SUPPLY CHAIN & LOGISTICS EXAM BANK
1. Define logistics.
A. Only the transportation of goods from supplier to customer
B. Planning, implementing, and controlling the efficient, effective flow
and storage of goods, services, and related information from point of
origin to consumption to meet customer requirements
C. The marketing of products to end-users
D. The process of purchasing raw materials
ANSWER: B
2. What are the five major components of logistics?
A. Transportation, Warehousing, Procurement, Sales, Packaging
B. Transportation, Warehousing, Inventory Management, Order
Processing, Packaging
C. Procurement, Outsourcing, Retailing, Transport, Distribution
D. Procurement, Warehousing, Information, Forecasting, Delivery
ANSWER: B
3. Define supply chain management.
A. Managing the logistics of finished goods only
B. The management of the flow of goods and services, including all
processes that transform raw materials into final products, to maximize
customer value and gain a competitive advantage
C. Tracking customer complaints and warranty claims
D. Handling procurement contracts alone
ANSWER: B
4. What is the primary goal of supply chain management?
A. To maximize sales of individual firms
B. To minimize only logistics costs
C. To maximize overall value generated by the supply chain
D. To focus only on transportation
ANSWER: C
5. Differentiate between logistics and supply chain management.
A. Logistics is the same as supply chain management
B. Logistics focuses on movement and storage, while supply chain
management integrates all activities from raw materials to the end
consumer
, C. Logistics is only about warehousing, SCM is about customers
D. Logistics is about IT, SCM is about purchasing
ANSWER: B
6. What are the objectives of logistics management?
A. To reduce profits and increase customer costs
B. To delay production and reduce speed
C. To ensure timely delivery, reduce costs, maintain quality, improve
customer satisfaction, and optimize the use of resources
D. To focus only on warehousing
ANSWER: C
7. Which of the following are functions of logistics?
A. Advertising, Promotions, Pricing
B. Transportation, Inventory Control, Warehousing
C. Product design, Forecasting, R&D
D. Recruitment, Training, Appraisal
ANSWER: B
8. What is meant by inbound logistics?
A. The process of delivering finished goods to the customer
B. Transportation, storage, and delivery of goods coming into a business
C. Reverse movement of defective goods
D. Information flow between suppliers and buyers
ANSWER: B
9. What is meant by outbound logistics?
A. Storing, transporting, and distributing goods to the customer
B. Handling goods coming into the plant
C. Procurement of raw materials
D. Managing supplier payments
ANSWER: A
10.What is third-party logistics (3PL)?
A. The company managing logistics internally
B. The outsourcing of logistics operations, including warehousing and
transportation, to a third-party provider
C. Logistics activities performed only by suppliers
D. A specialized software for logistics
ANSWER: B
11.What is fourth-party logistics (4PL)?
A. A logistics provider that only delivers packages
, B. A supply chain integrator that assembles and manages all resources,
capabilities, and technology of an organization’s supply chain, including
3PLs
C. An internal logistics department of a company
D. A software used to track inventory only
ANSWER: B
12.Which of the following is an example of reverse logistics?
A. Delivering goods from factory to retailer
B. Returning defective products from the customer back to the
manufacturer
C. Shipping raw materials to a plant
D. Distributing new products to wholesalers
ANSWER: B
13.Which of the following best defines just-in-time (JIT) inventory
management?
A. Keeping maximum stock at all times to avoid shortages
B. Receiving goods only as they are needed in the production process,
thereby reducing inventory costs
C. Ordering bulk shipments far in advance
D. Holding large safety stocks as backup
ANSWER: B
14.What does the bullwhip effect in supply chains refer to?
A. The smooth flow of goods from supplier to customer
B. Small fluctuations in demand at the retail level causing progressively
larger fluctuations upstream in the supply chain
C. High transportation costs due to poor planning
D. Seasonal changes in supply availability
ANSWER: B
15.Which of the following is NOT a function of supply chain management?
A. Supplier relationship management
B. Demand forecasting
C. Advertising campaigns
D. Order fulfillment
ANSWER: C
16.Which type of transportation is most suitable for high-value, low-weight,
and time-sensitive goods?
A. Road
, B. Rail
C. Air
D. Water
ANSWER: C
17.Which transport mode is most cost-effective for bulky and heavy goods
over long distances?
A. Air
B. Water
C. Road
D. Pipeline
ANSWER: B
18.Which of the following statements about warehousing is true?
A. Warehouses are only used for long-term storage
B. Modern warehouses can provide value-added services like packaging,
labeling, and cross-docking
C. Warehousing always increases costs without benefits
D. Warehouses are only used by wholesalers
ANSWER: B
19.What is cross-docking?
A. Storing products for several months before dispatch
B. The practice of unloading goods from inbound transport and directly
loading them onto outbound transport with minimal or no storage time
C. The transfer of goods between warehouses in different cities
D. Delivering goods to retail stores only at night
ANSWER: B
20.Which of the following is a key benefit of effective inventory
management?
A. Increased stockouts and higher holding costs
B. Better customer service and reduced carrying costs
C. More obsolete goods
D. Higher demand uncertainty
ANSWER: B
21.Economic Order Quantity (EOQ) is used to:
A. Calculate the maximum number of employees needed in logistics
B. Determine the optimal order quantity that minimizes total inventory
costs
C. Decide which supplier is the cheapest
1. Define logistics.
A. Only the transportation of goods from supplier to customer
B. Planning, implementing, and controlling the efficient, effective flow
and storage of goods, services, and related information from point of
origin to consumption to meet customer requirements
C. The marketing of products to end-users
D. The process of purchasing raw materials
ANSWER: B
2. What are the five major components of logistics?
A. Transportation, Warehousing, Procurement, Sales, Packaging
B. Transportation, Warehousing, Inventory Management, Order
Processing, Packaging
C. Procurement, Outsourcing, Retailing, Transport, Distribution
D. Procurement, Warehousing, Information, Forecasting, Delivery
ANSWER: B
3. Define supply chain management.
A. Managing the logistics of finished goods only
B. The management of the flow of goods and services, including all
processes that transform raw materials into final products, to maximize
customer value and gain a competitive advantage
C. Tracking customer complaints and warranty claims
D. Handling procurement contracts alone
ANSWER: B
4. What is the primary goal of supply chain management?
A. To maximize sales of individual firms
B. To minimize only logistics costs
C. To maximize overall value generated by the supply chain
D. To focus only on transportation
ANSWER: C
5. Differentiate between logistics and supply chain management.
A. Logistics is the same as supply chain management
B. Logistics focuses on movement and storage, while supply chain
management integrates all activities from raw materials to the end
consumer
, C. Logistics is only about warehousing, SCM is about customers
D. Logistics is about IT, SCM is about purchasing
ANSWER: B
6. What are the objectives of logistics management?
A. To reduce profits and increase customer costs
B. To delay production and reduce speed
C. To ensure timely delivery, reduce costs, maintain quality, improve
customer satisfaction, and optimize the use of resources
D. To focus only on warehousing
ANSWER: C
7. Which of the following are functions of logistics?
A. Advertising, Promotions, Pricing
B. Transportation, Inventory Control, Warehousing
C. Product design, Forecasting, R&D
D. Recruitment, Training, Appraisal
ANSWER: B
8. What is meant by inbound logistics?
A. The process of delivering finished goods to the customer
B. Transportation, storage, and delivery of goods coming into a business
C. Reverse movement of defective goods
D. Information flow between suppliers and buyers
ANSWER: B
9. What is meant by outbound logistics?
A. Storing, transporting, and distributing goods to the customer
B. Handling goods coming into the plant
C. Procurement of raw materials
D. Managing supplier payments
ANSWER: A
10.What is third-party logistics (3PL)?
A. The company managing logistics internally
B. The outsourcing of logistics operations, including warehousing and
transportation, to a third-party provider
C. Logistics activities performed only by suppliers
D. A specialized software for logistics
ANSWER: B
11.What is fourth-party logistics (4PL)?
A. A logistics provider that only delivers packages
, B. A supply chain integrator that assembles and manages all resources,
capabilities, and technology of an organization’s supply chain, including
3PLs
C. An internal logistics department of a company
D. A software used to track inventory only
ANSWER: B
12.Which of the following is an example of reverse logistics?
A. Delivering goods from factory to retailer
B. Returning defective products from the customer back to the
manufacturer
C. Shipping raw materials to a plant
D. Distributing new products to wholesalers
ANSWER: B
13.Which of the following best defines just-in-time (JIT) inventory
management?
A. Keeping maximum stock at all times to avoid shortages
B. Receiving goods only as they are needed in the production process,
thereby reducing inventory costs
C. Ordering bulk shipments far in advance
D. Holding large safety stocks as backup
ANSWER: B
14.What does the bullwhip effect in supply chains refer to?
A. The smooth flow of goods from supplier to customer
B. Small fluctuations in demand at the retail level causing progressively
larger fluctuations upstream in the supply chain
C. High transportation costs due to poor planning
D. Seasonal changes in supply availability
ANSWER: B
15.Which of the following is NOT a function of supply chain management?
A. Supplier relationship management
B. Demand forecasting
C. Advertising campaigns
D. Order fulfillment
ANSWER: C
16.Which type of transportation is most suitable for high-value, low-weight,
and time-sensitive goods?
A. Road
, B. Rail
C. Air
D. Water
ANSWER: C
17.Which transport mode is most cost-effective for bulky and heavy goods
over long distances?
A. Air
B. Water
C. Road
D. Pipeline
ANSWER: B
18.Which of the following statements about warehousing is true?
A. Warehouses are only used for long-term storage
B. Modern warehouses can provide value-added services like packaging,
labeling, and cross-docking
C. Warehousing always increases costs without benefits
D. Warehouses are only used by wholesalers
ANSWER: B
19.What is cross-docking?
A. Storing products for several months before dispatch
B. The practice of unloading goods from inbound transport and directly
loading them onto outbound transport with minimal or no storage time
C. The transfer of goods between warehouses in different cities
D. Delivering goods to retail stores only at night
ANSWER: B
20.Which of the following is a key benefit of effective inventory
management?
A. Increased stockouts and higher holding costs
B. Better customer service and reduced carrying costs
C. More obsolete goods
D. Higher demand uncertainty
ANSWER: B
21.Economic Order Quantity (EOQ) is used to:
A. Calculate the maximum number of employees needed in logistics
B. Determine the optimal order quantity that minimizes total inventory
costs
C. Decide which supplier is the cheapest
