Set A

SINGAPORE POLYTECHNIC
BA0260 PRINCIPLES OF SUPPLY CHAIN MANAGEMENT 2008/2009 S2 MID SEMESTER TEST
Score:

BA0260

/40
Instructions 1. 2. 3. 4. Answer ALL questions. All answers are to be written on the question paper. There are a total of 40 Multiple Choice Questions (MCQ). Indicate your answer in the box provided next to each question. Choose the most appropriate answer for each question. 5. Total time allowed for this test is 60 minutes. 6. Ensure that your admission number, full name, and module class is clearly filled up, before commencing this test. Failure to comply with the above instructions will result in penalty. Particulars Adm. Number : ________________

Full Name

______________________________________

Module Class :

______________________________________

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Set A 1) _______ under SCOR model means to procure goods and services to meet planned or actual demand. a. b. c. d. Deliver Make Return Source

2) The 3 types of SCM flows are physical, ________________, and information. a. b. c. d. Financial Inventory Production Transportation

3) _____________ provide the direct interface with end customers as they sell finished goods to the final customers. a. b. c. d. Retail outlets Suppliers Transportation providers Warehouses

4) What does SCOR stand for? a. b. c. d. Supplier Channel Operations Reference Supplier Channel Optimization Reference Supply Chain Operations Reference Supply Chain Optimization Reference

5) SCOR is based on _______ core management processes. a. b. c. d. 3 4 5 6

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Set A 6) Which of the following is/are reason(s) why good Supply Chain Management is important now than ever before? (i) (ii) (iii) a. b. c. d. Complex Supply Chains Lack of Integration between Supply Chain Entities Shortening Product Life Cycles

(i) only (ii) only (iii) only All of the above

7) The 5 competitive advantages of Supply Chain Management are _________________. a. b. c. d. Quantity, Flexibility, Speed, Productivity, and Dependability. Quality, Flexibility, Speed, Productivity and Dependability. Quality, Flexibility, Speed, Product, and Dependability. Quality, Flexibility, Haste, Productivity and Dependability.

8) Mr. Tan runs an econ minimart, he realizes that there is a sharp increase in the sales for tortilla chips after a recent report on its health benefits. He called his supplier to increase his order by 50% and to his delight, his supplier is able to meet his request. His supplier has demonstrated ____________ flexibility. a. b. c. d. Delivery Mix Product Volume

9) The four key supply chain drivers are facilities, inventory, transportation and _____________. a. b. c. d. Delivery Distribution strategies Information Warehouses

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Set A 10) Under the Sales and Distribution process, who sends the Request for Quotation (RFQ)? a. b. c. d. Customer Sales Department Distribution Centre Transportation

11) There are _____ steps in the Sales and Distribution Process. a. b. c. d. 11 12 13 14

12) Under the Sales and Distribution process, the sales department prepares and sends the quotation. Which of the following best describes the situation? a. b. c. d. The customer and the sales department are still in the pre-sales transaction. The customer is no longer interested with doing business with the company. The sales transaction is already closed. The transportation will pick up the order for delivery.

13) What does Generate Pick Task List in the Sales and Distribution Process mean? a. Collect the items from the racks. b. Produce the records of things to be packed. c. Produce the records of the designated areas in the warehouse for items to be retrieved. d. Call the transportation for the delivery of the items.

14) The 2 fundamental distribution strategies are ________________________. a. b. c. d. Break-bulk and Direct Shipment Cross Docking and Direct Shipment Cross Docking and Traditional Warehousing Direct Shipment and Use of Intermediate Inventory Storage Points

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Set A 15) Mr. Lee runs a stationery shop; he obtains his supplies of various brands of pens from a warehouse which are shipped to him in on truckload. What function is this traditional warehouse performing? a. b. c. d. Breakbulk Consolidation Manufacturing Postponement

16) Which of the following is an advantage of Direct Shipment? a. b. c. d. Lower Storage Costs Lower Transportation Costs Risk-pooling benefits None of the above

17) ____________ supports a make-to-order strategy. a. b. c. d. Cross Docking Direct Shipment Traditional Warehousing Trans-shipment

18) Which of the following are considerations when companies decide if they want to have a central or local facility? (i) (ii) (iii) a. b. c. d. Economies of Scale Safety Stocks Service Level

(i) and (ii) (i) and (iii) (ii) and (iii) All of the above

19) Which of the following statements is false about Cross Docking? a. b. c. d. Goods usually spend less than 24 hours at the Cross Docking stations. It is one of the functions under Traditional Warehousing. It requires significant start-up investment. It is very difficult to manage.

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Set A

20) Which function does the below diagram illustrate?

Suppliers

Raw Materials Warehouse

Manufacturers

a. b. c. d.

Break bulk Consolidation Inventory Pooling Manufacturing

21) Which of the following describes the scenario where truck load cost is not symmetric? (i) (ii) (iii) a. b. c. d. Cost from point A to B = Cost from point B to A Cost from point A to B > Cost from point B to A Cost from point B to A < Cost from point A to B

(i) only (ii) and (iii) All of the above None of the above

22) The annual sales for Tan&Tan Pte Ltd is 250,000 units, with an inventory turnover of 5 times per year. Its annual inventory holding cost is $0.50/unit/year. Calculate the Storage Cost of this company. a. b. c. d. $2,500 $25,000 $50,000 Not enough information to calculate storage cost

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Set A 23) Lollipop is a company that sells candies and is planning for a warehouse to store candies. Calculate the warehouse capacity that Lollipop needs with the following information: A carton of candy takes up 0.015m3 of space. Annual Sales = 450,000 cartons Inventory Turnover = 3 Storage area is 1/3 of the warehouse capacity a. b. c. d. 2250m3 3375m3 6750m3 Not enough information to calculate warehouse capacity

24) Which of the following statement(s) is/are true about Network Planning? (i) (ii) (iii) Network design is one of the components of Network Planning. There are 3 components under Network Planning. It is the process by which the firm structures and manages the supply chain in order to find the right balance between inventory, transportation, and manufacturing costs.

a. b. c. d.

(i) only (ii) and (iii) (i) and (iii) All of the above

25) As a clothes retailer, Mr Long keeps separate inventory records for different sizes. He sells Small, Medium and Large for each design. In his shop, there are 20 designs, how many stock keeping units will he require? a. b. c. d. 3 20 60 Not enough information to determine

26) Which of the following is NOT considered as a storage cost? a. b. c. d. Insurance for the warehouse Opportunity cost of holding inventory Risk of inventory obsolescence All of the above are NOT part of storage cost

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Set A 27) A company determines the number of warehouses in its logistics network based on a typical company in the same industry. This company calculates the number of warehouse its need by _______________________. a. b. c. d. Benchmarking Considering all costs related to the network Forecasting None of the above

28) Company A sells apples. Its annual sale is $500,000 and the cost price of each apple is $0.20. The cost price of the apple is 20% of the selling price and the annual inventory holding cost takes up 2% of the cost price. Their inventory turnover is 5 times per year. Calculate Company As storage cost. a. b. c. d. $400 $1,000 $5,000 Not enough information to calculate storage cost.

29) Which of the following statement(s) is/are true about network design? (i) (ii) (iii) It is concerned with the physical configuration and infrastructure of the supply chain. It is a strategic decision with long-lasting effects on the firm. The decisions made are related to plant and warehouse location as well as distribution and sourcing.

a. b. c. d.

(i) only (ii) & (iii) All of the above None of the above

30) Which of the following refers to internal transportation rates? a. b. c. d. Annual mileage Commodity rate Less than truck load Truck load and less than truck load

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Set A 31) Seng Seng Warehouse has the following information available on its chart: 1) Less than 1 hour delivery for customers located within 2km 99% 2) Less than 2 hours delivery for customers located within 10km 99% 3) Less than 5 hours delivery for customers located within 25km -99% This illustrates the ______________ of Seng Seng Warehouse. a. b. c. d. Data aggregation Future demand Potential locations Service levels

32) ___________ means that we are using a combination of 2 or more transportation modes. a. b. c. d. Unimodal transportation Intermodal transportation Intramodal transportation Transmodal transportation

33) ________________ refers to truck trailers and containers to be directly driven on and off the ship, without the use of cranes. a. b. c. d. Container-on-flatcar(COFC) Piggy-back service Roll-on-Roll-off (RORO) Trailer-on-flatcar (TOFC)

34) Which of the following has the lowest uncontrollable risk for International Distribution? a. b. c. d. Currency fluctuations Execution problems Forecasting accuracy Market changes

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Set A 35) Xpand Company would like to grow its sales by expanding overseas. Which of the following forces drive its globalisation? a. b. c. d. Global Cost Global Market Political and Economic Forces Technological

36) The common problem that Singapore investors faced when they venture overseas is the disappointment they faced with the productivity level of the local staff. This illustrates the challenge of _____________ in International Distribution. a. b. c. d. Cultural Differences Information System Availability Infrastructure Performance Expectation and Evaluation

37) Which of the following is/are an advantage(s) of air transportation? a. b. c. d. Fast Large Volume Less expensive All of the above

38) Transportation is responsible for creating time and place utility. Which of the following statements describe time utility? a. b. c. d. Products are delivered to the customers earlier than expected. Products are delivered to the customer at the right time. Products are delivered to the customers later than expected. All of the above.

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Set A 39) CheckCheck Ltd sells luggage. It engages an external transportation company. Every 3 months, CheckCheck will send its employee to the transportation company to ensure that its transportation process is carried out properly. Which transportation method is CheckCheck applying? a. b. c. d. Mode and carrier selection Transportation audits Transportation performance measurement Transportation supply base reduction

40) _________ transport is the essential link to all. a. b. c. d. Air Rail Truck Water

-END OF PAPER-

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