MCQ on Materials and Logistics Management 1

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Objective Questions and Answers of MBA: MCQ on Materials and Logistics Management 1

Subject: MCQ on Materials and Logistics Management 1

Part 1: List for questions and answers of Materials and Logistics Management


Q1. Which of the following is true for supply chain management?

a) The physical material moves in the direction of the end of chain

b) Flow of cash backwards through the chain

c) Exchange of information moves in both the direction

d) All of the above


Q2. The sequence of a typical manufacturing supply chain is

a) Storage–Supplier–manufacturing–storage–distributor–retailer–customer

b) Supplier–Storage-manufacturing–storage–distributor–retailer–customer

c) Supplier–Storage-manufacturing– distributor–storage–retailer–customer

d) Supplier–Storage-manufacturing–storage– retailer–distributor–customer


Q3. The purpose of supply chain management is

a) Provide customer satisfaction

b) Improve quality of a product

c) integrating supply and demand management

d) Increase production


Q4. Logistics is the part of a supply chain involved with the forward and reverse flow of

a) Goods

b) Services

c) Cash

d) all of the above


Q5. Due to small change in customer demands, inventory oscillations become progressively larger looking through the supply chain. This is known as

a) Bullwhip effect

b) Netchain analysis

c) Reverse logistics

d) Reverse supply chain


Q6. VMI stands for

a) Vendor material inventory

b) Vendor managed inventory

c) Variable material inventory

d) Valuable material inventory 


Q7. The major decision areas in supply chain management are

a) location, production, distribution, inventory

b) Planning, production, distribution, inventory

c) Location, production, scheduling, inventory

d) Location, production, distribution, marketing


Q8. Distribution requirement planning is a system for

a) Inventory management

b) Distribution planning

c) Both ‘a’ and ‘b’

d) None of the above


Q9. Reverse logistics is required because

a) Goods are defective

b) Goods are unsold

c) The customers simply change their minds

d) All of the above


Q10. 3-PL stands for

a) Three points logistics

b) Third party logistics

c) Three points location

d) None of the above


Q11. Product life cycles for many products are ________, forcing companies to not only become ________ in design but also to communicate changes and needs to suppliers and distributors

a) shrinking rapidly, more flexible

b) Shrinking rapidly, less flexible

c) Growing rapidly, more flexible

d) Growing rapidly, less flexible


Q12. All portions of the material production from __________ to ___________ are considered to be a linked chain under the supply chain concept

a) Work in process, final customer

b) Raw material, work in process

c) Work in process, raw material

d) raw material, final customer 


Q13. To get the most profit, a company should________

a) Provide little customer service

b) Provide high production costs

c) Provide the lowest inventory investment

d) Provide the highest distribution costs


Q14. Finance must keep investment and costs low. This can be done by___________

a) Increasing inventory so inventory investment is at a maximum

b) Decreasing the number of plants and warehouses

c) Producing small quantities

d) Using short production runs


Q15. Today the concepts of ______ manufacturing stress the need to supply customers with what they want when they want it and to keep inventories at a ______

a) TQM, maximum

b) Six Sigma, maximum

c) JIT, minimum

d) ISO 9000, minimum


Q16. The concept of having ____ department(s) responsible for the flow of materials, from supplier through production to consumer, is relatively new

a) one

b) Multiple

c) Functional

d) None of the above


Q17. Materials management is also called____________

a) Distribution planning

b) Control and logistics management

c) Both of the above

d) Neither of the above


Q18. Materials management is a coordinating function responsible for planning and controlling materials flow. Its objective(s) is/are

a) Maximize the use of the firm’s resources

b) Provide the required level of customer service

c) Both of the above

d) Neither of the above 


Q19. _______ and ______ are costs that increase or decrease with the quantity sold

a) Direct labor, indirect material

b) Direct labor, direct material

c) Indirect labor, indirect material

d) Indirect labor, direct material

Q20. Inventory not only makes up a portion of the cost of goods sold but has to be purchased at the beginning of production to be processed into finished goods. This type of inventory is called _____________

a) work-in-process

b) Finished goods

c) Raw materials

d) None of the above


Part 1: List for questions and answers of Materials and Logistics Management


Q1. Answer: d

Q2. Answer: b

Q3. Answer: c

Q4. Answer: d

Q5. Answer: a

Q6. Answer: b

Q7. Answer: a

Q8. Answer: c

Q9. Answer: d

Q10. Answer: b

Q11. Answer: a

Q12. Answer: d

Q13. Answer: c

Q14. Answer: b

Q15. Answer: c

Q16. Answer: a

Q17. Answer: c

Q18. Answer: c

Q19. Answer: b

Q20. Answer: a