1. analysis relates to what processes, activities, and decisions actually create costs in your supply chain.

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1 1. analysis relates to what processes, activities, and decisions actually create costs in your supply chain. A. Cost driver B. Value proposition C. Cost reduction D. Target costing s 2. In the 1980s, Toyota and Honda out competed American carmakers because they relied on suppliers for approximately percent of a car s value. A. 30 B. 45 C. 60 D The has made it possible for other companies to eliminate intermediaries and sell directly to the end consumer. A. SCM B. Internet C. competition D. global sourcing 4. Value stream mapping is an application of process mapping, developed to apply principles to process improvement. A. management B. lean C. supply chain

2 D. cycle time 5. A supply chain is made up of a series of processes that involve an input, a, and an output. A. shipment B. supplier C. customer D. transformation 6. is a tool to chart how individual processes are currently being conducted and to help lay out new improved processes. A. Process mapping B. Pareto charting C. Supply chain design D. Design chain mapping 7. Identify from the following list a major strategic risk associated with outsourcing. A. Outsourcing landed cost is usually higher than in sourcing cost. B. The supplier is purchased by a competitor. C. The business loses sight of market trends. D. The cost of supplied material is passed on to the customer. 8. is the design of seamless value-added processes across organization boundaries to meet the real needs of the end customer. A. Operations B. Supply chain management

3 C. Process engineering D. Value charting 9. The impact of cost reduction on profits is much larger than the impact of increased A. innovation B. production C. information D. sales 10. considers how your organization competes and is an essential element of corporate strategy. A. Value proposition analysis B. Leadership C. A consultant D. A competitor 11. 3PL involves using a supplier to provide services. A. marketing B. design C. logistics D. contract manufacturing 12. The collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies, is called A. innovative constraint B. second-tier competency

4 C. corporate skill D. core competency 13. Integration of business economics and strategic planning has given rise to a new area of study called. A. Micro Economics C. Corporate Economics B. Macro Economics D. Managerial Economics Ans. 1 to a 2. d 3. b 4. b 5. d 6. a 7. b 8. b 9. d 10. a 11. c 12. d 13. c 14. Which of the following statements is true?

5 a. Logistics and supply chain are same. b. Supply chain is a subset of logistics. c. Transportation and logistics are same. d. Physical distribution and logistics are the same. e. Logistics is a subset of supply chain. 15. 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 nonavailability of the soap? a. The logistics service provider b. The suppliers of raw materials and components c. The departmental store d. The distributor e. Hindustan Unilever Ltd 16. Which of the following sequence is true? a. Sourcing Conversion into finished goods Inbound logistics Outbound logistics Retailing b. Sourcing Outbound logistics Conversion into finished goods Inbound logistics Retailing c. Inbound logistics Sourcing Conversion into finished goods Outbound logistics Retailing d. Sourcing Inbound logistics Outbound logistics Conversion into finished goods Retailing e. Sourcing Inbound logistics Conversion into finished goods Outbound logistics Retailing 17. 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

6 18. 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 19. Which of the following statements is true? a. Dell supply chain believed in medium-term relationship with the suppliers with loosely held supplier network. b. Dell supply chain is both highly efficient as well as highly responsive. c. Toyota supply chain believed in medium-term relationship with the suppliers with loosely held supplier network. d. Ford supply chain is both highly efficient as well as highly responsive. e. Dell supply chain propagated the concept of long-term relationship with the suppliers. 20. In today s supply chain, there has been a shift in the power structure in a chain towards a. Raw-material suppliers b. Manufacturers c. Distributors d. Retailers e. Third-party logistics service providers 21. Which of the following statements is true regarding outsourcing? a. Higher level of outsourcing enables a firm to have better control on all outsourced activities. b. Higher level of outsourcing makes a firm more vulnerable to outside influences. c. Higher level of outsourcing enables a firm to outsource core activities to other competent players. d. Higher level of outsourcing enables a firm to outsource non-core activities to other competent players.

7 e. Higher level of outsourcing enables a firm to outsource non-core activities to other competent players and also enables the firm to have better control on all outsourced activities f. Higher level of outsourcing enables a firm to outsource non-core activities to other competent players, However, it makes the firm more vulnerable to outside influences 22. If the focus of a retailer is to achieve leadership in cost, then which of the following phenomenon will hold good? a. Customers will prefer a large variety of products and the retailer will also keep a large variety in the store in order to satisfy customer needs. b. Customers will prefer short lead time for their products and the retailer will keep higher amount of inventory in order to satisfy customer needs in time. c. Customers will like to have convenience and the retailers will also set up a number of stores at different locations in order to provide convenience to the customers. d. Customers will prefer a large variety of products but the retailer will not keep a large variety in the store in order to achieve economies of scale. e. Customers will prefer a large variety of products and the retailer will keep higher variety as also higher amount of inventory in order to satisfy customer needs. 23. 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. 24. Ford supply chain is characterized by a. Long-term relationship with the suppliers b. Loosely-held supplier networks c. Increased product variety

8 d. Individual customization e. Vertical integration 25. Toyota supply chain is characterized by a. Individual customization b. Vertical integration c. Long-term relationship with the suppliers d. Zero product variety e. Loosely-held supplier networks 26. Dell supply chain is characterized by a. Lean production systems b. Long-term relationship with the suppliers c. Zero product variety d. Individual customization e. Vertical integration 27. Which of the following statements is true? a. A 3PL company is a professional logistics service provider meeting the logistics requirements of an organization and can also integrate its resources, capability, and technology in order to provide comprehensive solution to its customers. b. A 4PL company is a professional logistics service provider meeting the logistics requirements of an organization and can also integrate its resources, capability, and technology in order to provide comprehensive solution to its customers. c. A 4PL company is a professional logistics service provider meeting only the logistics requirements of an organization. d. A 3PL company is a professional logistics service provider meeting only the logistics requirements of an organization. e. A 3PL is a logistics service provider meeting only the logistics requirements of an organization while 4PL is a logistics service provider meeting the logistics requirements of an organization and can also integrate its resources, capability and technology to provide comprehensive solution to its customers. 28. Which one of the following is not the supply challenge being faced by the Indian organizations?

9 a. Complex taxation structure b. Smaller pack sizes c. Complex distribution structure d. IT implementation e. Poor infrastructure Ans. 14 to a 15. c 16. d 17. a 18. a 19. e 20. b 21. d 22. c 23. e 24. c 25. b 26. e 27. e 28. c 29. A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user is called a: a. Marketing connection. b. Marketing logistics function. c. Channel transfer. d. Distribution channel.

10 30. All of the following functions would be key functions to help complete transactions in a marketing channel EXCEPT: a. Negotiation. b. Contact. c. Markup and markdown management. d. Matching. 31. Which of the following would be considered to be a key function in the marketing channel that would help others to fulfill the completed transactions? a. Matching. b. Financing. c. Promotion. d. Information. 32. Which of the following channel arrangements contain one or more intermediary levels? a. Door-to-door marketing model (used by Avon, Amway, or Tupperware). b. Telephone marketing channel. c. Indirect marketing channel. d. Direct marketing channel. 33. Jack Smith Ford lodged an official complaint with Ford Motor Company because other dealers in the trade area were stealing sales (according to Jack Smith), being too aggressive in their pricing and advertising, and were selling outside designated territories. Mr. Smith's complaint would be an example of which of the following types of conflict that can occur in or between distribution channels? a. Vertical conflict. b. Pyramidal conflict. c. Multi-layer conflict. d. Horizontal conflict. 34. Office furniture maker Herman Miller created conflict with its dealers when it opened an online store and began selling its products directly to consumers. What form of distribution channel conflict did Herman Miller create with its move into online marketing?

11 a. Horizontal conflict. b. Multi-layer conflict. c. Vertical conflict. d. Pyramidal conflict. 35. Which of the following forms of vertical marketing systems has channel leadership established through common ownership? a. Administered VMS. b. Corporate VMS. c. Contractual VMS. d. Hybrid channel system. 36. ProHome Hardware, Co-op Grocery Stores, and Pharmacare Drug Stores would all be examples of which of the following forms of contractual VMS. a. Manufacturer-sponsored retailer franchise system. b. Wholesaler-sponsored voluntary chains. c. Franchise organizations. d. Retailer cooperatives. 37. If Burger King, A&W Root Beer, and Pizza Hut place operations in Shell, Irving, or Esso gasoline stations, the organizations are all participating in which of the following forms of marketing systems? a. Vertical marketing systems. b. Horizontal marketing systems. c. Administered vertical marketing systems. d. Franchise marketing systems. 38. Air Canada has decided that one way to expand sales is to sell directly to customers and bypass travel agencies or other forms of retailers that at one time were the traditional distribution partners for this airline giant. Air Canada is among a growing number of companies that are pursuing policies of that are radically changing distribution channel design and arrangements. a. radical channel design b. disintermediation c. dual-distribution d. predatory pricing

12 39. is a process of giving a limited number of dealers the exclusive right to distribute the company's products in their territories. a. Exclusive distribution b. Intensive distribution c. Marginal distribution d. Selective distribution 40. Which of the following legislative acts considered and evaluated the legality of exclusive dealing arrangements in Canada? a. The Competition Act. b. Sherman Anti-trust Act. c. Federal Trade Commission Act. d. Robinson-Patman Act. 41. Marketing logistics addresses many problems and flows of goods in a marketing channel. If a marketer were to move broken, unwanted, or excess products returned by consumers or resellers to their point of origin, would be used. a. outbound distribution b. inbound distribution c. reverse distribution d. parallel distribution 42. All of the following would be among the major logistics functions within a logistics system EXCEPT: a. Transportation. b. Sales promotion. c. Order processing. d. Warehousing. 43. Which of the following transportation forms carries 25 percent of total cargo shipped in Canada, and accounts for the largest portion of transportation within cities, rather than between cities? a. Water carriers. b. Railroads.

13 c. Trucks. d. Pipelines. Ans. 29 to d 30. d 31. c 32. b 33. c 34. c 35. a 36. b 37. b 38. d 39. c 40. c 41. c 42. a 43. c 44. Which of the following is not one of the three main links in the supply chain? A) Which of the following is not one of the three main links in the supply chain? B) Transformation of materials into semifinished and finished products the organization's own production processes C) Materials flow from suppliers and their "downstream" suppliers at all levels D) None of the above

14 45. Which of the following is a factor driving supply chain management? A) Visibility B) Speed C) Competition D) All of the above 46. Which of the following is a principle of supply chain management? A) Customize the logistics network and focus intensively on the service requirements B) Listen to signals of market demand and plan accordingly C) Segment customers by service needs and then tailor services to those particular segments D) All of the above 47. Which of the following is not an SCM industry best practice? A) Be future oriented B) Make the sale to suppliers C) Listen to signals of market demand and plan accordingly D) Wean employees of traditional business practices 48. What enables an organization to react more quickly to resolve supply chain issues? A) Collaborative demand planning B) Selling chain management C) Collaborative engineering D) Supply chain event management

15 49. What describes all of the activities managers do to help companies create goods? A) Operations Management B) Productions Management C) Transformation process D) Production 50. When does OM primarily increase value-added? A) During the input process B) During the transformation process C) During the output process D) None of the above Ans. 44 to c 45. d 46. d 47. c 48. d 49. b 50. b 51. An appropriate strategy to achieve timely, accurate, paperless information flow is: a. revision of organization processes supported by information systems. b. efficient store assortments. c. efficient replacement. d. integrate this activity into all supply chain planning. e. none of the above.

16 52. An appropriate strategy to maximize efficiency of promotions is: a. efficient replacement. b. efficient store assortments.. c. integrate this activity into all supply chain planning. d. revision of organization processes supported by information systems. e. none of the above. 53. An appropriate strategy to optimize for time and cost in the ordering process is: a. integrate this activity into all supply chain planning. b. revision of organization processes supported by information systems. c. efficient store assortments. d. efficient replacement. e. none of the above. 54. An appropriate strategy to optimize the productivity of retail space and inventory is: a. integrate this activity into all supply chain planning. b. efficient store assortments. c. revision of organization processes supported by information systems. d. efficient replacement. e. none of the above. 55. The upstream supply chain is: a. exclusively inside an organization. b. involved with procurement of material from suppliers. c. the distribution of products or delivery of services to customers. d. both the first and third answer above. e. none of the above. 56. The downstream supply chain is: a. exclusively inside an organization.

17 b. involved with procurement of material from suppliers. c. the distribution of products or delivery of services to customers. d. both the first and third answer above. e. none of the above. 57. The correct sequence of an organizations supply chain from a systems perspective is: a. transformation process, delivery to customers, acquisition of resources. b. transformation process, acquisition of resources, delivery to customers. c. acquisition of resources, transformation process, delivery to customers. d. delivery to customers, acquisition of resources, transformation process. e. none of the above. 58. offers the opportunity to buy direct from the supplier with reduced costs and shorter cycle. a. Disintermediation b. Reintermediation c. Countermediation d. Contramediation e. None of the above 59. IS can be used to reduce cycle time by: a. reduced cost through outsourcing. b. increased efficiency of individual processes. c. improved data integration between elements of the supply chain. d. reduced complexity of the supply chain. e. none of the above. 60. The typical aim of the push approach to supply chain management is: a. to reduce costs of distribution. b. to enhance product and service quality. c. to reduce costs of new product development. d. both the first and third answer above. e. none of the above.

18 Ans. 51 to c 52. c 53. d 54. c 55. b 56. c 57. c 58. b 59. d 60. d 61. With regard to the cost-based price model of negotiation strategy, which of the following is true? a. Prices float based on what the customer is willing to pay. b. Prices are based upon vendor costs. c. Prices are based in some way upon market standards agreed to by both vendor and purchaser. d. Potential vendors each submit quotations as to price, delivery, and so on. 62. The term vertical integration means to a. develop the ability to produce the specified good more efficiently. b. sell all products to every member of your customer chain simultaneously. c. develop the ability to produce products that complement or supplement the original product. d. produce goods or services previously purchased 63. Which of the following is a reason for making a component rather than buying it? a. obtain technical or managerial ability

19 b. inadequate capacity c. ensure alternate sources d. obtain desired quality 64. The advantage of many potential suppliers is their willingness to a. lower prices in the short term. b. participate in JIT. c. provide innovations. d. provide technical expertise. 65. Trucking a. is one of the least flexible transportation methods. b. is increasingly using computers to manage its operations. c. is the least used transport of manufacturing goods. d. is the fastest growing mode of shipping. 66. Airfreight a. represents only about 10% of the tonnage shipped in the United States. b. is the best way to transport natural gas. c. is the oldest means of freight transportation. d. is the fastest-growing mode of shipping. 67. The negotiation strategy that bases price on a published, auction, or index price is the a. cost-based price model. b. competitive bidding. c. supply-based price model. d. market-based price model. 68. The vendor selection stage that requires the development of evaluation criteria and the importance of each is a. vendor development. b. negotiations.

20 c. vendor evaluation. d. logistics. 69. A producer decides to implement new quality procedures and send their engineers and production personnel to a supplier's plant in order to train them on these new procedures. This activity takes place in the stage of vendor selection. a. evaluation b. training c. negotiations d. development 70. An unfilled order with a vendor that is a contract to purchase items but not an authorization to ship anything is known as a. a blanket order. b. channel assembly. c. an advance shipping notice. d. drop shipping. Ans. 61 to c 62. b 63. b 64. b 65. a 66. d 67. d 68. c 69. b 70. c

21 71. Supply chain management is essentially the optimisation of material flows and associated information flows involved with an organisation's operations. To manage these flows, e-business applications are essential to bring such benefits as noted in 'Internet retailing' in 2010 which reported that the average rates of return to a high street retailer could be as high as 10%. What did the same source report as the average rate of return for UK e-commerce sites? a. 18% b. 12% c. 22% d. 15% 72. Supply chain (SC) management involves the coordination of all supply activities of an organisation from its suppliers to the delivery of products to its customers. There are various features associated with this area of e-commerce and which refers to what is known as efficient consumer response (ECR): a. Creating and satisfying customer demand by optimizing strategies, promotions and product introductions b. The links between an organisation and all partners involved c. Transactions between an organisation and its customers and intermediaries d. None of the above 73. An organisation's supply chain can be viewed from a system's perspective that starts with the acquisition of resources which are then transformed into products or services. Simply, put the sequence is represented: a. Process - inputs - outputs b. Inputs - outputs - process c. Inputs - process - outputs d. Sourcing - input - process - outputs 74. Logistics is an integral part of supply chain management. Which explanation best represents outbound logistics? a. The management of material resources entering an organisation from its suppliers and other partners b. An emphasis on using the supply chain to deliver value to customers who are actively involved in product and service specification

22 c. A supply chain that emphasises distribution of a product to passive customers d. The management of resources supplied from an organisation to its customers and intermediaries 75. The 'value chain' idea is a concept that has been well established for the past three decades and it refers to considering key activities that an organization can conduct to add value for the customer. It traditionally distinguished between primary activities and support activities. Why is this concept regarded as outdated with the development of e-business? a. The support activities offer far more than just support b. Support activities have been subsumed under primary activities c. The concept still holds and does not need revision d. There is a clear distinction between primary and support activities Ans. 71 to d 72. b 73. c 74. c 75. b

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