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State agricultural university MBA admission Agri Supply Chain & Logistics Management: practice questions

State agricultural university MBA (ABM) admission · India · State agricultural universities via ICAR AIEEA-PG Group 19

Original practice questions written to the published syllabus · not past papers
10worked here, free
19written to this exam in this subject
10syllabus 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)

Where the 19 questions fall

How our questions for State agricultural university MBA admission spread across the units of Agri Supply Chain & Logistics Management. Difficulty: 11 easy, 8 medium, 0 hard.

Cold chain4
Traditional and modern agri supply chains3
Procurement and the purchasing cycle2
Contract and corporate farming as procurement2
Elements of logistics2
Distribution strategies and pool distribution2
Supply-chain drivers, metrics and obstacles1
Demand planning and forecasting1
Transport and fleet management1
Warehousing in the supply chain1

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 · Traditional and modern agri supply chains · easy

In an agri-food supply chain, which flow typically moves upstream from consumer towards farmer?

  1. Physical produce
  2. Money (payments)
  3. Packaged finished goods
  4. Refrigerated containers (reefers) of produce
Answer and working

B. Money (payments)

Product moves downstream from farm to consumer and money moves upstream as payment; information moves both ways. Produce and packaged goods are the downstream physical flow, not the upstream one.

Further reading: Chopra and Meindl, Supply Chain Management

2 · Traditional and modern agri supply chains · medium

Which is a recognised strength of traditional agricultural marketing chains compared with modern organised chains?

  1. They buy any quantity and quality and often extend credit to farmers
  2. They usually use pre-cooling and refrigerated transport as standard
  3. They pass point-of-sale data back to farmers
  4. They provide full lot-level traceability to the consumer
Answer and working

A. They buy any quantity and quality and often extend credit to farmers

Traditional chains are flexible, accept small and mixed-quality lots and traders often lend to farmers. Traceability, cold chains and sharing sales data are features of modern chains, which is why they are the tempting but wrong choices.

3 · Supply-chain drivers, metrics and obstacles · easy

A feed company's annual cost of goods sold is 360,000,000 and its average inventory at cost is 60,000,000. Its inventory turnover and approximate days of inventory are

  1. 6 turns and about 61 days
  2. 36 turns and about 10 days
  3. 6 turns and about 6 days
  4. 0.17 turns and about 2,190 days
Answer and working

A. 6 turns and about 61 days

Turnover = COGS / average inventory = 36/6 = 6; days of inventory = 365/6 = about 61 days. Inverting the ratio gives 0.17, and confusing turns with days gives the other wrong answers.

Further reading: Chopra and Meindl, Supply Chain Management

4 · Procurement and the purchasing cycle · easy

Raw milk is most commonly priced to farmers on the basis of

  1. the breed of the cow
  2. its fat and solids-not-fat content
  3. the distance from the farm to the dairy
  4. its volume only, regardless of composition
Answer and working

B. its fat and solids-not-fat content

Most dairies pay on fat and SNF (or fat and protein) because these determine product yield. Pricing on volume alone would reward watering; distance and breed are not the pricing basis.

5 · Contract and corporate farming as procurement · medium

Side-selling in contract farming refers to

  1. the buyer rejecting produce on quality grounds, usually when market prices fall
  2. farmers selling contracted produce to other buyers, often when spot prices are higher
  3. farmers selling the seed and fertiliser supplied under the contract to neighbouring growers for cash
  4. a processor selling by-products such as peel and seed to a third party
Answer and working

B. farmers selling contracted produce to other buyers, often when spot prices are higher

Side-selling is a farmer breach that occurs when outside prices are high. Opportunistic rejection by the buyer when prices fall is the mirror-image risk on the buyer's side.

Further reading: Eaton and Shepherd (2001), FAO

6 · Contract and corporate farming as procurement · easy

Which organisational model of contract farming is typical of a sugar mill contracting large numbers of cane growers with tight quality and harvest scheduling?

  1. Intermediary model
  2. Informal model
  3. Centralised model
  4. Multipartite model
Answer and working

C. Centralised model

A single processor contracting many farmers with strong control is the centralised model; sugar cane, tobacco, poultry and processing vegetables are standard examples.

Further reading: Eaton and Shepherd (2001), FAO

7 · Distribution strategies and pool distribution · medium

A milk-collection vehicle that follows a fixed route picking up from several village collection centres and delivering to one chilling plant is an example of

  1. a milk run
  2. reverse logistics
  3. drop-shipping
  4. a bonded warehouse
Answer and working

A. a milk run

A milk run is one vehicle serving several pick-up (or delivery) points on one route; milk collection is the literal origin of the term. Drop-shipping is direct manufacturer-to-customer shipping.

Further reading: Chopra and Meindl, Supply Chain Management

8 · Transport and fleet management · easy

For long-distance movement of bulk grain, which mode generally has the lowest cost per tonne-kilometre?

  1. Courier parcel service
  2. Road (full truckload)
  3. Air
  4. Water (barge or ship)
Answer and working

D. Water (barge or ship)

Water is generally the cheapest per tonne-km for bulk, followed by rail, then road; air is the most expensive. Road is preferred for the first and last mile, not for long-haul bulk.

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

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 · easy

Frozen foods are commonly required to be held at

  1. ambient temperature
  2. 10 to 13 degrees C
  3. minus 18 degrees C or colder
  4. 0 to 4 degrees C
Answer and working

C. minus 18 degrees C or colder

Minus 18 degrees C or colder is the common frozen-storage standard; 0-4 degrees C is a typical chilled range. Exact rules vary by regulation and product.

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Read the subject

Agri Supply Chain & Logistics ManagementThe full study manual, free State agricultural university MBA admissionFormat, sections and how it has changed

More State agricultural university MBA admission practice

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Agri Supply Chain & Logistics Management for other exams

ICAR AICE-JRF/SRF · IndiaICAR AIEEA-PG · India

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