Supply Chain and Logistics Management MCQs 2026

In management practice, reverse logistics primarily involves

1. Aforward shipment of raw materials to factories only✓
2. Bexpanding production capacity without handling product returns✓
3. Coutbound marketing of new products to first-time buyers only✓
4. Dprocesses for moving goods from customers back through the chain for returns, recycling, remanufacturing or disposal✓

vendor-managed inventory (VMI) is best defined as

1. Aa system where buyers reorder only once per year without data sharing✓
2. Ba arrangement where the supplier monitors and replenishes the buyer's inventory based on agreed service levels✓
3. Cexclusive use of manual paper ledgers without electronic visibility✓
4. Da policy prohibiting suppliers from knowing consumption data✓

Regarding third-party logistics (3PL), the accurate statement is

1. Ainternal ownership of all fleet vehicles and warehouses by the manufacturer✓
2. Belimination of all outsourced transport regardless of cost✓
3. Ca marketing agency managing brand identity without freight services✓
4. Duse of an external provider to perform logistics functions such as warehousing, transport or fulfillment✓

In management practice, strategic sourcing primarily involves

1. Achoosing the lowest price bid without quality or delivery analysis✓
2. Ba systematic process to optimize supplier selection, negotiation and relationship management for long-term value✓
3. Cbuying only from a single unqualified vendor permanently✓
4. Dignoring total cost and focusing on unit price alone always✓

In management practice, total cost of ownership (TCO) primarily involves

1. Athe purchase invoice price at the moment of order only✓
2. Bthe freight charge for the first shipment without storage cost✓
3. Cthe advertising expense for promoting the brand only✓
4. Dthe complete cost of acquiring, operating, maintaining and disposing of a product or service over its life✓

Regarding procurement in supply chain, the accurate statement is

1. Athe retail display of finished consumer products only✓
2. Bthe process of identifying needs, selecting suppliers, negotiating contracts and purchasing goods or services✓
3. Cthe after-sales customer complaint hotline operation only✓
4. Dthe graphic design of product packaging without buying inputs✓

Regarding make-or-buy decision, the accurate statement is

1. Aa decision to ignore capacity constraints and outsource everything always✓
2. Bselecting advertising media without production consideration✓
3. Cevaluating whether to produce internally or purchase from external suppliers based on cost, capability and strategy✓
4. Dhiring staff based solely on interview impressions without analysis✓

supply chain integration is best defined as

1. Alinking processes, information systems and partners to coordinate planning and execution across the chain✓
2. Boperating each function in isolation without data exchange✓
3. Cmaintaining incompatible IT systems that block visibility✓
4. Drefusing to share demand forecasts with key suppliers✓

In management practice, ABC inventory analysis primarily involves

1. Asorting products alphabetically by brand name only✓
2. Branking suppliers by geographic distance without value data✓
3. Cclassifying items by annual consumption value so that A items receive tightest control and C items lighter control✓
4. Dcounting physical units without considering rupee value✓

kanban in supply chain is best defined as

1. Aa push system based solely on long-range sales forecasts without signals✓
2. Ba pull system using visual signals or cards to authorize production or movement of materials✓
3. Can annual bulk purchase order sent without consumption triggers✓
4. Da manual annual stocktake replacing all daily replenishment rules✓

In management practice, SCOR model primarily involves

1. Aa reference model describing supply chain processes across plan, source, make, deliver, return and enable✓
2. Ba financial ratio set for banking liquidity assessment only✓
3. Ca human resource competency framework for recruitment only✓
4. Da software coding standard for mobile application development✓

bullwhip effect is best defined as

1. Aamplification of demand variability upstream in the supply chain caused by order batching, rationing and forecast updating✓
2. Bstable demand signals that become smoother at each supply chain tier✓
3. Ca pricing strategy that lowers retail prices during peak season only✓
4. Da quality defect discovered at the final assembly stage only✓

safety stock is best defined as

1. Ainventory sold at a discount during clearance sales only✓
2. Bobsolete stock written off after years without movement✓
3. Cextra inventory held to protect against uncertainty in demand or lead time✓
4. Dfinished goods shipped immediately with zero buffer always✓