D470 Competency 3

Why might a company choose to hold stock? 

• To avoid paying taxes

• To minimize production costs and accommodate variations in demand

• To reduce customer service needs

• To increase lead times

Which of the following is NOT a type of stock typically held by companies in supply chains?

• Raw material stocks

• Seasonal stock 

• Finished products

• Environmental stock 

What does ABC analysis help companies minimize?

• Labor costs 

• Excess inventory

• Capital investment 

• Safety stock

Which system involves centralized inventory from which customers are supplied directly?

• Echelon system

• Direct system

• Mixed system

• Push system

What is the term used to describe the amplification of small changes in demand as they move back through the supply chain?

• Demand surge

• Bullwhip effect 

• Supply chain ripple

• Forecast fluctuation

The balanced scorecard translates a company’s strategic mission into tangible objectives and measures in which four perspectives?

• Assets, Cost, Time, Inventory

• Financial, Customer, Internal, Innovation & Learning

• Profit, Cost, Operations, Forecasting

• Productivity, Lead time, Flexibility, Orders

What is the purpose of the SCOR® model in supply chain management?

• To set logistics KPIs 

• To enable flexible budgeting

• To monitor cost and performance 

• To provide variance analysis 

Which of the following is NOT an objective of performance monitoring and control?

• Enable effective provision of logistics services

• Achieve future business objectives 

• Increase lead time in operations 

• Support planning and control of operations

Which accounting method addresses problems like the inability to identify cost implications for specific markets?

• Activity-Based Costing (ABC)

• Fixed Costing 

• Balanced Scorecard

• Flexible Budgeting 

What is one of the primary reasons organizations choose to outsource logistics operations?

• To reduce employee salaries 

• To focus on core business or competence

• To eliminate supply chain risks

• To improve product quality