Annexure C

Multiple Choice Questions

Quiz 1

  1. The ownership of inventory in the VMI (vendor-managed inventory) system lies with___.
    1. supplier
    2. purchaser
    3. logistics service provider
    4. insurance firm
  2. Supply chain mapping means the study of___.
    1. logistics network
    2. activities sequence
    3. value and non-value-added activities
    4. cost reduction areas
    5. all the above
  3. A good material-handling system will enhance the___in logistics.
    1. productivity potential
    2. efficiency
    3. delivery reliability
    4. speed to market
  4. Components of the logistics mix are warehousing, transportation, packaging, inventor controls and___.
    1. material handling
    2. information flow
    3. strategic logistics
    4. reverse logistics
  5. A material-handling system is selected on the basis of volumes to be handled, speed of handling, distance of movement, product characteristics, capital investment and___.
    1. productivity
    2. customer service
    3. payload
    4. automation
  6. A well-designed material storage system will ensure___.
    1. space efficiency
    2. productivity
    3. speed to market
    4. low product damages
  7. The ABC analysis of inventory control is based on___.
    1. usage pattern
    2. usage value
    3. inventory movement
    4. criticality in application
  8. ___is the most reliable mode of transportation for petroleum products.
    1. air
    2. road
    3. sea/waterways
    4. pipeline
  9. Logistical packaging will ensure productivity in the logistical system through ease in handling, space utility and___.
    1. cost reduction
    2. damage reduction
    3. manpower reduction
    4. weight reduction
  10. EDI (Electronic Data Interchange) used in the logistics system ensures___.
    1. information transfer
    2. document transfer
    3. material transfer
    4. money transfer

Answers to Quiz 1:

(1) a (2) c (3) a (4) b (5) a (6) a (7) b (8) d (9) b (10) b

Quiz 2

  1. Four economic utilities that play a role in logistics management are possession, time, place and___.
    1. inventory
    2. damage control
    3. cost
    4. form
  2. The major handicap for road transportation in India is___.
    1. uneducated personnel
    2. poor infrastructure
    3. undue influence of politicians
    4. unorganized industry
  3. Cost associated with the return trip of a transport truck is an example of___cost.
    1. fixed
    2. variable
    3. common
    4. joint
  4. If the demand for trucks at some place is high and the availability of trucks is low, the truck owner will adopt___pricing system.
    1. value of service
    2. cost of service
    3. fully allocated
    4. marginal
  5. Goods transportation by air is more___.
    1. reliable
    2. speedier
    3. cost-effective
    4. frequent
  6. Higher inventory turnover ratio indicates better___utilization.
    1. demand
    2. time
    3. assets
    4. manpower
  7. Major consideration for logistics manager for transporting milk will be___.
    1. volumes
    2. route
    3. insurance
    4. safety
    5. all the above
  8. In production Kanban is a document that authorizes production of material withdrawn by a/the___workstation.
    1. previous
    2. subsequent
    3. parallel
    4. first
  9. Logistics is the activity that is primarily based on___.
    1. time
    2. speed
    3. information
    4. strategy
  10. Lean supply chain means a/an___.
    1. simple logistics network
    2. low level of inventory
    3. high inventory turnover ratio
    4. IT-based system

Answers to Quiz 2:

(1) a (2) b (3) d (4) a (5) b (6) c (7) b (8) b (9) c (10) b

Quiz 3

  1. Truck freight charges on a per kilometre basis are inversely proportional to the distance covered.
    • Right
    • Wrong
  2. Cross-docking is related to material handling at sea ports.
    • Right
    • Wrong
  3. The supply chain will ensure competitiveness, while logistics will ensure cost effectiveness.
    • Right
    • Wrong
  4. Procurement methodology will not necessarily reduce the transaction cost.
    • Right
    • Wrong
  5. E-procurement is effective when products are non-standard.
    • Right
    • Wrong
  6. In global logistics performance cycles are longer.
    • Right
    • Wrong
  7. The growth of containerization depends on the development of a multi-modal transportation network in the country.
    • Right
    • Wrong
  8. The type of ERP (Enterprise Resource Planning) system decides whether a firm should go in for the pull or the push type of marketing system.
    • Right
    • Wrong
  9. A higher inventory turnover ratio will not help in reducing storage space in the warehouse.
    • Right
    • Wrong
  10. Logistics cost as a percentage of the product price is large for low unit price products compared to high unit price products.
    • Right
    • Wrong

Answers to Quiz 3:

(1) Right (2) Wrong (3) Right (4) Wrong (5) Wrong (6) Right (7) Right (8) Wrong (9) Wrong (10) Right

Quiz 4

  1. In recent times, three things have changed the perspective of logistics: globalization, focus on supply chain and___.
    1. outsourcing
    2. warehousing system
    3. transportation modes
    4. regulations
  2. Freight management includes route planning, mode selection, vehicle scheduling and___.
    1. speed to market
    2. freight consolidation
    3. order processing
    4. product availability
  3. Warehouse layout is greatly affected by___.
    1. material-handling system
    2. product demand in the market
    3. storage capacity of the place
    4. inventory throughput
  4. As a thumb rule, freight cost for distribution of goods from factory to field warehouses___.
    1. increases with increase in number warehouses
    2. decreases with increase in number of warehouses
    3. remains same irrespective of number of warehouses
    4. none of the above
  5. As a thumb rule, FMCG firms have a larger number of warehouses than an engineering company of similar size because of___.
    1. low unit price of the product
    2. frequent purchases by customer
    3. pattern of product consumption and replenishment
    4. strategic decision
  6. For designing an effective and efficient material-handling system, one of the guidelines normally followed is: (Tick the correct answer)___.
    1. should have continuous flow of material
    2. should move heavy loads in any direction up to any distance
    3. dead weight to payload should be more
    4. should be non-standard equipment
  7. Load unitization will give the benefits of ease in storage, transportation and___.
    1. material handling
    2. customer service
    3. product identification
    4. inventory foundation
  8. The design of storage system for perishable goods should have the___consideration.
    1. last-in-and-first-out
    2. first-in-and-first-out
    3. gravity flow
    4. closed cabinets
  9. The shipping container offers such benefits as door-to-door service, minimizing risk of transit damages and pilferages, reduction of packaging cost, speedier delivery and____.
    1. effective integration of multi-modal transportation system
    2. customization
    3. ease in customs formalities for import and export cargo
    4. elimination of transit insurance
  10. For improving customer satisfaction through logistics fulfilment, the gaps that need to be bridged are communication, standards adopted, service delivery and___.
    1. customer knowledge
    2. product development
    3. technology
    4. channel management

Answers to Quiz 4:

(1) a (2) b (3) a (4) a (5) c (6) a (7) a (8) b (9) a (10) a

Quiz 5

  1. Flexible manufacturing system is designed to take care of___and___of the product(s) requirements based on demand fluctuations in the markets.
    1. volumes and varieties
    2. efficiency and effectiveness
    3. service and inventory
    4. productivity and cost
  2. ___fulfilment is the most important customer service attribute that can be successfully done through the IT-enabled supply chain integration.
    1. Order
    2. Service
    3. Customer expectations
    4. Inventory
  3. In the public warehouse there is no scope for___of storage and material-handling facility.
    1. customization
    2. maintenance
    3. functional improvement
    4. productive usage
  4. Palletization is the most common method for___of similar-shaped products or packages.
    1. customization
    2. unitization
    3. rationalization
    4. picking up
  5. Stockpiling refers to the storing of products or materials so as to allow a company to exploit its___in production and transportation.
    1. expertise
    2. core competency
    3. economies
    4. technology
  6. Warehouse is a/an____facility in logistics network rather than only a field storage place to hold the stocks to meet customer demand.
    1. service
    2. switching
    3. repackaging
    4. inventory build-up
  7. Pareto’s law is about the business activities and their potential values and is used in___.
    1. warehousing
    2. transportation
    3. inventory control
    4. marketing
  8. Adoption of the JIT philosophy will help in making the supply chain of the firm___.
    1. market oriented
    2. product oriented
    3. customized
    4. lean
  9. For the perishable products transportation, the major emphasis is on vehicle scheduling and___planning in logistics network.
    1. route
    2. inventory
    3. warehouse
    4. handling equipment
  10. Cross-docking is used in relation to time-bound___of material in the warehouse.
    1. movement
    2. storage
    3. repacking
    4. damages

Answers to Quiz 5:

(1) a (2) a (3) a (4) b (5) c (6) b (7) c (8) d (9) a (10) b

Quiz 6

  1. Reverse logistics system is deployed for:
    1. meeting customer demand
    2. increasing profitability
    3. enhancing core competency
    4. enhancing competitiveness
    5. all the above
  2. Reverse logistics covers
    1. refilling
    2. refurbishing
    3. quality upgradation
    4. recycling
    5. all the above
    6. none of the above
  3. Deploying the reverse logistics system is easier in___.
    1. B2C markets
    2. B2B markets
    3. C2C markets
    4. C2B markets
    5. All the above
    6. None of the above
  4. The reverse logistics system focuses more on the following process: (Tick the correct answer).
    1. procurement process
    2. manufacturing process
    3. marketing activities
    4. product recalls
  5. In the reverse logistic system the role of the channel member is
    1. node for re-collection
    2. spotting the end consumers
    3. helping consumers to reuse products
    4. checking the product quality before selling
    5. all the above
  6. For designing a reverse logistics system the firm should focus on:
    1. documentation
    2. customer profiles
    3. customer base
    4. channel management
    5. none of the above
  7. More and more firms are showing an interest in designing and deploying a reverse logistics system (RLS) because they feel
    1. RLS is a source of competitiveness
    2. they have to conform to government regulations
    3. consumer forums will sue them
    4. all the above
  8. The reason/s for the reverse logistics initiative of most of firms is/are
    1. concern for environment pollution
    2. government regulations
    3. growing consumerism
    4. stiff competition
    5. all the above
    6. none of the above
  9. Which one of the following is not a reverse logistics activity?
    1. refilling of LPG cylinder
    2. refilling of soft drinks bottles
    3. refurbishing Sony audio products
    4. transporting perishable products to processing centres
    5. all the above
  10. The “green dot” on product packaging indirectly symbolizes a reverse logistics system in Germany for___.
    1. industrial products
    2. food products
    3. FMCG products
    4. hazardous products
    5. all the above

Answers to Quiz 6:

(1) d (2) e (3) b (4) d (5) a (6) a (7) d (8) a (9) d (10) c

Quiz 7

  1. The order process cycle in cross-border logistics is___.
    1. longer than in domestic (within a country) logistics
    2. the same as in domestic logistics
    3. shorter than domestic logistics
    4. none of the above
  2. In cross-border logistics the order process cycle is___.
    1. simpler than in domestic (within a country) logistics
    2. the same as domestic logistics
    3. more complex than in domestic logistics
    4. none of the above
  3. In cross-border logistics, logistics partners are
    1. more in numbers than in domestics logistics
    2. the same in numbers as in domestic logistics
    3. less in numbers than in domestics logistics
    4. none of the above
  4. In cross-border logistics the information flow is characterized as
    1. single channel and single standard
    2. multiple channels, multiple languages and multiple standards
    3. one language and single channel
    4. multiple language and single channel
    5. none of the above
  5. Which of the following is not an operational factor in global logistics?
    1. transportation
    2. packaging
    3. insurance
    4. warehousing
    5. product development
  6. Which of the following is not an intermediary in cross-border trade?
    1. freight forwarder
    2. customer house broker
    3. wholesaler
    4. all the above
  7. EDI is used in cross-border trade for___.
    1. transferring information
    2. transferring documents
    3. transferring goods
    4. transferring money
  8. The role of “free trade zone” in cross-border trade is to
    1. enhance international trade
    2. facilitate smooth flow and transaction of goods
    3. generate revenues for host country
    4. regularize cross-border taxation i. all the above
  9. The non-strategic issues in cross-border trade are
    1. customer needs
    2. economic and regulatory environment
    3. logistical infrastructure
    4. foreign exchange
  10. Containerisation is important in cross-border trade as it will ensure;
    1. ease in insuring the good in import and export trade
    2. ease in transportation, warehousing and material handling
    3. ease in documentation
    4. all the above
    5. none of the above

Answers to Quiz 7:

(1) a (2) c (3) a (4) b (5) e (6) c (7) b (8) f (9) d (10) b

Quiz 8

  1. A competitive framework of strategic logistics comprises responsiveness, reliability, rationalization and …
    1. relationship
    2. reorientation
    3. reorganization
    4. all the above
  2. Strategic logistics planning does not incorporate the following step: (Tick the correct answer).
    1. environmental analysis
    2. SWOT analysis
    3. setting goals and objectives
    4. identification of resources
    5. designing and implementing logistics programmes/strategies
    6. assessing quality
  3. Generic logistics strategies do not cover the following: (Tick the correct answer).
    1. cost leadership
    2. differentiation
    3. value addition
    4. efficiency
  4. Vendor-managed inventory will ensure the following: (Tick the correct answer).
    1. increase inventory turns
    2. reduce shipping delays to channel partners
    3. reduce inventory-related cost
    4. reduce customer’s order cycle time
  5. Value addition through “cobbling” will___.
    1. eliminate wasteful practices in transportation and storage
    2. reduce inventory cost
    3. reduce material handling
    4. ensure speed to customer
  6. Outsourcing of logistics services will not ensure___.
    1. logistics cost control
    2. an enhanced level of customer service
    3. reduction in inventory level
    4. increase in inventory turns
    5. better understanding of customer needs
  7. Logistics controls are broadly categorized as financial, non-financial and …
    1. freight related
    2. behavioural
    3. damage related
    4. storage related
  8. In the maturity stage of PLC (product life cycle), the most appropriate logistics strategy is___.
    1. customized logistics services
    2. multi-modal transportation
    3. reduction in the number of distribution centres
    4. automation in material handling
  9. In the growth stage of PLC (product life cycle), the most appropriate logistics strategy the firm can adopt is to
    1. increase its own transport fleet
    2. create a logistics infrastructure
    3. increase inventory level
    4. customize logistics service
  10. “Rationalization” as a strategy in logistics is closer to
    1. mass customization through components’ design
    2. reducing the supplier base
    3. eliminating non-value-added activities
    4. segmenting customers for providing differential services

Answers to Quiz 8:

(1) a (2) f (3) e (4) c (5) a (6) e (7) b (8) a (9) d (10) a

Quiz 9

  1. The Logistics Information System (LIS) operates through four levels, viz. strategic, tactical, operating and___.
    1. administrative
    2. control
    3. financial
    4. marketing
  2. LIS basically does not incorporate the following element:
    1. information sources
    2. information collection system
    3. storage, retrieval and processing
    4. strategy formulation
  3. The information sources of LIS do not include:
    1. external customers
    2. internal departments
    3. channel partners
    4. internet
  4. Operating level LIS covers order registration, order processing, inventory planning, warehousing and distribution, and …
    1. transportation and delivery
    2. capacity planning
    3. alliances and partnerships
    4. all the above
  5. The various functions not covered under order processing are____.
    1. inventory allocations
    2. creating and follow-up of order backlog
    3. filled order document generation
    4. outsourcing
  6. Logistics facility planning covers the following: (Tick the correct answer).
    1. inventory control system
    2. scheduling transportation fleets
    3. distribution centre location and design, storage and handling facility
    4. installation of MIS
  7. The characteristics of LIS are that it should be flexible, interactive and—
    1. accurate
    2. large
    3. informative
    4. reactive
  8. The tactical level of LIS (Logistics Information System) does not cover____.
    1. inventory management
    2. facility planning
    3. vehicle route planning and scheduling
    4. developing distribution network
  9. Logistical functions of distribution channel partners are storage, transportation and____.
    1. requirement scheduling
    2. credit financing
    3. negotiations
    4. payment collection
  10. Logistics programme variants are delivery frequency, delivery time, lot size, and …
    1. transportation cost
    2. packaging (loose, packed, unitized)
    3. warehousing type
    4. capacity of logistics information system

Answers to Quiz 9:

(1) b (2) d (3) c (4) a (5) d (6) c (7) a (8) d (9) a (10) b

Quiz 10

  1. The limitations in implementation of a logistics programme are order processing cycle, inventory norms and …
    1. transportation cost
    2. warehouse capacity
    3. warehouse type
    4. packaging
  2. Logistics performance measurement system has the objectives of monitoring, controlling and …
    1. processing
    2. directing
    3. scheduling
    4. fulfilling
  3. The internal measures of logistics performance are productivity, asset management, order fulfilment, quality ROI and …
    1. operating cost
    2. customer relationship
    3. reliability
    4. best practices in industry
  4. The external measures of logistics performance are service quality, reliability, responsiveness and
    1. inventory turns
    2. warehousing cost
    3. transportation cost
    4. customer relationship
  5. In activity-based costing the costs to products are assigned by tracing expenses to …
    1. products
    2. activities
    3. networks
    4. transportation modes
  6. In activity-based costing the activities are categorized at unit level, batch level, product level, customer level and …
    1. tactical level
    2. control level
    3. facility level
    4. strategic level
  7. Logistics is the management of four cycles, viz. customer order cycle, replenishment cycle, manufacturing cycle and …
    1. delivery cycle
    2. service cycle
    3. inventory cycle
    4. procurement cycle
  8. Logistics controls can be exercised through budgetary controls and …
    1. structural controls
    2. monitory controls
    3. cost controls
    4. movement controls
  9. Areas under the purview of “logistics audit” are quality of logistics service, technology, productivity, packaging system, warehousing and …
    1. transportation modelling
    2. manufacturing system
    3. automation in logistics
    4. costing methods
  10. Q10. Quantitative techniques in logistics are used for
    1. logistics process optimization
    2. finding warehouse sites
    3. designing warehouse layout
    4. reducing head counts in logistics

Answers to Quiz 10:

(1) a (2) b (3) a (4) d (5) b (6) c (7) d (8) a (9) c (10) a

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