Operations & Supply Chain Management MCQ

1. 1. Operations & Supply Chain Management (205)

2. 2. Q. "Quality is defined by the customer" is : a) An unrealistic definition of
quality b) A user-based definition of quality c) A manufacturing-based definition of
quality d) A product-based definition of quality
3. 3. Q. “ Zero defects in manufacturing …” a) is a relevant goal only in
electronic assembly b) is readily achievable in all areas c) is the goal of TQM d) is an
unobtainable and misleading idea
4. 4. Q. 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
5. 5. Q. Which one of the following is not a typical question dealt with by an
operations managers? a) How much capacity will be needed in the months ahead?
b) What is a satisfactory location for a new facility? c) How to motivate employees?
d) All are typical of operations decisions.
6. 6. Q. 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
7. 7. Q. Positive, long-term relationships between supply chain participants refer
to: a) Coo-petition b) Tailored Logistics c) Partnerships d) Supply Chain
Management
8. 8. Q. Which of the following statements is true of LEAN? a) Lean principles
focus on advanced statistical methods b) Lean principles are separate body of
knowledge c) Lean principles have been developed over a lengthy period of time. d)
Lean principles include reducing waste.
9. 9. Q. According to the manufacturing-based definition of quality a) “Quality is
the degree of excellence at an acceptable price and the control of variability at an
acceptable cost" b) Quality depends on how well the product fits patterns of
consumer preferences c) Even though quality cannot be defined, you know what it is
d) Quality is the degree to which a specific product conforms to standards
10. 10. Q. Cooperative supply chain relationships developed to enhance the
overall business performance of both parties is a definition of: a) Third-party logistics
b) Supply chain collaboration c) Dovetailing d) Relationship marketing
11. 11. Q. Total Quality Management emphasizes a) The responsibility of the
Quality Control staff to identify and solve all quality-related problems b) A
commitment to quality that goes beyond internal company issues to suppliers and
customers c) A system where strong managers are the only decision makers d) A
process where mostly statisticians get involved
12. 12. Q. "Kaizen" is a Japanese term meaning a) A Foolproof Mechanism b)
Just-in-time (JIT) c) A Fishbone Diagram d) Continuous Improvement
13. 13. Q. Among the tools of TQM, the tool ordinarily used to aid in
understanding the sequence of events through which a product travels is a… a)
Pareto chart b) Flow chart c) Check Sheet d) Taguchi Map
14. 14. Q. Which one of the following would not generally be considered as an
aspect of operations management? • Work methods • Secure financial resources •
Maintain quality • Product or service design
15. 15. Q. The inputs to a transformation process include all of the following
except a) Material b) People c) Information d) Assembly
16. 16. Q. Which came last in the development of manufacturing techniques? a)
Lean production. b) Division of labor. c) Mass production. d) Interchangeable parts.
17. 17. Q. 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
18. 18. Q. Which of the following is not an area of responsibility for a logistics
manager? a) Inventory b) Purchasing c) Warehousing d) Marketing
19. 19. Q. 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. • Reduction-inventory
Management • Supply Chain Management • Economic Order Quantity • Just-in-time
Logistics
20. 20. Q. A Supply Chain which includes the Distribution of finished products
and services a) Outbound Logistics b) Inbound Logistics c) Supply of Goods d)
Transportation
21. 21. Q. In a SC, Material flows in one direction while _________from in both
direction a) Process b) Information c) Product d) Semi-finished Goods
22. 22. Q. What name is often given to the Japanese “total quality approach‟ to
removing anything that does not add value to the final product? • Jobbing processes
• Lean production processes • Continuous processes. • Batch processes.
23. 23. Q. A supply chain is a sequence of firms that perform activities required:
a) to find products that are similar b) to facilitate wholesalers inventory selections c)
to create synergy in their training programs d) to create and deliver goods to
consumers
24. 24. Q. Today, a growing number of firms now outsource some or all of their
logistics to ________ intermediaries a) Competitors b) Third Party Logistics (3PL)
Providers c) Channel Members d) Cross-functional Teams
25. 25. Q. What are the two basic types of production systems? a) Automated
and manual b) Intermittent and non-intermittent (Continuous) process c) Normal and
continuous process d) Continuous process and batch
26. 26. Q. What type of process would a paper mill be most likely to use? a)
Continuous flow b) Project c) Job shop d) Flow shop
27. 27. Q. Which of the following is true? a) Value is always lower than price. b)
Value is what consumers are prepared to pay. c) Cost is always lower than price. d)
Price is always lower than value.
28. 28. Q. Efficiency is defined by a) Actual output divided by design capacity. b)
Capacity divided by utilization. c) Effective capacity divided by actual output. d)
Actual output divided by effective capacity.
29. 29. Q. As production systems move from projects to batch production to mass
production to continuous production a) Processes become more flexible b) Customer
involvement with the process increases c) Products become more standardized d)
Demand volumes decrease
30. 30. Q. A big advantage of a process layout is • Its flexibility • Its low cost • The
ability to employ low-skilled labour • Its high equipment utilization
31. 31. Q. Which of the following is an implication of low variety? a) Low unit cost
b) Flexibility needed c) High complexity d) Matching customers specific needs
32. 32. Q. Operations typically differ in terms of volume of output, variety of
output, variation in demand or the degree of ‘visibility’ (ie, customer contact) that
they give to customers of the delivery process. Please match the following element
with the most appropriate of the above dimensions. Low unit costs are most closely
matched to:- a) Variety b) Variation c) Volume d) Visibility
33. 33. Q. In a process flow chart transportation is depicted by _________? a) A
circle b) A square c) A triangle d) An arrow
34. 34. Q. In a process flow chart storage of information is depicted by
________? a) A circle b) A square c) A triangle d) An arrow
35. 35. Q. A useful process improvement tool to search for the root cause of a
problem is the ___________ process? a) 3 Whats b) 4 Whos c) 5 Whys d) 6 Wheres
36. 36. Q. A quality criterion which can be measured is called a ___________? a)
Quality variable b) Quality component c) Quality attribute d) Quality characteristic
37. 37. Q. Which of these is a quality variable for a motor car? a) Comfort of the
seating b) Time to reach a given speed c) Road holding ability d) Headlights are
working
38. 38. Q. In a materials processing operation the design capacity is defined as
_____________? a) The Minimum Output Per Given Time. b) The Aggregate Annual
Output. c) The Theoretical Maximum Output in A Given Time. d) The Most Likely
Output In A Given Time.
39. 39. Q. What additional factor does Overall Equipment Effectiveness take into
account which makes it more meaningful than efficiency or utilization? a) Flexibility
b) Speed c) Cost d) Quality
40. 40. Q. Adjusting inputs to an operation so that outputs match demand is
known as ____________________? a) A level capacity strategy b) A demand
management strategy c) A chase demand strategy d) A yield management strategy
41. 41. Q. Having a 'happy hour' in a pub or restaurant is an example of which
type of capacity management? a) A level capacity strategy b) A demand
management strategy c) A chase demand strategy d) A yield management strategy
42. 42. Q. In the mass production era there were 4 types of operations process;
complex project, batch production, assembly line and ____________? a) Job shop
b) Simple project c) Mass process d) Continuous flow process
43. 43. Q. In a materials processing operation, which of the following process
type is associated with the highest volume and lowest variety? a) Job shop b) Batch
process c) Mass process d) Continuous process
44. 44. Q. In a materials processing operation, which process is associated with
the highest variety? a) Project b) Job shop c) Batch process d) Mass production
45. 45. Q. A sequence of business and information links is called a ________? a)
Logistics network b) Distribution network c) Sales channel d) Supply chain
46. 46. Q. Supply chains link operators to suppliers in _________? a) Layers b)
Groups c) Tiers d) Vertical Layer
47. 47. Q. Activities which are undertaken before the final operation are termed
_______ activities. a) Upstream b) Primary c) Secondary d) Downstream
48. 48. Q. In the automotive supply chain information flows in which direction? a)
Towards the end user only b) Towards the supplier only c) Between the end user
and the operation only d) Both towards the end user and the supplier
49. 49. Q. How do automotive companies mainly sell their new products? a) Over
the internet b) Through retail distributers c) Via a trade magazine d) Directly to
customers
50. 50. Q. Selecting suppliers and purchasing items is called ____? a)
Negotiation b) Procurement c) Contracting d) Selection
51. 51. Q. The main benefit to an operation of having multiple sourcing is
______? a) Consistent quality b) Speed of delivery c) Continuity of supply d)
Flexibility of products
52. 52. Q. Which of the following is an advantage of single sourcing? a)
Continuity of supply b) Ability to keep prices down c) Increased flexibility of supply d)
Lower administration cost
53. 53. Q. When an organization owns its suppliers it is known as ________? a)
Downstream supplier collaboration b) Backward vertical integration c) Forward
vertical integration d) Upstream supplier collaboration
54. 54. Q. Logistics is the term for which activities? a) Procurement of raw
materials b) Distribution of goods to customers c) Accounting for raw materials in
transit d) All of the above
55. 55. Q. The Japanese term for waste is ____________? a) Muri b) Kanban c)
Muda d) Kaizen
56. 56. Q. The Japanese term “Muri” means ____________? a) The Overburden
b) The Unevenness c) Leveling of Production d) Continuous Improvement
57. 57. Q. The Japanese term “Kanban” means ____________? a) Visual
Depicts b) Visual Cards c) Leveling of Production d) Continuous Improvement
58. 58. Q. In the Japanese term “Kaizen”, “Kai” means _________? a)
Performance b) Change c) Improvement d) Standards
59. 59. Q. The Japanese term “Jidoka” means ____________? a) Manual
Correction b) Automation c) Autonomation d) Continuous Improvement
60. 60. Q. The Japanese term “Mura” means ____________? a) The Overburden
b) The Unevenness c) Leveling of Production d) Continuous Improvement
61. 61. Q. The Japanese term “Hiejunka” means ____________? a) The
Overburden b) The Unevenness c) Leveling of Production d) Continuous
Improvement
62. 62. Q. In Visual Management, the Orange Colour marking on the floor
indicates… a) Materials for Inspection b) Materials as Scrap c) WIP Materials d)
Finished Goods
63. 63. Q. In Visual Management, the Green Colour marking on the floor
indicates… a) Materials for Inspection b) Materials as Scrap c) WIP Materials d)
Finished Goods
64. 64. Q. In Visual Management, the Red Colour marking on the floor
indicates… a) Materials for Inspection b) Materials as Scrap c) WIP Materials d)
Finished Goods
65. 65. Q. Edward Deming says, Quality is the responsibility of… a) Suppliers
supplying raw materials (inputs) b) Operators working in Operations Department c)
Engineers designing quality Design d) Everyone working for the Organization
66. 66. Q. Quality can be also defined as _____________ a) Value/Benefits (V/B)
b) Benefits/Cost (B/C) c) Performance/Expectations (P/E) d) Performance/Value
(P/V)
67. 67. • Q. Toyota Production System (TPS) developed by _______ & _______
a) Eiji Toyoda b) Taiichi Ohno c) Genchi Genbutsu d) a & b e) a & c f) b & c
68. 68. Q. Operation Research, a Multidisciplinary approach was evolved in WWII
to 1960’s for _________ a) Problem Solving b) Problem Research c) Problem
Definition d) Problem Identification
69. 69. Q. Henry Gantt - recognized the value of nonmonetary rewards to
motivate workers, and developed a widely used system for scheduling, called Gantt
charts a) Nonmonetary Rewards b) Monetary Rewards c) Employee Motivation d)
Flow Charts
70. 70. Q. The concept of “Interchangeable Parts” was applied by a) Henry Ford
b) Charles Babbage c) Eli Whitney d) F W Taylor
71. 71. Q. In 1776 -Specialization of labor in manufacturing was introduced by a)
Henry Ford b) Adam Smith c) Eli Whitney d) F W Taylor
72. 72. Q. In 1832 -Division of labor by skill; assignment of jobs by skill; basics of
time study was introduced by a) Charles Babbage b) Adam Smith c) Eli Whitney d) F
W Taylor
73. 73. Q. In 1900- Scientific management time study and work study developed;
dividing planning and doing of work was introduced by a) Charles Babbage b) Adam
Smith c) F W Taylor d) Frank B. Gilbreth
74. 74. Q. Operation is a ________ process designed to convert input in to a
valuable Product or Service a) Conversion b) Transformation c) Transition d)
Production
75. 75. Q. In a Process Strategy, High Variety & Low Volume should focus on
____________ a) Processes b) Product c) Both a & b d) None of the above
76. 76. Q. In a Process Strategy, Low Variety & High Volume should focus on
____________ a) Processes b) Product c) Both a & b d) None of the above
77. 77. Q. which of the following are the Determinants of Process Characteristics
a) Volume b) Variety c) Flow d) All of the above
78. 78. Q. The project process requires a _________ a) Matching Volume to
Variety b) High Degree of Job Customization c) High Degree of Flexibility d) Job
Repetition & Rotation
79. 79. Q. Similar products or services are manufactured repeatedly using
intermittent flow is called as….. a) Batch Production b) Continuous Production c) Job
Shop Production d) Project Production
80. 80. Q. Production of Automobiles, Electronic Appliances, Personal
Computers & Toys like products are manufactured using __________ • Continuous
Flow • Line Flow • Job Shop Flow • Batch Flow
81. 81. Q. Vertical integration or outsourcing to manage with Operations & Supply
is a decision also called as_____ a) Expansion of Business b) Backward Integration
c) Make or Buy Decision d) Outsourcing Decision
82. 82. Q. A Layout designed to Product which is too large to move is example of
_______ a) Process layout b) Product Layout c) Fixed Product Layout d) Hybrid
Layout
83. 83. Q. A Layout designed to Group similar resources together is example of
_______ a) Process layout b) Product Layout c) Fixed Product Layout d) Hybrid
Layout
84. 84. Q. A Layout designed to produce a specific product, or a small number of
products efficiently is example of _______ a) Process layout b) Product Layout c)
Fixed Product Layout d) Hybrid Layout
85. 85. Q. When Volume of Production is High (Mass Production) then
___________ is Feasible. a) Product Layout b) Process Layout c) Fixed Layout d)
Flexible Layout
86. 86. Q. When Volume of Production is _______ then Process Layout is
Feasible a) High b) Medium c) Low d) Average
87. 87. Q. The resources arranged are as __________ to each product for
smooth component flow in each job shop a) Dedicated b) Shared c) Arranges one
per each department d) Arranged Systematically
88. 88. Q. Private Sector banks follow __________ a) Process layout b) Mixed
Layout c) Product Layout d) Customer Service Layout
89. 89. Q. Public Sector banks follow __________ a) Process layout b) Mixed
Layout c) Product Layout d) Customer Service Layout
90. 90. Q. Service blueprint is a ________ that accurately portrays the service
system to provide better services to people a) Projection b) Blue Print c)
Diagram/Design d) None of the Above
91. 91. Q. In service blue printing, __________ is where the customer directly
interacts with the service providers a) Line of Services b) Line of Interaction c) Line
of Internal Interaction d) Lobby
92. 92. Q. In service blue printing, __________ is where the service providers
interacts with the service supporters a) Line of Services b) Line of Interaction c) Line
of Internal Interaction d) Lobby
93. 93. Q. Beyond this line, the customer can not see the activities of service
providers a) Line of Interaction b) Line of Visibility c) Line of Internal Interaction d)
Line of Usability
94. 94. Q. In the first instance, __________ allows the customer to make a
decision on quality of services as per service blue print a) Line of Interaction b) Front
Stage Actions c) Line of Internal Interaction d) Physical Evidences
95. 95. Q. Lean production relies on a specific throughput rate of the whole
operation. This is known as _____________? a) Output time b) Throughput time c)
Kanban time d) Takt time
96. 96. Q. Reducing unnecessary motion in operations can significantly improve
throughput. Making these improvements is known as ____________? a) Eco-motion
b) Ergonomics c) Economics d) Empowerment
97. 97. Q. Which of these is not one of the 5 principles of lean production? a)
Specify value to the customer b) Identify the value stream c) Push goods through to
completion d) Strive for perfection
98. 98. Q. One of the tools of lean production is SMED. What does this stand for?
a) Single Minute Engineering Design b) Single Motion Engineering Design c) Simple
Motion and Exchange of Die d) Single Minute Exchange of Die
99. 99. Q. Lean production primarily delivers cost and ___________ to an
operation? a) Flexibility b) Speed c) Quality d) Dependability
100. 100. Q. 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
101. 101. Q. 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
102. 102. Q. In Supply Chain Management, VMI stands for _____ a) Vendor
Material Inventory b) Vendor Managed Inventory c) Variable Material Inventory d)
Valuable Material Inventory
103. 103. Q. Reverse logistics is required because a) Goods are defective b)
Goods are unsold c) The customers simply changed their minds d) All of the above
104. 104. Q. Organizations generally use demand forecasting to develop a)
Financial Plans b) Facilities Plans c) Marketing Plans d) All of the above
105. 105. Q. Which of the following is used for identifying the total resources
requirement for meeting market demand a) Capacity Planning b) MRP-I c) MRP-II d)
Inventory Management
106. 106. Q. MRP through MPS, ensures availability of required raw materials at
the point of utilization. Thus MRP ensures.. a) Better Customer Services and
delivery of value b) To reduce cost of manufacturing c) To improve schedule of
maintenance d) To improve performance of financial department
107. 107. Q. Production Planning includes; a) Orders booking from market b)
Planning production budget c) Operation Layout d) All of the Above
108. 108. Q. The last step in production control is.. a) Tools & Techniques b)
Dispatching c) Scheduling d) Time Estimating
109. 109. Q. The correct sequence of operations in production planning and
control is… a) Routing-Scheduling-Dispatching-Follow up b) Scheduling-Routing-
Dispatching-Follow up c) Dispatching-Routing-Scheduling-Follow up d) Routing-
Scheduling-Follow up-Dispatching
110. 110. Q. Which of the Following is true for Routing a) It is the flow of work in
the plant b) Route sheets include list of machines and tools to follow c) It depends
upon material handling facilities d) All of the above
111. 111. Q. Loading in operations means.. a) Sending the raw materials to the
machines b) Sending the finished materials to the store c) Assigning the work to the
facilities d) Uploading the software in machine control panel
112. 112. Q. Dispatching authorizes the start of production operations by.. i)
Release of materials and components from store to floor ii) Release of materials
from process to the process iii) Issue of drawings instruction sheets Which of the
above is true a) Only I b) Only ii c) I & ii d) i, ii & iii
113. 113. Q. Bills of Materials consists of a) Part number b) Part Specification c)
Price of the part d) All of the above
114. 114. Q. Procurement cycle time is time consumed for.. a) Receiving of Raw
Materials b) Inspection of the received Materials c) Storage of Materials d) All of the
Above
115. 115. Q. Master Production Schedule allows a) Schedule of dispatch of
Materials –MRP-I b) Schedule of sequencing and loading of facilities-MRP-II c)
Capacity Requirement Planning-CRP d) All of the above
116. 116. Q. Gantt Chart is mainly useful for the … a) Routing b) Scheduling c)
Follow up d) Inspection & Quality Control
117. 117. Q. The process of comparing output to the previously decided plans as
well set standards is to determine if corrective actions is needed is called as… a)
Production Planning b) Production Scheduling c) Production Forecasting d)
Production Control
118. 118. Q. Master Production Scheduling step achieved after aggregate
planning requires… a) Disaggregating the Aggregate Plan b) Sub Optimization of
Demand c) Strategy Formulation d) Rough Cut Capacity Planning
119. 119. Q. ___________ is the ability of the manufacturing organizations to meet
the demand of market a) Priority b) Capacity c) Forecasting d) Control
120. 120. Q. The __________ is the plan for the production of individual end items
per day, per week, per month on long time horizon a) JIT b) MPS c) MRP-I d) DRP
121. 121. Q. A ________ Strategy means producing exactly what is demanded in
the market by the customers at a given time a) Chase b) Production Leveling c) Sub
Contracting d) TQM
122. 122. Q. _______ is the first step in PPC system a) Production Planning b)
Forecasting c) Inventory Management d) Dispatching of the Materials
123. 123. Q. The main objective of PPC is to ensure.. a) Smooth Flow of Materials
b) Intermittent Flow Materials c) Continuous Flow Materials d) Job Flow Materials
124. 124. Q. Which of the following is not the technique of Forecasting a) Simple
Moving Average Method b) Exponential Smoothing factor c) Weighted Moving
Average Method d) Market Potential
125. 125. Q. In the _____________ environment, several product options exist
(e.g., automobiles) and the customer is not willing to wait until the product is made.
Therefore manufacturers produce and stock standard component parts. a) make-to-
order c) Production leveling b) make-to-stock d) assemble to order
126. 126. Q. __________ is also called as part list or building list is the document
generated at the design stage a) MPS b) BoM c) MRP-I d) MRP-II
127. 127. Q. Purchasing is the task of buying 5R’s of materials then Procurement
is _______________ a) Receiving of the Materials at Store b) Checking of Materials
with placed orders c) Storing the materials in the store/warehouse d) All of the above
128. 128. Q. Moving from the aggregate plan to a master production schedule
requires a) Rough Cut Capacity Planning b) Sub-optimization c) Disaggregation d)
Strategy Formulation
129. 129. Q. Identifying the path of how a product is manufactured right from input
& raw material into finished product , this process is known as __________ a)
Routing b) Scheduling c) Loading d) Planning
130. 130. Q. Process consisting of assignment of standing and completion times
for various operations to be performed this process is called as____ a) Routing b)
Scheduling c) Loading d) Planning
131. 131. Q. Which scheduling technique should be employed when due dates are
important for a job order? a) Forward Scheduling b) Loading c) Dispatching d)
Backward Scheduling
132. 132. Q. Which of the following is not an effectiveness criterion for scheduling?
a) Maximizing Flow Time b) Minimizing Completion Time c) Minimizing WIP
Inventory d) Maximizing Utilization
133. 133. Q. Forward scheduling… a) begins with a delivery date, then each
operation is offset one at a time, in reverse order b) is well suited where the supplier
is usually able to meet precise delivery dates c) tends to minimize in-process
inventory d) assumes that procurement of material and operations start as soon as
requirements are known
134. 134. Q. A strategy which aims to produce a perfect product which will suit
everybody is called a) Marketing orientation. b) Production orientation. c) Product
orientation. d) Perfection orientation.
135. 135. Q. A strategy which aims to produce the maximum amount of goods at
the lowest possible price is called: a) Production orientation. b) Selling orientation. c)
Societal marketing. d) Cost orientation.
136. 136. Q. Which of the following is true? a) Value is always lower than price. b)
Value is what consumers are prepared to pay. c) Cost is always lower than price. d)
Price is always lower than value
137. 137. Q. A measure of the reserve capacity a process has to handle in
unexpected increases in demand is the: a) Capacity utilization rate. b) Capacity
cushion. c) Capacity bottleneck. d) Capacity constraint limit.
138. 138. Q. Efficiency is given by a) Actual output divided by design capacity. b)
Capacity divided by utilization. c) Effective capacity divided by actual output. d)
Actual output divided by effective capacity.
139. 139. Q. Costs that continue even if no units are produced are called a)
Variable costs. b) Mixed costs. c) Marginal costs. d) Fixed costs.
140. 140. Q. A facility with a design capacity of 1,000 units, an actual average of
800 units, and effective capacity of 850 units has a utilization of _______ . a) 85% b)
80% c) 125% d) 94%
141. 141. Q. The master production schedule is the schedule of production for
what level product/material? a) Level 0 b) Level 1 c) Level 2 d) Level 3
142. 142. Q. In a distribution requirements planning environment, forecasted
demand at the plant level is equal to ______ in the distribution center level. a)
Scheduled receipts b) Planned receipts c) Planned orders d) None of the above
143. 143. Q. A lot-sizing technique that generates exactly what was required to
meet the plan is a) The Wagner-Whitin algorithm. b) Economic order quantity. c) Lot-
for-lot. d) Part period balancing.
144. 144. Q. The difference between a gross material requirements plan (gross
MRP) and a net material requirements plan (net MRP) is a) The net MRP includes
consideration of the inventory on hand, whereas the gross MRP does not. b) b) The
gross MRP doesn't take taxes into account, whereas the net MRP includes the tax
considerations. c) c) The gross MRP may not be computerized, but the net MRP
must be computerized. d) The gross MRP includes consideration of the inventory on
hand, whereas the net MRP does not.
145. 145. Q. An example of purchasing costs include a) Incoming Freight b)
Storage Costs c) Insurance d) Spoilage Insurance
146. 146. Q. If demand of one year is 25000 units, relevant ordering cost for each
purchase order is INR 210 and carrying cost of one unit of stock is INR 25 then
economic order quantity is a) 678 packages c) 658 Packages b) 668 Packages d)
648 Packages
147. 147. Q. Activities related to coordinating, controlling and planning activities of
flow of inventory are classified as a) Decisional Management b) Throughput
Management c) Inventory Management d) Manufacturing Management
148. 148. Q. Required rate of return is multiplied per unit cost of purchased units
for calculating a) Irrelevant Inventory Carrying Costs b) Relevant Opportunity Cost
Of Capital c) Relevant Purchase Order Costs d) Relevant Inventory Carrying Costs
149. 149. Q. Systematic flow of services, goods or information from buying
material for product delivery to customers is known as a) Supply Chain b) Value
Chain c) Material Flow Chain d) Manufacturing Flow Chain
150. 150. Q. Costs associated with storage of finished goods such as spoilage,
obsolescence and insurance of goods are classified as a) Carrying Costs b)
Purchasing Costs c) Stock-out Costs d) Ordering Costs
151. 151. Q. Costs of goods are acquired from suppliers is classified as… a)
Stock-out Costs b) Ordering Costs c) Carrying Costs d) Purchasing Costs
152. 152. Q. If economic order quantity for one time is 15000 packages and
demand in units for one year are 15000 units then number of deliveries in a year will
be a) 16 b) 12 c) 10 d) 14
153. 153. Q. Decision model to calculate optimal quantity of inventory to be
ordered is called a) Efficient Order Quantity b) Economic Order Quantity c) Rational
Order Quantity d) Optimized Order Quantity
154. 154. Q. A regular check on Book entry and physical stocks in hand must be
done to.. a) Place the order b) To check exact availability of stocks c) To decide the
reorder point d) To control the stock movement
155. 155. Q. Inventory carried for the purpose of providing flexibility to each
decision-making unit to manage its operations independently is known as…. a)
Safety inventory b) Pipeline inventory c) Decoupling inventory d) Cycle inventory
156. 156. Q. The inventory which is dependent on alternative modes of
transportation is known as a) Decoupling inventory b) Pipeline inventory c) Safety
inventory d) Cycle inventory
157. 157. Q. 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 a) 35.64 and 111.48 c) 36.64 and
112.48 b) 33.64 and 107.48 d) 34.64 and 109.48
158. 158. Q. Higher demand uncertainty provides higher savings by pooling which
of the following inventory? a) Safety inventory b) Pipeline inventory c) Decoupling
inventory d) Cycle inventory
159. 159. Q. Which of the following is true for inventory control a) EOQ has
minimum totals costs per order b) Inventory Carrying cost increases with
quantity/order c) Ordering cost decreases with increase in quantity/order d) All of the
above
160. 160. Q. The time period between placing the order and receiving the placed
order is called as.. a) Waiting Time b) Takt Time c) Cycle Time d) Lead Time
161. 161. Q. A firm's inventory turnover (IT) is 5 times on a cost of goods sold
(COGS) of $800,000. If the IT is improved to 8 times while the COGS remains the
same, a substantial amount of funds is released from or additionally invested in
inventory. In fact, a) $160,000 is released d) $60,000 is released. b) $100,000 is
additionally invested. c) $60,000 is additionally invested
162. 162. Q. If EOQ = 360 units, order costs are $5 per order, and carrying costs
are $.20 per unit, what is the annual usage in units? a) 129,600 units c) 25,920 units
b) 2,592 units d) 18,720 units
163. 163. Q. Costs of not carrying enough inventory include a) Lost Sales b)
Customer Disappointment c) Possible Worker Layoffs d) All of the above
164. 164. Q. Receiving a required inventory item at the exact time needed. a) ABC
Analysis b) JIT c) FOB d) PERT
165. 165. Q. The two basic questions in inventory management are how much to
order and when to order. a) True b) False
166. 166. Q. Using the EOQ model, if an item's holding cost increases, its order
quantity will decrease. a) True b) False
167. 167. Q. With the A-B-C approach, items which have high unit costs are
classified as A items. a) True b) False
168. 168. Q. When using EOQ ordering, the order quantity must be computed in
every order cycle. a) True b) False
169. 169. Q. Holding and ordering costs are inversely related to each other.. a)
True b) False
170. 170. Q. In the basic EOQ model, annual ordering cost and annual ordering
cost are equal for the optimal order quantity. a) True b) False
171. 171. Q. Increasing the order quantity so that it is slightly above the EOQ
would not increase the total cost by very much. a) True b) False
172. 172. Q. The first activity of purchasing cycle is.. a) Source Selection &
Negotiation b) Communicating the Requirement to the Suppliers c) Recognizing the
need of Procurement d) Inspection of the Goods
173. 173. Q. Raw Materials & WIP can be classified as a) Direct Materials b)
Indirect Materials c) Finished Materials d) Standard Materials
174. 174. Q. Which of the following is a function of inventory? a) to provide a stock
of goods that will provide a selection for customers b) to take advantage of quantity
discounts c) to hedge against inflation d) all of the above are functions of inventory
175. 175. Q. All of the following statements about ABC analysis are true except a)
inventory may be categorized by measures other than dollar volume b) it categorizes
on-hand inventory into three groups based on annual dollar volume c) it is an
application of the Pareto principle d) it states that all items require the same degree
of control
176. 176. Q. Which of the following statements about the basic EOQ model is
true? a) If the ordering cost were to double, the EOQ would rise. b) If annual demand
were to double, the EOQ would increase. c) If the carrying cost were to increase, the
EOQ would fall d) All of the above statements are true.
177. 177. Q. Which of the following statements about the basic EOQ model is
false? a) If the setup cost were to decrease, the EOQ would fall. b) If annual demand
were to increase, the EOQ would increase. c) If the ordering cost were to increase,
the EOQ would rise. d) If annual demand were to double, the EOQ would also
double.
178. 178. Q. Extra units that are held in inventory to reduce stock- outs are called
a) Just-in-time inventory. b) Reorder point. c) Demand variance. d) Safety stocks.
179. 179. Q. Which of the following is NOT a type of inventory? a) MRP b)
Finished goods c) Raw material d) Work-in-process
180. 180. Q. A system that triggers ordering on a uniform time basis is called
a_____________ a) Fixed-quantity Order system. b) Reorder point Order system. c)
Fixed-period Order system. d) EOQ.
181. 181. Q. Logistic network through which unwanted or excess products by
resellers or consumers is classified as a) Inbound Distribution b) Outbound
Distribution c) Forward Distribution d) Reverse Distribution
182. 182. Q. Process of managing upstream and downstream of final goods, flow
of raw materials and information about resellers and final consumers is classified as
a) Marketing Logistics Network b) Supply Chain Management c) Delivery Network d)
Physical Distribution Network
183. 183. Q. All of the following costs are likely to decrease as a result of better
quality except a) Customer Dissatisfaction Costs b) Maintenance Costs c) Scrap
Costs d) Warranty And Service Costs
184. 184. Q. Inspection, scrap, and repair are examples of a) Internal Costs b)
External Costs c) Costs of Dissatisfaction d) Societal Costs
185. 185. Q. 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?
a) The logistics service provider b) The suppliers of raw materials and components
c) The distributor d) Hindustan Unilever Ltd e) The departmental store
186. 186. Q. Pareto charts are used to a) Identify Inspection Points In A Process
b) Outline Production Schedules c) Organize Errors, Problems Or Defects d) Show
Material Flow
187. 187. Q. 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
188. 188. Q. 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
189. 189. Q. VMI stands for a) Vendor Material Inventory b) Vendor Managed
Inventory c) Variable Material Inventory d) Valuable Material Inventory
190. 190. Q. 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
191. 191. Q. Distribution requirement planning is a system for a) Inventory
management b) Distribution planning c) Both ‘a’ and ‘b’ d) None of the above
192. 192. Q. Which of the following sequence is true? a) Sourcing → Outbound
logistics → Conversion into finished goods → Inbound logistics → Retailing b)
Sourcing → Inbound logistics → Outbound logistics → Conversion into finished
goods → Retailing c) Inbound logistics → Sourcing → Conversion into finished
goods → Outbound logistics → Retailing d) Sourcing → Conversion into finished
goods → Inbound logistics → Outbound logistics → Retailing e) Sourcing → Inbound
logistics → Conversion into finished goods → Outbound logistics → Retailing
193. 193. Q. Supply chain is concerned with the a) Flow Of Raw Materials, WIP
And Finished Products In The Forward Direction b) Flow Of Information In Both The
Directions c) Flow Of Cash In The Reverse Direction d) Flow Of Materials In The
Forward Direction And That Of Cash In The Reverse Direction e) Flow Of Materials
In The Forward Direction, Cash In The Reverse Direction And Information In Both
The Directions
194. 194. Q. The objective of a supply chain is: a) to improve the efficiency across
the whole supply chain b) to improve responsiveness across the whole supply chain
c) to deliver improved value to the customers d) to improve the efficiency and
responsiveness across the whole supply chain and also deliver improved value to
the customers e) to improve the responsiveness across the whole supply chain and
deliver improved value to the customers
195. 195. Q. In today’s supply chain, there has been a shift in the power structure
in a chain towards a) Third-party logistics service providers b) Distributors c)
Manufacturers d) Retailers e) Raw-material suppliers
196. 196. Q. The companies will realize the benefits of implementing IT when
which of the following is undertaken? a) Companies need to invest heavily in
information systems. b) Companies need to automate the existing supply chain
systems and processes. c) Companies need to re-engineer their supply chain
structure. d) Companies need to undertake revision in the supporting organizational
processes. e) Companies need to re-engineer their supply chain structure and
undertake revision in the supporting organizational processes.
197. 197. Q. Ford supply chain is characterized by a) Vertical integration b)
Increased product variety c) Individual customization d) Long-term relationship with
the suppliers e) Loosely-held supplier networks
198. 198. Q. Toyota supply chain is characterized by a) Zero product variety b)
Individual customization c) Long-term relationship with the suppliers d) Loosely-held
supplier networks e) Vertical integration
199. 199. Q. Dell supply chain is characterized by a) Individual customization b)
Vertical integration c) Zero product variety d) Lean production systems e) Long-term
relationship with the suppliers
200. 200. Q. Which one of the following is not the supply challenge being faced by
the Indian organizations? a) Smaller pack sizes b) Complex taxation structure c)
Poor infrastructure d) Complex distribution structure e) IT implementation
201. 201. Q. A supply chain is a sequence of firms that perform activities required:
a) to find products that are similar b) to facilitate wholesalers inventory selections c)
to create synergy in their training programs d) to create and deliver goods to
consumers e) to support the acquisition of raw materials
202. 202. Q. 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 e) prospecting new business
ventures.
203. 203. Q. A supply chain is essentially a sequence of linked: a) customer and
prospects b) supplier and manufacturer c) suppliers and customers d) warehousing
and wholesaling units e) events in the marketing process
204. 204. Q. In the automotive industry, the person who is responsible for
translating customer requirements into actual orders and arranges delivery dates is
the car maker: a) Supply Manager b) Purchasing Manager c) Production Manager d)
Supply Chain Manager e) VP For Production
205. 205. Q. Pricing interacts with a supply chain in many ways. For instance,
transportation rate structures are adjusted by the carrier based on a) Cost To Unload
b) The Size Of The Shipment c) Local Currency Rates d) The Logistics Costs
Concept
206. 206. Q. The total logistics cost includes expenses associated with
transportation, materials handling and a) Customer Complaints, Cost Of Food And
Highway Usage Taxes b) Warehousing, Inventory, Stock Outs And Order
Processing c) Inventory Control With Sales Forecasting d) Stock Outage Control
With Sales Forecasting e) Historical Figures Weighted By Last Years Numbers
207. 207. Q. Lead time and order cycle time are the same as a) Customer Service
Time b) Supply Chain Flow c) Logistical Clockage d) Replenishment Time e) Real
Time Service Time
208. 208. Q. Examples of third-party logistics providers are a) FedEx and Rosenau
Transport b) Sentinel Self-Storage and UPS c) FedEx and UPS d) UPS and Metro
Van Lines e) Purolator and Metro Van Lines
209. 209. Q. _____ is the integration and organization of information and logistics
across firms in a supply chain for the purpose of creating and delivering goods and
services that provide value to consumers. a) Supply chain management b) Logistics
management c) Point-to-point management d) Just-in-time management e) Cost-
effective flow
210. 210. Q. With which customer service factor are quick response and efficient
consumer response delivery systems most closely related? a) Time b) Dependability
c) Inventory Costs d) Communication e) Convenience
211. 211. Q. Traditionally, stores have carried inventory to a) Prevent Strikes Or
Product Shortages. b) Provide Better Service For Those Customers Who Wish To
Be Served On Demand. c) Eliminate Forecasting Uncertainty. d) Terminate
Production Economies. e) Avoid Purchasing And Transportation Discounts.
212. 212. Q. Supply chain management impacts all of the following aspects of the
marketing mix strategy EXCEPT a) The Target Market Selection Decision. b)
Product Mix Decisions. c) Pricing Decisions. d) Promotion Decisions. e) Distribution
Decisions.
213. 213. Q. n online retailer like Amazon.com relies on an efficient supply chain.
The development of its supply chain supported its clearly defined marketing strategy
and began with: a) Inventory Forecasts. b) A Logistics Mission Statement. c) The
Mature Stage Of The Product Life Cycle. d) Understanding The Customer. e) None
Of The Above.
214. 214. Q. In physical distribution decisions, total logistics cost includes: a)
Order Processing. b) Materials Handling And Warehousing. c) Transportation. d)
Inventory And Stockouts. e) All Of The Above.
215. 215. Q. Combining different transportation modes in order to get the best
features of each is called a) Freight Forwarding. b) Dual Distribution. c) Intermodal
Transportation. d) Bimodal Logistics. e) Intra-modal Transport.
216. 216. Q. A warehouse that emphasizes speed and efficient product flow to
hold goods for short periods of time and move them out as soon as possible: a) is a
storage warehouse. b) is a freight forwarder. c) is a distribution centre. d) is an
inventory expediting centre. e) has a just-in-time inventory system.
217. 217. Q. The impact of cost reduction on profits is much larger than the impact
of increased a) Innovation. b) Production. c) Information. d) Sales.