30 Questions
What is an important consideration in supply chain design?
Product design
What does a seasonal index measure in forecasting?
Ratio of average seasonal demand to average demand for all periods
What would be the cost savings if a company increases its inventory turns from four to six?
$15,750,000
What is an advantage of using a third-party logistics service (3PL)?
Cost structure due to economies of scale
What is the benefit of incorporating supplier input into product and process design?
Reduce time to market
What is a supply chain design consideration?
Product design
What is a key characteristic that distinguishes a supplier alliance agreement from a blanket purchase order?
A shared vision of added value
Which customer relationship management activity is most directly related to revenue generation?
Generating customer leads
What is a typical action taken as part of a reverse logistics strategy?
Batching returns of defective components to suppliers
What is the most effective way to select a service provider when outsourcing IT support to a low-cost region on another continent?
Visiting several potential providers before making a selection
What is continuous improvement best described as?
A series of ongoing improvements
What is the primary goal of a supplier alliance agreement?
To achieve a shared vision of added value
What type of distribution center serves both retailers and online sales?
Centralized distribution center
What decision is most likely affected by the difference in costing systems between a manufacturer and supplier?
Make-or-buy
Which of the following is an example of vertical integration?
Producing components used internally
What is the term for grouping customers based on specific characteristics they desire from products and services?
Market segmentation
Which of the following indicators is most appropriate to measure supply chain utilization?
Net asset turnover
What is the term for separating customers into groups based on specific characteristics they desire from products and services?
Customer segmentation
What type of companies would a manufacturer outsource its transportation and return processing to?
Third party logistics providers
What is the primary goal of analyzing the buying history for each market segment?
To identify the requirements of the end customers
What approach would be most effective in identifying the requirements of end customers for each market segment?
Conducting a market research project
When considering the consequences of product design decisions, companies view the reverse supply chain as an extension of the:
Forward supply chain
What should a company do if a global product is no longer profitable?
Analyze product profitability by market segment
What is the primary goal of reverse supply chain management?
To minimize waste and environmental impact
What happens to inventory velocity when a company implements a supplier relationship management system?
It is reduced
What is the major challenge in implementing a supplier relationship management system for direct materials?
Complexity of the purchasing process
Which sustainability tool is most appropriate for managing environmental compliance with legislative and regulatory requirements?
ISO 14000
What do inventory parameters established using analytic inventory techniques typically balance?
Customer service and inventory costs
What type of design is a product design that can be produced to requirements even when conditions in the production process are unfavorable?
Robust
During which phase of a supplier/customer relationship is it most appropriate to measure spending per customer as a proportion of profitability?
Customer loyalty
Test your knowledge of supply chain management with these questions on design decisions, forecasting techniques, and more.
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