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This set of Supply Chain Management Multiple Choice Questions & Answers (MCQs) focuses on Supply Chain Management Set 8

Q1 | Which of the following is true?
  • Value is always lower than price.
  • Value is what consumers are prepared to pay.
  • Cost is always lower than price.
  • Price is always lower than value
Q2 | Efficiency is defined by
  • Actual output divided by design capacity.
  • Capacity divided by utilization.
  • Effective capacity divided by actual output.
  • Actual output divided by effective capacity.
Q3 | As production systems move from projects to batch production to mass productionto continuous production
  • Processes become more flexible
  • Customer involvement with the process increases
  • Products become more standardized
  • Demand volumes decrease
Q4 | A big advantage of a process layout is
  • Its flexibility
  • Its low cost
  • The ability to employ low-skilled labour
  • Its high equipment utilization
Q5 | Which of the following is an implication of low variety?
  • Low unit cost
  • Flexibility needed
  • High complexity
  • Matching customers specific needs
Q6 | Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of ‘visibility’ (ie, customer contact) that they give to customers of the delivery process. Please match the following element with the most appropriate of the above dimensions. Low unit costs are most closely matched to:-
  • Variety
  • Variation
  • Volume
  • Visibility
Q7 | In a process flow chart transportation is depicted by _________?
  • A circle
  • A square
  • A triangle
  • An arrow
Q8 | In a process flow chart storage of information is depicted by ________?
  • A circle
  • A square
  • A triangle
  • An arrow
Q9 | A useful process improvement tool to search for the root cause of a problem is the___________ process?
  • 3 Whats
  • 4 Whos
  • 5 Whys
  • 6 Wheres
Q10 | A quality criterion which can be measured is called a ___________?
  • Quality variable
  • Quality component
  • Quality attribute
  • Quality characteristic
Q11 | Which of these is a quality variable for a motor car?
  • Comfort of the seating
  • Time to reach a given speed
  • Road holding ability
  • Headlights are working
Q12 | In a materials processing operation the design capacity is defined as_____________?
  • The Minimum Output Per Given Time.
  • The Aggregate Annual Output.
  • The Theoretical Maximum Output in A Given Time.
  • The Most Likely Output In A Given Time.
Q13 | Having a 'happy hour' in a pub or restaurant is an example of which type ofcapacity management?
  • A level capacity strategy
  • A demand management strategy
  • A chase demand strategy
  • A yield management strategy
Q14 | A sequence of business and information links is called a ________?
  • Logistics network
  • Distribution network
  • Sales channel
  • Supply chain
Q15 | Selecting suppliers and purchasing items is called ____?
  • Negotiation
  • Procurement
  • Contracting
  • Selection
Q16 | Question2 The sequence of a typical manufacturing supply chain is
  • Storage–Supplier–manufacturing–storage–distributor–retailer–customer
  • Supplier–Storage-manufacturing–storage–distributor–retailer–customer
  • Supplier–Storage-manufacturing– distributor–storage–retailer–customer
  • Supplier–Storage-manufacturing–storage– retailer–distributor–customer
Q17 | In the product life cycle, the emphasis in marketing mix during maturity stage is
  • Distribution.
  • Promotion.
  • Price.
  • Cost reduction.
Q18 | In the product life cycle, the emphasis in marketing mix during decline stage is
  • Distribution.
  • Promotion.
  • Price.
  • Cost reduction.
Q19 | The concept of logistics has been systematically divided into
  • 2 phases.
  • 3 phases.
  • 4 phases.
  • 5 phases.
Q20 | Michael porter explained the concept of
  • Motivation.
  • Cost advantage.
  • Competitive advantage.
  • Quest for quality.
Q21 | EDI stands for
  • Electronic Data Interface.
  • Electronic Data Interchange.
  • Electronic Distribution Intermediary.
  • Electronic Documentation Interchange.
Q22 | EOQ stands for
  • Electronic Ordered Quantity
  • Economic Order Quantity
  • Economic Order Quality
  • Electronic Obtained quantity
Q23 | Packaging performs two functions. ___________ and logistics.
  • Distribution.
  • Store keeping.
  • Material handling.
  • Marketing.
Q24 | Form utility is created by
  • Operation function.
  • Logistics function.
  • Procurement function.
  • Distribution function.
Q25 | Place utility is created by
  • Operation function.
  • Logistics function.
  • Procurement function.
  • Distribution function.