Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

“Sample few questions for CSCM real exam in 20th Nov 2020”

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
d. Valuable material inventory
(Ans:b)

The major decision areas in supply chain management are

a. location, production, distribution, inventory
b. planning, production, distribution, inventory
c. location, production, scheduling, inventory
 Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

d. location, production, distribution, marketing

(Ans:a)

Distribution requirement planning is a system for

a. Inventory management
b. Distribution planning
c. Both ‘a’ and ‘b’
d. None of the above
(Ans:c)

Reverse logistics is required because

a. Goods are defective
b. Goods are unsold
c. The customers simply change their minds
d. All of the above
(Ans:d)

3-PL stands for

a. Three points logistics
b. Third party logistics
c. Three points location
d. None of the above
(Ans:b)

MCQ: Unit-1: introduction to Operations and Supply Chain management

1."Quality is defined by the customer" is :
An unrealistic definition of quality
A user-based definition of quality
A manufacturing-based definition of quality
A product-based definition of quality

2. According to the manufacturing-based definition of quality

quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards
3. The supply chain concept originated in what discipline?
a) Marketing
b) operations
c) logistics
d) production
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

4. Zero defects in manufacturing is

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

5. The supply chain management philosophy emerged in which decade?

1960s
1970‟s
1980s
1990s

6. 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.
production line
supply chain
marketing channel
warehouse

7. Which one of the following is not a typical question dealt with by an operations managers?
How much capacity will be needed in the months ahead?
What is a satisfactory location for a new facility?
How to motivate employees?
All are typical of operations decisions.

8. Which of the following are not key attributes of supply chain management?
inventory control
leveraging technology
customer power
all are key attributes

9. Positive, long-term relationships between supply chain participants refer to:

Co-opetitions
tailored logistics
partnerships
supply chain management
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

10. Which one of the following best represents a pure good?

Soap
Fast food
Attending a play
Vehicle repair

11. Which of the following statements is true of LEAN?

Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.

12. The bullwhip effect:

is an ineffective way to motivate warehouse employees
applies to rodeos and has nothing to do with supply chain management
refers to the “swaying” motion associated with triple trailers
Refers to variability in demand orders among supply chain participants.

13. According to the manufacturing-based definition of quality

"quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost"
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards

14. The variability in demand orders among supply chain participants:

cannot be controlled
refers to the bullwhip effect
can be controlled with electronic order placement
is more pronounced in relational exchanges

16. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
third-party logistics
supply chain collaboration
dovetailing
relationship marketing
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

17. Process improvement technique that sorts the "vital few" from the "trivial many" is
Taguchi analysis
Pareto analysis
benchmarking
Yamaguchi analysis

18. A fishbone diagram is also known as a

cause-and-effect diagram
poka-yoke diagram
Kaizen diagram
Taguchi diagram

19. Which of the following functions is not a core function of an organisation?

The Product/Service Dev.Function
The Operations Function
The Marketing ( Including Sales ) Function
The accounting and finance function

20. What is a perfect order?

simultaneous achievement of relevant customer metrics
an order that arrives on time
an order that arrives undamaged
an order that is easy for the receiver to fill

21. Total Quality Management emphasizes

the responsibility of the Quality Control staff to identify and solve all quality-related
problems
A commitment to quality that goes beyond internal company issues to suppliers and
customers
A system where strong managers are the only decision makers
A process where mostly statisticians get involved

22. "Quality is defined by the customer" is

an unrealistic definition of quality

a user-based definition of quality
a manufacturing-based definition of quality
a product-based definition of quality
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

the definition proposed by the American Society for Quality Control

23. Which of the following is not one of the major categories of costs associated with quality?
prevention costs
appraisal costs
internal failures
none of the above, they are all major categories of costs associated with quality

24. According to the manufacturing-based definition of quality,

quality is the degree of excellence at an acceptable price and the control of variability
at an acceptable cost
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards

25. An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for:
Order processing, transportation scheduling, and inventory management
cost-effective flowing of raw materials
future purchasing of computer systems
future merger opportunities

26. Lean production involves

Elimination of cost only
Improvement of quality only
Improvement of speed only
Elimination of all types of waste

27. All of the following costs are likely to decrease as a result of better quality except
customer dissatisfaction costs
maintenance costs
scrap costs
warranty and service costs
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

28. Inspection, scrap, and repair are examples of

internal costs
external costs
costs of dissatisfaction
societal costs

29. Which of the following activities is not a direct responsibility of operations management?

Determining the exact mix of products and services that the customers will want
Designing the operation's products,services and processes
Developing an operations strategy for the operations
Planning and controlling the operation

30. Total Quality Management emphasizes

the responsibility of the Quality Control staff to identify and solve all quality-related
problems
a commitment to quality that goes beyond internal company issues to suppliers
and customers
a system where strong managers are the only decision makers
a process where mostly statisticians get involved

31. A successful TQM program incorporates all of the following except

continuous improvement
employment involvement
benchmarking
centralized decision making authority

32. Which of the following would not be normally considered as a key feature of Operations
Management?

Operations is the part of an organisation which creates wealth through the management of
the transformation process
World class Operations can give an organisation competitive advantage
Most new technology is implemented in Operations areas
Operations is the area of a business where most people work
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

33. "Kaizen" is a Japanese term meaning

a foolproof mechanism
Just-in-time (JIT)
a fishbone diagram
continuous improvement

34. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
Taguchi Loss Function
Pareto Chart
ISO 9000 Quality Cost Calculator
Process Chart

35. A quality loss function utilizes all of the following costs except
the cost of scrap and repair
the cost of customer dissatisfaction
inspection, warranty, and service costs
sales costs
costs to society

36. Which of the following is the least likely decision to be made by Operations Managers?
Selecting the location and layout of a facility
Deciding which market areas to manufacture products for
How much capacity is required to balance demand
Designing and improving the jobs of the workforce

37. Pareto charts are used to

identify inspection points in a process
outline production schedules
organize errors, problems or defects
show material flow

38. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of
events through which a product travels is a

Pareto chart
Flow chart
check sheet
Taguchi map
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

39. Which one of the following would not generally be considered an aspect of operations
management?

Work methods
Secure financial resources
Maintain quality
Product or service design

40. Which one of the following is not a typical question dealt with by an operations managers?

How much capacity will be needed in the months ahead?

What is a satisfactory location for a new facility?
How to motivate employees?
All are typical of operations decisions.

41. A worker operates a shear press. She notices that the metal sheets she is cutting have curled
edges. Who should get the first "shot" at solving the problem?

the foreman
a member of the Quality Control department
the operator herself
the employee's supervisor

42. Which of the following is not a key activity of an operations manager?

Understanding the needs of customer

Continually learning
Managing cash flows
Exploiting technology to produce goods and services

43. A recent consumer survey conducted for a car dealership indicates that, when buying a car,
customers are primarily concerned with the salesperson's ability to explain the car's features, the
salesperson's friendliness, and the dealer's honesty. The dealership should be especially

concerned with which dimensions of service quality?

communication, courtesy, and credibility
competence, courtesy, and security
competence, responsiveness, and reliability
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

communication, responsiveness, and reliability

44. Which one of the following best represents a pure service?

Bank loans
Computer diagnosis and repair
Attending a theatre play
Fast food restaurant

45. Which one of the following best represents a pure good?

Salt
Fast food
Attending a play
Vehicle repair

46. Which one of the following would not generally be considered an aspect of operations
management?

Schedule work
Secure financial resources
Maintain quality
Oversee the transformation process

47. Which one of these was not mentioned in the list of recent trends in operations
management?

Total quality management

Worker involvement
Global competition.
Automation.
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

48. Which came last in the development of manufacturing techniques?

Lean production.
Division of labor.
Mass production.
Craft production.

100. 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

101. 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

102. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products
wanted
by ________Channel members.

a) manufacturers
b) marketers
c) distributors
d) consumers

103. Intermediaries play an important role in matching ________.

a) dealer with customer

b) manufacturer to product
c) information and promotion
d) supply and demand
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

104. Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is not included in this process?

a) implementing the plan for the flow of goods and services

b) planning the physical flow of goods and services
c) controlling the physical flow of goods, services, and information
d) gathering customer's ideas for new products

105. A supply chain is a sequence of firms that perform activities required:

e. to find products that are similar
f. to facilitate wholesalers inventory selections
g. to create synergy in their training programs
h. to create and deliver goods to consumers

106. A supply chain is essentially a sequence of linked:

e. customer and prospects

f. supplier and manufacturer
g. suppliers and customers
h. warehousing and wholesaling units

107. Which of the following is not an area of responsibility for a logistics manager?

a) inventory
b) purchasing
c) warehousing
d) marketing

108. 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.

a) reduction-inventory management
b) supply chain management
c) economic order quantity
d) just-in-time logistics
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

109. Companies manage their supply chains through ________.

a) information
b) transportation modes
c) competitors
d) the Internet

EXAMINATION QUESTIONS AND ANSWERS

True/False Questions

Note to students, select the answer that is true or false “most of the time”, few situations in social
sciences are simply black or white.

1. Purchasing is primarily a clerical activity.

Answer: False

2. Supply management is also known as procurement at many firms and government agencies.

Answer: True

3. Strategic sourcing starts with the analysis of the supply market.

Answer: False

4. Materials have always been vital in the history of industrial growth.

Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

Answer: False

5. In the history of power source relationships, percentage wise, labor costs went down while
materials costs went up.

Answer: True

6. Supply management plays a major role in improving the “bottom line” by driving sales up and
costs down.

Answer: True

7. Generally speaking, firms with the fasted time to market with new products by using cross
functional teams including suppliers, enjoy higher profits.

Answer: True

8. Some 75% of many manufacturer’s quality problems can be traced back to defects in purchased
materials.

Answer: True

9. Of the factors that make up total cost of ownership (TCO), the big majority of this cost is in the
acquisition cost.

Answer: False

10. “Lean thinking” is primarily concerned with conversion cost.

Answer: False

11. When supply savings and increased sales due to superior supply chain management are
combined, it is not uncommon to increase ROI 50%.

Answer: True
Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

12. The term “supply chain” means all the members are linked together in one master contract
covering a long time period.

Answer: False

13. The term “value chain” includes both the upstream and downstream portion of the supply chain.

Answer: True

14. The extended enterprise means a group of firms collaborating as a supply alliance, i.e. a strategic
network or virtual corporation.

Answer: True

15. The key role of a supply management professional is one of leadership.

Answer: True

16. The final step in the typical purchasing cycle for materials in to audit the invoice.

Answer: False

17. Supply management must be a core competency based on its impact on the bottom line.

Answer: True

18. SM requires change, driven by upper management.

Note: SM means Supply Management

Answer: True

19. World-class supply managers proactively improve supply processes.

Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

Answer: True

20. When a group or network of firms collaborates in a partnership (alliance) fashion; the
collaboration is sometimes referred to as a strategic network, virtual corporation, or extended
enterprise.

Answer: True

25. When a firm’s major activity is research and development, the firm will most likely use:

: A) centralized purchasing

B) headquarter purchasing

C) decentralized purchasing

D) hybrid purchasing structure

E) a specialized purchasing staff at headquarters

Answer: C

26. E-commerce has facilitated the use of:

: A) centralized purchasing

B) decentralized purchasing

C) hybrid purchasing

D) none of the above

E) A, B & C

Answer: C

27. The materials management organization structure paved the way for _____ structure:

: A) value network chain structures

B) supply chain management structure

C) procurement management structure

Bangladesh Institute of Supply Chain Management TM

Registered under the Ministry of Commerce and TM from the ministry of Industry of Bangladesh.

D) purchasing centralization
E) purchasing decentralization

Answer: B

28. The most significant advantage of the supply chain management structure is:

: A) it facilitated a total systems approach to stimulate integration

B) it uses the internet to extract key information

C) it increases the visibility of the purchasing department

D) it focuses management attention on quality

E) it reveals that inventory costs are often understated

Answer: A

29. Cross functional teams have proven to help:

: A) break down functional silos

B) reduce new product development time

C) facilitate integrated planning and coordination

D) stimulate engineering change management control

E) all of the above

Answer: E

30. The key prerequisite to having cross functional teams is:

: A) effective team leaders

B) qualified team members

C) a clear team charter

D) adequate training
E) executive sponsorship

Answer: E