Supply Chain Management Overview: Definition and Key Concepts

Question 1

The overarching objective of supply chain management is to:

Accepted Answer

Optimize the flow of goods, services, and information from suppliers to customers

Answer

Maximize profits and minimize costs

Answer

Increase production capacity

Answer

Enhance employee satisfaction

Question 2

The term 'value chain' refers to the:

Accepted Answer

Sequence of processes that add value to a product or service

Answer

List of suppliers involved in a supply chain

Answer

Number of customers served by a company

Answer

Amount of profit generated by a company

Question 3

Which of the following industries typically has a highly complex and geographically dispersed supply chain?

Accepted Answer

Electronics

Answer

Healthcare

Answer

Education

Answer

Agriculture

Question 4

The 'Just-in-Time' (JIT) inventory management strategy aims to:

Accepted Answer

Minimize inventory levels and improve cash flow

Answer

Increase production capacity to meet demand fluctuations

Answer

Enhance product quality and reduce defects

Answer

Improve customer service and loyalty

Question 5

Which of the following is **not** a key component of supply chain management?

Accepted Answer

Design and development

Answer

Planning

Answer

Sourcing

Answer

Manufacturing

Question 6

How does supply chain management differ from logistics?

Accepted Answer

Supply chain management encompasses the entire flow of goods and services, while logistics focuses solely on transportation and storage.

Answer

Logistics is a broader concept that includes supply chain management.

Answer

They are essentially the same concept, just used in different contexts.

Answer

Supply chain management is concerned with suppliers, while logistics deals with customers.

Question 7

What does the triple bottom line approach in supply chain management involve?

Accepted Answer

Balancing economic, environmental, and social considerations

Answer

Focusing exclusively on profit maximization

Answer

Prioritizing customer needs over all else

Answer

Ignoring ethical and sustainability concerns

Question 8

Which of the following is **not** a key metric used to evaluate supply chain performance?

Accepted Answer

Gross domestic product (GDP)

Answer

Inventory turnover ratio

Answer

Customer service level

Answer

On-time delivery

Question 9

Which of the following is NOT a key component of supply chain management in the context of a modern business environment?

Accepted Answer

Sales and marketing

Answer

Planning

Answer

Sourcing

Answer

Manufacturing

Question 10

What is the central goal of supply chain management?

Accepted Answer

To maximize customer satisfaction and value delivery

Answer

To exclusively minimize operational costs

Answer

To solely increase production efficiency

Answer

To ensure environmental sustainability

Question 11

What is the primary distinction between a supply chain and a value chain?

Accepted Answer

A supply chain encompasses all activities involved in delivering a product, while a value chain focuses on creating value for the end consumer

Answer

A supply chain focuses solely on internal processes, while a value chain considers external customer impact

Answer

A supply chain is a linear concept, while a value chain is cyclical

Answer

There is no fundamental difference between a supply chain and a value chain

Question 12

Which of the following is NOT a common measure used to evaluate supply chain performance?

Accepted Answer

Sales volume

Answer

Cost

Answer

Quality and customer satisfaction

Answer

Flexibility and agility

Question 13

What is the role of a supply chain manager?

Accepted Answer

To oversee all aspects of the supply chain and develop strategies

Answer

To manage inventory levels and negotiate with suppliers

Answer

To forecast demand and plan production schedules

Answer

To handle customer service inquiries and resolve supply chain disruptions

Question 14

Which of the following industries is NOT heavily reliant on supply chain management?

Accepted Answer

Education

Answer

Manufacturing

Answer

Retail

Answer

Healthcare

Question 15

What is the difference between a supply chain and a value chain?

Accepted Answer

A supply chain focuses on the flow of goods and services, while a value chain focuses on the creation of value for customers

Answer

A supply chain is linear, while a value chain is cyclical

Answer

A supply chain is internal to a company, while a value chain is external

Answer

There is no difference between a supply chain and a value chain

Question 16

Which of the following provides the most comprehensive definition of supply chain management?

Accepted Answer

The coordination of all activities involved in sourcing, producing, and delivering products or services to customers.

Answer

The management of the physical flow of goods within an organization.

Answer

The process of optimizing the flow of information and resources within a business.

Question 17

What is the primary goal of supply chain management?

Accepted Answer

To meet customer demand while optimizing cost, quality, and delivery time.

Answer

To reduce waste and environmental impact.

Answer

To maximize profits for the organization.

Question 18

What is the key difference between a supply chain and a value chain?

Accepted Answer

A value chain focuses on the creation and delivery of value to customers, while a supply chain focuses on the physical flow of goods and services.

Answer

A value chain is narrower in scope than a supply chain.

Answer

A supply chain is more important than a value chain.

Question 19

What is the role of technology in supply chain management?

Accepted Answer

To improve efficiency, accuracy, and visibility.

Answer

To create new supply chain models.

Answer

To replace human workers.

Answer

To automate all supply chain processes.

Question 20

How can supply chain management contribute to sustainability?

Accepted Answer

By reducing waste, emissions, and resource consumption.

Answer

Supply chain management has no impact on sustainability.

Answer

Supply chain management can only contribute to sustainability if it is outsourced.

Question 21

What are some emerging trends in supply chain management?

Accepted Answer

Increased automation, digitalization, and globalization.

Answer

A decline in the importance of supply chain management.

Answer

The replacement of supply chains by artificial intelligence.