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ICAR AICE-JRF/SRF Agri Supply Chain & Logistics Management: practice questions

ICAR AICE-JRF/SRF (PhD admission and fellowship) · India · National Testing Agency for ICAR

Original practice questions written to the published syllabus · not past papers
10worked here, free
91written to this exam in this subject
14syllabus units

What this subject covers

Moving agricultural and food products efficiently from source to buyer: planning, procurement, inventory, transport, warehousing, cold chain and outsourced logistics.

In the exams: agribusiness management PhD entrance and fellowship examinations, logistics and supply chain management (heavy)

What ICAR AICE-JRF/SRF asks from it

ICAR AICE-JRF/SRF (PhD) — Agri-Business Management, Unit 5 operations incl. logistics and SCM

Heavily weighted. Definitions and frameworks (Chopra-Meindl drivers, Fisher's efficient vs responsive chains, SCOR, bullwhip causes and remedies), inventory numericals (EOQ, reorder point, safety stock, quantity discounts, newsvendor), MRP netting, JIT and kanban, VMI and CPFR, 3PL/4PL, reverse logistics, cold chain, warehousing and IT tools. Expect one-step numericals and 'which of the following' recall on who proposed what.

Where the 91 questions fall

How our questions for ICAR AICE-JRF/SRF spread across the units of Agri Supply Chain & Logistics Management. Difficulty: 23 easy, 43 medium, 25 hard.

Inventory: MRP, JIT and vendor-managed inventory17
Supply-chain drivers, metrics and obstacles9
Cold chain8
IT in supply-chain management8
Demand planning and forecasting7
Procurement and the purchasing cycle6
Transport and fleet management6
Contract and corporate farming as procurement5
Elements of logistics5
Distribution strategies and pool distribution5
Third- and fourth-party logistics5
Reverse logistics5
Traditional and modern agri supply chains3
Warehousing in the supply chain2

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Supply-chain drivers, metrics and obstacles · medium

A grain terminal processes 400 tonnes a day and holds on average 6,000 tonnes in the system. By Little's law, the average time a tonne spends in the terminal is

  1. 0.07 days
  2. 6,400 days
  3. 15 days
  4. 2.4 million days
Answer and working

C. 15 days

Little's law: inventory = throughput x flow time, so flow time = 6,000 / 400 = 15 days. Multiplying the two (2.4 million) or inverting the ratio (0.07) are the usual slips. 6,400 adds the two figures.

2 · Demand planning and forecasting · hard

If forecast errors are normally distributed, the standard deviation of forecast error is approximately

  1. 2 x MAD
  2. 1.25 x MAD
  3. 0.8 x MAD
  4. MAD squared
Answer and working

B. 1.25 x MAD

For normal errors, sigma is about 1.25 times the MAD (the exact factor is the square root of pi/2, about 1.253); equivalently MAD is about 0.8 sigma. That is why 0.8 is the tempting wrong answer: it is the inverse relation.

Further reading: Heizer, Render and Munson, Operations Management

3 · Procurement and the purchasing cycle · medium

In the Kraljic purchasing portfolio matrix, an input with high profit impact but low supply risk, available from many competing suppliers, is a

  1. strategic item
  2. non-critical item
  3. bottleneck item
  4. leverage item
Answer and working

D. leverage item

Kraljic classifies by profit impact and supply risk: high impact and low risk is leverage (use buying power and bidding); high impact and high risk is strategic; low impact and high risk is bottleneck; low impact and low risk is non-critical.

Further reading: Kraljic (1983), HBR

4 · Procurement and the purchasing cycle · easy

The first step of the purchasing cycle is

  1. paying the supplier's invoice
  2. recognising and describing the need, with specifications
  3. evaluating supplier performance
  4. issuing the purchase order
Answer and working

B. recognising and describing the need, with specifications

The cycle starts when a need is recognised and specified (usually in a purchase requisition); ordering, payment and performance review come later.

5 · Inventory: MRP, JIT and vendor-managed inventory · easy

At the economic order quantity in the basic EOQ model,

  1. annual ordering cost equals annual holding cost
  2. annual ordering cost is twice annual holding cost
  3. the number of orders equals the lead time in days
  4. holding cost is zero
Answer and working

A. annual ordering cost equals annual holding cost

Minimising (D/Q)S + (Q/2)H gives Q* where the two cost terms are equal. The other statements have no basis in the model.

Further reading: Heizer, Render and Munson, Operations Management

6 · Inventory: MRP, JIT and vendor-managed inventory · easy

Which is an assumption of the basic EOQ model?

  1. Demand is seasonal and uncertain, so safety stock is built in
  2. Shortages are planned and backordered at a known cost per unit
  3. Demand is constant and known; replenishment is instant
  4. Unit price falls with order size under quantity discounts
Answer and working

C. Demand is constant and known; replenishment is instant

The classic EOQ assumes constant known demand, fixed ordering cost, constant holding cost, instantaneous replenishment, no shortages and no quantity discounts. Seasonal demand, planned shortages and discounts need extended models.

Further reading: Heizer, Render and Munson, Operations Management

7 · Elements of logistics · medium

The total cost concept in logistics means that

  1. each logistics cost should be minimised separately by the department that controls that budget
  2. transport, inventory, storage, packaging and order costs are traded off and minimised jointly
  3. only inventory carrying cost matters, since transport is a pass-through charge
  4. transport cost should always be minimised first, and the other costs will follow
Answer and working

B. transport, inventory, storage, packaging and order costs are traded off and minimised jointly

Cheaper slow transport raises inventory, fewer warehouses raise transport, cheaper packaging raises damage. Minimising each cost separately usually raises the total.

Further reading: Bowersox et al., Supply Chain Logistics Management

8 · Third- and fourth-party logistics · hard

A seasonal fruit exporter needs cold-chain trucks and pack-house space for 3 months a year. Which choice is usually most consistent with make-or-buy logic?

  1. Buy a full reefer fleet, because owning always gives lower cost
  2. Build a year-round cold store sized for the peak, and rent it out off-season
  3. Buy the service from a cold-chain 3PL, as owned assets would sit idle
  4. Use ambient trucks to avoid 3PL fees
Answer and working

C. Buy the service from a cold-chain 3PL, as owned assets would sit idle

When utilisation of owned assets would be low, a provider that serves many clients across seasons can offer lower cost per unit. Owning is cheaper only above a break-even level of use; ambient trucks risk the product.

9 · Cold chain · medium

Which pre-cooling method is especially suited to leafy vegetables such as lettuce?

  1. Hydrocooling of cartons of dry onions
  2. Curing at high temperature
  3. Vacuum cooling
  4. Room cooling of sealed, unvented bags
Answer and working

C. Vacuum cooling

Vacuum cooling evaporates water from the large leaf surface under low pressure, cooling leafy greens rapidly. Onions must be kept dry, sealed bags block cooling, and curing is a different process.

Further reading: Kader (ed.), Postharvest Technology of Horticultural Crops

10 · Cold chain · medium

Why should ripe bananas not be shipped in the same container as leafy greens or cut flowers?

  1. The two products have identical temperature needs
  2. Leafy greens release ethylene that ripens bananas too slowly for sale on arrival
  3. Bananas need to be frozen during sea transport
  4. Ripening bananas give off ethylene, speeding decay of sensitive items
Answer and working

D. Ripening bananas give off ethylene, speeding decay of sensitive items

Climacteric fruits such as bananas produce ethylene, and sensitive products such as leafy greens and flowers deteriorate when exposed. Their temperature needs also differ, so treating them as identical is wrong too.

Further reading: Kader (ed.), Postharvest Technology of Horticultural Crops

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Read the subject

Agri Supply Chain & Logistics ManagementThe full study manual, free ICAR AICE-JRF/SRFFormat, sections and how it has changed

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