Supply Chain Management- Multiple Choice Questions


Multiple Choice Questions

1 A supply chain is a sequence of firms that perform activities required:
A) to find products that are similar
B) to facilitate wholesalers inventory selections
C) to create synergy in their training programs
D) to create and deliver goods to consumers
E) to support the acquisition of raw materials

2 An important feature of supply chain management is its application of electronic commerce technology that allows companies to share and operate systems for:
A) order processing, transportation scheduling, and inventory management.
B) cost-effective flowing of raw materials
C) future purchasing of computer systems
D) future merger opportunities
E) prospecting new business ventures.

3 A supply chain is essentially a sequence of linked:
A) customer and prospects
B) supplier and manufacturer
C) suppliers and customers
D) warehousing and wholesaling units
E) events in the marketing process

4 In the automotive industry, the person who is responsible for translating customer requirements into actual orders and arranges delivery dates is the car maker:
A) supply manager
B) purchasing manager
C) production manager
D) supply chain manager
E) VP for production

5 It is estimated that the logistics costs of a new car are about:
A) 10-20%
B) 20-25%
C) 25-30%
D) 30-40%
E) 40-45%

6 Poor supply chain management practices can ____________________ an otherwise excellent marketing strategy.
A) seriously damage
B) make SWOT analysis difficult for
C) keep people employed on
D) mean quarterly lessons for
E) repair

7 The physical characteristics of a product will often dictate what:
A) types of sales can be made
B) forms of sales promotion to be used
C) types of instructions needed
D) geographic regions will be included
E) kinds of transportation can be used

8 Pricing interacts with a supply chain in many ways. For instance, transportation rate structures are adjusted by the carrier based on:
A) cost to unload
B) the size of the shipment
C) local currency rates
D) the logistics costs concept

9 The total logistics cost includes expenses associated with transportation, materials handling and:
A) customer complaints, cost of food and highway usage taxes
B) warehousing, inventory, stock outs and order processing
C) inventory control with sales forecasting
D) stock outage control with sales forecasting
E) historical figures weighted by last years numbers

10 The total logistics cost factors need to be balanced against the:
A) supply chain managers total experience
B) total expected transportation needs
C) customer service factors
D) lead time expectations
E) replenishment time forecasts

11 Lead time and order cycle time are the same as:
A) customer service time
B) supply chain flow
C) logistical clockage
D) replenishment time
E) real time service time

12 The inventory management systems designed to reduce the retailer's lead time for receiving merchandise is called:
A) efficient consumer response delivery system.
B) effective response.
C) on-time market delivery system.
D) efficient logistical response.
E) on-time consumer response systems.

13 Examples of third-party logistics providers are:
A) FedEx and Rosenau Transport
B) Sentinel Self-Storage and UPS
C) FedEx and UPS
D) UPS and Metro Van Lines
E) Purolator and Metro Van Lines

14 The seller must concentrate on removing unnecessary barriers for:
A) a quick response.
B) customer convenience.
C) transportation modes.
D) a piggyback operation.
E) a more personable relationship with the customer.

15 There are five basic transportation modes. They are air carrier, motor carrier, and:
A) pipelines, railways an water carriers
B) railways, ocean vessels and dirigibles
C) trucks, canals and robotics
D) water routes, railways and trucks
E) pipeline, water routes and ocean vessels

16 Rail has the largest shipping capacity compared to all except:
A) pipeline
B) air carrier
C) water carrier
D) motor carrier
E) none of the above

17 TOFC is the same as:
A) piggyback
B) total fleet command
C) tri-optic float carrier
D) one-way dispatching
E) deadhandle control

18 Air freight is costly, but its speed may create savings because of:
A) the extensive availability of airports
B) lower inventory.
C) getting to store shelves before water carriers.
D) lower costs created by FIFO.
E) other transportation modes take more time.

19 A reason to carry inventory would include:
A) to have tax write-off opportunities
B) having a wide variety to meet customer expectations
C) to increase ways to use the product
D) supplementation of synergy strategies
E) to promote purchasing and transportation discounts

20 Saturn's manufacturing operations in Spring Hill, Tennessee, uses a sophisticated system called:
A) JIT
B) OJT
C) OJE
D) POP
E) FOB

1D 2A 3C 4D 5C 6A 7E 8B 9B 10C 11D 12A 13C 14B 15A 16C 17A 18B 19E 20 A























Multiple Choice Questions 2

1 A marketing expert described a _____ as looking like a butterfly. The manufacturer is the body of the butterfly with many different suppliers accumulated on one side of the body for the left wing and a large number of buyers collected on the other side to form the right wing.
A) logistical flow
B) demand chain
C) materials handling facility
D) supply chain
E) retailer cooperative

2 _____ is the integration and organization of information and logistics across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers.
A) Supply chain management
B) Logistics management
C) Point-to-point management
D) Just-in-time management
E) Cost-effective flow

3 What is the first step in choosing a supply chain?
A) developing an umbrella mission statement
B) understanding the customer
C) making sure the members of the supply chain harmonize with the organizational culture
D) creating a unifying interorganizational strategy
E) determining what the competition is doing

4 Bombardier makes corporate jets and its strategy involves streamlining production activities, maintaining its reputation for quality, and reducing its costs. It has developed the Continental, an airplane assembled from just a dozen large component parts (not counting rivets). While building planes with subassemblies is not new, Bombardier is the first to not use vertical integration. All parts are supplied by carefully chosen independent companies that share the development costs and market risk. In terms of its supply chain, Bombardier has
A) lengthened its supply chain unnecessarily.
B) implemented a just-in-time materials handling policy.
C) created a marketing channel.
D) harmonized its supply chain and its strategy.
E) used a production repositioning strategy.

5 Winemaker Robert Mondavi Corp. buys satellite images from NASA to spot problems in its vineyards and aims to push those images out over a(n) _____ to its independent growers this year. Mondavi will help growers avoid vineyard problems-and improve the grapes it buys.
A) Extranet
B) customized search engine
C) electronic downloadable information (EDI)
D) customized database management system
E) entrepreneurial Internet

6 With which customer service factor are quick response and efficient consumer response delivery systems most closely related?
A) time
B) dependability
C) inventory costs
D) communication
E) convenience

7 Celarix.com is a business entity that monitors and calculates tariffs and exchange rates for small companies that ship export their products. Celarix is an example of a:
A) materials handling expert.
B) content provider.
C) freight forwarder.
D) third-party logistics provider.
E) logistics manager.

8 Which of the following statements about air carriers is true?
A) One advantage of air carriers is door-to-door delivery.
B) There are no space constraint limitations as to what can be transported in planes.
C) This method of transportation is especially effective for piggybacking.
D) Air carriers are commonly used for perishable flowers, clothing, and electronics parts.
E) All of the above statements about air carriers are true.

9 William "Gus" Pagonis is an executive vice president at Sears and oversees the systems the retailer depends on to make 5,000 home deliveries per day and move 250,000 truckloads of goods every year. With 30 large distribution centres and 90 smaller outlets, it's Pagonis's job to supply 100,000-plus products to more than 2,000 Sears stores. When asked to describe the retailer's distribution centres, Pagonis would most likely say,
A) "Just like other companies, Sears spends more money on distribution centres than any other element of its supply chain."
B) "Our success is due to the centralization of our distribution centres."
C) "Because our distribution centres are so efficient, they are the least expensive part of our supply chain."
D) "We use our distribution centres to facilitate sorting consolidating products from different suppliers."
E) "Distribution centres are the most important element of our order processing."

10 Modes of transportation are typically evaluated on the basis of all of the following criteria EXCEPT:
A) accessibility.
B) perishability.
C) frequency.
D) capability.
E) dependability.

11 TransCanada PipeLines, a natural gas transmission and distribution company, launched an advertising campaign in national Canadian newspapers and the country's major dailies to educate people about what pipelines do and where they fit into the economics of the community. The advertising might have told Canadians that pipelines:
A) are expensive to use.
B) have a high degree of reliability.
C) are weather sensitive.
D) rank high in terms of accessibility.
E) are accurately described by all of the above.







12 The Danish-flagged Carsten Maersk can carry enough merchandise packed in containers that when they are laid end to end, the containers would stretch 27 miles. When it reaches its destination, the containers will be removed from the ship and loaded onto trucks and railcars. This is an example of:
A) piggyback.
B) freight forwarding.
C) intermodal transportation.
D) an export agent.
E) an efficient consumer delivery system.

13 Traditionally, stores have carried inventory to:
A) prevent strikes or product shortages.
B) provide better service for those customers who wish to be served on demand.
C) eliminate forecasting uncertainty.
D) terminate production economies.
E) avoid purchasing and transportation discounts.
1D 2A 3B 4D 5A 6A 7D 8D 9D 10B 11B 12C 13B

Multiple Choice Questions 3
1 Dramatic cost savings are possible when efficient transportation systems and information technology can be substituted for _____ costs.
A) advertising
B) personal selling
C) publicity
D) inventory
E) billing

2 Supply chain management impacts all of the following aspects of the marketing mix strategy EXCEPT:
A) the target market selection decision.
B) product mix decisions.
C) pricing decisions.
D) promotion decisions.
E) distribution decisions.
3 An online retailer like Amazon.com relies on an efficient supply chain. The development of its supply chain supported its clearly defined marketing strategy and began with:
A) inventory forecasts.
B) a logistics mission statement.
C) the mature stage of the product life cycle.
D) understanding the customer.
E) none of the above.

4 In Canada, Coca-Cola Beverages has rolled out new marketing, technologies, and packaging to outmaneuver private-label Canadian cola bottlers, which have captured considerable market share. Coke will bring in a new just-in-time distribution system based on unit trains and cross-docking sales centres. Which of the following statements describes how Coke will use cross-docking?
A) Cross-docking will allow Coca-Cola to greatly reduce the need to store and warehouse products.
B) The use of cross-docking means Coca-Cola will rely more on business-to-business marketing.
C) The use of cross-docking means Coca-Cola will implement the customer service concept in its relations with ultimate consumers.
D) Cross-docking will allow Coca-Cola to use less freight forwarding.
E) Cross-docking will allow Coca-Cola to outsource its manufacturing.

5 In physical distribution decisions, total logistics cost includes:
A) order processing.
B) materials handling and warehousing.
C) transportation.
D) inventory and stockouts.
E) all of the above.

6 Canadian graphic arts, publishing and advertising companies, as well as their clients and suppliers, can exchange camera-ready art and other images faster and cheaper than before as the result of an agreement between Bell Nexxia and Montreal-based Cenosis. These two companies market a(n) _____ for the graphic arts. It allows a graphic designer to transmit the full contents of a magazine to clients or printing firms across the country-reducing production costs and delivery time.
A) efficient response system
B) vendor-managed communication system
C) Extranet
D) online logistics system
E) communication bot

7 Lead time is:
A) also called replenishment time.
B) typically more important to resellers than to consumers.
C) defined as the time that passes from ordering an item until it is received and ready for use or sale.
D) also called order cycle time.
E) accurately described by all of the above.

8 Combining different transportation modes in order to get the best features of each is called:
A) freight forwarding.
B) dual distribution.
C) intermodal transportation.
D) bimodal logistics.
E) intramodal transport.

9 In Canada, Coca-Cola Beverages has rolled out new marketing, technologies, and packaging to outmaneuver private-label Canadian cola bottlers, which have captured considerable market share. Coke will bring in a new just-in-time distribution system based on unit trains and cross-docking sales centres. Coca-Cola's use of unit trains will allow it to:
A) have a dedicated train that uses permanently coupled cars that run a continuous route from Coke's bottling plants to its retailers and back.
B) use intermodal transportation for export purposes.
C) use trucks to make door-to-door deliveries.
D) use more warehousing.
E) reach ultimate consumers through one-to-one marketing.

10 The major purpose of a trailer on flatcar (TOFC) is to:
A) deregulate the motor carrier industry.
B) combine the economy of rail carriers with the flexibility of motor carriers.
C) implement a JIT transportation strategy both domestically and internationally.
D) eliminate the need for containers.
E) provide a common power unit from origin to destination.



11 Air Canada, a Montreal-based airline, uses its excess storage capacity on passenger flights to Europe to haul cargo. It typically collects several small shipments consigned to a common European destination. Shipment schedules are mandated by the passenger side of its business. Air Canada is an example of a(n):
A) third-party service provider.
B) Extranet.
C) vendor-managed logistics expert.
D) import agent
E) freight forwarder.

12 A warehouse that emphasizes speed and efficient product flow to hold goods for short periods of time and move them out as soon as possible:
A) is a storage warehouse.
B) is a freight forwarder.
C) is a distribution centre.
D) is an inventory expediting centre.
E) has a just-in-time inventory system.




1D 2A 3D 4A 5E 6C 7E 8C 9A 10B 11E 12C 13 15 15 16 17 18 19 20















































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