity not delay the overall project beyond
initial expectation
d) a sophisticated and complex computer program
67) At the completion of the forward and backward passes, the slack for an activity
is given by the
a) difference between early start and early finish
b) difference between early start and latest finish
c) difference between latest start and early finish
d) amount of idle labor on the critical path
Chap 2 : Operations Processes

1) Process selection is primarily considered during:
a) Planning
b) Organizing
c) Leading
d) Controlling
2) The type of operation being carried out by an organization depends upon:
a) Degree of standardization
b) Volume of output
c) Demand
d) Both (a) and (b)
3) Repetitive processing results in output that is:
a) Highly standardized
b) Highly customized
c) Partially customized
d) None of the given options
4) Job shop and batch processing are differentiated on the basis of:
a) Job requirements
b) Degree of standardization
c) Volume of output
d) Both (b) and (c)
5) Automation is preferred because it:
a) Offers lesser dependence on workers
b) Results in reduction in variable cost
c) Offers easy handling of repetitive work
d) All of the given options
6) Product layout is preferably used for:
a) Repetitive processing
b) Intermittent processing
c) Both (a) and (b)
d) Neither (a) nor (b)
7) Process layout is used for:
a) Repetitive processing
b) Intermittent processing
c) Both (a) and (b)
d) Neither (a) nor (b)
8) The most significant advantage of U-shaped layout is:
a) Cost minimization
b) Easy handling of process
c) Increased flexibility in work
9) The goal of motion study is to achieve:
a) Cost minimization
b) Maximum efficiency
c) Profitability
10) Location decisions are viewed primarily as part of:
a) Marketing strategy
b) Growth factors
c) Financial aspect
d) Both (a) and (b)
11) Regional factors for location planning include all of the following except:
a) Raw materials
b) Markets
c) Labor considerations
d) Attitudes
12) Transportation method is a __________ approach.
a) Quantitative
b) Qualitative
c) Scientific
13) Poor quality adversely affects:
a) Costs
b) Productivity
c) Profitability
14) A product performing consistently refers to which of the following dimensions
of quality:
a) Safety
b) Conformance
c) Durability
d) Reliability
a) goods production
c) entertainment
d) all the above involve operations
16) Technology choices seldom affect:
a) Costs.
b) Productivity.
c) Union activity.
d) quality
17) Measurements taken at various points in the transformation process for
control purposes are called:
a) plans
b) directions
c) controls
d) feedback
18) Budgeting, analysis of investment proposals, and provision of funds are
activities associated with the _______ function.
a) operation
b) marketing
c) purchasing
d) finance
19) Which one of the following would not generally be classified under the
heading of transformation?
a) assembling
b) teaching
c) staffing
d) farming
20) Manufacturing work sent to other countries is called:
a) downsized
b) outsourced
c) internationalization
d) vertical integration
21) Product design and process selection are examples of _______ decisions.
a) financial
b) tactical
c) system design
d) system operation
22) The responsibilities of the operations manager are:
a) planning, organizing, staffing, procuring, and reviewing
b) planning, organizing, staffing, directing, and controlling
c) forecasting, designing, planning, organizing, and controlling
d) forecasting, designing, operating, procuring, and reviewing
23) Which of the following is not true about systems approach?
a) A systems viewpoint is usually beneficial in decision making.
b) A systems approach emphasizes interrelationships among subsystems.
c) A systems approach concentrates on efficiency within subsystems.
d) A systems approach is essential whenever something is being redesigned or
improved.
24) What is credited with gains in industrial productivity, increased standards of
living and affordable products?
a) personal computers
b) the internet
c) mass transportation
d) assembly lines
25) Production systems with customized outputs typically have relatively:
a) high volumes of output
b) low unit costs
c) high amount of specialized equipment
d) skilled workers
26) Which is not a significant difference between manufacturing and service
operations?
a) cost per unit
b) uniformity of output
c) labor content of jobs
d) Measurement of productivity.
27) Which of the following is not a characteristic of service operations?
a) intangible output
b) high customer contact
c) high labor content
d) easy measurement of productivity
e) low uniformity of output
28) Which of the following is a recent trend in business?
a) pollution control
b) total quality management
c) supply chain management
d) competition from foreign manufacturers
e) technological change
29) Farming is an example of:
a) an obsolete activity
b) a virtual organization
c) non-manufactured goods
d) a growth industry
e) customized manufacturing
30) Dealing with the fact that certain aspects of any management situation are
more important than others is called:
a) analysis of tradeoffs
b) sensitivity analysis
c) recognition of priorities
d) analysis of variance
e) decision table analysis
31) The fact that a few improvements in a few key areas of operations will have
more impact than many improvements in many other areas is consistent with
the:
a) Irwin phenomenon
b) Pareto phenomenon
c) Stevenson phenomenon
d) Tellier phenomenon
e) Adam Smith phenomenon
32) The process of comparing outputs to previously established standards to
determine if corrective action is needed is called:
a) planning
b) directing
c) controlling
d) budgeting
e) disciplining
33) Which of the following does not relate to system design?
a) altering the system capacity
b) location of facilities
c) inventory management
d) selection and acquisition of equipment
e) physical arrangement of departments
34) Taking a systems viewpoint with regard to operations in today's environment
increasingly leads decision-makers to consider ______________ in response
to the ___________.
a) flexibility; pressure to be more efficient
b) off shoring; need to promote domestic production
c) sustainability; threat of global warming
d) technology; impact of random variation
e) forecasting; stabilization of demand
35) Which of the following is not a benefit of using models in decision-making?
a) They provide a standardized format for analyzing a problem.
b) They serve as a consistent tool for evaluation.
c) They are easy to use and less expensive than dealing with the actual
situation.
d) All of the above are benefits.
e) None of the above is a benefit.
36) Modern firms increasingly rely on other firms to supply goods and services
instead of doing these tasks themselves. This increased level of
_____________ is leading to increased emphasis on ____________
management.
a) outsourcing; supply chain
b) off shoring; lean
c) downsizing; total quality
d) optimizing; inventory
e) internationalization; intercultural
37) Operations and sales are the two-________ functions in businesses.
a) strategic
b) tactical
c) support
d) line
38) Marketing depends on operations for information regarding ___________.
a) productivity
b) lead time
c) cash flow
d) budgeting
e) corporate intelligence
39) Two widely used metrics of variation are the __________ and the _________.
a) mean; standard deviation
b) productivity ratio; correlation
c) standardized mean; assignable deviation
d) randomized mean; standardized deviation
e) normal distribution; random variation
40) Which of the following statements about variation is FALSE?
a) Variation prevents a production process from being as efficient as it can be.
b) Some variation can be prevented.
c) Variation can be either assignable or random.
d) Any variation makes a production process less productive.
e) Random variation generally cannot be influenced by managers.
41) Which of the following is essential to consider with respect to managing a
process to meet demand?
a) strategy
b) demand forecasts
c) capacity
d) all of the above
42) Which one of the following would not generally be considered an aspect of
a) Schedule work
b) Secure financial resources
c) Maintain quality
d) Oversee the transformation process
e) Manage inventories
43) Which of the following is not true about a lean production system?
a) It puts emphasis on quality, flexibility, and time reduction.
b) It puts emphasis on reducing a company's labor force.
c) It is involved in maintaining and improving the system with lower amounts of
inventory.
d) It relies on buffers against unforeseen occurrences.
44) Which one of the following is not a typical question dealt with by operations
managers?
c) Which products/services should be offered?
d) All are typical of operations decisions.
a) Interchangeable parts.
45) The operating characteristic (OC) curve shows the probability of
a) rejection for every possible true percentage of defectives

b) acceptance for every possible true percentage of defectives
c) making type I errors for various percentages of defectives
d) none of the above
46) If an artificial variable remains in the solution with a positive value after the
stopping criterion has been reached, the problem
a) is infeasible
b) is optimal
c) needs a new basis
d) has more than one solution
47) What are the two sources of costs in queuing analysis?
a) Arrivals and departures
b) Arrivals and idleness
c) Waiting customers and capacity
d) Equipment breakdowns and departures
48) The transportation model method that is used to evaluate location alternatives
minimizes total.
a) sources
b) destinations
c) capacity
d) shipping costs
49) What is simulation?
a) A quick solution method to problem-solving
b) A formalized deterministic approach to problem-solving
c) A graphical method to problem-solving
d) A trial-and-error approach to problem-solving

50) Moving from the aggregate plan to a master production schedule requires
a) rough cut capacity planning
b) sub-optimization
c) disaggregation
d) strategy formulation
51) Which of the following statements is true of Lean-Six Sigma?
a) Lean principles focus on advanced statistical methods.
b) Lean principles and Six-Sigma are separate bodies of knowledge
c) Lean principles have been developed over a lengthy period.
d) Lean principles include the 5Ss framework and practices.
52) When the flow of materials is variable,
a) layout by process is most suitable
b) b layout by product is most suitable
c) layout by fixed position is most suitable
d) line balancing is most suitable
53) A fixed interval system
a) adds the same predetermined amount to inventory each time replenishment

occurs
b) is suitable for joint replenishment items
c) is triggered at the reorder level
d) requires perpetual monitoring of inventory records
54) Which of the following terms best defines the nature of Total Quality
Management?
a) An art
b) A philosophy
c) A science
d) A social activity
55) Which of the following terms reflects Japanese view of continuous

improvement?
a) Kaizen
b) Poka-yoke
c) Six sigma
d) Control limits
56) Which of the following is NOT an element of TQM?
a) Leadership
b) Perceived quality
c) Employee empowerment
d) Customer focus
57) Which of the following is an example of appraisal cost?
a) Rework costs
b) Returned goods
c) Testing labs
d) Quality improvement programs
58) Warranty cost is an example of which of the following?
a) Internal failure cost
b) External failure cost
c) Prevention cost
d) Appraisal cost
59) Refer to the stage of PDCA (Plan, Do, Check, Act) cycle that involves
evaluating the improvement plan.
a) Plan
b) Do
c) Check
d) Act
60) Which of the following refers to a continuous measurement of an

organization’s products and processes against a company recognized as a
leader in that industry?
a) Benchmarking
b) Gap analysis
c) Statistical process control
d) Continuous improvement
61) Which of the following is the focus of statistical process control?
a) Determining the efficiency of an operations system
b) Measuring the amount of re-work required to rectify faulty goods
c) Identifying the security needs of an operations system
d) Measuring and controlling process variations
62) Which of the following is a measure of how closely a product or service meets
the specifications?
a) Quality of Conformance
b) Continuous improvement
c) Competitive benchmarking
d) Statistical process control
a) goods production
c) entertainment
d) all the above involve operations
64) Technology choices seldom affect:
a) Costs.
b) Productivity.
c) Union activity.
d) Quality.
a) finance
a) consulting

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LOGISTIC SUPPLY AND CHAIN MANAGEMENT

MULTIPLE CHOICE QUESTIONS:

a. Supply chain Management

Answer: b. Materials Management

1. Which of the following is not an area to responsibilities for a logistics manager?

2. DRP stands for

Answer: a. distribution requirement planning

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

Answer: b. Resource Providers

4. ……………….includes design and administration of systems to control the flow of

Answer: a. Logistics Management

Answer: b. Lead Time

6. In Railway transportation the ownership in with…………….

7. ……………..is a part of development of facility structures.

Answer: b. Cube minimization

10. The objective of performance measure is to achieve a ……………

Answer: c. Perfect order.

Answer: d. Roll on- Roll off

12. The sequence of a typical manufacturing supply chain is

13. The purpose of supply chain management is

Answer: c. integrating supply and demand management

Answer: b. Green Logistics

15. …………..involves streamlining the distribution process in terms of physical and

Answer: b. Channel Integration

Answer: a. Customer Service

Answer: c. Cross Docking

19. Break-Bulk warehouse performs ………function.

22. Properly designed …………..helps in reducing total logistical cost.

Answer: d. Logistical Network

23. ……………is a kind of distribution strategy.

Answer: c. Milk Run

24. VMI stands for

Ans: b. Vendor managed inventory

25. The major decision areas in supply chain management are

Ans: a. location, production, distribution, inventory

Answer: d. Rapid Responses

Ans: a. Demand forecasting

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

Answer: d. Hand to mouth buying

29. Following is not type of Piggy-Back……………..

30. Special purpose material handling equipment are used in ………….

Answer: a. Line layout

Answer: c. Material Handling

Answer: .d. Safety Stock

36. ………..is most suitable for remote and hilly areas.

Answer: a. Road transport

37. …………is the fastest mode of transport.

Answer: d. Air transport

Answer: c. Birdy back

Answer: d. Land bridge

41. ………..can move carton loads or pallet loads horizontally or vertically.

Answer: d. Forklift trucks

Answer: b. Fil Rate

44. Intermediaries play an important role in matching…………..

Answer: b. Demand & Supply

45. …………analysis, parameters for classification of inventory is unit price of material.

Answer: c. HML Analysis