Supply Chain Management Multiple Choice Questions and Answers

Supply Chain Management Multiple Choice Questions and Answers for the Preparation of Academic and Competitive Examinations in 2024

Supply Chain Management Multiple Choice Questions and Answers.

1. The costs of inventory at various levels and the cost of logistics form the total cost of ___.
Ans. Distribution network

2. Distributors and retailers often rely on storage warehouses. (True/False)
Ans. True

3. At ___ level, the decisions are made with long-term objectives.
a) Performance
b) Strategic
c) Tactical
d) Operational
Ans. b) Strategic

4. A company can understand the customer only if it identifies the needs of the ___.
Ans. Customer segment

5. What is demand uncertainty?
Ans. Demand uncertainty is the uncertainty of customers who demand the product.

6. A new product developed will have low supply uncertainty because the design and production processes will not be fully developed. (True/False)
Ans. False. A new product developed will have high supply uncertainty because the design and production processes will not be fully developed.

7. Companies that intend to increase their performance level must move their competitive strategy and supply chain strategy towards the ___.
Ans. Zone of strategic fit

8. Each functional area creates its own independent strategy with the objective of optimizing its ___.
Ans. Performance

9. The intracompany – intraoperative scope is a scope of strategic fit that is limited to two operations in a functional area within a company. (True/False)
Ans. False. The intracompany – intraoperative scope is a scope of strategic fit that is limited to one operation in a functional area within a company.

10. In intracompany – intra-functional scope, different functions have conflicting ___.
Ans. Objectives

11. In intercompany – inter-functional scope, the two parties work together to minimize the amount of ___ required.
Ans. Inventory

12. Just-in-Time Delivery (JIT) is a service provided by ___.
Ans. Package carriers

13. Truck load shipping is best suited for transportation between manufacturing facilities and warehouses or between suppliers and manufacturers. (True/False)
Ans. True

14. Rail services are considered an ideal model for carrying large, heavy, or high-density products over long distances. (True/False)
Ans. True

15. ___ modes of transportation suit high-quantity shipments?
a) Air transportation
b) Water transportation
c) Rail transportation
d) Intermodal transportation
Ans. b) Water transportation

16. ___ are mostly used to transport liquids and gases.
Ans. Pipelines

17. Intermodal transportation is a combination of at least two or more modes of transportation. (True/False)
Ans. True

18. Mass transportation is more expensive than transporting goods in small quantities. (True/False)
Ans. False. Mass transportation is cheaper than transporting goods in small quantities.

19. Trip-related costs and quantity-related costs remain the same with all carriers. (True/False)
Ans. False. Trip-related costs and quantity-related costs differ from carrier to carrier.

20. ___ cost includes administrative costs, the rent of an office building, and so on.
Ans. Overhead

21. Which of the following is the cost involved in holding goods in a warehouse?
a) Facility cost
b) Processing cost
c) Inventory cost
d) Transportation cost
Ans. c) Inventory cost

22. Facility costs include the fuel of a vehicle used in transportation. (True/False)
Ans. False. Facility costs do not include the fuel of a vehicle used in transportation.

23. ___ cost is the cost involved in direct labor.
Ans. Processing

24. Higher service levels and fast delivery cost more. (True/False)
Ans. True

25. Which of the following are true with respect to traffic assignment?
a) Estimating the volume of traffic on a network
b) Estimating the turning movements at intersections
c) Both a) and b)
d) None of the above
Ans. c) Both a) and b)

26. All-or-none assignment model deals with different paths for every O-D pair. (True/False)
Ans. False. The all-or-none assignment model deals with a single path for every O-D pair.

27. ___ implements the all-or-none assignment model in steps.
Ans. Incremental assignment

28. The following traffic assignment model tries to estimate an equilibrium solution based on the all-or-none assignment model.
a) Capacity restraint assignment
b) User equilibrium assignment
c) Incremental assignment
d) System-optimum assignment
Ans. Capacity restraint assignment

29. ___ is based on Wardrop’s first principle.
Ans. User equilibrium assignment

30. System optimum assignment model is based on Wardrop’s second principle. (True/False)
Ans. True