BIJ BIJU PATNAIK INSTITUTE OF IT & MANAGEMENT STUDIES, BHUBANESWAR, ODISHA

SUPPLY CHAIN MANAGEMENT & LOGISTICS (SCML)

3rd SEMESTER MBA (OPERATION SPECIALIZATION)
Multiple Choice Questions with Answers

1. defined as the management of flow of products and services, which begins from the origin of
products and ends at the product’s consumption.
a) Purchase Management
b) Supply Chain Management
c) Production Management
d) Inventory Management

2.Supply Chain Management Process includes;

a) Plan- Make - Develop -Deliver-Return
b) Return- Plan-Develop-Level-Deliver
c) Plan-Develop-Make-Deliver-Return
d) Plan-Develop-Mark-Deliver-Return

3. Supply chain as a Network of Entities includes

a) Products- Facilities - Vehicles- Routes
b) Purchase-Process-Facilities-Routes
c) Products -Process-Facilities-Routes
d) Routes- Vehicles- Routes- Facilities

4. refers to the range of activities that adds value at every single step in designing, producing, and
delivering a quality product to the customer.
a) Operation Cost
b) Value Chain
c) Operating Expenses
d) Capital Cost

5. Supply Chain Management (SCM) can be divided into three main areas such as;
a) Project, Manufacturing, Transport.
b) Purchasing, Manufacturing, And Transport
c) Project, Production And Purchase
d) Manufacturing, Project And Deliver

6. How to Reduce Supply Chain Transportation Logistics Costs

a) Fewer Carriers
b) Consolidating Shipments
c) Single Sourcing
d) All of the above

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 BIJ BIJU PATNAIK INSTITUTE OF IT & MANAGEMENT STUDIES, BHUBANESWAR, ODISHA

7. Processes are those that can be managed from a remote location, can serve multiple sites, and
drive synergy by serving multiple sites.
a) Centralize Supply Chain
b) Decentralize Supply Chain
c) Store Supply Chain
d) Warehouse Supply Chain

8. ____includes all activities that enable the transfer of material and/or economic power over
tangible and/or intangible goods from one economic subject to another.

a) Operation System
b) Distribution System
c) Manufacturing System
d) None of the above

9. which is not included in the types of marketing channels;

a) Communication Channels
b) Distribution Channels
c) Customer Channels
d) Service Channels

10. Objective of Physical Distribution System includes;

a) Creating Time and Place Utilities

b) Reduce Distribution Costs
c) Price Stabilization
d) All of the Above

11. Pipeline inventory can be calculated by

a) Lead Time X Operating Expenses

b) Lead Time X Demand Rate
c) Demand Rate X Logistic Cost
d) Logistic Cost X Operating Cost

12. _____consists of inventory stock set aside in the event of a slowdown or stoppage in
production.

a) Decoupled Inventory
b) Pipeline Inventory
c) Centralized Inventory
d) Vendor Managed Inventory

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13. ______used when there are multiple locations sourcing, with a central location and the
location provides a single point of contact to the client, which are spread across the globe.

a) Cross Docking Model

b) Hub and Spoke Model
c) PDCA Model
d) None of the Above

14. ______ is a practice in logistics of unloading materials from an incoming semi-trailer truck or
railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little
or no storage in between.

a) Cross Docking
b) Hub and Spoke Model
c) Optimized Supply Chain.
d) None of the above

15._____ which are concerned with procurement of material, handling, storage and
transportation.

a) Inbound Logistics
b) Outbound Logistics
c) Procurement logistics
d) Distribution logistics

16. Logistics Components includes;

a) Fleet management
b) Warehousing
c) Order fulfillment
d) All of the Above

17. ___the part of logistics, which is the link between supply, production and marketing of
products and organizes the data flow, which accompany the material flow in the process of being
relocate.

a) Procurement logistics
b) Industrial Logistics
c) Information Logistics
d) Transport logistics

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18. It is a supply chain management strategy that has been used by manufacturers, soft lines retailers,
and general merchandise to minimize operating expenses, forced markdowns, and retail out-of-stocks
all achieved by reduced response time is known as________.
a) Inbound Logistics
b) Outbound Logistics
c) Procurement Logistics
d) Quick Response Logistics

19. Green logistics describes all attempts to measure and minimize the ecological impact of logistics
activities. This includes;

a) Society
b) Economy
c) Environment
d) All of the Above

20. ______is the process of minimizing damage to the environment due to the logistics operations
of an organization. Logistics includes transportation and resource intensive processes such as
procurement, inventory management, warehousing, order fulfillment and distribution.

a) Quick Response Logistics

b) Green Logistics
c) Reverse Logistics
d) JIT Logistics

21. LASH means:

a. Lighter Aboard Ship
b. Last Aboard Ship
c. Lighter Aboard System
d. Little Aboard System

22. A type of logistics costing

a. Consumer costing
b. Employee costing
c. Activity costing
d. None of the above

23. Supply chain management is followed by:-

a. Dell
b. Dabbawalas of Mumbai
c. Both of these
d. None of the above

24. The fastest and most costly mode of transport.

a. Air transport
b. Water transport
c. Ropeways
d. Road transport
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25. Demand forecasting techniques involve:-
a. FSN analysis
b. VED analysis
c. ABC analysis
c. None of these

26. A network of highways connecting India’s four metropolitan cities.

a. Golden Quadrilateral
b. Logistics parks
c. Deep water ports
d. Sagarmala Project

27. RO-RO concept means:

a. Roll On - Roll Off
b. Ride On-Ride Off
c. Roll Off-Roll On
d. Roll On - Roll Off

28. Corrugated Fiberboard is commonly known as

a. Corrosive Board
b. Card board
c. Case board
d. Canvas board

29. A kind of transportation where no empty wagons or containers are bought back:
a. Rail
b. Road
c. Pipeline
d. None of the above

30. Inter modal transportation which combines air

a. Birdy back
b. Fishy Back
c. COF
d. None of the above

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

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

32. 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

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33. 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

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

35. Due to small change in customer demands, inventory oscillations become progressively larger
looking through the supply chain. This is known as
a) Bullwhip effect
b) Netchain analysis
c) Reverse logistics
d) Reverse supply chain

36. VMI stands for

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

37. 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

38. Distribution requirement planning is a system for

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

39. Reverse logistics is required because

a) Goods are defective
b) Goods are unsold
c) The customers simply change their minds
d) All of the above
40. 3-PL stands for
a) Three points logistics
b) Third party logistics
c) Three points location
d) None of the above

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41. Supply chain management is essentially the optimization of material flows and associated
information flows involved with an organisation's operations. To manage these flows, e-business
applications are essential to bring such benefits as noted in 'Internet retailing' in 2010 which reported
that the average rates of return to a high street retailer could be as high as 10%. What did the same
source report as the average rate of return for UK e-commerce sites?
a) 15%
b) 12%
c) 18%
d) 22%

42. Supply chain (SC) management involves the coordination of all supply activities of an organisation
from its suppliers to the delivery of products 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):

a) Transactions between an organisation and its customers and intermediaries

b) Creating and satisfying customer demand by optimizing strategies, promotions and product
introductions
c) The links between an organisation and all partners involved
d) None of the above

43. An organisation's supply chain can be viewed from a system's perspective that starts with the
acquisition of resources which are then transformed into products or services. Simply, put the sequence
is represented:
a) Inputs - outputs – process
b) Process - inputs – outputs
c) Inputs - process – outputs
d) Sourcing - input - process – outputs

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

45. The 'value chain' idea is a concept that has been well established for the past three decades and it
refers to considering key activities that an organization can conduct to add value for the customer. It
traditionally distinguished between primary activities and support activities. Why is this concept
regarded as outdated with the development of e-business?

a) Support activities have been subsumed under primary activities

b) The support activities offer far more than just support
c) There is a clear distinction between primary and support activities
d) The concept still holds and does not need revision

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46. A value chain analysis provides an analytical framework for an organisation to examine individual
activities and determine value added at each stage. The principles can also be applied to an
organisation's external value stream analysis which considers how the whole production and delivery
process can be made more efficient. The activities can be categorized into those:
a) All of the below
b) Those required for product development or production systems
c) That create value as perceived by the customer
d) Those that do not add value

47. Improvements in the value chain can be implemented by following Kjellsdotter and Jonsson's
iterative planning cycle. Which of the following does not form part of the cycle?
a) Creating a preliminary delivery plan
b) Creating a consensus forecast
c) Creating a quality control plan
d) Creating a preliminary production plan

48. What does the following definition refer to: an organisation which uses communications technology
to allow it to operate without clearly define physical boundaries between different functions?
a) Virtual organisation
b) E-organisation
c) Base-free organisation
d) Cloud organisation

49. Using digital communication to improve supply chain efficiency is dependent on effective exchange
and sharing of information. The challenges of achieving standardized data formats and data exchange
have given rise to the study of the optimization of the:
a) Information asymmetry
b) Information supply chain
c) Virtual integration
d) Vertical integration

50. The typical benefits of e-supply chain management gained by a B2B company are quite
comprehensive. Which of the following is false though?

a) Increased efficiency of individual processes

b) Increased costs through outsourcing
c) Reduced complexity of the supply chain
d) Improved data integration between elements of the supply chain

51. What does a company's information system need to deliver to different parties who need to access
the supply chain information of an organisation, whether they be employees, suppliers, and logistics
service providers or customers?

a) Supply chain visibility

b) Password and user name reminders
c) Radio-frequency identification of products
d) None of the above

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52. To manage e-supply chains effectively, benefits need to be developed into a performance
management framework. Sambasivan and colleagues (2009) produced such a framework, identifying
categories of measures and provided examples of metrics for each. Which of the following fits this
framework?

a) Supply chain finance and logistics cost - total, distribution, manufacturing, and inventory costs
b) They are all accurate
c) Cost in supply chain - return on investment
d) Production level metric - range of products and services, effectiveness of scheduling techniques,
capacity utilization

53. Key to re-structuring the supply chain is the need to examine the types of relationships between
partners such as suppliers and distributors. Researchers have found that low cost is the main driver in
managing supply partnerships and a restructuring will often require companies to:

a) Develop strong partnership relationships

b) Focus on core competencies
c) Reduce their number of suppliers
d) All of the above

54. As guidance to managing a global distribution, seven action points have been suggested. Do these
include?

a) Do not waste money, time and energy initially

b) Treat local distributors as short-term partners
c) Let distributors pick you
d) They are all incorrect

55. The supply chain concept originated in what discipline?

a) Marketing
b) Operations
c) Logistics
d) Production

56. 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

57. 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

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58. Positive, long-term relationships between supply chain participants refer to:
a) Co-opetitions
b) tailored logistics
c) partnerships
d) supply chain management

59. 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.

60. 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

61. An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for:
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

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

a) Retailer‟s Creditor
b) Wholesaler
c) Producer
d) Customer

63. 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

64. A company's channel decisions directly affect every ________.

a) customer's choices
b) employee in the channel
c) channel member
d) Marketing decision

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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.
a) Manufacturers
b) Marketers
c) Distributors
d) Consumers

66. Intermediaries play an important role in matching ________.

a) Dealer With Customer
b) Manufacturer To Product
c) Information And Promotion
d) Supply And Demand

67. 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

68. Which of the following is not an area of responsibility for a logistics manager?
a) Inventory
b) Purchasing
c) Warehousing
d) Marketing

69.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) limited inventory logistics
d) economic order quantity
e) just-in-time logistics

70. 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

71. In a SC, Material flows in one direction while _________from in both direction
a) Process
b) Information
c) Product
d) Semi-finished Goods

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72. Companies manage their supply chains through ________.
a) Information
b) Transportation Modes
c) Competitors
d) The Internet
e) Skilled Operators

73. There are four generic processes involved in any SCM-Planning for operations, Sourcing decisions,
Manufacturing related activities and
a) Purchase
b) Inventory
c) Information
d) Distribution

74. 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

75. 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

76. 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

77. 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

78. 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

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79. 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
80. A program that is written by third-party vendors is known as
a) packaged software
b) custom applications
c) Freeware
d) open source software

81. Applications that integrate business activities across departmental boundaries are often referred to
as;
a) Customer relationship management (CRM).
b) Enterprise resource planning (ERP)
c) A data warehouse
d) Supply chain management (SCM)

82. The value chain connection between a firm and its suppliers is called;
a) outbound logistics
b) inbound logistics
c) SCM
d) None of these

83. The items with high strategic importance and low supply risk are termed as:
a) Leverage items
b) Bottleneck items
c) Vital items
d) Routine items
e) Strategic items

84.____________ procedure involves the receiving of purchased and inbound products that are
required by manufacturing. The warehouse may receive the products and prepare sub-assemblies for
the production orders.
a) Manufacturing Cross-Docking
b) Distributor Cross-Docking
c) Transportation Cross-Docking
d) Retail Cross-Docking

85. In which packaging Time–Temperature Indicators (TTIs), ripeness indicators, biosensors and radio
frequency identification are included;
a) Edible Packaging
b) Active packaging
c) Modified atmosphere packaging
d) Intelligent or Smart Packaging

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86. Calculating Landed Cost, which one is correct;
a) Landed Cost = Shipping + Profit + Risk + Overhead
b) Landed Cost = Shipping + Customs + Risk + Overhead
c) Landed Cost = Shipping + Bottleneck + Risk + EOQ
d) Landed Cost = BEP+ Customs + Risk + Overhead

87. Which is a Vendor Rating Methods?

a) Categorical plan
b) Weighted point plan
c) Cost ratio plan
d) All of the above

88. ___________is a process that involves discussing and compromising on contract terms in order to
reach a final agreement between two or more parties involved in a transaction.

a) Contract negotiations
b) Prepare for negotiations
c) Negotiation Process
d) None of the above

89. Which of the following statements refers to a common reason for using qualitative methods?
a) Provides insight
b) Generalizable findings
c) Large samples used
d) Spotting trends

90. Which of the following terms refers to the practice of trying to get charity donations whilst
pretending to do market research?
a) Sugging
b) Snowballing
c) Open ended question
d) Frugging

91. Physical distribution management involves management of good and services to first and second tier
customers regarding their:
i. Inventory levels
ii. Inventory locations
iii. Warehousing
iv. Physical distribution
v. All the above
92. The aim of supply chain management is to:
a) Manage the storage and movement of materials in the supply chain
b) Reduce total logistics costs
c) Manage suppliers so as to minimise the cost of procurement
d) Enhance value in the final marketplace and maximise profit for the whole supply chain

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93. What are firms called that provide advanced and integrated supply chain solutions?
a) Freight forwarders
b) Third-party logistics providers
c) Transportation carriers
d) Fourth-party logistics providers

94. What types of costs need to be considered in making global sourcing decisions?
a) Transportation costs
b) Production costs
c) Inventory carrying costs
d) All of the above
95. Supply chain management is increasingly difficult and complex due to:
a) The increased pace of Globalisation
b) The UK’s ageing population
c) Economies of scale
d) Improvements in communication systems
96. Which area of business will Amazon particularly focus upon to ensure customer deliveries arrive on
time?
a) Finance
b) Sales
c) Logistics
d) Marketing
97. The time difference between a business ordering and receiving stock is called the:
a) Reorder quantity
b) Lead time
c) Buffer stock
d) Reorder level
98. Which of the following is the first stage in a supply chain for a chocolate bar?
a) The supplier of cocoa beans
b) The manufacturer of the chocolate bar
c) Transportation between each stage of the supply chain
d) The retailer
99. Partnership sourcing is highly effective and should be applied to all types of spend. Is this true?
a) No, it will only be applicable to high value and high risk spend
b) Yes, it is well known to drive maximum value on all areas of spend
c) No, it should only be implemented on contracts of the highest spend values
d) Yes, all suppliers should be treated like partners as it is good ethical practice

100. Effective implementation of VMI depends on smoothly addressing the concerns of __________.
a) defining incentive programs based on partnership and not on sales volume
b) building partnerships with management commitment
c) conduct simulations and pilots before actual implementation
d) organize training sessions before launching VMI program
e) all of the above
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