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SUPPLY CHAIN MANAGEMENT MULTIPLE CHOICE QUESTIONS

These MCQs will also help for exam preparation like NET, SET, PhD entrance exams, UPSC
or MPSC exams. Let’s start practising Supply Chain Management Multiple Choice Questions
and score better in the examination.

The initial stage of the supply chain process is the _____________.

A. Sourcing Stage

B. Organizing Stage

C. Planning stage

D. Directing Stage

The term supply chain management was first coined by ______.

A. Frankel & Paulraj

B. Peter Drucker

C. Keith Oliver

D. Philip Kotler
In supply chain management, after planning, the next step involves ______________.

A. Developing

B. Building a strong relationship with suppliers

C. Sourcing

D. All of the above

In Supply Chain Management, ATP stands for _________.

A. Acquire Track & Perform

B. Available To Promise

C. Active Transport Protocol

D. Access To Point

The purpose of supply chain management is to_______.

A. increase the production level

B. manage and integrate supply and demand management

C. enhance the quality of a product and services

D. provide satisfaction to the customer


________is the primary activity of supply chain management.

A. Demand Management

B. Supply Planning i.e matching assets with demand

C. Analytics Workbench

D. All of the above

Another important purpose of supply chain management is to ___________.

A. make inventory readily available

B. delight customers and suppliers

C. create warehouses at various locations

D. to promote supply chain process

________is mainly deals with all activities associated with the flow and transformation and
information of goods from the stage of raw material to the end user i.e. consumption.

A. Production Line

B. Supply Chain

C. Inventory management

D. Marketing Channel
In supply chain management, Inspection, scrap and repair are examples of ________.

A. Societal Costs

B. External Costs

C. Costs of dissatisfaction

D. Internal Costs

____________ is a Japanese term meaning continuous improvement.

A. JIT

B. Kaizen

C. TQM

D. Taguchi Map

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
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)

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