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MCQS

The document consists of a series of questions and answers related to Supply Chain Management (SCM), covering topics such as its functions, goals, components, and importance in a globalized market. Key aspects include the coordination of production, distribution, and delivery, as well as the role of supply chain managers in ensuring product availability. The document emphasizes the significance of SCM in enhancing efficiency, reducing costs, and meeting customer demands.

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0% found this document useful (0 votes)
54 views17 pages

MCQS

The document consists of a series of questions and answers related to Supply Chain Management (SCM), covering topics such as its functions, goals, components, and importance in a globalized market. Key aspects include the coordination of production, distribution, and delivery, as well as the role of supply chain managers in ensuring product availability. The document emphasizes the significance of SCM in enhancing efficiency, reducing costs, and meeting customer demands.

Uploaded by

aststonecorpca
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LECTURE # 1

1) Which of the following functions is NOT typically associated with Supply


Chain Management (SCM)?

 A) Procurement (purchasing raw materials/components)


 B) Operations management (ensuring high-quality production at low cost)
 C) Logistics
 D) Financial auditing (Correct Answer)

2) What is the primary goal of operations management within SCM?

 A) To handle customer service inquiries


 B) To ensure the production of high-quality products at high speed with
good flexibility and low production cost (Correct Answer)
 C) To design new marketing strategies
 D) To manage employee relations

3) Which aspect of SCM is concerned with converting raw materials into


finished products?

 A) Operations management (Correct Answer)


 B) Procurement
 C) Logistics
 D) Marketing

4) What role does logistics play in SCM?

 A) It focuses on purchasing raw materials.


 B) It ensures the production of high-quality products.
 C) It deals with the distribution of finished products to the end customer
(Correct Answer)
 D) It manages the marketing and sales of products.

5) In SCM, what is the main objective of marketing activities?

 A) To improve the quality of raw materials.


 B) To manage production speed and flexibility.
 C) To handle warehousing and distribution.
 D) To ensure that the finished products reach the end customer effectively
(Correct Answer)

6) What is a supply chain?

 A) A list of suppliers that provide services to a company.


 B) A collection of suppliers required to create one specific product for a
company. (Correct Answer)
 C) A sequence of product designs used in manufacturing.
 D) A distribution network for marketing products.
7) Which of the following is NOT typically a component of a supply chain?

 A) Manufacturers for parts


 B) Completed product
 C) Marketing strategies
 D) Distribution centers (Correct Answer)

8) Why is the concept of the supply chain important?

 A) It helps in reducing the time and costs of production.


 B) It involves multiple types of marketing strategies.
 C) Each link in the chain is connected in a specific direction and order.
(Correct Answer)
 D) It allows for simultaneous production of multiple products.

9) What does each link in a supply chain contribute to?

 A) Only transportation costs


 B) Only marketing and branding
 C) Time and costs, including labor, parts, and transportation (Correct
Answer)
 D) Only warehouse management

10) Can a supply chain be used for multiple products?

 A) No, each product requires a completely separate supply chain.


 B) Yes, but each product must have a unique set of suppliers.
 C) Yes, a company may use certain suppliers for multiple products.
(Correct Answer)
 D) No, supply chains are only applicable to a single product.

11) What is Supply Chain Management (SCM)?

 A. The management of only the flow of goods related to a product


 B. The management of information and finances only
 C. The management of the flow of goods, information, and finances
related to a product or service (Correct Answer)
 D. The procurement of raw materials only

12) Which of the following is not a part of Supply Chain Management (SCM)?

 A. Procurement of raw materials


 B. Delivery of the product at its destination
 C. Marketing of the product (Correct Answer)
 D. Management of the flow of finances related to a product or service
13) What does Supply Chain Management (SCM) encompass?

 A. Only the delivery of the product


 B. Only the procurement of raw materials
 C. The entire process from procurement of raw materials to the delivery
of the product (Correct Answer)
 D. Only the management of finances

14) Which of the following best describes the goal of Supply Chain Management
(SCM)?

 A. To manage the manufacturing process of goods


 B. To oversee the financial transactions in a company
 C. To manage the flow of goods, information, and finances from
procurement to delivery (Correct Answer)
 D. To handle customer service operations

15) In Supply Chain Management (SCM), what is included in the flow of goods?

 A. Only finished products


 B. Raw materials, semi-finished products, and finished products (Correct
Answer)
 C. Only raw materials
 D. Only financial data

16) What is the primary focus of Supply Chain Management (SCM)?

 A. Handling only the financial aspects of a supply chain


 B. Handling and optimizing all the complicated aspects of a supply chain
(Correct Answer)
 C. Focusing only on the transportation of goods
 D. Managing only the end consumer's experience

17) Supply Chain Management (SCM) involves the coordination and oversight
of which activities?

 A. Only marketing and sales activities


 B. Only financial management
 C. Production, distribution, and delivery of goods or services (Correct
Answer)
 D. Only customer service operations

18) Who are responsible for ensuring that customers can obtain products and
that manufacturers can obtain necessary materials?

 A. Marketing managers
 B. Supply chain managers (Correct Answer)
 C. Financial analysts
 D. Customer service representatives
19) What are the two key responsibilities of supply chain managers?

 A. Ensuring product quality and customer satisfaction


 B. Overseeing marketing strategies and customer engagement
 C. Ensuring that customers can obtain products and that manufacturers
can obtain the materials they need (Correct Answer)
 D. Managing company finances and investments

20) Which of the following best describes the role of Supply Chain Management
(SCM)?

 A. Marketing products to customers


 B. Coordinating and overseeing the activities involved in the production,
distribution, and delivery of goods or services (Correct Answer)
 C. Managing only the financial transactions within a company
 D. Designing and developing new products

21) What does Supply Chain Management (SCM) primarily involve?

 A. The coordination of the flow of goods and services from raw materials
to final customers
 B. The design and development of new products
 C. The marketing and sales of products to customers
 D. The financial management of a company

22) Supply Chain Management (SCM) can best be described as:

 A. The process of manufacturing goods


 B. The art of coordination
 C. The management of customer relationships
 D. The strategy for pricing products

23) In Supply Chain Management (SCM), what is the final destination of goods
and services?

 A. The manufacturing plant


 B. The final customers
 C. The warehouse
 D. The retail store

24) What is a key component of Supply Chain Management (SCM)?

 A. Advertising and promotion of products


 B. Hiring and training employees
 C. Managing the flow of goods and services
 D. Developing new financial strategies
25) Which of the following best defines the scope of Supply Chain Management
(SCM)?

 A. It is limited to the procurement of raw materials.


 B. It only involves customer service operations.
 C. It spans from raw materials to final customers.
 D. It focuses solely on product development.

26) How is Supply Chain Management (SCM) defined?

 A. Management of only the production of products


 B. Management of only the distribution of products
 C. Management of the flow of products and services from origin to
consumption
 D. Management of only inventory storage

27) What does Supply Chain Management (SCM) include?

 A. Only the production of raw materials


 B. Only the distribution of finished products
 C. Movement and storage of raw materials, work in progress, inventory,
and finished goods
 D. Only the sale of products to customers

28) What is the main objective of Supply Chain Management (SCM)?

 A. To handle only customer service inquiries


 B. To monitor and relate production, distribution, and shipment of
products and services
 C. To focus solely on product development
 D. To manage financial transactions

29) Which of the following aspects is not included in Supply Chain Management
(SCM)?

 A. Movement of raw materials


 B. Storage of inventory
 C. Production of products
 D. Customer feedback collection

30) Supply Chain Management (SCM) spans from:

 A. Customer feedback to product development


 B. Financial planning to marketing strategies
 C. Origin of products to product’s consumption
 D. Retail sales to customer service
31) What does a supply chain include?

 A) Only manufacturers and suppliers


 B) Manufacturers, suppliers, transporters, warehouses, retailers, and
customers (Correct)
 C) Only retailers and customers
 D) Only transporters and warehouses

32) Which of the following is NOT a stage in the supply chain?

 A) Transporters
 B) Warehouses
 C) Marketing teams (Correct)
 D) Retailers

33) The supply chain is best described as:

 A) A linear process only involving manufacturers and suppliers


 B) An alignment of firms that brings products or services to market,
including various stages (Correct)
 C) A network of firms that only deals with customer requests
 D) A process that includes only the retailers and customers

34) Which of the following is included in a supply chain?

 A) Only the manufacturer


 B) Only the customer
 C) Transporters, warehouses, and retailers (Correct)
 D) None of the above

35) What is the primary purpose of a supply chain?

 A) To handle customer complaints


 B) To align all stages involved in fulfilling a customer request (Correct)
 C) To manage only the manufacturing process
 D) To oversee financial transactions

36) What is a supply chain?

 A) A network of facilities and distribution options that performs the


functions of procurement, transformation, and distribution (Correct)
 B) Only a network of distribution options
 C) A process that only involves procurement of materials
 D) A single facility that handles all functions from procurement to distribution
37) What does supply chain management involve?

 A) Coordination of marketing and sales only


 B) Coordination of production, inventory, location, and transportation
among participants in a supply chain (Correct)
 C) Only the management of inventory
 D) Solely the distribution of finished products

38) Which of the following is a function of a supply chain?

 A) Only procurement of materials


 B) Only transformation of materials into finished products
 C) Only distribution of finished products
 D) Procurement, transformation, and distribution of products (Correct)

39) What is the goal of supply chain management?

 A) To manage financial transactions


 B) To achieve the best mix of responsiveness and efficiency for the market
being served (Correct)
 C) To coordinate only the procurement process
 D) To oversee the production process exclusively

40) Which elements are coordinated in supply chain management?

 A) Production only
 B) Inventory only
 C) Location and transportation only
 D) Production, inventory, location, and transportation (Correct)

41) In the era of globalization, what role does Supply Chain Management (SCM)
play?

 A) It is irrelevant to trade and technology.


 B) It plays a minor role in providing quality products.
 C) It plays a very important role in helping companies compete to provide
the best quality products and satisfy customer demands. (Correct)
 D) It only focuses on internal company operations.

42) How are trade and technology connected in the context of globalization?

 A) They are unrelated to each other.


 B) Trade and technology are connected through local market strategies.
 C) Trade and technology are connected as companies use them to
compete globally and improve their supply chains. (Correct)
 D) Technology only affects trade within a single country.
43) Why is SCM crucial for companies in a globalized market?

 A) Because it only handles procurement.


 B) Because it focuses solely on financial transactions.
 C) Because it manages customer service and complaints.
 D) Because it helps companies compete globally by improving the quality
of products and meeting customer demands. (Correct)

44) What is the primary focus of SCM in a competitive global market?

 A) To maintain traditional methods of trade


 B) To restrict the use of technology in trade
 C) To ignore customer demands
 D) To provide the best quality products and satisfy customer demands
through effective coordination and management (Correct)

45) Which of the following best describes the role of SCM in the context of
globalization?

 A) SCM focuses only on reducing production costs.


 B) SCM is limited to managing inventory.
 C) SCM is essential for integrating trade and technology to enhance
global competitiveness and meet customer expectations. (Correct)
 D) SCM is primarily concerned with local market regulations.

46) Which of the following is a key benefit of supply chain management?

 A) Increases marketing expenses


 B) Creates inefficiencies in delivery mechanisms
 C) Develops better customer relationships and service (Correct)
 D) Reduces product quality

47) How does supply chain management impact delivery mechanisms?

 A) It increases delivery delays.


 B) It makes delivery mechanisms more complex.
 C) It creates better delivery mechanisms for products and services in
demand with minimum delay (Correct)
 D) It eliminates the need for delivery services.

48) What does supply chain management do to warehouse and transportation


costs?

 A) Increases both costs.


 B) Has no effect on costs.
 C) Minimizes warehouse and transportation costs (Correct)
 D) Only increases warehouse costs.

49) How does supply chain management assist in shipping products?


 A) By shipping products to incorrect locations
 B) By delaying shipping times
 C) By achieving shipping of the right products to the right place at the
right time (Correct)
 D) By ignoring shipping schedules

50) Which benefit of supply chain management supports just-in-time stock


models?

 A) Minimizes marketing costs


 B) Enhances inventory management, supporting the successful execution
of just-in-time stock models (Correct)
 C) Increases warehouse space
 D) Reduces product quality

51) How does supply chain management assist companies in minimizing waste
and costs?

 A) By increasing waste and costs


 B) By focusing solely on production efficiency
 C) By minimizing waste, driving out costs, and achieving efficiencies
throughout the supply chain process (Correct)
 D) By only reducing direct costs

52) What is a key goal of supply chain management?

 A) To increase the number of supply chain partners


 B) To maximize resource productivity, construct standardized processes,
remove duplicate efforts, and minimize inventory levels (Correct)
 C) To reduce the number of distribution centers
 D) To delay inventory replenishment

53) Why is the minimization of supply chain expenses important?

 A) It is not essential for supply chain management.


 B) It only affects marketing costs.
 C) It is very essential to optimize the overall efficiency and profitability of
the supply chain (Correct)
 D) It only impacts production costs.

54) What should supply chain managers focus on beyond cost efficiency?

 A) Solely on reducing costs


 B) On value creation for their customers (Correct)
 C) On increasing inventory levels
 D) On minimizing product variety
55) How can supply chain managers best satisfy customers?

 A) By meeting basic product availability


 B) By reducing product variety
 C) By exceeding the customers’ expectations on a regular basis (Correct)
 D) By focusing only on cost reduction

56) What do increased client expectations require from the supply chain?

 A) Higher product costs and reduced availability


 B) Lower product variety and slower fulfillment
 C) Higher product variety, off-season availability of inventory, and rapid
fulfillment at a cost comparable to in-store offerings (Correct)
 D) Longer delivery times and higher costs

LECTURE # 2

1. What is the primary purpose of supply chain management for companies?


A) To increase the cost of operations
B) To ensure that the supply chain is efficient and cost-effective
C) To transform final products into raw materials
D) To eliminate all supply chain processes
2. A supply chain is the collection of steps that a company takes to:
A) Market its final product
B) Transform raw materials into a final product
C) Manage customer relations
D) Improve sales efficiency
3. How many basic components of supply chain management are discussed in
the given paragraph?
A) Four
B) Five
C) Six
D) Seven
4. Which of the following is NOT mentioned as a part of supply chain
management in the paragraph?
A) Transforming raw materials
B) Managing cost-effectiveness
C) Creating marketing strategies
D) Ensuring efficiency
5. What does the Planning stage of supply chain management primarily focus
on?
A) Managing customer relationships
B) Optimizing the production process
C) Demand and supply planning to coordinate goods and services
D) Sourcing raw materials for production
6. Which of the following is NOT a risk that supply chain planning prepares the
organization to deal with?
A) Geopolitical risks
B) Customer dissatisfaction
C) Environmental changes
D) Economic instability
7. What is the main focus during the sourcing stage of supply chain
management?
A) Designing and producing products
B) Building strong relationships with suppliers
C) Handling customer returns
D) Managing logistics for product delivery
8. Which activity is part of the sourcing process?
A) Packaging and testing products
B) Contract negotiation with suppliers
C) Handling customer complaints
D) Delivering finished goods to customers
9. During which stage of the supply chain management process are products
produced, tested, and packaged for delivery?
A) Sourcing
B) Manufacturing
C) Delivery
D) Return
10. Which of the following is NOT a part of the delivery/logistics stage?
A) Transporting finished products
B) Storing products with third-party providers
C) Handling defective goods returns
D) Delivering products to customers
11. In the return stage of supply chain management, companies need to be
prepared to:
A) Assess supplier performance
B) Handle customer queries and defective goods
C) Design and package products
D) Conduct cost analysis for raw materials
12. Which of the following is NOT one of the three types of flows in supply chain
management?
A) Material flow
B) Information flow
C) Energy flow
D) Money flow
13. What is the main challenge faced in ensuring smooth material flow in a
supply chain?
A) Increasing customer demand
B) Minimizing the cash cycle by moving inventory quickly
C) Maximizing production output
D) Negotiating with suppliers for better pricing
14. Information flow in supply chain management includes which of the
following?
A) Engineering change requests and purchase orders
B) Shipment of raw materials to producers
C) Packaging and delivering finished products
D) Repairs of defective goods
15. What is the main factor affecting money flow in supply chain management?
A) Transportation costs
B) Payment of invoices after verifying order correctness
C) Warehousing charges
D) Demand forecast accuracy
16. Which phase of decision-making in supply chain management involves long-
term strategic decisions such as selecting factory locations and deciding on
warehouse placement?
A) Supply Chain Strategy
B) Supply Chain Planning
C) Supply Chain Operations
D) Supply Chain Distribution
17. In the Supply Chain Operations phase, which of the following is an example
of a decision made to minimize uncertainty and optimize performance?
A) Deciding factory locations
B) Conducting market research on competitors
C) Responding to customer orders and ensuring timely delivery
D) Planning long-term inventory levels
18. Which of the following is considered a quantitative measure of supply chain
performance?
A) Customer satisfaction
B) Product quality
C) Order-to-delivery lead time
D) Supplier relationships
19. Which of the following best describes reverse logistics in the supply chain?
A) Shipment of raw materials from supplier to factory
B) Return of goods from customers to the retailer
C) Delivering finished products to customers
D) Inventory management in a warehouse
20. Which element is NOT a pillar of returns management?
A) Speed
B) Visibility
C) Flexibility
D) Control
21. The make vs. buy decision in supply chain management refers to:
A) Choosing between purchasing raw materials or producing them internally
B) Deciding whether to source raw materials domestically or internationally
C) Determining whether to buy finished goods or produce them
D) Selecting the most cost-effective supplier for raw materials
LECTURE # 3

1. What does procurement in the manufacturing sector primarily refer to?


A) The internal production of raw materials
B) The purchase of raw materials from an external source
C) The recycling of used raw materials
D) The distribution of finished goods
2. Which of the following is NOT a factor involved in raw material selection?
A) Cost
B) Delivery time
C) Production location
D) Quality
3. Which of the following is NOT a step in the material procurement process?
A) Negotiating contracts
B) Identifying and selecting vendors
C) Designing the finished product
D) Ordering and paying for materials
4. Which of the following strategies can businesses adopt to ensure a smooth
supply chain management of raw materials?
A) Using long lead times
B) Building a local distribution network
C) Sourcing materials internationally
D) Increasing product prices
5. Which material classification includes steel, aluminum, and titanium?
A) Polymeric materials
B) Metallic materials
C) Composite materials
D) Ceramic materials
6. What does a Bill of Materials (BOM) include?
A) A list of finished products ready for sale
B) A comprehensive inventory of raw materials, parts, and components
needed for production
C) A detailed list of customer orders
D) A plan for managing returned goods
7. Which of the following is a primary function of Material Requirements
Planning (MRP)?
A) Determining labor costs
B) Minimizing raw material lead times
C) Scheduling production and purchasing of materials
D) Designing the product manufacturing process
8. Which step in the procurement process involves cross-verifying raw materials
with different teams and approving the purchase?
A) Need analysis
B) Purchase requisition
C) Shipping of raw materials
D) Invoice approval and payment
9. Which procurement strategy refers to developing a list of vendors and
suppliers close to the manufacturing site?
A) Sourcing locally
B) Outsourcing internationally
C) Inventory stockpiling
D) Building a network of contract manufacturers
10. What is the primary benefit of using Material Requirements Planning
(MRP)?
A) Increasing manufacturing costs
B) Reducing customer lead times
C) Maximizing inventory levels
D) Decreasing product quality

LECTURE # 4

1. What is the main objective of the production process?


A) Maximizing waste production
B) Meeting market demands and substituting products
C) Reducing the variety of products
D) Limiting production to a single product
2. Which of the following refers to the steps followed to convert an input into an
output?
A) Distribution process
B) Procurement process
C) Production process
D) Marketing process
3. Which of the following is NOT a type of production process?
A) Mass production
B) Batch production
C) Random production
D) Job production
4. Mass production is characterized by:
A) Creating one unique product at a time
B) Manufacturing large quantities of standardized products
C) Producing goods only when there is immediate demand
D) Using flexible manufacturing systems to change production
5. Batch production refers to a method where:
A) One product is produced at a time
B) Different groups of identical products are produced simultaneously
C) Manufacturing is done in continuous flow
D) Production is carried out only upon customer request
6. Which of the following is a feature of job production?
A) Producing large quantities in an assembly line
B) Making one customized product to meet specific customer requirements
C) Using automation to minimize human intervention
D) Producing goods in batches to reduce costs
7. What is the primary advantage of Just-in-Time (JIT) production?
A) Storing surplus materials to avoid shortages
B) Creating products in large quantities before they are needed
C) Reducing inventory costs by producing items only when needed
D) Using highly flexible manufacturing systems to adapt to changes
8. A Flexible Manufacturing System (FMS) is designed to:
A) Produce large quantities of identical products
B) Adapt easily to changes in product type and quantity
C) Produce goods continuously without change
D) Minimize the need for machine adjustments

LECTURE # 5

1. What is the main goal of material handling?


 a) Increase product cost
 b) Minimize handling costs while ensuring safety and efficiency
 c) Increase the time spent on material transport
 d) Increase the number of employees
2. Which of the following is NOT a category of material handling
equipment?
 a) Material transport equipment
 b) Material processing equipment
 c) Material storage equipment
 d) Unitizing equipment
3. In logistics, what is the purpose of external logistics?
 a) Movement of materials inside a facility
 b) Procurement, movement, and storage of goods outside the facility
 c) Ensuring safety of the materials during internal transfers
 d) Supervising material handling systems
4. Which of the following is a characteristic of process layout in a facility?
 a) Products move in a straight line with sequential operations
 b) Products are moved along a conveyor belt
 c) Materials travel a long, twisted path for various operations
 d) Large fixed products remain in place while workers move
5. What is the main purpose of a Unit Load in material handling?
 a) It reduces the amount of trips needed to move materials
 b) It increases the number of manual tasks
 c) It allows materials to be handled one by one
 d) It damages products during transport
6. Which of the following technologies is used for guiding Automated
Guided Vehicles (AGVs)?
 a) GPS
 b) Magnetic guide tape
 c) Human-operated joysticks
 d) External cameras
7. What is a common application for Driverless Automated Guided Trains?
 a) Short-distance material movement within small factories
 b) Movement of heavy payloads over long distances in warehouses
 c) Transporting fragile products across short distances
 d) Loading trucks manually at shipping docks
8. Which material transport system is typically used in product layouts for
moving parts between stations?
 a) Forklift trucks
 b) Cranes and hoists
 c) Conveyors
 d) AGVs
9. Which navigation system in AGVs relies on laser pulses to create a 360-
degree map of the environment?
 a) Wired navigation
 b) Magnetic guide tape
 c) LiDAR
 d) Vision guidance
10. What is the safety feature in AGVs that stops the vehicle when contact is
made with an object?
 a) Magnetic sensors
 b) Emergency bumper
 c) Forward velocity control
 d) Zone control

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