Supply Chain Management Supply Chain Management MCQ 4 — Questions and Answers
Question 1: Which transportation mode typically offers the lowest cost per ton-mile for bulk commodities shipped over long distances within the US?
- Truckload (TL)
- Air freight
- Rail (Correct answer)
- Less-than-Truckload (LTL)
Correct answer: Rail
Rail transport has very low cost per ton-mile for high-volume, heavy, or bulk commodities over long distances due to fuel efficiency and high capacity.
Question 2: The Kraljic Matrix classifies purchased items based on two dimensions. What are they?
- Lead time and order quantity
- Profit impact and supply risk (Correct answer)
- Quality level and delivery frequency
- Supplier reliability and product complexity
Correct answer: Profit impact and supply risk
The Kraljic Matrix plots items on profit impact (spend significance) versus supply risk (supply market complexity) to guide sourcing strategy.
Question 3: Which supply chain model is best described as a network where one focal company coordinates multiple tiers of suppliers and distributors?
- Hub-and-spoke network
- Point-to-point network
- Multi-echelon supply chain (Correct answer)
- Decentralized supply chain
Correct answer: Multi-echelon supply chain
A multi-echelon supply chain has multiple levels (tiers) of suppliers, manufacturers, distributors, and retailers linked in a coordinated network.
Question 4: What is the key operational principle behind a 'pull' production system?
- Products are manufactured according to a master production schedule regardless of current demand
- Production is triggered only by actual customer demand or consumption signals (Correct answer)
- Inventory is pushed forward to distribution centers in anticipation of demand
- Suppliers are given long-term fixed forecasts to optimize their capacity
Correct answer: Production is triggered only by actual customer demand or consumption signals
In a pull system, production and replenishment are initiated by real demand signals rather than forecasts, reducing overproduction and inventory buildup.
Question 5: Which term describes the practice of grouping shipments from multiple suppliers at a consolidation point to fill a single container or truck?
- Drop shipping
- Cross-docking
- Freight consolidation (Correct answer)
- Transshipment
Correct answer: Freight consolidation
Freight consolidation combines smaller shipments from multiple origins into a single larger shipment to reduce per-unit transportation costs.
Question 6: A supply chain resilience strategy that maintains redundant supplier relationships in different geographic regions is an example of:
- Lean sourcing
- Supply base rationalization
- Geographic diversification (Correct answer)
- Vertical integration
Correct answer: Geographic diversification
Geographic diversification spreads supply risk by sourcing from suppliers in different regions so a localized disruption does not halt production.
Question 7: Which inventory classification system prioritizes control efforts by dividing items into three groups based on annual consumption value?
- FIFO/LIFO analysis
- ABC analysis (Correct answer)
- SKU rationalization
- Cycle counting
Correct answer: ABC analysis
ABC analysis classifies inventory into A (high value, tight control), B (moderate), and C (low value, minimal control) based on annual spend or consumption value.
Supply Chain Management Supply Chain Management MCQ 4
Which transportation mode typically offers the lowest cost per ton-mile for bulk commodities shipped over long distances within the US?