Logistics MCQ and Answers

  1. Which of the following is not an inventory?

A. Machines
B. Raw material
C. Finished products
D. Consumable tools

Answer – Machines

2. The following classes of costs are usually involved in inventory decisions except

A. Cost of ordering

B. Carrying cost

C. Cost of shortages

D. Machining cost

Answer – Machining cost

3. The cost of insurance and taxes are included in

A. Cost of ordering

B. Set up cost

C. Inventory carrying cost

D. Cost of shortages

Answer – Inventory carrying cost

4. The minimum stock level is calculated as

A. Reorder level – (Nornal consumption x Normal delivery time)

B. Reorder level + (Nornal consumption x Normal delivery time)

C. (Reorder level + Nornal consumption) x Normal delivery time

D. (Reorder level + Normal consumption) / Normal delivery time

Answer – Reorder level – (Normal consumption x Normal delivery time)

5. Which of the following is true for Inventory control?

A. Economic order quantity has minimum total cost per order

B. Inventory carrying costs increases with quantity per order

C. Ordering cost decreases with lot size

D. All of the above

Answer – All of the above

6. The time period between placing an order its receipt in stock is known as

A. Lead time

B. Carrying time

C. Shortage time

D. Over time

Answer – Lead time

7. Re-ordering level is calculated as

A. Maximum consumption rate x Maximum re-order period

B. Minimum consumption rate x Minimum re-order period

C. Maximum consumption rate x Minimum re-order period

D. Minimum consumption rate x Maximum re-order period

Answer – Maximum consumption rate x Maximum re-order period

8. Which statement is correct with regard to Re-order level.

A. Re-order level is below the danger level

B. Reorder level is always above the maximum level

C. Reorder level is close to the minimum level

D. Reorder level can be anywhere between maximum level and Danger level

Answer – Reorder level is close to the minimum level

9. Lead time factor influences which level of inventory

A. Minimum level

B. Maximum level

C. Re order level

D. All the Above

Answer – All the Above

10. In EOQ model, certain assumptions are made, which assumption is not related to EOQ

A. The total ordering cost in an EOQ remains constant.

B. The ordered inventory is delivered in one attempt.

C. The inventory costs are assumed constant.

D. The consumption rate of the inventory remains constant

Answer – The ordered inventory is delivered in one attempt.

11. “problems address the place to locate a factory or facility while” _ problems address the relative location of facilities within a factory.

A. Location, layout

B. Layout, location

C. None of these

Answer – Location, layout

12. The assumption for EOQ is:

A. Shortages are allowed

B. Demand is known with certainty and is constant over time

C. Lead time for the eceipt of orders is Variable

D. Order quantity is not received all at once

Answer – Demand is known with certainty and is constant over time

13. The _ supply chain uses responsiveness, competency, flexibility, and quickness to manage how well a supply chain entity operates on a daily basis.

A. green

B. fragile

C. agile

D. growing

Answer – Agile

14. EDI (Electronic Data Interchange)used in the logistics system ensures__________.

A. Document transfer

B. Material transfer

C. Money transfer

D. None of these

Answer – Document transfer

15. In production Kanban is adocument that authorizes production of material withdrawn by a/the_____________workstation.

A. previous
B. subsequent
C. parallel
D. first

Answer – Subsequent

16. Freight management includes route planning, mode selection, vehicle scheduling and________________.

A. Speed to market
B. Freight consolidation
C. Order processing
D. Product availability

Answer – Freight consolidation

17. Reverse logistics system is deployed for:

A. Increased customer satisfaction
B. Reduce Overall Total Costs
C. Maximize Return on Assets
D. All the above

Answer – All of the above

18. Which of the following involves receiving inventory item at the exact time when needed?

A. JIT

B. ABC

C. FOB

D. None

Answer – JIT

19. Inventory serves as a buffer between

A. Supply and demand

B. customer demand and finished goods

C. finished goods and component availability

D. all of the above

Answer – All of the above

20. The terms purchasing and procurement are not same As such, which of the following statements do you think has greatest validity?

A. Procurement has a broader meaning than purchasing

B. Procurement is broadly equivalent to purchasing

C. Purchasing has a broader meaning than procurement

D. None of the above

Answer – Procurement has a broader meaning than purchasing

21. Material handling consists of movement of material from

A. one machine to another

B. one shop to an other shop

C. stores to shop

D. all of the above

Answer – All of the above

22. Anything that does not add value to a product is called

Answer – Waste

23. ———- is an initiative to empower all the people working to do their best.

Answer – Total quality management

24. Read the following statements and identify which of them are false:

A. ERP is a large system

B. ERP provides more information

C. ERP is expensive

Answer – Nothing is false

25. What does standardization aim at ?

A. Variety Reduction

B. Effective method of control

C. Establishment of procedures

D. all of these

Answer – All of these

26. Outbound logistics is also called

A. upstream logistics

B. downstream

C. horizontal

D. vertical

Answer – Downstream

27. Buying according to the requirements is called __

A. Seasonal Buying

B. Hand to mouth buying

C. Scheduled Buying

D. Tender Buying

E. Speculative Buying

Answer – Hand to mouth buying

28. __ is the task of buying goods of right quality, in the right quantities, at the right time and at the right price.

A. Supplying

B. Purchasing

C. Scrutinizing

D. None of the above

Answer – Purchasing

29. Zero defects in manufacturing is

A. is a relevant goal only in electronic assembly

B. is readily achievable in all areas

C. is the goal of TQM

D. is an unobtainable and misleading idea

Answer – Is the goal of TQM

30. Which functional role does IT play in SCM?

A. Transaction execution

B. Reporting

C. Data Mining

D. All of the above

Answer – All of the above

31. The major ports are under the direct responsibility of

A. The ministry of commerce.

B. The ministry of shipping.

C. The central government.

D. The state government.

Answer – The central government.

32. FOB in SCM stands for

A. Freight on Board.

B. Freight on Board

C. Freight on Board

D. Free on Board

Answer – Free on Board

33. GPS technology in shipping means

A. Global placement system

B. General Placement system

C. Global positioning solution

D. Global positioning system

Answer – Global positioning system

34. RFID technology means

A. Rapid Frequency distribution

B. Radio Frequency Deployment

C. Radio Frequency Identification

D. None of the above

Answer – Rapid Frequency distribution

35. The term used for loading or unloading of heavy cargo is

A. Rigging.

B. Slinging.

C. Carnage.

D. Forced discharge.

Answer – Carnage

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