Supply Chain and Logistics Management MCQs 2026

safety stock is best defined as

1. A inventory sold at a discount during clearance sales only ✓
2. B obsolete stock written off after years without movement ✓
3. C extra inventory held to protect against uncertainty in demand or lead time ✓
4. D finished goods shipped immediately with zero buffer always ✓

cold chain logistics is best defined as

1. A temperature-controlled storage and transport for perishable products such as pharmaceuticals and food ✓
2. B bulk transport of dry cement without environmental controls ✓
3. C office document courier services at ambient room temperature only ✓
4. D inventory of non-perishable stationery supplies in open yards ✓

supply chain integration is best defined as

1. A linking processes, information systems and partners to coordinate planning and execution across the chain ✓
2. B operating each function in isolation without data exchange ✓
3. C maintaining incompatible IT systems that block visibility ✓
4. D refusing to share demand forecasts with key suppliers ✓

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

1. A a decision to ignore capacity constraints and outsource everything always ✓
2. B selecting advertising media without production consideration ✓
3. C evaluating whether to produce internally or purchase from external suppliers based on cost, capability and strategy ✓
4. D hiring staff based solely on interview impressions without analysis ✓

Regarding procurement in supply chain, the accurate statement is

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

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

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

In management practice, strategic sourcing primarily involves

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

In management practice, SCOR model primarily involves

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

kanban in supply chain is best defined as

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

In management practice, ABC inventory analysis primarily involves

1. A sorting products alphabetically by brand name only ✓
2. B ranking suppliers by geographic distance without value data ✓
3. C classifying items by annual consumption value so that A items receive tightest control and C items lighter control ✓
4. D counting physical units without considering rupee value ✓

In management practice, cross-docking primarily involves

1. A transferring inbound shipments directly to outbound vehicles with minimal storage time ✓
2. B long-term warehousing of seasonal goods for twelve months ✓
3. C manufacturing components from raw steel on the dock only ✓
4. D holding returned merchandise indefinitely without sorting ✓

In management practice, lead time in supply chain primarily involves

1. A the time required to design a corporate mission statement only ✓
2. B the duration of an employee probation period after hiring ✓
3. C the elapsed time between placing an order and receiving the goods ready for use or sale ✓
4. D the payment terms net thirty days on an invoice only ✓

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

1. A internal ownership of all fleet vehicles and warehouses by the manufacturer ✓
2. B elimination of all outsourced transport regardless of cost ✓
3. C a marketing agency managing brand identity without freight services ✓
4. D use of an external provider to perform logistics functions such as warehousing, transport or fulfillment ✓

vendor-managed inventory (VMI) is best defined as

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

In management practice, reverse logistics primarily involves

1. A forward shipment of raw materials to factories only ✓
2. B expanding production capacity without handling product returns ✓
3. C outbound marketing of new products to first-time buyers only ✓
4. D processes for moving goods from customers back through the chain for returns, recycling, remanufacturing or disposal ✓

bullwhip effect is best defined as

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