Quiz 2 SCM

Which of the following best describes the "bullwhip effect" in supply chain management?

• A situation where suppliers reduce inventory to cut costs

• Demand fluctuations become amplified as they move up the supply chain

• A strategy to improve supply chain agility

• A method for reducing lead times

Which inventory management technique aims to reduce holding costs by receiving goods only when needed?

• Economic Order Quantity (EOQ)

• Just-in-Time (JIT)

• Vendor Managed Inventory (VMI)

• First-In-First-Out (FIFO)

In supply chain management, what is the main purpose of implementing an Enterprise Resource Planning (ERP) system?

• To track only financial transactions

• To automate warehouse operations without integrating with suppliers

• To provide real-time data visibility and coordination across supply chain activities

• To eliminate all transportation costs

What is the primary benefit of supplier relationship management (SRM) in a manufacturing supply chain?

• Increased supplier competition

• Improved procurement costs and supplier performance

• Avoiding long-term contracts with suppliers

• Reducing the need for supply chain transparency

Which transportation mode is most cost-effective for shipping bulk raw materials over long distances?

• Air freight

• Rail transport

• Road transport

• Courier service

A manufacturer wants to improve demand forecasting accuracy. Which of the following strategies is the least effective?

• Using historical sales data and predictive analytics

• Collaborating with suppliers and retailers to share demand information

• Ignoring external factors such as market trends and seasonality

• Implementing machine learning algorithms for demand prediction

Which supply chain strategy focuses on minimizing costs while meeting predictable demand with stable production schedules?

• Agile supply chain

• Lean supply chain

• Push supply chain

• Demand-driven supply chain

What is the key advantage of outsourcing manufacturing to a third-party supplier?

• Complete control over product quality

• Reduction in capital investment and production costs

• Increased lead times for order fulfillment

• Elimination of the need for logistics management

A manufacturing company experiences frequent stockouts. What would be the most effective corrective action?

• Increasing safety stock levels

• Reducing lead times through better supplier collaboration

• Implementing an automated demand forecasting system

• All of the above

What is the primary function of a third-party logistics (3PL) provider in a supply chain?

• Manufacturing products for the company

• Managing transportation, warehousing, and distribution services

• Acting as a direct supplier of raw materials

• Controlling pricing strategies for retailers