CERTIFICATION EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A 2026
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1. What is the primary goal of supply chain management?
A. Increase advertising reach
B. Maximize product quality only
C. Optimize flow of goods, information, and finances
D. Reduce employee turnover
Rationale: Supply chain management focuses on coordinating
all processes from sourcing to delivery efficiently.
Correct Answer: C
2. Which function is responsible for obtaining goods and
services?
A. Marketing
B. Procurement
C. Accounting
D. Distribution
Rationale: Procurement handles sourcing and purchasing of
materials.
Correct Answer: B
,3. What does “lead time” refer to?
A. Time spent marketing a product
B. Time between order placement and delivery
C. Time employees work per shift
D. Time spent in production only
Rationale: Lead time measures the total time from order to
receipt.
Correct Answer: B
4. Which system is commonly used for tracking inventory in
real time?
A. ERP system
B. CRM system
C. POS advertising system
D. HR system
Rationale: ERP systems integrate and track inventory across
operations.
Correct Answer: A
5. What is “just-in-time” inventory?
A. Overstocking inventory
B. Receiving goods only when needed
C. Producing goods annually
D. Storing extra raw materials
Rationale: JIT reduces inventory costs by delivering items as
,needed.
Correct Answer: B
6. Which is a key objective of logistics?
A. Increase packaging costs
B. Ensure efficient transportation and storage
C. Reduce customer satisfaction
D. Eliminate suppliers
Rationale: Logistics ensures efficient movement and storage of
goods.
Correct Answer: B
7. What is procurement primarily concerned with?
A. Hiring staff
B. Buying goods and services
C. Advertising products
D. Managing IT systems
Rationale: Procurement focuses on sourcing and purchasing.
Correct Answer: B
8. Which is an example of upstream supply chain activity?
A. Customer delivery
B. Retail sales
C. Supplier sourcing
, D. After-sales service
Rationale: Upstream includes supplier-related activities.
Correct Answer: C
9. What is inventory turnover?
A. Frequency of employee shifts
B. Rate at which inventory is sold and replaced
C. Time spent in production
D. Number of suppliers
Rationale: It measures how quickly stock is sold.
Correct Answer: B
10. Which transport mode is usually fastest for international
shipping?
A. Rail
B. Air
C. Truck
D. Sea
Rationale: Air transport is fastest for long distances.
Correct Answer: B
11. What is warehousing?
A. Selling goods
B. Storing goods until needed