Basic Business Test Quiz
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Every business requires some form of investment and enough customers. The business field has a lot of career opportunities and if you are looking to venture into a business there are some basic information you need to understand. Test you business knowledge by taking up the quiz below. All the best!
- 1.The basic elements of the supply chain include:
- A.
Supply, manufacture, distribution
- B.
Design, manufacture, inventory
- C.
Engineer, design, manufacture
- D.
Supply, engineer, manufacture
- 2.In order to maximize profit, a company must have all of the following objectives except:
- A.
Best customer service
- B.
Most accurate production forecast
- C.
Lowest inventory investment
- D.
Lowest distribution cost
- 3.The inventory turns ratio measures:
- A.
The amount of inventory needed to support sales growth
- B.
Obsolete inventory as a percent of sales
- C.
How effectively inventory is being used
- D.
The amount of space needed to store inventory
- 4.Process specifications can be best defined as a document which:
- A.
Shows how the product will appear
- B.
Shows the steps needed to produce the end item
- C.
Details the capacity available at a work center
- D.
Flow charts various processes
- 5.A company's stragic plan:
- A.
Provides the manufacturing plan for families of end items
- B.
Outlines the sales plan for the next year
- C.
Is a statement of goals and objectives for a long range period
- D.
Outlines new products for the next year
- 6.In which of the following manufacturing environments would consumer products, such as film, etc. be classified?
- A.
Assemble to order
- B.
Engineer to order
- C.
Make to order
- D.
Make to stock
- 7.Many different end items are made from a small number of components. What manufacturing environment would this be?
- A.
Make to stock
- B.
Make to order
- C.
Assemble to order
- D.
Engineer to order
- 8.The purpose of a strategic business plan is:
- A.
To plan production by product family
- B.
To plan for business changes which take a long time
- C.
To establish customer requirements over the long term
- D.
To establish order promising strategies
- 9.Aggregate inventory management is concerned with:
- A.
Managing inventory items and how they are used
- B.
Establishing the production plan
- C.
The cost and benefits of carrying the different classes of inventory
- D.
The distribution network and the movement of inventory
- 10.Which of the following would be included in the cost of carrying inventory? I. Heating and lighting a warehouse II. Obsolete inventory III. Labor to move material IV. Damaged inventory
- A.
I, II, and III
- B.
II, III, and IV
- C.
I, III, and IV
- D.
I, II, III, and IV
- 11.Which of the following best describes a normal distribution?
- A.
Most values clustered near a central point
- B.
Warehouses centrally located to markets
- C.
Values accumulated at six sigma
- D.
A critical ratio of 1.0
- 12.Based on the following information, what would the safety stock need to be to ensure product is in stock 99.9999% of the time? MAD = 100 On hand = 200 Weekly demand = 400
- A.
100
- B.
300
- C.
500
- D.
600
- 13.Each distribution center places orders from a central supply as they are needed. This is called:
- A.
Pull system
- B.
Push system
- C.
Just-in-time delivery
- D.
Supply chain management
- 14.A company makes all decisions regarding forecasting and orders centrally for its distribution network. This company is using which of the following systems?
- A.
Pull system
- B.
Push system
- C.
Just-in-time
- D.
Time phased order point
- 15.A company wants to store 15,000 cartons with 20 cartons on each pallet. The warehouse is set up to store pallets 5 high. How many pallet positions are needed?
- A.
150
- B.
500
- C.
750
- D.
3000
- 16.All of the following are basic grouping methods to store and locate stock in a warehouse except:
- A.
Items related functionally
- B.
Items in sequential SKU number
- C.
Items which are physically similar
- D.
Items which are fast moving
- 17.What is the major disadventage of a fixed location warehouse?
- A.
Put away item is increased
- B.
Cube utilization is poor
- C.
Dock time is increased
- D.
Material handling costs rise
- 18.Which of the following are advantages of point of use storage? I. Ease of control II. Material handling is reduced III. Storage costs are reduced IV. Material is accessible at all times
- A.
I, II, and III
- B.
II, III, and IV
- C.
I, III, and IV
- D.
I, II, III, and IV
- 19.Which of the following are advantages of using central storage? I. Ease of control II. Costs are reduced III. Inventory record accuracy is easier to attain IV. Safety stock is reduced
- A.
I, II, and III
- B.
I, III, and IV
- C.
II, III, and IV
- D.
I, II, III, and IV
- 20.Which of the following best describes cycle counting?
- A.
A process to reduce cycle time
- B.
Set up reduction to shorten the production cycle
- C.
Counting inventory on a pre-determined schedule
- D.
Conducting a time study at a work center
- 21.The movement of finished goods from production to the customer is:
- A.
Physical supply
- B.
Supply chain
- C.
Physical distribution
- D.
Conversion cycle
- 22.All of the following activities are part of the physical distribution system except:
- A.
Transportation
- B.
Warehousing
- C.
Material handling
- D.
Forecasting of customer orders
- 23.Trucks, as a mode of transportation, are best suited for:
- A.
Moving small quantities to widely dispersed markets
- B.
Moving large quantities to widely dispersed markets
- C.
Moving small quantities to narrowly dispersed markets
- D.
Moving large quantities to narrowly dispersed markets
- 24.For a given product, the line haul cost is $1.50 per mile. The product will move 400 miles. If 40,000 pounds are being shipped, what is the cost per hundred weight?
- A.
1.00
- B.
1.50
- C.
2.00
- D.
2.50
- 25.Which of the following best describes the purpose of a distribution warehouse?
- A.
A warehouse to store goods for long periods of time
- B.
A storage warehouse for floor stock
- C.
A warehouse to move and mix goods
- D.
A supply chain warehouse for regional storage
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