MITHRA INSTITUTE OF MANAGEMENT STUDIES PVT.LTD- INDIA’S LEADING LOGISTICS & SUPPLY CHAIN MANAGEMENT INSTITUTE
110th, 111th ,112th & 113th Batches Admission Continues for Logistics & Supply Chain Management.
1. What does SCM stand for in the context of business operations?
Answer: C
2. ……………and physical distribution are the two major operations of logistics.
Answer: B
3.Which performance metric measures the number of times inventory is sold or used in a specific period?
Answer: A
4.……………is the task of buying goods of right quality, in the right quantities, at the right time and at the right price.
Answer: B
5.What component of SCM involves converting raw materials into finished products?
Answer: B
6…………is the time that elapses between issuing replenishment order and receiving the material in stores.
Answer: B
7.What is a significant challenge faced by supply chain management in the modern landscape?
Answer: D
8.Which is not a part of basic systems of codifications?
Answer: D
9.What technique aims to strike the balance between carrying costs and stockouts?
Answer: A
10. ……………….includes design and administration of systems to control the flow of materials, WIP and finished inventory to support business unit strategy.
Answer: A
Which method of demand forecasting involves customer surveys and market research?
Answer: D
Which of the following is not a component of 4PL?
Answer: D
13.What is the primary purpose of Demand Planning and Forecasting in SCM?
Answer: A
14.Buying according to the requirements is called …………
Answer: B
15. Which metric measures the percentage of customer orders that are fulfilled on time?
Answer: B
16.Which of the following is not a part of Supply chain Management system?
Answer: D
17.What does ABC analysis classify inventory items Demand based on?
Answer: B
18.The purpose of supply chain management is…………….
Answer: A
What is the primary objective of EDI in supply chain operations?
Answer: A
What aspect of supplier management involves ongoing communication, performance monitoring, and fostering trust and transparency?
Answer: C
……………………..is the provision of service to customers before, during and after a purchase.
Answer: A
22.What does strategic sourcing involve in procurement and supplier management?
Answer: C
Answer: D
24.What does WIP inventory refer to in the supply chain?
Answer: D
25.Continuous improvement initiatives in supplier management aim to _____
Answer: B
26.PL stands for
Answer: B
27.What does the Economic Order Quantity (EOQ) aim to minimize?
Answer: A
28.Distribution requirements planning is a system for
Answer: C
29.Lean inventory principles aim to eliminate _____
Answer: C
29.What function does EDI standardization serve in supply chain operations?
Answer: C
30.Logistics system are made up of 2 main activities
Answer: C
31.What does ERP offer in terms of human resource management?
Answer: A
32.VMI stands for
Answer: B
33.ABC analysis suggests that approximately what percentage of items account for a large portion of the total value or impact?
Answer: D
34.Reverse logistics is required because
Answer: D
35.What does Just-in-Time (JIT) emphasize in production and inventory management?
Answer: B
36.Which of the following is true for supply chain management?
Answer: D
37.What does the term “TIMWOODS” represent in Lean methodology?
Answer: B
38.What function do supply chain integration and collaboration platforms primarily serve?
Answer: C
39.What are the elements of logistics system ?
Answer: D
40.What role does root cause analysis play in supplier performance evaluation?
Answer: B
41.Which step in supplier management focuses on assessing supplier financial stability, compliance, and capacity?
Answer: B
42.Supplier scorecards or performance dashboards provide _____
Answer: D
43.What aspect does RFID technology significantly improve within a warehouse setting?
Answer: B
44.What purpose does RFID technology serve in inventory management?
Answer: B
45.Time for which the assets are kept idle against the time they get utilized in the supply chain is _____.
Answer: D
46.True or False? The forecast should work constantly and also be reliable.
Answer: A
47.The concerned effort of two or more supply chain partners to gain competitive advantage is _____
Answer: C
48.Logistics is the part of Supply chain involved with the forward and reserve flow of _____
Answer: D
49.Positive, long-term relationships between supply chain participants refers to _____
Answer: D
50.The purpose of supply chain management is to
Answer: D
51.Supply Chain consist of the following
Answer: D
52.In a supply chain, material flows in one direction, while _____ flows from both the directions
Answer: B
53.The major decision areas in supply chain management are
Answer: A
53.The major decision areas in supply chain management are
Answer: A
54.Due to small change in customer demands, inventory oscillations become progressively larger looking through the supply chain. This is known as
Answer: A
55.DRP stands for
Answer: A
57.E-logistics features
Answer: C
58.E-logistics features
Answer: C
59.Which one of the following is the best explanation of international logistics?
Answer: C
60.The sequence of a typical manufacturing supply chain is
Answer: C
61.The sequence of a typical manufacturing supply chain is
Answer: B
62.Which of the following is not a component of 4 PL?
Answer: B
63.A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as
Answer: B
1.What does SCM stand for in the context of business operations?
A. Sales and Customer Management
B. Supplier Coordination Mechanism
C. Supply Chain Management
D. Service Capacity Management
ANS: C
2. Which performance metric measures the number of times inventory is sold
or used in a specific period?
A. Inventory Turnover Ratio
B. Fill Rate
C. Order Cycle Time
D. Carrying Cost of Inventory
ANS: A
3.What component of SCM involves converting raw materials into finished
products?
A. Procurement
B. Production
C. Logistics
D. Distribution
ANS: B
4.What is a significant challenge faced by supply chain management in the
modern landscape?
A. Decreasing complexity of global supply chains
B. Reduced importance of sustainability and ethical practices
C. Absence of ecommerce and omni-channel distribution
D. Integration of emerging technologies
ANS: D
5.What technique aims to strike the balance between carrying costs and
stockouts?
A. EOQ
B. JIT
C. ABC Analysis
D. RFID
ANS: A
6.Which method of demand forecasting involves customer surveys and
market research?
A. Time Series Analysis
B. Regression Analysis
C. Collaborative Forecasting
D. Market Intelligence
ANS: D
7.What is the primary purpose of Demand Planning and Forecasting in SCM?
A. To estimate future demand for products/services
B. To minimize supplier relationships
C. To reduce inventory levels
D. To optimize production costs
ANS: A
8.Which metric measures the percentage of customer orders that are fulfilled
on time?
A. Inventory Turnover Ratio
B. Fill Rate
C. Order Cycle Time
D. Carrying Cost of Inventory
ANS: B
9.What does ABC analysis classify inventory items based on?
A. Demand variability
B. Monetary value
C. Future demand patterns
D. Supplier relationships
ANS: B
10.What is the primary objective of EDI in supply chain operations?
A. Standardizing data formats
B. Encouraging manual processes
C. Limiting information exchange
D. Facilitating data silos
ANS: A
11.What aspect of supplier management involves ongoing communication,
performance monitoring, and fostering trust and transparency?
A. Supplier development
B. Supplier segmentation
C. Supplier relationship management
D. Contract negotiation
ANS: C
12.What does strategic sourcing involve in procurement and supplier
management?
A. Assessing supplier performance
B. Continuous improvement initiatives
C. Identifying and selecting suppliers
D. Managing supplier relationships
ANS: C
13.What does WIP inventory refer to in the supply chain?
A. Final, completed products ready for sale
B. Goods in transit from one location to another
C. Raw materials awaiting production
D. Goods in the process of being manufactured but not yet completed
ANS: D
14.Continuous improvement initiatives in supplier management aim to _____.
A. Maintain the status quo
B. Collaboration and value creation
C. Ignore supplier feedback
D. Minimize supplier performance
ANS: B
15.What does the Economic Order Quantity (EOQ) aim to minimize?
A. Total holding costs
B. Lead time variability
C. Total annual demand
D. Administrative expenses
ANS: A
16.Lean inventory principles aim to eliminate _____.
A. Value-added activities
B. Continuous flow
C. Overproduction
D. High inventory levels
ANS: C
17.What function does EDI standardization serve in supply chain operations?
A. Enabling data silos
B. Encouraging manual data entry
C. Facilitating standardized electronic communication
D. Limiting data accuracy
ANS: C
18.What does ERP offer in terms of human resource management?
A. Time and attendance tracking
B. Supplier qualification
C. Financial stability assessment
D. Supplier contract development
ANS: A
19.ABC analysis suggests that approximately what percentage of items
account for a large portion of the total value or impact?
A. 10%
B. 20%
C. 50%
D. 80%
ANS: D
20.What does Just-in-Time (JIT) emphasize in production and inventory
management?
A. Overproduction
B. Continuous flow
C. Excess inventory
D. High work-InProgress inventory
ANS: B
21.What does the term “TIMWOODS” represent in Lean methodology?
A. Categories of process improvement tools
B. Eight types of supply chain waste
C. Steps in the value stream mapping process
D. Principles of data-driven decision making
ANS: B
22.What function do supply chain integration and collaboration platforms
primarily serve?
A. Eliminating communication entirely among stakeholders
B. Facilitating data silos and manual data entry errors
C. Enabling seamless communication and information sharing
D. Creating operational inefficiencies within supply chains
ANS: C
23.What role does root cause analysis play in supplier performance
evaluation?
A. To celebrate successes
B. To identify underlying issues
C. To reward suppliers
D. To ignore performance issues
ANS: B
24.Which step in supplier management focuses on assessing supplier
financial stability, compliance, and capacity?
A. Contract negotiation
B. Supplier evaluation and selection
C. Supplier development
D. Risk management
ANS: B
25.Supplier scorecards or performance dashboards provide _____.
A. A platform for isolation
B. A visual representation of supplier feedback
C. Transparent communication channels
D. A way to compare supplier performance
ANS: D
26.What aspect does RFID technology significantly improve within a
warehouse setting?
A. Employee management
B. Picking and sorting efficiency
C. Financial reporting
D. Supplier evaluation
ANS: B
27.What purpose does RFID technology serve in inventory management?
A. Enhancing financial management
B. Providing real-time tracking
C. Streamlining supplier collaboration
D. Limiting inventory visibility
ANS: B
28.Time for which the assets are kept idle against the time they get utilised in
the supply chain is _____.
A. Scheduling of production
B. Activity of logistics postponement
C. Reducing cash conversion cost
D. Dwell time minimisation
ANS: D
29.True or False? The forecast should work constantly and also be reliable.
A. TRUE
B. FALSE
C. Cannot be determined
ANS: A
30.The concerned effort of two or more supply chain partners to gain
competitive advantage is _____
A. Co-operation
B. Partnership
C. Collaboration
D. Affiliation
ANS: C
31.Logistics is the part of Supply chain involved with the forward and reserve
flow of _____.
A. Goods
B. Services
C. Cash
D. All of the above
ANS: D
32.3PL stands for _____.
A. Third Party Logistics
B. Three Point Logistics
C. Three Points Location
D. None of the above
ANS: A
33.Positive, long term relationships between supply chain participants refers
to _____.
A. Co-operation
B. Tailor Logistics
C. Partnership
D. Supply chain management
ANS: D
34.The purpose of supply chain management is to _____.
A. provide customer satisfaction
B. improve quality of a product
C. integrating supply and demand management
D. All of the above
ANS: D
35.Supply Chain consist of the following:
A. Distribution
B. Warehousing
C. Procurement
D. All of the above
ANS: D
36.In a supply chain, material flows in one direction, while _____ flows from
both the directions.
A. Process
B. Information
C. Product
D. semi-finished goods
ANS: B
37.What is the primary objective of EDI in supply chain operations?
A. Standardizing data formats
B. Encouraging manual processes
C. Limiting information exchange
D. Facilitating data silos
ANS: A
38.What does supply chain visibility enable within an organization?
A. Increased manual processes
B. Better data silos
C. Improved coordination and visibility
D. Limited data sharing
ANS: C
39.What does supplier segmentation involve?
A. Classifying suppliers based on their strategic importance
B. Identifying potential suppliers
C. Establishing long-term relationships
D. Conducting market research
ANS: A
40.What does MRO inventory primarily consist of?
A. Spare parts and tools
B. Basic materials required for production
C. Finished products awaiting distribution
D. Goods in transit by sea or air
ANS: A
41.What was the pivotal development during the industrial revolution that
transformed logistics?
A. Introduction of steam-powered transportation
B. Invention of the printing press
C. Discovery of electricity
D. Advancements in agriculture
ANS: A
42.What technology has disrupted traditional supply chain models in recent
decades?
A. Barcode scanning
B. GPS tracking
C. Digital marketplaces
D. All of the above
ANS: D
43.What does “last-mile delivery” refer to in logistics?
A. Delivery to the last warehouse in the supply chain
B. Final delivery from the manufacturer to the retailer
C. Delivery from the distribution Centre to the end customer
D. Delivery of goods from the port to the warehouse
ANS: C
44.What function ensures the availability of goods while minimizing holding
costs and stockouts?
A. Inventory management
B. Packaging and unitization
C. Transportation
D. Supply chain collaboration
ANS: A
45.What is the primary goal of logistics in last-mile delivery?
A. Maximizing warehouse space
B. Ensuring timely and accurate delivery to end customers
C. Optimizing transportation routes
D. Minimizing packaging costs
ANS: B
46.What aspect of logistics deals with managing potential risks like natural
disasters or geopolitical events?
A. Inventory management
B. Transportation
C. Risk management
D. Supply chain planning
ANS: C
47.What is the aim of reverse logistics in the supply chain?
A. Ensuring timely delivery to customers
B. Managing returns, repairs, or recycling
C. Optimizing transportation routes
D. Minimizing inventory costs
ANS: B
48._____ involves the efficient planning, sourcing, storage and distribution of
service parts needed to support product repairs, maintenance and customer
service.
A. Service Logistics
B. Service Parts Logistics
C. Service Management
D. Inventory Management
ANS: B
49.Which element is essential in supplier management for service parts
logistics?
A. High pricing for competitive advantage
B. Long lead times and frequent stockouts
C. Timely delivery and close collaboration
D. Limited communication and poor quality control
ANS: C
50.What is the primary goal of route planning and optimization in
transportation management?
A. Maximizing transit times
B. Minimizing fuel consumption
C. Increasing transportation costs
D. Expanding delivery schedules
ANS: B
51.What does freight consolidation aim to achieve in transportation
management?
A. Increase transportation costs
B. Minimize capacity utilization
C. Optimize transportation costs and capacity
D. Reduce shipment volume
ANS: C
52.Which technology is increasingly used in warehouse management to
enhance operational efficiency?
A. Automated storage and retrieval systems
B. Transportation tracking systems
C. Inventory management software
D. Labor management software
ANS: A
53.What is a critical aspect of facility location in supply chain network design?
A. Proximity to customers
B. Only considering transportation costs
C. Ignoring labour availability
D. Disregarding market potential
ANS: A
54.What does inventory positioning focus on in supply chain network design?
A. Managing labour resources
B. Balancing customer service and costs
C. Optimizing facility layout
D. Enhancing transportation routes
ANS: B
55.Which aspect is critical in international logistics concerning customs and
compliance?
A. Ignoring import/export procedures
B. Following trade agreements
C. Disregarding tariff classifications
D. Avoiding regulatory requirements
ANS: B
56.What role do customs brokers play in international logistics?
A. Creating trade barriers
B. Facilitating customs compliance
C. Ignoring regulatory requirements
D. Disregarding trade agreements
ANS: B
57.Why is considering environmental impact essential in packaging
strategies?
A. To increase transportation costs
B. To disregard cost-effectiveness
C. To minimize waste and promote sustainability
D. To maximize material usage
ANS: C
58.What does materials handling encompass within logistics operations?
A. Transportation planning
B. Inventory management
C. Warehouse automation
D. Movement, storage, and control of materials
ANS: D
59.Which technology is commonly used in materials handling to optimize
efficiency?
A. Labour management software
B. Warehouse automation systems
C. Transportation tracking systems
D. Inventory management software
ANS: B
60.How does packaging contribute to order fulfilment in logistics?
A. By increasing order accuracy
B. By reducing storage space
C. By disregarding product protection
D. By creating transportation delays
ANS: A
61.Which aspect of warehouse management focuses on ensuring a safe
working environment?
A. Transportation booking
B. Labour management
C. Safety and security measures
D. Inventory management techniques
ANS: C
62.How does international logistics benefit from supply chain visibility?
A. By increasing transportation costs
B. By promoting trade barriers
C. By providing real-time shipment tracking
D. By ignoring regulatory requirements
ANS: C
63.Why is understanding cultural nuances crucial in international logistics?
A. To ignore negotiation techniques
B. To disregard business practices
C. To facilitate communication and collaboration
D. To avoid trade agreements
ANS:C
64.Which factor is essential to consider for minimizing the environmental
impact of packaging materials?
A. Maximizing excess packaging
B. Avoiding recyclable materials
C. Using nonbiodegradable resources
D. Choosing recyclable or biodegradable materials
ANS: D
65.What aspect should be balanced when evaluating packaging materials for
cost-effectiveness?
A. Performance and safety
B. Efficiency and durability
C. Performance and cost
D. Aesthetics and efficiency
ANS: C
66.Why is ease of handling and storage crucial in packaging design?
A. To complicate transportation
B. To increase labor costs
C. To optimize warehouse operations
D. To disregard space utilization
ANS: C
67.What transportation-related aspect should packaging design consider?
A. Maximizing transportation costs
B. Ignoring dimensional compatibility
C. Optimizing weight and dimensional compatibility
D. Increasing carbon footprint
ANS: C
68.Which technique involves placing goods on platforms to facilitate handling
and transportation?
A. Strapping
B. Interlocking
C. Palletizing
D. Shrink wrapping
ANS: C
69.Which technique uses a stretchable plastic film to secure loads on pallets?
A. Slip Sheets
B. Shrink wrapping
C. Strapping
D. Stretch wrapping
ANS: D
70.How do slip sheets differ from pallets in unitization?
A. Slip sheets are thicker than pallets
B. Slip sheets are used for heavy items only
C. Slip sheets reduce weight and space compared to pallets
D. Slip sheets are less durable than pallets
ANS: C
71.What function do Automated Guided Vehicles (AGVs) serve in materials
handling?
A. Manual handling of goods
B. Automated navigation without human operators
C. Conveying materials between different locations
D. Lifting and transporting palletized loads
ANS: B
72.What was a key factor in the logistics system of ancient Egypt?
A. Advanced shipping technology
B. Construction of the Great Pyramids
C. Air travel
D. Just-in-time production methods
ANS: B
73.What revolution marked a significant turning point in logistics management
in the 18th and 19th centuries?
A. Industrial Revolution
B. Technological Revolution
C. Agricultural Revolution
D. Information Revolution
ANS: A
74.What does TMS stand for in logistics?
A. Transport Management System
B. Total Material Supply
C. Transport Mode Solution
D. Trade Management Service
ANS: A
75.What is the purpose of palletizing in logistics?
A. Reducing the number of shipments
B. Increasing packaging costs
C. Providing a stable base for stacking and transporting goods
D. Minimizing environmental impact
ANS: C
76.What does the term “unitization” refer to in logistics?
A. Breaking down large shipments into smaller ones
B. Consolidating multiple items into a single unit or load
C. Removing packaging from products
D. Delaying shipment schedules
ANS: B
77.What is a key benefit of efficient packaging in logistics?
A. Increasing transportation costs
B. Reducing transportation costs
C. Reducing product protection
D. Delaying shipment schedules
ANS: B
78.What is the purpose of regular cycle counts in inventory management?
A. Increasing inventory levels
B. Ensuring accurate recording and tracking of inventory
C. Reducing warehouse space usage
D. Delaying shipment schedules
ANS: B
79.What does “freight consolidation” mean in logistics management
A. Separating shipments into smaller loads
B. Combining multiple shipments into a single larger shipment
C. Increasing transportation costs
D. Delaying shipments
ANS: B
80.Logistics is the term that encompasses:
A. Procurement of raw materials
B. Distribution of goods to customers
C. Accounting for raw materials in transit
D. All of the above
ANS: D
81.The objective of logistics is _____.
A. creating visibility
B. rapid response
C. consolidated movement
D. All of the above
ANS: D
82.DRP stands for _____.
A. Distribution Requirement Planning
B. Dividend Requirement Planning
C. Distribution Resource Planning
D. Distribution Reverse Planning
ANS: A
83.In inbound logistics, the interaction takes place between _____.
A. the supplier and company
B. supplier and consumer
C. supplier and retailer
D. company and retailer
ANS: A
84.What does the term “lead time” refer to in logistics?
A. The time it takes to manufacture a product
B. The time between placing an order and receiving it
C. The time a product spends in storage
D. The time it takes to unload a shipment
ANS: B
85.Which of the following is a primary objective of logistics management?
A. Maximizing production costs
B. Minimizing customer satisfaction
C. Optimizing transportation and storage of goods
D. Increasing lead times
ANS: C
86.The term ‘third-party logistics (3PL)’ refers to:
A. The internal logistics department of a company
B. The use of a third-party business to outsource elements of the
company’s distribution and fulfilment services
C. A logistics strategy involving three steps
D. None of the above
ANS: B
87.Which technology is commonly used for tracking shipments in logistics?
A. RFID (Radio Frequency Identification)
B. VPN (Virtual Private Network)
C. SQL (Structured Query Language)
D. HTML (Hypertext Markup Language)
ANS: A
88.Which factor is NOT typically considered when choosing a transportation
mode in logistics?
A. Cost
B. Speed
C. Weather conditions
D. Customer preferences
ANS: D
89.What does the term ‘incoterms’ refer to in international trade and logistics?
A. International standards for packaging
B. International terms of payment
C. International commercial terms
D. International trade regulations
ANS: C
90.In the logistics Industry, what does “FOB” stand for?
A. Freight on Board
B. Forward on Board
C. Free on Borad
D. Freight over Board
ANS:C
91.Logistics is the part of a supply chain involved with the forward and reverse
flow of _____.
A. Cash
B. Goods
C. Services
D. All of the above
ANS: D
92.Product substitute is a customer service in which phase?
A. Pre transaction phase
B. Post transaction phase
C. Transaction phase
D. None of these
ANS: C
93.Consignee is who _____.
A. Sends goods
B. Receives goods
C. Export goods
D. Imports good
ANS: B
94.IEC is issued by _____.
A. RBI
B. EXIM Bank
C. Chamber of Commerce
D. DGFT
ANS: D
95._____ is a ten digital figure issued to Exporters/Importers by the DGFT
A. RCMC
B. LC
C. GR
D. IEC
ANS: D
96.The term EGM refers to _____.
A. Export goods manifesto
B. Electronic goods manifesto
C. Expected goods manifesto
D. None of these
ANS: A
97.Bill of lading is issued by _____.
A. Customs Officer
B. Captain of the ship
C. Shipping Company
D. None of these
ANS: C
98.Cost of storage is a risk included in _____
A. Shipping
B. Warehousing
C. Post office
D. Transportation
ANS: D
99.Shipping trade is divided into two categories:
A. Export and Import
B. Liner trade and Tramp trade
C. Cargo and Passenger
D. All of these
ANS: B
100._____ includes the owner or the chartered who enters into a contract of
carriage with a shipper
A. Seller
B. Importer
C. Exporter
D. Carrier
ANS: D
101._____ is for controlling inventory in the distribution system. It is guided by
the customer demand.
A. MRP
B. DRP
C. AITS
D. VMI
ANS: B
102.The back bone of logistics is _____.
A. Warehouse
B. Inventory Management
C. Transportation
D. Distribution Channel
ANS: C
103.The scope of business logistics lies in overcoming _____ gap in moving
goods or raw materials.
A. Time and Space
B. Human resources
C. Transportation
D. Speed and Risk
ANS: A
104._____ is not a function of logistics management
A. Production function
B. Physical distribution function
C. Procurement function
D. Advertisement
ANS: D
105.Under the Freight Paid Bill of Lading, freight is collected from the _____.
A. Exporter
B. Tramp
C. Importer
D. Liner
ANS: A
106.A type of logistics costing:
A. Consumer costing
B. Employee costing
C. Activity costing
D. None of these
ANS: C
107.Moving goods from the producer to the distributor is called _____.
A. Downstream
B. Upstream
C. Horizontal stream
D. None of these
ANS: A
108.Which is a system wide management of entire logistics chain as single
entity?
A. Green logistics
B. Integrated
C. Logistics
D. EDI
ANS: A
109.The most visible element in the logistics operations is _____.
A. Warehousing
B. Inventory Management
C. Transportation
D. Third party Logistics
ANS: C
110._____ means integrating the economy of a country with global/World
Economy.
A. Privatization
B. Liberalization
C. Globalization
D. All of these
ANS: C
111.The permitted free days for the goods to be kept in port for shipment is
_____.
A. 12 days
B. 10 days
C. 7 days
D. 5 days
ANS: C
112.FedEX is an example for _____ company
A. 3rd Party Logistics
B. Marine cargo
C. Marketing
D. None of these
ANS: A
113.VMI reduces cost and time investment for the _____.
A. Consumers
B. Wholesalers
C. Manufacturers
D. Retailers
ANS: C
114.The EOQ is used to find out how much of the _____.
A. Losses in the inventory
B. Consumption of the inventory
C. Cost utilised
D. Inventory is to be ordered
ANS: D
115.The relation between quantity of material charged to production and
material in final product is _____.
A. EOQ
B. I-O ratio analysis
C. VED analysis
D. ABC analysis
ANS: B
116.Which technological advancement significantly transformed warehousing
practices in the 20th century?
A. Introduction of electric-powered forklifts
B. Implementation of automated storage systems
C. Use of conveyor belts for material movement
D. Introduction of barcoding and inventory software
ANS: D
117.Which warehouse technology has notably enhanced efficiency by
reducing manual labor and improving productivity?
A. Electric-powered forklifts
B. Manual conveyor systems
C. Automated storage and retrieval systems
D. Hand-operated pallet jacks
ANS: C
118.The rise of e-commerce has led warehouses to evolve into what type of
centers?
A. Regional storage facilities
B. Automated packaging hubs
C. Centralized distribution centers
D. Advanced fulfilment centers
ANS: D
119.In warehousing, what does the term ‘cold storage facilities’ typically refer
to?
A. Refrigerated storage for perishable goods
B. Safekeeping of electronic equipment
C. Areas dedicated to hazardous materials
D. Storage rooms for oversized items
ANS: A
120.What function primarily ensures the easy retrieval and efficient movement
of goods within the warehouse?
A. Order accumulation
B. Packing materials
C. Record-keeping
D. Proper placement in the store
ANS: D
121.Why are warehouses considered advantageous for the continuous supply
of seasonal commodities?
A. They enable consistent availability and distribution.
B. They reduce the cost of seasonal goods.
C. They help in centralized manufacturing.
D. They prevent spoilage of seasonal items.
ANS: A
122.What role do warehouses play in ensuring ‘convenient handling’ of
goods?
A. Implementing mechanical devices for lifting
B. Providing insurance for damaged goods
C. Reducing the variety of stored items
D. Using manual labor for lifting goods
ANS: A
123.What is the primary objective of having decentralized stores in large
factories with multiple departments?
A. Centralized control over materials
B. Enhanced security measures
C. Facilitated inter-departmental transfers
D. Reduced proximity to manufacturing units
ANS: C
124.Which function is primarily responsible for the ‘protection and
preservation’ of goods in a warehouse?
A. Identification and sorting
B. Storage of goods
C. Record-keeping
D. Receiving of materials
ANS: B
125.What is the main role of ‘record-keeping’ in warehouse management?
A. Ensuring accurate financial reporting
B. Issuing purchase requisitions
C. Tracking transportation routes
D. Identifying warehouse employees
ANS: A
126.Which equipment is used for lifting and moving pallets within a
warehouse, often manually or electric-powered?
A. Forklifts
B. Pallet jacks
C. Cranes and hoists
D. Conveyor systems
ANS: B
127.What is the recommended location strategy for expensive or commonly
used items in a store?
A. Distributed in multiple locations for redundancy
B. Kept away from user departments for security reasons
C. Maintained in the central store for accessibility
D. Positioned randomly for better utilization of space
ANS: C
128.What should be a store’s approach to future expansion and comfortable
working conditions?
A. Resistance to any changes in layout or facilities
B. Limited expansion potential for cost-cutting
C. Provision for future expansion and comfortable conditions
D. No consideration for worker comfort
ANS: C
129.Which warehouse operation area should have sufficient space for trucks
to unload goods?
A. Storage Systems
B. Receiving and Unloading Area
C. Order Picking and Packing Area
D. Workstation Design
ANS: B
130.What safety precautions should be taken for handling gas cylinders in a
store?
A. Storing them in humid or damp conditions
B. Keeping them in a horizontal position
C. Padded with coir and covered in separate folders
D. Storing near sources of heat
ANS: C
131.What is an essential requirement for effective bin cards in a store?
A. Tallying the bin card balance with the store’s ledger
B. Inaccurate entries for quick inventory checks
C. Frequent alterations without supporting documents
D. Limited documentation and recordkeeping
ANS: A
132.What aspect is critical for maintaining a well-organized store layout?
A. Restricting space to encourage careful handling
B. Lack of safety equipment and clear signage
C. Continuous improvement in warehouse operations
D. Sufficient space for emergency exits and firefighting equipment
ANS:C
133.What is the primary purpose of demand forecasting in inventory
management within a warehouse?
A. Tracking inventory movements
B. Determining optimal inventory levels
C. Real-time inventory visibility
D. Implementing automated systems
ANS: B
134.What method involves periodic physical counts of inventory to reconcile
actual stock levels with recorded levels?
A. ABC analysis
B. JIT categorization
C. FIFO counting
D. Cycle counting
ANS:
135.Which security measure involves implementing gates, fences, and locked
doors to limit access?
A. Surveillance systems
B. Perimeter security
C. Inventory tracking
D. Access control
ANS: D
136.What technology is used to monitor key areas of the warehouse using
strategically placed cameras?
A. Intrusion alarms
B. Surveillance systems
C. RFID technology
D. Barcode scanners
ANS: B
137.What technology uses radio waves to automatically identify and track
items without line-of-sight scanning?
A. Barcode technology
B. RFID technology
C. Warehouse Management Systems
D. Automated Storage and Retrieval Systems
ANS: B
138.What does a Warehouse Management System primarily help with?
A. Inventory control
B. Intrusion alarms
C. Employee screening
D. Supplier collaboration
ANS: A
139.Which measure in warehouse security involves regular physical counts to
reconcile stock levels?
A. Inventory tracking
B. Access control
C. Cycle counting
D. RFID technology
AND: C
140.What type of conveyor system uses a continuous belt to carry items?
A. Roller conveyors
B. Belt conveyors
C. Chain conveyors
D. Screw conveyors
ANS: B
141.Which system provides insights into warehouse operations through real
time reporting and analytics?
A. Warehouse Management Systems
B. AS/RS systems
C. Conveyor systems
D. Voice-directed picking systems
ANS: A
142.What equipment is used for moving items horizontally, vertically, or at an
incline in a warehouse?
A. Forklifts
B. Cranes and hoists
C. Pallet jacks
D. Automated Guided Vehicles (AGVs)
ANS: A
143.Which technology uses radio waves for automatic identification and
tracking without line-of-sight scanning?
A. Barcode technology
B. RFID technology
C. Conveyor systems
D. AS/RS systems
ANS: B
144.What measure in warehouse security involves monitoring access to
restricted areas?
A. Surveillance systems
B. Access control
C. Intrusion alarms
D. Inventory tracking
ANS: B
145.Which of the following is NOT a key aspect of warehouse management?
A. Receiving and inspection
B. Inventory management
C. Air travel scheduling
D. Order fulfilment
ANS: C
146.Which process involves verifying the accuracy and condition of incoming
shipments in warehouse management?
A. Order fulfilment
B. Receiving and inspection
C. Inventory management
D. Shipping
ANS: B
147.What is the purpose of regular cycle counts in inventory management?
A. Increasing inventory levels
B. Ensuring accurate recording and tracking of inventory
C. Reducing warehouse space usage
D. Delaying shipment schedules
ANS: B
148.Which of the following can be termed as corrective action of controlling
inventories in warehouse ?
A. Reduction of procurement lead time
B. Expeditious paper work
C. Monitoring stock level
D. Proper material planning and control
ANS: C
149.Receiving a required inventory item at the exact time needed:
A. ABC
B. JIT
C. FOB
D. PERT
ANS: B
150.EOQ is the order quantity that _____ over our planning horizon.
A. Minimizes total ordering costs
B. Minimizes total carrying costs
C. Minimizes total inventory costs
D. The required safety stock
ANS: B
151.Advantages of integrated materials management system ensures better
_____.
A. Accountability
B. Co-ordination
C. Performance
D. All the three parameters
ANS: D
152.What is the primary goal of warehouse management?
A. Maximizing warehouse space
B. Reducing labor costs
C. Ensuring timely order fulfillment
D. Minimizing inventory levels
ANS:C
153.What does the process of receiving in warehouse management involve?
A. Packing and shipping orders
B. Organizing products in the warehouse
C. Accepting and inspecting incoming shipments
D. Managing inventory levels
ANS: C
154.Which component of warehouse management involves retrieving
products from storage to fulfill customer orders?
A. Receiving
B. Inventory management
C. Order picking
D. Packing and shipping
ANS: C
155.Why is accurate inventory management important in warehouse
management?
A. To optimize warehouse space
B. To reduce labor costs
C. To prevent stock outs and overstock situations
D. To improve order picking efficiency
ANS: C
156.How does a warehouse management system contribute to warehouse
operators?
A. It optimizes warehouse space
B. It reduces labor costs
C. It streamlines processes and improves efficiency
D. It tracks inventory using barcode scanners
ANS: C
157.Which of the following can be substitute for warehousing?
A. Inventory
B. Transportation
C. Online sales
D. Fulfillment Centre
ANS: B
158._____ refers to separating products in to grade and qualities desired by
differeft target markets.
A. Assorting
B. Allocating
C. Sorting out
D. Accumulating
ANS: C
159.Which of the following is not a characteristics of a public warehousing?
A. Requires no capital investment from user
B. Users have a fairly exact determination of their warehousing costs
C. Goods for companies dealing with large volumes of inventory
D. Lack of control by user
ANS: C
160. _____ refers to the short distance movement that usually takes place
within the confines of a building such as a plant.
A. Physical distribution
B. Warehousing
C. Material management
D. Materials handling
ANS: B
161.What does EOQ stands for?
A. Economic Order Quantity
B. Economic Order Quality
C. Efficient Order Quantity
D. None of these
ANS: A
162.The primary factor that distinguishes a distribution center from a
warehouse is:
A. Distribution centers tend to be multistory building
B. Distribution centers stress storage
C. Distribution centers stress rapid movement of products though the
facility
D. Distribution centers tend to be smaller than warehouses
ANS: C
163.Warehouses emphasize _____ and their primary purpose is to maximize
_____.
A. product storage; throughput
B. product storage; usage of available storage space
C. rapid movement of product; throughput
D. rapid movement of product; usage of available storage space
ANS: B
164.All are characteristics of private warehousing, except:
A. Owned or occupied on a long term lease by the firm using them
B. Feasible when demand patterns are irregular
C. May reduce an organizations flexibility
D. Users have a great deal of control
ANS: B
165.One of the best pieces of advice with respect to the design of
warehousing facilities is to _____.
A. avoid consultants
B. build up rather than out
C. use common sense
D. maximize space utilization
ANS: C
166.The primary advantage of variable slot location in a warehouse is _____.
A. increased space utilization
B. better materials handling
C. ease of record keeping
D. more logical and simple product layout
ANS: A
167.Which of the following is not a benefit associated with paperless
warehousing?
A. Low cost
B. Reduced clerical work
C. Decreased picking and shipping errors
D. Improved order picking efficiency
ANS: A
168.Which of the following is not a trade off in warehousing design?
A. Two–dock versus single dock layout
B. Build up versus build out
C. Order picking versus order taking functions
D. Space devoted to aisles versus space devoted to storage
ANS: C
169.It is possible for paperless warehousing facilities to have payback periods
of approximately _____ months.
A. 6
B. 12
C. 18
D. 24
ANS: C
170.What is the main purpose of information management in logistics
management?
A. Reducing transportation cos
B. Optimizing supply chain management
C. Forecasting demand for products
D. Tracking and monitoring the movement of goods
ANS: D
171.Procurement methods have considerable impact on _____.
A. product pricing
B. inventory level
C. warehouse space
D. transport modes
ANS: B
172.In a Bar Code system, identify the odd one.
A. Scanner
B. Label
C. Printer
D. Reader
ANS: D
173.Warehouses in a few strategic locations to serve the entire market over a
large geographical area is _____.
A. Centralized warehousing
B. Hub warehousing
C. Decentralized warehousing
D. All of these
ANS: B
174.The wood or plastic base used in warehouse transactions is _____.
A. Pallet
B. Container
C. Carton
D. All of these
ANS: A
175.The technology that uses radio waves to identify people and objects
automatically is _____.
A. BCS
B. GPS
C. RFID
D. GIS
ANS: C
176.Transit inventory is also called _____
A. Safety stocks
B. Pipe line inventory
C. EOQ
D. All of these
ANS : B
177.What technique do you use in a warehouse to enable quick, accurate
data entry?
A. Bar coding
B. Pallet stacking
C. Tracking
D. Containerization
ANS: A
178._____ is similar to a mechanized tow tractor with a trailer or rider pallet
truck, but in there no driver.
A. Automated Guided Vehicle System
B. Tow lines
C. Stacker cranes
D. Pneumatic Tube systems
ANS: A
179.The time difference between a business ordering and receiving stock is
called the _____.
A. Recorder quantity
B. Lead time
C. Buffer stock
D. Recorder level
ANS: B
180.SPC stands for _____.
A. Standard process control
B. Statistical performance control
C. Standard production control
D. Statistical production control
ANS: C
181._____ refers to the distance to and from a delivery zone.
A. Drop distance
B. Stem distance
C. Petal distance
D. None of these
ANS: C
182.A bid advantages of process layout is _____.
A. It is flexibility
B. It low cost
C. The ability to employee low skill
D. It is a high equipment utilization
ANS: D
183.A warehouse manager has to keep the proper updates of the _____.
A. Stock
B. Finance
C. Marketing
D. None of these
ANS: A
184._____ is one of the oldest classical production scheduling models.
A. ERP
B. EOQ
C. EPM
D. BPR
ANS: B
185.The packaging that is used to deliver goods from producer to consumer is
_____.
A. Consumer packaging
B. Industrial packaging
C. Supplier packaging
D. Packaging
ANS: B
186._____ is a function of re-arranging & repacking as per individual orders.
A. Break – Bulk
B. Warehousing
C. Cross Docking
D. Sorting
ANS: C
187.Break – Bulk warehouse performs _____ function.
A. Warehousing
B. Collecting
C. Sorting
D. Supply
ANS: C
188.The re-order level depends upon two factors: lead time and _____.
A. Inventory
B. Warehouse
C. Procurement
D. Safety stock
ANS: D
189.EOQ is that order quantity, which results in _____ total inventory cost.
A. Maximum
B. Minimum
C. Carrying
D. Average
ANS: B
190._____ can be used to move carton loads or pallet loads horizontally or
vertically.
A. Conveyors belts
B. Cranes
C. Elevators
D. Forklift trucks
ANS: D
191._____ analysis, parameters for inventory classification is the unit price of
material.
A. ABC
B. EOQ
C. HML
D. GOLF
ANS: C
192.The replenishment inventory is also called _____.
A. Order quantity
B. Disarrangement
C. Average
D. Cycle
ANS: A
193._____ is also called a base stock.
A. Transit inventory
B. Average inventory
C. Cycle inventory
D. Safety stock inventory
ANS: C
194.Which warehouse management component involves retrieving products
from storage to fulfill customer orders?
A. Receiving
B. Inventory management
C. Order Picking
D. Packing and Shipping
ANS: C
195.What technology is commonly used in warehouse management to track
and manage inventory levels?
A. WMS (Warehouse management system)
B. management system) Barcode Scanners
C. Artificial intelligence (AI)
D. Virtual Reality (VR)
ANS: A
196.What is the primary goal of procurement management in an organization?
A. To minimize all expenses
B. To establish long-term relationships with vendors
C. To acquire goods and services at the best possible cost, quality, and
time
D. To reduce employee workload
ANS: C
197.Which of the following is a key component of the procurement
management process?
A. Inventory turnover analysis
B. Supplier selection and evaluation
C. Customer satisfaction surveys
D. Production scheduling
ANS: B
198.What is the first step in the procurement management process?
A. Contract negotiation
B. Purchase requisition
C. Supplier performance review
D. Payment processing
ANS: B
199.Which document serves as an official request to suppliers to submit bids
for a specific product or service?
A. Invoice
B. Request for Proposal (RFP)
C. Purchase Order (PO)
D. Receipt
ANS: B
200.What is the purpose of a Purchase Order (PO) in procurement
management?
A. To establish a contract with the supplier
B. To request bids from multiple suppliers
C. To formally authorize a purchase and detail the order terms
D. To provide payment to the supplier
ANS: C
201.Which procurement method involves selecting a supplier based on pre
set criteria rather than the lowest price?
A. Competitive bidding
B. Direct purchasing
C. Best-value procurement
D. Open tender
ANS:C
202.In procurement management, what is the purpose of contract
administration?
A. To evaluate vendor bids
B. To oversee and ensure suppliers fulfill their contract terms
C. To issue new purchase orders
D. To return goods to suppliers
ANS: B
203.Which of the following is an important metric for assessing supplier
performance in procurement?
A. Number of products returned
B. Lead time and delivery reliability
C. The supplier’s market reputation
D. Inventory levels
ANS: B
204.What is the first step in the procurement process?
A. Contract negotiation
B. Purchase order creation
C. Requirement identification
D. Supplier evaluation
ANS: C
205.Which of the following documents is used to invite suppliers to submit
proposals for specific products or services?
A. Purchase Order (PO)
B. Request for Proposal (RFP)
C. Invoice
D. Statement of Work (SOW)
ANS: B
206.Which process involves comparing supplier bids to select the best
supplier for a procurement requirement?
A. Invoice processing
B. Contract signing
C. Bid evaluation
D. Inventory assessment
ANS: C
207.In the procurement process, which document is sent to the supplier to
officially confirm an order and terms?
A. Request for Information (RFI)
B. Purchase Requisition
C. Purchase Order (PO)
D. Delivery Note
ANS: c
208.What is the purpose of supplier evaluation in the procurement process?
A. To directly pay the supplier
B. To identify the best suppliers based on quality, cost, and reliability
C. To negotiate contracts with competitors
D. To set inventory levels
ANS: B
209.Which procurement process involves ensuring that suppliers meet the
agreed-upon terms and deliver on time?
A. Contract administration
B. Bid solicitation
C. Payment processing
D. Market research
ANS: A
210.What is the main purpose of vendor selection in the procurement
process?
A. To increase internal inventory
B. To ensure that the most suitable vendor is chosen based on quality,
price, and reliability
C. To develop new products with the vendor
D. To reduce employee workload
ANS: B
211.Which document is often used to gather information about potential
vendors before the selection process?
A. Purchase Order (PO)
B. Request for Proposal (RFP)
C. Request for Information (RFI)
D. Statement of Work (SOW)
ANS: C
212.What is a primary factor in evaluating a vendor’s proposal during the
selection process?
A. The vendor’s geographical location only
B. The vendor’s past performance, quality of goods/services , and pricing
C. The brand name of the vendor
D. The vendor’s advertising reach
ANS: B
213.Which of the following tools is commonly used to compare and evaluate
multiple vendors on different criteria?
A. Profit and Loss Statement
B. Bid Tabulation Matrix
C. Inventory Control Sheet
D. Financial Audit Report
ANS: B
214.In the vendor selection process, what is a common method for assessing
a vendor’s reliability and reputation?
A. Reviewing the vendor’s social media profiles
B. Asking the vendor’s competitors for opinions
C. Conducting a supplier audit and checking references
D. Surveying the vendor’s past clients
ANS: C
215.Which of the following is an important qualification criterion for vendor
selection?
A. The vendor’s price alone
B. The vendor’s logo design
C. The vendor’s financial stability, quality of product/service, and delivery
capabilities
D. The vendor’s choice of advertising channels
ANS: C
216.What is a primary objective of aligning inventory management with
procurement?
A. To increase production speed
B. To reduce workforce requirements
C. To minimize stockouts while avoiding overstock
D. To increase the variety of products in inventory
ANS: C
217.Which inventory management approach involves ordering stock only
when it’s needed to fulfill customer orders?
A. Just-in-Time (JIT)
B. Economic Order Quantity (EOQ)
C. Reorder Point System
D. Vendor-Managed Inventory (VMI)
ANS: A
218.What is the goal of setting safety stock levels in inventory management?
A. To ensure there is enough stock to handle unexpected demand
fluctuations
B. To eliminate the need for procurement planning
C. To reduce inventory carrying costs to zero
D. To increase the number of suppliers
ANS: A
219.In procurement, aligning inventory levels with demand forecasts helps an
organization to:
A. Increase inventory storage costs
B. Minimize the risk of stockouts and overstock situations
C. Negotiate higher prices with suppliers
D. Reduce product variety
ANS: B
220.Which of the following tools is commonly used to determine optimal
inventory levels for procurement planning?
A. Profit and Loss Analysis
B. Public Relations Surveys
C. Brand Analysis
D. Demand Forecasting Models
ANS: D
221.How does procurement help in reducing inventory carrying costs?
A. By increasing order quantities
B. By selecting suppliers who offer bulk discounts
C. By optimizing order schedules to align with production needs and
reduce excess stock
D. By ordering all inventory at the beginning of the fiscal year
ANS: C
222.What is a primary benefit of global procurement for organizations?
A. Increased inventory levels
B. Access to a wider range of suppliers and competitive pricing
C. Reduced communication with suppliers
D. Simplified regulatory compliance
ANS: B
223.Which of the following is a common challenge in global procurement
management?
A. High local competition
B. Currency fluctuations and exchange rate risks
C. Increased product variety
D. Simplified logistics and transportation
ANS: B
224.Which of the following terms refers to the cost added to a product’s price
due to customs duties, taxes, and shipping in global procurement?
A. Gross margin
B. Freight cost
C. Overhead
D. Landed cost
ANS: D
225.What is the purpose of Incoterms in global procurement?
A. To set quality standards for suppliers
B. To establish pricing guidelines
C. To regulate the environmental impact of products
D. To define responsibilities s of buyers and sellers in international
shipping
ANS: D
226.In global procurement, which strategy is used to mitigate risks associated
with foreign exchange rates?
A. Inventory management
B. Demand forecasting
C. Currency hedging
D. Cost reduction analysis
ANS: C
227.Which of the following is a critical factor when selecting global suppliers?
A. Their ability to negotiate lower prices
B. Their compliance with local and international regulations
C. Their ability to produce locally
D. Their marketing strategy
ANS: B
228.Which of the following is a key advantage of rail transport in logistics?
A. Flexibility in routes
B. Lower cost for long-distance bulk transport
C. Faster transit times compared to air transport
D. Ability to deliver to remote rural areas
ANS: B
229.Which of the following modes of transport is best suited for delivering
perishable goods over short distances?
A. Rail transport
B. Air transport
C. Road transport
D. Pipeline transport
ANS: C
230.What does “last mile delivery” refer to in logistics?
A. The transportation of goods from the main distribution center to the final
destination
B. The initial shipping phase from manufacturer to warehouse
C. The long-distance shipping phase from country to country
D. The phase of delivery by rail to a rural location
ANS: A
231.In cargo logistics, what does the term “intermodal transport” mean?
A. Transporting goods using only rail
B. Transporting goods using multiple modes (e.g., rail, road, sea) without
handling the cargo itself
C. Transporting goods using the same mode repeatedly
D. Transporting goods with a single mode for the entire journey
ANS: B
232.Which document is typically required for international cargo shipments to
ensure goods are properly documented and inspected?
A. Invoice
B. Packing List
C. Bill of Landing
D. Receipt
ANS: C
233.Which of the following is considered an advantage of air transport for
logistics?
A. Lower costs for high-volume shipments
B. High speed, ideal for urgent deliveries
C. High capacity for heavy goods
D. Flexibility in delivery to remote locations
ANS: B
234.In cargo logistics, which term is used for the time taken to transport goods
from one location to another?
A. Route time
B. Dwell time
C. Lead time
D. Idle time
ANS: C
235.Which of the following is a primary role of a logistics service provider in
cargo transportation?
A. Manufacturing products
B. Managing and coordinating the movement of goods across various
transport modes
C. Developing software for transportation
D. Inspecting products for quality control
ANS: B
236.What is a key advantage of road transport over rail transport in logistics?
A. Greater load capacity for bulk items
B. Reduced environmental impact
C. Flexibility to access remote or urban areas directly
D. Faster transport over long distances
ANS: C
237.Which term describes the process of combining multiple small shipments
into a single, larger shipment?
A. Cross-docking
B. Consolidation
C. Freight forwarding
D. Last-mile delivery
ANS: B
238.What is the primary purpose of a distribution center in cargo logistics?
A. To manufacture goods
B. To hold products until final dispatch to customers or retail locations
C. To package goods for export
D. To perform maintenance on transport vehicles
ANS: B
239.Which of the following documents is essential for shipping goods by air?
A. Bill of Landing
B. Air Waybill
C. Delivery Order
D. Packing Slip
ANS: B
240.In air cargo, what does the term “freight forwarder” refer to?
A. A company that manufactures cargo containers
B. The organization responsible for inspecting cargo
C. A specialized airline for transporting passengers
D. An agent who arranges the transport of goods and manages logistics on
behalf of shippers
ANS: D
241.Which organization regulates international air cargo operations?
A. World Trade Organization (WTO)
B. International Air Transport Association (IATA)
C. Federal Aviation Administration (FAA)
D. United Nations (UN)
ANS: B
242.What is “dimensional weight” in air cargo?
A. The actual weight of the cargo
B. The volume-based weight used to calculate shipping costs for bulky but
light items
C. The combined weight of all items in a shipment
D. The maximum allowable weight per shipment
ANS: B
243.Which type of cargo is commonly restricted or requires special handling in
air transport?
A. General cargo
B. Hazardous materials (dangerous goods)
C. Consumer goods
D. Office supplies
ANS: B
244.What is the main purpose of customs clearance in air cargo transport?
A. To reduce the cost of shipping
B. To verify and approve the import/export legality of goods across borders
C. To inspect packaging quality
D. To check the weight of the cargo
ANS: B
245.Which of the following factors can significantly affect air cargo costs?
A. Fuel prices and dimensional weight
B. The cargo owner’s business location
C. Type of airline logo
D. Warehouse design
ANS: A
246.Which of the following features is essential in an effective Air Cargo
Management System?
A. Passenger seating arrangements
B. Real-time cargo tracking and inventory management
C. Entertainment options for travelers
D. Customer loyalty program management
ANS: B
247.What does “ULD” stand for in air cargo management?
A. Ultimate Load Device
B. Unit Load Device
C. Unified Logistics Dashboard
D. Universal Logistics Device
ANS: B
248.Which technology is often integrated into Air Cargo Management
Systems to monitor temperature-sensitive shipments?
A. GPS navigation
B. Blockchain
C. IoT (Internet of Things) sensors
D. Machine learning
ANS: C
249.In an Air Cargo Management System, which module is responsible for
handling customs documentation and compliance?
A. Customer Service module
B. Financial Reporting
C. Compliance Management module
D. Inventory Control module
ANS: C
250.Which technology is often used in Air Cargo Management Systems to
enhance security and transparency in tracking shipments?
A. Virtual Reality
B. Blockchain
C. Augmented Reality
D. Social Media
ANS: B
251.What role does customs clearance play in shipment planning for air
cargo?
A. It provides packing instructions for cargo
B. It ensures legal compliance for goods entering or leaving a country
C. It calculates the weight of the cargo
D. It improves the in-flight entertainment options
ANS: B
252.Which of the following is a common consideration when planning the
loading of cargo onto an aircraft?
A. The arrangement of passenger seats
B. Weight distribution to maintain aircraft balance
C. In-flight meal options
D. Availability of Wi-Fi
ANS: B
253.What is the purpose of route optimization in shipment planning?
A. To reduce costs and transit time by selecting the best path for delivery
B. To minimize cargo weight
C. To improve passenger comfort
D. To increase the size of cargo packages
ANS: A
254.Which factor is most crucial when determining the flight schedule for air
cargo shipment?
A. The passenger capacity of the flight
B. The cargo volume and delivery deadlines
C. The number of crew members on the flight
D. The fuel cost
ANS: B
255.What is one of the main challenges in handling air freight shipments?
A. Longer transit times
B. Higher costs compared to ground shipping
C. Coordination of multiple carriers
D. Handling bulky items
ANS: C
256.What is the primary reason for using Unit Load Devices (ULDs) in air
freight?
A. To enhance in-flight entertainment
B. To optimize cargo loading and ensure safety during transport
C. To increase the size of individual packages
D. To allow for passenger luggage storage
ANS: B
257.Which of the following best describes “air freight charges”?
A. Fixed costs that do not vary with the weight of the cargo
B. Fees based on the actual weight or dimensional weight of the shipment
C. Costs associated with passenger tickets
D. Charges only for international shipments
ANS: B
258.Containerization in operating systems has evolved over time and has
been widely adopted for its benefits such as _____.
A. Portability
B. Isolation
C. Scalability
D. All of the above
ANS: D
259.Barge is used for _____.
A. River transport / Inland waterways
B. Ocean transport
C. Road Transport
D. Rail Transport
ANS: A
260.You have a shipment of heavy and bulky, semifinished cargo. Which of
the following container you will use?
A. Tank container
B. Flat rack container
C. General purpose container
D. 20’ High cube container
ANS: B
261._____ are designated areas within the terminal where containers are
stored before and after transportation.
A. Warehouse
B. Berth
C. Container Yards
D. None of the above
ANS: C
262._____ is a surcharge or discount applied to compensate fluctuations in
fuel price.
A. CAF
B. BAF
C. PSS
D. BUC
ANS: B
263.Insulated container are also known as _____.
A. Standard container
B. Tunnel containers
C. General cargo container
D. Thermal container
ANS: D
264.Which class of dangerous goods includes explosives?
A. Class 1
B. Class 2
C. Class 3
D. Class 4
ANS: A
265.What is the primary hazard of Class 3 dangerous goods?
A. Explosives
B. Flammable liquids
C. Gases
D. Corrosive substances
ANS: B
266.Which regulatory body provides guidelines for the transportation of dangerous
goods by air?
A. IMO
B. IATA
C. DOT
D. ADR
ANS: B
267.What is the purpose of the Proper Shipping Name (PSN) in the context of
dangerous goods?
A. To provide a marketing name
B. To standardize the description of hazardous materials
C. To label consumer products
D. To code nonhazardous goods
ANS: B
268.UN Numbers are used to _____.
A. Identify the manufacturer of dangerous goods
B. Provide a standardized identification for hazardous substances
C. Determine the cost of shipment
D. Label nondangerous goods
ANS: B
269.Which class of dangerous goods includes radioactive materials?
A. Class 4
B. Class 5
C. Class 7
D. Class 8
ANS: C
270.Class 2 dangerous goods are categorized as _____.
A. Flammable liquids
B. Explosives
C. Gases
D. Corrosive substances
ANS: C
271.Class 5 dangerous goods include _____.
A. Flammable liquids
B. Toxic substances
C. Oxidizing substances and organic peroxides
D. Radioactive materials
ANS: C
272.Which class of dangerous goods includes substances that are toxic and infectious?
A. Class 6
B. Class 7
C. Class 8
D. Class 9
ANS: A
273.What is the primary hazard associated with Class 8 dangerous goods?
A. Corrosive substances
B. Flammable solids
C. Gases
D. Explosives
ANS: A
274.Penalties for non-compliance with dangerous goods regulations can include _____.
A. Fines and imprisonment
B. Awards and recognition
C. Bonuses and promotions
D. Exemptions and waivers
ANS: A
275.Which division of Class 1 dangerous goods includes substances with a mass
explosion hazard?
A. Division 1.1
B. Division 1.2
C. Division 1.3
D. Division 1.4
ANS: A
276.Class 4 dangerous goods include _____.
A. Oxidizing substances
B. Flammable solids
C. Gases
D. Corrosive substances
ANS: B
277.What is the function of the Emergency Response Guidebook (ERG)?
A. To provide marketing strategies
B. To guide emergency response for hazardous materials incidents
C. To manage supply chain logistics
D. To document financial transactions
ANS: B
278.Which organization is responsible for the IMDG Code?
A. IATA
B. IMO
C. DOT
D. DGCA
ANS: B
279.Class 9 dangerous goods include _____.
A. Flammable liquids
B. Miscellaneous dangerous goods
C. Explosives
D. Toxic substances
ANS: B
280.The RID regulations concern the carriage of dangerous goods by _____.
A. Air
B. Sea
C. Road
D. Rail
ANS: D
281.Class 6.2 dangerous goods includes _____.
A. Infectious substances
B. Corrosive substances
C. Flammable gases
D. Radioactive materials
ANS: A
282.Which regulatory body oversees civil aviation and dangerous goods transportation
in various countries?
A. IMO
B. IATA
C. DGCA
D. RID
ANS: C
283.Division 2.1 of Class 2 dangerous goods includes _____.
A. Flammable liquids
B. Non-flammable gases
C. Flammable gases
D. Toxic gases
ANS: C
284.Class 5.2 dangerous goods include _____.
A. Oxidizing substances
B. Organic peroxides
C. Flammable solids
D. Explosives
ANS: B
285.Which document accompanies dangerous goods during air transport to detail their
nature and handling?
A. Packing List
B. Air Waybill (AWB)
C. Invoice
D. Purchase Order
ANS: B
286.Class 1.4 explosives are defined by _____.
A. A mass explosion hazard
B. No significant hazard
C. A projection hazard
D. A minor blast hazard
ANS: B
287.What should be done when there is a spill of dangerous goods?
A. Ignore it
B. Contain and control the spill
C. Leave it for the next shift
D. Clean it with water immediately
ANS: B
288.Class 4.2 dangerous goods include _____.
A. Spontaneously combustible materials
B. Corrosive substances
C. Radioactive materials
D. Oxidizing substances
ANS: A
289.The Multimodal Dangerous Goods Form is used for _____.
A. Maritime transport only
B. Air transport only
C. Road transport only
D. Multiple transport modes
ANS: D
290.Division 6.1 of Class 6 dangerous goods includes _____.
A. Infectious substances
B. Toxic substances
C. Radioactive materials
D. Flammable gases
ANS: B
291.Which class includes substances that emit radiation?
A. Class 6
B. Class 7
C. Class 8
D. Class 9
ANS: B
292.Class 2.2 dangerous goods are _____.
A. Flammable gases
B. Non-flammable non-toxic gases
C. Toxic gases
D. Radioactive gases
ANS: B
293.What does the placard on a vehicle transporting dangerous goods indicate?
A. Destination
B. Nature of the dangerous goods
C. Driver details
D. Vehicle weight
ANS: B
294.Class 9 dangerous goods also include _____.
A. Corrosive substances
B. Miscellaneous dangerous substances
C. Explosives
D. Toxic substances
ANS: B
295.Class 3 dangerous goods are characterized by their _____.
A. Radioactivity
B. Flammability
C. Corrosiveness
D. Toxicity
ANS: B
296.Which of the following is a Class 4.3 dangerous good?
A. Substances that emit flammable gases when in contact with water
B. Toxic gases
C. Flammable solids
D. Radioactive materials
ANS: A
297.The Globally Harmonized System (GHS) is used for _____.
A. Standardizing shipping costs
B. Classifying and labeling chemicals
C. Identifying shipping routes
D. Marketing dangerous goods
ANS: B
298.Class 8 dangerous goods primarily cause damage to _____.
A. Metal
B. Living tissue
C. Plastic
D. Glass
ANS: B
299.The main hazard associated with Class 2.3 dangerous goods is _____.
A. Toxicity
B. Flammability
C. Corrosiveness
D. Explosiveness
ANS: A
300.Which class of dangerous goods is subdivided into divisions based on their specific
risks?
A. Class 1
B. Class 2
C. Class 3
D. Class 8
ANS: A
301.For a substance to be classified as a Class 4.1 dangerous good it must be _____.
A. A flammable liquid
B. A flammable solid
C. A toxic gas
D. A corrosive liquid
ANS: B
302. What does SCM stand for in the context of business operations?
A. Sales and Customer Management
B. Supplier Coordination Mechanism
C. Supply Chain Management
D. Service Capacity Management
ANS: C
303.Which performance metric measures the number of times inventory is sold or used
in a specific period?
A. Inventory Turnover Ratio
B. Fill Rate
C. Order Cycle Time
D. Carrying Cost of Inventory
ANS: A
304.What component of SCM involves converting raw materials into finished products?
A. Procurement
B. Production
C. Logistics
D. Distribution
ANS: B
305.What is a significant challenge faced by supply chain management in the modern
landscape?
A. Decreasing complexity of global supply chains
B. Reduced importance of sustainability and ethical practices
C. Absence of e-commerce and omni-channel distribution
D. Integration of emerging technologies
ANS: D
306.What technique aims to strike the balance between carrying costs and stockouts?
A. EOQ
B. JIT
C. ABC Analysis
D. RFID
ANS: A
307.Which method of demand forecasting involves customer surveys and market
research?
A. Time Series Analysis
B. Regression Analysis
C. Collaborative Forecasting
D. Market Intelligence
ANS: D
308.What is the primary purpose of Demand Planning and Forecasting in SCM?
A. To estimate future demand for products/services
B. To minimize supplier relationships
C. To reduce inventory levels
D. To optimize production costs
ANS: A
309.Which metric measures the percentage of customer orders that are fulfilled on
time?
A. Inventory Turnover Ratio
B. Fill Rate
C. Order Cycle Time
D. Carrying Cost of Inventory
ANS: B
310.What does ABC analysis classify inventory items Demand based on?
A. Demand variability
B. Monetary value
C. Future demand patterns
D. Supplier relationships
ANS: B
311.What is the primary objective of EDI in supply chain operations?
A. Standardizing data formats
B. Encouraging manual processes
C. Limiting information exchange
D. Facilitating data silos
ANS: A
312.What aspect of supplier management involves ongoing communication,
performance monitoring, and fostering trust and transparency?
A. Supplier development
B. Supplier segmentation
C. Supplier relationship management
D. Contract negotiation
ANS: C
313.What does strategic sourcing involve in procurement and supplier management?
A. Assessing supplier performance
B. Continuous improvement initiatives
C. Identifying and supplier
D. Managing suppliers relationships
ANS: C
314.What does WIP inventory refer to in the supply chain?
A. Final, completed products ready for sale
B. Goods in transit from one location to another
C. Raw materials awaiting production
D. Goods in the
E. process of being manufactured but not yet completed
ANS: D
315.Continuous improvement initiatives in supplier management aim to _____.
A. Maintain the status quo
B. Collaboration and value creation
C. Ignore supplier feedback
D. Minimize supplier performance
ANS: B
316.What does the Economic Order Quantity (EOQ) aim to minimize?
A. Total holding costs
B. Lead time variability
C. Total annual demand
D. Administrative expenses
ANS: A
317.Lean inventory principles aim to eliminate _____.
A. Value-added activities
B. Continuous flow
C. Overproduction
D. High inventory levels
ANS: C
318.What function does EDI standardization serve in supply chain operations?
A. Enabling data silos
B. Encouraging manual data entry
C. Facilitating standardized electronic communication
D. Limiting data accuracy
ANS: C
319.What does ERP offer in terms of human resource management?
A. Time and attendance tracking
B. Supplier qualification
C. Financial stability assessment
D. Supplier contract development
ANS: A
320.ABC analysis suggests that approximately what percentage of items account for a
large portion of the total value or impact?
A. 10%
B. 20%
C. 50%
D. 80%
ANS:D
321.What does Just-in-Time (JIT) emphasize in production and inventory management?
A. Overproduction
B. Continuous flow
C. Excess inventory
D. High work-in-progress inventory
ANS: B
322.What does the term “TIMWOODS” represent in Lean methodology?
A. Categories of process improvement tools
B. Eight types of supply chain waste
C. Steps in the value stream mapping process
D. Principles of data-driven decision making
ANS: B
323.What function do supply chain integration and collaboration platforms primarily
serve?
A. Eliminating communication entirely among stakeholders
B. Facilitating data silos and manual data entry errors
C. Enabling seamless communication and information sharing
D. Creating operational inefficiencies within supply chains
ANS: C
324.What role does root cause analysis play in supplier performance evaluation?
A. To celebrate successes
B. To identify underlying issues
C. To reward suppliers
D. To ignore performance issues
ANS: B
325.Which step in supplier management focuses on assessing supplier financial
stability, compliance, and capacity?
A. Contract negotiation
B. Supplier evaluation and selection
C. Supplier development
D. Risk management
ANS: B
326.Supplier scorecards or performance dashboards provide _____.
A. A platform for isolation
B. A visual representation of supplier feedback
C. Transparent communication channels
D. A way to compare supplier performance
ANS: D
327.What aspect does RFID technology significantly improve within a warehouse
setting?
A. Employee management
B. Picking and sorting efficiency
C. Financial reporting
D. Supplier evaluation
ANS: B
328.What purpose does RFID technology serve in inventory management?
A. Enhancing financial management
B. Providing real-time tracking
C. Streamlining supplier collaboration
D. Limiting inventory visibility
ANS: B
329.Time for which the assets are kept idle against the time they get utilized in the
supply chain is _____.
A. Scheduling of production
B. Activity of logistics postponement
C. Reducing cash conversion cost
D. Dwell time minimization
ANS: D
330.True or False? The forecast should work constantly and also be reliable.
A. TRUE
B. FALSE
ANS: A
331.The concerned effort of two or more supply chain partners to gain competitive
advantage is _____.
A. Co-operation
B. Partnership
C. Collaboration
D. Affiliation
ANS: C
332.Logistics is the part of Supply chain involved with the forward and reserve flow of
_____.
A. Goods
B. Services
C. Cash
D. All of the above
ANS: D
333.Positive, long-term relationships between supply chain participants refers to _____.
A. Co-operation
B. Tailor Logistics
C. Partnership
D. Supply chain management
ANS: D
334.The purpose of supply chain management is to _____.
A. provide customer satisfaction
B. improve quality of a product
C. integrating supply and demand management
D. All of the above
ANS: D
335.Supply Chain consist of the following:
A. Distribution
B. Warehousing
C. Procurement
D. All of the above
ANS: D
336.In a supply chain, material flows in one direction, while _____ flows from both the
directions.
A. Process
B. Information
C. Product
D. semi-finished goods
ANS: B
337.What does SCM stand for in the context of business operations?
A. Sales and Customer Management
B. Supplier Coordination Mechanism
C. Supply Chain Management
D. Service Capacity Management
ANS: C
338.Which performance metric measures the number of times inventory is sold or used in
a specific period?
A. Inventory Turnover Ratio
B. Fill Rate
C. Order Cycle Time
D. Carrying Cost of Inventory
ANS: A
339.What component of SCM involves converting raw materials into finished products?
A. Procurement
B. Production
C. Logistics
D. Distribution
ANS: B
340.What is a significant challenge faced by supply chain management in the modern
landscape?
A. Decreasing complexity of global supply chains
B. Reduced importance of sustainability and ethical practices
C. Absence of ecommerce and omni-channel distribution
D. Integration of emerging technologies
ANS: D
341.What technique aims to strike the balance between carrying costs and stockouts?
A. EOQ
B. JIT
C. ABC Analysis
D. RFID
ANS: A
342.Which method of demand forecasting involves customer surveys and market
research?
A. Time Series Analysis
B. Regression Analysis
C. Collaborative Forecasting
D. Market Intelligence
ANS: D
343.What is the primary purpose of Demand Planning and Forecasting in SCM?
A. To estimate future demand for products/services
B. To minimize supplier relationships
C. To reduce inventory levels
D. To optimize production costs
ANS: A
344.Which metric measures the percentage of customer orders that are fulfilled on time?
A. Inventory Turnover Ratio
B. Fill Rate
C. Order Cycle Time
D. Carrying Cost of Inventory
ANS: B
345.What does ABC analysis classify inventory items based on?
A. Demand variability
B. Monetary value
C. Future demand patterns
D. Supplier relationships
ANS: B
346.What is the primary objective of EDI in supply chain operations?
A. Standardizing data formats
B. Encouraging manual processes
C. Limiting information exchange
D. Facilitating data silos
ANS: A
347.What aspect of supplier management involves ongoing communication, performance
monitoring, and fostering trust and transparency?
A. Supplier development
B. Supplier segmentation
C. Supplier relationship management
D. Contract negotiation
ANS: C
348.What does strategic sourcing involve in procurement and supplier management?
A. Assessing supplier performance
B. Continuous improvement initiatives
C. Identifying and selecting suppliers
D. Managing supplier relationships
ANS: C
349.What does WIP inventory refer to in the supply chain?
A. Final, completed products ready for sale
B. Goods in transit from one location to another
C. Raw materials awaiting production
D. Goods in the process of being manufactured but not yet completed
ANS: D
350.Continuous improvement initiatives in supplier management aim to _____.
A. Maintain the status quo
B. Collaboration and value creation
C. Ignore supplier feedback
D. Minimize supplier performance
ANS: B
351.What does the Economic Order Quantity (EOQ) aim to minimize?
A. Total holding costs
B. Lead time variability
C. Total annual demand
D. Administrative expenses
ANS: A
352.Lean inventory principles aim to eliminate _____.
A. Value-added activities
B. Continuous flow
C. Overproduction
D. High inventory levels
ANS: C
353.What function does EDI standardization serve in supply chain operations?
A. Enabling data silos
B. Encouraging manual data entry
C. Facilitating standardized electronic communication
D. Limiting data accuracy
ANS: C
354.What does ERP offer in terms of human resource management?
A. Time and attendance tracking
B. Supplier qualification
C. Financial stability assessment
D. Supplier contract development
ANS: A
355.ABC analysis suggests that approximately what percentage of items account for a
large portion of the total value or impact?
A. 10%
B. 20%
C. 50%
D. 80%
ANS: D
356.What does Just-in-Time (JIT) emphasize in production and inventory management?
A. Overproduction
B. Continuous flow
C. Excess inventory
D. High work-in progress inventory
ANS: B
357.What does the term “TIMWOODS” represent in Lean methodology?
A. Categories of process improvement tools
B. Eight types of supply chain waste
C. Steps in the value stream mapping process
D. Principles of data-driven decision making
ANS: B
358.What function do supply chain integration and collaboration platforms primarily
serve?
A. Eliminating communication entirely among stakeholders
B. Facilitating data silos and manual data entry errors
C. Enabling seamless communication and information sharing
D. Creating operational inefficiencies within supply chains
ANS: C
359.What role does root cause analysis play in supplier performance evaluation?
A. To celebrate successes
B. To identify underlying issues
C. To reward suppliers
D. To ignore performance issues
ANS: B
360.Which step in supplier management focuses on assessing supplier financial stability,
compliance, and capacity?
A. Contract negotiation
B. Supplier evaluation and selection
C. Supplier development
D. Risk management
ANS: B
361.Supplier scorecards or performance dashboards provide _____.
A. A platform for isolation
B. A visual representation of supplier feedback
C. Transparent communication channels
D. A way to compare supplier performance
ANS: D
362.What aspect does RFID technology significantly improve within a warehouse setting?
A. Employee management
B. Picking and sorting efficiency
C. Financial reporting
D. Supplier evaluation
ANS: B
363.What purpose does RFID technology serve in inventory management?
A. Enhancing financial management
B. Providing real-time tracking
C. Streamlining supplier collaboration
D. Limiting inventory visibility
ANS: B
364.Time for which the assets are kept idle against the time they get utilised in the supply
chain is _____.
A. Scheduling of production
B. Activity of logistics postponement
C. Reducing cash conversion cost
D. Dwell time minimisation
AN: D
365.True or False? The forecast should work constantly and also be reliable.
A. TRUE
B. FALSE
C. Cannot be determined
ANS: A
366.The concerned effort of two or more supply chain partners to gain competitive
advantage is _____.
A. Co-operation
B. Partnership
C. Collaboration
D. Affiliation
ANS: C
367.Logistics is the part of Supply chain involved with the forward and reserve flow of
_____.
A. Goods
B. Services
C. Cash
D. All of the above
ANS: D
368.Positive, long term relationships between supply chain participants refers to _____.
A. Co-operation
B. Tailor Logistics
C. Partnership
D. Supply chain management
ANS: D
369.The purpose of supply chain management is to _____.
A. provide customer satisfaction
B. improve quality of a product
C. integrating supply and demand management
D. All of the above
ANS: D
370.Supply Chain consist of the following:
A. Distribution
B. Warehousing
C. Procurement
D. All of the above
ANS: D
371.In a supply chain, material flows in one direction, while _____ flows from both the
directions.
A. Process
B. Information
C. Product
D. semi-finished goods
ANS: B
372.What was the pivotal development during the industrial revolution that transformed
logistics?
A. Introduction of steam-powered transportation
B. Invention of the printing press
C. Discovery of electricity
D. Advancements in agriculture
ANS: A
373.What does “last-mile delivery” refer to in logistics?
A. Delivery to the last warehouse in the supply chain
B. Final delivery from the manufacturer to the retailer
C. Delivery from the distribution centre to the end customer
D. Delivery of goods from the port to the warehouse
ANS: C
374.What function ensures the availability of goods while minimizing holding costs and
stockouts?
A. Inventory management
B. Packaging and unitization
C. Transportation
D. Supply chain collaboration
ANS: A
375.What aspect of logistics deals with managing potential risks like natural disasters or
geopolitical events?
A. Inventory management
B. Transportation
C. Risk management
D. Supply chain planning
ANS: C
376.What is the primary function of warehousing in logistics?
A. Transportation management
B. Inventory optimization
C. Storing and managing goods
D. Packaging optimization
ANS: C
377._____ involves the efficient planning, sourcing, storage and distribution of service parts
needed to support product repairs, maintenance and customer service.
A. Service Logistics
B. Service Parts Logistics
C. Service Management
D. Inventory Management
ANS: B
378.Which element is essential in supplier management for service parts logistics?
A. High pricing for competitive advantage
B. Long lead times and frequent stockouts
C. Timely delivery and close collaboration
D. Limited communication and poor quality control
ANS: C
279.What is the primary goal of route planning and optimization in transportation
management?
A. Maximizing transit times
B. Minimizing fuel consumption
C. Increasing transportation costs
D. Expanding delivery schedules
ANS: B
380.What does freight consolidation aim to achieve in transportation management?
A. Increase transportation costs
B. Minimize capacity utilization
C. Optimize transportation costs and capacity
D. Reduce shipment volume
ANS: C
381.What does inventory positioning focus on in supply chain network design?
A. Managing labour resources
B. Balancing customer service and costs
C. Optimizing facility layout
D. Enhancing transportation routes
ANS: B
382.What is the primary goal of documentation in international logistics?
A. Confusing customs officials
B. Facilitating shipment delays
C. Ensuring compliance and clearance
D. Creating trade barriers
ANS: C
383.What role do customs brokers play in international logistics?
A. Creating trade barriers
B. Facilitating customs compliance
C. Ignoring regulatory requirements
D. Disregarding trade agreements
ANS: B
384.Which technology is commonly used in materials handling to optimize efficiency?
A. Labour management software
B. Warehouse automation systems
C. Transportation tracking systems
D. Inventory management software
ANS: B
385.How does packaging contribute to order fulfilment in logistics?
A. By increasing order accuracy
B. By reducing storage space
C. By disregarding product protection
D. By creating transportation delays
ANS: A
386.Which aspect of warehouse management focuses on ensuring a safe working
environment?
A. Transportation booking
B. Labour management
C. Safety and security measures
D. Inventory management techniques
ANS: C
387.How does international logistics benefit from supply chain visibility?
A. By increasing transportation costs
B. By promoting trade barriers
C. By providing real-time shipment tracking
D. By ignoring regulatory requirements
ANS: C
388.Why is understanding cultural nuances crucial in international logistics?
A. To ignore negotiation techniques
B. To disregard business practices
C. To facilitate communication and collaboration
D. To avoid trade agreements
ANS: C
389.What principle is essential when considering packaging materials’ compatibility with
the product?
A. Material availability
B. Resistance to temperature changes
C. Material cost
D. Product size and fragility
ANS: D
390.Which factor is essential to consider for minimizing the environmental impact of
packaging materials?
A. Maximizing excess packaging
B. Avoiding recyclable materials
C. Using non-biodegradable resources
D. Choosing recyclable or biodegradable materials
ANS: D
391.What aspect should be balanced when evaluating packaging materials for cost
effectiveness?
A. Performance and safety
B. Efficiency and durability
C. Performance and cost
D. Aesthetics and efficiency
ANS: C
392.What is a significant advantage of staying updated with packaging technologies?
A. Ignoring new materials and innovations
B. Increasing operational inefficiencies
C. Providing a competitive advantage and supporting sustainability goals
D. Avoiding advancements in packaging
ANS: C
393.Which technique involves placing goods on platforms to facilitate handling and
transportation?
A. Strapping
B. Interlocking
C. Palletizing
D. Shrink wrapping
ANS: C
394.Which technique uses a stretchable plastic film to secure loads on pallets?
A. Slip Sheets
B. Shrink wrapping
C. Strapping
D. Stretch wrapping
ANS: D
395.What function do Automated Guided Vehicles (AGVs) serve in materials handling?
A. Manual handling of goods
B. Automated navigation without human operators
C. Conveying materials between different locations
D. Lifting and transporting palletized loads
ANS: B
396.What was a key factor in the logistics system of ancient Egypt?
A. Advanced shipping technology
B. Construction of the Great Pyramids
C. Air travel
D. Just-in-time production methods
ANS: B
397.What revolution marked a significant turning point in logistics management in the 18th
and 19th centuries?
A. Industrial Revolution
B. Technological Revolution
C. Agricultural Revolution
D. Information Revolution
ANS: A
398.What is the purpose of palletizing in logistics?
A. Reducing the number of shipments
B. Increasing packaging costs
C. Providing a stable base for stacking and transporting goods
D. Minimizing environmental impact
ANS: C
399.Which technique involves tightly wrapping a plastic film around a palletized load?
A. Palletizing
B. Shrink Wrapping
C. Stretch Wrapping
D. Strapping
ANS: B
400.What is a key benefit of efficient packaging in logistics?
A. Increasing transportation costs
B. Reducing transportation costs
C. Reducing product protection
D. Delaying shipment schedules
ANS: B
401.What is the purpose of regular cycle counts in inventory management?
A. Increasing inventory levels
B. Ensuring accurate recording and tracking of inventory
C. Reducing warehouse space usage
D. Delaying shipment schedules
ANS: B
402.Reverse logistics is required because _____.
A. goods are defective
B. goods are unsold
C. customers simply change their mind
D. All of the above
ANS: D
403.Logistics is the term that encompasses:
A. Procurement of raw materials
B. Distribution of goods to customers
C. Accounting for raw materials in transit
D. All of the above
ANS: D
404.The objective of logistics is _____.
A. creating visibility
B. rapid response
C. consolidated movement
D. All of the above
ANS: D
405.DRP stands for _____.
A. Distribution Requirement Planning
B. Dividend Requirement Planning
C. Distribution Resource Planning
D. Distribution Reverse Planning
ANS: A
406.In inbound logistics, the interaction takes place between _____.
A. the supplier and company
B. supplier and consumer
C. supplier and retailer
D. company and retailer
ANS: A
407.Which of the following is not a part of the three C’s of logistics?
A. Competitor
B. Cost
C. Company
D. Customer
ANS: A
408.What does the term “lead time” refer to in logistics?
A. The time it takes to manufacture a product
B. The time between placing an order and receiving it
C. The time a product spends in storage
D. The time it takes to unload a shipment
ANS: B
409.Which of the following is a primary objective of logistics management?
A. Maximizing production costs
B. Minimizing customer satisfaction
C. Optimizing transportation and storage of goods
D. Increasing lead times
ANS: C
410.The term ‘third-party logistics (3PL)’ refers to:
A. The internal logistics department of a company
B. The use of a third-party business to outsource elements of the company’s
distribution and fulfilment services
C. A logistics strategy involving three steps
D. None of the above
ANS: B
411.Which technology is commonly used for tracking shipments in logistics?
A. RFID (Radio Frequency Identification
B. VPN (Virtual Private Network
C. SQL (Structured Query Language
D. HTML (Hypertext Markup Language
ANS: A
412.Cross-docking is a logistics practice that involves:
A. Long-term storage of goods
B. Direct transfer of goods from inbound to outbound transport with minimal or no
storage
C. Manufacturing of products
D. Increasing inventory level
ANS: B
413.Which factor is NOT typically considered when choosing a transportation mode in
logistics?
A. Cost
B. Speed
C. Weather conditions
D. Customer preferences
ANS: D
414.What does the term ‘incoterms’ refer to in international trade and logistics?
A. International standards for packaging
B. International terms of payment
C. International commercial terms
D. International trade regulations
ANS: C
415.In the logistics Industry, what does “FOB” stand for?
A. Freight on Board
B. Forward on Board
C. Free on Borad
D. Freight over Board
ANS: C
416.Logistics is the part of a supply chain involved with the forward and reverse flow of
_____.
A. cash
B. goods
C. services
D. All of the above
ANS: D
417.In warehouse operations, what does the function of ‘identification and sorting’
primarily involve?
A. Packing items
B. Issuing materials
C. Categorizing similar items
D. Storing items in designated locations
ANS: C
418.Which technological advancement significantly transformed warehousing practices in
the 20th century?
A. Introduction of electric-powered forklifts
B. Implementation of automated storage systems
C. Use of conveyor belts for material movement
D. Introduction of barcoding and inventory software
ANS: D
419.Which warehouse technology has notably enhanced efficiency by reducing manual
labor and improving productivity?
A. Electric-powered forklifts
B. Manual conveyor systems
C. Automated storage and retrieval systems
D. Hand-operated pallet jacks
ANS: C
420.In warehousing, what does the term ‘cold storage facilities’ typically refer to?
A. Refrigerated storage for perishable goods
B. Safekeeping of electronic equipment
C. Areas dedicated to hazardous materials
D. Storage rooms for oversized items
ANS: A
421.What function primarily ensures the easy retrieval and efficient movement of goods
within the warehouse?
A. Order accumulation
B. Packing materials
C. Record-keeping
D. Proper placement in the store
ANS: D
422.What role do warehouses play in ensuring ‘convenient handling’ of goods?
A. Implementing mechanical devices for lifting
B. Providing insurance for damaged goods
C. Reducing the variety of stored items
D. Using manual labor for lifting goods
ANS: A
423.What is the primary objective of having decentralized stores in large factories with
multiple departments?
A. Centralized control over materials
B. Enhanced security measures
C. Facilitated inter-departmental transfers
D. Reduced proximity to manufacturing units
ANS: C
424.What is the main role of ‘record-keeping’ in warehouse management?
A. Ensuring accurate financial reporting
B. Issuing purchase requisitions
C. Tracking transportation routes
D. Identifying warehouse employees
ANS: A
425.Which technological advancement significantly transformed warehousing practices in
the 20th century?
A. Introduction of electric-powered forklifts
B. Implementation of automated storage systems
C. Use of conveyor belts for material movement
D. Introduction of barcoding and inventory software
ANS: D
426.Which equipment is used for lifting and moving pallets within a warehouse, often
manually or electric-powered?
A. Forklifts
B. Pallet jacks
C. Cranes and hoists
D. Conveyor systems
ANS: B
427.What is the recommended location strategy for expensive or commonly used items in
a store?
A. Distributed in multiple locations for redundancy
B. Kept away from user departments for security reasons
C. Maintained in the central store for accessibility
D. Positioned randomly for better utilization of space
ANS: C
428.Which warehouse operation area should have sufficient space for trucks to unload
goods?
A. Storage Systems
B. Receiving and Unloading Area
C. Order Picking and Packing Area
D. Workstation Design
ANS: B
429.What type of storage system is suitable for high-volume inventory with selective
access?
A. Drive-in racking
B. Mezzanine systems
C. Push-back racking
D. Selective pallet racking
ANS: D
430.What aspect is critical for maintaining a well-organized store layout?
A. Restricting space to encourage careful handling
B. Lack of safety equipment and clear signage
C. Continuous improvement in warehouse operations
D. Sufficient space for emergency exits and firefighting equipment
ANS: C
431.What technology enables real-time tracking of inventory movements by assigning
unique identifiers to items?
A. JIT systems
B. RFID technology
C. FIFO analysis
D. Cycle counting
ANS: B
432.What method involves periodic physical counts of inventory to reconcile actual stock
levels with recorded levels?
A. ABC analysis
B. JIT categorization
C. FIFO counting
D. Cycle counting
ANS: D
433.Which security measure involves implementing gates, fences, and locked doors to
limit access?
A. Surveillance systems
B. Perimeter security
C. Inventory tracking
D. Access control
ANS: D
434.What technology is used to monitor key areas of the warehouse using strategically
placed cameras?
A. Intrusion alarms
B. Surveillance systems
C. RFID technology
D. Barcode scanners
ANS: B
435.What does a Warehouse Management System primarily help with?
A. Inventory control
B. Intrusion alarms
C. Employee screening
D. Supplier collaboration
ANS: A
436.Which measure in warehouse security involves regular physical counts to reconcile
stock levels?
A. Inventory tracking
B. Access control
C. Cycle counting
D. RFID technology
ANS: C
437.What technology enables automated sorting, routing, and conveyor systems in
warehouses?
A. RFID technology
B. Barcode technology
C. Voice-directed picking systems
D. AS/RS systems
ANS: A
438.What equipment is used for moving items horizontally, vertically, or at an incline in a
warehouse?
A. Forklifts
B. Cranes and hoists
C. Pallet jacks
D. Automated Guided Vehicles (AGVs)
ANS: A
439.What measure in warehouse security involves monitoring access to restricted areas?
A. Surveillance systems
B. Access control
C. Intrusion alarms
D. Inventory tracking
ANS: B
440.Which system utilizes a series of rollers to move items and is suitable for gravity-fed
applications?
A. Belt conveyors
B. Screw conveyors
C. Chain conveyors
D. Roller conveyors
ANS: D
441.What is the main purpose of inventory management in warehouses?
A. Increasing inventory levels
B. Maintaining optimal inventory levels to meet customer demands
C. Reducing product quality
D. Increasing warehouse space usage
ANS: B
442.Which is a key part of the supply chain and primarily aims to control the movement
and storage of materials within a warehouse?
A. Warehouse Management System
B. Management Information System
C. Technical Information System
D. None of these
ANS: A
443.Which of the following can be termed as corrective action of controlling inventories in
warehouse ?
A. Reduction of procurement lead time
B. Expeditious paper work
C. Monitoring stock level
D. Proper material planning and control
ANS: C
444.Receiving a required inventory item at the exact time needed:
A. ABC
B. JIT
C. FOB
D. PERT
ANS: B
445.Advantages of integrated materials management system ensures better _____.
A. Accountability
B. Co-ordination
C. Performance
D. All the three parameters
ANS: D
446.Which of the following is not an inventory?
A. Machines
B. Raw materials
C. Finished products
D. Consumable tools
ANS: A
447.What is the primary goal of warehouse management?
A. Maximizing warehouse space
B. Reducing labor costs
C. Ensuring timely order fulfillment
D. Minimizing inventory levels
ANS: C
448.What does the process of receiving in warehouse management involve?
A. Packing and shipping orders
B. Organizing products in the warehouse
C. Accepting and inspecting incoming shipments
D. Managing inventory levels
ANS: C
449.Which component of warehouse management involves retrieving products from
storage to fulfill customer orders?
A. Receiving
B. Inventory management
C. Order picking
D. Packing and shipping
ANS: C
450.Why is accurate inventory management important in warehouse management?
A. To optimize warehouse space
B. To reduce labor costs
C. To prevent stock outs and overstock situations
D. To improve order picking efficiency
ANS: C
451.What is the purpose of order packing in warehouse management?
A. To inspect incoming shipments
B. To retrieve products from storage
C. To prepare products for shipping
D. To track inventory levels
ANS: C
452.How does a warehouse management system contribute to warehouse operators?
A. It optimizes warehouse space
B. It reduces labor costs
C. It streamlines processes and improves efficiency
D. It tracks inventory using barcode scanners
ANS: C
453.Which of the following can be substitute for warehousing?
A. Inventory
B. Transportation
C. Online sales
D. Fulfillment Centre
ANS: B
454._____ refers to separating products in to grade and qualities desired by differeft target
markets.
A. Assorting
B. Allocating
C. Sorting out
D. Accumulating
ANS: C
455.Which of the following is not a characteristics of a public warehousing?
A. Requires no capital investment from user
B. Users have a fairly exact determination of their warehousing costs
C. Goods for companies dealing with large volumes of inventory
D. Lack of control by user
ANS: C
456.Which of the following statement about private warehousing is false?
A. It generates high fixed costs for the user
B. It gives users a great deal of control
C. It is feasible when demand patterns are irregular
D. t may reduce an organizations flexibility
ANS: C
457._____ refers to the short distance movement that usually takes place within the
confines of a building such as a plant.
A. Physical distribution
B. Warehousing
C. Material management
D. Materials handling
ANS: B
458.What does EOQ stands for?
A. Economic Order Quantity
B. Economic Order Quality
C. Efficient Order Quantity
D. None of these
ANS: A
459.The primary factor that distinguishes a distribution center from a warehouse is:
A. Distribution centers tend to be multi-story building
B. Distribution centers stress storage
C. Distribution centers stress rapid movement of products though the facility
D. Distribution centers tend to be smaller than warehouses
ANS: C
460.Warehouses emphasize _____ and their primary purpose is to maximize _____.
A. product storage; throughput
B. product storage; usage of available storage space
C. rapid movement of product; throughput
D. rapid movement of product; usage of available storage space
ANS: B
461._____ warehousing is owned or occupied on a long term lease by the firm using them.
A. Public
B. Private
C. Contract
D. Multi client
ANS: B
462.All are characteristics of private warehousing, except:
A. Owned or occupied on a long term lease by the firm using them
B. Feasible when demand patterns are irregular
C. May reduce an organizations flexibility
D. Users have a great deal of control
ANS: B
463.One of the best pieces of advice with respect to the design of warehousing facilities is
to _____.
A. avoid consultants
B. build up rather than out
C. use common sense
D. maximize space utilization
ANS: C
464.The primary advantage of variable slot location in a warehouse is _____
A. increased space utilization
B. better materials handling
C. ease of record keeping
D. more logical and simple product layout
ANS: A
465.Which of the following is not a benefit associated with paperless warehousing?
A. Low cost
B. Reduced clerical work
C. Decreased picking and shipping errors
D. Improved order picking efficiency
ANS: A
466._____ tend to be the standard warehouse equipment in many warehousing facilities.
A. Forklifts
B. Pallet jacks
C. Dock carts
D. Conveyor systems
ANS: A
467.Which of the following is not a trade off in warehousing design?
A. Two–dock versus single dock layout
B. Build up versus build out
C. Order picking versus order taking functions
D. Space devoted to aisles versus space devoted to storage
ANS: C
468.It is possible for paperless warehousing facilities to have payback periods of
approximately _____ months.
A. 6
B. 12
C. 18
D. 24
ANS: C
469.What is the main purpose of information management in logistics management?
A. Reducing transportation cost
B. Optimizing supply chain management
C. Forecasting demand for products
D. Tracking and monitoring the movement of goods
ANS: D
470.Procurement methods have considerable impact on _____.
A. product pricing
B. inventory level
C. warehouse space
D. transport modes
ANS: B
471.What is a key strategy for fuel management that contributes to reducing unnecessary
mileage and fuel consumption?
A. Efficient vehicle maintenance
B. Proper driver training
C. Effective route planning
D. Fuel card programs
ANS: C
472.Which aspect of port operations involves managing vessel arrivals, departures, and
anchoring?
A. Cargo Handling
B. Terminal Infrastructure
C. Vessel Operations
D. Resource Allocation
ANS: C
473.Which approach in transport costing involves adding a profit margin to the total cost to
determine the price?
A. Cost-Plus Pricing
B. Value-Based Pricing
C. Dynamic Pricing
D. Price Discrimination
ANS: C
474.What aspect of driver management contributes to safe driving practices?
A. Ignoring driver performance
B. Providing insufficient training
C. Tracking driver performance
D. Promoting driver fatigue
ANS: C
475.When selecting an airline, what factor should be considered to ensure it aligns with
specific travel needs, such as cargo capacity or special handling requirements?
A. Reliability and Reputation
B. Network Coverage
C. Capacity and Fleet
D. Service Quality
ANS: C
476.What aspect of customs documentation provides details about the contents of each
shipment, including description, quantity, and packaging?
A. Import/Export Declarations
B. Commercial Invoice
C. Packing List
D. Bill of Lading
ANS: C
477.What concept involves the integration of different transportation modes, such as road,
rail, air, and waterways?
A. Green Initiatives
B. Smart Logistics
C. Intermodal Connectivity
D. Collaborative Logistics
ANS: C
478.What type of rail container is typically used for oversized or heavy cargo requiring
special handling?
A. Reefer containers
B. Open-top containers
C. ISO containers
D. Flat racks
ANS: D
479.What cost component remains constant irrespective of the volume of goods
transported?
A. Variable Costs
B. Overhead Costs
C. Fixed Costs
D. Capital Costs
ANS: C
480.Which of the following is NOT a part of transportation management activities?
A. Shipment tracking
B. Manufacturing processes
C. Route planning
D. Freight rate negotiation
ANS: B
481.Which factor is NOT considered during vehicle selection for road transportation?
A. Environmental impact
B. Manufacturer reputation
C. Cargo dimensions
D. Distance between locations
ANS: D
482.Which technology is increasingly relied upon for efficient operations in inland
waterway transportation management?
A. Electronic Data Interchange (EDI)
B. Automated Export System (AES)
C. Transportation Management Systems (TMS)
D. Vessel Traffic Management Systems
ANS: D
483.What is the primary purpose of a commercial invoice in international trade?
A. It confirms the country in which the goods were produced or manufactured.
B. It assesses the value of goods for customs purposes.
C. It provides details about the contents of each shipment.
D. It serves as evidence of the contract of carriage between the shipper and the carrier.
ANS: B
484.What is the primary goal of effective transportation management?
A. Increasing operational inefficiencies
B. Reducing supply chain flexibility
C. Improving delivery reliability
D. Reducing customer satisfaction
ANS: C
485.What document serves as proof of contract between the importer and the carrier for
sea shipments?
A. Bill of Lading
B. Airway Bill
C. Packing List
D. Certificate of Origin
ANS: A
486.Which regulatory reform in India aimed to streamline logistics operations and reduce
bottlenecks?
A. Implementation of Goods and Services Tax (GST)
B. National Logistics Policy
C. Development of dedicated freight corridors
D. Introduction of electric vehicles in transportation
ANS: B
487.Which financial method involves the immediate cash advance to an exporter based on
the value of receivables?
A. Export Factoring
B. Export Working Capital Loans
C. Forfaiting
D. Documentary Letters of Credit
ANS: A
488.Which transportation mode is typically crucial for last-mile connectivity?
A. Rail Transportation
B. Sea Transportation
C. Air Transportation
D. Road Transportation
ANS: D
489.Which aspect of rail transportation management involves overseeing the maintenance
of tracks, signaling systems, and stations?
A. Freight and Passenger Management
B. Scheduling and Operations
C. Maintenance and Infrastructure Management
D. Safety and Regulatory Compliance
ANS: C
490.Which pricing strategy determines prices based on the perceived value of
transportation services to customers?
A. Cost-Plus Pricing
B. Value-Based Pricing
C. Dynamic Pricing
D. Price Discrimination
ANS: B
491.What function does a TMS serve in logistics management?
A. Warehouse design optimization
B. Coordination of transportation activities
C. Supplier collaboration
D. Human resource management
ANS: B
492.What role does EDI play in reducing manual intervention in data exchange?
A. Encouraging data silos
B. Limiting automation
C. Facilitating automated data transfer
D. Enabling manual data entry
ANS: C
493.Which technology facilitates automated data capture processes and improves
efficiency?
A. WMS
B. TMS
C. EDI
D. RFID
ANS: D
494.Which transportation mode is preferred for time-sensitive shipments and high-value
goods?
A. Road Transportation
B. Rail Transportation
C. Air Transportation
D. Sea Transportation
ANS: C
495.What is the primary function of route optimization software in road transportation
management?
A. Tracking vehicle location
B. Minimizing fuel consumption
C. Identifying the most efficient routes
D. Managing driver schedules
ANS: C
496.Which security measure aims to limit unauthorized entry to sensitive areas at airports
and cargo facilities?
A. Background checks for cargo
B. Air cargo screening
C. Access control
D. Customer control
ANS: C
497.What does the term “Chain of Custody” refer to in air cargo handling?
A. A secure way to lock cargo containers
B. A system for tracking cargo movement
C. A method for loading cargo onto aircraft
D. A type of cargo inspection
ANS: B
498.Which aspect of air cargo handling involves verifying the nature, value, and quantity of
goods being imported or exported?
A. Air cargo screening
B. Customs clearance
C. Chain of custody
D. Packaging inspection
ANS: B
499.What is the primary goal of air cargo security measures?
A. Speed up cargo processing
B. Ensure passenger comfort
C. Detect and prevent security threats
D. Increase cargo inspections
ANS: C
500.What does Multistop planning in route optimization involve?
A. Avoiding all stops
B. Maximizing mileage
C. Optimizing the sequence of stops
D. Prioritizing long breaks
ANS: C
501.Cross docking is a strategy primarily aimed at _____.
A. maximizing inventory holding cost
B. minimizing transportation cost
C. increasing order processing time
D. expanding warehouse space
ANS: B
502.Multimodal transport is also known as _____.
A. Combined Transport
B. Intermodal Transport
C. Modal Transport
D. Model Intersect Transport
ANS: A
503.Water transport is disadvantaged because of long _____.
A. transit time
B. lead time
C. loading time
D. unloading time
ANS: A
504.Which document serves as a contract between a shipper and a carrier for the
transportation of goods?
A. Invoice
B. Manifest
C. Bill of Lading
D. Packing Slip
ANS: C
505.What does LTL stand for in transportation logistics?
A. Less Time Logistics
B. Limited Transport Load
C. Less Than Truckload
D. Low Transport Line
ANS: C
506.Which transportation mode is most suitable for transporting bulk commodities such
as oil, coal, and grains over long distances?
A. Air
B. Road
C. Rail
D. Pipeline
ANS: C
507.Ro-Ro concept in Transportation Management means:
A. Roll-On – Ride-Off
B. Ride-On – Ride-Off
C. Roll-Off – Roll-On
D. Roll-On -Roll-Off
ANS: D
508.When air transport is used in combination with road or rail transport, it is called _____.
A. piggy back
B. fishy back
C. birdy back
D. land bridge
ANS: C
509.FCL is known as _____.
A. Full Cold Load
B. Fully Loaded Container Load
C. Full Container Load
D. Full Container Loading
ANS: C
510._____ is the process of finding the most cost-effective route.
A. Path Finding
B. Cost Cutting
C. Routing
D. MRP
ANS: C
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