1. Which of the following is NOT a key objective of supply chain management?
A. Cost reduction
B. Inventory optimization
C. Decreasing customer satisfaction
D. Improving efficiency
2. Just-in-time (JIT) is a strategy primarily focused on ___.
A. Minimizing transportation costs
B. Maximizing inventory levels
C. Increasing production downtime
D. Reducing lead times
3. The Bullwhip Effect refers to ____.
A. Smooth supply chain operations
B. Consistent demand patterns
C. Amplification of demand fluctuations
D. Minimal inventory holding costs
4. Which of the following is NOT a primary function of warehousing in supply chain management?
A. Inventory storage
B. Transportation
C. Order processing
D. Consolidation
5. RFID (Radio Frequency Identification) technology is primarily used for ____.
A. Tracking inventory
B. Forecasting demand
C. Optimizing production schedules
D. Managing supplier relationships
6. Vendor Managed Inventory (VMI) is a practice where ____.
A. Suppliers manage the inventory levels at customer locations
B. Customers manage the inventory levels at supplier locations
C. Both customers and suppliers independently manage their inventory levels
D. Inventory is managed by a third-party logistics provider
7. Which supply chain strategy focuses on producing customized products in small batches?
A. Lean manufacturing
B. Agile supply chain
C. Mass production
D. Push strategy
8. The Total Cost of Ownership (TCO) includes ____.
A. Only the purchase price of a product
B. Acquisition costs, operating costs, and end-of-life costs
C. Transportation costs only
D. Labor costs associated with production
9. A critical aspect of supply chain risk management is ____.
A. Eliminating all risks
B. Ignoring potential disruptions
C. Identifying and mitigating risks
D. Outsourcing risk management entirely
10. Which metric measures a company's ability to meet customer demand without delay?
A. Perfect Order Fulfilment
B. Inventory Turnover
C. Fill Rate
D. On-time Delivery
11. Cross-docking is a strategy primarily aimed at ____.
A. Maximizing inventory holding costs
B. Minimizing transportation costs
C. Increasing order processing time
D. Expanding warehouse space
12. Which inventory management technique involves categorizing items based on their importance and
managing each category differently?
A. Economic Order Quantity (EOQ)
B. ABC analysis
C. Just-in-time (JIT)
D. Reorder Point (ROP)
13. Collaborative planning, forecasting, and replenishment (CPFR) involve ____.
A. Outsourcing production planning to suppliers
B. Maintaining high levels of inventory to ensure product availability
C. Sharing information and coordinating activities between trading partners
D. Minimizing communication with customers and suppliers
14. Which of the following is NOT a benefit of supply chain visibility?
A. Improved decision-making
B. Reduced risk of disruptions
C. Increased lead times
D. Enhanced customer satisfaction
15. A company implementing Vendor Managed Inventory (VMI) is likely to experience ____.
A. Decreased stockouts
B. Increased inventory levels
C. Longer order processing times
D. Reduced reliance on suppliers
16. Which supply chain performance metric measures the amount of time required to convert raw
materials into finished products?
A. Order cycle time
B. Inventory turnover ratio
C. Cash-to-cash cycle time
D. Manufacturing lead time
17. Demand forecasting helps supply chain managers to ____.
A. Eliminate all demand variability
B. Plan production schedules with certainty
C. Make informed decisions about inventory levels
D. Increase stockouts and backorders
18. Which supply chain management concept emphasizes minimizing waste and maximizing efficiency?
A. Lean manufacturing
B. Six Sigma
C. Kaizen
D. Total Quality Management (TQM)
19. The Pareto Principle (80/20 rule) suggests that ____.
A. 80% of sales come from 20% of customers
B. 20% of sales come from 80% of customers
C. 80% of inventory turnover comes from 20% of products
D. 20% of inventory turnover comes from 80% of products
20. Which of the following is NOT a component of the SCOR model?
A. Plan
B. Source
C. Sell
D. Deliver
