Multiple Choice Questions (MCQ) on Supply chain managementWhich 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 (Ans:d) 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 (Ans:b) 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 (Ans:c) 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 (Ans:d) 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 (Ans:a) VMI stands for a. Vendor material inventory b. Vendor managed inventory c. Variable material inventory inventory d. distribution. Goods are unsold c. marketing (Ans:a) Distribution requirement planning is a system for a. production. that's correct. Goods are defective b. Inventory management b. Three points location d. inventory c. Distribution planning c.d. All of the above (Ans:d) 3-PL stands for a. production. None of the above (Ans:b) Single-sourcing has a number of advantages. None of the above (Ans:c) Reverse logistics is required because a. scheduling. The customers simply change their minds d. production. location. production. location. Yes. location. distribution. . Which of the following is NOT an advantage of single sourcing? Your Answer: Wide sources of knowledge and expertise to tap. distribution. Three points logistics b. planning. Valuable material inventory (Ans:b) The major decision areas in supply chain management are a. Third party logistics c. inventory b. Both ‘a’ and ‘b’ d. Multiple-sourcing has a number of advantages. that's not correct. Which of the following is NOT an advantage? Your Answer: A wider source of knowledge and expertise is available. If the operation is low cost and minimum inventory and the . that is: Your Answer: Mismatch Correct Answer: Match No. 5. that's correct. that's not correct. Correct Answer: More scale economies. 3. 4. If the operation has deployed inventory and flexible suppliers and the market requirements are for short lead time and high margins. No.2. If the operation has minimum inventory and low-cost suppliers and the market requirements are predictable with few changes. that is: Your Answer: Match Yes. market requirements are for stable prices and low lead time. that's not correct. 6. that's correct. that is: Your Answer: Match Yes. Can switch sources in case of supply failure is an advantage of: Your Answer: Multi-sourcing Yes. 9. Greater dependency encouraging more commitment and effort is an advantage of: Your Answer: Single sourcing Yes. Potentially better quality because more SQA possibilities is an advantage of: Your Answer: Single sourcing . that's correct. that's correct. 8. 7. Higher confidentiality is an advantage of: Your Answer: Multi-sourcing Correct Answer: Single sourcing No. Your Answer: True Yes. 13. 11. All the operations that are linked together to provide goods and services to the end customer arecalled: Your Answer: The Distribution . Your Answer: False Correct Answer: True No. Your Answer: False Yes. stands for electronic point of sale. 12. Vendor-managed inventory (VMI) is a way to allow an upstream supplier to manage the inventories of its downstream customer. Yes. 10. Professor Lamming defines lean supply as supplying goods in the smallest possible quantities in order to increase flexibility. that's correct. that's not correct. that's correct. that's correct. EPOS systems used by retailers. that's correct. Authorities who object to the term ‘supply chain’ argue that the concept implies a ‘pull’ mentality. Your Answer: True Correct Answer: False 1. 3. A linkage of operations that provide goods and services through to the end customer is called: . Chain Correct Answer: The Supply Network 14. that's not correct. Instead they argue they should be referred to as: Your Answer: Demand chains Yes. Kerietsu is a Japanese word for global sourcing. 15. Your Answer: True Correct Answer: False No. The emphasis on understanding the end customer in a supply chain has led to some authorities objecting the term ‘supply chain’. Which of the following is NOT a disadvantage of single-sourcing? Your Answer: (blank) 2. 000 the cost of purchase goods and services is £7. and improves the ability to manage suppliers 7.000 and overheads are £500.000.000 salaries are £2.000. Which of the following is considered an impact of e- procurement? Your Answer: It opens up the marketplace to increased competition. The concept of materials management originated from purchasing functions that understood the importance of integrating materials flow and its supporting functions. Which of the following relates to the short-term ability to supply? Your Answer: Dependability of supply 6. The volume and value of purchases of goods or services typically increase as organisations concentrate on their ‘core’ tasks Your Answer: False Correct Answer: True . but limits the ability to manage suppliers Correct Answer: It drives efficiency. If total sales for a company are £10. opens up the market to competition. Your Answer: The Logistics Network Correct Answer: The Supply Chain 4. profits can be doubled by: Your Answer: Decreasing salaries by 25% Correct Answer: All of the above 5.000. Your Answer: True 8.000. 9. 14. The larger the level of material costs as a proportion of total costs. the greater the effect on profitability of a reduction in material costs. the supply chain manager must focus attention on: Your Answer: End customers Correct Answer: ‘Bottle neck’ businesses No. In attempting to reduce inventory in the supply chain as a whole. ‘Logistics' covers a smaller proportion of the supply chain than ‘Physical distribution management' Your Answer: False 10. Your Answer: False Correct Answer: True 12. is the basis of what concept? Your Answer: Effective supply chain Correct Answer: Lean supply chain No. E-Procurement is a generic term used to describe the use of electronic methods in every stage of the purchasing process from identification if need through to payment. especially in the form of unnecessary inventory. What is the well-accepted term for the function that deals with the operation’s interface with its supplier . that's not correct. The idea of identifying waste along the whole supply chain. that's not correct. and even contract management. Your Answer: False Correct Answer: True 11. 13. Kerietsu is a Japanese word for global sourcing. Your Answer: True Correct Answer: False No. 3. A linkage of operations that provide goods and services through to the end customer is called: Your Answer: The Logistics Network Correct Answer: The Supply Chain . 15. Which of the following is NOT a disadvantage of single-sourcing? Your Answer: (blank) 2. What is the term commonly used to refer to the extension of physical distribution management? Your Answer: Downstream supply management Correct Answer: Logistics No. that's not correct. that's not correct. markets? Your Answer: Logistics Correct Answer: Purchasing and supply management No. that's not correct. 000.4. Which of the following is considered an impact of e- procurement? Your Answer: It opens up the marketplac e to increased competitio n.000.000 and overheads are £500.000. but limits the ability to manage suppliers Correct It drives Answer: efficiency. opens up . Which of the following relates to the short-term ability to supply? Your Dependabilit Answer: y of supply 6.000 salaries are £2.000 the cost of purchase goods and services is £7.000. If total sales for a company are £10. profits can be doubled by: Your Answer: Decreasin g salaries by 25% Correct All of the Answer: above 5. Your Answer: True 8. ‘Logistics' covers a smaller proportion of the supply chain than ‘Physical distribution management' Your Answer: False 10. The larger the level of material costs as a proportion of total costs. the . the market to competitio n. The volume and value of purchases of goods or services typically increase as organisations concentrate on their ‘core’ tasks Your Answer: False Correct Answer: True 9. and improves the ability to manage suppliers 7. The concept of materials management originated from purchasing functions that understood the importance of integrating materials flow and its supporting functions. Your Answer: False Correct Answer: True 12. Your Answer: False Correct Answer: True 11. the supply chain manager must focus attention on: Your Answer: End customers Correct ‘Bottle Answer: neck’ businesse s No. greater the effect on profitability of a reduction in material costs. In attempting to reduce inventory in the supply chain as a whole. especially in the form of unnecessary inventory. and even contract management. E-Procurement is a generic term used to describe the use of electronic methods in every stage of the purchasing process from identification if need through to payment. is . that's not correct. The idea of identifying waste along the whole supply chain. 13. 15. 14. that's not correct. the basis of what concept? Your Answer: Effective supply chain Correct Answer: Lean supply chain No. that's not correct. . that's not correct. What is the well-accepted term for the function that deals with the operation’s interface with its supplier markets? Your Answer: Logistics Correct Purchasing Answer: and supply manageme nt No. What is the term commonly used to refer to the extension of physical distribution management? Your Answer: Downstrea m supply manageme nt Correct Logistics Answer: No. . that's correct. Yes.Which of the following is NOT a disadvantage of single-sourcing? Your Answer: Less easy to develop effective SQA.