Myanmar International Business Academy (MIBA)

Diploma in Supply Chain Management

Test (3)

Student’s Name ……………………………

Date ………………………………………..

Attempt ALL questions.

1. An appropriate strategy to achieve the objective of optimizing the productivity of retail space
and inventory is:
A. Efficient store assortments
B. Efficient replacement
C. Integrate this activity into all supply chain planning
D. Revision of organization processes supported by information systems

2. Supply chain management is all about designing and planning out the overall architecture of
the supply chain network and value adding flows that go through it. The key contents of such
architecture design and planning includes all of the following except:

A. Extent of vertical integration

B. Configuration
C. Strategic outsourcing
D. Marketing strategies

3. In considering a simple model of a supply chain, the correct sequence of an organization’s

supply chain from a system perspective is:

A. Transformation process, acquisition of resources, delivery to customers

B. Transformation process, delivery to customers, acquisition of resources
C. Delivery to customers, acquisition of resources, transformation process
D. Acquisition of resources, transformation process, delivery to customers

4. Service can be classified in several ways. Which of the statements below is correct?

A. A popular way to classify services is based on their physical characteristics

B. The classification that distinguishes contact intensity, identifies three different services:
professional services, service shop and mass services
C. The way in which a service is classified determines how the customer and supplier should
interact, after the contact has been closed
D. All the statements above are correct

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5. Services are differentiated from goods by four basic characteristics. Which of the statements
below is not correct?

A. Intangibility relates to the fact that services cannot be touched

B. Homogeneity implies that service (exchange) can be standardized
C. Simultaneity relates to the fact that services are produced and consumed at the same time
D. Perishability relates to the fact that once a service is consumed it vanishes

6. Which of the following is not thought to be the rationale for the radical changes in traditional
business and modern business environment?

A. Heightened customer expectation

B. Globalization
C. Popularity of outsourcing
D. Geopolitical factors

7. Which of the flows mentioned below may represent major areas of concerns and research
activities in the supply chain management?

A. Material flow, information flow, product flow, commercial flow

B. Material flow, information flow, resource flow, commercial flow
C. Material flow, information flow, finance flow, commercial flow
D. Material flow, information flow, decision flow, commercial flow

8. A chocolate manufacturing supply chain will have the cocoa plucked from cocoa plantation
been transformed through the chain and end up to a pack of ‘CADBURY’ chocolate ties the
whole supply chain together and define its clear boundary.

Which of the following intrinsic values represents the above situation?

A. Material flow
B. Information flow
C. Finance flow
D. Commercial flow

9. The typical aim of the pull from customer approach to supply chain management is:

A. To improve costs of distribution

B. Enhance product and service quality
C. Optimize the production process for cost and efficiency
D. Promote information sharing between supply chain members

10. Single entity perspective of a supply chain is a very useful foundation for supply chain
integration and collaboration. State which one of the following intrinsic flows of a supply
chain represents the single entity concept?

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 A. Material flow
B. Information flow
C. Finance flow
D. Commercial flow

11. Quality filter mapping is a tool used in supply chain management strategies. Which of the
following is incorrect regarding to quality filter mapping?

A. It is a tool designed to identify quality problems in the order fulfillment process or the wider
supply chain
B. The result of a Quality Filter Map shows how much waste is being generated within an
organization at each stage of the process
C. It is a tool designed to justify and prioritize quality problems in the order fulfillment process
or the wider supply chain
D. Results of Quality Filter Mapping are commonly used to feed into continuous improvement
plans.

12. Supply chain configuration is about how a supply chain is constructed from all its
participating firms. Following are the factors that shape any particular supply chain, except:

A. Downstream distribution channel

B. Quantity of OEM’s operations outsourced
C. Extent of vertical integration
D. NPI process and detailed financial information

13. Which is FALSE for outsourcing?

A. Outsourcing is relatively simple to understand as a concept, but is difficult to implement in

practice.
B. Outsourcing specific functions are viewed as critical for controlling costs.
C. The functions that will see the greatest increase in outsourcing are product development,
supply chain planning and shared services.
D. Outsourcing is relatively complex to understand as a concept, but is difficult to implement
in practice.

14. ……………., hardworking, well educated workforce and loyalty to the company become
part of the organizational culture.

A. High motivation
B. High remuneration
C. High commitment
D. Good working environment

15. The process flow concept helps to see and understand the value stream of the …………. and
the supply chain.

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 A. manufactures
B. work-in-progress
C. finished goods
D. production

16. Bullwhip effect refers to a supply chain-wide phenomenon that modest change of customer
demand is distorted and amplified toward the upstream end of the supply chain resulting in
large variations of orders placed upstream. Basically the bullwhip effect has number of
characteristics.

Which of the following is not a bullwhip characteristic?

A. Oscillation
B. Amplification
C. Dynamic
D. Phase lag

17. ……………….. develop and make use of employee’s intellectual assets and everyone is
encouraged to make improvement suggestions. Which of the following best fill the gap?

A. Just-in-time manufacturing
B. Customer oriented manufacturing
C. Lean manufacturing
D. Original equipment manufacturing

18. Supplier selection involves a number of steps. Which of the following steps is not part of the
supplier selection process?

A. Determining a bidders’ list

B. Determine an order procedure
C. Comparison of the offers
D. An e-auction

19. Sharing of subcomponents across the product lines will lead to effective management of
inventories, consistent supplies and operational cost savings and can be achieved through
which of the following?

A. Products and material standardization

B. Hiring well-trained shop floor operators
C. Hiring well-educated factory supervisor
D. Synchronizing full operational activities

20. Logistics ………. …….. is a complement to the supply chain response matrix.

A. conceptual map
B. component map

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 C. pipeline map
D. statistical map

21. Lean production structure depends on which of the following factors:

A. Pricing
B. Quantity
C. Delivery
D. Consistent supplier

22. Consider the following statements concerning the ‘Triple-A’ supply chain model.
I. An organization and its supply chain can embark on major strategic changes in technology,
market positioning, radical skill upgrading and competence shift.
II. A supply chain has been structured as such that it remains stable and align all the
complimentary resources.

Which of the following combination regarding the above statement is appropriate?

A. Statement (i) = Adaptability, Statement (ii) = Alignment

B. Statement (i) = Adaptability, Statement (ii) = Agility
C. Statement (i) = Alignment, Statement (ii) = Adaptability
D. Statement (i) = Agility, Statement (ii) = Alignment

23. What do you mean by OEM?

A. Original Equipment Manufacturer

B. Original and Essential Market
C. Order Entry Mail
D. Ordered equipment Manufacturer

24. The process of transforming raw materials to finish product delivered to customers refers to:

A. The physical transformation task

B. The problem-solving task of value stream management
C. The information task
D. Value generation

25. If observed carefully, one should realize that supply chain management is merely a part of
……………….

A. Finance
B. Marketing Management
C. Operations Management
D. Human Resource Management

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26. The term ‘supply chain management’ first appeared in ……….. .

A. 1960s
B. 1970s
C. 1980s
D. 1990s

27. Which is/are the most important goal of supply chain management?

A. Cost reduction
B. Supplier selection
C. Customer satisfaction
D. Both A and C

28. Which flow is not an important factor for managing supply chains?

A. Commercial flow
B. Finance flow
C. Marketing flow
D. Information flow

29. The fundamental objective of Supply Chain Management is to …………. .

A. increase sales
B. decrease cost
C. add value
D. create demand

30. Which is NOT of the functions that are most difficult to bring under the umbrella of Supply
Chain Management?

A. Master production planning

B. Sales forecasting
C. Third party invoice payment/audit
D. Procurement of materials

31. Improvement of which of the below is not a reason of globalization?

A. Telecommunication
B. Internet
C. Free trade
D. Customer focus

32. For a global supply chain, which of the below is the final thing you need to manage?

A. border crossings

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 B. multiple hand-offs
C. information
D. uncertainty

33. Using software effectively in the procurement can ………………

A. Better assess and manage vendors’ performance

B. Build stronger relationships with vendors
C. None
D. Both

34. Dimensions of global supply chain management challenges are:

A. Logistics-Procurement-Technology-Time
B. Market-Finance-Operations-HRM
C. Market-Technology-Resource-Time
D. Market-Information-Customer-Finance

35. Market dimension challenge comes from:

A. Fluctuation of demand
B. Marketing related constraints
C. Natural calamities and political violence
D. Logistics shortcomings

36. If the challenge of time dimension is not handled properly:

A. Cost increases
B. Profit increases
C. Sales decreases
D. Both A and C

37. Which is not a benefit of outsourcing a business process?

A. Focus on core areas

B. Save on infrastructure and technology
C. Access to skilled resources
D. Increasing the sales of products

38. Toyota Production System (TPS) has now been more commonly known as lean
manufacturing. Which of the below is the main goal of both lean manufacturing and TPS?

A. Making the organization lean and small

B. Cost reduction by the elimination of waste
C. increase of sales by more customer focus
D. Outsourcing most of the tasks to increase value

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39. Which one is NOT a disadvantage of mass production over lean production?

A. Mass producers have to design the parts made by its suppliers

B. Mass producer enjoys less product uniqueness
C. Large inventories build up
D. Mass production is slow

40. Which one is found in lean supply chain structure?

A. High outsourcing and small supply base

B. Low outsourcing and small supply base
C. Low outsourcing and large supply base
D. High outsourcing and large supply base

-END-

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No Answers
1 A
2 D
3 D
4 D
5 B
6 D
7 C
8 A
9 B
10 C
11 C
12 D
13 D
14 C
15 D
16 C
17 C
18 B
19 A
20 C
21 C
22 A
23 A
24 A
25 B
26 C
27 D
28 C
29 C
30 D
31 D
32 C
33 D
34 C
35 A
36 D
37 D
38 B
39 D
40 A

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