- What is ‘Supply Chain Cost Management’?A) The process of tracking and reducing costs associated with managing the supply chain, including procurement, production, and logistics.B) The financial analysis of marketing strategies
C) The budgeting of employee salaries
D) The management of retail store expenses
Answer: A) The process of tracking and reducing costs associated with managing the supply chain, including procurement, production, and logistics.
- Which financial metric is commonly used to assess the efficiency of inventory management in the supply chain?A) Return on Investment (ROI)B) Inventory Turnover Ratio
C) Gross Profit Margin
D) Earnings Before Interest and Taxes (EBIT)
Answer: B) Inventory Turnover Ratio
- What does ‘Total Cost of Ownership’ (TCO) encompass in supply chain management?A) The initial purchase price of goods onlyB) All costs associated with acquiring, using, and disposing of a product over its entire lifecycle
C) The cost of warehousing only
D) The cost of employee training
Answer: B) All costs associated with acquiring, using, and disposing of a product over its entire lifecycle
- Which of the following is a key component of ‘Working Capital Management’ in the supply chain?A) Managing fixed assetsB) Controlling inventory levels, accounts receivable, and accounts payable to ensure liquidity and operational efficiency
C) Handling long-term investments
D) Managing company equity
Answer: B) Controlling inventory levels, accounts receivable, and accounts payable to ensure liquidity and operational efficiency
- What is the purpose of ‘Cost-Benefit Analysis’ in supply chain decisions?A) To evaluate the financial implications of different supply chain strategies and determine the most cost-effective optionB) To assess employee performance
C) To calculate marketing expenses
D) To determine product pricing
Answer: A) To evaluate the financial implications of different supply chain strategies and determine the most cost-effective option
- How does ‘Economic Order Quantity’ (EOQ) help in supply chain management?A) By optimizing the quantity of inventory ordered to minimize total inventory costs, including holding and ordering costsB) By increasing production speed
C) By maximizing marketing expenditure
D) By reducing employee turnover
Answer: A) By optimizing the quantity of inventory ordered to minimize total inventory costs, including holding and ordering costs
- What is ‘Cash-to-Cash Cycle Time’ in supply chain finance?A) The period between when a company invests in raw materials and when it receives cash from product salesB) The time taken to pay off long-term debts
C) The duration of marketing campaigns
D) The time needed to hire new employees
Answer: A) The period between when a company invests in raw materials and when it receives cash from product sales
- Which financial statement is crucial for assessing the overall financial health of a supply chain operation?A) Income StatementB) Balance Sheet
C) Cash Flow Statement
D) All of the above
Answer: D) All of the above
- What does ‘Supplier Financing’ involve in supply chain management?A) Providing loans to suppliers to help them maintain liquidity and continue operationsB) Offering discounts for early payments
C) Expanding marketing efforts
D) Increasing production capacity
Answer: A) Providing loans to suppliers to help them maintain liquidity and continue operations
- How can ‘Lean Supply Chain Management’ impact financial performance?A) By increasing inventory levels to ensure product availabilityB) By reducing waste and streamlining processes, leading to cost savings and improved profitability
C) By expanding into new markets
D) By increasing the number of suppliers
Answer: B) By reducing waste and streamlining processes, leading to cost savings and improved profitability