Question 1

Supply Chain Management starts with understanding the flow. T/F

Accepted Answer

true

Question 2

The bullwhip effect can occur when the demand for a product is based on a forecast, rather than on actual consumer requirements/consumption. T/F

Accepted Answer

true

Question 3

In the Make-to-Order or Pull Model, stock is produced on the basis of anticipated (i.e., forecasted) demand. T/F

Accepted Answer

false

Question 4

The goal of Supply Chain Management is to increase customer service by increasing inventory and reducing costs. T/F

Accepted Answer

false

Question 5

Successful modern supply chain management typically includes the practice of ? A. Keeping high inventories throughout the supply chain B. Always purchasing materials with the lowest per unit cost C. Sharing information between supply chain partners D. Issuing ultimatums to your supply chain partners

Accepted Answer

C. Sharing information between supply chain partners

Question 6

In the future companies will focus on? A. Relationships B. Sustainability C. Social Responsibility D. All of the above E. B & C only

Accepted Answer

D. All of the above

Question 7

The Qualitative forecasting method is based on opinion & intuition. T/F

Accepted Answer

true

Question 8

Forecasts are most accurate for long time periods. T/F

Accepted Answer

false

Question 9

Cause-and-Effect Models can have multiple independent variables. T/F

Accepted Answer

true

Question 10

Which one of the following is not a type of qualitative forecasting? A. Sales force composite B. Consumer survey C. Jury of executive opinion D. NaÃ¯ve method

Accepted Answer

D. NaÃ¯ve method

Question 11

What does the acronym CPFR represent? A. Coordinated Planning & Forecasting Relationships B. Collaborative Planning, Forecasting, & Replenishment C. Centralized Purchasing & Forecasting Relationships D. Collaborative Purchasing, Forecasting, & Receivables

Accepted Answer

B. Collaborative Planning, Forecasting, & Replenishment

Question 12

The goal of resource planning is to minimize the discrepancy between an organization\'s capacity and demand results. T/F

Accepted Answer

true

Question 13

Material Requirement Planning is the system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization. T/F

Accepted Answer

false

Question 14

The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy. T/F

Accepted Answer

true

Question 15

The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern. T/F

Accepted Answer

false

Question 16

Which of the following is an engineering document that shows an inclusive listing of all the component parts and assemblies making up the final product? A. Master Production Schedule B. Bill of Materials C. Distribution Requirement Plan D. Resource Requirement Plan

Accepted Answer

B. Bill of Materials

Question 17

The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called: A. Resource Requirement Planning (RRP) B. Rough-cut Capacity Planning (RCCP) C. Capacity Requirement Planning (CRP) D. None of the above

Accepted Answer

B. Rough-cut Capacity Planning (RCCP)

Question 18

Which of the following MRP terms represents a committed order awaiting delivery for a specific period? A. Projected on-hand inventory B. Time bucket C. Net requirement D. Scheduled receipt

Accepted Answer

D. Scheduled receipt

Question 19

Organizations that choose to implement one single system with all of the desired applications from a single vendor is said to have chosen a: A. Best-of-breed solution B. Elite integrator solution C. Single integrator solution D. Premier application solution

Accepted Answer

C. Single integrator solution

Question 20

The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods. T/F

Accepted Answer

true

Question 21

The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual total inventory cost. T/F

Accepted Answer

true

Question 22

The top 2 primary functions of inventory are (1) Buffer against uncertainty in the marketplace  (2) Decouple dependencies in the supply chain. T/F

Accepted Answer

true

Question 23

Inventory costs which are independent of the output quantity are called? A. Indirect Costs B. Variable Costs C. Fixed Costs D. Carrying Costs

Accepted Answer

C. Fixed Costs

Question 24

Which of the following is NOT an example of an ordering cost for products purchased from a supplier? A. The cost of transmitting the order B. The cost of receiving the product C. The cost associated with processing the invoice D. The opportunity cost of not ordering from a least cost supplier E. The cost of handling the product

Accepted Answer

D. The opportunity cost of not ordering from a least cost supplier

Question 25

The primary purpose of the basic economic order quantity model is A. To calculate the reorder point, so that replenishments take place at the proper time B. To minimize the sum of carrying cost and holding cost C. To maximize the customer service level D. To minimize the sum of ordering cost and holding cost

Accepted Answer

D. To minimize the sum of ordering cost and holding cost

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