MULTIPLE CHOICE QUESTIONS

Supply Chain Management

Q.No. Question Option 1 Option 2 Option 3 Option 4 AnswerRetail Management1 Which category role

defines a retailer positioned as a place for one stop shopping and with a good margin over the sale of its products?

Destination category Preferred category Occasional category

Convenience category

4

2 Products that sell for a very small period of time but generate huge sales volume within a short period are called as

Seasonal merchandise Fashion merchandise

Fad merchandise

Staple merchandise 3

3 An appropriate strategy to optimize the productivity of the retail space & inventory is

Revision of organization processes supported by information systems

Integrate this activity is integrated into all supply chain planning

Efficient store assortments

Efficient replacements

3

4 Which type of pricing strategy is used by value retailers like Big Bazaar, Wal Mart, and other supermarkets?

Competitive driven pricing

Consumer driven pricing

Value based pricing

High-Low pricing 3

5 What are the causes of retail return?

Defective/Damaged goods

End of life return Product recalls All of the above 4

6 The percentage of total gross inventory (based on value) covered by expected demand within specific time buckets is called as

SKU turnover Inventory aging Inventory turn Stockouts 2

Information System7 Information engineering

consists of following steps except

Planning Organizing Analysis Construction 2

8 Functional roles of IT in SCM consist of

Transaction execution Collaboration & coordination

Decision Support

All of the above 4

9 Which of the following statement is not true for the objectives of IT in SCM?

Providing information availability & visibility

Enabling multiple point of contact for data

Allowing decisions based on total supply chain information

Enabling collaboration with supply chain partners

2

10 In the evaluation of information intensity in the supply chain, the analyst will review

The level of use of information systems within the market

identify and rank the ways in which IS might create competitive advantage

investigate how IS might spawn new businesses

the level and usage of information within each value chain activity and between each level of activity

4

11 In the evaluation of the role of IS in the supply chain, the analyst will review

investigate how IS might spawn new businesses

the level of use of information systems within the market

the level and usage of information within each value chain activity and between each level of activity

identify and rank the ways in which IS might create competitive advantage

4

Strategic Alliance12 Strategic alliance often

bring partners the following benefits

Increased brand awareness through partner's channels

Access to their partner's distribution channels and international market presence as well as reduced R&D costs and risks

Rapidly achieve scale, critical mass and momentum as well as access to partner's capital

All of the above 4

SCM strategies13 Which customer service

strategy deals with the response which maximizes the firm’s profitability and growth

Customer segmentation Cost to serve Revenue management

None of these 3

14 Fourth party logistics comes under which type of supply chain strategy?

Demand flow strategy Collaboration strategy Customer service strategy

Technology integration strategy

2

15 Reliance on linked third parties, close relationships with suppliers defines

vertical disintegration (disaggregation)

vertical integration virtual integration none of the above 1

16 One choice for a organization's vertical integration strategy related to 'The extent of vertical integration' is

how far should the company take downstream or upstream vertical integration?

should the company aim to direct ownership at the upstream or downstream supply chain?

to what extent does each stage of the supply chain focus on supporting the immediate supply chain?

none of the above 1

17 One choice for an organizers vertical integration strategy related to 'The balance among the vertically integrated stages' is

to what extent does each stage of the supply chain focus on supporting the immediate supply chain?

should the company aim to direct ownership at the upstream or downstream supply chain?

how far should the company take downstream or upstream vertical integration?

none of the above 1

Green Supply Chain Management18 The dimensions of a

green supply chain areOperational alignment Business partner

collaborationBusiness capabilities All of the above 4

19 Which of these is not a green supply chain best practice?

Alignment of green supply chain goals with business goals

Using green supply chain analysis as a catalyst for innovation

Focus on source reduction to reduce waste

None of these 4

20 Green supply chain promotes alignment to business process and principles by

Negotiating policies with suppliers & customers

Mitigating risks Speeding innovations

Continuous improvements

1

Project management

Q.No. Question Option 1 Option 2 Option 3 Option 4 AnswerSelection of Projects1 Which of the following is

true regarding NPV?NPV assumes reinvestment of cost capital

NPV decisions should be made based on higher value of all the selections

NPV assumes reinvestment at prevailing rates

NPV assumes reinvestment at the NPV rate

1

2 Mathematical models using linear, dynamic, integer, or algorithm models are considered as

Project selection criteria

A form of expert judgment

Project selection methods

A form of historical information

3

3 Which of the following is true regarding IRR?

IRR assumes reinvestment at the cost of capital

IRR is the discount rate when NPV is greater than zero

IRR is a constrained optimization method

IRR is the discount rate when NPV is equal to zero

4

4 The selection committee is debating between two projects. Project A has a payback period of 18 months, project B has a cost of Rs. 125000, with expected cash inflows of Rs. 50000 the first year and Rs. 25000 per quarter after that. Which project should you recommend?

Either project A or Project B, as their payback periods are equal

Project A, because Project B’s payback period is 21 months

Project A, because Project B’s payback period is 24 months

Project A, because Project B’s payback period is 20 months

2

5 Which of the following is true?

Discounted cash flow analysis is the least precise of cash flow techniques, because it does not consider the time value of money

NPV is the least precise method of cash flow analysis techniques, because it assumes reinvestment at the discount rate

Payback period is the least precise of the cash flow analysis techniques, because it does not consider the time value of money

IRR is the least precise of the cash flow analysis techniques, because it assumes reinvestment at the cost of capital

3

6 Smooth Jazz a late night club chain with clubs in about 12 states in the country is considering of opening a new club in Delhi or Gurgaon. Being the project manager you are given the following information:Delhi: The payback period is 27 months, and the IRR is 35%Gurgaon: The payback period is 25 months, and the IRR is 32%Which project should you recommend to the selection committee?

Project Gurgaon, the payback period is the shortest

Project Delhi, the IRR is the highest

Project Gurgaon, the IRR is the lowest

Project Delhi, the payback period is the longest

2

Risk Analysis7 All the following statements are

true regarding risks except one. Choose the least correct answer.

Risks might be threats to the objective of the project

Risks are certain events that might be threats or opportunities to the objective of the project

Risks might be opportunities to the objective of the project

Risks have causes & consequences

2

8 Which of the following is not a risk response strategy?

Organizing Accepting Avoiding Mitigating 1

9 Which of these is a valid response to positive risks?

Exploit Mitigate Enhance Share 2

10 As a project manager of a software development project you identified a risk and implemented a response plan for it. But another risk occurs as a result of the response you implemented. What is this risk called?

Trigger risk Residual risk Secondary risk Mitigated risk 3

11 Which of the following compression techniques increases risk?

Crashing Resource leveling Fast tracking Lead & lag 3

12 Monte Carlo Analysis can help predict the impact of risks on project deliverables. This is an element of one of the tools & techniques of which of the following processes?

Risk response planning Quantitative risk analysis

Risk identification Qualitative risk analysis

2

13 Which tools & techniques of the risk management planning process is used to develop risk cost elements and schedule activities that will be included in the project budget & schedule?

Planning meetings & analysis

SWOT analysis Information gathering techniques

Risk data quality assessment

1

Cost Estimation14 Which of the following is

displayed as an S curve?Gantt Cost baseline Critical path Schedule

baseline2

15 Analogous Cost Estimating is Generally Accurate Generally less accurate

Uses statistical relationship between historical data and other variables

Bottom-up estimating

2

16 Which is NOT true about Analogous Cost Estimating

Uses Expert Judgment Used when reference projects are similar

Does not require high expertise on part of estimators as estimates are based on previous projects

Useful in early phases of the project

3

17 Project Cost Management Plan is created as a part of

Develop Project Management Plan process

Estimate Cost process

Determine Budget process

Control Cost process

1

Project Audit18 The possible reasons

for conducting a project audit include the following except

Revalidate business feasibility of the project

Expansion of the business

Confirm readiness to move to the next phase of the project

Investigate specific problems

2

19 Which of these is not a goal of project audit?

Improve performance Reduce costs Evaluate quality Employee empowerment 4

20 The purpose of a quality audit includes all of the following except which one?

To determine which project processes are ineffective or inefficient

To examine the work of the project and formally accept the work results

To improve processes and reduce the cost of quality

To improve processes and increase the percentage of product or service acceptance

2