Supply Chain Management
UNIT – I
Descriptive Questions:
1. Define a supply chain and explain its key objectives with suitable examples.
2. Explain the importance of supply chain management in improving organizational
performance.
3. Discuss the three major decision phases in a supply chain with suitable
examples.
4. Explain the difference between strategic, tactical, and operational decisions in
supply chain management.
5. Explain the cycle view of a supply chain with a neat diagram and an example.
6. Discuss the push/pull view of a supply chain. Explain its significance in managing
demand uncertainty.
7. Explain the three macro processes of a supply chain (CRM, ISCM, SRM) with
examples.
8. Discuss the importance of coordination among the three macro processes in
achieving an efficient supply chain.
9. Define strategic fit. Explain the steps involved in achieving strategic fit in a
supply chain.
10. Discuss the major challenges organizations face in achieving strategic fit in a
global business environment.
Objective Questions with Answers
1. Which of the following best defines a supply chain?
a) The process of delivering products only to retailers
b) A network of facilities and distribution options to procure, produce, and
deliver products
c) Only the transportation system between supplier and customer
d) The movement of goods from factory to warehouse
Answer: b
2. The main objective of a supply chain is to:
a) Increase production cost
b) Maximize customer satisfaction and reduce cost
c) Focus only on transportation
d) Increase the number of suppliers
Answer: b
3. Which of the following is NOT an objective of supply chain management?
a) Improve customer service
b) Increase inventory costs
c) Reduce lead time
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d) Optimize resource utilization
Answer: b
4. Supply chain management primarily aims at:
a) Profit maximization only
b) Coordination of production, inventory, location, and transportation
c) Reducing supplier base
d) Marketing products globally
Answer: b
5. Which of these is NOT a part of a supply chain?
a) Manufacturer
b) Supplier
c) Customer
d) Competitor
Answer: d
6. Which of the following is a strategic decision in supply chain management?
a) Daily production schedule
b) Selecting the location of manufacturing facilities
c) Allocating trucks for delivery today
d) Adjusting workforce for a shift
Answer: b
7. Tactical decisions in supply chain management generally include:
a) Plant location decisions
b) Procurement policies and inventory levels
c) Developing competitive strategy
d) Deciding on product design
Answer: b
8. Operational decisions in a supply chain include:
a) Weekly or daily scheduling
b) Facility network design
c) Choosing suppliers for the next five years
d) Selecting product portfolio
Answer: a
9. The cycle view of a supply chain divides processes based on:
a) Supplier location
b) Customer demand uncertainty
c) Activities performed between successive stages
d) Type of product sold
Answer: c
10. In the push/pull view of a supply chain, pull processes are initiated by:
a) Forecasts
b) Customer orders
c) Supplier agreements
d) Marketing strategies
Answer: b
11. Which of the following is an example of a push process?
a) Production based on customer order
b) Manufacturing based on forecasted demand
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Supply Chain Management
c) Assembling product after order confirmation
d) Packing after payment
Answer: b
12. Push/pull boundary in a supply chain refers to:
a) Point where suppliers meet customers
b) The interface where push processes end and pull processes begin
c) Start of raw material procurement
d) Distribution network design
Answer: b
13. Which of the following is NOT a macro process in a supply chain?
a) Customer Relationship Management (CRM)
b) Internal Supply Chain Management (ISCM)
c) Supplier Relationship Management (SRM)
d) Enterprise Resource Planning (ERP)
Answer: d
14. CRM in a supply chain focuses on:
a) Managing relationships with suppliers
b) Managing internal operations
c) Managing relationships with customers
d) Forecasting demand only
Answer: c
15. SRM in a supply chain refers to:
a) Supplier Relationship Management
b) Stock Resource Management
c) Strategic Risk Management
d) System Resource Management
Answer: a
16. Which macro process is responsible for demand planning and fulfillment?
a) CRM
b) ISCM
c) SRM
d) ERP
Answer: b
17. Strategic fit means:
a) Matching the supply chain strategy with marketing strategy
b) Matching supply chain capabilities with competitive strategy
c) Reducing supply chain cost to zero
d) Only focusing on production speed
Answer: b
18. Which of the following is NOT a step in achieving strategic fit?
a) Understanding the customer and supply chain uncertainty
b) Aligning supply chain strategy with competitive strategy
c) Reducing product variety
d) Achieving the desired responsiveness and efficiency balance
Answer: c
19. Which of the following is a major challenge in achieving strategic fit?
a) Stable market demand
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b) Increased product life cycle
c) Globalization of supply chains
d) Simple distribution networks
Answer: c
20. Uncertainty in supply and demand affects:
a) Strategic fit achievement
b) Only production cost
c) Not related to supply chain decisions
d) Only transportation decisions
Answer: a
UNIT – II
Descriptive Questions
1. Explain the major impellers (drivers) responsible for the development and
evolution of supply chains with suitable examples.
2. Discuss the role of inventory as a logistical driver and explain the metrics
used to measure its performance.
3. Explain how transportation impacts supply chain responsiveness and
efficiency. Mention its key decision components and performance metrics.
4. Describe the role of facilities in supply chain design and performance. Explain
how facility-related decisions affect cost and responsiveness.
5. Explain the role of information as a cross-functional driver of supply chain
performance. How is its effectiveness measured?
6. Discuss the importance of sourcing in supply chain performance. Explain the
key decisions and metrics related to sourcing.
7. Explain how pricing acts as a driver in influencing supply chain performance.
Mention the metrics used to evaluate pricing strategies.
8. Compare logistical drivers and cross-functional drivers of supply chain
performance with examples.
9. Discuss the trade-off between cost and responsiveness in relation to logistical
and cross-functional drivers. Provide examples.
10. Explain how the right combination of drivers and metrics helps in achieving
strategic fit in a supply chain.
Objective Questions with Answers
1. Which of the following is NOT an impeller of supply chain development?
a) Globalization
b) Customer expectations
c) Technological advancements
d) Employee absenteeism
Answer: d
2. Which factor has significantly increased the complexity of supply chains in
recent years?
a) Local sourcing
b) Globalization
c) Decreased product variety
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Supply Chain Management
d) Reduced competition
Answer: b
3. Which technological development has the greatest impact on real-time
supply chain visibility?
a) Blockchain
b) Steam engines
c) Assembly line production
d) Manual ledgers
Answer: a
4. Customer expectations as an impeller primarily influence:
a) Reducing responsiveness
b) Increasing product availability and delivery speed
c) Limiting product variety
d) Increasing production lead time
Answer: b
5. Which of the following is NOT a logistical driver of supply chain
performance?
a) Facilities
b) Inventory
c) Transportation
d) Information
Answer: d
6. The main role of inventory as a driver in a supply chain is to:
a) Reduce production
b) Act as a buffer against uncertainty in demand and supply
c) Decrease service level
d) Increase transportation cost
Answer: b
7. Which of the following transportation modes offers the highest
responsiveness but at high cost?
a) Rail
b) Air
c) Waterways
d) Pipelines
Answer: b
8. Facilities as a driver mainly focus on:
a) Location and capacity decisions
b) Marketing and branding
c) Customer service policies
d) IT infrastructure
Answer: a
9. Which metric is commonly used to measure transportation performance?
a) Fill rate
b) Transit time
c) Inventory turnover
d) Forecast accuracy
Answer: b
10. Which facility decision affects both responsiveness and cost the most?
a) Facility location
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Supply Chain Management
b) Choice of IT system
c) Payment terms
d) Pricing policy
Answer: a
11. Which of the following is NOT a cross-functional driver in supply chain
management?
a) Information
b) Sourcing
c) Pricing
d) Transportation
Answer: d
12. The primary role of information in a supply chain is to:
a) Reduce visibility
b) Enable coordination and planning among partners
c) Increase uncertainty
d) Delay decision-making
Answer: b
13. Which sourcing decision affects the overall cost structure of the supply chain?
a) Mode of transportation
b) Single sourcing vs. multiple sourcing
c) Customer pricing
d) Facility layout
Answer: b
14. Pricing as a driver influences:
a) Demand pattern and order size
b) Facility location
c) Lead time of raw materials
d) Supplier performance only
Answer: a
15. Which metric is commonly used to measure sourcing performance?
a) Supplier lead time
b) Forecast accuracy
c) Customer retention rate
d) Fill rate
Answer: a
16. Which pricing strategy encourages large, infrequent orders?
a) Everyday low pricing
b) High-low pricing
c) Volume discount pricing
d) Dynamic pricing
Answer: c
17. Inventory turnover is a metric related to:
a) Facilities
b) Transportation
c) Inventory management
d) Pricing
Answer: c
18. Which of the following metrics evaluates facility performance?
a) Inventory carrying cost
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b) Capacity utilization
c) Price elasticity
d) Forecast error
Answer: b
19. The fill rate metric is used to measure:
a) Customer service level in terms of order fulfillment
b) Facility utilization
c) Supplier reliability
d) Pricing accuracy
Answer: a
20. A key metric for measuring information performance in a supply chain is:
a) Forecast accuracy
b) Inventory turnover
c) Transit time
d) Volume discount
Answer: a
UNIT – III
Descriptive Questions
1. Explain the role of distribution in the supply chain. How does distribution
impact supply chain performance in terms of cost and responsiveness?
2. Discuss the major factors that influence distribution network design. Provide
suitable examples for each factor.
3. Explain how customer service requirements and product characteristics
affect distribution network design decisions.
4. Describe the design option of manufacturer storage with direct shipping.
Explain its advantages and disadvantages.
5. Explain the concept of manufacturer storage with direct shipping and in-
transit merge. How does it improve supply chain efficiency?
6. Compare and contrast manufacturer storage with direct shipping and
manufacturer storage with in-transit merge in terms of cost, inventory, and
responsiveness.
7. Discuss the importance of network design in a supply chain. How does it
influence cost, responsiveness, and customer satisfaction?
8. Explain the factors influencing network design decisions related to
competitive strategy and customer expectations.
9. How do macroeconomic factors (taxes, tariffs, exchange rates) and political
factors impact supply chain network design?
10. Discuss how infrastructure availability and technology considerations affect
network design decisions in a global supply chain context.
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Supply Chain Management
Objective Questions with Answers
1. Which of the following best describes the role of distribution in a supply
chain?
a) Only storing finished goods
b) Only delivering products to retailers
c) The steps involved in moving and storing a product from supplier to
customer
d) Only managing transportation
Answer: c
2. Which of the following is a key performance measure for distribution
networks?
a) Supplier lead time
b) Inventory turnover
c) Customer response time
d) Supplier reliability
Answer: c
3. An efficient distribution network improves:
a) Responsiveness only
b) Cost-effectiveness and customer service
c) Production speed only
d) Supplier performance only
Answer: b
4. Which of the following is NOT a primary goal of distribution?
a) Minimize transportation cost
b) Increase responsiveness
c) Increase production lead time
d) Maximize customer satisfaction
Answer: c
5. Which of the following factors does NOT influence distribution network
design?
a) Customer service levels
b) Product characteristics
c) Inventory carrying cost
d) Number of suppliers
Answer: d
6. Increasing the number of warehouses in a distribution network generally:
a) Reduces transportation cost and increases inventory cost
b) Increases transportation cost and reduces inventory cost
c) Reduces both transportation and inventory cost
d) Has no effect on cost
Answer: a
7. Higher product variety in a distribution network typically:
a) Simplifies network design
b) Increases complexity and inventory levels
c) Reduces transportation lead time
d) Eliminates the need for safety stock
Answer: b
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Supply Chain Management
8. Which of these directly impacts distribution network design decisions?
a) Customer demand patterns
b) Supplier hiring policies
c) Employee training programs
d) Organizational hierarchy
Answer: a
9. In manufacturer storage with direct shipping, products are stored:
a) At retail stores
b) At distributors
c) At manufacturer’s location
d) At customer’s location
Answer: c
10. Which of the following is an advantage of manufacturer storage with direct
shipping?
a) Low transportation cost
b) Lower inventory and better product availability
c) Shorter response time
d) Low coordination cost
Answer: b
11. Which of these is a disadvantage of manufacturer storage with direct
shipping?
a) High inventory cost
b) Longer response time and high transportation cost
c) High product unavailability
d) Limited product variety
Answer: b
12. In-transit merge is used to:
a) Merge products from the same supplier before shipping
b) Merge shipments from multiple manufacturers to the same customer
during transit
c) Merge customer orders at a retail location
d) Merge raw materials at a plant
Answer: b
13. Which of the following is a benefit of in-transit merge?
a) Increased inventory
b) Reduced transportation and handling cost
c) Increased response time
d) Higher facility cost
Answer: b
14. Manufacturer storage with in-transit merge compared to direct shipping
provides:
a) Higher inventory levels
b) Lower transportation cost and improved customer experience
c) Slower delivery lead times
d) Increased facility requirements
Answer: b
15. Network design decisions in a supply chain primarily focus on:
a) Employee salaries
b) Location and capacity of facilities, and flow of products
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c) Marketing strategies only
d) Customer relationship policies
Answer: b
16. An effective supply chain network design helps achieve:
a) Only higher responsiveness
b) A balance between cost and responsiveness
c) Increased taxes and tariffs
d) Elimination of all intermediaries
Answer: b
17. Which of the following is a key factor influencing network design decisions?
a) Transportation cost
b) Supplier lead time
c) Infrastructure availability
d) All of the above
Answer: d
18. Macroeconomic factors that influence network design include:
a) Customer expectations and preferences
b) Taxes, tariffs, and exchange rates
c) Facility layout
d) Workforce scheduling
Answer: b
19. Political stability and legal environment affect:
a) Facility location decisions in network design
b) Customer demand patterns
c) Supplier pricing strategies
d) Forecast accuracy
Answer: a
20. Which of these technological factors influences network design the most?
a) Availability of material handling systems
b) Demand forecasting software
c) IT systems for coordination
d) All of the above
Answer: d
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