Supply Chain Management Quiz

What is the primary goal of supply chain management?

• Minimize costs

• Maximize profits

• Ensure product availability

• Reduce inventory levels

Which of the following is NOT a function of supply chain management?

• Procurement

• Manufacturing

• Marketing

• Logistics

In the context of supply chain management, what does "lead time" refer to?

• Time taken to manufacture a product

• Time taken for a product to reach the customer from the point of order

• Time taken to deliver raw materials to the manufacturer

• Time taken to process a return

What is the bullwhip effect?

• An increase in production costs due to market fluctuations

• Variability in demand causing inefficiencies in the supply chain

• A surge in supply due to increased consumer demand

• A reduction in inventory levels to cut costs

Which of the following best describes Just-In-Time (JIT) inventory management?

• Maintaining high levels of inventory to avoid stockouts

• Keeping inventory levels at a minimum and receiving goods only when needed

• Ordering in bulk to take advantage of discounts

• Storing extra inventory to meet unexpected demand

What is cross-docking in supply chain management?

• A method of direct store delivery

• A technique where products are received and shipped out without being stored

• A process of storing goods in a warehouse

• A system for tracking inventory

Which of the following is a key benefit of an effective supply chain management system?

• Increased marketing expenditure

• Higher product prices

• Improved customer satisfaction

• Reduced employee turnover

What is the main purpose of a warehouse management system (WMS)?

• To manage customer relationships

• To optimize the storage and movement of inventory

• To forecast demand

• To handle financial transactions

Which strategy involves producing goods based on actual customer demand rather than forecasted demand?

• Push strategy

• Pull strategy

• Lean manufacturing

• Six Sigma

What does the term "reverse logistics" refer to in supply chain management?

• The process of distributing products to customers

• The return of products from the customer back to the manufacturer

• The forward movement of products through the supply chain

• The disposal of excess inventory