Oscm 1

MCQ: Unit-1: introduction to Operations and Supply Chain management
1."Quality is defined by the customer" is :

An unrealistic definition of quality
A user-based definition of quality
A manufacturing-based definition of quality
A product-based definition of quality
2. According to the manufacturing-based definition of quality

quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost
quality depends on how well the product fits patterns of consumer preferences
even though quality cannot be defined, you know what it is
quality is the degree to which a specific product conforms to standards
3. The supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production
4. Zero defects in manufacturing is
a. is a relevant goal only in electronic assembly
b. is readily achievable in all areas
c. is the goal of TQM
d. is an unobtainable and misleading idea
5. The supply chain management philosophy emerged in which decade?
1960s
1970‟s
1980s
1990s
6. A ____________ encompasses all activities associated with the flow and transformation of
goods from the raw material stage, through to the end user, as well as the associated information
flows.
production line
supply chain
marketing channel
warehouse
7. Which one of the following is not a typical question dealt with by an operations managers?
How much capacity will be needed in the months ahead?
What is a satisfactory location for a new facility?
How to motivate employees?
All are typical of operations decisions.
8. Which of the following are not key attributes of supply chain management?
inventory control
leveraging technology
customer power
all are key attributes
9. Positive, long-term relationships between supply chain participants refer to:
Co-opetitions
tailored logistics
partnerships
supply chain management
10. Which one of the following best represents a pure good?

Soap
Fast food
Attending a play
Vehicle repair
11. Which of the following statements is true of LEAN?

Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.
12. The bullwhip effect:

is an ineffective way to motivate warehouse employees
applies to rodeos and has nothing to do with supply chain management
refers to the “swaying” motion associated with triple trailers
Refers to variability in demand orders among supply chain participants.
"quality is the degree of excellence at an acceptable price and the control of variability at
an acceptable cost"
14. The variability in demand orders among supply chain participants:

cannot be controlled
refers to the bullwhip effect
can be controlled with electronic order placement
is more pronounced in relational exchanges
16. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
third-party logistics
supply chain collaboration
dovetailing
relationship marketing
17. Process improvement technique that sorts the "vital few" from the "trivial many" is
Taguchi analysis
Pareto analysis
benchmarking
Yamaguchi analysis
18. A fishbone diagram is also known as a
cause-and-effect diagram
poka-yoke diagram
Kaizen diagram
Taguchi diagram
19. Which of the following functions is not a core function of an organisation?

The Product/Service Dev.Function
The Operations Function
The Marketing ( Including Sales ) Function
The accounting and finance function
20. What is a perfect order?
simultaneous achievement of relevant customer metrics
an order that arrives on time
an order that arrives undamaged
an order that is easy for the receiver to fill
21. Total Quality Management emphasizes

the responsibility of the Quality Control staff to identify and solve all quality-related
problems
A commitment to quality that goes beyond internal company issues to suppliers and
customers
A system where strong managers are the only decision makers
A process where mostly statisticians get involved
22. "Quality is defined by the customer" is

an unrealistic definition of quality
a user-based definition of quality
a manufacturing-based definition of quality
a product-based definition of quality
the definition proposed by the American Society for Quality Control
23. Which of the following is not one of the major categories of costs associated with quality?
prevention costs
appraisal costs
internal failures
none of the above, they are all major categories of costs associated with quality
24. According to the manufacturing-based definition of quality,
quality is the degree of excellence at an acceptable price and the control of variability
at an acceptable cost
25. An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for:
Order processing, transportation scheduling, and inventory management
cost-effective flowing of raw materials
future purchasing of computer systems
future merger opportunities
26. Lean production involves
Elimination of cost only
Improvement of quality only
Improvement of speed only
Elimination of all types of waste
27. All of the following costs are likely to decrease as a result of better quality except
customer dissatisfaction costs
maintenance costs
scrap costs
warranty and service costs
28. Inspection, scrap, and repair are examples of
internal costs
external costs
costs of dissatisfaction
societal costs
29. Which of the following activities is not a direct responsibility of operations management?
Determining the exact mix of products and services that the customers will want
Designing the operation's products,services and processes
Developing an operations strategy for the operations
Planning and controlling the operation
30. Total Quality Management emphasizes
the responsibility of the Quality Control staff to identify and solve all quality-related
problems
a commitment to quality that goes beyond internal company issues to suppliers
and customers
a system where strong managers are the only decision makers
a process where mostly statisticians get involved
31. A successful TQM program incorporates all of the following except
continuous improvement
employment involvement
benchmarking
centralized decision making authority
32. Which of the following would not be normally considered as a key feature of Operations
Management?
Operations is the part of an organisation which creates wealth through the management of
the transformation process
World class Operations can give an organisation competitive advantage
Most new technology is implemented in Operations areas
Operations is the area of a business where most people work
33. "Kaizen" is a Japanese term meaning

a foolproof mechanism
Just-in-time (JIT)
a fishbone diagram
continuous improvement
34. Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
Taguchi Loss Function
Pareto Chart
ISO 9000 Quality Cost Calculator
Process Chart
35. A quality loss function utilizes all of the following costs except
the cost of scrap and repair
the cost of customer dissatisfaction
inspection, warranty, and service costs
sales costs
costs to society
36. Which of the following is the least likely decision to be made by Operations Managers?
Selecting the location and layout of a facility
Deciding which market areas to manufacture products for
How much capacity is required to balance demand
Designing and improving the jobs of the workforce
37. Pareto charts are used to

identify inspection points in a process
outline production schedules
organize errors, problems or defects
show material flow
38. Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of
events through which a product travels is a
Pareto chart
Flow chart
check sheet
Taguchi map
39. Which one of the following would not generally be considered an aspect of operations
management?
Work methods
Secure financial resources
Maintain quality
Product or service design
40. Which one of the following is not a typical question dealt with by an operations managers?
How to motivate employees?
41. A worker operates a shear press. She notices that the metal sheets she is cutting have curled
edges. Who should get the first "shot" at solving the problem?
the foreman
a member of the Quality Control department
the operator herself
the employee's supervisor
42. Which of the following is not a key activity of an operations manager?

Understanding the needs of customer
Continually learning
Managing cash flows
Exploiting technology to produce goods and services
43. A recent consumer survey conducted for a car dealership indicates that, when buying a car,
customers are primarily concerned with the salesperson's ability to explain the car's features, the
salesperson's friendliness, and the dealer's honesty. The dealership should be especially
concerned with which dimensions of service quality?
communication, courtesy, and credibility
competence, courtesy, and security
competence, responsiveness, and reliability
communication, responsiveness, and reliability
44. Which one of the following best represents a pure service?
Bank loans
Computer diagnosis and repair
Attending a theatre play
Fast food restaurant
45. Which one of the following best represents a pure good?
Salt
Fast food
Attending a play
Vehicle repair
management?
Schedule work
Secure financial resources
Maintain quality
Oversee the transformation process
47. Which one of these was not mentioned in the list of recent trends in operations management?
Total quality management
Worker involvement
Global competition.
Automation.
48. Which came last in the development of manufacturing techniques?
Lean production.
Division of labor.
Mass production.
Craft production.
49. Which function typically employs more people than any other functional area?
Information System
Operations
Marketing
Finance
50. Which of the following is not a type of operations?

Goods production
storage/transportation
entertainment
price reduction
51. Which of the following is not true about a lean production system?
It puts emphasis on quality, flexibility, and time reduction.

It puts emphasis on reducing a company's labor force.
It is involved in maintaining and improving the system with lower amounts of
inventory.
It relies on buffers against unforeseen occurrences.
52. The inputs to a transformation process include all of the following except
Material
People
Information
Assembly
53. ____ is an example of a pure good.

Restaurant
Dentist
Coal Mining
Education
54. Which one of the following is not a typical question dealt with by an operations manager?
Which products/services should be offered?
55. Which one does not use operations management?
A CPA firm.
A bank.
A hospital
They all use it.
56.Zero defects in manufacturing

is an unobtainable and misleading ideal
is the goal of TQM
is readily achievable in all areas
is a relevant goal only in electronic assembly
57. Which one is not generally considered an advantage of using models for decision-making?
Providing a systematic approach to problem solving.
Emphasizing quantitative information.
Providing an exact representation of reality.
Requiring users to be specific about objectives.
58. ”Quality is conformance to specifications”-This definition of quality is from point of view of
Customer
Manufacturer
Quality Circle Forum
TQM

Lean production.
Division of labor.
Mass production.
Interchangeable parts.
60. The goal of Total Quality Management is:
Customer satisfaction
Product differentiation
Brand equity
Acting globally
61. Which of the following is not a typical supply chain member?
Retailer‟s Creditor
Wholesaler
Producer
Customer
62. Quality is both quantitative and
Supportive
Qualitative
Measurable
Conclusive
63. When suppliers, distributors, and customers partner with each other to improve the
performance of the entire system, they are participating in a ________
Channel Of Distribution
Value Delivery Network
Supply Chain
Supply And Demand Chain
64. A company's channel decisions directly affect every ________.
customer's choices
employee in the channel
channel member
Marketing decision.
65. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________ Channel members.
manufacturers
marketers
distributors
consumers
66. Intermediaries play an important role in matching ________.
dealer with customer
manufacturer to product
information and promotion
supply and demand
67. Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is not included in this process?
implementing the plan for the flow of goods and services
planning the physical flow of goods and services
controlling the physical flow of goods, services, and information
gathering customer's ideas for new products
68. Raw materials and specialised services procured are converted into useful service offerings
and finaly distributed to customers in following Industry
Hotel
Cement
Sugar
Refinery
69. Which of the following is not an area of responsibility for a logistics manager?
inventory
purchasing
warehousing
marketing
70. To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation.
reduction-inventory management
economic order quantity
just-in-time logistics
limited inventory logistics
71. A Supply Chain includes the chain of entities involved in the
planning,procurement,production and ------------- of products and services
Distribution
Supply
Demand
Transport
72. In a SC,Material flows in one direction while _________from in both direction
Process
Information
Product
Semifinished Goods
73. Companies manage their supply chains through ________.
information
transportation modes
competitors
the Internet
skilled operators
74. Julie Newmar recognizes that her company needs to provide better customer service and trim
distribution costs through teamwork, both inside the company and among all the marketing
channel organizations. Julie will begin the practice of ________.
intermediation
customer relationship management
horizontal marketing system management
75. There are four generic processes involved in any SCM-Planning for operations,Sourcing
decisions,Manufacturing related activities and
Purchase
Inventory
Information
Distribution

77. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries.
competitors
third-party logistics providers
channel members
cross-functional teams
78. Most operations produce a mixture of both products and services. Which of the following
businesses are closest to producing “pure” services?
Counsellor/Therapist
Restaurant
IT company
Steel company
79. If a sample of parts is measured and the mean of the measurements is outside the control
limits the process is
in control, but not capable of producing within the established control limits
out of control and the process should be investigated for assignable variation
within the established control limits with only natural causes of variation
monitored closely to see if the next sample mean will also fall outside the control
limits
80. A quality circle holds a brainstorming session and attempts to identify the factors responsible
for flaws in a product. Which tool do you suggest they use to organize their findings?
Ishikawa diagram
Pareto chart
process chart
control charts
81. When a sample measurement falls inside the control limits, it means that
each unit manufactured is good enough to sell

the process limits cannot be determined statistically
the process output exceeds the requirements
if there is no other pattern in the samples, the process is in control
82. Which of the following statements is true of LEAN?

Lean principles focus on advanced statistical methods
Lean principles are separate body of knowledge
Lean principles have been developed over a lengthy period of time.
Lean principles include reducing waste.

Supermarket
Bank
Hospital
They all use it.
84. The trend in organizations is to place the SCM function:
Under the manufacturing function
Under the finance function
Under the engineering function
At the same level as the other major functions
85. Which of the following is NOT a factor affecting the supply chain?
Reduced number of suppliers
Increased competition
Longer product life cycles
Increased opportunities to strategically use technology
86. If two potential suppliers can deliver a part with the same quality and prices, the selection
should be based on:
Age of the firms
A coin flip
Outside evaluation
The capabilities and flexibilities of the firms
87. Just-in-time/SCM purchasing requires the following condition:

Many suppliers
Short-term contracts
Cooperation between purchasing and suppliers
Continuous competitive bidding
88. The amount of inventory kept at each stock point in a warehouse network is usually based
on:
Minimizing transportation costs
Constant demand
Tradeoffs between warehousing, inventory, and transportation costs
Product pricing strategy
89. Which of the following is true regarding control charts?

Values above the upper and lower control limits indicate points out of adjustment.
Control charts are built so that new data can be quickly compared to past performance
data.
Control charts graphically present data.
All of the above are true.
90. The goal of inspection is to
detect a bad process immediately
add value to a product or service
correct deficiencies in products
correct system deficiencies
91. Which of the following is not a typical inspection point?
upon receipt of goods from your supplier
during the production process
before the product is shipped to the customer
at the supplier's plant while the supplier is producing
after a costly process
92. What name is often given to the Japanese „total approach‟ to removing anything that does not
add value to the final product?
Jobbing processes
Lean production processes
Continuous processes.
Batch processes.
94. The most common form of quality control includes:

Planning
Organizing
Inspection
Directing
95. Which of the following is not a typical supply chain member?
Retailer‟s creditor
wholesaler
reseller
producer
a. "quality is the degree of excellence at an acceptable price and the control of variability at
an
acceptable cost"
b. quality depends on how well the product fits patterns of consumer preferences
c. even though quality cannot be defined, you know what it is
d. quality is the degree to which a specific product conforms to standards
97. TQM refers to
a. total quantity management
b. total quality management
c. total quality marketing
d. total quotient management
98. When suppliers, distributors, and customers collaborate with each other to improve the
performance of the entire system, they are participating in a ________
a) channel of distribution
b) value delivery network
c) supply chain
d) supply and demand chain

a) customer's choices
b) employee in the channel
c) channel member
d) competitor's actions
100. A supply chain is a sequence of firms that perform activities required:

a. to find products that are similar
b. to facilitate wholesalers inventory selections
c. to create synergy in their training programs
d. to create and deliver goods to consumers
101. A supply chain is essentially a sequence of linked:
a. customer and prospects
b. supplier and manufacturer
c. suppliers and customers
d. warehousing and wholesaling units
102. From the economic system's point of view, the role of marketing intermediaries is to
transform the assortment of products made by producers into the assortment of products wanted
by ________Channel members.
a) manufacturers
b) marketers
c) distributors
d) consumers
103. Intermediaries play an important role in matching ________.
a) dealer with customer
b) manufacturer to product
c) information and promotion
d) supply and demand
104. Marketing logistics involves getting the right product to the right customer in the right place
at the right time. Which one of the following is not included in this process?
a) implementing the plan for the flow of goods and services
b) planning the physical flow of goods and services
c) controlling the physical flow of goods, services, and information
d) gathering customer's ideas for new products

e. to find products that are similar
f. to facilitate wholesalers inventory selections
g. to create synergy in their training programs
h. to create and deliver goods to consumers
e. customer and prospects
f. supplier and manufacturer
g. suppliers and customers
h. warehousing and wholesaling units
a) inventory
b) purchasing
c) warehousing
d) marketing
108. To reduce inventory management costs, many companies use a system called ________,
which involves carrying only small inventories of parts or merchandise, often only enough for a
few days of operation.
a) reduction-inventory management
b) supply chain management
c) economic order quantity
d) just-in-time logistics
109. Companies manage their supply chains through ________.
a) information
b) transportation modes
c) competitors
d) the Internet
110. Julie Newmar recognizes that her company needs to provide better customer service and
trim distribution costs through teamwork, both inside the company and among all the marketing
a) intermediation
b) customer relationship management
c) integrated logistics management
d) supply chain management
111. Today, a growing number of firms now outsource some or all of their logistics to ________
intermediaries
a) competitors
b) third-party logistics providers
c) channel members
d) cross-functional teams
112. Supply chain concept originated in what discipline?
a) marketing
b) operations
c) logistics
d) production
113. A restaurant is an example of a
a. major service with accompanying goods and services
b. hybrid
c. pure service
d. pure tangible good
114. The supply chain management philosophy emerged in which decade?
a) 1960s
b) 1970s
c) 1980s
d) 1990s
goods from the raw material stage, through to the end user, as well as the associated information
flows.
a) production line
b) supply chain
c) marketing channel
d) warehouse
a) inventory control
b) leveraging technology
c) c. customer power
d) all are key attributes
117. Positive, long-term relationships between supply chain participants refer to:
a) co-opetitions
b) tailored logistics
c) partnerships
118. The bullwhip effect:

a) is an ineffective way to motivate warehouse employees
b) applies to rodeos and has nothing to do with supply chain management
c) refers to the “swaying” motion associated with triple trailers
d) refers to variability in demand orders among supply chain participants.

a) cannot be controlled
b) refers to the bullwhip effect
c) can be controlled with electronic order placement
d) is more pronounced in relational exchanges
120. Cooperative supply chain relationships developed to enhance the overall business
performance of both parties is a definition of:
a) third-party logistics
b) supply chain collaboration
c) dovetailing
d) relationship marketing
a) simultaneous achievement of relevant customer metrics

b) an order that arrives on time
c) an order that arrives undamaged
d) an order that is easy for the receiver to fill
122. Which of the following is NOT a reason that companies are depending more on their
suppliers?
a) More focus on core competencies
b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers
123. Which of the following is NOT a benefit of SCM Purchasing?
a) Consistent quality
b) Savings on resources
c) Lower costs
d) Less dependence on suppliers
124. What term describes a vertical expansion of job duties in order to give the worker more
responsibility?
a) Job enlargement
b) Job rotation
c) Job enrichment
d) Job design
125. What are the two basic types of production systems?

a) Automated and manual
b) Intermittent and non-intermittent process
c) Normal and continuous process
d) Continuous process and batch
126. What type of process would a paper mill be most likely to use?
a) Continuous flow
b) Project
c) Job shop
d) Flow shop
127. What technique deals with the problem of supplying sufficient facilities to production lines
or individuals that require uneven service?
a) Supply-demand theory
b) PERT
c) Inventory theory
d) Queuing theory
128. A manufacturer has been receiving excessive numbers of defective standard machine parts
from a vendor on a regular basis. What is the most effective way to design a formal inspection
system for incoming parts?
a) Queuing analysis
b) Time series analysis
c) Statistical quality control
d) Regression analysis
129. A set of simultaneous equations that has more variables than constraints has
a) no solution
b) an infinite number of solutions
c) a finite solution
d) an infinite solution
130. In a PERT/CPM network, computing the critical path requires
a) determining the total project duration
b) assigning the earliest finish time for an activity as the earliest start time for the
next
c) that the latest finishing time for an activity not delay the overall project beyond initial
expectation
d) a sophisticated and complex computer program
131. At the completion of the forward and backward passes, the slack for an activity is given by
the
a) difference between early start and early finish
b) difference between early start and latest finish
c) difference between latest start and early finish
d) amount of idle labor on the critical path
MCQ: Unit -2: Operation processes
1.What type of process would a Cement plant be most likely to use?
a. Continuous flow
b. Project c
c. Job shop
d. Flow shop
2. Process selection is primarily considered during:
a) Planning
b) Organizing
c) Leading
d) Controlling
3. What type of process would a fertilizer plant be most likely to use
a. Continuous
b. Project
c. Job
d. Flow shop
4. The type of operation being carried out by an organization depends upon:
a) Degree of standardization
b) Volume of output
c) Demand
d) Both (a) and (b)
5. Repetitive processing results in output that is:
a) Highly standardized
b) Highly customized
c) Partially customized
d) None of the given options
6. Construction of fertilizer plant is
a. Continuous
b. Project
c. Job
d. Flow shop
7. The inputs to a transformation process include all of the following except
a. Material
b. People
c. Information
d. Transportation
8. Job shop and batch processing are differentiated on the basis of:
a) Job requirements
b) Degree of standardization
c) Volume of output
d) Both (b) and (c)
9. Automation is preferred because it:
a) Offers lesser dependence on workers
b) Results in reduction in variable cost
c) Offers easy handling of repetitive work
d) All of the given options
10. Product layout is preferably used for:
a) Repetitive processing
b) Intermittent processing
c) Both (a) and (b)
d) Neither (a) nor (b)
11. What are the two basic types of production systems?
a. Automated and manual
b. Intermittent and non-intermittent process
c. Normal and continuous process
d. Continuous process and batch
12. Process layout is used for:
c) Both (a) and (b)
13. The most significant advantage of U-shaped layout is:
a) Cost minimization
b) Easy handling of process
c) Increased flexibility in work
14. The goal of motion study is to achieve:
b) Maximum efficiency
c) Profitability
15. Location decisions are viewed primarily as part of:
a) Marketing strategy
b) Growth factors
c) Financial aspect
d) Both (a) and (b)
16. Regional factors for location planning include all of the following except:
a) Raw materials
b) Markets
c) Labor considerations
d) Attitudes
17. Transportation method is a __________ approach.
a) Quantitative
b) Qualitative
c) Scientific
18. Poor quality adversely affects:
a) Costs
b) Productivity
c) Profitability
20. A product performing consistently refers to which of the following dimensions of quality: a)
Safety
b) Conformance
c) Durability
d) Reliability
21. What type of process would a paper mill be most likely to use?
a. Continuous flow
b. Project
c. Job shop
d. Flow shop
a) goods production
b) storage/transportation
c) entertainment
d) all the above involve operations
23. Technology choices seldom affect:

a) Costs.
b) Productivity.
c) Union activity.
d) quality
24. Measurements taken at various points in the transformation process for control purposes are
called:
a) plans
b) directions
c) controls
d) feedback
25. Which of the following would not be an operations activity in a fast-food restaurant?
a. Advertising new salad dishes

b. Purchasing tomatoes
c. Planning the layout of the serving areas
d. Cooking panir palak and dal makhani
26. Budgeting, analysis of investment proposals, and provision of funds are activities associated
with the _______ function.
a) operation
b) marketing
c) purchasing
d) finance
27. Which one of the following would not generally be classified under the heading of
transformation?
a) assembling
b) teaching
c) staffing
d) farming
28. Manufacturing work sent to other countries is called:
a) downsized
b) outsourced
c) internationalization
d) vertical integration
29. What name is often given to processes which involve the manufacture of a unique item from
beginning to end?
a. Jobbing processes
b. Continuous processes.
c. Lean production processes.
d. Batch processes.
30. Product design and process selection are examples of _______ decisions. a) financial
b) tactical
c) system design
d) system operation
31. The responsibilities of the operations manager are:
a) planning, organizing, staffing, procuring, and reviewing
b) planning, organizing, staffing, directing, and controlling
c) forecasting, designing, planning, organizing, and controlling
d) forecasting, designing, operating, procuring, and reviewing
32. Which of these layouts is most suitable for processing sugar from sugar beets or sugar cane?
a. process-oriented layout
b. fixed-position layout
c. focused factory
d. product-oriented layout
33. Which of the following is not true about systems approach?
a) A systems viewpoint is usually beneficial in decision making.
b) A systems approach emphasizes interrelationships among subsystems.
c) A systems approach concentrates on efficiency within subsystems.
d) A systems approach is essential whenever something is being redesigned or improved.
34. What is credited with gains in industrial productivity, increased standards of living and
affordable products?
a) personal computers b. the internet
c. mass transportation
d. assembly lines
35. Which of the following is an example of a Service Business?
a. Law firm
b. Hospital
c. Bank
d. Retail store
e. All of the above
36. Production systems with customized outputs typically have relatively:
a) high volumes of output
b) low unit costs
c) high amount of specialized equipment
d) skilled workers
37. According to the Chase and Dasu (2001) study which of the following are behavioral concepts
that should be applied to enhance customer perceptions of a service encounter?
a. Flow of the service experience
b. Flow of time
c. Judging encounter performance
d. All of the above
e. None of the above
38. Which is not a significant difference between manufacturing and service operations? a) cost
per unit
b) uniformity of output
c) labor content of jobs
d) Measurement of productivity.
39. Which of the following is not a characteristic of service operations?
a) intangible output
b) high customer contact
c) high labor content
d) easy measurement of productivity
e) low uniformity of output
40. Which of the following is a recent trend in business?
a) pollution control
b) total quality management
c) supply chain management
d) competition from foreign manufacturers
e) technological change
41. Farming is an example of:
a) an obsolete activity
b) a virtual organization
c) non-manufactured goods
d) a growth industry
e) customized manufacturing
42. Service strategy development begins by selecting which of the following as an operating focus
or performance priority?
a. Price
b. Quality
c. Variety
d. Treatment
e. All of the above
43. Dealing with the fact that certain aspects of any management situation are more important than
others is called:
a) analysis of tradeoffs
b) sensitivity analysis
c) recognition of priorities
d) analysis of variance
e) decision table analysis
44. The fact that a few improvements in a few key areas of operations will have more impact than
many improvements in many other areas is consistent with the:
a) Irwin phenomenon
b) Pareto phenomenon
c) Stevenson phenomenon
d) Tellier phenomenon
e) Adam Smith phenomenon
45. Which of the following “best practices emphasized by service executives” had the highest
mean emphasize rating?
a. Leadership
b. Accessibility
c. Quality values
d. Customer orientation
e. Listening to the customer
46. The process of comparing outputs to previously established standards to determine if corrective
action is needed is called:
a) planning
b) directing
c) controlling
d) budgeting
e) disciplining
47. Which of the following does not relate to system design?
a) altering the system capacity
b) location of facilities
c) inventory management
d) selection and acquisition of equipment
e) physical arrangement of departments
48. Based on the Service-System Design Matrix, which of the following has a lower level of
“production efficiency”?
a. Face-to-face loose specs
b. Phone contact
c. Internet and on-site technology
d. Face-to-face tight specs
e. Mail contact
49. Taking a systems viewpoint with regard to operations in today's environment increasingly
leads decision-makers to consider ______________ in response to the ___________.
a) flexibility; pressure to be more efficient
b) off shoring; need to promote domestic production
c) sustainability; threat of global warming
d) technology; impact of random variation
e) forecasting; stabilization of demand
50. Which of the following is not a benefit of using models in decision-making?
a) They provide a standardized format for analyzing a problem.
b) They serve as a consistent tool for evaluation.
c) They are easy to use and less expensive than dealing with the actual situation.
d) All of the above are benefits.
e) None of the above is a benefit.
51. Modern firms increasingly rely on other firms to supply goods and services instead of doing
these tasks themselves. This increased level of _____________ is leading to increased
emphasis on ____________ management.
a) outsourcing; supply chain
b) off shoring; lean
c) downsizing; total quality
d) optimizing; inventory
e) internationalization; intercultural
52. Operations and sales are the two-________ functions in businesses.
a) strategic
b) tactical
c) support
d) line
53. Marketing depends on operations for information regarding ___________.
a) productivity
b) lead time
c) cash flow
d) budgeting
e) corporate intelligence
54. Two widely used metrics of variation are the __________ and the _________.
a) mean; standard deviation

b) productivity ratio; correlation
c) standardized mean; assignable deviation
d) randomized mean; standardized deviation
e) normal distribution; random variation
55. Which one is not generally considered an advantage of using models for decision-making?
a) Providing a systematic approach to problem solving.
b) Emphasizing quantitative information
c) Providing an exact representation of reality.
d) Enabling managers to answer "what if" questions
e) Requiring users to be specific about objectives.
a) Lean production.
b) Division of labor.
c) Mass production.
d) Interchangeable parts.
57. The operating characteristic (OC) curve shows the probability of
a) rejection for every possible true percentage of defectives
b) acceptance for every possible true percentage of defectives
c) making type I errors for various percentages of defectives
d) none of the above
58. If an artificial variable remains in the solution with a positive value after the stopping criterion
has been reached, the problem
a) is infeasible
b) is optimal
c) needs a new basis
d) has more than one solution
59. What are the two sources of costs in queuing analysis?

a) Arrivals and departures
b) Arrivals and idleness
c) Waiting customers and capacity
d) Equipment breakdowns and departures
60. Which of the following statements about variation is FALSE?
a) Variation prevents a production process from being as efficient as it can be.
b) Some variation can be prevented.
c) Variation can be either assignable or random.
d) Any variation makes a production process less productive.
e) Random variation generally cannot be influenced by managers.
61. Which of the following is essential to consider with respect to managing a process to meet
demand?
a) strategy
b) demand forecasts
c) capacity
d) all of the above
management?
a) Schedule work
b) Secure financial resources
c) Maintain quality
d) Oversee the transformation process
e) Manage inventories
63. Which one of these was not mentioned in the list of recent trends in operations management?
a) Total quality management
b) Worker involvement
c) Global competition.
d) Automation.
e) Environmental issues.
a) Lean production.
c) Mass production.
d) Craft production.
e) Interchangeable parts.
a) goods production
c) entertainment
d) price reduction
66. Which of the following is not true about a lean production system?
a) It puts emphasis on quality, flexibility, and time reduction.
b) It puts emphasis on reducing a company's labor force.
c) It is involved in maintaining and improving the system with lower amounts of
inventory.
d) It relies on buffers against unforeseen occurrences.
67. Which one of the following is not a typical question dealt with by operations managers?
a) How much capacity will be needed in the months ahead?
b) What is a satisfactory location for a new facility?
c) Which products/services should be offered?
d) All are typical of operations decisions.
a) A CPA firm.
b) A bank.
c) A hospital
d) They all use it.
69. The transportation model method that is used to evaluate location alternatives minimizes total.
a) sources
b) destinations
c) capacity
d) shipping costs
70.. What is simulation?

a) A quick solution method to problem-solving
b) A formalized deterministic approach to problem-solving
c) A graphical method to problem-solving
d) A trial-and-error approach to problem-solving
71. Moving from the aggregate plan to a master production schedule requires
a) rough cut capacity planning
b) sub-optimization
c) disaggregation
d) strategy formulation
72. Which of the following statements is true of Lean-Six Sigma?

a) Lean principles focus on advanced statistical methods.
b) Lean principles and Six-Sigma are separate bodies of knowledge
c) Lean principles have been developed over a lengthy period.
d) Lean principles include the 5Ss framework and practices.
74. When the flow of materials is variable,

a) layout by process is most suitable
b) b layout by product is most suitable
c) layout by fixed position is most suitable
d) line balancing is most suitable
75. A fixed interval system

a) adds the same predetermined amount to inventory each time replenishment occurs
b) is suitable for joint replenishment items
c) is triggered at the reorder level
d) requires perpetual monitoring of inventory records
76. Which of the following terms best defines the nature of Total Quality Management? a) An art
b) A philosophy
c) A science
d) A social activity
77. Which of the following terms reflects Japanese view of continuous improvement?
a) Kaizen
b) Poka-yoke
c) Six sigma
d) Control limits
78. Which of the following is NOT an element of TQM?
a) Leadership
b) Perceived quality
c) Employee empowerment
d) Customer focus
79. Which of the following is an example of appraisal cost?

a) Rework costs
b) Returned goods
c) Testing labs
d) Quality improvement programs
80. Warranty cost is an example of which of the following?

a) Internal failure cost
b) External failure cost
c) Prevention cost
d) Appraisal cost
81. Refer to the stage of PDCA (Plan, Do, Check, Act) cycle that involves evaluating the
improvement plan.
a) Plan
b) Do
c) Check
d) Act
82. Which of the following refers to a continuous measurement of an organization’s products and
processes against a company recognized as a leader in that industry?
a) Benchmarking
b) Gap analysis
c) Statistical process control
d) Continuous improvement
83. Which of the following is the focus of statistical process control?

a) Determining the efficiency of an operations system
b) Measuring the amount of re-work required to rectify faulty goods
c) Identifying the security needs of an operations system
d) Measuring and controlling process variations
84. Which of the following is a measure of how closely a product or service meets the
specifications?
a) Quality of Conformance
b) Continuous improvement
c) Competitive benchmarking
d) Statistical process control

a) goods production
c) entertainment
86. Technology choices seldom affect:

a) Costs.
b) Productivity.
c) Union activity.
d) Quality.
87. Measurements taken at various points in the transformation process for control purposes are
called:
a) Plans
b) Directions
c) Controls
d) Feedback.
88. Budgeting, analysis of investment proposals, and provision of funds are activities associated
with the _______ function.
a) Operation
b) Marketing
c) Purchasing
d) finance
89. Which one of the following would not generally be classified under the heading of
transformation?
a) Assembling
b) Teaching
c) staffing
d) Farming
e) consulting
90. Manufacturing work sent to other countries is called:

a) Downsized
b) Outsourced
c) Internationalization
e) entrepreneurial ship
91. Product design and process selection are examples of _______ decisions. a) Financial
b) Tactical
c) system design
d) system operation
e) Forecasting.
Dr.G.R.Damodaran College of Science
(Autonomous, affiliated to the Bharathiar University, recognized by the
UGC)Re-accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008
Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
II MIB [2017-2019]
SEMESTER IV
ELECTIVE : SUPPLY CHAIN MANAGEMENT- 453 U1
Multiple Choice Questions.
1. The goal of logistics is

A. to achieve a target level of customer service at lowest possible cost
B. to achieve targeted level of customer service.
C. increase in the market share.
D. All of the above.
ANSWER: D
2. In the product life cycle, the emphasis in marketing mix during growth stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.
ANSWER: A
3. In the product life cycle, the emphasis in marketing mix during maturity stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.
ANSWER: C
4. In the product life cycle, the emphasis in marketing mix during decline stage is
A. Distribution.
B. Promotion.
C. Price.
D. Cost reduction.
ANSWER: D
5. The concept of logistics has been systematically divided into

A. 2 phases.
B. 3 phases.
C. 4 phases.
D. 5 phases.
ANSWER: A
6. Michael porter explained the concept of
A. Motivation.
B. Cost advantage.
C. Competitive advantage.
D. Quest for quality.
ANSWER: C
7. EDI stands for

A. Electronic Data Interface.
B. Electronic Data Interchange.
C. Electronic Distribution Intermediary.
D. Electronic Documentation Interchange.
ANSWER: B
8. EOQ stands for

A. Electronic Ordered Quantity
B. Economic Order Quantity
C. Economic Order Quality
D. Electronic Obtained quantity
ANSWER: B
9. Packaging performs two functions. ___________ and logistics.

A. Distribution.
B. Store keeping.
C. Material handling.
D. Marketing.
ANSWER: D
10. Form utility is created by

A. Operation function.
B. Logistics function.
C. Procurement function.
D. Distribution function.
ANSWER: A
11. Place utility is created by

ANSWER: B
12. Time utility is created by

ANSWER: D
13. MRP stands for
A. Material requirement planning.
B. Manpower recruitment process.
C. Machine repair plan.
D. Mechanical re-engineering process.
ANSWER: A
14. MPS stands for

A. Manpower placement structure.
B. Master production schedule.
C. Manpower placement schedule.
D. Material processing schedule.
ANSWER: B
15. Master planning in the planning hierarchy

A. determines the direction of business.
B. creates the capacity.
C. involves the functional planning.
D. provides specification for manufacturing.
ANSWER: A
16. Master scheduling is the process that

ANSWER: B
17. Customer order processing level is that

ANSWER: D
18. Master planning deals with

A. customer interface.
B. marketing interface.
C. supplier interface.
D. manufacturing interface.
ANSWER: C
19. The service mission of logistics

A. reflect the vision of top management.
B. deal with basic services required for delivering of goods.
C. refers to the value-added services offered.
D. reflects the ability of firm to exploit market.
ANSWER: D
20. Firm infrastructure is __________ in the generic value chain of logistics
A. a support activity.
B. a primary activity.
C. not an activity.
D. the only activity.
ANSWER: A
21. Inbound and outbound logistics is _________ in the generic value chain of logistics.
C. not an activity.
ANSWER: B
22. HRM is _________ in the generic value chain of logistics.

C. not an activity.
ANSWER: C
23. Marketing and sales is ___________ in the generic value chain of logistics.
C. not an activity.
ANSWER: B
24. Competitive advantage can be created and achieved by logistics managers by

A. cost advantage.
B. Quality.
C. value advantage.
D. cost and value advantage.
ANSWER: D
25. Real time communication of information regarding requirements and availability of logistics
service is the core of
A. right response.
B. right quality.
C. right quantity.
D. right value.
ANSWER: A
26. The maintenance of a minimum possible level of inventory required for a desired level of
customer service is the objective of
A. right response.
B. right quality.
C. right quantity.
D. right value.
ANSWER: C
27. The logistical objective that ensures a proper balance between total logistics cost and a desired
level of customer service performance is
A. right response.
B. right quality.
C. right cost trade off.
D. right information.
ANSWER: C
28. Just in time is a practice followed in

A. Japan.
B. America.
C. Britain.
D. China.
ANSWER: A
29. The term which covers the operation of shifting the cargo to or from the vessel is
A. Rigging.
B. Slinging.
C. Carnage.
D. Forced discharge.
ANSWER: B
30. The term used for loading or unloading of heavy cargo is

A. Rigging.
B. Carnage.
C. Slinging.
D. Forced discharge.
ANSWER: B
31. The term used for carriage of goods when points of origin and destination are both within the
sovereignty of UK is
A. ULD.
B. Classification rate.
C. Valuation charge.
D. Cabotage.
ANSWER: D
32. The delivery of a damaged product has

A. An increase in its value.
B. A decrease in its value.
C. No change in its value.
D. Better demand.
ANSWER: B
33. The flow of work in process is

A. From a supplier to producer.
B. From the last production price to ultimate user.
C. Between the various production sub-system.
D. Between the various distribution channels.
ANSWER: C
34. The flow of information that facilitates co-ordination activities is

A. Forward information flow.
B. Backward information flow.
C. Upward information flow.
D. Downward information flow.
ANSWER: B
35. Unreliability of vendors leads to

A. Production uncertainty.
B. Process uncertainty.
C. Demand uncertainty.
D. Supply uncertainty.
ANSWER: D
36. The internal process leads to

ANSWER: B
37. The uncertainty that could be reduced through forecasting techniques is

ANSWER: C
38. The number of stages that the goods and services flow through
A. Add to the complexity of SCM.
B. Relaxes the complexity of SCM.
C. Brings no change in complexity of SCM.
D. Ensures better quality.
ANSWER: A
39. The business activity of farming out identified non-core activities to external agencies is
A. Logistics.
B. SCM.
C. Outsourcing.
D. Distribution.
ANSWER: C
40. The warehousing function that combines the logistical flow of several small shipments to a
specific market area is
A. Break bulk function.
B. Operational function.
C. Stockpiling function.
D. Consolidation function.
ANSWER: D
41. Cash on delivery method is normally used for

A. Bulk cargo with immediate market.
B. Slow moving items.
C. Small but valuable items sent by post.
D. Exports to countries with balance of payments problems.
ANSWER: C
42. An appropriate strategy to achieve timely, accurate, paperless information flow is:
A. integrate this activity into all supply chain planning.
B. efficient store assortments.
C. revision of organization processes supported by information systems.
D. efficient replacement.
ANSWER: C
43. An appropriate strategy to maximize efficiency of promotions is:

A. revision of organization processes supported by information systems.
B. efficient store assortments..
C. integrate this activity into all supply chain planning.
ANSWER: C
44. An appropriate strategy to optimize for time and cost in the ordering process is:
A. efficient store assortments.
B. revision of organization processes supported by information systems.
ANSWER: D
45. An appropriate strategy to optimize the productivity of retail space and inventory is:
A. efficient store assortments.
B. revision of organization processes supported by information systems.
ANSWER: A
46. The upstream supply chain is:

A. exclusively inside an organization.
B. involved with procurement of material from suppliers.
C. the distribution of products or delivery of services to customers.
D. both the first and third answer above.
ANSWER: B
47. The downstream supply chain is:

A. exclusively inside an organization.
B. involved with procurement of material from suppliers.
C. the distribution of products or delivery of services to customers.
ANSWER: C
48. The correct sequence of an organizations supply chain from a systems perspective is:
A. transformation process, delivery to customers, acquisition of resources.
B. transformation process, acquisition of resources, delivery to customers.
C. acquisition of resources, transformation process, delivery to customers.
D. delivery to customers, acquisition of resources, transformation process.
ANSWER: C
49. ______ offers the opportunity to buy direct from the supplier with reduced costs and shorter
cycle.
A. Reintermediation
B. Countermediation
C. Contramediation
D. Disintermediation
ANSWER: D
50. IS can be used to reduce cycle time by:

A. increased efficiency of individual processes.
B. improved data integration between elements of the supply chain.
C. reduced cost through outsourcing.
D. reduced complexity of the supply chain.
ANSWER: A
51. The typical aim of the push approach to supply chain management is:
A. to reduce costs of distribution.
B. to enhance product and service quality.
C. to reduce costs of new product development.
ANSWER: D
52. One choice for an organization's vertical integration strategy related to 'The direction of any
expansion'. What does this mean?
A. How far should the company take downstream or upstream vertical integration?
B. Should the company aim to direct ownership at the upstream or downstream supply chain?
C. To what extent does each stage of the supply chain focus on supporting the immediate supply
chain?
D. How to enhance product and service quality.
ANSWER: B

A. to find products that are similar
B. to facilitate wholesalers inventory selections
C. to create synergy in their training programs
D. to create and deliver goods to consumers
ANSWER: D
54. An important feature of supply chain management is its application of electronic commerce
technology that allows companies to share and operate systems for:
A. order processing, transportation scheduling, and inventory management.
B. cost-effective flowing of raw materials
C. future purchasing of computer systems
D. future merger opportunities
ANSWER: A

A. customer and prospects
B. supplier and manufacturer
C. suppliers and customers
D. warehousing and wholesaling units
ANSWER: C
56. In the automotive industry, the person who is responsible for translating customer requirements
into actual orders and arranges delivery dates is the car maker:
A. supply manager
B. purchasing manager
C. supply chain manager
D. production manager
ANSWER: C
57. It is estimated that the logistics costs of a new car are about:
A. 10-20%
B. 25-30%
C. 20-25%
D. 30-40%
ANSWER: B
58. An appropriate strategy to achieve timely, accurate, paperless information flow is:
A. revision of organisation processes supported by information systems
B. integrate this activity is integrated into all supply chain planning
C. efficient replacement
D. efficient store assortments
ANSWER: A
59. An appropriate strategy to maximise efficiency of promotions is:

A. revision of organisation processes supported by information systems
B. integrate this activity is integrated into all supply chain planning
D. efficient store assortments
ANSWER: B
60. An appropriate strategy to optimise for time and cost in the ordering process is:
A. efficient store assortments
B. revision of organisation processes supported by information systems
D. integrate this activity is integrated into all supply chain planning
ANSWER: C
61. An appropriate strategy to optimise the productivity of retail space and inventory is:
A. integrate this activity is integrated into all supply chain planning
B. efficient store assortments
C. revision of organisation processes supported by information systems
D. efficient replacement
ANSWER: B
62. The upstream supply chain is:

A. exclusively inside an organisation
B. the distribution of products or delivery of services to customers
C. involved with procurement of material from suppliers
D. both the first and third answer above
ANSWER: C
63. The downstream supply chain is:

A. exclusively inside an organisation
B. involved with procurement of material from suppliers
C. the distribution of products or delivery of services to customers
ANSWER: C
64. One of the important role of distribution in SCM towards base cost reduction is
A. Transportation
B. Warehousing/inventory
C. Information
D. all the above
ANSWER: D
65. ______ offers the opportunity to buy direct from the supplier with reduced costs and shorter
cycle
A. Reintermediation
B. Countermediation
C. Disintermediation
D. Contramediation
ANSWER: C
66. IS can be used to reduce cycle time by:

A. improved data integration between elements of the supply chain
B. increased efficiency of individual processes
C. reduced cost through outsourcing
D. reduced complexity of the supply chain
ANSWER: B
67. The typical aim of the push approach to supply chain management is:
A. to reduce costs of distribution
B. to enhance product and service quality
C. to reduce costs of new product development
ANSWER: D
68. _______ analysis relates to what processes, activities, and decisions actually create costs in
your supply chain.
A. Cost driver
B. Value proposition
C. Cost reduction
D. Target costing
ANSWER: A
69. MRO stands for

A. Management Resource Outstanding
B. Maintanance Repair Operative
C. Marketing Reverse Order
D. Maintanance Record Overview
ANSWER: B
70. The _______ has made it possible for other companies to eliminate intermediaries and sell
directly to the end consumer.
A. SCM
B. Internet
C. competition
D. global sourcing
ANSWER: B
71. Value stream mapping is an application of process mapping, developed to apply _______
principles to process improvement.
A. Management
B. Lean
C. Supply chain
D. Cycle time
ANSWER: B
72. A supply chain is made up of a series of processes that involve an input, a _______, and an
output.
A. Shipment
B. Supplier
C. customer
D. Transformation
ANSWER: D
73. _______ is a tool to chart how individual processes are currently being conducted and to help
lay out new improved processes.
A. Process mapping
B. Pareto charting
C. Supply chain design
D. Design chain mapping
ANSWER: A
74. from the following list a major strategic risk associated with outsourcing.
A. Outsourcing landed cost is usually higher than in sourcing cost.
B. The supplier is purchased by a competitor.
C. The business loses sight of market trends.
D. The cost of supplied material is passed on to the customer.
ANSWER: B
75. _______ is the design of seamless value-added processes across organization boundaries to
meet the real needs of the end customer.
A. Operations
B. Supply chain management
C. Process engineering
D. Value charting
ANSWER: B
76. The impact of cost reduction on profits is much larger than the impact of increased
A. innovation.
B. production
C. information.
D. sales
ANSWER: D
77. _______ considers how your organization competes and is an essential element of corporate
strategy.
A. Value proposition analysis
B. Leadership
C. A consultant
D. A competitor
ANSWER: A
78. Demand Forecasting is

A. an imperfect science
B. accompanied with forecast error
C. identifying the future demand
D. all the above
ANSWER: D
79. The collective learning in the organization, especially how to coordinate diverse production
skills and integrate multiple streams of technologies, is called
A. innovative constraint.
B. second-tier competency.
C. corporate skill.
D. core competency.
ANSWER: D
80. Integration of business economics and strategic planning has given rise to a new area of study
called __________.
A. Micro Economics
B. Corporate Economics
C. Macro Economics
D. Managerial Economics
ANSWER: B
81. Factors affecting network design decisions

A. strategic factor
B. micro economic factor
C. competitive factor
D. all the above
ANSWER: D
82. When suppliers, distributors, and customers partner with each other to improve the performance
of the entire system, they are participating in a ________
A. channel of distribution
B. value delivery network
C. supply chain
D. supply and demand chain
ANSWER: B

A. customer's choices
B. employee in the channel
C. channel member
D. marketing decision
ANSWER: D
84. From the economic system's point of view, the role of marke ting intermediaries is to transform
the assortment of products made by producers into the assortment of products wanted by ________.
channel members
A. manufacturers
B. marketers
C. distributors
D. consumers
ANSWER: D
85. Intermediaries play an importan t role in matching ________.

A. dealer with customer
B. manufacturer to product
C. information and promotion
D. supply and demand
ANSWER: D
86. Marketing logistics involves getting the right product to the right customer in the r ight place at
the right time. Which one of the following is not included in this process?
A. implementing the plan for the flow of goods and services
B. planning the physical flow of goods and services
C. gathering customer's ideas for new products
D. controlling the physical flow of goods, se rvices, and information
ANSWER: C
A. inventory
B. marketing
C. warehousing
D. purchasing
ANSWER: B
88. From the economic system's point of view, the role of marketing intermediaries is to transform
the assortment of products made by producers into the assortment of products wanted by ________
channel members.
A. manufacturers
B. marketers
C. distributors
D. consumers
ANSWER: C
89. To reduce inventory management costs, many companies use a system called ________, which
involves carrying only small inventories of parts or merchandise, often only enough for a few days
of operation.
A. reduction
B. inventory management
C. supply chain management
D. economic order quantity
ANSWER: B
90. Companies manage their supply chains through ___ _____.

A. information
B. transportation modes
C. competitors
D. skilled operators
ANSWER: D
91. Julie Newmar recognizes that her company needs to provide better customer service and trim
distribution costs through team work, both inside the company and among all the marketing
A. intermediation
B. customer relationship management
C. integrated logistics management
D. horizontal marketing syste m management
ANSWER: C
92. Today, a growing number of firms now outsource some or all of their logistics to ________.
intermediaries
A. competitors
B. third - party logistics providers
C. channel members
D. cross - functiona l teams
ANSWER: D
93. According to Professor Mentzer and colleagues, the supply chain concept originated in what
discipline?
A. marketing
B. operations
C. logistics
D. production
ANSWER: B
94. The supply chain management philosophy emerged in whic h decade?

A. 1960s
B. 1970s
C. 1980s
D. 1990s
ANSWER: B
goods from the raw material stage, through to the end user, as well as the associated info rmation
flows.
A. production line
B. supply chain
C. marketing channel
D. warehouse
ANSWER: B
A. inventory control
B. leveraging technology
C. custo mer power
D. a long - term orientation
ANSWER: C
97. . Positive, long - term relationships between supply chain participants refer to:
A. co - opetition
B. tailored logistics
C. partnerships
D. supply chain manag ement
ANSWER: D
98. Cross docking is the major SC technique used by

A. Flipkart
B. Wall mart
C. Dell
D. Zara
ANSWER: B

A. cannot be controlled
B. refers to the bullwhip effect
C. can be controlled with electronic order placement
D. is more pronounced in relational exchanges
ANSWER: B
100. Cooperative supply chain relationships developed to enhance the overall business performance
of both parties is a definition of:
A. third - party logistics
B. supply chain collabor ation
C. dovetailing
D. relationship marketing
ANSWER: B

A. simultaneous achievement of relevant customer metrics
B. an order that arrives on time
C. an order that arrives undamaged
D. an order that is e asy for the receiver to fill
ANSWER: A
102. The method of payment where the exporter relies on the undertaking of a bank to pay is
A. Bank guarantee.
B. Letter of credit.
C. Letter of comfort.
D. None of the above.
ANSWER: D
103. The beneficiary under a letter of credit is

A. The bank opening the credit.
B. The customer of the opening bank.
C. The confirming bank.
D. The exporter.
ANSWER: D
104. When a letter of credit does not indicate whether it is revocable or irrevocable, it is treated as
A. Revocable.
B. Irrevocable.
C. Revocable or irrevocable in the option of the beneficiary.
D. Revocable or irrevocable in the option of the negotiating bank.
ANSWER: B
105. Under an acceptance letter of credit, the responsibility of the issuing bank is
A. Only to accept the bill.
B. To pay against the bill.
C. To accept the bill immediately and also to pay the amount of the bill on its due date.
D. To get the acceptance of the importer on the bill.
ANSWER: C
106. A confirmed letter of credit is one
A. Confirmed to be authentic.
B. Confirmed by the importer to be correct.
C. Confirmed by the exporter that he agrees to the conditions.
D. To get the acceptance of the importer on the bill.
ANSWER: C
107. The warehousing function that combines the logistical flow of several small shipments to a
specific market area is
A. Break bulk function.
B. Operational function.
C. Stockpiling function.
D. Consolidation function.
ANSWER: D
108. The warehouses located near the port is

A. Field warehouse.
B. Buffer storage warehouse.
C. Bonded warehouse.
D. Export and import warehouse.
ANSWER: D
109. The kind of warehouse that is licensed and authorized by the customs for storing goods till
import duty is
A. Field warehouse.
B. Buffer storage warehouse.
C. Bonded warehouse.
D. Export and import warehouse.
ANSWER: C
110. The business activity of farming out identified non-core activities to external agencies is
A. Logistics.
B. SCM.
C. Outsourcing.
D. Distribution.
ANSWER: C
111. Which of the following statements is true?

A. Supply chain is a subset of logistics.
B. Logistics is a subset of supply chain.
C. Transportation and logistics are same.
D. Logistics and supply chain are same.
ANSWER: B
112. If a customer visiting a departmental store cannot find his desired soap manufactured by
Hindustan Unilever Ltd (HUL) in the store, which of the following chain partner will he hold
responsible for the non-availability of the soap?
A. The logistics service provider
B. The distributor
C. The departmental store
D. Hindustan Unilever Ltd
ANSWER: C
113. A Supply chain process is viewed as

A. Birds eye view
B. Technical view
C. strategic view
D. cyclic and push/pull view
ANSWER: D
114. Supply chain is concerned with the

A. flow of raw materials, WIP and finished products in the forward direction
B. flow of information in both the directions
C. flow of materials in the forward direction, cash in the reverse direction and information in
both the directions
D. flow of materials in the forward direction and that of cash in the reverse direction
ANSWER: C
115. The objective of a supply chain is:

A. to improve the efficiency across the whole supply chain
B. to improve responsiveness across the whole supply chain
C. to deliver improved value to the customers
D. to improve the efficiency and responsiveness across the whole supply chain and also deliver
improved value to the customers
ANSWER: D

A. Ford supply chain is both highly efficient as well as highly responsive.
B. Dell supply chain propagated the concept of long-term relationship with the suppliers.
C. Toyota supply chain believed in medium-term relationship with the suppliers with loosely
held supplier network.
D. Dell supply chain is both highly efficient as well as highly responsive.
ANSWER: B
117. which type of demand forecast is related to environmental factors

A. Qualitative forecast
B. Time forecast
C. Casual forecast
D. Simulation forecast
ANSWER: C
118. Which of the following statements is true regarding outsourcing?

A. Higher level of outsourcing enables a firm to have better control on all outsourced activities.
B. Higher level of outsourcing makes a firm more vulnerable to outside influences.
C. Higher level of outsourcing enables a firm to outsource core activities to other competent
players.
D. Higher level of outsourcing enables a firm to outsource non-core activities to other competent
players.
ANSWER: A
119. If the focus of a retailer is to achieve leadership in cost, then which of the following
phenomenon will hold good?
A. Customers will like to have convenience and the retailers will also set up a number of stores at
different locations in order to provide convenience to the customers.
B. Customers will prefer a large variety of products and the retailer will also keep a large variety
in the store in order to satisfy customer needs.
C. Customers will prefer a large variety of products but the retailer will not keep a large variety
in the store in order to achieve economies of scale.
D. Customers will prefer short lead time for their products and the retailer will keep higher
amount of inventory in order to satisfy customer needs in time.
ANSWER: C
120. The companies will realize the benefits of implementing IT when which of the following is
undertaken?
A. Companies need to invest heavily in information systems.
B. Companies need to automate the existing supply chain systems and processes.
C. Companies need to re-engineer their supply chain structure.
D. Companies need to re-engineer their supply chain structure and undertake revision in the
supporting organizational processes.
ANSWER: D
121. Ford supply chain is characterized by

A. Increased product variety
B. Loosely-held supplier networks
C. Vertical integration
D. Long-term relationship with the suppliers
ANSWER: C
122. Dell supply chain is characterized by

A. Lean production systems
B. Zero product variety
C. Vertical integration
D. Individual customization
ANSWER: D

A. A 3PL company is a professional logistics service provider meeting the logistics requirements
of an organization and can also integrate its resources, capability, and technology in order to
provide comprehensive solution to its customers.
B. A 4PL company is a professional logistics service provider meeting the logistics requirements
of an organization and can also integrate its resources, capability, and technology in order to
provide comprehensive solution to its customers.
C. A 3PL is a logistics service provider meeting only the logistics requirements of an
organization while 4PL is a logistics service provider meeting the logistics requirements of an
organization and can also integrate its resources, capability and technology to provide
comprehensive solution to its customers.
D. A 4PL company is a professional logistics service provider meeting only the logistics
requirements of an organization.
ANSWER: C
124. Which one of the following is not the supply challenge being faced by the Indian
organizations?
A. Poor infrastructure
B. IT implementation
C. Complex taxation structure
D. Smaller pack sizes
ANSWER: B
125. Many organisations hold safety stocks as part of their inventory. Which of the following is a
reason for holding safety stocks?
A. To improve stock holding levels
B. To improve stock accuracy levels
C. To cater for demand forecast errors
D. To cater for a large storage capacity.
ANSWER: C
126. Which of the following stock valuation methods is based on a cost estimate made before the
part is purchased?
A. Standard costing
B. FIFO
C. Average costing
D. LIFO.
ANSWER: A
127. The receipt used for warehouse is

A. Inventory receipt
B. Dock receipt
C. EDI receipt
D. Goods receipt
ANSWER: B
128. Warehouses and stockyards are two types of storage facilities. Which of the following is the
most appropriate factor to consider in the design of a stockyard?
A. Structure
B. Services
C. Surface
D. Shelving.
ANSWER: C
129. Managing predictable variability is

A. managing the seasonal demand
B. managing the change in demand that can be forecasted
C. forecasted error ratio
D. managing stock out situation
ANSWER: B
A. Ford supply chain is both highly efficient as well as highly responsive.
B. Dell supply chain is both highly efficient as well as highly responsive.
C. Dell supply chain propagated the concept of long-term relationship with the suppliers.
D. Toyota supply chain believed in medium-term relationship with the suppliers with loosely
held supplier network.
ANSWER: C
131. Role of distribution in supply chain management

A. providing localised services
B. Collecting product reviews from customers which could be used by manufacturers
C. Reduces inventory holding cost
D. All the above
ANSWER: D
132. Which of the following types of container is used to carry oversized cargo?
A. Bulk
B. Flat rack
C. Reefer
D. Tank.
ANSWER: B
133. Which of the following is the name given to a bill of lading where goods have been received
by a carrier free of defects?
A. Shipped bill of lading
B. Claused bill of lading
C. Ordinary bill of lading
D. Clean bill of lading.
ANSWER: D
134. TQM means

A. Total quality management
B. Transport quality manageemnt
C. Terminal quay management
D. Total quantity managament
ANSWER: A
135. The objective of limited integrated business function stage is

A. Cost cost.
B. Maximisation of profit by sales volume.
C. Core competency.
D. Maximisation of profitable sales volume and cost reduction.
ANSWER: A
136. The objective of internally integrated business function stage is

A. Cost.
C. Core competency.
ANSWER: D
137. The objective of externally integrated business function stage is

A. Cost.
C. Core competency.
ANSWER: C
138. KAIZEN means

A. Complete improvement
B. Collaborative planning and improvement
C. Continous improvement
D. Continous monitoring
ANSWER: C
139. Packaging performs two functions. ___________ and logistics.

A. Distribution.
B. Store keeping.
C. Material handling.
D. Marketing.
ANSWER: D
140. Form utility is created by

ANSWER: A
141. Place utility is created by

ANSWER: B
142. Time utility is created by

ANSWER: D
143. The strategic component of logistical mission

ANSWER: A
144. The logistical component of logistics mission

ANSWER: B
145. World classic Supply chain Companies

A. TOYOTA
B. APPLE
C. WAL MART
D. All the above
ANSWER: D
146. Firm infrastructure is __________ in the generic value chain of logistics

C. not an activity.
ANSWER: A
147. Inbound and outbound logistics is _________ in the generic value chain of logistics.
C. not an activity.
ANSWER: B
148. The logistics strategic analysis

A. reflects the capability of the management to think beyond the current way.
B. reflects the extent of use of logistical component for competitive advantage.
C. ensures effective implementation of logistics strategy.
D. deals with managing change.
ANSWER: B
149. The department in the shipping company that ensures the seaworthiness of the ship is
A. husbandry department.
B. finance department.
C. technical department.
D. operating department.
ANSWER: A
150. The department that aims to maximize the economic employment of the ship is
A. husbandry department.
B. finance department.
C. technical department.
D. operating department.
ANSWER: D
Staff Name
Parimala K .
205-OSCM-UNIT-I
Q.1. is deals with managing the process that convert input into output
A) Lean management
B) Lean thinking
C) Quality management
D) Operation management
Q.2. Productivity is the ratio of
A) Output/input
B) Input/output
C) Cost/ Sales
D) Sales/ Cost
Q.3. Operation management is
A) Staff function
B) Line function
C) Both
D) None of these
Q.4. Quality is an asset which may be offered to the potential customer of product or service,
these definition is given by
A) F.W.Taylor
B) C.D.Lewis
C) Henry Feol
D) J.Lendy
Q.5. The quality management principle are defined in
A) ISO 9000:2005
B) ISO 9004:2009
C) ISO 9004:2000
D) ISO 19011:2011
Q.6. Quality include which of the following dimention
A) Durability
B)Perception
C) Reability
D) All of the above
Q.7. The following definition is given by “TQM is the control of all transformation processes of
an organization to best satisfy customer’s need in the most economical manner”
A) C.D.lewis
B) Prof. Leopald S. Vasin
C) C.W.Kennedy
D) Edward Deming
Q.8. SQC stands for
A) Strategic Quality Control
B) Statistical Quality Control
C) Structured Qualty Control
D) None of these
Q.9. Find out the odd one
A) Man
B) Material
C) Machine
D) Goods
Q.10. The concept of Operation research was developed in
A) 1920
B) 1930
C) 1940
D) 1950
Q.11. In lean manufacturing JIT stands for
A) Just in time
B) Job in time
C) Just in tools
D) None of these
Q.12. incudes Preparation of short term product
A )Production planning
B) Production Control
C) Qualty Control
D) None of these
Q.13. The following Objective is related with
A) Objective- Control of flow material into the Plan
B) Production planning
C) Production Control
D) Quality Control
Q.14. is determined by the cost of the product and the technical charactristic
A) Right Quantity
B) Right Quality
C) Right Time
D) None Of These
Q.15. Combination layout is also called as
A) Product Layout
B) Process Layout
C) Hybrid Layout
D) All of the above
Q.16. Capacity Planning deals with Procurement of Productive Resources
A) True
B) False
Q.17. Which of The following are characteristic of services
A) Intangibility
B) Inconsistency
C) Inseparability
D) Inventory
E) All of the above
Q.18.This definition is given by “Supply chain management is an integrative philosophy to
manage total flow of distribution channel from the supplier to the ultimate user”
A) Christopher
B) Cooper and Ellram
C) Andrew Fuel
D) C.D.Lewis
Q.19…………. is a next phase ofLogistic management
A) Operations management
B) Supply chain management
C) Inventory management
D) Synthetic Analysis
Q.20.Which of the following is not an objective of supply chain management?
A) Minimising the time
B) Minimising work-in-progress
C) Reduces Transportation cost
D) Increasing warehousing cost
Q.21. Raw supply chain are the basic types of supply chain management system
A) True
B) False
Q.22. ERP stands for
A) Enterpise resource planning
B) Enterprenour Resource planning
C) Entairtainment resource planning
D) Enterprise Require planning
Q.23. Cash to cash cycle chain are also known as
A) Financial oriented supply chain
B) Production orienterd supply chain
C) Market oriented supply chain
D) None of these
Q.24. Supply chain activity can be grouped into
A) Strategic Level
B) Tactical level
C) Operational level
D) All of these
Q.25. OSM stands for
A) Operation and supply management
B) Orientation and supply management
C) Operation source management
D) Operation and supply matrix
Q.26. Who said the following statement” Quality should be aimed at the need of the customer,
present and future”
A) Christopher
C) Andrew Fuel
D) Edwards Deming
Q.27. Who have organized Quality moment four distinct ( Quality eras)
A) Garvin
C) Andrew Fuel
D) Edwards Deming
Q.27. Gauging and measurement is a method in
A) Inspection
B) SQC
C) QC
D) TQM
Q.28. Which of the following is not included in 8 quality management principle
A) Leadership
B) Customer focus
C) Employee Involvement
D) Product Approach
Q.29. is an important part of Lean thinking
A) Lean management
B) Just in time
C) Operation management
D) Supply Chain management
Q.30. Mass Management is based on…………. While Lean management is based on …..
A) Price, Long term relation
B) Long term relation, Price
C) Product, Long term relation
D) Long term relation, Product
Q.31. Employees are also consider as External customer of organization
A) True
B) False
Q.32. Supply chain management is network of…..
A) Supplier
B) Distributor
C) Manufacturer
D) Customer
E) All of the above
Q.33 …….. Approach states that we do not make anything until the customer orders it
A) Value
B) Flow
C) Pull
D) Perfection
Q.34. which of the following sequence is correct about Flows in supply chain management
A) Value flow, cash flow, information flow
B) value flow ,information flow, cash flow
C) Information flow, cash flow ,value flow
D) Cash flow ,value flow ,information flow
Q.35.Wich of the following are synomus of ‘Quality’
A) Character
B) Trait
C) Features
D) Attributes
E) All of the above
Q.36. which of the following is not included in Garvins quality errors?
A) Quality assurance
B) Inspections
C) Statically quality control
D) lean manufacturing
Q.37. TQM Is customer oriented?
A) True
B) False
Q.38.Which of the following are benefits of TQM?
A) Better employee relations
B) Increases efficency
C) Improved operational performance
D) All of the above
Q.39. MRP stands for
A) Material resource planning
B) Material requirement planning
C) Man resource planning
D) Non of the above
Q.40. Which of the following is basic principle of Lean thinking?
A) Pull
B) Value
C) Perfection
D) All of the above
Q.41. How many flows are involved in SCM
A) 1
B) 2
C) 3
D) 4
Q.42 Continues improvement means?
A) Kaizen
B) Just in time
C) TQM
D) SCM
Q.43. Which of the following are advantage of internal customer?
A) Better communication
B) Improved work flows
C) Interdepartmental coloration
D) all of these
Q.44. Project process comes under continuous flow system
A) True
B) False
Q.45.The main feature of job production is high variety of products and high volume?
A) True
B) False
Q.46. This definition given by “Layout identically involves the allocation of space and the
arrangement of equipment in such a manner that overall costs are minimized”
A) James Lundy
B) Riggs
C) Wayne
D) C.D Lewis
Q.47. The concept of Traditional Quality Management is product oriented?
A) True
B) False
Q.48. Which of the following is not benefit of service blue printing?
A) Improvement of service System
B) Visual Representation
C) Identification of customer contact points
D) All of the above
Q.49. Which of the following is not a characteristic of intermittent flow system?
A) Functional or process layout is adopted
B) The components are produced for inventory but they are assembled as per customer orders
C) The volume of production is generally Large
D) None of the above.
Q.50. Which is not a characteristic of Job production?
A) A wide range of general purpose machines
B) The product manufactured is custom made
C) Volume of output is generally small
D) Machines and equipment are arranged or assembled at different place.
51) Zero defects in manufacturing is
A) is a relevant goal only in electronic assembly
B) is readily achievable in all areas
C) is the goal of TQM
D) is an unobtainable and misleading idea
52)Lean production involves
A)Elimination of cost only
B)Improvement of quality only
C)Improvement of cost only
D)Elimination of all type of waste
53)Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of
events through which a product travels is a
Pareto Chart
Check sheet
Flow Chart
Taguchi map
54) Quality is both quantitative and
A) Supportive
B) Measurable
C) Conclusive
D) Qualitative
55)Which of the following is not an area of responsibility for a logistics manager?
A)Inventory
B)Purchasing
C)Warehousing
D)Marketing
56 In a SC,Material flows in one direction while _________from in both direction
A)Process
B)Product
C)Information
D)Semifinished Goods
57)The goal of inspection is to
A)detect a bad process immediately
B) correct system deficiencies
C)add value to a product or service
D)correct deficiencies in products
58) A supply chain is a sequence of firms that perform activities required:
A)to create and deliver goods to consumers
B)to find products that are similar
C)to facilitate wholesalers inventory selections
D)to create synergy in their training programs
59) What are the two basic types of production systems?
A) Automated and manual
B) Continuous process and batch
C) Normal and continuous process
D) Intermittent and non-intermittent process.
60) In a manufacturing Organisation, raw material enters its premises through:
A) Purchase department
B) Sales department
C) Production department
D) Supply System
61) SCM is focused on Planning, while ERP is focused on _______________.
A) Implementing
B) Execution
C) Supplying
d).Production
62) The higher the supply chain _______, the more successful the supply chain.
A) Global issues
B) Location
C) Inventory
D) Profitability
63) Objective of __________ technology is to minimise the overall costs by increasing
operational efficiency of the ___________.
A) Logistics, manufacturing process
B) Supply chain, operational process
C) Information, process
D) Integration, overall supply chain
64) Inspection assures that
A) The process is in control
B) Workers are motivated
C) Quality problems are solved
D) Product meets specification
65) ISO 9000 determines
A) If vendors are performing well
B) If the company practices its
written procedures
C) Process capability
D) The kind of control chart to be
used
66) Cost of quality is really
A) Cost of high-quality products
B) Cost of production
C) Cost of sales
D) A way to prioritize actions
67) Value stream mapping is an application of process mapping, developed to apply _______
principles to process improvement.
A) Management
B) Lean
C) Supply Chain
D) Cycle time
68) A supply chain is made up of a series of processes that involve an input, a _______, and an
output.
A) Shipment
B) Supplier
C) Customer
D) Transformation
69) “3PL” involves using a supplier to provide _______ services.
A) Marketing
B) Design
C) Logistics
D) Contract manufacturing
ANSWERS
1 D 16 A 31 B 46 A 61 B
2 A 17 E 32 E 47 A 62 D
3 B 18 B 33 C 48 D 63 A
4 B 19 B 34 B 49 C 64 D
5 A 20 D 35 E 50 D 65 B
6 D 21 A 36 D 51 C 66 D
7 B 22 A 37 A 52 D 67 B
8 B 23 A 38 D 53 C 68 D
9 D 24 D 39 B 54 D 69 C
10 C 25 A 40 D 55 D 70
11 A 26 D 41 D 56 C
12 A 27 A 42 A 57 B
13 C 28 D 43 D 58 A
14 B 29 A 44 B 59 D
15 C 30 A 45 B 60 D
205-OSCM-Unit No. II
Q.1. which of the following are process characteristic in operation

A) Volume
B) Variety
C) Flow
D) Volume variety relation
E) All of the above
Q.2. What is the full form of PERT
A) Programme Evaluation Review Technique
B) Programme Evaluation Report Technique
C) Process Evaluation Review Technique
D) Process Evaluation Report Technique
Q.3. It is the Characterized by long production runs of identical or similar discrete items through
the same sequences of Operation/ processing steps
A) Continuous Flow system
B) Intermittent flow system
C) Both A and B
D) None Of these
Q.4. High initial cost is a disadvantage of continuous flow technology
A) True
B) false
Q.5. The ability to produce a wide variety of output at reasonable cost is a characteristic of
A) Continuous Flow system
B) Intermitant flow system
C) Both A and B
D) None Of these
Q.6. These definition is given by “ Facility layout ideally involves the allocation of space and the
arrangement of equipment in such a manner and overall operations cost be minimized “
A) J.Lundy
B) Shubin
C) Keith and Gubellini
D) None of These
Q.7. Product layout is also called as
A) Flow line layout
B) Straight line layout
C) Line processing layout
D) All of these
Q.8. Queuing theory is associated with
A) Waiting line analysis
B) QFD
C) TQM
D) None of these
Q.9. Quality function deployment (QFD) theory was first define by
A) Yojiakao
B) Henry Fayol
C) F W Taylor
D) C.W Lewis
Q.10. Intermittent means continuous
A) True
B) False
Q.11. Product ___ process matrix was introduced by ______
A) Hayes
B) Wheelwright
C) Both (a) and (b)
D) None of these
Q.12. _____ computerized based technique and tool wich help to schedule production system
A) OPT
B) SCM
C) TQM
D) JIT
Q.13. OPT stands or
A) Optimized production technology
B) Optimized production tools
C) Opportunity process table
D) Optimized process tools
Q.14. __________ is a categorization matrix of service industry firms based on the
characteristics of the individual firm service process
A) System process matrix
B) Service process matrix
C) Service product matrix
D) Service blueprint
Q.15. A flow chart that identifies high customer contact steps is called as
A) Benchmarking
B) Brainstorming
C) Checklist
D) Service blueprint
Q.16. A signaling device used to control reduction
A) Kanban
B) JIT
C) Kiezen
D) TQM
Q.17. A service is a tangible process and goods are intangible.
A) True
B) False
Q.18. Find out the odd one
A) Inputs
B) Outputs
C) Transformation process
D) Services
Q.19. ……… is an input and ……. Is an output
A) Book, Knowledge
B) Knowledge, Book
C) Book, Teachers
D) Teachers,Book
Q.20. CPM stands for
A) Critical part method
B) Critical path Management
C) Common part method
D) Common path method
Q.21. Volume is the average quantity of the products produced in a manufacturing system
A) True
B) False
Q.22. Synthetic production comes under
A) Contionous flow system
B) Intermitant flow system
C) Both A and B
D) None of these
Q.23 Jobs and batch manufacturing comes under?
A) Intermittent flow system
B) Continues flow system
C) Both A&B
D)None of these
Q.24.Generally the size of order is small in case of?
C) Both A&B
D) None of this
Q.25.Bulk purchase material done under at periodical intervals in……..?
C) Both A&B
D) None of this
Q.26.Job shop process is appropriate in which stage in product life cycle
A ) Introduction
B) Growth
C) Maturity
D) Decline
Q.27. In batch production Cost per unit is lower is compare to job order production?
A) True
B) False
Q.28 Which of the following is not a advantage of mass production?
A) Higher rate of Production
B) Higher capacity Utilization
C) Less Skilled operators are required
D) High process inventory
Q.29. Which of the following is the type of facility layout?
A) Process Layout
B) Product Layout
C) Hybrid Layout
D) Variable position Layout
Q.30.Layout for serialized manufacture is also called as?
A) Process Layout
B) Product Layout
C) Hybrid Layout
D) Variable position Layout
Q.31. Process are grouped in sale using technique known as?
A) Group technology
B) Product layout
C) facility layout
D)Process layout
Q.32 In which layout the major product being product fixed at one location?
A) Fixed position layout
B) Product position layout
C) Facility position layout
D) Process position layout
Q.33. Which of the following factor involved in service system design?
A) Technology
B) Categories of service
C) Volumes
D) Order-Winners and Qualifiers
E) All of the above
Q.34. QFD stands for
A) Quality function deployment
B) Quantity function deployment
C) Queing function deployment
D) All of the above
Q.35. …………. is a tool for analyzing the relationship between product life cycle and
technological life cycle?
A) product matrix
B) process matrix
C) product-process matrix
D) Facility layout
Q.36.CRAFT stands for?
A) Computerized Relative Allocation of Facilities Technique
B) Computerized Rational Allocation of Facilities Technique
C) Cooperative Relative Allocation of Facilities Technique
D) Computerized Revise Allocation of Facilities Technique
Q.37.…….. prevents quality measurement ?
A ) Intangibility
B) inconsistency
C ) inventory
D) insepratability
Q.38.80% ,20% principal is associated with?
A ) Pareto principle
B) Just in time
C) Supply chain management
D) Total quality management
Q.39. Also called a job-shop or functional layout,a format in which similar equipment or
functions are grouped together?
A) Workcenter
B) Assembly Line
C) Manufacturing cell
D) Project layout
Q.40.Equipment or work processes are arranged According to the progressive steps by which the
product is made?
A) Workcenter
B) Assembly Line
D) Project layout
Q.41. Groups dissimilar machines to work on products that have similar shapes and processing
requirement
A) Workcenter
B) Assembly Line
D) Project layout
Q.42. The product remains at one location, and equipment is moved to the product.
A) Workcenter
B) Assembly Line
D) Project layout
Q.43. Which of the following are the objective of quality control?
A) To improve companies income
B) To reduce companies cost
C) To improve production scale
D) All of the above
44) What type of process would a Cement plant be most likely to use?
A) Job shop
B) Project c
C) Continuous flow
D) Flow shop
45) Construction of fertilizer plant is
A) Project
B) Continuous
C) Job
D) Flow shop
46) What name is often given to processes which involve the manufacture of a unique item from
beginning to end?
A) Jobbing processes
B) Batch processes.
C) Lean production processes.
D) Continuous processes.
47) Product design and process selection are examples of _______ decisions.
A) Financial
b) System design
c) Tactical
d) System operation
48) Which of the following does not relate to system design?
A) Inventory management
B) Location of facilities
C) Altering the system capacity
D) Selection and acquisition of equipment
49) Marketing depends on operations for information regarding ___________.
A) Productivity
B) Budgeting
C) Cash flow
D) Lead time
ANSWERS
1 E 16 A 31 A 46 D 61
2 A 17 B 32 A 47 B 62
3 A 18 D 33 E 48 A 63
4 A 19 A 34 A 49 D 64
5 B 20 A 35 C 50 65
6 A 21 A 36 A 51 66
7 D 22 A 37 B 52 67
8 A 23 A 38 A 53 68
9 A 24 A 39 A 54 69
10 B 25 B 40 B 55 70
11 C 26 A 41 C 56 71
12 A 27 A 42 D 57 72
13 A 28 D 43 D 58 73
14 B 29 D 44 C 59 74
15 D 30 B 45 A 60 75
Other MCQ
Q.1) Operations management is a _______ process
A) Transaction
B) Translation
C) Transformation
D) Transition
Q.2) The supply chain management concept is originated from
A) Logistic
B) Operation
C) Production
D) Marketing
Q.3) Lean management is derived from
A) Toyota production system
B) General production system
C) Honda production system
D) Suzuki Production system
Q.4) An integrated philosophy for continuous improving quality of product and process is called
as
A) TQM
B) TCM
C) JIT
D) CPM
Q.5) The concept of supply chain management was proposed by ________ in 1958
A) C. D. Lewis
B) Deming
C) Forrester
D) Henry Fayol
Q.6) EOQ stands for
A) Economic order quantity
B) Economic order quality
C) Environment order quantity
D) Environment order quality
Q.7) A pull system is also called as
A) Kanban system
B) Kaizen system
C) Lean system
D) None of these
Q.8) An employee who receives goods or services produce else ware an organization as input to
his or her work is called as internal customer, this definition is given by
A) Stephen Chapman
B) Tony Arnold
C) C D Lewis
D) Demining
Q.9) Mass and flow manufacturing comes under:-
A) Intermittent flow systems
B) Continuous flow system
C) (a) and (b) both
D) None of these
Q.10) Generally the size of order is large in case of
A) Intermittent flow systems
B) Continuous flow system
C) (a) and (b) both
D) None of these
Q.11) Material handling is costlier in intermittent flow systems as compared to continuous flow
systems
A) True
B) False
Q.12) The goods are produced according to customer orders in case of job production
A) True
B) False
Q.13) Assembly lines was developed in USA in which industries
A) Automobiles
B) Chemicals
C) Hotels
D) Aviation
Q.14) Signs, symbols, ambience, music are parts of
A) Servicescapes
B) Product
C) SCM
D) TQM
Q.15) Which of the following is not an objective of facility layout?
A) Reduce material handling
B) Delay in disposal of work
C) Effective utilization of available space
D) All of these
Q.16) Quantity produce in process layout is large and continuous
A) True
B) False
Q.17) In which layout machines are grouped according to process requirement for a set of
similar items that require similar processing
A) Cellular manufacturing layout
B) Product layout
C) Process layout
D) Facility layout
Q.18) Low contact services are fixed and less extensive as compared to high contact services
A) True
B) False
Q.19) _______ design implies that complete services delivers as a single transaction
A) Multistep
B) Single step
C) Process layout
D) Product layout
Q.20) Which of the following is not tool for designing service system?
A) Service blueprint
B) Quality Function Deployment
C) Services capes
D) Waiting line analysis
E) All of these are tools for designing service system
ANSWERS
1 C 11 A
2 D 12 A
3 A 13 A
4 A 14 A
5 C 15 B
6 A 16 B
7 A 17 A
8 A 18 A
9 B 19 B
10 B 20 E
MCQ’s for Online Test on Operations and Supply Chain management
Chap 1: Introduction to Operations and Supply Chain Management
1) What is a perfect order?

2) "Quality is defined by the customer" is

a) an unrealistic definition of quality
b) a user-based definition of quality
c) a manufacturing-based definition of quality
d) a product-based definition of quality
e) the definition proposed by the American Society for Quality Control
3) Which of the following is not one of the major categories of costs associated with quality?
a) prevention costs
b) appraisal costs
c) internal failures
d) none of the above, they are all major categories of costs associated with quality
4) According to the manufacturing-based definition of quality,

a) quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost
b) quality depends on how well the product fits patterns of consumer preferences
c) even though quality cannot be defined, you know what it is
d) quality is the degree to which a specific product conforms to standards
5) All of the following costs are likely to decrease as a result of better quality except
a) customer dissatisfaction costs
b) maintenance costs
c) scrap costs
d) warranty and service costs
6) Inspection, scrap, and repair are examples of

a) internal costs
b) external costs
c) costs of dissatisfaction
d) societal costs
7) Total Quality Management emphasizes

a) the responsibility of the Quality Control staff to identify and solve all quality-related problems
b) a commitment to quality that goes beyond internal company issues to suppliers and customers
c) a system where strong managers are the only decision makers
d) a process where mostly statisticians get involved
8) A successful TQM program incorporates all of the following except

a) continuous improvement
b) employment involvement
c) benchmarking
d) centralized decision making authority
9) "Kaizen" is a Japanese term meaning

a) a foolproof mechanism
b) Just-in-time (JIT)
c) a fishbone diagram
d) continuous improvement
10) Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
a) Taguchi Loss Function
b) Pareto Chart
c) ISO 9000 Quality Cost Calculator
d) Process Chart
11) A quality loss function utilizes all of the following costs except
a) the cost of scrap and repair
b) the cost of customer dissatisfaction
c) inspection, warranty, and service costs
d) sales costs
e) costs to society
12) Pareto charts are used to

a) identify inspection points in a process
b) outline production schedules
c) organize errors, problems or defects
d) show material flow
13) Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is
a
a) Pareto chart
b) Flow chart
c) check sheet
d) Taguchi map
14) A worker operates a shear press. She notices that the metal sheets she is cutting have curled edges. Who should get the first "shot"
at solving the problem?
a) the foreman
b) a member of the Quality Control department
c) the operator herself
d) the employee's supervisor
15) A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned
with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership
should be especially concerned with which dimensions of service quality?
a) communication, courtesy, and credibility
b) competence, courtesy, and security
c) competence, responsiveness, and reliability
d) communication, responsiveness, and reliability
16) Which one of the following would not generally be considered an aspect of operations management?
a) Schedule work
c) Maintain quality
17) Which one of these was not mentioned in the list of recent trends in operations management?
d) Automation.
18) Which came last in the development of manufacturing techniques?

a) Lean production.
c) Mass production.
19) Which of the following is not a type of operations?

a) Goods production
c) entertainment
d) price reduction
20) Which of the following is not true about a lean production system?
c) It is involved in maintaining and improving the system with lower amounts of inventory.
21) Which one of the following is not a typical question dealt with by an operations manager?
22) Which one does not use operations management?

a) A CPA firm.
b) A bank.
c) A hospital
d) They all use it.
23) Which one is not generally considered an advantage of using models for decision-making?
b) Emphasizing quantitative information.
d) Requiring users to be specific about objectives.

a) Lean production.
c) Mass production.
25) The goal of Total Quality Management is:

a) Customer satisfaction
b) Product differentiation
c) Brand equity
d) Acting globally
26) Which of the following is not a typical supply chain member?

a) Retailer’s Creditor
b) B. Wholesaler
c) Producer
d) Customer
27) When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are
participating in a ________
a) Channel Of Distribution
b) Value Delivery Network
c) Supply Chain
d) Supply And Demand Chain
28) A company's channel decisions directly affect every ________.

c) channel member
d) Marketing decision.
29) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by
producers into the assortment of products wanted by ________ Channel members.
a) manufacturers
b) marketers
c) distributors
d) consumers
30) Intermediaries play an important role in matching ________.

31) Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the
following is not included in this process?
32) Which of the following is not an area of responsibility for a logistics manager?
a) inventory
b) purchasing
c) warehousing
d) marketing
33) To reduce inventory management costs, many companies use a system called ________, which involves carrying only small
inventories of parts or merchandise, often only enough for a few days of operation.
e) limited inventory logistics
34) Companies manage their supply chains through ________.

a) information
c) competitors
d) the Internet
e) skilled operators
35) Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork,
both inside the company and among all the marketing channel organizations. Julie will begin the practice of ________.
a) intermediation
d) horizontal marketing system management
36) Today, a growing number of firms now outsource some or all of their logistics to ________ intermediaries.
a) competitors
c) channel members
37) The supply chain concept originated in what discipline?

a) marketing
b) operations
c) logistics
d) production
38) The supply chain management philosophy emerged in which decade?

a) 1960s
b) 1970’s
c) 1980s
d) 1990s
39) A ____________ encompasses all activities associated with the flow and transformation of goods from the raw material stage,
through to the end user, as well as the associated information flows.
a) production line
b) supply chain
d) warehouse
40) Which of the following are not key attributes of supply chain management?
c) customer power
41) Positive, long-term relationships between supply chain participants refer to:
a) Co-opetitions
c) partnerships
42) The bullwhip effect:

d) Refers to variability in demand orders among supply chain participants.
43) The variability in demand orders among supply chain participants:

44) Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:
c) dovetailing
45) Process improvement technique that sorts the "vital few" from the "trivial many" is
a) Taguchi analysis
b) Pareto analysis
c) benchmarking
d) Yamaguchi analysis
46) A fishbone diagram is also known as a

a) cause-and-effect diagram
b) poka-yoke diagram
c) Kaizen diagram
d) Taguchi diagram
47) If a sample of parts is measured and the mean of the measurements is outside the control limits the process is
a) in control, but not capable of producing within the established control limits
b) out of control and the process should be investigated for assignable variation
c) within the established control limits with only natural causes of variation
d) monitored closely to see if the next sample mean will also fall outside the control limits
48) A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do
you suggest they use to organize their findings?
a) Ishikawa diagram
b) Pareto chart
c) process chart
d) control charts
49) When a sample measurement falls inside the control limits, it means that
a) each unit manufactured is good enough to sell
b) the process limits cannot be determined statistically
c) the process output exceeds the requirements
d) if there is no other pattern in the samples, the process is in control
50) Which of the following is true regarding control charts?

a) Values above the upper and lower control limits indicate points out of adjustment.
b) Control charts are built so that new data can be quickly compared to past performance data.
c) Control charts graphically present data.
d) All of the above are true.
51) The goal of inspection is to

a) detect a bad process immediately
b) add value to a product or service
c) correct deficiencies in products
d) correct system deficiencies
52) Which of the following is not a typical inspection point?

a) upon receipt of goods from your supplier
b) during the production process
c) before the product is shipped to the customer
d) at the supplier's plant while the supplier is producing
e) after a costly process
53) The most common form of quality control includes:

a) Planning
b) Organizing
c) Inspection
d) Directing
54) Which of the following is not a typical supply chain member?

a) Retailer’s creditor
b) wholesaler
c) reseller
d) producer
55) When suppliers, distributors, and customers collaborate with each other to improve the performance of the entire system, they are
participating in a ________
a) channel of distribution
b) value delivery network
c) supply chain
d) supply and demand chain
56) A company's channel decisions directly affect every ________.

c) channel member
d) competitor's actions
57) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by
producers into the assortment of products wanted by ________Channel members.
a) manufacturers
b) marketers
c) distributors
d) consumers
58) Intermediaries play an important role in matching ________.

59) Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the
following is not included in this process?
60) Which of the following is not an area of responsibility for a logistics manager?
a) inventory
b) purchasing
c) warehousing
d) marketing
61) To reduce inventory management costs, many companies use a system called ________, which involves carrying only small
inventories of parts or merchandise, often only enough for a few days of operation.
62) Companies manage their supply chains through ________.

a) information
c) competitors
d) the Internet
63) Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork,
both inside the company and among all the marketing channel organizations. Julie will begin the practice of ________.
a) intermediation
c) integrated logistics management
64) Today, a growing number of firms now outsource some or all of their logistics to ________ intermediaries
a) competitors
c) channel members
65) Supply chain concept originated in what discipline?

a) marketing
b) operations
c) logistics
d) production
66) The supply chain management philosophy emerged in which decade?
a) 1960s
b) 1970s
c) 1980s
d) 1990s
67) A ____________ encompasses all activities associated with the flow and transformation of goods from the raw material stage,
through to the end user, as well as the associated information flows.
a) production line
b) supply chain
d) warehouse
68) 15. Which of the following are not key attributes of supply chain management?
c) c. customer power
69) Positive, long-term relationships between supply chain participants refer to:
a) co-opetitions
c) partnerships
70) The bullwhip effect:

d) refers to variability in demand orders among supply chain participants.
71) The variability in demand orders among supply chain participants:

72) Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:
c) dovetailing
73) What is a perfect order?

74) Which of the following is NOT a reason that companies are depending more on their suppliers?
a) More focus on core competencies
b) Need for more flexibilities
c) Desire to share risks
d) More control over their suppliers
75) The trend in organizations is to place the SCM function:

a) Under the manufacturing function
b) Under the finance function
c) Under the engineering function
d) At the same level as the other major functions
76) Which of the following is NOT a factor affecting the supply chain?
a) Reduced number of suppliers
b) Increased competition
c) Longer product life cycles
d) Increased opportunities to strategically use technology
77) If two potential suppliers can deliver a part with the same quality and prices, the selection should be based on:
a) Age of the firms
b) A coin flip
c) Outside evaluation
d) The capabilities and flexibilities of the firms
78) Just-in-time/SCM purchasing requires the following condition:

a) Many suppliers
b) Short-term contracts
c) Cooperation between purchasing and suppliers
d) Continuous competitive bidding
79) The amount of inventory kept at each stock point in a warehouse network is usually based on:
a) Minimizing transportation costs
b) Constant demand
c) Tradeoffs between warehousing, inventory, and transportation costs
d) Product pricing strategy
80) Which of the following is NOT a benefit of SCM Purchasing?

a) Consistent quality
b) Savings on resources
c) Lower costs
d) Less dependence on suppliers
81) What term describes a vertical expansion of job duties in order to give the worker more responsibility?
a) Job enlargement
b) Job rotation
c) Job enrichment
d) Job design
82) What are the two basic types of production systems?

a) Automated and manual
b) Intermittent and non-intermittent process
c) Normal and continuous process
d) Continuous process and batch
83) What type of process would a paper mill be most likely to use?
a) Continuous flow
b) Project
c) Job shop
d) Flow shop
84) What technique deals with the problem of supplying sufficient facilities to production lines or individuals that require uneven
service?
a) Supply-demand theory
b) PERT
c) Inventory theory
d) Queuing theory
85) A manufacturer has been receiving excessive numbers of defective standard machine parts from a vendor on a regular basis. What
is the most effective way to design a formal inspection system for incoming parts?
a) Queuing analysis
b) Time series analysis
c) Statistical quality control
d) Regression analysis
86) A set of simultaneous equations that has more variables than constraints has
a) no solution
b) an infinite number of solutions
c) a finite solution
d) an infinite solution
87) In a PERT/CPM network, computing the critical path requires

a) determining the total project duration
b) assigning the earliest finish time for an activity as the earliest start time for the next
c) that the latest finishing time for an activity not delay the overall project beyond initial expectation
d) a sophisticated and complex computer program
88) At the completion of the forward and backward passes, the slack for an activity is given by the
a) difference between early start and early finish
b) difference between early start and latest finish
c) difference between latest start and early finish
d) amount of idle labor on the critical path
Answer Keys
1) A
2) B
3) D
4) D
5) B
6) B
7) B
8) D
9) D
10) D
11) A
12) C
13) B
14) B
15) D
16) C
17) A
18) B
19) D
20) A
21) D
22) D
23) D
24) D
25) D
26) D
27) A
28) A
29) C
30) B
31) D
32) D
33) D
34) D
35) D
36) D
37) A
38) C
39) B
40) C
41) D
42) B
43) D
44) C
45) D
46) B
47) B
48) B
49) A
50) D
51) D
52) A
53) C
54) D
55) B
56) F
57) D
58) D
59) D
60) D
61) D
62) A
63) D
64) B
65) C
66) D
67) B
68) D
69) C
70) D
71) B
72) B
73) A
74) D
75) D
76) C
77) D
78) C
79) C
80) D
81) C
82) B
83) A
84) D
85) C
86) B
87) B
88) A
Chap 2 : Operations Processes
1) Process selection is primarily considered during:

a) Planning
b) Organizing
c) Leading
d) Controlling
2) The type of operation being carried out by an organization depends upon:

a) Degree of standardization
b) Volume of output
c) Demand
d) Both (a) and (b)
3) Repetitive processing results in output that is:

a) Highly standardized
b) Highly customized
c) Partially customized
d) None of the given options
4) Job shop and batch processing are differentiated on the basis of:
a) Job requirements
b) Degree of standardization
c) Volume of output
d) Both (b) and (c)
5) Automation is preferred because it:
a) Offers lesser dependence on workers
b) Results in reduction in variable cost
c) Offers easy handling of repetitive work
6) Product layout is preferably used for:

c) Both (a) and (b)
7) Process layout is used for:

c) Both (a) and (b)
8) The most significant advantage of U-shaped layout is:

b) Easy handling of process
c) Increased flexibility in work
9) The goal of motion study is to achieve:

b) Maximum efficiency
c) Profitability
10) Location decisions are viewed primarily as part of:

a) Marketing strategy
b) Growth factors
c) Financial aspect
d) Both (a) and (b)
11) Regional factors for location planning include all of the following except:
a) Raw materials
b) Markets
c) Labor considerations
d) Attitudes
12) Transportation method is a __________ approach.

a) Quantitative
b) Qualitative
c) Scientific
13) Poor quality adversely affects:

a) Costs
b) Productivity
c) Profitability
14) A product performing consistently refers to which of the following dimensions of quality:
a) Safety
b) Conformance
c) Durability
d) Reliability

a) goods production
c) entertainment
16) Technology choices seldom affect:

a) Costs.
b) Productivity.
c) Union activity.
d) quality
17) Measurements taken at various points in the transformation process for control purposes are called:
a) plans
b) directions
c) controls
d) feedback
18) Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.
a) operation
b) marketing
c) purchasing
d) finance
19) Which one of the following would not generally be classified under the heading of transformation?
a) assembling
b) teaching
c) staffing
d) farming
20) Manufacturing work sent to other countries is called:

a) downsized
b) outsourced
c) internationalization
a) financial
b) tactical
c) system design
d) system operation
22) The responsibilities of the operations manager are:

a) planning, organizing, staffing, procuring, and reviewing
b) planning, organizing, staffing, directing, and controlling
c) forecasting, designing, planning, organizing, and controlling
d) forecasting, designing, operating, procuring, and reviewing
23) Which of the following is not true about systems approach?

a) A systems viewpoint is usually beneficial in decision making.
b) A systems approach emphasizes interrelationships among subsystems.
c) A systems approach concentrates on efficiency within subsystems.
d) A systems approach is essential whenever something is being redesigned or improved.
24) What is credited with gains in industrial productivity, increased standards of living and affordable products?
a) personal computers
b) the internet
c) mass transportation
d) assembly lines
25) Production systems with customized outputs typically have relatively:

a) high volumes of output
b) low unit costs
c) high amount of specialized equipment
d) skilled workers
26) Which is not a significant difference between manufacturing and service operations?
a) cost per unit
b) uniformity of output
c) labor content of jobs
d) Measurement of productivity.
27) Which of the following is not a characteristic of service operations?

a) intangible output
b) high customer contact
c) high labor content
d) easy measurement of productivity
e) low uniformity of output
28) Which of the following is a recent trend in business?
a) pollution control
b) total quality management
d) competition from foreign manufacturers
e) technological change
29) Farming is an example of:

a) an obsolete activity
b) a virtual organization
c) non-manufactured goods
d) a growth industry
e) customized manufacturing
30) Dealing with the fact that certain aspects of any management situation are more important than others is called:
a) analysis of tradeoffs
b) sensitivity analysis
c) recognition of priorities
d) analysis of variance
e) decision table analysis
31) The fact that a few improvements in a few key areas of operations will have more impact than many improvements in many other
areas is consistent with the:
a) Irwin phenomenon
b) Pareto phenomenon
c) Stevenson phenomenon
d) Tellier phenomenon
e) Adam Smith phenomenon
32) The process of comparing outputs to previously established standards to determine if corrective action is needed is called:
a) planning
b) directing
c) controlling
d) budgeting
e) disciplining
33) Which of the following does not relate to system design?

a) altering the system capacity
b) location of facilities
c) inventory management
d) selection and acquisition of equipment
e) physical arrangement of departments
34) Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to consider
______________ in response to the ___________.
a) flexibility; pressure to be more efficient
b) off shoring; need to promote domestic production
c) sustainability; threat of global warming
d) technology; impact of random variation
e) forecasting; stabilization of demand
35) Which of the following is not a benefit of using models in decision-making?

a) They provide a standardized format for analyzing a problem.
b) They serve as a consistent tool for evaluation.
c) They are easy to use and less expensive than dealing with the actual situation.
d) All of the above are benefits.
e) None of the above is a benefit.
36) Modern firms increasingly rely on other firms to supply goods and services instead of doing these tasks themselves. This increased
level of _____________ is leading to increased emphasis on ____________ management.
a) outsourcing; supply chain
b) off shoring; lean
c) downsizing; total quality
d) optimizing; inventory
e) internationalization; intercultural
37) Operations and sales are the two-________ functions in businesses.

a) strategic
b) tactical
c) support
d) line
38) Marketing depends on operations for information regarding ___________.

a) productivity
b) lead time
c) cash flow
d) budgeting
e) corporate intelligence
39) Two widely used metrics of variation are the __________ and the _________.
a) mean; standard deviation
b) productivity ratio; correlation
c) standardized mean; assignable deviation
d) randomized mean; standardized deviation
e) normal distribution; random variation
40) Which of the following statements about variation is FALSE?

a) Variation prevents a production process from being as efficient as it can be.
b) Some variation can be prevented.
c) Variation can be either assignable or random.
d) Any variation makes a production process less productive.
e) Random variation generally cannot be influenced by managers.
41) Which of the following is essential to consider with respect to managing a process to meet demand?
a) strategy
b) demand forecasts
c) capacity
d) all of the above
42) Which one of the following would not generally be considered an aspect of operations management?
a) Schedule work
c) Maintain quality
e) Manage inventories
43) Which one of these was not mentioned in the list of recent trends in operations management?
d) Automation.
e) Environmental issues.

a) Lean production.
c) Mass production.
e) Interchangeable parts.

a) goods production
c) entertainment
d) price reduction
46) Which of the following is not true about a lean production system?
c) It is involved in maintaining and improving the system with lower amounts of inventory.
47) Which one of the following is not a typical question dealt with by operations managers?
48) Which one does not use operations management?

a) A CPA firm.
b) A bank.
c) A hospital
d) They all use it.
49) Which one is not generally considered an advantage of using models for decision-making?
b) Emphasizing quantitative information
d) Enabling managers to answer "what if" questions
e) Requiring users to be specific about objectives.

a) Lean production.
c) Mass production.
51) The operating characteristic (OC) curve shows the probability of
a) rejection for every possible true percentage of defectives

b) acceptance for every possible true percentage of defectives
c) making type I errors for various percentages of defectives
d) none of the above
52) If an artificial variable remains in the solution with a positive value after the stopping criterion has been reached, the problem
a) is infeasible
b) is optimal
c) needs a new basis
d) has more than one solution
53) What are the two sources of costs in queuing analysis?
a) Arrivals and departures
b) Arrivals and idleness
c) Waiting customers and capacity
d) Equipment breakdowns and departures
54) The transportation model method that is used to evaluate location alternatives minimizes total.
a) sources
b) destinations
c) capacity
d) shipping costs
55) What is simulation?
a) A quick solution method to problem-solving
b) A formalized deterministic approach to problem-solving
c) A graphical method to problem-solving
d) A trial-and-error approach to problem-solving
56) Moving from the aggregate plan to a master production schedule requires
a) rough cut capacity planning
b) sub-optimization
c) disaggregation
d) strategy formulation
57) Which of the following statements is true of Lean-Six Sigma?
a) Lean principles focus on advanced statistical methods.
b) Lean principles and Six-Sigma are separate bodies of knowledge
c) Lean principles have been developed over a lengthy period.
d) Lean principles include the 5Ss framework and practices.
58) When the flow of materials is variable,
a) layout by process is most suitable
b) b layout by product is most suitable
c) layout by fixed position is most suitable
d) line balancing is most suitable
59) A fixed interval system
a) adds the same predetermined amount to inventory each time replenishment occurs
b) is suitable for joint replenishment items
c) is triggered at the reorder level
d) requires perpetual monitoring of inventory records
60) Which of the following terms best defines the nature of Total Quality Management?
a) An art
b) A philosophy
c) A science
d) A social activity
61) Which of the following terms reflects Japanese view of continuous improvement?
a) Kaizen
b) Poka-yoke
c) Six sigma
d) Control limits
62) Which of the following is NOT an element of TQM?
a) Leadership
b) Perceived quality
c) Employee empowerment
d) Customer focus
63) Which of the following is an example of appraisal cost?
a) Rework costs
b) Returned goods
c) Testing labs
d) Quality improvement programs
64) Warranty cost is an example of which of the following?
a) Internal failure cost
b) External failure cost
c) Prevention cost
d) Appraisal cost
65) Refer to the stage of PDCA (Plan, Do, Check, Act) cycle that involves evaluating the improvement plan.
a) Plan
b) Do
c) Check
d) Act
66) Which of the following refers to a continuous measurement of an organization’s products and processes against a company
recognized as a leader in that industry?
a) Benchmarking
b) Gap analysis
c) Statistical process control
d) Continuous improvement
67) Which of the following is the focus of statistical process control?
a) Determining the efficiency of an operations system
b) Measuring the amount of re-work required to rectify faulty goods
c) Identifying the security needs of an operations system
d) Measuring and controlling process variations
68) Which of the following is a measure of how closely a product or service meets the specifications?
a) Quality of Conformance
b) Continuous improvement
c) Competitive benchmarking
d) Statistical process control
a) goods production
c) entertainment

70) Technology choices seldom affect:
a) Costs.
b) Productivity.
c) Union activity.
d) Quality.
71) Measurements taken at various points in the transformation process for control purposes are called:
a) Plans
b) Directions
c) Controls
d) Feedback.
72) Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.
a) Operation
b) Marketing
c) Purchasing
d) finance
73) Which one of the following would not generally be classified under the heading of transformation?
a) Assembling
b) Teaching
c) staffing
d) Farming
e) consulting
74) Manufacturing work sent to other countries is called:
a) Downsized
b) Outsourced
c) Internationalization
e) entrepreneurial ship
a) Financial
b) Tactical
c) system design
d) system operation
e) Forecasting.
Answers
1) A
2) D
3) C
4) A
5) D
6) A
7) A
8) C
9) B
10) D
11) D
12) A
13) D
14) D
15) D
16) C
17) D
18) D
19) C
20) B
21) C
22) B
23) C
24) D
25) D
26) D
27) D
28) C
29) C
30) C
31) B
32) C
33) C
34) C
35) D
36) A
37) D
38) B
39) A
40) D
41) D
42) B
43) D
44) A
45) D
46) D
47) D
48) D
49) C
50) D
51) B
52) A
53) C
54) D
55) D
56) C
57) D
58) A
59) B
60) B
61) A
62) B
63) C
64) B
65) C
66) A
67) D
68) A
69) D
70) C
71) D
72) D
73) C
74) B
75) C

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MCQ: Unit-1: introduction to Operations and Supply Chain management

1."Quality is defined by the customer" is :

2. According to the manufacturing-based definition of quality

10. Which one of the following best represents a pure good?

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

12. The bullwhip effect:

14. The variability in demand orders among supply chain participants:

19. Which of the following functions is not a core function of an organisation?

21. Total Quality Management emphasizes

22. "Quality is defined by the customer" is

33. "Kaizen" is a Japanese term meaning

37. Pareto charts are used to

42. Which of the following is not a key activity of an operations manager?

45. Which one of the following best represents a pure good?

50. Which of the following is not a type of operations?

It puts emphasis on quality, flexibility, and time reduction.

53. ____ is an example of a pure good.

56.Zero defects in manufacturing

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

76. Lean production involves

each unit manufactured is good enough to sell

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

83. Which one does not use operations management?

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

89. Which of the following is true regarding control charts?

94. The most common form of quality control includes:

99. A company's channel decisions directly affect every ________.

100. A supply chain is a sequence of firms that perform activities required:

105. A supply chain is a sequence of firms that perform activities required:

118. The bullwhip effect:

119. The variability in demand orders among supply chain participants:

a) simultaneous achievement of relevant customer metrics

125. What are the two basic types of production systems?

1.What type of process would a Cement plant be most likely to use?

23. Technology choices seldom affect:

a. Advertising new salad dishes

a) mean; standard deviation

59. What are the two sources of costs in queuing analysis?

70.. What is simulation?

72. Which of the following statements is true of Lean-Six Sigma?

74. When the flow of materials is variable,

75. A fixed interval system

79. Which of the following is an example of appraisal cost?

80. Warranty cost is an example of which of the following?

83. Which of the following is the focus of statistical process control?

85. Which of the following is not a type of operations?

86. Technology choices seldom affect:

90. Manufacturing work sent to other countries is called:

1. The goal of logistics is

5. The concept of logistics has been systematically divided into

7. EDI stands for

8. EOQ stands for

9. Packaging performs two functions. ___________ and logistics.

10. Form utility is created by

11. Place utility is created by

12. Time utility is created by

14. MPS stands for

15. Master planning in the planning hierarchy

16. Master scheduling is the process that

17. Customer order processing level is that

18. Master planning deals with

19. The service mission of logistics

22. HRM is _________ in the generic value chain of logistics.

24. Competitive advantage can be created and achieved by logistics managers by

28. Just in time is a practice followed in

30. The term used for loading or unloading of heavy cargo is

90. Companies manage their supply chains through _ ___.