LGM 2213 - Chp 1

Supply chain management (SCM) focuses only on manufacturing processes

• True

• False

One of the key principles of SCM is to customize logistics networks based on customer needs

• True

• False

Purchasing in supply chain management involves ensuring the company has materials and supplies before they are needed.

• True

• False

Standardization in SCM always increases costs due to lack of customization.

• True

• False

What is the primary goal of Supply Chain Management (SCM)?

• a) Reducing costs only

• b) Integrating business processes to add value for customers

• c) Increasing warehouse storage capacity
  

• d) Eliminating logistics and distribution

Which of the following is NOT a key element of SCM?

• a) Integration

• b) Operations

• c) Product packaging

• d) Distribution

What is the main purpose of demand management in SCM?

• a) Ensuring all suppliers get equal orders

• b) Managing customer complaints

• c) Balancing supply and demand to avoid excess or shortage

• d) Increasing supplier costs

Which principle of SCM suggests that companies should segment their supply chain based on customer needs?

• a) Differentiate Products Close to Customer

• b) Align Demand Planning Across Supply Chain

• c) Adapt Supply Chain to Customer’s Needs

• d) Outsource Strategically

5. What is the role of logistics software in SCM?

• a) Reducing product quality checks

• b) Managing shipments efficiently

• c) Increasing paperwork in warehouses

• d) Limiting supplier communication

6. The bullwhip effect in SCM refers to:

• a) A stable supply chain with minimal risks

• b) Increasing fluctuations in inventory levels due to inaccurate demand forecasting

• c) A method for reducing product costs

• d) To increase manual data entry tasks