MCQ Bank
Supply Chain Management is to manage supply chain flows and assets, in order to _____________ the supply chain surplus.
- A) Minimize
- B) Maximize
- C) Neutralize
- D) Abolish
Inventory built up to counter predictable variability in demand is called:
- A) Surplus inventory
- B) Safety inventory
- C) Seasonal inventory
- D) Cycle inventory
A plan for achieving organizational goals is referred to as
- A) Strategy
- B) Operational Decisions
- C) Mission
- D) Tactics
Which of the following is not a cross functional driver of Supply Chain Performance?
- A) Pricing
- B) Information
- C) Sourcing
- D) Inventory
When demand is uncertain, the average forecast error is:
- A) 10 – 20 %
- B) 20 – 30 %
- C) 40 – 100 %
- D) 30 – 40 %
Which of the following is not a logistical driver of Supply Chain Performance?
- A) Transportation
- B) Facilities
- C) Inventory
- D) Sourcing
Which of the following refers to Marketing and Sales Strategy?
- A) Procurement
- B) Storage
- C) Delivery
- D) Positioning of Product
Return on Assets (ROA) can be written as the product of:
- A) Accounts payable turnover and profit margin
- B) Assets turnover and cash to cash cycle
- C) Profit margin and asset turnover
- D) Profit margin and Cash to cash cycle
Average amount of inventory used to satisfy demand between shipments is called:
- A) Safety inventory
- B) Surplus inventory
- C) Cycle inventory
- D) Seasonal inventory
In which of the following drivers of supply chain performance the overall trade-off is between “Make or Buy”?
- A) Sourcing
- B) Inventory
- C) Facilities
- D) Pricing
What is the relationship between Flow Time (T), Inventory (I) and Throughput (D)?
- A) T = ID
- B) D = IT
- C) There is no relationship between them
- D) I = DT
The time duration of Operational decisions is:
- A) 1 week or less
- B) All of these
- C) 2 to 5 years
- D) 3 months to a year
The increase in all of the following will cause the implied demand uncertainty to increase EXCEPT:
- A) Rate of innovation
- B) Range of quantity
- C) Variety of products required
- D) Lead time
Increasing the number of distribution centers in a supply chain results in the decrease of:
- A) Responsiveness
- B) All of these
- C) Inventory
- D) Transportation costs
For a new and innovative communication device, ______.
- A) both demand and supply are uncertain
- B) supply is predictable but demand is uncertain
- C) both demand and supply are predictable
- D) demand is predictable but supply is uncertain
When individual operations in each stage of supply chain try to minimize their own costs without giving due attention to other operations, the situation is referred to as
- A) Inter-company inter-functional scope
- B) Flexible inter-functional scope
- C) Intra-company inter-functional scope
- D) Intra-company intra-operation scope
Which of the following is true if there is a reduction in supply uncertainty?
- A) Product availability hurts
- B) Cost increases
- C) Lead time increases
- D) Safety inventory reduces
Discount which is based on total quantity purchased over a given period is called:
- A) Lot size- based discounts
- B) Variety based discounts
- C) All of these
- D) Volume based discounts
The phenomenon in which the differentiation of products is delayed is called:
- A) Postponement
- B) Bullwhip effect
- C) Mass production
- D) Make to stock
Fraction of replenishment cycles that ends with all customer demand met is called:
- A) Product availability
- B) Order fill rate
- C) Cycle service level
- D) Product fill rate