Supply chain management is a crucial aspect of business operations that involves the coordination of activities to ensure the smooth flow of products, information, and money from suppliers to customers. To test knowledge and understanding of supply chain management, multiple choice questions (MCQs) are often used in exams. In this article, we have compiled a list of 20 of the best MCQs in supply chain management with their corresponding answers. These MCQs cover a range of topics, including logistics management, inventory control, sourcing, transportation, and supply chain partnerships. Whether you are a student preparing for an exam or a professional seeking to enhance your knowledge in supply chain management, these MCQs are a valuable resource.
- Which of the following is NOT a typical supply chain member?
Answer: d. Competitor
2. What is the primary goal of supply chain management?
a. To reduce costs
b. To increase revenue
c. To improve customer satisfaction
d. To streamline operations
Answer: c. To improve customer satisfaction
3. What is the term used to describe the flow of products, information, and money from suppliers to customers?
a. Value chain
b. Supply chain
c. Demand chain
d. Logistics chain
Answer: b. Supply chain
4. What is the term used to describe the process of managing the movement of goods and materials within a warehouse or distribution center?
a. Transportation management
b. Inventory management
c. Warehousing management
d. Order management
Answer: c. Warehousing management
5. Which of the following is a common metric used to measure supply chain performance?
a. Gross profit margin
b. Customer retention rate
c. Inventory turnover
d. Accounts receivable turnover
Answer: c. Inventory turnover
6. Which of the following is a key benefit of using a just-in-time (JIT) inventory system?
a. Reduced carrying costs
b. Increased safety stock levels
c. Improved customer service levels
d. Increased production lead times
Answer: a. Reduced carrying costs
7. Which of the following is a strategy used to mitigate supply chain risks?
Answer: d. Reshoring
8. What is the term used to describe the process of combining multiple shipments into a single, larger shipment to reduce transportation costs?
Answer: a. Consolidation
9. Which of the following is a key component of a successful supply chain management strategy?
a. Ad hoc decision-making
b. Reactive planning
c. Centralized decision-making
d. Collaboration with supply chain partners
Answer: d. Collaboration with supply chain partners
10. Which of the following is a type of supply chain relationship characterized by a high degree of collaboration and trust?
b. Arm’s length
Answer: d. Strategic
11. What is the term used to describe the process of managing the flow of goods from the point of origin to the point of consumption?
a. Logistics management
b. Supply chain management
c. Inventory management
d. Transportation management
Answer: a. Logistics management
12. Which of the following is a common sourcing strategy used by companies to reduce costs?
a. Single sourcing
b. Dual sourcing
d. Strategic sourcing
Answer: d. Strategic sourcing
13. What is the term used to describe the process of forecasting demand for a product?
a. Capacity planning
b. Production planning
c. Demand planning
d. Sales planning
Answer: c. Demand planning
14. Which of the following is a type of transportation mode used to move goods over long distances?
Answer: b. Rail
15. What is the term used to describe the process of identifying and resolving issues in the supply chain?
a. Quality control
b. Risk management
c. Issue resolution
d. Continuous improvement
Answer: d. Continuous improvement
16. Which of the following is a type of supply chain partnership that involves the sharing of risks and rewards between two or more companies?
a. Joint venture
b. Equity partnership
Answer: a. Joint venture
17. What is the term used to describe the process of managing the flow of goods and services from suppliers to customers?
a. Supply chain management
b. Logistics management
c. Inventory management
d. Production planning
Answer: a. Supply chain management
18. Which of the following is a common inventory control technique used to balance inventory levels and customer demand?
a. Economic order quantity (EOQ)
b. Safety stock
c. Just-in-time (JIT)
d. Lead time
Answer: a. Economic order quantity (EOQ)
19. What is the term used to describe the process of identifying and selecting suppliers to provide goods and services to a company?
a. Supplier selection
Answer: c. Sourcing
20. Which of the following is a common transportation mode used for fast delivery of small packages and documents?
Answer: c. Air