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SYMBIOSIS CENTRE FOR MANAGEMENT AND HUMAN RESOURCE

DEVELOPMENT
MBA l Sem - II (2012-2014)
Course: Supply Chain Management (Quiz I)
Date: 14/02/2013
Marks: 30
Duration: 20 Minutes
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Name : Roll No.:
Set B
Each question carries 1.5 marks each for correct answers. No
negative marking.
1. In milk-run system, transportation contract is generally based on:
a) Per kg and per trip basis
b) Dedicated truck and monthly basis
c) Dedicated truck and per trip basis
d) None of the above
2. With the reduction in the number of warehouses:
a) Inventory level come down due to reduction in the lead time
b) Inventory level come down due to reduction in the product availability
c) Inventory level come down due to reduction in the standard deviation
d) Inventory level go up due to increase in standard deviation
e) Cant Say
3. Impact of CST in India has been:
a) Increase in transportation costs
b) Increase in Inventory Carrying Costs
c) Increase in Warehousing costs
d) Both b and c
e) Both a and b
4. Inventory coordination in warehouses refers to:
a) Coordination with vendors
b) Coordination with customers
c) Consolidation and Breakbulking
d) None of the above
5. Level of in-transit inventory depends on:
a) Transit time
b) Lot size
c) Annual Demand
d) Both a and b
e) Both a and c
f) Both b and c
6.

7. Number of consignments that can be picked up by a truck in the milk-run system

depends on:
a) Size of the vehicle
b) Type of consignments
c) Distance between the pick-up locations
d) Processing time at each location
e) Both a and c
f) Both c and d
8. By increasing the inventory turnover, company will improve the
a. Net profit margin
b. Return on Capital Employed
c. Both of the above
d. Cant Say
8. Milk-run system reduces the
a) Transportation costs
b. Inventory costs
c. Warehousing costs
d. All of the above
9. Warehouse consolidation:
a. Reduces the warehouse and inventory costs
b. Reduces the warehouse and inventory costs but
increases the transportation costs
c. Reduces the transportation costs
d. Cant say
10. The objectives of supply chain are generally:
a. Directly related to each other
b. Inversely related to each other
c. Depends on case by case basis
d. No relation
11. Variety increase the inventory and also overall supply chain complications due to:
a. Increase in Forecasting errors
b. Impact of set up cost and minimum batch quantity
c. Increase in lead time
d. a and b
e. a and c
f. None of the above
12. A company can reduce the inventory complications arising out of higher variety
through:
a. Commonization
b. Postponement
c. Increasing prices
d. a and b
e. a and c

13. Between Cement and Fashion apparels, the company will have:
a. More number warehouses for cement
b. More number of warehouses for fashion apparels
c. Cant Say
d. None of the above
14. Of the following, Implied demand uncertainty is directly proportional to:
a. Value of the item
b. High service level requirements
c. Unpredictable demand fluctuations
d. a and b
e. b and c
15. Which of the following statements re true?
a. Steel company should have a responsive supply chain
b. Steel company should have an efficient supply chain
c. PC (Personal Computers) company should have a responsive supply chain
d. PC (Personal Computers) company should have an efficient supply chain
e. a and d
f. b and d
g. b and c
16. Cross-docking reduces the:
a. Transportation costs
b. Inventory holding costs
c. Warehousing costs
d. a and b
e. b and c
17. Cross-docking is suitable for:
a. Items with high implied demand uncertainty
b. Items with low implied demand uncertainty
c. All types of items
d. Cant Say
18. Following are the details of company A and B: (Company A: Sales : Rs. 1000 crs,
Profit : Rs. 100 crs, Capital Employed: Rs. 500 crs. Company B: Sales : Rs. 1000
crs, Profit : Rs. 50 crs, Capital Employed: Rs. 250 crs). Which of the following is
true
a. Company A is more profitable
b. Company B is more profitable
c. Both are equally profitable
d. Cant say
19. What is common between Asian Paints and United Colors of Benetton:
a. Commonization
b. Postponement
c. Cross-docking

d. Implied Demand Uncertainty

20. In Cross-docking, warehouse is used as:
a. Inventory coordination Point
b. Inventory Storage Point
c. Inventory coordination and inventory storage point
d. Cant say

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