Practice Examination 100 Questions And Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A | Instant
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1. What is the primary purpose of a supply chain?
A. To maximize product variety
B. To eliminate all operational costs
C. To deliver products to customers efficiently
D. To increase marketing spend
Rationale: The core goal of a supply chain is efficient movement of goods
from origin to customer.
2. Which activity is part of procurement?
A. Order picking
B. Inventory receiving
,C. Warehouse slotting
D. Supplier selection
Rationale: Procurement involves choosing, contracting, and managing
suppliers.
3. A pull-based system is initiated by:
A. Forecasting algorithms
B. Supplier availability
C. Actual customer demand
D. Inventory audits
Rationale: Pull systems respond to real demand rather than predictions.
4. Safety stock is used to:
A. Reduce product quality issues
B. Protect against stockouts
C. Lower carrying costs
D. Forecast demand
Rationale: Safety stock prevents stockouts caused by uncertainty.
5. What does SKU stand for?
,A. Serialized Kanban Unit
B. Stocking Knowledge Utility
C. Stock Keeping Unit
D. Supplier Key Unit
Rationale: An SKU is a unique identifier for an item in inventory.
6. Cross-docking reduces:
A. Supplier relationships
B. Storage time
C. Shipping accuracy
D. Demand visibility
Rationale: Cross-docking moves goods directly from receiving to shipping
to minimize storage.
7. Which technology is used to scan barcodes?
A. RFID reader
B. Laser scanner
C. GPS receiver
D. OCR camera
Rationale: Barcode systems use laser-based scanners for decoding.
8. Lead time is defined as:
, A. Time to unload a truck
B. Time between order placement and receipt
C. Time for demand forecasting
D. Time to conduct a cycle count
Rationale: Lead time measures the delay between ordering and receiving
goods.
9. A bill of lading is issued by the:
A. Customer
B. Carrier
C. Accounts payable team
D. End user
Rationale: Carriers issue bills of lading as shipment documentation.
10. Which is a function of a WMS?
A. Production scheduling
B. Tracking inventory in real time
C. Managing customer payments
D. Designing packaging
Rationale: A warehouse management system monitors and directs
inventory activities.