What is the primary purpose of supply chain management? a) Increase sales
b) Maximize customer value and achieve a sustainable competitive advantage
c) Enhance marketing strategies
d) Improve human resource management Answer: b) Maximize customer value and achieve a sustainable competitive advantage
Which of the following components is NOT part of the supply chain? a) Suppliers
b) Manufacturers
c) Customers
d) Competitors Answer: d) Competitors
Which process involves the transformation of raw materials into finished goods? a) Distribution
b) Manufacturing
c) Procurement
d) Warehousing Answer: b) Manufacturing
What is the role of procurement in supply chain management? a) Designing products
b) Acquiring goods and services from suppliers
c) Selling products to customers
d) Managing inventory levels Answer: b) Acquiring goods and services from suppliers
What is the term for the physical movement of goods in the supply chain? a) Logistics
b) Inventory management
c) Demand forecasting
d) Production planning Answer: a) Logistics
Which inventory management strategy aims to minimize inventory levels and reduce carrying costs? a) Just-in-Time (JIT)
b) Economic Order Quantity (EOQ)
c) Safety Stock
d) Bulk Purchasing Answer: a) Just-in-Time (JIT)
What is a common method used to evaluate supplier performance? a) SWOT analysis
b) Supplier scorecard
c) Market research
d) Customer surveys Answer: b) Supplier scorecard
Which technology is commonly used to track and manage inventory throughout the supply chain? a) Customer Relationship Management (CRM)
b) Enterprise Resource Planning (ERP)
c) Radio Frequency Identification (RFID)
d) Balanced Scorecard Answer: c) Radio Frequency Identification (RFID)
What is the primary objective of demand forecasting in supply chain management? a) Increase production speed
b) Predict future customer demand
c) Improve supplier relationships
d) Reduce product development time Answer: b) Predict future customer demand
Which of the following is a key benefit of effective supply chain management? a) Increased production costs
b) Improved customer satisfaction
c) Higher inventory levels
d) Decreased product quality Answer: b) Improved customer satisfaction
What does the term “supply chain visibility” refer to? a) The ability to see the physical location of goods
b) The transparency and availability of information throughout the supply chain
c) The marketing of supply chain operations
d) The overall length of the supply chain Answer: b) The transparency and availability of information throughout the supply chain
Which performance metric measures how well a supply chain fulfills customer orders? a) Order cycle time
b) Perfect order rate
c) Inventory turnover
d) Fill rate Answer: b) Perfect order rate
What is the purpose of a distribution center in the supply chain? a) To produce goods
b) To serve as a central point for receiving, storing, and distributing products
c) To manage supplier relationships
d) To handle customer returns Answer: b) To serve as a central point for receiving, storing, and distributing products
Which of the following strategies involves suppliers managing inventory levels for their customers? a) Just-in-Time (JIT)
b) Vendor Managed Inventory (VMI)
c) Economic Order Quantity (EOQ)
d) Total Quality Management (TQM) Answer: b) Vendor Managed Inventory (VMI)
Which of the following best describes a push-based supply chain? a) Products are manufactured based on actual customer orders
b) Inventory is produced in advance based on forecasted demand
c) Supply chain operations start only when there is customer demand
d) Inventory levels are minimized throughout the supply chain Answer: b) Inventory is produced in advance based on forecasted demand
What is the bullwhip effect in supply chain management? a) An increase in customer demand variability
b) The fluctuation of orders in the supply chain due to variability in demand
c) A decrease in supplier reliability
d) The smoothing of demand over time Answer: b) The fluctuation of orders in the supply chain due to variability in demand
Which process involves selecting suppliers, negotiating contracts, and managing supplier relationships? a) Procurement
b) Manufacturing
c) Distribution
d) Inventory management Answer: a) Procurement
What is the main objective of supply chain integration? a) Reducing costs
b) Improving coordination and collaboration among supply chain partners
c) Increasing production capacity
d) Enhancing marketing efforts Answer: b) Improving coordination and collaboration among supply chain partners
Which performance metric measures the speed at which inventory moves through the supply chain? a) Fill rate
b) Order cycle time
c) Inventory turnover
d) Perfect order rate Answer: c) Inventory turnover
What is the primary focus of sustainable supply chain management? a) Reducing costs
b) Enhancing environmental and social responsibility
c) Increasing market share
d) Improving employee productivity Answer: b) Enhancing environmental and social responsibility