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    january 2016

    Practice Questions

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    Practice Questions Supply Chain Management

    1 The coordination of all supply activities of an organisation from its suppliers and partners to its

    customers is referred to as:

    A.  Efficient customer response

    B.  Supply and demand coordination

    C. 

    Supply chain networkD.  Supply chain management

    2 An appropriate strategy to achieve the objective of optimising the productivity of retail space

    and inventory is:

    A.  Efficient store assortments

    B.  Efficient replacement

    C.  Integrate this activity into all supply chain planning

    D.  Revision of organisation processes supported by information systems

    3 Supply chain is based on customer responsiveness. What is customer responsiveness in relationto supply chain?

    A.  Tactical aim

    B.  Operational aim

    C.  Strategic aim

    D.  Performance evaluation

    4 Supply chain management is all about designing and planning out the overall architecture of the

    supply chain network and the value adding flows that go through it.

    The key contents of such architecture design and planning includes all of the following except:A.  Extent of vertical integration

    B.  Configuration

    C.  Strategic outsourcing

    D.  Marketing strategies

    5 In considering a simple model of a supply chain, the correct sequence of an organisation's

    supply chain from a systems perspective is:

    A.  Transformation process, acquisition of resources, delivery to customers

    B.  Transformation process, delivery of resources, acquisition of resources

    C.  Delivery to customers, acquisition of resources, transformation process

    D.  Acquisition of resources, transformation process, delivery to customers

    6 Retrospectively supply chain management concept was implied as:

    A.  Purchasing and cost reduction activities

    B.  Purchasing activities

    C.  Cost reduction activities

    D.  Value added activities

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    Practice Questions Supply Chain Management

    7 Services can be classified in several ways. Which of the statements below is correct?

    A.  A popular way to classify services is based on their physical characteristics

    B.  The classification that distinguishes contact intensity, identifies three different services:

    professional services, service shop and mass services

    C. 

    The way in which a service is classified determines how the customer and supplier shouldinteract, after the contract has been closed

    D.  All the statements above are correct

    8 Services are differentiated from goods by four basic characteristics. Which of the statements

    below is not correct?

    A.  Intangibility relates to the fact that services cannot be touched

    B.  Homogeneity implies that service (exchange) can be standardized

    C.  Simultaneity relates to the fact that services are produced and consumed at the same time

    D.  Perishability, relates the fact that once a service is consumed it vanishes

    9 Which of the following is not thought to be the rationale for the radical changes in traditional

    business and modern business environment?

    A.  Heightened customer expectation

    B.  Globalisation

    C.  Popularity of outsourcing

    D.  Geopolitical factors

    10 Which of the following definition of supply chain is most appropriate :

    A.  A group of inter-connected participating companies that add value to a stream of

    transformed inputs from their source of origin to the end products or services that are

    demanded by the designated end-consumers

    B.  A group of inter-connected participating companies that add value to a stream of

    transformed inputs from market to the end products or services that are demanded by the

    designated end-consumers

    C.  A group of inter-connected autonomous departments that add value to a stream of

    transformed inputs from their source of origin to the end products or services that are

    demanded by the designated end-consumers

    D.  A group of inter-connected groups of companies that add value to a stream of transformed

    inputs from their source of origin to the end products or services that are demanded by the

    parent company

    11 Which of the following flows DOES NOT belong to the intrinsic flows of supply chain?

    A.  Data flow

    B.  Information flow

    C.  Commercial flow

    D.  Finance flow

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    Practice Questions Supply Chain Management

    12 Supply chain is usually viewed as a chain that has distinct characteristics than group of

    companies.

    Which of the following does not have resemblance with such characteristics?

    A. 

    There has to be more than one participating companiesB.  There is independence between the participating companies

    C.  Ownership is normally separate

    D.  Participating companies acts as middle companies despite adding value to products or

    services

    13 Which of the flows mentioned below may represent major areas of concerns and research

    activities in the supply chain management?

    A.  Material flow, information flow, finance flow, commercial flow

    B.  Material flow, information flow, resource flow, command flow

    C. 

    Material flow, information flow, finance flow, commercial flowD.  Material flow, information flow, decision flow, commercial flow

    14 A chocolate manufacturing supply chain will have the cocoa plucked from cocoa plantation

    been transformed through the chain and end up to a pack of ‘CADBURY’ chocolate ties the

    whole supply chain together and define its clear boundary.

    Which of the following intrinsic values represent the above situation?

    A.  Material flow

    B.  Information flow

    C. 

    Finance flowD.  Commercial flow

    15 The intrinsic flow that can run in both directions, i.e. upstream and downstream alike, is which of

    the following:

    A.  Material flow

    B.  Information flow

    C.  Finance flow

    D.  Commercial flow

    16 There are options for restructuring the supply chain. A characteristic of vertical integration is:

    A. 

    Total reliance on linked third parties

    B.  Close relationships with suppliers

    C.  Majority of manufacture is in-house

    D.  Majority of manufacture is outsourced

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    Practice Questions Supply Chain Management

    17 The typical aim of the pull from customer approach to supply chain management is:

    A.  To improve costs of distribution

    B.  Enhance product and service quality

    C. 

    Optimise the production process for cost and efficiencyD.  Promote information sharing between supply chain members

    18 Single entity perspective of a supply chain is a very useful foundation for supply chain

    integration and collaboration. State which one of the following intrinsic flows of a supply chain

    represents the single entity concept?

    A.  Material flow

    B.  Information flow

    C.  Finance flow

    D.  Commercial flow

    19 Within an organisation, material flows from one process to another but as no ownership

    changes there is no ____________ flow.

    A.  Material flow

    B.  Information flow

    C.  Finance flow

    D.  Commercial flow

    20 Is the end-consumer a part of the supply chain?

    A.  Yes, because consumer give the demand information

    B.  Yes, because consumer provide the final reward

    C. 

    No, because consumer is the recipient of supply

    D.  Yes, because design information flow comes from consumer

    21 Which one of the following is not a part of the conceptual components of supply chain

    management?

    A.  Supply chain configuration

    B.  Supply chain relationship

    C.  Supply chain coordination

    D.  Supply chain framework

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    Practice Questions Supply Chain Management

    22 Quality filter mapping is a tool used in supply chain management strategies. Which of the

    following is INCORRECT regarding to quality filter mapping?

    A.  It is a tool designed to identify quality problems in the order fulfillment process or the

    wider supply chain

    B.  The result of a Quality Filter Map shows how much waste is being generated within an

    organisation at each stage of the process.

    C.  It is a tool designed to justify and prioritise quality problems in the order fulfillment process

    or the wider supply chain.

    D.  Results of Quality Filter Mapping are commonly used to feed into continuous improvement

    plans.

    23 Supply chain configuration is about how a supply is constructed from all its participating firms.

    Following are the factors that shape any particular supply chain, except:

    A. 

    Downstream distribution channel

    B.  Quantity of OEM’s operations outsourced 

    C.  Extent of vertical integration

    D.  NPI process and detailed financial information

    24 A key characteristic of _________ supply chain is flexibility, which should be interpreted from two

    side of supply chain.

    A.  global

    B.  lean

    C.  agile

    D. 

    stable

    25 Key performance indicator of agile supply chain operating environment is distinctly different

    from any other supply chain, for example lean supply chain operating environment.

    Which of the following is not a key performance indicator relevant for agile supply chain

    operating environment?

    A.  Delivery lead time

    B.  Frequency of product up-grading

    C.  Service innovation and flexibility

    D. 

    Number of product lines on stockout as percentage of total product lines

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    Practice Questions Supply Chain Management

    26 Which is FALSE for outsourcing?

    A.  Outsourcing is relatively simple to understand as a concept, but is difficult to implement in

    practice. 

    B.  Outsourcing specific functions are viewed as critical for controlling costs

    C.  The functions that will see the greatest increase in outsourcing are product development,

    supply chain planning and shared services

    D.  Outsourcing is relatively complex to understand as a concept, but is difficult to implement in

    practice. 

    27 _______________, hardworking, well educated workforce and loyalty to the company become part

    of the organizational culture.

    A.  High motivation

    B.  High remuneration

    C. 

    High commitment

    D.  Good working environment

    28 The process flow concept helps to see and understand the value stream of the ___________ and

    the supply chain.

    A.  manufacture

    B.  work-in-progress

    C.  finished goods

    D.  production

    29 Much of the supply chain design is determined by the extent of vertical integration. Which one

    of the following is the appropriate definition of vertical integration?

    A.  Vertical integration is defined as the single ownership of consecutive activities along the

    supply chain.

    B.  Vertical integration is defined as the group of consecutive activities along the supply chain.

    C.  Vertical integration is defined as the sequential activities along the supply chain

    D.  Vertical integration is defined as the schedule of consecutive activities along the supply

    chain.

    30 Bullwhip effect refers to a supply chain-wide phenomenon that modest change of customer

    demand is distorted and amplified toward the upstream end of the supply chain resulting in

    large variations of orders placed upstream. Basically the bullwhip effect has number of

    characteristics.

    Which of the following is not a bullwhip characteristic?

    A.  Oscillation

    B.  Amplification

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    Practice Questions Supply Chain Management

    C.  Dynamic

    D.  Phase lag

    31 The agile supply chain is essentially a practical approach to managing customer networks and

    developing ___________ capabilities to satisfy the fast changing customer demand.

    A. 

    RequiredB.  Flexible

    C.  Probable

    D.  Rigid

    32 Consider the following statements:

    i.  An OEM operates through a layered suppliers and distributers with medium and long-term

    stability

    ii.  An OEM operates short-term stability and uses un-tiered suppliers and distributors.

    Which of the above statement regarding supply chain configuration, when observed fromnetwork relationship perspective, is appropriate?

    A.  (i) = Dynamic network; (ii) = Stable network

    B.  (i) = Stable network; (ii) = Dynamic network

    C.  (i) = Stable network; (ii) = Stable network

    D.  (i) = Dynamic network; (ii) = Dynamic network

    33 ______________ develop and make use of employee’s intellectual assets and everyone is

    encouraged to make improvement suggestions. Which of the following best fill the gap?

    A.  Just-in-time manufacturing

    B.  Customer oriented manufacturing

    C.  Lean manufacturing

    D.  Original equipment manufacturing

    34 Supplier selection involves a number of steps. Which of the following steps is not part of the

    supplier selection process?

    A.  Determining a bidders’ list 

    B.  Determining an order procedure

    C.  Comparison of the offers

    D.  An e-auction

    35 Sharing of subcomponents across the product lines will lead to effective management of

    inventories, consistent supplies and operational cost savings and can be achieved through which

    of the following?

    A.  Products and material standardisation

    B.  Hiring well-trained shop floor operators

    C.  Hiring well-educated factory supervisor

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    Practice Questions Supply Chain Management

    D.  Synchronising full operational activities

    36 ‘Mckinsey 7S framework’ is a model of organizational effectiveness that can be used for

    transforming the organisation. To achieve a customer-centric supply chain, one of the elements

    inclusive in ‘Mckinsey 7S framework’ has been explained as: 

    “Customer service and customer value must be enshrined in the core organisational value; it

    should become the culture and second nature for people to act on anything relate to the

    customer and end-consumer at the highest priority”.

    Which of the following suits the above explanation?

    A.  Strategy

    B.  Structure

    C.  Systems

    D.  Shared value

    37 ‘Mckinsey 7S framework’ is a model of organizational effectiveness that can be used for

    transforming the organisation. To achieve a customer-centric supply chain, one of the elements

    inclusive in ‘Mckinsey 7S framework’ has been explained as: 

    “The leadership style adopted must fit the culture of customer orientation and customer-centric.

    The leaders and management team should ‘walk the talk’ and become the role model in caring

    about the customer”. 

    Which of the following suits the above explanation?

    A.  Style

    B.  Staff

    C.  Skills

    D.  Shared values

    38 ‘Mckinsey 7S framework’ is a model of organizational effectiveness that can be used for

    transforming the organisation. To achieve a customer-centric supply chain, one of the elements

    inclusive in ‘Mckinsey 7S framework’ has been explained as:

    “The employee and their capabilities are the assets of the organisation. People are the only active

    force in caring and serving the customer. The change of organisational performance is almost

    entirely dependent on the changes of people’s understanding, knowledge and attitude”. 

    Which of the following suits the above explanation?

    A.  Style

    B.  Staff

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    Practice Questions Supply Chain Management

    C.  Skills

    D.  Systems

    39 ‘Mckinsey 7S framework’ is a model of organizational effectiveness that can be used for

    transforming the organisation. To achieve a customer-centric supply chain, one of the elements

    inclusive in ‘Mckinsey 7S framework’ has been explained as: 

    “The quality of the products, the level of customer satisfaction, rely on the skills of the workforce,

    which in turn determines the organisation’s and supply chain’s competences in delivering the

    products and services”. 

    Which of the following suits the above explanation?

    A.  Strategy

    B.  Structure

    C.  Systems

    D.  Skills

    40 ‘Mckinsey 7S framework’ is a model of organizational effectiveness that can be used for

    transforming the organisation. To achieve a customer-centric supply chain, one of the elements

    inclusive in ‘Mckinsey 7S framework’ has been explained as: 

    “From the top of the organisation a customer oriented strategy must be drawn and put to be

    communicated throughout the organisation. The strategy must include how the organisation

    should align its strategy with the suppliers and customers to have the visibility and

    responsiveness to the end-consumers’ demand”. 

    Which of the following suits the above explanation?

    A.  Strategy

    B.  Structure

    C.  Systems

    D.  Shared values

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    Practice Questions Supply Chain Management

    41 ‘Mckinsey 7S framework’ is a model of organizational effectiveness that can be used for

    transforming the organisation. To achieve a customer-centric supply chain, one of the elements

    inclusive in ‘Mckinsey 7S framework’ has been explained as: 

    “For the organisation, horizontal dynamic structure that aligned to products and market segment

    is more preferred that the vertical hierarchical reporting lines; for the supply chain, networked

    flexible structure with small span of vertical integration is more responsive to the customer

    demand”. 

    Which of the following suits the above explanation?

    A.  Strategy

    B. 

    Structure

    C.  Systems

    D.  Shared values

    42 Logistics ________ ________is a complement to the supply chain response matrix.

    A.  conceptual map

    B.  component map

    C.  pipeline map

    D.  statistical map

    43 Lean production structure depends on which of the following factorsA.  Pricing

    B.  Quantity

    C.  Delivery

    D.  Consistent supplier

    44 What type of partnership generally tends to be adversarial?

    A.  Remote

    B.  Small

    C.  Large

    D. 

    Close

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    Practice Questions Supply Chain Management

    45 Consider the following statements concerning the ‘Triple- A’ supply chain model.

    I.  An organisation and its supply chain can embark on major strategic changes in technology,

    market positioning, radical skill upgrading and competence shift.

    I.  A supply chain has been structured as such that it remains stable and align all the

    complimentary resources.

    Which of the following combination regarding the above statement is appropriate?

    A.  Statement (i) = Adaptability; Statement (ii) = Alignment

    B.  Statement (i) = Adaptability; Statement (ii) = Agility

    C.  Statement (i) = Alignment; Statement (ii) = Adaptability

    D. 

    Statement (i) = Agility; Statement (ii) = Alignment

    46 'The processes of transforming raw materials to finished product delivered to customer's refers

    to:

    A.  The physical transformation task

    B.  The problem-solving task of value stream management

    C.  The information task

    D.  Value generation

    47 Reliance on linked third parties, close relationships with suppliers defines:

    A. 

    Vertical integrationB.  Virtual integration

    C.  Vertical disintegration

    D.  None of the above

    48 One choice for an organizers vertical integration strategy related to 'The balance among the

    vertically integrated stages' is:

    A.  To what extent does each stage of the supply chain focus on supporting the immediate

    supply chain?

    B.  How far should the company take downstream or upstream vertical integration?

    C. 

    Should the company aim to direct ownership at the upstream or downstream supply chainD.  None of the above

    49 In a facility environment, a gap exists between the expectations of the internal client and the

    purchasing department. Which of the statements below is correct?

    A.  The purchasing department considers timely delivery as a critical factor

    B.  The internal client considers quality as a critical factor

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    Practice Questions Supply Chain Management

    C.  The internal client considers a fast response time and feedback as a critical factor

    D.  The purchasing department considers flexibility and high accessibility as critical factors

    50 Consider the statements below about the improvement of customer orientation of the (internal)

    purchasing department:

    I.  In order to improve the service orientation of a purchasing department, the following steps

    should be taken:

    1.  Analyze and document internal customer/product category combinations step-by-step.

    2.  Target setting.

    3.  Set up cross-functional buying teams and organizational structure.

    4.  Develop sourcing strategies.

    5. 

    Implementation.

    II.  When a purchasing department does not live up to the expectations of the internal

    client, internal clients may start doing their own purchases.

    A.  Both statements are correct.

    B.  Both statements are incorrect.

    C.  Statement I is correct and Statement II is incorrect.

    D.  Statement I is incorrect and Statement II is correct.

    51 If observed carefully, one should realise that supply chain management is merely a part of

    _________.A Finance

    B Marketing Management

    C Operations Management

    D Human Resource Management

    52 The term ‘supply chain management’ first appeared in ______. 

    A 1960s

    B 1970s

    C 1980s

    D 1990s

    53 Which is/are the most important goal of Supply Chain Management?

    A Cost reduction

    B Supplier selection

    C Customer satisfaction

    D Both A and C

    54 What do you mean by OEM?

    A Original Equipment Manufacturer

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    Practice Questions Supply Chain Management

    B Original and Essential Market

    C Order Entry Mail

    D Ordered Equipment Manufacturer

    55 Which flow is not an important factor for managing supply chains?

    A Commercial flow

    B Finance flow

    C Marketing flow

    D Information flow

    56 The fundamental objective of Supply Chain Management is to _______.

    A increase sales

    B decrease cost

    C add valueD create demand

    57 The supply chain is composed of three parts

    A Upstream-Middlestream-Downstream

    B Upstream-Internal supply chain-Downstream

    C Material-Information-Money

    D Supplier-Contractor-Buyer

    58 Upstream side includes ____________.

    A distributors and customers

    B duppliers and their suppliers

    C the procurement departmentD customers

    59 Downstream components include __________.

    A customers

    B suppliers

    C subcontractors

    D shareholders

    60 For the internal supply chain, Materials Management is composed of _________.

    A purchasing

    B distribution and transportationC purchasing and Stock control

    D operations

    61 In a supply chain how can you relate logistics and distribution?

    A Logistics is a part of distribution

    B Distribution is a part of logistics

    C Logistics and distribution are part of procurement

    D Logistics is an upstream activity to distribution

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    62 There are four major decision areas in supply chain management:

    A 1) supplier, 2) production, 3) inventory, and 4) transportation (distribution)

    B 1) location, 2) production, 3) warehouse, and 4) transportation (distribution)

    C 1) location, 2) production, 3) inventory, and 4) transportation (distribution)

    D 1) location, 2) factory, 3) processing, and 4) transportation (distribution)

    63 Holding of inventories can cost anywhere between _________ percent of their value.

    A 20 to 40

    B 30 to 50

    C 10 to 20

    D 40 to 50

    64 Shipping by sea or rail may be much cheaper, but they necessitate

    A very effective supply chain manager.

    B holding large inventory due to inflexible schedule.

    C make the process fast.D special arrangement for packaging.

    65 Which is NOT of the functions that are most difficult to bring under the umbrella of Supply

    Chain Management are:

    A Master production planning

    B Sales forecasting

    C Third party invoice payment/audit

    D Procurement of materials

    66 Now two major trends are benefiting Supply Chain Management operations. These are

    A Customer service focus and robot technology

    B Customer service focus and Information technologyC Process management focus and Information technology

    D Customer service focus and diversification

    67 Which is not a trend of Supply Chain Management in development

    A From single enterprise to extended enterprise

    B From operational to strategic viewpoint

    C From consumer to customer viewpoint

    D From local to regional, and from regional to global

    68 Which is not an area where supply chain management can have a direct effect on corporate

    valueA Fixed-capital efficiency

    B Working-capital reductions

    C Inventory turnover reduction

    D Global tax minimisation

    69 The Kearney consultants found that supply-chain inefficiencies could waste as much as ____

    percent of a company's operating costs.

    A 20

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    Practice Questions Supply Chain Management

    B 25

    C 30

    D 35

    70 Through the use of a third-party SCM provider, Nabico was able to consolidate six multi-vendor

    loads into two truckloads. This is an example of

    A Shipment consolidation

    B Distribution network optimisation

    C Cross docking

    D Supplier management

    71 Improvement of which of the below is not a reason of globalisation?

    A Telecommunication

    B InternetC Free trade

    D Customer focus

    72 Usually the activities in latter stages of the supply chain are

    A Manufacturing oriented

    B Security oriented

    C Customer oriented

    D Service oriented

    73 Usually the activities in early stages of the supply chain are

    A Manufacturing oriented

    B Technology orientedC Service oriented

    D Customer oriented

    74 For a global supply chain, which of the below is the final thing you need to manage?

    A border crossings

    B multiple hand-offs

    C information

    D uncertainty

    75 Sheffi and Peters both agree that there are certain elements that are required to manage any

    supply chain regardless of whether it’s domestic or global.

    Which of the below is NOT one of that element?

    A Cost

    B Visibility

    C Technology

    D Flexibility

    76 “You need to know where the goods are,” - this is

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    A Technology

    B Customer focus

    C Visibility

    D Value

    77 Which is the greatest challenge for global supply chain

    A Managing the movement of goods

    B Managing the movement of customers

    C Managing the movement of fund

    D Managing the movement of Information

    78 With supply chain management in place, organisations can -

    A increase productivity

    B maximise cost-efficiency

    C increase profitD All available options

    79 Which of the below is not generally covered by the functionality of a supply chain software?

    A Order Management

    B Accounts Management

    C Return Management

    D Forecasting and Planning

    80 Good inventory management minimises

    A Overhead cost

    B Storage cost

    C Transportation costD Sales cost

    81 Using software to effectively use procurement can -

    A Better assess and manage vendors' performance

    B Build stronger relationships with vendors

    C None

    D Both

    82 Return management with supply chain management software in place automate the processing

    of claims with

    A SuppliersB Distributors

    C Insurance companies

    D All available options

    83 Which of the below is not one of the Five Most Common Supply Chain Management Challenges

    in a global supply chain according to Supply Chain Council (SCC)?

    A Unable to apply the right metrics to manage supply chains effectively

    B Difficulty prioritising supply chain improvement efforts

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    C Complexity of supply chains

    D Supply chain integration

    84 What do you mean by complexity of supply chain?

    A Difficulty to understand a supply chain

    B When information sharing is difficult

    C When variety of product, customer, supplier etc. is high

    D When the SCM department is situated in a complex

    85 Metrics are used to measure the performance of something. The problem of finding and

    implementing the right metrics in supply chain management includes -

    A agreeing on definitions and calculation of right metrics

    B having too many metricsC difficulty in coordination

    D difficulty in benchmarking

    86 Why finding good supply chain talent is challenging?

    A Supply Chain Management is a dull subject

    B SCM requires all round multiple discipline knowledge

    C Good universities do not teach SCM

    D SCM talents hide themselves

    87 Dimensions of global supply chain management challenges are

    A Logistics-Procurement-Technology-Time

    B Market-Finance-Operations-HRMC Market-Technology-Resource-Time

    D Market-Information-Customer-Finance

    88 Market dimension challenge comes from

    A Fluctuation of demand

    B Marketing related constraints

    C Natural calamities and political violence

    D Logistics shortcomings

    89 If the challenge of time dimension is not handled properly

    A Cost increasesB Profit increases

    C Sales decreases

    D Both A and C

    90 Outsourcing or strategic outsourcing is commonly known as the

    A “make-or-buy” decision 

    B “take-or-give” decision

    C “plan-or-source” decision 

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    D “in-or-out” decision 

    91 Which is not a benefit of outsourcing a business process?

    A Focus on core areas

    B Save on infrastructure and technology

    C Access to skilled resourcesD Increasing the sales of products

    92 Which of the below is not a risk involved with offshore outsourcing?

    A Poor communication

    B Incorrect setting of expectations

    C Disconnected control structures

    D Increase of cost of production

    93 Due to Bullwhip effect-

    A Demand variability becomes magnified

    B High buffer inventory builds up

    C Results in poor customer serviceD All available options

    94 Toyota Production System (TPS), now more commonly known as lean manufacturing. Which of

    the below is the main goal of both lean manufacturing and TPS?

    A Making the organisation lean and small

    B Cost reduction by the elimination of waste

    C Increase of sales by more customer focus

    D Outsourcing most of the tasks to increase value

    95 Lean manufacturing was designed and implemented

    A In a short period

    B In a long periodC From a book written by Takahashi Toyoda

    D In a purpose built factory

    96 Which one is NOT a disadvantage of mass production over lean production?

    A Mass producer have to design the parts made by its suppliers

    B Mass producer enjoys less product uniqueness

    C Large inventories build up

    D Mass production is slow

    97 Which one is found in lean supply chain structure?

    A High outsourcing and small supply baseB Low outsourcing and small supply base

    C Low outsourcing and large supply base

    D High outsourcing and large supply base

    98 Which one is found in mass supply chain structure?

    A High outsourcing and small supply base

    B Low outsourcing and small supply base

    C Low outsourcing and large supply base

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    D High outsourcing and large supply base

    99 Which is not from 1 of the ‘10 lean supply principles’?  

    A Single or dual sourcing only

    B Early and close engagement with suppliers for NPI

    C Willingness to share a substantial part of its proprietary informationD ‘Market price plus’ rather than ‘Supplier cost plus’ 

    100 Lean producers will base its ranking and selection on a number of higher level performance

    focused criteria rather than cost, which one is not one of those criteria?

    A quality standard

    B R&D capability

    C delivery reliability

    D low price

    101 In lean supply chain, suppliers are willing to

    A share substantial amount of proprietary information with the buyer

    B share financial resources with the buyerC not share proprietary information

    D not share production facility with the buyer

    102 In lean supply chain management, cost is cut when it

    A is also a waste

    B is also a value

    C is also a burden

    D is also a risk

    103 Which one is NOT one of the key drivers of lean supply chain?

    A Demand Management

    B Process StandardisationC Engaging People

    D Economies of scale

    104 Which one is NOT a lean process mapping tool?

    A Value Stream Mapping

    B Production variety funnel

    C Quality filter mapping

    D Total quality control

    105 Which is not a reason behind the need of agility now a days?

    A The global market is variety dominatedB The market differentiator is speed and responsiveness

    C The market differentiator is cost and quality

    D Product life cycle is short

    106 In which business circumstances that the agile supply chain is worthwhile?

    A high volume, low variety and more predictable operating environment

    B low volume, high variety and more predictable operating environment

    C low volume, high variety and more unpredictable operating environment

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    D high volume, low variety and more unpredictable operating environment

    107 To a truly agile business, volatility of demand is not a problem; because

    A its management and board as well as its financial ability enable it to cope with whatever

    demands are placed upon it.

    B its processes and organisational structure as well as its supply chain relationships enable it

    to cope with whatever demands are placed upon it.

    C its values and organisational culture as well as its supply chain decisions enable it to cope

    with whatever demands are placed upon it.

    D its functions and business strategy as well as its supply chain elements enable it to cope

    with whatever demands are placed upon it.

    108 Which is not a characteristics of an agile supply chain?

    A Market sensitive

    B Virtual

    C Process integration

    D Function based

    109 Which is not one of the organisational changes that are required to make an organisation ready

    to operate in an agile supply chain?

    A Decentralised operation

    B Using ERP system

    C Building large warehouses

    D Identifying process short-cuts

    110 Strategic alliance is defined as

    A an informal or formal arrangement between two or more companies with a common

    business objective.

    B a formal merger between two or more companies with a common business objective.

    C an informal or formal arrangement between two or more companies with separate

    business objective

    D an informal or formal joint venture arrangement between two or more companies with a

    common business objective

    111 Which is not one of the objectives of forming a strategic allianceA Sharing market risks

    B Achieve economy of scale and economy of scope

    C Joint development and collaboration

    D Forming a new joint sister concern

    112 According to Vanpoucke and Vereecke, which is not one of the three important behavioural

    characteristics that affect an alliance’s performance 

    A its underlying attributes

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    B what is their objective

    C how the partners communicate

    D how they manage the relationship

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    SOLUTION

    Question Answer Question Answer Question Answer Question Answer

    1 D 31 B 61 B 91 D

    2 A 32 B 62 C 92 D

    3 C 33 C 63 A 93

    4 D 34 B 64 B 94 B

    5 D 35 A 65 D 95 B

    6 A 36 D 66 B 96 D

    7 D 37 A 67 C 97

    8 B 38 B 68 C 98

    9 C 39 D 69 B 99 D

    10 A 40 A 70 A 100 D

    11 A 41 B 71 D 101

    12 D 42 A 72 D 102

    13 C 43 C 73 A 103

    14 A 44 D 74 C 104

    15 B 45 A 75 A 105

    16 C 46 A 76 C 106

    17 B 47 C 77 D 107

    18 C 48 A 78 D 108

    19 D 49 C 79 B 109

    20 C 50 D 80 B 110

    21 D 51 B 81 D 111 D

    22 C 52 C 82 D 112 B

    23 D 53 D 83 D

    24 C 54 A 84 C

    25 D 55 C 85 C

    26 D 56 86 B

    27 C 57 B 87 C

    28 D 58 B 88 A

    29 A 59 A 89 D

    30 C 60 C 90 A