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MGMT614 MEGA FILE OOF FINAL TERM

MCQ’S
1. Which of the following is not influenced by the network structure?
a. Product variety
b. Customer experiences
c. Order visibility
d. All are dependent on network structure.
2. As the lead time decreases the implied demand uncertainty:
a. Decreases b. Increases
c. Remains same d. No relationship exists
3. Which of the following is NOT a condition for a valid contract?
a. Offer and acceptance

b. Lawful consideration
c. Bounded consent
d. Capacity to enter into a contract
4. All of the following are benefits of having a decentralized purchasing

System, EXCEPT:
a. Closer knowledge of requirements

b. Local Sourcing
c. Less bureaucracy
d. Quantity discounts
5. Buying of components from the suppliers instead of making them

in-house is known as:
a. Outsourcing b. Distribution
c. Supply chain d. Operations
6. Average amount of inventory used to satisfy demand between shipments

is called:
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a. Cycle inventory b. Safety inventory

c. Seasonal inventory d. Surplus inventory
7. The replenishment cycle occurs at which interface?
a. Manufacturer/supplier
b. Retailer/distributor
c. Distributor/manufacturer
d. Customer/retailer
8. The purpose of supply chain management is to supply products _____
a. At the right time b. 24 hours c. Weekly d. Monthly
9. The purpose of supply chain management is to provide products in the

_________ quantity.
a. Bulk b. Right c. Average d. Demanded
10. Supply chain Surplus is the difference between:
a. Demand & supply

b. Sales & inventory
c. Customer value & Supply Chain Cost
d. Customer orders & shipment capacity.
11. If a firm acquires the sources of supply, it is called:
a. Backward integration b. Forward integration

c. Strategic decision d. Insufficient capacity
12. Manual processes and fragmented business systems result in all of the
following, EXCEPT:
a. Increased costs
b. Higher profits
c. Poor collaboration
d. Weak compliance
13. While designing a Supply chain network, which of the following is

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included in Soft infrastructure:
a. Transportation Services b. Communication

c. Utilities d. Community’s receptivity to business
14. Which of the following is NOT an objective of Supply chain management:

a. Decreased Cost b. Increased Lead time
c. Increased Profit d. Better coordination
15. Which of the following is not considered to be an element of contract?
a. Force Majeure b. Arbitration Clause

c. Mediation Clause d. Material Requirement Plan
16. The movement of products from the manufacturing line to the assembly
line in a factory is related to:
a. Inbound Logistics
b. Outbound Logistics
c. In process Logistics
d. All of these
17. Few large and high capacity facilities are preferred, when
a. Facilities have higher fixed costs

b. Inventory costs are relatively lower
c. Facilities have lower fixed costs
d. Transportation costs are high.
18. The process in which purchasing decisions are made by individual, local
purchasing department such as at plant level is termed as
a. Centralized Purchasing
b. Decentralized Purchasing
c. Forward integration
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d. Backward integration
19. Which of the distribution network designs face the greatest difficulty in
handling returns
a. Manufacturing storage with direct shipping.

b. Distributor storage with carrier delivery.
c. Distributor storage with last mile delivery.
d. Retail storage with customer pick up.
20. Long-term contracts are characteristics of:
a. Partnership b. Collaboration
c. Strategic Alliance d. Merger
21. Which of the following is NOT an element of Lean System?
a. Waste Reduction b. Higher inventory

c. Small Batch Scheduling d. Workforce Empowerment
22. The time duration of Operational decisions is:
a. 2 to 5 years
b. 3 months to a year
c.1 week or less
d. All of these
23. Which of the following is a “Market and Supply Allocation” decision
a. Processes to be performed at facilities

b. Capacity allocated to each facility
c. Sources to feed each facility
d. Location of facility
24. Key infrastructure elements to be considered during network design

include all of the following, except:
a. Labor availability b. Rail service

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c. Congestion d. Tax rate
25. A company which is competing on Responsiveness to customers is most

likely to have:
a. Centralized purchasing b. Decentralized purchasing

c. Reciprocity d. All of these
26. Strategic alliance is only possible when a firm is able to achieve:
a. Minimum Supply Chain costs

b. Optimum Customer Service level
c. Optimum asset utilization
d. All of these.
27. Which of the following is the emphasis of JIT system?
a. Reduction of waste
b. Continuous improvement
c. Channel integration
d. All of the given options
28. The process that links various elements of business operations is called
______________.
a. Supply chain process

b. Functional integration process
c. Management process
d. Operations management process
29. Channel integration extends alliances to:
a. Suppliers
b. Customers
c. Suppliers & Customers
d. Suppliers’ Suppliers & Customers’ Customers (Lecture no 9 Page no 83
Handouts)
30. With reference to the Logistics Mix, which of the following is NOT
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including in Warehousing
a. Material Storage
b. Order Picking and Filling
c. Load unitizing
d. Vehicle Scheduling (Lecture no 6 Page no 57 Handouts)
31. Managers can leverage supply chain profitability by all of the following,
except:[Original Book Page no371, 387]
a. Increased stockout b. Improved forecasting

c. Postponement d. Tailored sourcing
32. Fraction of replenishment cycles that ends with all customer demand met
is called:[Original Book Page no317]
a. Product availability b. Product fill rate

c. Cycle service level d. Order fill rate
33. Replenishment orders in multi echelon supply chains should be

synchronized in an attempt to:[Original Book Page no307]
a. Decrease the cycle inventory and order costs

b. Increase the cycle inventory cost and decrease ordering cost
c. Increase the ordering cost and decrease the cycle inventory cost
d. Increase the cycle inventory and order costs.
34. In Product-Based Tailored Sourcing, high-volume products with less

demand uncertainty are obtained from:[Original Book Page no383]
a. A flexible source b. An efficient source (Slide 13-3)

c. An uncertain source d. Multiple sources
35. The time taken to refill a product at a retail store after it is delivered to
the customer is called:
a. Order fulfilment cycle time

b. Inventory replenishment cycle time (From Slides)
c. Manufacturing cycle time
d. Cash to cash cycle time
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36. All of the following are types of Transportation Network, except:
a. Multiple Delivery Points

b. Trans-shipment Points
c. Nodal Networks
d. None of the given options (From Slides)
37. Which of the following is true if there is a reduction in supply uncertainty?

[Original Book Page no329]
a. Safety inventory reduces b. Product availability hurts

c. Lead time increases d. Cost increases
38. All of the following are types of quantity discount, except:
a. Lot size based discounts b. Volume based discounts

c. Short-term discounts d. Long-term discounts. (From Slides)
39. The phenomenon in which the differentiation of products is delayed is called:
a. Postponement (From Slides) b. Bullwhip effect

c. Make to stock d. Mass production
40. The traditional linkages between firms in the supply chain such as
retailers, distributors, manufacturers, and parts and materials suppliers are
referred to as:Page 47
a. Horizontal relationships b. Vertical relationships

c. Diagonal relationships d. Cross-functional relationships
41. The supportive corporate environmental factors that enhance partnership growth
and development are called:(Lecture no 5 Page no 50 Handouts)
a. Drivers b. Externalities
c. Facilitators d. Opportunities
42. Supply chain management integrates the activities of all members of the:
(Lecture no 2 Page no 12 Handouts)
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a. Organization b. Production department

c. Distribution system d. Value Chain
43. The rules and regulation governing International trade to avoid conflicts are
termed as
a. Incoterms b. Material Requirement Plan

c. Production Plan d. Force Majeure
44. The purpose of supply chain management is to provide products to ______.
a. Other organizations b. International market

c. Right location d. Whole country
45. Which of the following is NOT an advantage of Centralized Purchasing:
a. Concentrated Volume
b. Lower Transportation costs
c. Common Supply Base
d. Less Bureaucracy
46. Arbitration contracts mainly deal with:
a. Resolving disputes among parties

b. Distributing products
c. Hiring people
d. All of these
47. A 3PL providing services of specialized packaging and cross docking in addition
to performing basic logistics functions such as warehousing and distribution for a
company is termed as
a. Standard 3PL Provider b. Customer Developer

c. Service Developer d. Fourth party logistics
48. “Supplier measurement and improvement” is an activity of
a. Procurement department b. Manufacturing department

c. Human resource department d. Logistics department
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49. When a supplier agrees to take back any unsold material for some credit
from the distributor, the major risk of obsolescence is borne by:
a. Supplier b. Distributor
c. End Consumer d. Third party Logistics
50. When supplier are pressured to purchase the buyer’s products as a condition of
purchase contract, it is called
a. Follow-on b. Sustainability
c. Reciprocity d. Procurement
51. The purpose of supply chain management is to provide products at the

_______ cost.
a. Maximum b. Minimum
c. Optimum d. Average
52. Which of the following is NOT a function of Supply Chain Management?
a. Demand planning b. Manufacturing scheduling
c. Supply planning d. Consumption planning
53. The China-Pakistan Economic Corridor (CPEC) plans to connect Gwadar

Port to Xinjiang via all of the following, EXCEPT:
a. Highways
b. Railways
c. Airways
d. Pipelines
54. The use of basic elements of a returned product to make new products is
called
a. Recycle b. Resell c. Reconditioning d. All of these
55. The movements of all raw materials and components from suppliers for
the sake of processing are called:
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a. Inbound Logistics
b. Outbound Logistics
c. In process Logistics
d. Organizational Logistics
56. The supply chain management covers the flow of __________.
a. Products
b. Cash
c. Documents
57. One who purchases the raw materials for conversion or services is called:
a. Manufacturer
b. Industrial buyer
c. Industrial seller
d. Service provider
58. Functional level logistics decisions include decisions regarding all of the
following except:
a. Warehouse Design
b. Transportation
c. Network Strategy
d. Materials Management
59. The document in which the buyer inquires about the prices of items that
he needs to process from different suppliers is called
a. Request for quotation

b. Material requisition
c. Purchase order d. Delivery note
60. With reference to the Logistics Mix, “Route Planning” will be included in
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a. Inventory Control
b. Information Flow
c. Warehousing
d. Transportation
61. Which of the following is used to handle the product safely and for
damage prevention?
a. Logistics
b. Packaging
c. Warehousing
d. Inventory Control
62. When a supplier gives the downstream member a surety of taking back
any unsold products, the downstream is likely to carry _____ inventory.
a. Increased b. Decreased
c. Same d. No relationship exists
63. Which of the following is included in the process of Contract Management?
a. Plan
b. Training
c. Measurements
64. Ad hoc approach in contracts management is to:
a. Provide sustainable and long term solutions

b. Increase the supply chain profit
c. Ignore the big picture and develop short term solutions
d. All of these
65. Supply Chain and Logistics is successful in presence of all of the
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following, except:
a. Effective Coordination with Suppliers

b. Reduction of Inventory Level
c. Slower Replenishment cycle
d. Shorter Performance Cycle
66. When a product is cleaned and repaired to return it to a “like new” state, it
is called:
a. Reconditioning
b. Refurbishing
c. Remanufacturing
d. Recycling
67. Which of the following is NOT included in Supply Management?
a. Supplier identification and selection

b. Supply market research
c. Distribution systems development
68. A supply chain consists of the flow of products and services from all of the
following, EXCEPT:
a. Raw materials manufacturers

b. Wholesalers
c. Retailers
d. Customers
69. The flow of raw materials, in process inventory, finished goods and
related information from the point of consumption to point of origin is
known as:
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a. Logistics
b. Supply Chain
c. Reverse Supply Chain
d. Bull Whip Effect
70. Reverse supply chain is used for:
a. Refilling
b. Remanufacturing
c. Product Recall
71. Which of the following is NOT a driver of reverse logistics?
a. Legislation
b. Monopoly
c. Consumerism
d. Corporate Social Responsibility
72. In today’s competitive market, the actual competition is
between:
a. Supply chains b. Production systems

c. Products prices d. Services quality
73. The process of acquiring goods or services to accomplish the goals of
enterprise is called:
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a. Logistics
b. Selling
c. Supply chain
d. Purchasing
74. Categorizing the suppliers into different tiers for the sake of relationship
building is known as:
a. Supply Base Segmentation b. Customer Segmentation

c. Quality Control Segmentation d. Materials Segmentation
75. The type of 3PL which gains complete control over the logistics activities
of a company but do not develop a new service is termed as:
a. Customer Adapter
b. Service Developer
c. Standard 3PL provider
d. Service Adapter
76. Which of the following is the buyer’s offer which becomes a binding
contract when accepted by the supplier
a. Delivery note
b. Request for proposal
c. Purchase order
d. Material requisition
77. Planning, implementing, and controlling the physical flows of materials
and finished goods from point of origin to point of use to meet the
customers need at a profit is called:
a. Physical distribution
b. Supply chain
c. Logistics
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d. Operations
78. Purchasing decision made by keeping environmental objectives such as
reuse or recycling in mind is termed as
a. Green Purchasing
b. Strategic Sourcing
c. Forward Integration
d. Backward Integration
79. Integrated Supply Chain Management is one of the most critical concepts
for firms and started

a. During second World War 1940-1946
b. In mid 1960s
c. In late 1970s
d. Beyond 2000
80.All acquisition activities of a firm are covered under:
a. Supply management
b. Supply chain management
c. Logistics management
d. Operations management
81. Which organizational strategy is supported by Supply Chain Management?
a. Differentiation strategy
b. Cost leadership strategy
c. Niche strategy
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82. Which of the following is the key element of Supply Management?
a. Strategic Orientation
b. Process Driven Approach
c. Cross Functional Groups
83. Long term contracts are characteristic of:
a. Partnership b.
Collaboration
c. Strategic Alliance d. Merger
84. Referring to the cycle view of supply chain processes, which cycle
includes processes necessary to ensure the availability of materials for
manufacturing according to schedule?
a. Procurement cycle b. Replenishment cycle

c. Customer order cycle
d. Manufacturing cycle
85. A complete supply chain may not include:
a. Customersb. Retailers
c. Manufacturers d. Suppliers
86. When demand is uncertain, the average forecast error is:
a. 10-20%
b. 20-30%
c. 30-40%
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d. 40-100%
87. Typical contract management software includes the 9 th step in the

contract management named:
a. Auditing b. Renewal c. Measurement d. Training
88. Decisions regarding scheduling of shipments are done under the umbrella
of:
a. Supply chain strategy/Design b. Supply chain planning

c. Supply chain operations d. All of these
89. When individual operations in each stage of supply chain try to minimize
their own costs without giving due attention to other operations. This
situation is referred to as:
a. Intra-company intra-operation scope

b. Intra-company inter-functional scope
c. Inter-company inter-functional scope
d. Flexible inter-functional Scope
90. Which of the following refers to marketing and sales strategy
a. Procurement b. Storage
c. Delivery d. Positioning of product
91. Which of the following refers to “Mistake proofing” in the Toyota

Production system
a. Muda b. Kanban
c. Poka Yoke PPT 9 d. Keiretsu
92. The Market winner for an AGILE supply chain is
a. Quality b. Cost
c. Lead time d. Service level
93. Process in supply chain executed in response to a customer order pertain

to
a. Pull view b. Push

view
c. Cycle view d. General view
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94. Supply chain process executed in anticipation of customer order pertain to
a. Pull view b. Push view

c. Cycle view d. All of these
95. In Toyota production system, the signal cards are referred to as
a. Muda b. Kanban
c. Poka-Yoke d. Lean
96. “Planning of Capacity” is included in which of the following supply chain

macro processes
a. Customer relationship management
b. Internal supply chain management
c. Supplier relationship management
d. All of these
97. The traditional linkages between firms in the supply chain are known as
a. Horizontal relationships
b. Vertical relationships
c. Collaborative relationships
d. Transactional relationships
98. Which of the following is not a feature of responsive supply chains
a. Creating modularity in products

b. Selecting supplier on the basis of speed, reliability, flexibility and
quality
c. Higher margins as price is not a prime customer driver
d. Supply demand at the lowest cost
99. A motorbike manufacturing company is trying to find out the cause of

an engine failure in its new model. The best tool for this purpose among
the following is
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a. Ishikawa diagram b. Pareto chart

c. Flow diagram d. All of these
100. The focus of agile supply chain is on
a. Responsiveness to customers
b. Economies of scale
c. Productivity
d. All of these
SUBJECTIVE
Briefly discuss the future trends in supply chain.
 Artificial Intelligence and Automation. ...

 Increased Focus on Sustainability. ...
 Customization. ...
 The Internet of Things. ...
 Digitization. ...
 Strengthened Relationships. ...
 Risk Management and Resiliency. ...
 Increased Visibility.
Briefly explain the issues related with air transportation.
(i) Cost of operating airlines is very high and so freight cost is very high as compared to
sea transport. (ii) It is difficult to carry bulky, awkwardly shaped goods. (iii) Very risky in
case of accident. (iv) It is controlled by climatic conditions; thus bad weather leads to
uncertainty in its time table.
 High Costs: Air transport is a costly service. Its operational costs are too high. Middle
class and poor people can not affect its cash.
 More Risks: Air transport is prone to accidents. A small mistake can be very dangerous
for passengers. ...
 Huge Investments:
Briefly explain the step involved in adaptive forecasting
Adaptive Forecasting automates the processes of data extraction, validation and

cleansing, thereby enabling users to concentrate on analyzing and leveraging the
information contained within the forecasts, rather than spending countless hours on
their production.
It is ultimately the manager's responsibility to prepare the forecast. They're the ones that
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are accountable, and by following these three simple techniques, they'll also produce a
much more accurate forecast, which certainly reflects well on them as a sales manager.
Discuss how a firm can respond to predictable variability of demand in the supply
chain.
Responding to Predictable Variability in a Supply Chain

Manage supply using capacity, inventory, subcontracting, and backlogs. Manage
demand using short-term price discounts and trade promotions
Compare long term forecasting with short term forecasting in terms of procedure
and accuracy.
Short-term forecasting predicts the company's cash flow for under 12 months, while
long-term forecasting looks beyond twelve months. Short-term forecasts are more
accurate than long-term forecasts: A longer forecasting horizon significantly increases
the chance of changes not known to us yet having an impact on future demand.
What are the perishable assists? How pricing and revenue management is done
for perishable assets.
Any asset that loses value over time is perishable. This list also includes products such
as computers and cell phones that lose value as new models are introduced. High
fashion apparel is perishable because it cannot be sold at full price once the season is
past.
Hence, the objective of pricing and revenue management is to stimulate demand from
different customers to earn the maximum revenue from them. The essence of this
discipline is to understand the customers' perceptions of value and to accurately align
the right products to each customer segment.
Explain the impact of increasing the number of order cycle per season on the
unsold inventory at the end of season at a retail seasons.
Cycle inventory is the stock that is used to respond to regular sales and demand
forecasts, as opposed to the safety stock used when there are fluctuations in demand or
supply. Properly managing cycle stock is therefore a crucial part of any well-functioning
business. Your inventory value can also increase if the supply of your product in the
market decreases while demand remains relatively steady. Commodities are one
example; if you have a warehouse full of coffee and weather ruins the coffee crop, the
value of your inventory will increase with the market price.
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Sir Mutahir+92 334 5371245

MGMT614 MEGA FILE OOF FINAL TERM

1. Which of the following is not influenced by the network structure?

3. Which of the following is NOT a condition for a valid contract?

a. Offer and acceptance

4. All of the following are benefits of having a decentralized purchasing

a. Closer knowledge of requirements

5. Buying of components from the suppliers instead of making them

c. Supply chain d. Operations

6. Average amount of inventory used to satisfy demand between shipments

a. Cycle inventory b. Safety inventory

7. The replenishment cycle occurs at which interface?

a. At the right time b. 24 hours c. Weekly d. Monthly

9. The purpose of supply chain management is to provide products in the

a. Bulk b. Right c. Average d. Demanded

10. Supply chain Surplus is the difference between:

a. Demand & supply

a. Backward integration b. Forward integration

13. While designing a Supply chain network, which of the following is

included in Soft infrastructure:

a. Transportation Services b. Communication

14. Which of the following is NOT an objective of Supply chain management:

15. Which of the following is not considered to be an element of contract?

a. Force Majeure b. Arbitration Clause

a. Facilities have higher fixed costs

a. Manufacturing storage with direct shipping.

20. Long-term contracts are characteristics of:

21. Which of the following is NOT an element of Lean System?

a. Waste Reduction b. Higher inventory

22. The time duration of Operational decisions is:

23. Which of the following is a “Market and Supply Allocation” decision

a. Processes to be performed at facilities

24. Key infrastructure elements to be considered during network design

a. Labor availability b. Rail service

c. Congestion d. Tax rate

25. A company which is competing on Responsiveness to customers is most

a. Centralized purchasing b. Decentralized purchasing

26. Strategic alliance is only possible when a firm is able to achieve:

a. Minimum Supply Chain costs

27. Which of the following is the emphasis of JIT system?

a. Supply chain process

29. Channel integration extends alliances to:

a. Increased stockout b. Improved forecasting

a. Product availability b. Product fill rate

33. Replenishment orders in multi echelon supply chains should be

a. Decrease the cycle inventory and order costs

34. In Product-Based Tailored Sourcing, high-volume products with less

a. A flexible source b. An efficient source (Slide 13-3)

a. Order fulfilment cycle time

36. All of the following are types of Transportation Network, except:

a. Multiple Delivery Points

37. Which of the following is true if there is a reduction in supply uncertainty?

a. Safety inventory reduces b. Product availability hurts

38. All of the following are types of quantity discount, except:

a. Lot size based discounts b. Volume based discounts

39. The phenomenon in which the differentiation of products is delayed is called:

a. Postponement (From Slides) b. Bullwhip effect

a. Horizontal relationships b. Vertical relationships

a. Organization b. Production department

a. Incoterms b. Material Requirement Plan

44. The purpose of supply chain management is to provide products to ______.

a. Other organizations b. International market

45. Which of the following is NOT an advantage of Centralized Purchasing: