Supply Chain Design and Planning: Master the Fundamentals

Question 1

Which of the following is NOT an advantage of effective supply chain planning and forecasting?

Accepted Answer

Increased supply chain risk and vulnerability

Answer

Lower inventory costs

Answer

Enhanced customer satisfaction

Answer

Improved production efficiency

Question 2

When a business prioritizes sustainability, which factor is most important when evaluating supplier performance?

Accepted Answer

Supplier's environmental practices

Answer

Supplier's location

Answer

Supplier's payment terms

Answer

Supplier's delivery speed

Question 3

How can artificial intelligence (AI) enhance supply chain efficiency and agility?

Accepted Answer

Automating and optimizing supply chain processes for improved efficiency and accuracy.

Accepted Answer

Analyzing data to predict demand patterns, enabling better inventory management and reducing waste.

Accepted Answer

Facilitating collaboration and communication among supply chain partners for improved coordination and resilience.

Answer

Requiring significant investment and expertise, which may hinder its widespread adoption.

Question 4

Which of these is LEAST effective for reducing supply chain risks?

Accepted Answer

Keeping all inventory in one place

Answer

Using multiple suppliers

Answer

Having two sources for important materials

Answer

Predicting future customer demand

Question 5

Which of the following is NOT a key component of supply chain design and planning?

Accepted Answer

Product packaging

Answer

Supply chain network design

Answer

Supplier selection

Answer

Inventory tracking and control

Question 6

What is the primary goal of supplier selection in supply chain management?

Accepted Answer

To ensure reliable and high-quality supply

Answer

To minimize procurement costs only

Answer

To enhance product quality solely

Answer

To optimize customer responsiveness independently

Question 7

Which inventory management strategy aims to minimize inventory levels?

Accepted Answer

Just-in-time (JIT)

Answer

Economic order quantity (EOQ)

Answer

Fixed order quantity (FOQ)

Answer

Safety stock

Question 8

What is the primary purpose of maintaining safety stock in inventory management?

Accepted Answer

To mitigate the risk of stockouts during unexpected demand surges

Answer

To reduce the need for frequent production runs

Answer

To minimize inventory holding costs

Answer

To improve customer fill rates

Question 9

What is the fundamental difference between a centralized and a decentralized supply chain network?

Accepted Answer

Centralized: decisions made at a single location; Decentralized: decisions made at multiple locations

Answer

Centralized: focus on cost efficiency; Decentralized: focus on flexibility

Answer

Centralized: higher transportation costs; Decentralized: lower inventory costs

Answer

Centralized: suitable for large organizations; Decentralized: suitable for small organizations

Question 10

What is the ultimate goal of supply chain management?

Accepted Answer

To optimize customer satisfaction and value

Answer

To minimize costs and maximize profits

Answer

To increase market share and dominance

Answer

To improve product quality and reduce defects

Question 11

How do effective logistics and distribution practices directly improve customer service and satisfaction?

Accepted Answer

By ensuring on-time and accurate deliveries

Answer

By minimizing inventory levels

Answer

By reducing production costs

Answer

By facilitating communication with suppliers

Question 12

Which of the following is **not** a valid criterion for evaluating supplier performance?

Accepted Answer

Personal relationships with suppliers

Answer

Quality of products or services

Answer

Price and cost of goods

Answer

Supplier's reliability and consistency

Question 13

What is the primary purpose of a supply chain network?

Accepted Answer

To map the flow of goods and services from suppliers to customers

Answer

To identify potential bottlenecks and inefficiencies

Answer

To optimize transportation routes and delivery schedules

Answer

To manage inventory levels and ensure product availability

Question 14

The primary purpose of inventory management within supply chain planning is to:

Accepted Answer

Balance product availability with storage costs

Answer

Minimize production downtime

Answer

Maximize sales revenue

Question 15

The 'bullwhip effect' in supply chain management refers to:

Accepted Answer

Demand fluctuations that amplify as they move upstream in the supply chain

Answer

Delays and disruptions in production and delivery

Answer

Excessive inventory buildup due to poor forecasting

Question 16

A technique used to mitigate the bullwhip effect is:

Accepted Answer

Collaborative forecasting and information sharing

Answer

Outsourcing production to overseas suppliers

Answer

Implementing price-sensitive demand strategies

Answer

Increasing buffer inventory at all levels

Question 17

The concept of 'lean' in supply chain management emphasizes:

Accepted Answer

Eliminating waste and optimizing resource usage

Answer

Maximizing production volume and minimizing costs

Answer

Increasing inventory levels to enhance customer service

Question 18

A potential benefit of adopting a sustainable supply chain is:

Accepted Answer

Reduced environmental impact, enhanced customer loyalty, and improved risk management

Answer

Increased production costs, reduced product quality, and lower profit margins

Answer

Simplified operations, streamlined logistics, and automated processes

Question 19

Data analytics can be leveraged in supply chain planning to:

Accepted Answer

Predict demand, optimize inventory levels, and identify inefficiencies

Answer

Automate financial processes, streamline administrative tasks, and generate reports

Answer

Reduce employee turnover, improve customer satisfaction, and increase market share

Question 20

When evaluating supplier performance, a key consideration is:

Accepted Answer

Quality, delivery reliability, and cost competitiveness

Answer

Brand recognition, social media presence, and market reputation

Answer

Employee turnover, workplace culture, and environmental sustainability

Question 21

Implementing a supply chain management system can result in:

Accepted Answer

Enhanced visibility, improved collaboration, and streamlined processes

Answer

Reduced sales volume, increased production costs, and lower customer satisfaction

Answer

Increased complexity, reduced flexibility, and slower response times