Question Bank

UNIT – 1 LOGISTICS

Q1. Which of the following is true for supply chain management?

a) The physical material moves in the direction of the end of chain

b) Flow of cash backwards through the chain
c) Exchange of information moves in both the direction
d) All of the above

Q2. 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

Q3. 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

Q4. Distribution requirement planning is a system for

a) Inventory management
b) Distribution planning
c) Both „a‟ and „b‟
d) None of the above

Q5. 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
Q6. What is the inventory between the Purchasing and Production?

a) Semi-finished goods inventory

b) Raw materials inventory
c) Finished goods inventory
d) Work in Progress inventory
Q7. Which one of the following cannot be said as the elements of logistic support?

a) Transportation and handling

b) Personnel and training
c) Facilities
d) System analysis

Q8. The supply chain concept originated in what discipline

a) Marketing
b) operations
c) Logistics
d) Production

Q9. An encompasses all activities associated with the flow and

transformation of goods from the raw material stage, through to the end user, as well
as the associated information flows.
a) production line
b) Supply chain
c) marketing channel
d) warehouse

Q10. A company's channel decisions directly affect every.

a) Customer’s choices
b) employee in the channel
c) channel member
d) Marketing decision

Q11. When suppliers, distributors, and customers partner

with each other to improve the Performance of the entire
system, they are participating in a
a) Channel of Distribution
b) Value Delivery Network
c) Supply Chain
d) Supply and Demand Chain

Q12. Marketing logistics involves getting the right product to the right customer in
the right place at the right time. Which one of the following is not included in this
process?

a) implementing the plan for the flow of goods and services

b) planning the physical flow of goods and services
c) controlling the physical flow of goods, services, and information
d) gathering customer's ideas for new products
Q13. Which of the following is not an area of responsibility for a logistics manager?

a) inventory
b) purchasing
c) warehousing
d) marketing
Q14. To reduce inventory management costs, many companies use a system called,

Which involves carrying only small inventories of parts or merchandise, often only
enough for a few days of operation.
a) reduction-inventory management
b) economic order quantity
c) just-in-time logistics
d) limited inventory logistics

Q15. In a SC, Material flows in one direction while from in both directions

a) Process
b) Information
c) Product
d) Semi-finished Goods

Q16. The trend in organizations is to place the SCM function:

a) Under the manufacturing function

b) Under the finance function
c) Under the engineering function
d) At the same level as the other major functions

Q17. If two potential suppliers can deliver a part with the same
quality and prices, the selection Should be based on:
a) Age of the firms
b) A coin flip
c) Outside evaluation
d) The capabilities and flexibilities of the firms

Q18. Just-in-time/SCM purchasing requires the following condition:

a) Many suppliers
b) Short-term contracts
c) Cooperationbetween purchasing and suppliers
d) Continuous competitive bidding
Q19. The most common form of quality control includes:

a) Planning
b) Organizing
c) Inspection
d) Directing

Q20. 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 synergyin their training programs
d. to create and deliver goods to consumers
Q21. 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

Q22. From the economic system's point of view, the role of marketing intermediaries is to

Transform the assortment of products made by producers into the assortment of

products wantedby
Channel members.

a) manufacturers
b) marketers
c) distributors
d) consumers

Q23. Companies manage their supply chains through .

a) information
b) transportation modes
c) competitors
d) the Internet

Q24. Which of the following is NOT a reason that companies are depending more on their
Suppliers?

a) More focus on core competencies

b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers
Q25. One of the main objectives of logistics is

a) Right product, right quantities, right places, right time, right cost / price,
right customer and, right condition
b) Right product, right quality, right places, right location, right cost /
price, right supplier and, right condition
c) Right product, right technology, right source, right time, right information,
right customer and, right Features
d) Right shape, right quantities, right medium, right time, right mode of
transportation, right vehicle and, right cost
Q26. Creating time and place utilities means

a) products have to be made available at the right time and physically moved
from place of their origin to the place of consumption
b) Right products have to be made available and information has to be moved
from place of their origin to the place of consumption
c) Services have to be made available to the right customer
d) products should not be made available at the right time and physically moved
from place of their origin to the place of consumption

Q27. Expand TQM

a) Total Quality Measure

b) Total Quantity Management
c) Total Quality Management
d) Total
Quantity Measure
Q28. Demand
forecasting means
a) historical sales data is used to develop an estimate of an expected forecast of
customer demand
b) historical sales data is used to develop an estimate of transportation modes
c) historical revenue data is used to develop an estimate of an expected Profits
d) historical time used to develop
Production plan Q29. Which from the
following is not a logistics activity?
a) Packaging
b) Customer service
c) Promotional Activities
d) Material HandlingQ30. RFID stands for

a) Radio frequency intimation

b) Radio frequencyindication
c) Radio frequencyinspection
d) Radio frequency identification
Q31. Expand SKU

a) Store Keeping Units

b) Stock keeping Units
c) Sales Keeping Units
d) Supply keeping

Units Q32. Safetystock is

also known as

a) Backwardstock
b) Emergencystock
c) Scarcity stock
d) Buffer stock
Q33. Pipeline stock refers to the stock

a) Stocks that are stored inside a pipeline

b) Stocks En route between various fixed locations
c) Stocks of pipes
d) Stocks that are kept in
retail stores Q34. What are
the Objectives of Inventory?
a) Smooth fulfillment of orders
b) Reduce losses due to theft, wastage, etc
c) Know when to scale or shrink the production of goods
d) All of the above

Q35. Inventory cost is expressed in terms of

a) Percentage
b) Dollars
c) Rupees
d) Pounds

Q36. Which is not a component of ordering cost?

a) Cost of receiving an order

b) credit check
c) preparing invoice
d) Obsolesce Cost

Q37. Formula for EOQ expressed in terms of dollars is

a) Square root of 2 AB/C

b) Square root of 2 DB/IC
c) Square root of 2 AD/C
d) Square root of 2 AB/ IC
Q38. Formula for EOQ expressed in terms of Units is

a) Square root of 2 AB/C

b) Square root of 2 DB/IC
c) Square root of 2 AD/C
d) Square root of 2 AB/ IC

Q39. Which from the following is not an Assumption of EOQ?

a) A continuous, constant and known rate of demand

b) A constant and known replenishment or lead time
c) All demand cannot be satisfied
d) A constant purchase price that is independent of the order quantity

Q40. ABC analysis is a type of inventory categorization method in which inventory is

divided into three categories, A, B, and C

a) in descending value
b) in Ascending Value
c) Both Ascending and Descending Value
d) None of the Above

Q41. Which from the following is not an input of MRP?

a) Master scheduling
b) Inventory
c) Infrastructure development
d) Bill of Material

Q42. DRP combines the service level of

a) Pull method
b) Push method
c) Service levels of pull with the efficiency of push.
d) None of the Above

Q43. And Physical Distribution are the two major Operations of logistics

a) Supply Chain Management

b) Material Management
c) Logistics Management
d) None of the Above

Q44. are the time elapses between issuing replenishment

order and receiving the materials in stores?
a) Replenishment time
b) Lead Time
c) Idle Time
d) None of the Above
Q45. is the task of buying goods of right quality, in the right quantity at
the right time, and at the right place?
a) Supplying
b) Purchasing
c) Scrutinizing
d) None of the Above

Q46. 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) Net chain analysis
c) Reverse logistics
d) Reverse supply chain

Q47. 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, marketingQ48.
Which from the following
statement is True?
a) The common view is that the term logistics comes from the late 17th
century from French word “Logistique”
b) The common view is that the term logistics comes from the late 18th
century from French word“Logistique”
c) The common view is that the term logistics comes from the late 19th
century from French word “Logistique”
d) The common view is that the term logistics comes from the late 20th century
from French word
“Logistique”

Q49. The following classes of costs are usually involved in inventory decisions except

a) Cost of ordering
b) Carrying cost
c) Cost of shortages
d) Machining cost

Q50. Which of the following is not an inventory?

a) Machines
b) Raw material
c) Finished products
d) Consumable tools
Q51. The cost of insurance and taxes are included in

a) Cost of ordering
b) Set up cost
c) Inventory carrying cost
d) Cost of shortages

Q52. „Buffer stock‟ is the level of stock

a) Half of the actual stock

b) At which the ordering process should start
c) Minimum stock level below which actual stock should not fall
d) Maximum stock in inventory

Q53. The minimum stock level is calculated as

a) Reorder level – (Normal consumption x Normal delivery time)

b) Reorder level + (Normal consumption x Normal delivery time)
c) (Reorder level + Normal consumption) x Normal delivery time
d) (Reorder level + Normal consumption) /
Normal delivery timeQ54. Which of the following is
true for Inventorycontrol?
a) Economic order quantity has minimum total cost per order
b) Inventory carrying costs increases with quantity per order
c) Ordering cost decreases with lo size
d) All of the above

Q55. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of
Rs. 10 per unit.
The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

a) 400
b) 440
c) 480
d) 500

Q56. Average stock level can be calculated as

a) Minimum stock level + ½ of Re-order level

b) Maximum stock level + ½ of Re-order level
c) Minimum stock level + 1/3 of Re-order level
d) Maximum stock level + 1/3 of Re-
order level Q57. Re-ordering level is
calculated as
a) Maximum consumption rate x Maximum re -order period
b) Minimum consumption rate x Minimum re-order period
c) Maximum consumption rate x Minimum re-order period
d) Minimum consumption rate x Maximum re-order period
Q58. Which from the below cannot be transported through pipelines.

a) Crude oil
b) Raw natural gas liquids.
c) Packed water containers
d) Biofuels
Q59.DRP
stands for
a) Distribution requirement planning
b) Dividend requirement planning

c) Distribution resource planning

d) Distribution reverses planning

Q60. The utility that is created by moving goods from surplus points to points where
demand exists is referred to as:

a) Form
b) Place
c) Time
d) Possession
UNIT – 2 LOGISTICSMANAGEMENT

Q1. The most valuable sources of data for merchandising decisions are:

a) suppliers
b) retail personnel
c) consumers
d) competitors

Q2. A retailer can determine consumer requests for unstocked or out-of-stock

merchandise through the use of a(n):
a) basic stock list
b) never-out list
c) electronic data interchange system
d) want book

Q3. Which of these is not a potential source of merchandise?

a) Company-owned supplier
b) Competing retailer
c) Outside, regularly used supplier
d) Outside, new supplier

Q4. Which of the following forms of evaluating merchandise is most appropriate for a fine
jeweler retailer?

a) Sampling
 b) inspection
c) description
d) final selection

Q5. Which of the following forms of evaluating merchandise is most appropriate

for standardized, non- breakable, and nonperishable merchandise?
a) sampling
b) inspection
c) description
d) final selection

Q6. Off-price retailers and other deep discounters generally employ which form of buying?

a) opportunistic buying
b) decentralized buying
c) resident buying house buying
d) Long term buying contract
Q7. Payments required by retailers for providing shelf space in stores are:

a) shelf facing fees

b) slotting allowances
c) multiple shelf face allowances
d) Self-space allowance

Q8. Inventory risk to a retailer is lowest in a:

a) short-term supply contract

b) long-term supply contract
c) consignment purchase
d) negotiated purchase

Q9. Which of the following can result by maintaining a large inventory?

a) quantity discounts obtained on largerorders

b) low investment costs
c) high transportation charge
d) difficulty with control and handling

Q10. Which of the following is not a potential advantage of maintaining a small inventory?

a) low investment costs

b) low impact of order delay on sales
c) low storage costs
d) low obsolescence

Q11. Which of these is not a logistics process?

a) order processing
b) inventory management
 c) customer service
d) Store operations

Q12. The logistics aspect of a value delivery chain is:

a) a supply chain
b) direct store delivery
c) value orientation
d) inventory planning

Q13. Small orders and frequent ordering are characteristics of:

a) economic order quantity (EOQ)

b) inventory management
c) logistics
d) Quick response (QR) inventory planning
Q14. Floor-ready merchandise and electronic data interchange (EDI) are both aspects of:

a) cross-docking
b) preferred logistics
c) quick response (QR) inventory planning
d) economic order quantity planning

Q15. Collaborative relationships between channel members to seek

out inefficiencies in the ordering/receiving process are an important
part of:

a) efficient consumer response (ECR)

b) preferred logistics
c) economic order quantity planning
d) stock out loss planning

Q16. Direct store distribution (DSD) is most appropriate for:

a) small products
b) perishable products
c) imported products
d) products subject to high tariffs

Q17. Anti-theft tags are placed on products when they are produced with:

a) vendor-managed inventory (VMI)

b) floor-ready merchandise
c) source tagging
d) reverse logistics

Q18. The greatest source of inventory shrinkage is caused by:

a) fraud by customers
b) customer shoplifting
c) employee theft
 d) vendor fraud

Q19. Electronic article surveillance is an aspect of:

a) merchandise security
b) vendor-managed inventory (VMI)
c) source tagging
d) reverse logistics

Q20. Which of the following is an example of reverse logistics?

a) direct store delivery

b) vendor-managed inventory (VMI)
c) source tagging
d) customer queries
Q21. A linkage of operations that provide goods and services through to the end customer is
called:

a) The Demand Chain

b) The Information Chain
c) The Supply Chain
d) The Logistics Network

Q22. If total sales for a company are £10,000,000 the cost of purchase goods and
services is £7,000,000 salaries are £2,000,000 and overheads are £500,000,
profits can be doubled by:

a) Decreasing salaries by 25%

b) Increasing sales revenue by 100%
c) Decreasing purchasing costs by 7.1%
d) Decreasing overheads by 100%
e) All of the above

Q23. Which of the following relates to the short-term ability to supply?

a) Dependability of supply
b) Potential for innovation
c) Technical capability
d) Willingness to share risk

Q24. Which of the following is considered an impact of e-procurement?

a) It drives efficiency, opens up the market to competition, and improves the

ability to manage suppliers
b) It reduces transaction costs, promotes efficiency and reduces competition in the
marketplace
c) It opens up the marketplace to increased competition, but limits the ability to manage
suppliers
d) It promotes efficiency improvements, opens up the market to increased
competition, and increase long- term costs
Q25. The concept of materials management originated from purchasing
functions that understood the importance of integrating materials flow and
its supporting functions.
 a) True
b) False

Q26. The volume and value of purchases of goods or services typically

increase as organizations concentrate on their „core‟ tasks

a) True
b) False

Q27. „Logistics' covers a smaller proportion of the supply chain than „Physical distribution
management'

a) True
b) False
Q28. The larger the level of material costs as a proportion of total costs, the greater the
effect on profitability of a reduction in material costs.

a) True
b) False

Q29. E-Procurement is a generic term used to describe the use of electronic

methods in every stage ofthe purchasing process from identification if need through
to payment, and even contract management.

a) True
b) False

Q30. In attempting to reduce inventory in the supply chain as a whole, the supply
chain manager must focus attention on:

a) „Bottle neck‟ businesses

b) End customers
c) First-tier suppliers
d) „A-class‟ products

Q31. The idea of identifying waste along the whole supply chain, especially in
the form of unnecessary inventory, is the basis of what concept?

a) Lean supply chain

b) Effective supply chain
c) Focused supply chain
d) Aggregate supply chain

Q32. What is the well-accepted term for the function that deals with the operation‟s
interface with itssupplier markets?
a) Materials management
b) Logistics
c) Purchasing and supplymanagement
d) Physical distribution management

Q33. What is the term commonly used to refer to the extension of physical distribution
management?
 a) Materials management
b) Downstream supply management
c) Logistics
d) Distribution flow
management Q34. What is
Vehicle routing?
a) With the help of technology identifying the best routes for fleet of vehicle to
return the goods from customer to suppliers.
b) To identify the optimal price for purchasing of the vehicles for the purpose of
transportation
c) To identify what is the optimal set of routes for a fleet of vehicles to traverse
in order to deliver to a given set of customers
d) To identify what is the optimal method of packing of goods based on the type
of vehicle chosen for the mode of transportation
Q35. Which from the following is not a basic operation of warehousing?

a) receiving
b) storage-handling
c) order picking
d) Maintaining of equipments
Q36. Inventory management

a) Is the supervision of capitalized assets and stock items?

b) Is the supervision of non-capitalized assets and stock items?
c) Is the supervision of Funds and assets?
d) Is the supervision of Movement of flow of goods?

Q37. Which from the following is a characteristic of product design?

a) Mode of transportation
b) Perishability
c) Technology used
d) Labeling

Q38. Material handling refers to

a) all activities relating to the movement of raw material, work in process or

finished goods within a plant or warehouse
b) all activities relating to the movement vehicles, from manufacturers to consumers
c) all activities relating to the movement of raw material, work in process or
finished goods outside a plantor warehouse
d) All activities relating to movement of vehicles from supplier to
consumers. Q39. Reverse and green logistics means:
a) recycling, reusing and reconstructing material
b) recycling, reusing and reducing material
c) remodeling and reconstructing material
 d) recycling, reusing and
rerouting material Q40. Integrated
logistics refers to

a) A process of planning, coordinating and arranging the operational

activities so as to optimize the productivity to ensure success.
b) A process of planning, coordinating and arranging the operational
activities so as to optimize the effectiveness to ensure success.
c) A process of planning, coordinating and arranging the operational
activities so as to optimize the movement of goods to ensure success.
d) A process of planning, coordinating and arranging the operational
activities so as to optimize the operations to ensure success.
Q41. deals with the relationship between the firm and its suppliers.

a) Inbound logistics
b) Outbound logistics
c) Cross docking
d) Customer service

Q42. refers to as physical distribution

a) Inbound logistics
b) Outbound logistics
c) Conversion and operations
d) Cros
s
dockingQ4
3.
ISO Stands for

a) International Operation for supply chain

b) International Organization for Sterilizing
c) International Organization for standard chartered
d) International Organization for Standardization

Q44. Vehicle inspection has to be undergone only

a) When you‟re using cars, vans, or trucks in your business

b) When you‟re using only cars
c) When you‟re using Aircraft
d) For all the vehicles used in your business.

Q45. Warehouse safetydoesn‟t involve

a) Inspection of taps to forklifts and stairs to storage

b) Industry safetystandards.
c) keeping your employees healthy and on the job
d) Orderpicking
Q46. Which of the following job roles would be found within the
logistics department fora large?

a) Customer services manager

b) Warehouse manager
c) Retail manager
d) Human resources manager

UNIT – 3 LOGISTICSSTRATERGY

Q1. What is the goal of any formal logistics or supply chain strategy?

a) To deliver goods from point of origin to point of consumption?

b) Delivering what customers want, when theywant and by spending as little money as
possible.
c) Delivering the goods at the right goods to the customers
d) Goal of not having Stock outs

Q2. Which from the following is not a process of Logistics strategy?

a) Supply
b) manufacturing
c) order to delivery
d) Invoicing

Q3. The business termthat involves choosing a supplier, agreeing

what to buy at a certain price and by when is called:

a) Logistics
b) Supply chain management
c) Stock control
d) Procurement
Q4. Which of the following is a benefit to a supplier of consistently delivering products on
time?

a) Repeat orders
b) Lower prices
c) Lower storage costs
d) Minimal buffer stock held

Q5. Which of the following is a main reason why a supplier may be reluctant
to supplya new
business with stock?

a) The quality of the supplies may not meet customer expectations

b) The new business may request large volumes of stock
c) The new business may demand reasonable prices
d) High failure rate of new businesses
Q6. Which of the following is a benefit to a business of
having an efficient procurement
Department?
 a) Improved levels of customer service
b) Increased levels of staff motivation
c) Higher sales revenue
d) Lower unit costs

Q7. Which of the following is a benefit to a business of reducing its production

times?

a) It will hold less stock

b) It sales will increase
c) Its staff will be more motivated
d) It could create a competitive advantage
Q8. A business getting good value when buying products means that it will:

a) Always get the cheapestprice

b) Always get the highest quality
c) Get the right balance between price and quality
d) Charge its customers the lowest price possible

Q9. To store them for any length of time, perishable foods must be .

a) refrigerated
b) left in direct sunlight
c) buried
d) stored in a dark, dry pantry

Q10. 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

Q11. 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) kinds of transportation can be used

Q12. VMI stands for

a) Vendor material inventory

b) Vendor managed inventory
c) Variable material inventory
d) Valuable
materialinventory
Q13. Lean production
involves
a) Improvement of speed only
 b) Improvement of quality only
c) Elimination of all types of waste
d) Elimination of cost only
Q14. Which of the following statements is true of LEAN?

a) Lean principles focus on advanced statistical methods

b) Lean principles are separate bodyof knowledge
c) Lean principles have been developed over a lengthy period of time.
d) Lean principles include reducing waste.

Q15. What name is often given to the Japanese „total approach‟ to removing
anything that does not add value to the final product?

a) Jobbing processes
b) Lean production processes
c) Continuous processes.
d) Batch processes.

Q16. The time period between placing an order its receipt in stock is known as

a) Lead time
b) Carrying time
c) Shortage time
d) Over time

Q17. An agile supply chain takes care of:

a) A high level of supply disruptions/uncertainty.

b) A high level of demand uncertainty.
c) A high level of both demand and supplyuncertainty.
d) Either demand or supply uncertainty.

Q18. Products in the fashion goods industry and the high-technology

industry suffer from forecast inaccuracy due to:
a) A high level of demand uncertainty.
b) A wide range of product variety.
c) A short life-cycle of the products.
d) High level of demand uncertainty, a wide range of product variety and
short-life cycle of the products.
Q19. Firms engaged in outsourced manufacturing have to be concerned with:

a) Disruptions in demand.
b) Disruptions in supply.
c) Disruptions in demand.
d) Disruptions in transportation and freight breaches.

Q20. Contemporary supply chain should be fast

 a) Lean
b) Agile
c) Interactive
d) Relevant

Q21. An organizations ability to change to respond to changes in demand with

the respect to the volume and variety refers to

a) Responsiveness
b) Relevancy
c) Agility
d) Leanness

Q22. Positive Long term relationship between supply chains participants are known as

a) Partnership
b) Co – operation
c) Supply chain management
d) Tailored logistics

Q23. Which from the following is not a wayto reduce inventory levels?

a) Supply Pushreplenishment
b) Smaller More frequent orders
c) Use of premium transportation
d) Elimination of slower moving products

Q24. Collaboration offers the best opportunity for improving supply chain
performance

a) Transactional
b) Strategic
a) Tactical information sharing
b) Operational

Q25. A competitive marketing strategy plays a role in companies

a) Positioning strategy
b) Targeting strategy
c) Differentiation
d) Market segmentation

Q26. 11. Which is not a part of basic systems of codification?

a) Alphabetical system
b) Numerical system
c) Color coding system
d) None of these
above Q27. E-logistics
features:
 a) Every modification is logged
b) Advanced search capabilities
c) Both „a‟ and „b‟
d) None of these above

Q28. The major decision areas in supply chain management are

a) Planning, production, distribution, inventory

b) Location, production, scheduling, inventory
c) Location, production, inventory
d) Location, production,
distribution, marketingQ29.
Role of Logistics Manager is
a) Maintain reports, process documentation, customer service logs etc.,
b) Implement specific customer requirements
c) Resolve problems concerning transportation, logistics systems, imports or exports, or
customerissues.
d) All of the Above

Q30. Drop Ship strategies refer to

a) inventory being held in a central warehouse, with orders compiled and shipped on
demand
b) consider the costs and efficiency of each transportation method
c) Improving business in order to gain a competitive advantage.
d) Structural elements help fill out details regarding structural decisions in
your logistics strategy Structural elements help fill out details regarding
structural decisions in your logistics strategy

Q31. Which of the following statements is true of LEAN?

a) Lean principles focus on advanced statistical methods

b) Lean principles are separate bodyof knowledge
c) Lean principles have been developed over a lengthy period of time.
d) Lean principles include reducing waste.

Q32. Lean production involves

a) Elimination of cost only

b) Improvement of quality only
c) Improvement of speed only
d) Elimination of all types of waste
 UNIT – 4 Outsourcing Logistics

Q1. Outsourcing technically means:

a) moving functions or activities out of an organization

b) the delegation of non-core operations from internal production to an external
entity specializing in the management of that operation
c) buying resources from outside a company’s main domestic market
d) the first or second answer above

Q2. Which of the following statements is true?

a) Transportation and logistics are same.

b) Supply chain is a subset of logistics.
c) Physical distribution and logistics are the same.
d) Logistics and supply chain are same.

Q3. If a customer visiting a departmental store cannot find his desired soap manufactured
by Hindustan Unilever Ltd (HUL) in the store, which of the following chain partner will he
hold responsible for the non-availability of the soap?

a) The departmental store

b) The distributor
c) The logistics service provider
d) Hindustan Unilever Ltd

Q4. Which of the following sequence is true?

a. Sourcing → Inbound logistics → Outbound logistics → Conversion into

finished goods → Retailing
b. Inbound logistics → Sourcing → Conversion into finished goods →
Outbound logistics → Retailing
c. Sourcing → Conversion into finished goods → Inbound logistics →
Outbound logistics → Retailing
d. Sourcing → Inbound logistics → Conversion into finished goods →
Outbound logistics → Retailing
Q5. Supply chain is concerned with the

a) Flow of raw materials, WIP and finished products in the forward direction
b) Flow of information in both the directions
c) Flow of cash in the reverse direction
d) Flow of materials in the forward direction and that of cash in the reverse direction
e) Flow of materials in the forward direction, cash in the reverse direction and
information in both the directions
Q6. The objective of a supply chain is:

a) to improve the efficiency across the whole supply chain

b) to improve responsiveness across the whole supply chain
c) to improve the efficiency and responsiveness across the whole supply chain
and also deliver improved value to the customers
d) to improve the responsiveness across the whole supply chain and deliver
improved value to the
customers
Q7. Which of the following statements is true?

a) Dell supply chain is both highly efficient as well as highly responsive.

b) Dell supply chain believed in medium-term relationship with the
suppliers with loosely held supplier network.
c) Ford supply chain is both highly efficient as well as highly responsive.
d) Toyota supply chain believed in medium-term relationship with the
suppliers with loosely held supplier network.

Q8. In today’s supply chain, there has been a shift in the power structure in a chain
towards

a) Manufacturers
b) Third-party logistics service providers
c) Distributors
d) Retailers

Q9. Which of the following statements is true regarding outsourcing?

a) Higher level of outsourcing enables a firm to have better control on all outsourced
activities.
b) Higher level of outsourcing makes a firm more vulnerable to outside influences.
c) Higher level of outsourcing enables a firm to outsource core activities to other
competent players.
d) Higher level of outsourcing enables a firm to outsource non-core activities to other
competentplayers.
e) Higher level of outsourcing enables a firm to outsource non-core
activities to other competent players and also enables the firm to have
better control on all outsourced activities
f) Higher level of outsourcing enables a firm to outsource non-core activities to
other competent players, However, it makes the firm more vulnerable to
outside influences
Q10. If the focus of a retailer is to achieve leadership in cost, then which of the following
phenomenon willhold good?

a) Customers will like to have convenience and the retailers will also set up a
number of stores atdifferent locations in order to provide convenience to the
customers.
b) Customers will prefer a large variety of products and the retailer will also
keep a large variety in the store in order to satisfy customer needs.
c) Customers will prefer a large variety of products but the retailer will not
 keep a large variety in the store in order to achieve economies of scale.
d) Customers will prefer short lead time for their products and the retailer
will keep higher amount of inventory in order to satisfy customer needs in
time.
Q11. Toyota supply chain is characterized by

a) Long-termrelationship with the suppliers

b) Individual customization
c) Vertical integration
d) Loosely-held
supplier networks Q12.
One criticism of
outsourcing is that:
a) there are delays in meeting the demand
b) the interaction bears no flexibility
c) product quality suffers
d) the price paid by the
customer is very highQ13. Dell
supply chain is characterized by
a) Long-term relationship with the suppliers
b) Vertical integration
c) Lean production systems
d) Individual customization

Q14. Which of the following statements is true?

a) A 3PL company is a professional logistics service provider meeting the logistics

requirements of an organization and can also integrate its resources, capability,
and technology in order to provide comprehensive solution to its customers.
b) A 4PL company is a professional logistics service provider meeting the logistics
requirements of an organization and can also integrate its resources, capability,
and technology in order to provide comprehensive solution to its customers.
c) A 3PL company is a professional logistics service provider meeting only the
logistics requirements of an organization.
d) A 3PL is a logistics service provider meeting only the logistics requirements of an
organization while 4PL is a logistics service provider meeting the logistics
requirements of an organization and can also integrate its resources, capability
and technology to provide comprehensive solution to its customers.
Q15. Which one of the following is not the supply challenge being faced by the Indian
organizations?

a) Smaller pack sizes

b) IT implementation
c) Poor infrastructure
d) Complex distribution structure

Q16. The two underlying reasons for outsourcing are:

a) personal benefits and network access
b) economies of scope and quality concerns
 c) hedging and cultural diversity
d) economies of scale and lower wage costs
Q17. Outsourcing is used by an organization in the interest of:

a) lowering firm costs or to make more efficient use of worldwide

labour, capital, technology and resources
b) making more efficient use of worldwide labour, capital, technology and resources
c) redirecting or conserving energy directed at the competencies of a particular business
d) any of the above

Q18. Which of the following is not a component of 4PL?

a) Control Room (Intelligence)

b) Resource Providers
c) Information
d) Recycling

Q19. An organization that established a strategic relationship with their client to offer
management and oversight services for the client‟s logistics and transportation
providers is known as a:

a) Third-party logistics
b) Trade organization
c) Fourth-party logistics
d) Independent agent

Q20. Developing countries‟ such as China or India benefit from the

patronage of companies that outsource to them in terms of:

a) increased wages
b) job prestige and education
c) increased quality of life
d) All of the above

Q21. Which of the following is not an example of subcontracting?

a) Simple subcontracting
b) Vertical subcontracting
c) Strategic development subcontracting
d) Expanded
subcontracting Q22. The
fiverelationship phases are:
a) awareness, contact, planning, commitment and dissolution
b) exploration, expansion, commitment, exploitation and dissolution
c) awareness, exploration, expansion, commitment and dissolution
d) awareness, exploration, exploitation, commitment and re-negotiation
Q23. The marriage metaphor is:

a) what prevents companies from having more than one supplier

b) the mutual dependency between firms forcing them to continue a relationship
c) psychological sunk cost
d) the process of reducing the psychic distance + increasing dependence between buyer
and seller
Q24. Reverse marketing is:

a) Internet marketing
b) where buyers invest in the seller‟s firm e.g. through crowd funding
c) where the buyer is doing marketing campaigns for the seller
d) where the buyer takes the initiative in searching for a supplier that is able to fulfill
their needs

Q25. In software the three types of know-how are:

a) software know-how, organizational know-how, financial know-how

b) customer know-how, end-user know-how, programming know-how
c) technology know-how, project know-how and management know-how
d) hardware know-how, software know-
how, project know-howQ26. Outsourcing is
a) Exporting
b) Importing
c) A firm having someone else do part of what it previously did itself.
d) Building a factoryin another country to produce for that country’s market.

27. Off shoring is

a) Substituting foreign for domestic labor.

b) Exporting
c) Importing
d) Building a factoryin another country to produce for that country’s mar

Q28. Which of the following is not one of the policies recommended for
dealing with outsourcing/ offshoring in the United States?
a) Gather more data about it.
b) Provide additional assistance to workers who lose their jobs because of it.
c) Repealany tax laws that artificially increase the practice.
d) Prohibit imports that have been produced withforeign labor.
Q29. Which of these are deciding factors for companies when deciding to outsource?
a) Demand
b) Profitability
c) Company weaknesses
d) None of these answers are correct.
e) All of these answers are correct.
Q30. Why do Companies outsource?

a) Cost Reduction
b) Focus on Core Values
c) Improved quality
d) None of these answers are correct.
e) All of these answers are correct.

Q31. 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
UNIT – 5 QUALITY

Q1. Buying according to the requirements is called …………

a) Seasonal Buying
b) Hand to mouth buying
c) Scheduled Buying
d) Speculative Buying

Q2. Which of the follow is not an example of customer service?

a) Guaranteeing delivery within specified time periods,

b) Installing the product,
c) Extending the option to sell on consignment,
d) Outsourcing financial and credit terms.

Q3. Zero defects in manufacturing is a

a) relevant goal only in electronic assembly

b) is readily achievable in all areas
c) is the goal of TQM?
d) is an unobtainable and misleading idea

Q4. According to the manufacturing-based definition of quality

a) quality is the degree of excellence at an acceptable price and the

control of variability at an acceptable cost
b) quality depends on how well the product fits patterns
of consumer preferences)

d) quality is the degree to which a specific product conforms to standard

Q5. The supply chain concept originated in what discipline

 a) marketing
b) operations
c) logistics
d) production

Q6. 'Quality is defined by the customer& is

a) An unrealistic definition of quality

b) A user-based definition of quality
c) A manufacturing-based definition of quality
d) A product-based definition of quality
Q7. The supply chain management philosophy emerged in which decade

a) 1960s
b) 1970s
c) 1980s
d) 1990s

Q8. A encompasses all activities associated with the flow and transformation
of goods from the raw material stage through to the end user as well as the
associated information flows.
a) production line
b) supply chain
c) marketing channel
d) warehouse

Q9. Which one of the following is not a typical question dealt with by operations managers?

a) How much capacity will be needed in the months ahead?

b) What is a satisfactory location for a new facility?
c) How to motivate employees?
d) All are typical of operations decisions

Q10. Which of the following are not key attributes of supply chain management?

a) inventory control
b) leveraging technology
c) customerpower
d) all are keyattributes

Q11. Positive long-term relationships between supply chain participants refer to

a) Co – operations
b) tailored logistics
c) partnerships
d) supply chain management
Q12. Which one of the following best represents pure goods?

a) Soap
b) Fast food
c) Attending a play
d) Vehicle
repair Q13. The
bullwhip effect:
a) is an ineffective way to motivate warehouse employees?
b) Applies to rodeos and has nothing to do with supply chain management
c) refers to the “swaying” motion associated with triple trailers
d) Refers to variability in demand orders among supply chain participants.
Q14. According to the manufacturing-based definition of quality

a) "quality is the degree of excellence at an acceptable price and the control of variability
at
b) an acceptable cost"
c) quality depends on how well the product fits patterns of consumer preferences
d) Quality is the degree to which a specific product conforms to standards
Q15. What is a perfect order?

a) Simultaneous achievement of relevant customer metrics

b) an order that arrives on time
c) an order that arrives undamaged
d) An order that is easy for the
receiver to fillQ16. Total Quality
Management emphasizes
a) the responsibility of the Quality Control staff to identify and solve all quality-related
problems
b) A commitment to quality that goes beyond internal company issues to suppliers and
customers
c) A system where strong managers are the only decision makers
d) A process where mostly statisticians get involved

Q17. Which of the following is not one of the major categories of costs associated with
quality?

a) prevention costs
b) appraisal costs
c) internal failures
d) None of the above, they are all major categories of costs associated with quality
Q18. All of the following costs are likely to decrease as a result of better quality except

a) customer dissatisfaction costs

b) Maintenance costs
 c) scrap costs
d) warranty and service costs

Q19. A successful TQM program incorporates all of the following except

a) continuous improvement
b) employment involvement
c) benchmarking
d) Centralized decision making authority

Q20. A worker operates a shear press. She notices that the metal sheets she is cutting
have curled edges. Who should get the first "shot" at solving the problem?
a) the foreman
b) A member of the Quality Control department
c) the operator herself
d) the employee's supervisor
Q21. A recent consumer survey conducted for a car dealership indicates that, when
buying a car, customers are primarily concerned with the salesperson's ability to
explain the car's features, the salesperson's friendliness, and the dealer's honesty.
The dealership should be especially concerned with which dimensions of service
quality?
a) communication, courtesy, and credibility
b) competence, courtesy, and security
c) competence, responsiveness, and reliability
d) Communication, responsiveness, and reliability

Q22. Which came last in the development of manufacturing techniques?

a) Lean production.
b) Division of labor.
c) Mass production.
d) Craft production.

Q23. Quality is conformance to specifications”-This definition of quality is from point of view

of

a) Customer
b) Manufacturer
c) Quality Circle Forum
d) TQM
 Q24. Quality is both quantitative and

a) Supportive
b) Qualitative
c) Measurable
d) Conclusive

Q25....................................Is the provision of service to customers before, during and after

a purchase?

a) Customer Service
b) Product Management
c) Purchase management
d) None of the above

10 marks Questions

 Explain the role of transportation in the logistics management and supply chain management
 Explain the role of logistic manager.
 Explain the history and evolution of logistics.
 Explain different modes of transportation and its advantages and disadvantages.
 Briefly explain Logistics management.
 Explain the types of inventory.
 Explain the objectives of logistics management
 Explain the components of physical distribution
 Advantages of outsourcing to 3pls
 Importance of supply chain management
 Principles of Logistics
 Explain the components of supply chain
 Role of manager in supply chain
 What are the different modern logistics infrastructures that are available for companies?
 What are the factors based on which we decide the agency to whom we should outsource
logistical activities?
 What is the importance of logistics in a country like India?
 Importance of supply chain management
 Objectives of materials management
 Explain the procedure followed to select and evaluate suppliers
 Explain the important functions of packaging
 What are the different material handling equipment?
 What are the objectives of material handling?
 Explain the key drivers of reverse logistics

 Explain the types of logistics

 What are the functions of logistics management?
 What is the definition of quality, and how does it relate to comparing goods or services?
 Explain the concept of customer service and why it's important for businesses.
 List and describe at least three customer service skills mentioned in your notes.
 What is the significance of empathy in customer service, and how can it be practiced?
 Describe the importance of logistics and maintenance support planning in the context of
distribution.
 In distribution, what is the role of intermediaries in indirect channels, and how are they
categorized?
 Give examples of products or industries that might benefit from a direct channel distribution
strategy.
 What is dual distribution, and under what circumstances might a company choose to
implement it?
 How has the internet changed the distribution of goods and services, and what role do online
marketplaces play in this change?
 Why is international marketing becoming increasingly important for companies? What are
the key factors driving this shift towards global markets?
 Explain how globalization impacts consumer needs and trade liberalization. How does
it affect the competitive advantages of companies in the international market?
 How does customer demand for quality, lead time, and order fulfilment impact the way
companies must operate in the global marketplace?
 Discuss the role of logistics in international marketing and its significance in the timely
delivery of goods. Why is timely delivery so crucial in international trade?
 How has the concept of logistics evolved from the past, where various functions were
not viewed as components of a single system, to its current importance as a part of
corporate strategy?
 Provide the definition of logistics as per the Council of Logistics Management and explain the
key elements included in this definition.
 How does logistics play a role in ensuring that products and services reach their
destination when and where they are needed?
 What are some challenges and complexities associated with logistics, especially in
the context of international operations?
 Discuss the concept of international logistics as presented in the twelfth edition of
"Contemporary Logistics" by Paul R. Murphy and A. Michael Knemeyer. What key points
are highlighted in this source?
 15 marks Questions

1. Critically review the current trends in retail logistics with live industry example from Indian
companies.
2. Choose a successful Indian company of your choice which has got a phenomenal
reach in rural markets and explain its supply chain management and outbound logistics
operation in a detailed manner.
3. Elucidate the Recent trends in logistics network with suitable examples
4. A logistics manager for TV Producer in South Korea has been given the responsibility
for setting up a logistics Information system for his company? How would you answer
his questions below? a) What types of information do?
I want from the information system? Where would I obtain the information? b) Which
items in the information database should I retain in the computer for easy access? How
should I handle the remainder?

5. “Use of new technologies will help in effective asset utilization in logistics supply chain”-
Discuss

6. What is inventory? What are various objectives of it?

7. Explain the types of warehouse in detail. Discuss the role of warehouse in reverse logistics.

8. Explain Warehousing Functions with an example.

9. Logistics is the key to the success of supply chain of a retail organization – Explain

10. Explain the concept of 3PL and 4PL in detail. Elucidate 3PL and 4PL types in detail.

11. How would you summarize, packaging play an important role in retail logistics?
Explain its scope and opportunities with examples.

12. Explain the concept of customer service from a logistics/supply chain perspective?

13. What are the various steps involved in achieving customer satisfaction in Supply Chain
Management?

14. Define logistics management and explain its features? What is competitive advantage? How do
you gain the competitive advantage through logistics?

15. Explain various global strategies for purchasing the raw materials?

16. How can an organization gain competitive edge with the help of Logistics?

17. With help of relevant examples explain various functions of logistics

18. Trace the evolution of Supply chain

19. What are the various customer service elements?

20. Explain the 7Rs of logistics with help of examples

21. Explain the need of having a warehouse

22. What are the economic and service benefits of having a warehouse?

******************************************END************************************************