What is the primary objective of supply chain management? a) Maximizing production
b) Reducing costs
c) Enhancing customer satisfaction
d) Increasing market share Answer: c) Enhancing customer satisfaction
Which of the following best describes a supply chain? a) A network of production facilities
b) A sequence of processes involved in the production and distribution of a product
c) A list of suppliers and vendors
d) A chain of retail stores Answer: b) A sequence of processes involved in the production and distribution of a product
What is the role of logistics in supply chain management? a) Marketing products
b) Planning and controlling the efficient flow of goods and services
c) Designing products
d) Managing human resources Answer: b) Planning and controlling the efficient flow of goods and services
Which of the following is a key component of supply chain management? a) Product development
b) Customer relationship management
c) Inventory management
d) Human resource management Answer: c) Inventory management
What is the primary goal of inventory management in the supply chain? a) Maximizing inventory levels
b) Minimizing stockouts and holding costs
c) Reducing employee turnover
d) Increasing market share Answer: b) Minimizing stockouts and holding costs
Which of the following strategies is focused on reducing the time it takes for products to move through the supply chain? a) Just-in-Time (JIT)
b) Economic Order Quantity (EOQ)
c) Vendor Managed Inventory (VMI)
d) Total Quality Management (TQM) Answer: a) Just-in-Time (JIT)
What is the purpose of a supply chain management system (SCMS)? a) To automate marketing processes
b) To streamline supply chain operations
c) To enhance employee performance
d) To improve product design Answer: b) To streamline supply chain operations
Which of the following is NOT a key driver of supply chain performance? a) Facilities
b) Inventory
c) Pricing
d) Product design Answer: d) Product design
What does the bullwhip effect in supply chain management refer to? a) Increasing customer demand variability
b) Decreasing supplier reliability
c) Variability in order sizes within the supply chain
d) Improving communication among supply chain partners Answer: c) Variability in order sizes within the supply chain
Which of the following best describes a push-based supply chain strategy? a) Products are made to order
b) Inventory is produced in advance based on forecasted demand
c) Products are customized based on individual orders
d) Supply chain operations are delayed until customer orders are received Answer: b) Inventory is produced in advance based on forecasted demand
What is the main advantage of a pull-based supply chain strategy? a) Higher inventory levels
b) Reduced lead times
c) Increased forecast accuracy
d) Lower production costs Answer: b) Reduced lead times
Which of the following technologies is commonly used to improve supply chain visibility? a) Enterprise Resource Planning (ERP) systems
b) Customer Relationship Management (CRM) systems
c) Radio Frequency Identification (RFID)
d) Human Resource Information Systems (HRIS) Answer: c) Radio Frequency Identification (RFID)
In supply chain management, what does the term “outsourcing” refer to? a) Hiring temporary employees
b) Using external suppliers to perform tasks previously done in-house
c) Moving production facilities overseas
d) Selling products through external channels Answer: b) Using external suppliers to perform tasks previously done in-house
Which performance metric measures the efficiency of the supply chain in fulfilling customer orders? a) Order cycle time
b) Perfect order rate
c) Inventory turnover
d) Fill rate Answer: b) Perfect order rate
What is the primary focus of supply chain sustainability? a) Reducing costs
b) Improving efficiency
c) Minimizing environmental impact and promoting social responsibility
d) Increasing market share Answer: c) Minimizing environmental impact and promoting social responsibility
Which of the following is a benefit of effective supply chain management? a) Increased production costs
b) Improved customer satisfaction
c) Decreased market share
d) Higher inventory levels Answer: b) Improved customer satisfaction
What is Vendor Managed Inventory (VMI)? a) A system where the supplier manages inventory levels for the customer
b) A system where the customer orders inventory directly from vendors
c) A technique for reducing production costs
d) A method for increasing inventory turnover Answer: a) A system where the supplier manages inventory levels for the customer
Which of the following is a key challenge in global supply chain management? a) High local demand
b) Complex logistics and transportation
c) Limited product variety
d) Stable political environments Answer: b) Complex logistics and transportation
What is the primary objective of demand forecasting in supply chain management? a) Reducing production costs
b) Predicting future customer demand
c) Improving employee productivity
d) Increasing supplier reliability Answer: b) Predicting future customer demand
Which of the following is an example of a supply chain risk? a) High customer demand
b) Supplier failure
c) Increased market share
d) Stable supply prices Answer: b) Supplier failure