LOGISTICS AND SUPPLY CHAIN MANAGEMENT

– QUESTION BANK (INTERNALS)

UNIT – 1

MCQs
1. Logistic is the _____ of trade business.
(A) Building
(B) Backbone
(C) System
(D) Supply chain

2. Logistic management is a component of ______.

A Supply chain management of products
B Marketing management
C Purchasing management
D All the above
3. The term _____ has sometimes been used interchangeably with
logistics.
A Military Activities
B Procurement
C Supply chain management
D Logistics function

4. ____ may lead to bad logistics.

A Information
B Bullwhip
C Inventory
D Minimum order cycle

5. Outbound logistics deal with _____.

A Inspection of raw materials
B Customer pick-up
C Product quality
D All the above
6. Performance cycle structure includes _____.
A Inbound
B Production
C Outbound
D All the them

7. _____ is an example of green logistics.

A More efficient packing
B Route optimisation
C Load optimisation
D All the them

8. _____, production control and physical distribution are the three major
components of logistics.
A Supply chain management
B Material management
C Logistics management
D None of the above

9. In Porter’s value chain, which primary activity is involved with receipt of

goods storing, warehousing and preserving of raw materials and
inventory control.
A Marketing and sales
B Inbound logistics
C Outbound logistics
D All the above

10. Manufacturing support logistics commences as soon as a planned order

is converted into a _____ order.
A Material
B Process
C Production
D All the them

11.Following is a barrier to SCM

(A) Logistics
(B) Inventory
(C) Visibility / transparency
(D) None of these

12._____ is a loosely coupled, self organising network of firms that combine

their economic output to provide product and service offering to the
market.
(A) Extended enterprise
(B) Value chain
(C) Bullwhip
(D) Both (A) and (C)

13. The term bullwhip effect was coined by

(A) Philip Kotler
(B) Martin Christopher
(C) Proctor and Gamble
(D) Dell computers

14. Which of the following statement is true ?

(A) Physical distribution and logistics are synonymous
(B) Logistics is a component of supply chain
(C) Supply chain is a subset of logistics
(D) All the above

15. ____ is a stage or phase in integration of SCM.

(A) Baseline integration
(B) Functional integration
(C) Internal integration
(D) All the above
16.The process of developing long-term relationships with your suppliers
and retail customers is
(A)Channel integration
(B) Channel changing
(C) Channel partnership
(D) Channel management

17. The effect of bullwhip can be minimised by _____.

(A) Demand sensing software
(B) Forecasting software
(C) Supply chain visibility
(D) All the above

18. _____ is the cause of bullwhip effect.

(A)Over or under reacting to demand expectation
(B) Inadequate data on demand
(C) Sudden increase in demand
(D) All the above

19. Supply chain visibility is very useful to monitor goods ____.

(A) In stock
(B) Work in progress
(C) With supplier
(D) In transit

20. Supply chain visibility is used to ____.

(A)Reduce risk of theft and losses
(B) Locate shortage of goods in supply
(C) Improve logistics efficiency
(D) All the above
21.Lead time is the gap between placement of order and _____.
(A) Delivery of order
(B) Receipt of order
(C) Processing of order
(D) None of these

22. Perfect order includes right product, right quantity, right condition, right
place, right time, right price and ____.
(A) Right customer
(B) Right competitors
(C) Right path
(D) Right cost

23.____ is an important consideration for any business.

(A) Customer satisfaction
(B) Quality of goods
(C) Organizational objectives
(D) All the above

24.Order processing, invoicing, customer returns and claim handling are

examples of customer service _____.
(A) As a performance measure
(B) As a philosophy
(C) As an activity
(D) All of the above

25.Perfect orders delivered and on time deliveries measurement is

customer service level
(A) As a performance measure
(B) As a philosophy
(C) As an activity
(D) All of the above

26.Commitment of the company is viewed as customer service

(A) As a performance measure
(B) As a philosophy
(C) As an activity
(D) All of the above

27. Following is not pre-transaction element of a customer service.

(A) Written statement on customer service policy
(B) System flexibility in case of unforeseen events
(C) Establishing organisation structure to facilitate internal and external
communication of policies, performance and corrective actions
(D) Product Availability

28.Following is not during transaction element of a customer service.

(A) Product Availability
(B) Correct order status information
(C) Installation/ warrantee/ repairs/ service parts availability
(D) Consistency in order cycle

29. Following is not post-transaction element of a customer service.

(A) Product Availability
(B)Product tracing for withdrawal in case of some quality problems in
supplied products
(C) Attending customer complaints/ claims/ accepting returned goods
from customer (reverse logistics)
(D) Product loaning during service/ repairs to avoid inconvenience to
customer

30. Activity, performance and philosophy level decides the firm’s ____ level
in customer service.
(A) Engagement
(B) Involvement
(C) Assessment
(D) Performance

31.The first level of customer service covers ____ of product.

(A) Core product
(B) Actual product
(C) Augmented product
(D) All the above

32.Augmented product is _____ part of the product.

(A) Support service
(B) Non-physical
(C) Value added service
(D) All the above

33.Customer retention strategy is based on ______.

(A) Customer centric strategy
(B) Relationship marketing strategy
(C) Customer relationship management
(D) All the above

34.A good customer service is essential to ______.

(A) Retain existing customers
(B) Attract prospective customers
(C) Renew contacts with old customers
(D) All the above
35.In global market, _____ is the only distinguishing factor between
competing firm.
(A) Name of the company
(B) Product quality
(C) Customer Service
(D) Product price

36. Demand forecasting techniques involve _____.

(A) FSN analysis
(B) VED analysis
(C) ABC analysis
(D) None of these

37. The following is not qualitative method of demand forecasting.

(A) Jury of execution opinion
(B) Time series
(C) Customer survey method
(D) Assessment by sales personnel

38. The following is not qualitative method of demand forecasting.

(A) Exponential method
(B) Delphi method
(C) Simple moving average
(D) Casual method

39. Demand forecasting technique can be applied to

(A) Inventory control
(B) Investment policy
(C) Economic policy
(D) All the above

40. The following is not time series techniques of forecasting.

(A) Regression Analysis
(B) Simple moving average method
(C) Weighted moving average method
(D) Exponential smoothing method
UNIT – 2

MCQs:
1. Which of the following is the cheapest mode of transport?
(A) Road
(B) Rail
(C) Air
(D) Water

2. The first parties influences the transportation transactions are

(A) Sender, receiver, mover, government and public
(B) Shipper, receiver, carrier, government and public
(C) Consignor, consignee, carrier, government and public
(D) Consignor, receiver, carrier, government and public

3. The fastest and most costly mode of transport.

(A) Air transport
(B) Water transport
(C) Ropeways
(D) Railways

4. A kind of transportation where no empty wagons or containers are

brought back.
(A) Rail
(B) Water transport
(C) Pipeline
(D)Water

5. Inter-modal transportation which combines air and road

(A) Fishy back
(B) Birdy back
(C) Land bridge
(D) Piggy back

6. The following is not inter-modal transportation.

(A) Fishy back
(B) Birdy back
(C) Pipeline
(D) Piggy back

7. Following is not type of piggy-back.

(A) TOFC
(B) TTFC
(C) COFC
(D) LASH

8. Combining several small shipments into one large shipment is termed

as ________.
(A) Sorting
(B) Assortment
(C) Consolidation
(D) Mixing

9. ______ is the storage place where goods are stored until they are
sold.
(A) Warehousing
(B)Transportation
(C) Labelling
(D) None of above

10. The following is not component of a warehouse.

(A) Space
(B) Equipment
(C) Location
(D) People

11. The following is not function of a warehouse.

(A) Purchasing goods
(B) Receiving goods
(C) Identifying goods
(D) Sorting and storing goods

12. The correct sequence of warehouse operation cycle is

(A) Pick, receive, store and ship
(B) Pick, store, receive and ship
(C) Receive, pick, store and ship
(D) Receive, store, pick and ship

13. The following is the disadvantage of a private warehouse.

(A) Flexibility to design to specifications
(B) Lack of geographical flexibility
(C) Housing of other offices
(D) Greater direct control on warehousing activities

14. These warehouses are licensed by the government to stored goods

prior to payment of taxes or duties. They exert very tight control over
all movement in and out of the facility since government documents
must be filed with each move.
(A) Export and Import Warehouses
(B) Distribution Warehouses
(C) Special Commodity Warehouses
(D) Bonded Warehouses

15. AS/RS system is used for______.

(A) Efficient storing
(B) Retrieve quickly
(C) Save floor space
(D) All the above

16. AS/RS is a comprehensive concept and for storage and retrieval

purpose it uses _____.
(A) Unit load AS/RS
(B) Mini load AS/RS
(C) Carousals (like moving conveyors)
(D) All the above

17. __________is an example of magnetic swipe card.

(A) Driving license
(B) Debit and credit card
(C) ID card of employees
(D) All the above
18. RFID stands for _____.
(A) Radio Frequency identification
(B) Radio Frequency Impact
(C) Rapid Frequency identification
(D) All the above

19. RFID provides added value to______.

(A) Customer service
(B) Promotion mix
(C) Competitive advantage
(D) All the above

20. Barcode is a label having______.

(A) Unique bars
(B) Space pattern
(C) Alphanumeric characters
(D) All the above

21. Barcodes are used for______.

(A) Automatic data entry
(B) Read and enter data
(C) Tracking and transmitting data
(D) All the above

22. Walkie-Stacker are very suitable for

(A) Indoor use in factories
(B) In store room and small warehouses
(C) To carry weight upto 5 tonnes
(D) All the above

23. Automated Guided Vehicles are used for

(A) Order picking
(B) Assembling
(C) Loading pallets
(D) All the above
24. Bridge cranes move in______.
(A) Up and down
(B) Backward and forward
(C) Side by side
(D) All the above

25. Corrugated fibreboard used for packaging is commonly known as

(A) Corrosive board
(B)Cardboard
(C) Case board
(D) Non-corrosive board

26. The following is not related to unitisation.

(A) Containerisations
(B) RO-RO
(C) Palletisation
(D) Water transport

27. Labelling packaging are associated with

(A) Price mix
(B) Product mix
(C) Place mix
(D) Promotion mix

28. To achieve the marketing objectives for the brand and satisfy the
desires of consumers, the _________ and functional components of
packaging must be chosen correctly.
(A) Packaging
(B)Logo
(C) Aesthetics
(D) Trademark

29. Which of the following is the leak-proof packaging that provides

additional protection for the primary container ?
(A) Primary packaging
(B) Secondary packaging
(C) Tertiary packaging
(D) Decorative

30. Gift baskets are the example of which one of the following types of
packaging?
(A) Decorative
(B) Secondary
(C) Shipping
(D) Primary
31. The label on a pack of frozen peas says ‘packed within an hour of
picking’. These word are used_____.
(A) To promote the product
(B) To Satisfy legal requirements
(C) To provide information
(D) To fulfil ethical requirements

32. Packaging used for the ice-creams is an example of

(A) Decorative packaging
(B) Transport packaging
(C) Secondary packaging
(D) Primary packaging

33. Logistical packaging ensures effective control over

(A)Material handling cost
(B) Transportation cost
(C)Warehousing cost
(D) Al the above
34. Containerisation is a system of intermodal freight transportation
using______________

(A) Utilisation
(B) Containers
(C) Palletisation
(D) Intermodal containers

35. Palletisation is common form of containerisation

(A) Containerisation
(B) Computerisation
(C) Unitisation
(D) None of the above

36. Metals are used in packaging because of ________.

(A) Recyclable
(B) Heat resistant
(C) Excellent gas barrier
(D) All the above

37. _____is commonly used for primary and secondary packaging

(A) Natural material
(B) Paper and paperboard
(C) Wood
(D) All the above
38. The packaging functions include_________.
(A) Marketing strategy
(B) Distribution function
(C) Protection and promotion of product
(D) None of the above

39. Utility and ease of handling are the important considerations

in_____________ packaging.
(A) Primary
(B) Secondary
(C) Tertiary
(D) All the above

Unit3
1) system, the supplier takes over the responsibility of managing
retail inventory
() OR
(c) AR
(b) CR
(d) All the above

2. JIT is an operating philosophy of managing -

(a) Production and inventory
(b) Production and purchasing
(c) Production and distribution
(d) All the above

3. Distribution requirement planning is used to find out.

(a) which goods will be required
(d) all the above
(b) where (i.e. location) it will be required
(c) at what time it will be required

4. Materials requirement planning is a software based system used for

(a) Production planning
(b) Production scheduling
() Inventory control
(d) All the above

5. Manufacturing Resource Planning (MRP-II) covers

(a) Activities of Materials Requirement Planning
(b) Marketing + Finance + Accounting
(c) Engineering + Human Resources Planning
(d) All the above

6. ABC analysis is based on ____ criterion.

(a) seasonality
(b) unit price
(c) usage value
(d) critically of item

7 ____is based on usage value and classify materials or activities

according to their relative importance.
(a) ABC Analysis
(b) 80:20 Principle
(c) Pareto Principle
(d) All the above

8 Continuous Review System is also called as

(a) Qsystem
(b) Fixed Order Quantity System
(C) Perpetual Review System
(d) All the above

9. Average stock level can be calculaled as

(a) minimum stock level + 1/2o1 re-order level
(b) maximum stock level + 1/2o re-order leve
()minimum stock level + 1/3 of re-order level
(d) maximum stock level + 173 of re-order leve

9 MRP1 stands for

(a) Management Reaction P'lanning
(b) Master Resources Production
(C)Manulacturing Resources Planning
(d) Materials Requirement planning

10 MPS stands for

(a) Malerial Production Schedule
(b) Master Planning System
(c) Material Planning System
(d) Master Production Schedule

11 In MRP-1, the bill of material is

.
(a) the sum of stock-on-hand and work-in-progress
(b) the required output Iroma process over time
()a list of required safety stock items
(d) the product structure showing where common parts areused

12 MRP-ll stands for

(a) Management Reaction Planning
(b) Master Resources Production
(C) Manufacturing Resources Planning
(d) Materials Requirements Planning

13 Annual demand for a particular component is 5000 units and order

quantity is 500 units, then approximate order cycle time is
(a) 5 weeks
(b) 5.2 weeks
(c)5.5 weeks
(d) 6weeks
14 _____production scheduling system used in lean and just im
manulacturing.
(a) KANBAN
(b)QR
c) CR
d)AR

14. The main objective of QR system is to respond quickly to

(a) consumer demand
(c) distributors
b) competitors
D) none of above

15. CR stands for-

(a) continuous replenishment
(b) continuous reordering

16 The following type ot costs are usually involved in inventory decisions

except

(a) Machining cost

(c) Cost of stockouts
(b) Inventory carrying cost
(d) Ordering cost

17 The cost of insurance and taxes are included in

A) Inventory carrying cost
B) Cost of stockouts
(c) Ordering cost
(d) Set-up cost

18 customer service goal in tems of Q,C,D are fulfilled for different

markets are computed in
(a) Activity based costing
B)mission based costing
c)Trraditional costing method
(d) total cost analysis

19) the total cost apprach on the concept of

(a) reduing the cost of each activity separately
(B) reduing the cost of function
C) reducing the total cost of logistics

20 ABC method ls hased on the premises of

(a) product conoume aVIes
() acvilles (onuma resour
resourees conoumes c0ofs
d) all the above.

21 Total cost approach is-

(a) traditional P/L and balance sheet
(B) combination of ABC and MBC
(C) all cost centres added to get overall cost
(d) cumulative cost method

22 Resources costs are assigned to the various activilies of the

organisation in
A) activity based costing
B)mission based costing
C)traditional costing method
D)government department costing

23)Total cost approach is

A)extention of activity based costing
B)extention of misoion based costing
C)traditional P/L. and balance sheet
D)extension of ABC and MBC both
24) setting cost drivers of various activilies in an organisation is one of
step in
A)activity based costing
B) mission based costing

25. The activity based measures are related to

(a) delivery time per order
(b) delivery time per product
() inquiry time per order
(d) all the above

26. KPI stands for

(a) Key Performance Indicator
() Key Product Indicator
© Key Performance Index
(d) Key Preference Indicator

27 A perfect order is an act of receiving and fulfilling customer ander

(a) with 100% accuracy
(b) without any mistake
(c) delivering the goods on time
(d) all the above

28 A perfect order means.

(a) doing everything right first time
(b) doing right the first and all the time
(C) doing everything right and do it right the first and all the line
(d) none of the above

29 Benchmarking is a process of measuring the company's

logsoperations against
(a) competitors
B) leading firms
(c) companies within the industry
(d) all the above

30____sets the benchmark for excellent customer service

(a) Perfect order
B)Best in class comparty
C)Excellent customer service
(D) None of the above

31 Customer perception means

a) come views about customer service provided
B)consumer's level of satisfaction dumatisfaction
C)all of above

32______ is used to evaluate the level of customer service of a firm

A) order fulfillment
B) customer feedback
C) customer survey
D)all of the above

33 LASH vessels are prominently used for.

(a) transporting cargo
(b) transporting barges
(C) shuttle services between river and sea port
(d) none of the above

34 RORO cargo is measured in

(A) metric tons
(B) carrying capacity
(C) space available for cargo (d) dead weight

35 RORO is the____ mode of transporting vehicles.

(a) simplest and faster
(b) cheapest
(C) efficient and convenient (d) all the above

36____is an example of form of tailored transportation

(a) Size of customers
(b) By product
(0) By distance
(d) All the above

37 All shipment via central distribution centre implies

A)goods are directly sent to buyer's location
B)suppliers sendo goods to distribution centre
C) goods are sent to distribution centre and then forwarded to each
buyer location
D)Goods are sent from one dribution centre to another

38Cross docking facility is suitable____

A) Perishable goods

39 The logistics/supply network consists of__

D) all of above

40 RORO Shipping is particularly Beneficial to

C) import and export of wheeled automobile

41 LASH type vessel are used for

C) loading and unloading floating cargo.

42 LASH transport is suitable for

D) all the above.

Unit 4
1) Information technology in supply chain management is used

(a) communicating with suppliers

(b) analysing performance
(©) optimise performance
(d) all the above

2) Logistics Information system is a component of

(a) Marketing Information System
(b) Management Information System
(C) Distribution Management System
(d) None of the above
3) ____ is an element of types of logistics information system
(a) Vendor Managed Inventory
(b) E-Commerce
(c) Decision Support System
(d) All the above

4. ___are basic functions of LIS.

(a) Data collection
(b) Data storage base
(C) Reporting
(d) All the above

5 eletronc Data Interchange or EDI uses which of the following to

allow the computers of two different companies to talk to one another
aApplication software
B) interaction software
C)Translation software
(d) None of the above

6____software is used to integrate all the processes needed to run a

(b) Interaction software
compuny
ja) Computing
(b) ERP software
C)Distribution Requirement Software
d) All the above

7) Hub and Spoke method of distribution reduces

(a) transportation cost
(b) reduces inventory.com
() reduces operating cost
(d) all the above

8)____is a centralised distribution centre that receive products from

many different places, consolidate them at central place and send them
directly to destinations
(a) Point-to-point
(b) Hub and Spoke
(C) Centre to centre
(d) Supplier to buyers

9Internet of Things (IOT) technology is used for

(a) track and trace cargo in transit
(b) to predict equipment and component failure
(0) to assist customers to track and trace
(d) all the above

10)Logistics parks should be spread over a minimum of_____ acres of

land as per the Government of Maharashtra Logistics Policy
(a) 3 acres
(b) 5 acres
(c)10 acres
(d) 7 acres

11)DFC stands for

(a) Dedicated Freight Control
(b) Dedicated Freight Capacity
(0)Dedicated Freight Company
(d) None of the above

12)Inland Container Depot provides ___facility

(a) temporary storage facilities to cargo and containers
(b) offer containerisation services for break and bulk cargo
(C) transit facility for rail/road transport to and from nearest served
port
(d) all the above

13)Shipping company, port/terminal operators and freight forwarden

are main functionaries of
(a) logistics parks
(b) CTS
(C) maritime logistics
(d) all the above
14)_____provide a regular temperature control facility which help In maintain
higher temperature during transit.
A)Thermal containers
(b) Refrigerated containers
(Special purpose containers
(d) Tanks

15) network of air route rail road network inland waterways are called
C) transportation infrastructure

16) distribution centre logistics parks sub-assembly plants warehouses are

examples of
C) real estate infrastructure

17 Sourcing decision relers to.

(a) insourcing
(c) make or buy decision
(b) outsourcing
(d) all the above

18 Outsourcing means ____services of another company to perform

certain task
(a) hiring and/or contracting
(b) using
(c) transferring

19 Logistics outsourcing is also called as.

(a) logistic contract
(c) logistics agreement
D) all of above

20 The 1st party logistics provider uses _______ facility for transporting goods
from one place to another.
(a) outsource transport
(b) 3rd party logistics provide
(d) none of the above
(C)Own transport facility

21 2nd PL are also called as-

(a) asset based transport carrier
(b) specialised transport service providers
(c) multimodal transport providers
(d) all the above

22 ____type of 3PL company provide basic logstics service like

transportation and warehousing
A)Standard 3PL
B)Customer Developer 3PL
C)Customer Adapter 3PL
D)Service developer 3PL

23_____ take over complele control of a company's logistics activities and

manages on behall of the contracting company with ils own
Infrastructure
A) Standard 3PL
C) Customer Adapter 31L
(d) None of the above
(B) Customer Developer 3PL

24) Outsourcing product development and advertising campaign are evamples

of______outsourcing
(a) transaclional
(C) stralegic partnership
B)Tactical
(d) none of the above

25 Value proposition approach is based on____ strategy

(a) marketing
(b) sales promotion
(0) buy my product
(d) logistics
26 A value proposilion means
(a) adding value to customer service
(B) a promise made by company to customers
C) distinguishing company's product from product of competilors
Tm
(d) all the above

27 tactical outsourcing is related to

D)all of above

28 Loan supply chain model is also called as

(a) Toyota Approach
(B) agile Supply Chain
(b) hybrid Supply Chain
(d) None of the above

29 The basic objeclive of lean supply chain is -

(a) reduce cosl and waste
(b) eliminale non-value ad ded services
(c) save lime in operalions
(d) all the above

30 Agile supply chain is most suitable for

(a) respond quickly lo changes in market
(b) respond quickly lo changes in consumer demand
(c) respond quickly to changes in technology
(d) all the above

31 Hybrid supply chain is most suilable for

(a) high volume and stable demand
(6) make lo order
(c) for flexible production stralegy
(d) all the above

32 Delivering goods on time to consumers is an example of -

(a) basic service
(c) a part of value added service
(b) customer service
(d) none of the above

33 Repairs, reuse, recycling and redistribution are connected to

(a) Inventory management
(b) Customer support system
(d) Reverse logistics
(c)Packaging

34 Customer Relationship Management includes

(a) Reverse logistics
B) customer feedback
(c) Partnership consideration
(d) Al the above

35) Globalisalion has given rise to a new class of global customers who are
(a) from dilferent countries
(b) price and quality conscious
(C)prefer more value added service
(d) all the above

36 ____ is barrier to global supply chain

D) all of above

37 the global supply chain is characterized by

D) All of above