Supply Chain Management

Supply chain (SC) management involves the coordination of all supply

activities of an organisation from its suppliers to the delivery of products
1 to its customers. There are various features associated with this area of e-
commerce and which refers to what is known as efficient consumer
response (ECR): C
Transactions between an organisation and its customers and
a.
intermediaries
b. The links between an organisation and all partners involved
Creating and satisfying customer demand by optimizing strategies,
c.
promotions and product introductions
d. None of the above

An organisation's supply chain can be viewed from a system's perspective

2 that starts with the acquisition of resources which are then transformed
into products or services. Simply, put the sequence is represented: B
a. Inputs - outputs - process
b. Inputs - process - outputs
c. Process - inputs - outputs
d. Sourcing - input - process - outputs

Logistics is an integral part of supply chain management. Which

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explanation best represents outbound logistics? C
An emphasis on using the supply chain to deliver value to
a. customers who are actively involved in product and service
specification
A supply chain that emphasises distribution of a product to passive
b.
customers
The management of material resources entering an organisation
c.
from its suppliers and other partners
The management of resources supplied from an organisation to its
d.
customers and intermediaries

Using digital communication to improve supply chain efficiency is

dependent on effective exchange and sharing of information. The
4 challenges of achieving standardized data formats and data exchange have
given rise to the study of the optimisation of the: B
 a. Vertical integration
b. Virtual integration
c. Information asymmetry
d. Information supply chain

The coordination of all supply activities of an organisation from its

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suppliers and partners to its customers is referred to as: A
a. Supply chain management
b. Supply chain network
c. Supply and demand coordination
d. Efficient customer response

There are various strategies used to meet objectives of effective consumer

6 response (ECR).What would be an appropriate strategy to achieve timely,
accurate, paperless information flow? B
a. Integrate this activity into all supply chain planning
b. Efficient store assortments
c. Efficient replacement
Revision of organisation processes supported by information
d.
systems

An appropriate strategy to achieve the objective of optimizing the

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productivity of retail space and inventory is: C
a. Efficient replacement
b. Integrate this activity into all supply chain planning
c. Efficient store assortments
Revision of organization processes supported by information
d.
systems

When a manufacturer develops an innovative product and then identifies a

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suitable target market and distribution channel. This is an example of: B
a. Push model of SCM
b. Value stream
 c. Value chain
d. Pull model of SCM

In considering a simple model of a supply chain, the correct sequence of

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an organisation's supply chain from a systems perspective is: C
Delivery to customers, acquisition of resources, transformation
a.
process
Acquisition of resources, transformation process, delivery to
b.
customers
Transformation process, delivery to customers, acquisition of
c.
resources
Transformation process, acquisition of resources, delivery to
d.
customers

The value stream is closely related to a traditional value chain. The

10 difference is that it considers different types of tasks that are involved with
adding value, plus: B
a. How each link in the chain can be assessed
b. Provides a rationale for additional investment
c. How the efficiency of these tasks can be improved
d. All of the above

When performance managing an electronic-supply chain management (e-

11 SCM), measurement frameworks provide categories and examples of
metrics. What would Return on Investment be a metric of? C
a. Delivery performance
b. Cost in supply chain
c. Supply chain partnership
d. Profitability

There are options for restructuring the supply chain. A characteristic of vertical
12
integration is: A
a. Total reliance on linked third parties
b. Majority of manufacture is in-house
c. Close relationships with suppliers
d. All of the above

13 What form of planning and control focuses on the low volume–high

 variety end of the continuum? B
(a) Supply planning and control
(b) Quality planning and control
(c) Lean planning and control
(d) Project planning and control

14. The supply chain concept originated in what discipline? B

a) marketing
b) operations
c) logistics
d) production
15. 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

a) production line
b) supply chain
c) marketing channel
d) warehouse

16. Which of the following are not key attributes of supply chain management? A

a) inventory control
b) leveraging technology
c) customer power
d) all are key attributes

17. Positive, long-term relationships between supply chain participants refer to: B

a) Co-opetitions
b) tailored logistics
c) partnerships
d) supply chain management

18. The bullwhip effect: C

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.
19. The variability in demand orders among supply chain participants: B

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
20. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of: B

a) third-party logistics
b) supply chain collaboration
c) dovetailing
d) relationship marketing

21. What is a perfect order? C

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
22. An important feature of supply chain management is its application of electronic
commerce technology that allows companies to share and operate systems for: B
a) Order processing, transportation scheduling, and inventory management
b) cost-effective flowing of raw materials
c) future purchasing of computer systems
d) future merger opportunities

23. Which of the following is not a typical supply chain member? A

a) Retailer‟s Creditor
b) Wholesaler
c) Producer
d) Customer
24. 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
a) manufacturers
b) marketers
c) distributors
d) consumers
25. 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?
C
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

26. Which of the following is not an area of responsibility for a logistics manager? A
a) inventory
b) purchasing
c) warehousing
d) marketing
27. A Supply Chain includes the chain of entities involved in the planning, procurement,
production and ------------- of products and services A
a) Distribution
b) Supply
c) Demand
d) Transport

28. In a SC,Material flows in one direction while _________from in both direction B

a) Process
b) Information
c) Product
d) Semi-finished Goods

29. Companies manage their supply chains through ________. B

a) information
b) transportation modes
c) competitors
d) the Internet
e) skilled operators
30. There are four generic processes involved in any SCM-Planning for operations,
Sourcing decisions, Manufacturing related activities and A
a) Purchase
b) Inventory
c) Information
 d) Distribution
31. Today, a growing number of firms now outsource some or all of their logistics to
________ intermediaries. B
a) competitors
b) third-party logistics providers
c) channel members
d) cross-functional teams

32. Which of the following is NOT a factor affecting the supply chain? C
a) Reduced number of suppliers
b) Increased competition
c) Longer product life cycles
d) Increased opportunities to strategically use technology
33. If two potential suppliers can deliver a part with the same quality and prices, the
selection should be based on: B
a) Age of the firms
b) A coin flip
c) Outside evaluation
d) The capabilities and flexibilities of the firms

34. Just-in-time/SCM purchasing requires the following condition: C

a) Many suppliers
b) Short-term contracts
c) Cooperation between purchasing and suppliers
d) Continuous competitive bidding

35. Which of the following is not a typical supply chain member? A

a) Retailer‟s creditor
b) wholesaler
c) reseller
d) producer

36. A supply chain is a sequence of firms that perform activities required: A

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

37. A supply chain is essentially a sequence of linked: A

 a) customer and prospects
b) supplier and manufacturer
c) suppliers and customers
d) warehousing and wholesaling units

38. Which of the following is NOT a reason that companies are depending more on their
suppliers? B
a) More focus on core competencies
b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers

39. Which of the following is NOT a benefit of SCM Purchasing? B

a) Consistent quality
b) Savings on resources
c) Lower costs
d) Less dependence on suppliers

40. Which of the following is true for supply chain management? B

a) The physical material moves in the direction of the end of chain
b) Flow of cash backwards through the chain
c) Exchange of information moves in both the direction
d) All of the above

41. The sequence of a typical manufacturing supply chain is A

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

42. The purpose of supply chain management is B

a) provide customer satisfaction
b) improve quality of a product
c) integrating supply and demand management
d) increase production

43. Logistics is the part of a supply chain involved with the forward and reverse flow of
A
 a) goods
b) services
c) cash
d) all of the above

44. Due to small change in customer demands, inventory oscillations become

progressively larger looking through the supply chain. This is known as B

a) Bullwhip effect
b) Netchain analysis
c) Reverse logistics
d) Reverse supply chain

45. VMI stands for C

a) Vendor material inventory
b) Vendor managed inventory
c) Variable material inventory
d) Valuable material inventory

46. The major decision areas in supply chain management are B

a) location, production, distribution, inventory
b) planning, production, distribution, inventory
c) location, production, scheduling, inventory
d) location, production, distribution, marketing

47. Distribution requirement planning is a system for A

a) Inventory management
b) Distribution planning
c) Both ‘a’ and ‘b’
d) None of the above

48. Reverse logistics is required because A

a) Goods are defective
b) Goods are unsold
c) The customers simply change their minds
d) All of the above

49. 3-PL stands for A

a) Three points logistics

b) Third party logistics
 c) Three points location
d) None of the above

50. A supply chain is a sequence of firms that perform activities required: C

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) to support the acquisition of raw materials

51. An important feature of supply chain management is its application of electronic

commerce technology that allows companies to share and operate systems for: C
A) order processing, transportation scheduling, and inventory management.
B) cost-effective flowing of raw materials
C) future purchasing of computer systems
D) future merger opportunities
E) prospecting new business ventures.

52. A supply chain is essentially a sequence of linked: B

A) customer and prospects
B) supplier and manufacturer
C) suppliers and customers
D) warehousing and wholesaling units
E) events in the marketing process

53. In the automotive industry, the person who is responsible for translating customer
requirements into actual orders and arranges delivery dates is the car maker: B
A) supply manager
B) purchasing manager
C) production manager
D) supply chain manager
E) VP for production

54. It is estimated that the logistics costs of a new car are about: B
A) 10-20%
B) 20-25%
C) 25-30%
D) 30-40%
E) 40-45%

55. Poor supply chain management practices can ____________________ an otherwise excellent
marketing strategy. C
A) seriously damage
B) make SWOT analysis difficult for
C) keep people employed on
D) mean quarterly lessons for
E) repair

56. The physical characteristics of a product will often dictate what: B

A) types of sales can be made
B) forms of sales promotion to be used
C) types of instructions needed
D) geographic regions will be included
E) kinds of transportation can be used

57. Pricing interacts with a supply chain in many ways. For instance, transportation rate
structures are adjusted by the carrier based on: A
A) cost to unload
B) the size of the shipment
C) local currency rates
D) the logistics costs concept

58. The total logistics cost includes expenses associated with transportation, materials
handling and: B
A) customer complaints, cost of food and highway usage taxes
B) warehousing, inventory, stock outs and order processing
C) inventory control with sales forecasting
D) stock outage control with sales forecasting
E) historical figures weighted by last years numbers

59. The total logistics cost factors need to be balanced against the: B
A) supply chain managers total experience
B) total expected transportation needs
C) customer service factors
D) lead time expectations
E) replenishment time forecasts

60. Lead time and order cycle time are the same as: B
A) customer service time
B) supply chain flow
C) logistical clockage
D) replenishment time
E) real time service time
61. The inventory management systems designed to reduce the retailer's lead time for
receiving merchandise is called: C
A) efficient consumer response delivery system.
B) effective response.
C) on-time market delivery system.
D) efficient logistical response.
E) on-time consumer response systems.

62. Examples of third-party logistics providers are: B

A) FedEx and Rosenau Transport
B) Sentinel Self-Storage and UPS
C) FedEx and UPS
D) UPS and Metro Van Lines
E) Purolator and Metro Van Lines

63. The seller must concentrate on removing unnecessary barriers for: A

A) a quick response.
B) customer convenience.
C) transportation modes.
D) a piggyback operation.
E) a more personable relationship with the customer.

64. There are five basic transportation modes. They are air carrier, motor carrier, and: B
A) pipelines, railways an water carriers
B) railways, ocean vessels and dirigibles
C) trucks, canals and robotics
D) water routes, railways and trucks
E) pipeline, water routes and ocean vessels

65. Rail has the largest shipping capacity compared to all except: A
A) pipeline
B) air carrier
C) water carrier
D) motor carrier
E) none of the above

66. A reason to carry inventory would include: C

A) to have tax write-off opportunities
B) having a wide variety to meet customer expectations
C) to increase ways to use the product
D) supplementation of synergy strategies
E) to promote purchasing and transportation discounts

67. A marketing expert described a _____ as looking like a butterfly. The manufacturer is
the body of the butterfly with many different suppliers accumulated on one side of the
body for the left wing and a large number of buyers collected on the other side to form
the right wing. B
A) logistical flow
B) demand chain
C) materials handling facility
D) supply chain
E) retailer cooperative

68. _____ is the integration and organization of information and logistics across firms in
a supply chain for the purpose of creating and delivering goods and services that provide
value to consumers. B
A) Supply chain management
B) Logistics management
C) Point-to-point management
D) Just-in-time management
E) Cost-effective flow

69. What is the first step in choosing a supply chain? A

A) developing an umbrella mission statement
B) understanding the customer
C) making sure the members of the supply chain harmonize with the organizational
culture
D) creating a unifying interorganizational strategy
E) determining what the competition is doing

70. Bombardier makes corporate jets and its strategy involves streamlining production
activities, maintaining its reputation for quality, and reducing its costs. It has developed
the Continental, an airplane assembled from just a dozen large component parts (not
counting rivets). While building planes with subassemblies is not new, Bombardier is the
first to not use vertical integration. All parts are supplied by carefully chosen independent
companies that share the development costs and market risk. In terms of its supply chain,
Bombardier has C
A) lengthened its supply chain unnecessarily.
B) implemented a just-in-time materials handling policy.
C) created a marketing channel.
D) harmonized its supply chain and its strategy.
E) used a production repositioning strategy.

71. Winemaker Robert Mondavi Corp. buys satellite images from NASA to spot
problems in its vineyards and aims to push those images out over a(n) _____ to its
independent growers this year. Mondavi will help growers avoid vineyard problems-and
improve the grapes it buys. C
A) Extranet
B) customized search engine
C) electronic downloadable information (EDI)
D) customized database management system
E) entrepreneurial Internet

72. With which customer service factor are quick response and efficient consumer
response delivery systems most closely related? A
A) time
B) dependability
C) inventory costs
D) communication
E) convenience

73. Celarix.com is a business entity that monitors and calculates tariffs and exchange
rates for small companies that ship export their products. Celarix is an example of a: C
A) materials handling expert.
B) content provider.
C) freight forwarder.
D) third-party logistics provider.
E) logistics manager.

74. Which of the following statements about air carriers is true? C

A) One advantage of air carriers is door-to-door delivery.
B) There are no space constraint limitations as to what can be transported in planes.
C) This method of transportation is especially effective for piggybacking.
D) Air carriers are commonly used for perishable flowers, clothing, and electronics
parts.
E) All of the above statements about air carriers are true.

75. Modes of transportation are typically evaluated on the basis of all of the following
criteria EXCEPT: C
A) accessibility.
B) perishability.
C) frequency.
D) capability.
E) dependability.

76. TransCanada PipeLines, a natural gas transmission and distribution company,

launched an advertising campaign in national Canadian newspapers and the country's
major dailies to educate people about what pipelines do and where they fit into the
economics of the community. The advertising might have told Canadians that pipelines:
B
A) are expensive to use.
B) have a high degree of reliability.
C) are weather sensitive.
D) rank high in terms of accessibility.
E) are accurately described by all of the above.

77. The Danish-flagged Carsten Maersk can carry enough merchandise packed in
containers that when they are laid end to end, the containers would stretch 27 miles.
When it reaches its destination, the containers will be removed from the ship and loaded
onto trucks and railcars. This is an example of: C
A) piggyback.
B) freight forwarding.
C) intermodal transportation.
D) an export agent.
E) an efficient consumer delivery system.

78. Traditionally, stores have carried inventory to: B

A) prevent strikes or product shortages.
B) provide better service for those customers who wish to be served on demand.
C) eliminate forecasting uncertainty.
D) terminate production economies.
E) avoid purchasing and transportation discounts.

79. Dramatic cost savings are possible when efficient transportation systems and
information technology can be substituted for _____ costs. B
A) advertising
B) personal selling
C) publicity
D) inventory
E) billing
80. Supply chain management impacts all of the following aspects of the marketing mix
strategy EXCEPT: C
A) the target market selection decision.
B) product mix decisions.
C) pricing decisions.
D) promotion decisions.
E) distribution decisions.

81. An online retailer like Amazon.com relies on an efficient supply chain. The
development of its supply chain supported its clearly defined marketing strategy and
began with: B
A) inventory forecasts.
B) a logistics mission statement.
C) the mature stage of the product life cycle.
D) understanding the customer.
E) none of the above.

82. In physical distribution decisions, total logistics cost includes: B

A) order processing.
B) materials handling and warehousing.
C) transportation.
D) inventory and stockouts.
E) all of the above.

83. Combining different transportation modes in order to get the best features of each is
called: C
A) freight forwarding.
B) dual distribution.
C) intermodal transportation.
D) bimodal logistics.
E) intramodal transport.

84. 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
A) is a storage warehouse.
B) is a freight forwarder.
C) is a distribution center.
D) is an inventory expediting center.
E) has a just-in-time inventory system.

85. The goal of logistics is B

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.

86. In the product life cycle, the emphasis in marketing mix during growth stage is A
a) Distribution.
b) Promotion.
c) Price.
d) Cost reduction.

87. In the product life cycle, the emphasis in marketing mix during maturity stage is B
a) Distribution.
b) Promotion.
c) Price.
d) Cost reduction.

88. In the product life cycle, the emphasis in marketing mix during decline stage is A
a) Distribution.
b) Promotion.
c) Price.
d) Cost reduction.

89. The concept of logistics has been systematically divided into B

A. 2 phases.
B. 3 phases.
C. 4 phases.
D. 5 phases.

90. EDI stands for A

a) Electronic Data Interface.
b) Electronic Data Interchange.
c) Electronic Distribution Intermediary .
d) Electronic Documentation Interchange.

91. Packaging performs two functions. ___________ and logistics. A

a) Distribution.
b) Store keeping.
c) Material handling.
d) Marketing.

92. Form utility is created by B

a) Operation function.
b) Logistics function.
c) Procurement function.
d) Distribution function.

93. Place utility is created by B

a) Operation function.
b) Logistics function.
c) Procurement function.
d) Distribution function.

94. Time utility is created by B

a) Operation function.
b) Logistics function.
c) Procurement function.
d) Distribution function.

95. The service mission of logistics B

a) reflect the vision of top management.
b) deal with basic services required for delivering of goods.
c) refers to the valueadded services offered.
d) reflects the ability of firm to exploit market.

96. Inbound and outbound logistics is _________ in the generic value chain of logistics.
A
a) a support activity .
b) a primary activity .
c) not an activity .
d) the only activity .

97. Competitive advantage can be created and achieved by logistics managers by B

a) cost advantage.
b) Quality .
c) value advantage.
d) cost and value advantage.

98. The flow of information that facilitates coordination activities is A

a) Forward information flow .
b) Backward information flow .
c) Upward information flow .
d) Downward information flow .

99. The number of stages that the goods and services flow through A

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 .

100. The upstream supply chain is: B

a) exclusively inside an organization
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

101. The downstream supply chain is: B

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

102. One of the important role of distribution in SCM towards base cost reduction is A
a) Transportation
b) Warehousing/inventory
c) Information
d) all the above