OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
1) In the product life cycle, the emphasis in marketing mix during growth stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.

Ans (A)

2) Where does distribution occur in the supply chain?

A. Between every pair of stages
B. Everywhere downstream from production
C. Between production and the retailer
D. Between suppliers and retailers

Ans (A)

3) Supply network design is important because:

A. It allows organisations to reduce the number of suppliers.
B. It improves the relationship between internal and external suppliers.
C. Every operation is part of a larger and interconnected network of operations.
D. It allows marketing more influence over the choice of suppliers.

Ans (C)
4) The supply network includes
A. Suppliers and Customers
B. Supplier’s suppliers and Customer’s Customers
C. Manufacturers
D. All of the Above

Ans (D)

5) How many phases are involved in designing a distribution network

A. 2
B. 3
C. 4
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
D. 5

Ans (A)
6) Distributors play a much more significant role for consumer goods distribution in a country
such as India compared to theUnited States.
A. True
B. False

Ans (A)
7) The profitability of the delivery network is decided by
A. Customer needs that are met
B. Costs of meeting the customer’s needs
C. Both A & B and including customer service
D. Both A & B

Ans (D)
8) The number of factors influencing the structure of network design is
A. 5
B. 6
C. 7
D. 8

Ans (C)
9) Changes in the distribution network does not affects the supply chain costs
A. True
B. False

Ans (B)
10) A decrease in the response time should _______ the number of facilities in the network
A. Increase
B. Decrease
C. Could not be determined
D. Depends on location

Ans (A)
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
11) Outboundtransportation costs per unit tend to be higher than inbound costs because
A. Inbound sizes are larger
B. Inbound sizes are smaller
C. More Number of facilities
D. Less Number of facilities

Ans (A)
12) As the number of facilities increases, the total logistic costs
A. First increase and then decrease
B. First decrease and then increase
C. Increases
D. Decreases

Ans (B)
13) The number of distribution network design options that are used to supply products from
factory to customer are
A. 4
B. 5
C. 6
D. 7

Ans (C)
14) The option in which the product is shipped directly from the manufacturer to the end
customer, bypassingthe retailer is called as
A. Drop-shipping
B. In-Transit Merge
C. Carrier Delivery
D. Last-mile Delivery

Ans (A)
15) The major advantage of drop shipping is
A. ability to centralize inventories at the manufacturer
B. Increased Customer services
C. Increase in cost of goods sold
D. Higher Fulfillment costs
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07

Ans (A)
16) In manufacturer storage with direct shipping, the transportation costs are higher because of
A. Fuel costs
B. Demand for freight
C. Increased distance and disaggregate shipping
D. Government Regulation

Ans (C)
17) The main advantage of in-transit merge over drop-shipping is
A. Lower Transportation Costs
B. Improved Customer Experience
C. Both A,B and additional effort to merge
D. Both A & B

Ans (D)
18) Response times are slightly _______ in in-transit merge.
A. High
B. Low
C. Vary based on location
D. None of the Above

Ans (A)
19) Warehousing Costs are higher with distributor storage because
A. Loss of aggregation
B. Product Characteristics
C. Material Handling
D. Demand Trends

Ans (A)
20) Companies in the same industry often select very different distribution networks, because the
choice of the distribution network can be used to achieve a variety of supply chain objectives
ranging from low cost to high responsiveness.
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
A. True
B. False

Ans (A)

21) Companies in the same industry should always select similar distribution networks, because
their objectives will be similar.

A. True
B. False

Ans (B)

22) Inventory Costs using consumer pickup are ________ either at manufacturer or distributor
storage.
A. High
B. Low
C. Average
D. Moderate

Ans (B)
23) Good Response times are achieved with retail systems because of
A. Local Storage
B. Distributor’s supply
C. Quick response
D. Government’s support

Ans (A)
24) Compared to all distribution networks, Transportation costs are higher for
A. Drop-shipping
B. In-transit merge
C. Carrier Delivery
D. Last-mile Delivery
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
Ans(D)
25) Factors affecting network design decisions
A. strategic factor
B. micro economic factor
C. competitive factor
D. all the above

Ans (D)
26) Role of distribution in supply chain management
A. providing localised services
B. Collecting product reviews from customers which could be used by manufacturers
C. Reduces inventory holding cost
D. All the above

Ans (D)
27) When designing a distribution network, one should consider the impact of
A. Physical Overflows
B. Ownership Structures
C. Both A & B
D. None

Ans (C)
28) Distribution networks mustbe able to adapt to changing technology and environments.
A. True
B. False

Ans (A)
29) _______is an example of a company that through trial and error adapted its distribution
network to take advantage of the Internet along with its existing retail store network.
A. Wal-Mart
B. Blockbuster
C. Border
D. None
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
Ans (A)
30) Distributors add value to a supply chain between a supply stage and a customer stage if there
are many small players at the customer stage, each requiring a small amount of the product at
a time.
A. True
B. False

Ans (A)
31) Supply chain network design decisions include the location of manufacturing, storage,
transportation related facilities and allocation of capacity and the role to each facility .
A. True
B. False

Ans (A)
32) Decisions concerning the role of each facility are significant because they determine the
amount of rigidity the supply chain has in changing the way it meets demand.
A. True
B. False

Ans (B)
33) Facility location decisions have a long-term impact on a supply chain's performance because it
is cost effective to shut down a facility or move it to a different location.
A. True
B. False

Ans (B)
34) The number of supply chain network decisions used when designing a network are
A. 4
B. 5
C. 6
D. 7

Ans (A)
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
35) Facility location decisions have a long-term impact on a supply chain’s performance because
A. Expensive to shut down a facility or move it to a different location
B. Inexpensive to shut down a facility or move it to a different location
C. Poor utilization
D. None of the Above

Ans (A)

36) Total logistics costs are

A. The sum of the inventory, transportation, and facility costs.
B. The sum of the inventory, transportation costs
C. The sum of the inventory, facility costs.
D. The sum of the transportation, and facility costs.

Ans (A)

37) If the number offacilities increases to a point, then the transportation costs
A. Decreases
B. Increases
C. Remains Moderate
D. None

Ans (B)
38) 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

Ans (B)
39) A firm’s ____________ focus on cost leadership tend to find the lowest cost location for their
manufacturing facilities.
A. Competitive Strategy
B. Production Technology
C. Political Factors
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
D. None

Ans (A)
40) When designing supply chain networks, companies must account for fluctuations in
A. exchange rates
B. demand
C. freight and fuel costs
D. All of the above

Ans (D)
41) GPRI stands for
A. Global Public Retail Index
B. Global Political Retail Infrastructure
C. Global Political Risk Index
D. None

Ans (C)
42) _______ is one major prerequisite to locate a facility in a given area
A. A good infrastructure
B. A poor infrastructure
C. Low grade infrastructure
D. None

Ans (A)
43) Retail stores located close to each other increases
A. Total Number of Customers
B. Demand for all stores located there
C. Both A & B
D. None

Ans (C)
44) Customers always want the highest level of performance along all the dimensions response
time, product variety and returnability.
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
A. True
B. False

Ans (A)
45) Which of the following is not a measure of customer service that is influenced by the structure
of the distribution network?
A. Returnability
B. Customer experience
C. Customer maturity
D. Product availability

Ans (C)

46) The number of different products/configurations that a customer desires from the distribution
network is
A. Response time.
B. Product variety.
C. Product availability.
D. Customer experience.

Ans (B)
47) A decrease in the response time customers desire increases the number of facilities required in
the network.
A. True
B. False

Ans (A)
48) The choice of the distribution network can be used to achieve supply chain objectives such as
A. Low cost.
B. High responsiveness.
C. High responsibility.
D. A and B only

Ans (D)
49) . A poor/inappropriate distribution network can
A. Lead to high profitability.
B. Hurt the level of service customers receive while increasing cost.
OME-752-SUPPLY CHAIN MANAGEMENT –UNIT_II

CLASS: IV-Year/CSE & IT Prepared by_Rupa_k

&MsB.Sowmya/ITAcademic Year-2020-21/ODD-Semester -07
C. Have a significant negative impact on the profitability of a firm.
D. all of the above

Ans (D)
50) On which dimensions should the performance of a distribution network be evaluated at the
highest level?
A. Profitability of individual supply chain components
B. Efficiency of overall supply chain network
C. Customer needs that are met
D. Cost of meeting customer needs
E. C and D only

Ans (E)