Supply Chain Management - MCQs
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Questions and Answers

What is a relevant goal in Total Quality Management (TQM)?

  • Maximizing output regardless of quality
  • Reducing costs at the expense of quality
  • Achieving minimal defects in manufacturing (correct)
  • Focusing solely on electronic assembly

    • What do lean principles primarily focus on?

  • Eliminating customer feedback
  • Reducing waste (correct)
  • Advanced statistical methods
  • Increasing product variety

    • What does the bullwhip effect describe in supply chain management?

  • Ineffective employee motivation techniques
  • Variability in demand orders among supply chain participants (correct)
  • Overproduction of goods
  • Inconsistent pricing strategies

    • What phenomenon occurs due to small changes in customer demand leading to larger oscillations in inventory?

    <p>Bullwhip effect (B)</p> Signup and view all the answers

    What important trend does switching supply from a U.S. manufacturer to a Chinese supplier illustrate?

    <p>Increasing Competition and Globalization (A)</p> Signup and view all the answers

    What is another term for a demand-driven system?

    <p>A pull system (C)</p> Signup and view all the answers

    Which decision phase in supply chain management involves all elements of supply chain operation?

    <p>Supply chain operation (C)</p> Signup and view all the answers

    What does benchmarking compare within an organization?

    <p>Products and processes against industry leaders (C)</p> Signup and view all the answers

    What term refers to a sign, symbol, design, or name that identifies a product or service?

    <p>Brand (C)</p> Signup and view all the answers

    In which phase of new product development is Nestle conducting customer surveys to determine potential product appeal?

    <p>Idea generation (A)</p> Signup and view all the answers

    Which stage of the product life cycle is typically the most costly for a company?

    <p>Introduction (D)</p> Signup and view all the answers

    What type of marketing system involves independent firms at different channel levels integrating their programs on a contractual basis?

    <p>Contractual vertical marketing systems (B)</p> Signup and view all the answers

    The process of introducing higher quality products into a manufacturer's line is known as what?

    <p>Trading up (B)</p> Signup and view all the answers

    What term refers to the act of designing a company’s offering and image to hold a unique position in the market's mind?

    <p>Positioning (A)</p> Signup and view all the answers

    Which includes all activities related to the supply of finished products, from production to consumers?

    <p>Supply Chain (C)</p> Signup and view all the answers

    The AIO (activities, interests, opinions) questions are utilized for analyzing which type of segmentation?

    <p>Psychographic (D)</p> Signup and view all the answers

    What is a term that defines a set of conditions used to measure how well a product or system functions?

    <p>Benchmark (B)</p> Signup and view all the answers

    Which term describes an internal organizational Internet secured against outside access?

    <p>Intranet (D)</p> Signup and view all the answers

    In which layout type are materials fed into the first machine and finished products come out of the last machine?

    <p>Product layout (A)</p> Signup and view all the answers

    Who first coined the term supply chain management?

    <p>Keith Oliver (C)</p> Signup and view all the answers

    What does EOQ stand for in inventory management?

    <p>Economic Order Quantity (B)</p> Signup and view all the answers

    What concept in supply chain management originated from the discipline of production management?

    <p>Supply chain management (D)</p> Signup and view all the answers

    What is VMI commonly known as in supply chain terminology?

    <p>Vendor managed inventory (C)</p> Signup and view all the answers

    What does TQM stand for in quality management?

    <p>Total quality management (B)</p> Signup and view all the answers

    Which of the following best describes the goal of lean production?

    <p>Elimination of waste (A)</p> Signup and view all the answers

    The bullwhip effect is primarily related to which phenomenon?

    <p>Demand variations (B)</p> Signup and view all the answers

    What term describes the practice of selling additional products to the same customer?

    <p>Cross selling (D)</p> Signup and view all the answers

    What is the cost incurred for unsold items at the end of a selling period called?

    <p>Holding cost (D)</p> Signup and view all the answers

    Customer Relationship Management primarily focuses on which aspect?

    <p>All of the above (D)</p> Signup and view all the answers

    An intranet that is available to select outsiders, such as customers and suppliers, is referred to as what?

    <p>Extranet (D)</p> Signup and view all the answers

    The process of introducing higher quality products by a manufacturer is termed what?

    <p>Trading up (A)</p> Signup and view all the answers

    In which stage of a product life cycle would a company likely cut back on advertising expenditures?

    <p>Decline (A)</p> Signup and view all the answers

    What is the term used to describe extra stock maintained to mitigate risks of stock outs?

    <p>Safety Stock (D)</p> Signup and view all the answers

    What distribution strategy gives intermediaries exclusive rights to market a product in a defined territory?

    <p>Exclusive Distribution (B)</p> Signup and view all the answers

    Which of the following describes a group of buyers that a company aims to serve?

    <p>Target Market (A)</p> Signup and view all the answers

    What is the alternative term for safety inventory?

    <p>Buffer Stock (C)</p> Signup and view all the answers

    What is the term for the time period between placing an order and its receipt?

    <p>Lead Time (C)</p> Signup and view all the answers

    What is the objective of effective inventory management?

    <p>Determining optimum reorder levels (B)</p> Signup and view all the answers

    Which of the following costs are related to inventory?

    <p>Inventory Holding Costs (A), Re-order Costs (D)</p> Signup and view all the answers

    Which type of layout is best for manufacturing standard products in large quantities?

    <p>Product Layout (A)</p> Signup and view all the answers

    Flashcards

    Lean principles

    Lean principles are a set of strategies and methods aimed at eliminating waste and maximizing efficiency within a supply chain.

    Bullwhip effect

    The bullwhip effect refers to the increasing variability in demand orders as you move up the supply chain from customer to supplier.

    Increased Competition and Globalization

    Companies face more competition and more global competition as they expand their supply chains.

    Demand-driven system (pull system)

    A system where production is triggered by actual customer demand.

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    Benchmarking

    Comparing an organization's products and processes against industry leaders to identify areas for improvement.

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    Make-to-Stock

    A manufacturing approach where products are produced in advance of customer orders and held in inventory.

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    Supply Chain Planning

    The process of forecasting future needs and making decisions about inventory, resources, and production.

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    Minimal defects in manufacturing is the goal of TQM

    Total Quality Management (TQM) focuses on having the least amount of defects and errors in a manufacturing process

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    Product Development Phases

    The steps involved in creating and launching a new product.

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    Product Life Cycle Stages

    The typical stages a product goes through: Introduction, Growth, Maturity, Decline.

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    Vertical Marketing Systems

    Several independent firms combine their efforts to streamline distribution and market appeal.

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    Product Positioning

    The process of creating a unique image of a product in consumers' minds.

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    Supply Chain

    All the activities related to getting a product from production to the consumer.

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    Psychographic Segmentation

    Dividing consumers by their lifestyle, values, and personality.

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    Brand

    A name, term, sign, symbol, or design that identifies a product or service.

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    B2C (Business-to-Consumer)

    Business sells products/services directly to consumers.

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    Intranet

    An internal organizational internet protected from outside access by a firewall.

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    Product layout

    A layout where materials enter at the beginning and finished products exit at the end.

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    Kaizen

    A Japanese term for continuous improvement.

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    Economic Order Quantity (EOQ)

    The optimal quantity of inventory to order to minimize total inventory costs.

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    Supply Chain Management (SCM)

    The management of the flow of goods and services from origin to consumption.

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    Vendor Managed Inventory (VMI)

    A system where a supplier manages inventory levels for a customer.

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    Cash-to-Cash Cycle

    The time span between paying for raw materials and receiving payment for the finished product.

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    Lean production

    A production method focused on eliminating waste and improving speed and quality.

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    Cross-selling

    Selling related products to the same customer.

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    Holding cost

    The cost of holding unsold items in stock.

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    Customer Relationship Management (CRM)

    Strategies and processes to acquire and retain customers.

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    Trading up

    Introducing higher-quality products.

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    Safety Stock

    Extra inventory kept on hand to buffer against uncertainties in supply and demand, preventing stockouts.

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    Exclusive Distribution

    A distribution strategy where only a limited number of intermediaries, often just one, are granted exclusive rights to sell within a specific territory.

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    Target Market

    A group of customers with shared needs and characteristics that a company focuses its marketing efforts on.

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    Buffer Stock

    Another name for safety stock, the extra inventory used to mitigate supply and demand uncertainties.

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    Lead Time

    The time required to receive an ordered item, from placing the order until it's available in stock.

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    Optimum Re-order Quantity

    The ideal number of items to order when replenishing inventory, aiming for the lowest total cost of holding and ordering.

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    Inventory Holding Costs

    Expenses related to storing and managing inventory, including warehousing, insurance, and damage.

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    Milk Run

    A delivery method where a single truck picks up mixed loads from multiple suppliers to deliver to one customer.

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    Study Notes

    Supply Chain Management - MCQs

    • Minimal defects in manufacturing: A relevant goal, but not readily achievable in all areas, and often a target of Total Quality Management (TQM)
    • LEAN principles: Focus on reducing waste, rather than advanced statistics. Lean principles developed over time, are crucial for supply chain management.
    • Bullwhip effect: Inventory oscillations increase through a supply chain due to small changes in customer demands.
    • Reverse logistics: A U.S. manufacturer switching to a Chinese supplier for steel forgings is an example of a trend in operations and supply chain management, specifically less expensive supplies/increased competition/globalization.
    • Demand-driven system: A pull system, a system in which production is triggered by customer demand.
    • Decision phases in a supply chain: Key phases that include production scheduling, customer relationship management and other elements.
    • Benchmarking: A method of continuous measurement of products and processes against a recognized industry leader.
    • Information systems decisions: Important decisions need to be made during the supply chain design phase.
    • Inventory types: Beauty products can be examples for different types of inventory: Make to Order, Configure to Order, Make to Stock, and Engineer to Order.
    • Product life cycle: Maturity is a period of market acceptance and increasing profits
    • Brand identification: A name, term, sign, symbol, design, or a combination thereof that identifies a product or service—like labels, co-branding and brands.
    • New product development: When a company investigates new product expansions (like Nestlé conducting surveys to assess consumer appeal for new food products), they are in the Idea Generation Phase of new product development.
    • Product life cycle stage: The most expensive product life cycle stage is often Introduction.
    • Vertical marketing systems: Contractual vertical marketing systems are independent firms at different channel levels integrating their programs on a contractual basis to achieve systemic economies and increased market impact,.

    Other Key Concepts

    • Continuous improvement (Kaizen): A Japanese term stressing continuous improvement in processes and workflows.
    • EOQ (Economic Order Quantity): Relevant costs include holding costs and ordering costs.
    • Layout type: Product layout is used to manufacture a standard product in large quantities, when materials are fed into the first machine and finished products come out of the last machine.
    • Supply chain management (SCM): Originated in related disciplines like Production Management, Logistics Management, Marketing, and Operations Management.
    • Vendor managed inventory (VMI): A system where suppliers control inventory levels for their customers.
    • Supply chain order fill rate: A measure that represents the frequency of satisfying customer orders with available stock.
    • Supply chain flexibility: The ability of a system to change quickly and adapt to changes.
    • Cash-to-cash cycle: The time period between paying for raw materials and getting paid for services.
    • Inventory management: Aims for an optimal re-order level
    • Inventory costs: Costs associated with inventory include costs like purchase price and re-order costs and holding costs.

    Additional Details

    • Supply Chain Operations: The flow of raw materials, work-in-progress (WIP), and finished products in a forward direction. Raw materials and information flow in both directions in a supply chain.
    • Supply chain segment identification: B2B and B2C are segment types for online retailers like eBay and Amazon.
    • Segmentation types: AIO (activities, interests, opinions) questions are used for analyzing demographic segmentations.
    • Packaging and sorting: Re-arranging of goods and re-packing are functions of supply chain operations.
    • Promotional strategies: Rational selling, push, and pull strategies are promotional tools to use in sales strategies.
    • Customer Relationship Management (CRM): CRM focuses on acquiring the right customer, using the correct processes and motivating employees.

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    Supply Chain Management MCQs PDF

    Description

    Test your knowledge on supply chain management with our multiple-choice questions. This quiz covers essential concepts such as lean principles, the bullwhip effect, and reverse logistics, helping you understand the complexities of supply chain operations. Enhance your learning and prepare for your exams with these challenging questions.

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