january 2016

Diploma in

Supply Chain
Management
Practice Questions

www.iqnglobal.com

Practice Questions

Supply Chain Management

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 network

D. 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 relation

to 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

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 should
interact, 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

12

Supply Chain Management

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 companies
B.

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 flow

D. 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 flow
D. 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

17

Supply Chain Management

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 efficiency

D. 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

22

Supply Chain Management

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 OEMs 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

26

Supply Chain Management

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. Required
B.

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 from
network 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 employees 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 peoples 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 organisations and supply chains 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

41

Supply Chain Management

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 factors

A. 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

45

Supply Chain Management

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.

II.

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 integration
B.

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 chain
D. 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:

II.

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.
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

B
C
D

Supply Chain Management

Original and Essential Market

Order Entry Mail
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 value
D
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 department
D
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 transportation
C
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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Practice Questions

Supply Chain Management

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 technology
C
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
value
A
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

B
C
D

Supply Chain Management

25
30
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
Internet
C
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 oriented
C
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 its 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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Practice Questions

A
B
C
D

Supply Chain Management

Technology
Customer focus
Visibility
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 profit
D
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 cost
D
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
Suppliers
B
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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Practice Questions

C
D

Supply Chain Management

Complexity of supply chains

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 metrics
C
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-HRM
C
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 increases
B
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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Practice Questions

D
91

92

Supply Chain Management

in-or-out decision

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 resources
D
Increasing the sales of products
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 effectA

Demand variability becomes magnified
B
High buffer inventory builds up
C
Results in poor customer service
D
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 period
C
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 base
B
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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Practice Questions

D
99

100

Supply Chain Management

High outsourcing and large supply base

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 information
D
Market price plus rather than Supplier cost plus
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 buyer
C
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 Standardisation
C
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 dominated
B
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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Practice Questions

Supply Chain Management

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 alliance

A
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 alliances performance
A
its underlying attributes
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Practice Questions

B
C
D

Supply Chain Management

what is their objective

how the partners communicate
how they manage the relationship

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Practice Questions

Supply Chain Management

SOLUTION
Question
1
2
3
4
5
6
7
8
9
10

Answer
D
A
C
D
D
A
D
B
C
A

Question
31
32
33
34
35
36
37
38
39
40

Answer
B
B
C
B
A
D
A
B
D
A

Question
61
62
63
64
65
66
67
68
69
70

Answer
B
C
A
B
D
B
C
C
B
A

Question
91
92
93
94
95
96
97
98
99
100

11

41

71

101

12
13
14
15
16
17
18
19
20
21
22
23
24

D
C
A
B
C
B
C
D
C
D
C
D
C

42
43
44
45
46
47
48
49
50
51
52
53
54

A
C
D
A
A
C
A
C
D
B
C
D
A

72
73
74
75
76
77
78
79
80
81
82
83
84

D
A
C
A
C
D
D
B
B
D
D
D
C

102
103
104
105
106
107
108
109
110
111
112

25
26
27
28
29
30

D
D
C
D
A
C

55
56
57
58
59
60

85
86
87
88
89
90

C
B
C
A
D
A

B
B
A
C

Page 23 of 23

Answer
D
D
B
B
D

D
D

D
B