1. On of the major
challenges of supply chain management is:
a. forward buying
b. maintaining the
visibility of inventory
c. building
safety-stock inventory
d. pushing inventory back
to vendors
2. What type of environment
tends to promote strategic alliances and partnerships?
a. CPFR
b. TQM
c. EDI
d. JIT
3. The total systems cost
concept is based on?
a. logistics
efficiency
b. relationships between
elements the various elements of a distribution system
c. quality can be
impacted by use of the lowest cost system
d. product variety
4. What are the four
âlegs; of business operations which have undergone deregulation over the past
several years?
a. transportation,
financial, power, and communications
b. transportation,
financial, power, and technology
c. financial,
power, communications, and medical
d. financial, power,
communications, and technology
5. With the growing
interest in recycling and waste management, manufacturers are implementing:
a. âpushâ system
b. âpullâ system
c. Reverse logistic
systems
d. Bureaucratic
regulatory systems
6. Inventory level
reduction and inventory turnover improvement received the most attention
relative to improving:
a. asset
productivity
b. customer satisfaction
c. quality
d. time
7. In the final analysis,
the success of todayâs global supply chains is measured by?
a. order delivery
cycle
b. the value they add for
their customers
c. percentage of
orders shipped complete
d. a & b
8. The Council of
Logistics Managementâs (CLM) definition of logistics focuses attention on two
interrelated basic activities. They are:
a. supply and
demand
b. costs and services
c. movement and
storage
d. inventory and supply
9. The value that is
added to a good through a manufacturing, production, or assembly process is:
a. form utility
b. place utility
c. time utility
d. possession utility
10. The utility that is created by moving goods
form surplus points to points where demand exists is referred to as:
a. form
b. place
c. time
d. possession
11. Which is created when a product or service,
is at a point when demanded by customers?
a. form utility
b. place utility
c. time utility
d. possession utility
12. What are established spatial points where
goods stop fro storage or processing?
a. nodes
b. links
c. cost centers
d. fulfillment centers
13. The network of intermediaries engaged in
transfer, storage, handling and communication is a:
a. link
b. logistics channel
c. node
d. logistic provider
14. The inverse relationship that exits between
the cost of lost sales and inventory carrying cost is called:
a. inventory effect
b. product standard
c. customer
standard
d. company inventory
policy
15. Supply management for the plant [inbound
logistics] and distribution management for the firmâs customers [outbound
logistics] is known as:
a. functional
management
b. component support
c. common culture
d. dictionary
16. Which of the following is not a key stage of
the order fulfillment?
a. information
sharing
b. decision making
c. performance
measures
d. communications
17. Which of the following is not an example of
customer services?
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
18. Which of the following is not a recognized
definition of customer service?
a. customer service
as an activity
b. customer service as a
theory
c. customer service
as performance measures
d. customer service as a
philosophy
19. Demand management includes:
a. flows of
products
b. flows of services
c. information
about capital
d. all of the above
20. Which of the following is not considered part
of the new customer service measurement:
a. orders received
on time
b. link node selection
for order handling
c. orders received
safely
d. orders billed
correctly
21. Which of the following is not an order
management function?
a. derive logistics
strategy from financial statements
b. enter order
c. originate
shipment
d. assure continuous
improvement
22. Which of the following is not an element of
customer services:
a. time
b. dependability
c. communications
d. link-node selections
23. The expected costs of stockouts includes all
the following except:
a. back orders
b. lost sales
c. warehouse staff
downtime
d. lost customers
24. The large retailers have made significant
changes in channels of distribution. Which one of the following is
not one of the effects?
a. ECR
b. CR
c. DSD
d. JIT
25. A source of supply can operate in a perfectly
competitive market, an oligopoly, or in a monopoly market. What activity
indentifies which one it is?
a. conduct a market
analysis
b. process all possible sources
c. decide whether
to make or buy
d. choose a supplier
26. In the Item Procurement Important Matrix,
what describes low risk, low value?
a. Generics
b. Commodities
c. Criticals
d. Distinctives
27. In the Item Procurement Important Matrix,
what describes high risk, high value?
a. Generics
b. Commodities
c. Criticals
d. Distinctives
28. In the Item Procurement Important Matrix,
what describes high risk, low value?
a. Generics
b. Commodities
c. Criticals
d. Distinctives
29. What vendor selection criteria are described
by price and financial stability?
a. capacity
b. financial
c. quality
d. reliability
b, page 128
30. ______ exits for basic raw materials such as
grain, oil and sugar.
a. price lists
b. commodity markets
c. negotiations
d. price quotes
31. Total procurement price includes:
a. product price
b. transaction costs
c. transportation
costs
d. all the above
32. What is an amalgam of catalogs from vendors
availability via the Internet within a market called?
a. electronic
marketplace
b. buy-side system
c. sell-side system
d. on-line trading
community
33. Which of the following commerce models can be
viewed as an electronic auctions?
a. buy-side system
b. sell-side system
c. on-line trading
community
d. electronic marketplace
34. An inventory decision should consider safety
stock when there is a chance of _____.
a. turnover
b. over ordering
c. stockout
d. oversupply
35. What is the type of functional inventory
called that is the portion of a companyâs inventory depleted through normal
sale or use and replenished through the routine ordering process?
a. goods in process
stock
b. speculative stock
c. dead stock
d. cycle stock
36. Economy Wholesalers Co., Inc. accumulated a
stock of 100,000 crystal paperweights. For each case of Economyâs
letter size manila folders purchased, the customer would receive a
paperweight. What type o functional inventory did Economy create?
a. cycle stock
b. goods in transit
c. promotional
stock
d. speculative stock
37. Which company functional area would most
likely want to decrease inventory levels to improve turnover?
a. marketing
b. production
c. finance
d. sales
38. Which of the following is a type of inventory
cost?
a. in-transit
inventory carrying costs
b. expected stockout
costs
c. storage space
costs
d. order/setup costs
39. Storage space cost increases as the inventory
level increases because it is a ____ cost which is dependent on the number of
units stored and their values?
a. fixed
b. variable
c. by-product
d. carry through
40. Which type of stockout cost is the most
undesirable to the company?
a. cost of back
orders
b. cost of lost sales
c. cost of carrying
inventory
d. cost of lost customers
41. The last stop in ABC classification analysis,
assigning items into ABC groups, is the most difficult. What is the
reason for this?
a. the item code is
very complex
b. the difficult
mathematical calculation
c. the subjective
judgment required due to absence of a uniform decision rule
d. the difficulty in
ranking items according some criterion
42. What is the effect on inventory carrying
costs if order size is increased and frequency of orders decreased?
a. costs increase
b. costs decrease
c. costs remain the
same
d. the effect cannot
determined
43. Total cost in the simply EOQ model is a
function of the cost of placing an order and:
a. the cost of
carrying inventory
b. the cost of shipping
an order
c. the number of
orders per year
d. the cost of storing an
order
44. Under conditions of uncertainty, the reorder
point must be reformulated, The order point becomes:
a. average daily
demand during lead time
b. safety stock to cover
demand variations
c. cycle stock to
cover total demand
d. a and b
45. Which is the principal effect to introducing
uncertainty into the fixed order quantity model?
a. safety stock
becomes relevant
b. product value begins
to fluctuate
c. the capital cost
component tends to vary
d. order cost per order
varies
46. There are three practices that are generally
associated with additional approaches to inventory management. Which one of the
following is not one of them?
a. JIT
b. DRP
c. MRP
d. ED
47. JIT works to reduce inventory investment for
manufacturers by scheduling the delivery of products to assembly
lines. What approach does the same thing for manufacturers,
wholesalers, and retailers?
a. ECR
b. QR
c. a and b
d. none of the above
48. In analysis of the cost structure of a
grocery supply chain before and after ECR implementation, total cost would be expected
to ______.
a. remain stable
b. decrease
c. increase
d. decrease with
operations cost increasing
49. There are six basic elements of Quick
Response. Which one of the followings is not included:
a. logistics
b. consumer buying
preferences
c. Information
d. all of the above
50. All of the following components are warehouse
inventory carrying cost, except:
a. capital cost
b. inventory risk cost
c. inventory
service
d. setup cost