Supply Chain Management Objective Set 7

QN1. Which of the following is not a characteristic of logistics

a) It ensures a smooth flow of all types of goods

b) It has the ability to meet customer expectations and requirements

c) It offers the best possible customer service at any cost

d) It deals with movement and storage of goods in appropriate quantities

Answer

Answer: d) It deals with movement and storage of goods in appropriate quantities

QN2. All of the following are the objectives of logistics except

a) To make available the right quantity of material at right quality at right time, at the right place in right condition at right price

b) To offer best possible customer service for competitive advantage

c) To promote the product through the logistic channels

d) To minimize total logistics costs

Answer

Answer: d) To minimize total logistics costs

QN3. The logistics costs in India is ___ percentage of GDP

a) 20%

b) 13%

c) 18%

d) 7%

Answer

Answer: c) 18%

QN4. Which of the following does not provide a way to create competitive advantage

a) Low cost

b) Low flexibility

c) Superior customer service

d) Value added services

Answer

Answer: b) Low flexibility

QN5. All of the following are primary activities in a value chain except

a) In bound logistics

b) Operations

c) Technology development

d) Service

Answer

Answer: a) In bound logistics

QN6. Which of the following is not a desired flow in a supply chain

a) Forward flow of value

b) Flow of goods in both the directions

c) Backward flow of cash

d) Flow of information in both the directions

Answer

Answer: c) Backward flow of cash

QN7. Which of the following is not a feature of customer service

a) It is reactive process

b) Ensures a trade-off between cost and service

c) Creates a competitive advantage

d) Brings about harmonious relationship with supply chain members

Answer

Answer: a) It is reactive process

QN8. All of the following are post transactional customer service elements except

a) Installation, warranty, repairs, etc

b) Customer claims, complaints and returns

c) Stock out level

d) Temporary replacement of products

Answer

Answer: c) Stock out level

QN9. Freight charges depends on all of the following except

a) Nature of the product

b) Value of the product

c) Distance to be covered

d) Volume/quantity to be shipped

Answer

Answer: a) Nature of the product

QN10. Carrier performance measures does not include

a) Speed

b) Claim settlement ratio

c) Area of ware house owned

d) Frequency

Answer

Answer: c) Area of ware house owned

QN11. Physical distribution in terms of logistics is known as

a) Inbound logistics

b) Outbound logistics

c) In plant logistics

d) Reverse logistics

Answer

Answer: b) Outbound logistics

QN12. Which of the following is not a feature of supply chain

a) Supply chain is a network of entities

b) The more the number of stages in a supply chain the more will be its complexity

c) Supply chain efficiency and effectiveness are the same

d) Supply chain profit should be shared equitably by all the chain members

e)

Answer

Answer: c) Supply chain efficiency and effectiveness are the same

QN13. Supply chain conflicts can be reduced by all of the following except

a) Use of power by the dominant partner

b) Involvement by investment

c) Information sharing

d) Transfer of technology and skills

Answer

Answer: d) Transfer of technology and skills

QN14. Which of the following is not a key output of the logistics system

a) Creating Competitive advantage

b) Time & Place utility

c) Creating Proprietary asset

d) Increased cash flow

Answer

Answer: c) Creating Proprietary asset

QN15. Logistics stand for

a) Whatever is logical and reasonable

b) Movement of materials to destinations

c) Putting together conclusions logically

d) Moving, supplying and warehousing materials and information in an enterprise

Answer

Answer: d) Moving, supplying and warehousing materials and information in an enterprise

QN16. Supply Chain Management covers

a) Management of suppliers and vendors

b) Management of inventories, warehousing, transportation and documentation relating to all suppliers

c) Management of demand and supplies at minimum cost but greater customer satisfaction

d) Warehousing management

Answer

Answer: b) Management of inventories, warehousing, transportation and documentation relating to all suppliers

QN17. Transportation management is

a) A small and significant part of SCM

b) Too specialized and should be managed separately

c) Does not affect customer service

d) Forms a major component of costs and should be synchronized to enhance customer satisfaction

Answer

Answer: a) A small and significant part of SCM

QN18. A fourth party logistics provider is

a) An organization that provides transportation

b) An organization that provides warehousing facility

c) An organization that manages inventory and information

d) An organization that provides comprehensive supply chain solution

Answer

Answer: d) An organization that provides comprehensive supply chain solution

QN19. Which of the following does not fit into the features of customer service

a) Providing customer service at any cost

b) Strategic processes that provides value added services

c) Creates competitive advantage in the market place

d) It reflects corporate vision

Answer

Answer: d) It reflects corporate vision

QN20. The internal web of an organization that allows only the internal users to access and share data is called

a) Intranet

b) EDI

c) Extranet

d) Internet

Answer

Answer: b) EDI

QN21. Which of the following is not an inventory related cost

a) Receivables

b) Ordering cost

c) Carrying cost

d) Stock-out cost

Answer

Answer: c) Carrying cost

QN22. Which of the following is not an assumption of basic EOQ model

a) Annual demand, carrying cost and ordering cost can be estimated and is constant

b) Half of order quantity is considered as safety stock

c) Stock out has no effect

d) Quantity discounts does not exist

Answer

Answer: c) Stock out has no effect

QN23. Inventory analysis based on the annual consumption value is called

a) ABC analysis

b) VED analysis

c) FSN analysis

d) XYZ analysis

Answer

Answer: a) ABC analysis

QN24. All are inputs to MRP system except

a) Bill of materials

b) Inventory status file

c) Master production schedule

d) ABC analysis file

Answer

Answer: d) ABC analysis file

QN25. All are features of Distribution Resources Planning except

a) DRP Deals with finished goods inventory

b) DRP operates in an independent demand situation

c) DRP is an explosion process

d) Inputs to DRP is the distribution networks

Answer

Answer: d) Inputs to DRP is the distribution networks

QN26. Which of the following is not associated with JIT system

a) Waste elimination

b) Mass production

c) Single piece flow

d) Pull system

Answer

Answer: d) Pull system

QN27. All are economic function of warehouse except

a) Stock piling

b) Receiving

c) Breaking bulk

d) Consolidation

Answer

Answer: c) Breaking bulk

QN28. The charges levied by a municipal corporation

a) Sales tax

b) VAT

c) Octroi

d) Excise

Answer

Answer: b) VAT

QN29. Mode of economic surface transportation for bulk solid material over a long distance is

a) Rail

b) Road

c) Rope ways

d) Conveyors

Answer

Answer: b) Road

QN30. Intermodal transportation system arising out of the coordination between roadways and railways is known as

a) Piggyback

b) Fishy back

c) Tran-ship

d) Express cargo

Answer

Answer: c) Tran-ship

QN31. All are principles of material handling except

a) First principle

b) Mechanization principle

c) Flexibility principle

d) Energy principle

Answer

Answer: a) First principle

QN32. Which of the following is not true for Air Way Bill

a) Receipt of goods

b) Contract for affreightment

c) Negotiable document

d) Issued by carrier

Answer

Answer: c) Negotiable document

QN33. Which of the following is not a carrier selection determinant

a) Transportation cost

b) Transit time

c) Reliability

d) Vehicle cost

Answer

Answer: d) Vehicle cost

QN34. A bonded warehouse is:

a) An open stockyard with high walls and other security measures for extra protection of goods stored

b) A warehouse in the premises of airport where goods imported by air are kept

c) A warehouse where goods on which customs or excise duties have not been paid are kept

d) A government warehouse used for storing confiscated goods

Answer

Answer: d) A government warehouse used for storing confiscated goods

QN35. LCL stands for

a) Less than normal Cargo Load

b) Less than Container Load

c) Low Cargo Load

d) Less Costlier Load

Answer

Answer: b) Less than Container Load

QN36. Penalty charged by a carrier for not clearing a consignment from their warehouse during the allowable time limit is known as

a) Damage

b) Demurrage

c) Liquidated damages

d) Penal charges

Answer

Answer: c) Liquidated damages

QN37. Certificate of origin is issued by

a) Bank in the exporting country

b) Manufacturer

c) Chamber of commerce

d) The carrier

Answer

Answer: c) Chamber of commerce

QN38. Which of the following is not an advantage of containerization

a) Reduces damages

b) Increases investment on handling

c) Reduces packaging

d) Reduces loss

Answer

Answer: b) Increases investment on handling

QN39. All are related to bullwhip effect except

a) It is the amplification of demand variation as one moves upstream in the supply chain

b) Forecast errors and lead-time variability add to bullwhip effect

c) The phenomena was first noted by Wal-Mart

d) The effect can be reduced by information sharing, vendor managed inventory, etc.

Answer

Answer: a) It is the amplification of demand variation as one moves upstream in the supply chain

QN40. All are functions of order processing except

a) Order planning

b) Order handling

c) Order delivery

d) Order pending

Answer

Answer: d) Order pending