Q1: Building some excess capacity in a supply chain network allows a firm within the supply chain to
Answer: produce more in facilities that have a lower cost based on current exchange rates.Answer
Q2: A firm focusing on responsiveness attempts to
Answer: locate facilities nearer to the market.Answer
Q3: What is a facility that offers a low cost supply of labour and/or materials for markets located outside the country known as
Answer: An offshore facilityAnswer
Q4: A facility that is established in a region in order to overcome tariff barriers and a high logistics cost as also to address local content requirement with a view to supplying its products/services to a specific market is known as
Answer: a server facility.Answer
Q5: A facility established in a region with a view to obtaining local knowledge or skills available in that region is known as
Answer: an outpost facility.Answer
Q6: A facility that is set up in a region with the main objective of obtaining low cost products subsequently becoming the primary source of a product for the global network is known as
Answer: a source facility.Answer
Q7: A facility that serves the market where it is located but also assumes responsibility for product customization, process improvements, product modifications, or supplier development is known as
Answer: a contributor facility.Answer
Q8: A facility that not only taps into local knowledge or skills but also creates new processes, products, or technologies for the entire network is known as
Answer: a lead facility.Answer
Q9: A global firm that has its production facilities in India and sells its products in the international markets will have higher profits
Answer: if the rupee becomes weaker compared to the dollar.Answer
Q10: Economies of scale in transportation is achieved
Answer: when the mode of shipment is FTLAnswer
Q11: Economies of distance in transportation is achieved
Answer: when the distance travelled is long and the utilization of the vehicle is highAnswer
Q12: Transportation cost in most cases is a function of the
Answer: weight of the productAnswer
Q13: For products with high level of uncertainty in demand, the following strategy is suitable
Answer: use of a faster mode of transportation and higher amount of safety stockAnswer
Q14: For products with a high volume and a stable demand, the following strategy is suitable
Answer: Use of slower mode of transportation and a higher amount of cycle stockAnswer
Q15: Which mode of transportation is considered to be the least expensive
Answer: WaterAnswer
Q16: Which mode of transportation is considered to be the most expensive
Answer: AirAnswer
Q17: Which mode of transportation has the capacity to carry the maximum lot size
Answer: WaterAnswer
Q18: Which mode of transportation has the highest delivery time variability
Answer: WaterAnswer
Q19: Which mode of transportation causes the maximum amount of loss and damage
Answer: RailAnswer
Q20: Retailing on the web is likely to be beneficial for items which have
Answer: High product variety, high value density and high demand uncertaintyAnswer
Q21: Inventory carried for the purpose of providing flexibility to each decision-making unit to manage its operations independently is known as
Answer: Decoupling inventoryAnswer
Q22: Cycle inventory helps in
Answer: taking advantage of economies of scale and reducing cost within the supply chainAnswer
Q23: The inventory which is dependent on alternative modes of transportation is known as
Answer: Pipeline inventoryAnswer
Q24: In an automobile manufacturing facility, the management has brought down the cost of ordering of automotive components from Rs 500 to Rs 50 through the introduction of electronic ordering. The annual demand of cars is 15,000 units. Inventory carrying cost of automotive components is Rs 20 per unit per year. The inventory turnover ratio in both the cases would be
Answer: 34.64 and 109.48Answer
Q25: In an automobile manufacturing facility, the management has brought down the cost of ordering of automotive components from Rs 500 to Rs 50 through the introduction of electronic ordering. The annual demand of cars is 15,000 units. Inventory carrying cost of automotive components is Rs 20 per unit per year. Now assume the company runs its manufacturing operation for 300 days a year. Number of days inventory to be carried in both the cases would be
Answer: 8.66 and 2.74Answer
Q26: The best strategy of minimizing the amount of safety inventory to be kept in a store without hurting the level of customer service is
Answer: minimizing the uncertainty inherent in supplyAnswer
Q27: Higher demand uncertainty provides higher savings by pooling which of the following inventory
Answer: Safety inventoryAnswer
Q28: Higher number of stock points required for risk pooling results in higher savings in terms of
Answer: cycle inventoryAnswer
Q29: Decentralized system will provide benefits for the items which
Answer: are fast moving and have low demand variabilityAnswer
Q30: Which of the following is not considered a primary activity in the value chain framework developed by Michael Porter
Answer: ProcurementAnswer
Q31: Which of the following is not considered a secondary activity in the value chain framework developed by Michael Porter
Answer: Sales and serviceAnswer
Q32: In order to maintain leadership in its product offerings, which of the following make or buy decision(s) will a firm undertake
Answer: It will carry out the brand management function itself and outsource the IT management function to a third partyAnswer
Q33: The core processes of a firm are
Answer: CRM, Product innovation and SCMAnswer
Q34: In order to maintain its core competence, high-end pharmaceutical firms should focus on
Answer: Product innovationsAnswer
Q35: In order to maintain its corporate image in the market, Wal-Mart should focus on
Answer: Supply chain managementAnswer
Q36: For the purpose of identifying a firm’s core processes through product architecture route, a sub-system is considered strategic if
Answer: It involves fast changing technology, requires specialized skills and has significant impact on the performance of the product on important customer attributesAnswer
Q37: Costs incurred in connection with the control and co-ordination of external suppliers are known as
Answer: Transaction costsAnswer
Q38: Costs incurred in connection with the control and co-ordination of internal supply chain are known as
Answer: Agency costsAnswer
Q39: Which one of the following costs is tangible in nature
Answer: Economies of scaleAnswer
Q40: Which one of the following is not true regarding relationship-specific asset
Answer: It can be redeployed for other customers without any significant cost.Answer
Q41: The items with high strategic importance and high supply risk are termed as
Answer: Strategic itemsAnswer
Q42: The items with low strategic importance and high supply risk are termed as
Answer: Bottleneck itemsAnswer
Q43: The items with high strategic importance and low supply risk are termed as
Answer: Leverage itemsAnswer
Q44: The items with low strategic importance and low supply risk are termed as
Answer: Routine itemsAnswer
Q45: Transaction costs do not include
Answer: Costs incurred in control and coordination of internal supplyAnswer
Q46: Make or buy decisions are taken/reviewed very frequently
Answer: Wrong – FalseAnswer
Q47: Once a firm identifies its core and non-core processes, it should carry out its core processes on its own and outsource its non-core processes to a third-party in most of the cases in order to maintain leadership in the market
Answer: Correct – TrueAnswer
Q48: Each and every element of the core business process of a firm should be carried out by the firm itself in order to maintain leadership in the market
Answer: Wrong – FalseAnswer
Q49: When a firm decides to outsource some core processes/sub-systems, it need not keep the necessary architecture knowledge in-house
Answer: Wrong – FalseAnswer
Q50: Make versus buy decision is also known as market versus hierarchy decision
Answer: Correct – TrueAnswer
Q51: In the hierarchical form of relationship, a firm has greater control over co-ordination and also takes advantage of economies of scale
Answer: Wrong – FalseAnswer
Q52: Tapered integration allows a firm to do part of the manufacturing in-house and outsource the remaining part to a third party
Answer: Correct – TrueAnswer
Q53: In a collaborative relationship, it is always advisable to maintain long-term relationship with the suppliers irrespective of the market conditions
Answer: Wrong – FalseAnswer
Q54: Reverse auction works well for items in the low supply-risk category items
Answer: Correct – TrueAnswer
Q55: Internet and e-commerce have brought about a fundamental change in the sourcing strategy of a firm
Answer: Wrong – FalseAnswer
Q56: The push-pull boundary located at the beginning of a supply chain is known as
Answer: make-to-order (MTO) supply chain.Answer
Q57: The push-pull boundary located at the end of a supply chain is known as
Answer: make-to-stock (MTS) supply chain.Answer
Q58: The push-pull boundary located at the interface between component manufacturing and assembly of a supply chain is known as
Answer: configure-to-order (CTO) supply chain.Answer
Q59: Which one of the following does not constitute the dimensions of customer service from the perspective of a supply chain
Answer: Product life spanAnswer
Q60: Customer service dimension(s) used to characterize a supply chain is/are
Answer: Order delivery lead time and responsivenessAnswer
Q61: Functional products are characterized by
Answer: uncertain demand and low variety.Answer
Q62: Innovative products are characterized by
Answer: uncertain demand and short life cycleAnswer
Q63: Which of the following is not true
Answer: FMCGs should have a responsive supply chain.Answer
Q64: Which of the following is/are true
Answer: During the growth stage of a product/service, companies need to develop a responsive supply chain while during the maturity stage, companies need to develop a responsive supply chain.Answer
Q65: A firm that does not lie on the efficiency frontier can improve
Answer: both responsiveness and cost performance.Answer
Q66: A firm that lies on the efficiency frontier can improve
Answer: only responsiveness or only cost performance or both responsiveness and cost performance simultaneously by improving processes and technologyAnswer
Q67: Which of the following supply chain performance measure does not fall under the SCOR model
Answer: Product varietyAnswer
Q68: The parameter(s) for supply chain benchmarking is/are captured by the following measure
Answer: total length of the chain, supply chain inefficiency ratio and supply chain working productivityAnswer
Q69: When a firm lies on the efficiency frontier, it is possible to improve the performance of the firm on both responsiveness and efficiency through
Answer: Supply chain optimization, integration and restructuringAnswer
Q70: The supply chain lead time is the time taken by a supply chain to complete all the activities from the placement of customer order to the delivery of customer order
Answer: Wrong – FalseAnswer
Q71: Activities along a supply chain which precede customer order penetration point do not face any uncertainty
Answer: Wrong – FalseAnswer
Q72: The supply chain strategy of a firm should be formulated at the beginning of its product life cycle and thereafter should not be altered in the entire life cycle of the product
Answer: Wrong – FalseAnswer
Q73: In the case of new technology products, firms generally face volume uncertainty instead of product-mix uncertainty
Answer: Correct – TrueAnswer
Q74: In the case of innovative products, such as garments and jewellery, firms generally face volume uncertainty instead of product-mix uncertainty
Answer: Wrong – FalseAnswer
Q75: Contribution margin is higher in case of functional products than that of innovative products
Answer: Wrong – FalseAnswer
Q76: Likely forecast error is higher in case of innovative products than that of functional products
Answer: Correct – TrueAnswer
Q77: Delivery reliability and product reliability are the same if a firm operates under the MTS model
Answer: Correct – TrueAnswer
Q78: The SCOR model of SC performance measures does not capture customer order delivery time
Answer: Correct – TrueAnswer
Q79: The supply chain inefficiency ratio measures the efficiency of both internal as well as external supply chain
Answer: Wrong – FalseAnswer
Q80: Functional products require a smooth flow of materials in the system and do not need much inventory, and as such the focus should be on supply chain restructuring
Answer: Wrong – FalseAnswer
Q81: Innovative products require flexibility in the supply chain which is possible by keeping higher inventory at appropriate locations, and as such the focus should be on supply chain integration
Answer: Wrong – FalseAnswer
Q82: If a customer visiting a departmental store cannot find his desired soap manufactured by Hindustan Unilever Ltd (HUL) in the store, which of the following chain partner will he hold responsible for the non-availability of the soap
Answer: The departmental storeAnswer
Q83: Which of the following sequence is true
Answer: Sourcing ? Inbound logistics ? Conversion into finished goods ? Outbound logistics ? RetailingAnswer
Q84: Supply chain is concerned with the
Answer: flow of materials in the forward direction, cash in the reverse direction and information in both the directionsAnswer
Q85: The objective of a supply chain is
Answer: to improve the efficiency and responsiveness across the whole supply chain and also deliver improved value to the customersAnswer
Q86: Which of the following statements is true
Answer: Dell supply chain believed in medium-term relationship with the suppliers with loosely held supplier network.Answer
Q87: In today’s supply chain, there has been a shift in the power structure in a chain towards
Answer: RetailersAnswer
Q88: If the focus of a retailer is to achieve leadership in cost, then which of the following phenomenon will hold good
Answer: Customers will prefer a large variety of products but the retailer will not keep a large variety in the store in order to achieve economies of scale.Answer
Q89: The companies will realize the benefits of implementing IT when which of the following is undertaken
Answer: Companies need to re-engineer their supply chain structure and undertake revision in the supporting organizational processes.Answer
Q90: Ford supply chain is characterized by
Answer: Vertical integrationAnswer
Q91: Toyota supply chain is characterized by
Answer: Long-term relationship with the suppliersAnswer
Q92: Dell supply chain is characterized by
Answer: Individual customizationAnswer
Q93: A 3PL is a logistics service provider meeting only the logistics requirements of an organization while 4PL is a logistics service provider meeting the logistics requirements of an organization and can also integrate its resources, capability and technology to provide comprehensive solution to its customers
Answer: Correct – TrueAnswer
Q94: Which one of the following is not the supply challenge being faced by the Indian organizations
Answer: IT implementationAnswer
Q95: Toyota supply chain is highly flexible in terms of maintaining relationship with the suppliers
Answer: Wrong – FalseAnswer
Q96: A supply chain could be more accurately described as a supply network or a supply web
Answer: Correct – TrueAnswer
Q97: Dell computers have encouraged the suppliers to locate their plants close to the Dell Assembly plants
Answer: Wrong – FalseAnswer
