Distribution Systems MCQs

1. Which of the following is not a function of distribution systems?
A) Inventory management
B) Product design
C) Order processing
D) Warehousing
Answer: B

2. What does “last mile delivery” refer to in distribution systems?
A) Final stage of the supply chain
B) Transporting goods from manufacturer to retailer
C) Delivery to the end consumer
D) Warehouse management
Answer: C

3. Which distribution strategy involves using multiple intermediaries to reach target markets?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: B

4. Which inventory model assumes demand for an item occurs at a constant rate and items are ordered in batches?
A) Economic order quantity (EOQ)
B) Just-in-time (JIT)
C) Material requirements planning (MRP)
D) Continuous replenishment
Answer: A

5. Cross-docking is a strategy primarily used for:
A) Reducing inventory holding costs
B) Storing goods long-term
C) Direct selling to consumers
D) Quality control in manufacturing
Answer: A

6. Which distribution channel eliminates intermediaries between the producer and the consumer?
A) Direct distribution
B) Intensive distribution
C) Selective distribution
D) Exclusive distribution
Answer: A

7. Which technology is commonly used for real-time tracking of shipments in distribution systems?
A) RFID (Radio Frequency Identification)
B) QR codes (Quick Response codes)
C) Barcodes
D) GPS (Global Positioning System)
Answer: A

8. Which factor is not considered in determining warehouse location?
A) Proximity to suppliers
B) Nearness to competitors
C) Access to transportation networks
D) Cost of labor
Answer: B

9. In the context of distribution systems, what does “reverse logistics” refer to?
A) The flow of goods from the manufacturer to the consumer
B) Recalling defective products from the market
C) Returning goods from the consumer to the manufacturer
D) Distributing products to multiple retailers
Answer: C

10. Which distribution metric measures the percentage of orders delivered on time?
A) Order fill rate
B) Perfect order fulfillment
C) On-time delivery
D) Inventory turnover
Answer: C

11. Which distribution network design allows for quicker response to customer orders but may increase transportation costs?
A) Centralized distribution
B) Decentralized distribution
C) Hybrid distribution
D) Clustered distribution
Answer: B

12. Which strategy involves stocking products at multiple strategic locations to reduce delivery times?
A) Centralized inventory management
B) Decentralized inventory management
C) Economic order quantity (EOQ)
D) Safety stock management
Answer: B

13. What is the primary advantage of using a third-party logistics (3PL) provider?
A) Cost reduction
B) Increased control over distribution
C) Better inventory management
D) Expertise and specialized services
Answer: D

14. Which type of warehousing system focuses on optimizing space and minimizing travel time within the warehouse?
A) Random location warehousing
B) Block stacking warehousing
C) Cross-docking
D) Automated storage and retrieval system (AS/RS)
Answer: D

15. Which distribution strategy limits the number of intermediaries handling a product?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: C

16. Which technology is used to forecast demand and manage inventory levels in distribution systems?
A) RFID
B) ERP (Enterprise Resource Planning)
C) MRP (Material Requirements Planning)
D) Blockchain
Answer: B

17. Which factor is not typically considered when choosing transportation modes in distribution systems?
A) Cost
B) Speed
C) Volume of goods
D) Proximity to competitors
Answer: D

18. Which type of transportation is typically the fastest but also the most expensive?
A) Rail
B) Truck
C) Air
D) Ship
Answer: C

19. Which method of inventory control ensures that goods are replenished as soon as they are sold?
A) Economic order quantity (EOQ)
B) Just-in-time (JIT)
C) Safety stock management
D) ABC analysis
Answer: B

20. Which distribution strategy aims to maximize market coverage by placing products in as many outlets as possible?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: A

21. Which type of packaging is most suitable for optimizing space in transportation and warehousing?
A) Rigid packaging
B) Flexible packaging
C) Bulk packaging
D) Hazardous material packaging
Answer: C

22. Which factor is a primary consideration in designing a supply chain network?
A) Branding strategy
B) Cost of goods sold (COGS)
C) Customer demographics
D) Lead time variability
Answer: D

23. Which inventory management approach aims to classify items based on their value and importance?
A) Economic order quantity (EOQ)
B) Just-in-time (JIT)
C) ABC analysis
D) Safety stock management
Answer: C

24. Which distribution strategy involves selling products through a single wholesaler or retailer in a specific geographic area?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: C

25. Which type of transportation is most suitable for high-volume shipments over long distances?
A) Truck
B) Rail
C) Air
D) Ship
Answer: D

26. Which metric measures the ability of a distribution system to meet customer demand without delay?
A) Fill rate
B) Lead time
C) Cycle time
D) Backorder rate
Answer: A

27. Which technology is used to automate order fulfillment processes in warehouses?
A) RFID
B) AS/RS (Automated Storage and Retrieval System)
C) ERP (Enterprise Resource Planning)
D) GPS (Global Positioning System)
Answer: B

28. Which distribution network design balances cost efficiency with quick customer response?
A) Centralized distribution
B) Decentralized distribution
C) Hybrid distribution
D) Clustered distribution
Answer: C

29. Which type of warehouse layout stores products in distinct areas based on size, shape, or type?
A) Random location warehousing
B) Block stacking warehousing
C) Cross-docking
D) Fixed location warehousing
Answer: B

30. Which distribution strategy involves selling products directly to consumers without intermediaries?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: D

31. Which technology is used for accurate tracking of inventory levels in real-time?
A) Barcodes
B) QR codes
C) RFID
D) GPS
Answer: C

32. Which factor does not influence the choice of packaging material in distribution systems?
A) Product fragility
B) Cost of packaging
C) Color of packaging
D) Environmental impact
Answer: C

33. Which type of distribution system is preferred for perishable goods with a short shelf life?
A) Direct distribution
B) Intensive distribution
C) Exclusive distribution
D) Selective distribution
Answer: B

34. Which inventory management technique focuses on minimizing excess inventory to reduce holding costs?
A) Safety stock management
B) Just-in-time (JIT)
C) Economic order quantity (EOQ)
D) ABC analysis
Answer: B

35. Which distribution channel involves selling products through a limited number of outlets?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: B

36. Which transportation mode is most suitable for transporting hazardous materials?
A) Truck
B) Rail
C) Air
D) Ship
Answer: A

37. Which metric measures the average time taken to deliver goods from order placement to delivery?
A) Lead time
B) Cycle time
C) Fill rate
D) On-time delivery
Answer: A

38. Which technology is used to optimize route planning and minimize transportation costs?
A) RFID
B) GPS
C) AS/RS
D) ERP
Answer: B

39. Which factor is not considered in determining the capacity of a warehouse?
A) Floor space
B) Ceiling height
C) Color of walls
D) Racking system
Answer: C

40. Which type of distribution strategy involves selling products through a single intermediary in each geographic area?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: C

41. Which type of packaging is most suitable for protecting fragile items during transportation?
A) Rigid packaging
B) Flexible packaging
C) Bulk packaging
D) Hazardous material packaging
Answer: A

42. Which factor is a primary consideration in designing a transportation network?
A) Cost of packaging
B) Customer preferences
C) Transportation mode availability
D) Lead time variability
Answer: C

43. Which inventory management approach ensures that a certain quantity of goods is always available as a buffer against uncertainties?
A) Economic order quantity (EOQ)
B) Just-in-time (JIT)
C) Safety stock management
D) ABC analysis
Answer: C

44. Which distribution strategy focuses on targeting specific outlets or geographic regions for product placement?
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution
D) Direct distribution
Answer: B

45. Which type of transportation is most suitable for delivering goods quickly over moderate distances?
A) Truck
B) Rail
C) Air
D) Ship
Answer: A

46. Which metric measures the proportion of customer orders fulfilled completely and error-free?
A) Fill rate
B) Perfect order fulfillment
C) On-time delivery
D) Backorder rate
Answer: B

47. Which technology is used to automate inventory counting and reduce manual errors?
A) Barcodes
B) QR codes
C) RFID
D) GPS
Answer: C

48. Which factor does not influence the choice of warehouse location?
A) Proximity to suppliers
B) Customer demographics
C) Access to transportation networks
D) Cost of labor
Answer: B

49. Which distribution network design combines elements of both centralized and decentralized systems?
A) Centralized distribution
B) Decentralized distribution
C) Hybrid distribution
D) Clustered distribution
Answer: C

50. Which type of warehouse layout allows for quick movement of goods and minimal travel distances?
A) Random location warehousing
B) Block stacking warehousing
C) Cross-docking
D) Automated storage and retrieval system (AS/RS)
Answer: D

Distribution Systems MCQs

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