Q1: Supply chain decision support pertaining to specific products produced at specific plants in a specific quantity falls under
Answer: supply chain decision support at tactical level.Answer
Q2: Which of the following does not fall under supply chain measurement metrics
Answer: Transport planning metricsAnswer
Q3: Which of the following is not a dashboard
Answer: Data warehouseAnswer
Q4: For ensuring effective adoption of IT in SCM, a firm should go through the six stages in which the following sequence
Answer: Strategy formulation ? Business process design ? Determination of functional requirements ? Business case preparation ? Implementation ? Post-implementation auditAnswer
Q5: When the management decides to implement a new system and totally remove the old one, which of the following approach should be adopted
Answer: Big bang or cold turkey approachAnswer
Q6: IT processes basic business transactions of a firm and increases scale efficiencies of its operations
Answer: Correct – TrueAnswer
Q7: Transport execution system falls under IT in supply chain transaction execution
Answer: Correct – TrueAnswer
Q8: CPFR reduces the variance between supply and demand
Answer: Correct – TrueAnswer
Q9: ERP systems are web-based, open to integrate and interoperate with other systems, and built around modules or components
Answer: Wrong – FalseAnswer
Q10: Supply chain decision problems of all levels, such as strategic level, tactical level, and operational level, can be handled by applying optimization methods
Answer: Wrong – FalseAnswer
Q11: Supply chain decision support pertaining to both supply planning system and demand planning system come under operational level supply chain decision support system
Answer: Wrong – FalseAnswer
Q12: Process-activity-monitoring dashboards display performance metrics and numbers specific to divisional and operational managers
Answer: Wrong – FalseAnswer
Q13: When the modules of the new system are gradually introduced, one at a time, using either the big bang approach or the parallel approach, it is known as the phased approach of IT implementation
Answer: Correct – TrueAnswer
Q14: Which of the following sequential stages does supply chain integration involve
Answer: Islands within an organization ? Internal integration ? External integrationAnswer
Q15: Which of the following is not true in the case of a centralized system
Answer: It can capture local knowledge and skills.Answer
Q16: Which of the following is not true in the case of a decentralized system
Answer: It has short lead time.Answer
Q17: Which of the following does not apply in the case of a hybrid system
Answer: Non-bottleneck resources are decided centrally.Answer
Q18: Which of the following is not a cause of the bullwhip effect
Answer: Aligning incentives across the supply chainAnswer
Q19: Which of the following is not considered an incentive offered to the buyers for the purchase of large size orders
Answer: Handling of shortage situationsAnswer
Q20: Which of the following is not a measure for coping with the distortion in demand information
Answer: Forecast updating by supply chain partnersAnswer
Q21: Conflicting objectives may arise in the supply chain from which of the following source(s)
Answer: manufacturer versus multi-brand retailer, supplier competing in the end-product market and supplier serving multiple industriesAnswer
Q22: Which one is not true with respect to the cost impact of supply chain initiative
Answer: Type I initiative results in a decrease in the supplier costs, an increase in the customer costs, and a decrease in the overall supply chain costs.Answer
Q23: Which one is not true in respect of interdependence of relationship between the organization and its partner
Answer: When the organization is relatively powerful compared to its partner, the relationship is known as ‘Hostage’Answer
Q24: The essential features of Efficient Customer Response (ECR) are
Answer: category management, continuous replenishment programme and efficient promotionsAnswer
Q25: In order to do supply chain integration, firms will have to make corresponding changes in structure, processes, and performance measures
Answer: Correct – TrueAnswer
Q26: Most firms have understood the need of external integration and reaped its benefits
Answer: Wrong – FalseAnswer
Q27: Internal integration takes care of the trade-off between transportation and inventory carrying costs while shipping goods from the manufacturing plant to the distribution centres
Answer: Correct – TrueAnswer
Q28: It is possible to incorporate soft constraints into the centralized system
Answer: Wrong – FalseAnswer
Q29: The phenomenon of providing low service to the customers despite keeping high inventories never happens in reality
Answer: Wrong – FalseAnswer
Q30: In an internally integrated supply chain, there is seamless flow of materials, funds and information across organizational boundaries
Answer: Wrong – FalseAnswer
Q31: Forecast updating employed each entity of the supply chain improves the forecasted demand by incorporating the recent observed demand and as such reduces Bullwhip effect
Answer: Wrong – FalseAnswer
Q32: Lot-size based discount helps in reducing the variability in demand across the whole supply chain
Answer: Wrong – FalseAnswer
Q33: Trade promotions encourage forward buying behaviour by the customers
Answer: Correct – TrueAnswer
Q34: Centralized demand information can completely eliminate bullwhip effect
Answer: Wrong – FalseAnswer
Q35: A multi-brand retailer attempts to maintain high product availability at the category level and a comparatively lower service level at the individual brand level
Answer: Correct – TrueAnswer
Q36: A steward firm may opt for value appropriation, even though there is no conflict of interest between the supply chain members
Answer: Correct – TrueAnswer
Q37: Powerful firms always tend to work with type I initiative
Answer: Wrong – FalseAnswer
Q38: In a VMI relationship, both buyer and supplier are likely to gain from the decrease in overall costs of the supply chain even though the buyer does not share demand information and his future plans
Answer: Wrong – FalseAnswer
Q39: Which one of the following is/are not true about supply chain restructuring
Answer: Absolute shift in the point of differentiationAnswer
Q40: Postponing the point of differentiation results in
Answer: reduction in inventories, customer service, product obsolescence and the period for which forecasting is carried out at the variant level.Answer
Q41: Postponement strategy gives rise to
Answer: product differentiation, high product variety and resequencing of processesAnswer
Q42: Under which of the following circumstances will the postponement strategy not be very successful in general
Answer: Long lead time of postponed operationAnswer
Q43: Longer delivery time in CTO supply chain requires the firm to compensate the customer offering in terms of the
Answer: cost, quality and product variety .Answer
Q44: Which one of the following is/are true regarding customer order delivery time
Answer: It is a strategic decision and also affects supply chain design decision.Answer
Q45: Which of the following option is not true about the presence of a stock point at a particular stage of the supply chain (Sourcing, Manufacturing, and Distribution)
Answer: Option (0, 1, 1) indicates the presence of a stock point at the end of the distribution.Answer
Q46: Which of the following is not true regarding the impact of different variables on the placement of inventory at different stages of the supply chain (Sourcing, Manufacturing, and Distribution)
Answer: The variability in demand has an impact on the decision regarding the placement of inventory at the end of the Sourcing, Manufacturing, and Distribution points.Answer
Q47: Point of differentiation, where the product gets identified as a specific variant of the end product, always occurs at a single place
Answer: Wrong – FalseAnswer
Q48: Shifting the point of differentiation in no way affects the demand of forecasting of products at an aggregate level
Answer: Wrong – FalseAnswer
Q49: Advancing the customer order point indicates a move from MTS to CTO
Answer: Correct – TrueAnswer
Q50: Postponing the point of differentiation may give rise to a loss in economies of scale of the operations postponed
Answer: Correct – TrueAnswer
Q51: In a CTO supply chain, variant level decisions are made based on a specific order
Answer: Correct – TrueAnswer
Q52: Dell Computer Corporation has to keep the inventory of finished products at its manufacturing plants
Answer: Wrong – FalseAnswer
Q53: In order to move from the MTS to the CTO supply chain, it is advisable to concentrate either on advancing the customer order or postponing the point of differentiation at any given time, but not both simultaneously
Answer: Wrong – FalseAnswer
Q54: With a large number of markets, option (0, 0, 1) is optimal, but with a lesser number of markets in the chain, option (0, 1, 1) is most optimal
Answer: Wrong – FalseAnswer
Q55: There is no difference between the agile and the responsive supply chains
Answer: Wrong – FalseAnswer
Q56: In the speculative approach, the demand and the order quantity for the entire season are estimated by using speculative forecast
Answer: Correct – TrueAnswer
Q57: In the responsive approach, forecasting is not needed for estimating the demand, and the demand as well as the order quantity for the entire season is determined by using the responsive supply chain approach
Answer: Wrong – FalseAnswer
Q58: A responsive supply chain is usually more expensive than the supply chain which uses the speculative approach
Answer: Wrong – FalseAnswer
Q59: If the demand of two products, X and Y, is negatively correlated and the demand of X goes up, the demand of Y also goes up
Answer: Wrong – FalseAnswer
Q60: The benefit of pooling will be higher in the case of negatively-correlated demand
Answer: Correct – TrueAnswer
Q61: The firms attempting to become lean at different stages of a supply chain become unduly rigid and inflexible
Answer: Correct – TrueAnswer
Q62: Positive correlation among different parameters of risk pertaining to the location of suppliers helps in minimizing supply disruptions
Answer: Wrong – FalseAnswer
Q63: Multi-location sourcing allows flexibility in production and sourcing and takes care of supply disruptions
Answer: Correct – TrueAnswer
Q64: An agile supply chain takes care of
Answer: a high level of both demand and supply uncertainty.Answer
Q65: Products in the fashion goods industry and the high-technology industry suffer from forecast inaccuracy due to
Answer: high level of demand uncertainty, a wide range of product variety and short-life cycle of the products.Answer
Q66: Firms engaged in outsourced manufacturing have to be concerned with
Answer: disruptions in transportation and freight breaches.Answer
Q67: In the case of differential pricing, demand from the segment paying a lower price arises earlier in time than demand from the segment paying a higher price
Answer: Correct – TrueAnswer
Q68: With a view to maximizing profits, revenue management adjusts the pricing of goods or services it offers to its customers and available supply of assets
Answer: Correct – TrueAnswer
Q69: In airlines, the cost overstocking implies the lost opportunity for earning higher revenues from high-price customers who will be denied seats because the same has already been allocated to low-price customers
Answer: Wrong – FalseAnswer
Q70: In airlines, the cost understocking implies the lost opportunity for earning revenues from low-price customers
Answer: Wrong – FalseAnswer
Q71: In airlines, multi-period inventory model is used for finding out the optimum service level and optimum number of seats to be kept reserved for a particular class of travelers
Answer: Wrong – FalseAnswer
Q72: In the context of overbooking in hotels or airlines, understocking represents the situation when the actual cancellations are larger than the overbooking done by the hotel or the airline
Answer: Correct – TrueAnswer
Q73: In the context of overbooking in hotels or airlines, overstocking represents the situation when the overbooking done by the hotel or the airline is smaller than the actual cancellations
Answer: Wrong – FalseAnswer
Q74: The amount kept reserved for the spot market should be such that the expected marginal revenue from the spot market should be higher than the current revenue from a bulk sale in the forward market
Answer: Wrong – FalseAnswer
Q75: The two forms of supply chain assets are
Answer: capacity and inventory.Answer
Q76: Revenue management is concerned with
Answer: the use of pricing to increase the profit generated from a limited supply of supply chain assets.Answer
Q77: In order to make differential pricing effective, which of the following issues are to be dealt with
Answer: The firm should structure pricing according to different market segments and also control demand in such a way that the lower segment does not utilize the entire availability of the asset.Answer
Q78: In order to differentiate between different market segments, the firm must
Answer: create barriers by identifying product or service attributes that the segments value differently.Answer
Q79: Under which of the following condition(s) is the concept of revenue management is applicable
Answer: Capacity is perishable, the same capacity can be used to different submarkets having their own demand curves with different price elasticity and also the firm can create a fence among the relevant submarkets.Answer
Q80: The allocation of supply sources and markets to facilities has a significant impact on the overall supply chain performance of the whole network
Answer: Correct – TrueAnswer
Q81: The allocation of supply sources and markets to facilities needs to be examined on a regular basis so that the allocation can be changed as market conditions change
Answer: Wrong – FalseAnswer
Q82: The cost minimization model pertaining to network operations suggests that the individual demand of a product occurring at different geographical locations must be satisfied in full by the manufacturing facilities situated at different places
Answer: Correct – TrueAnswer
Q83: The profit maximization model pertaining to network operations suggests that the individual demand of a product occurring at different geographical locations need not be satisfied in full by the manufacturing facilities situated at different places if the market is not profitable or the company has supply problems
Answer: Correct – TrueAnswer
Q84: The solutions provided by the network optimization models capture the whole picture pertaining to the allocation of markets to facilities or the closure of a particular facility
Answer: Wrong – FalseAnswer
Q85: If the production technology displays significant economies of scale, many local locations happen to become highly effective
Answer: Wrong – FalseAnswer
Q86: If the production technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities
Answer: Wrong – FalseAnswer
Q87: High tariffs lead to more production locations within a supply chain network with each location having a lower allocated capacity
Answer: Correct – TrueAnswer
Q88: Companies must build appropriate flexibility into the supply chain while designing supply chain networks in order to help counter fluctuations in exchange rates and demand across different countries
Answer: Correct – TrueAnswer
Q89: Addition of a new unit at a different location of the existing network will hardly have any impact on the performance of existing units
Answer: Wrong – FalseAnswer
Q90: The issues involving the designing of an after-market service network are exactly identical to those of designing a retail network
Answer: Wrong – FalseAnswer
Q91: The probability of attracting a customer to a store is inversely proportional to the size of the retail outlet
Answer: Wrong – FalseAnswer
Q92: Supply chain network design decisions are concerned with
Answer: where the facilities should be locatedAnswer
Q93: Supply chain network design decision pertaining to facility location is
Answer: a strategic decision.Answer
Q94: Supply chain network design decision pertaining to capacity allocation to plants is
Answer: an operational decision.Answer
Q95: Supply chain network design decision pertaining to allocation of plants to markets is
Answer: a tactical decision.Answer
Q96: Which of the following arrangements would be chosen if the facilities need to have lower fixed costs
Answer: Many local facilities are preferred because this would help lower transportation costs.Answer
