((hot)) - Supply Chain Management Midterm Exam Questions

Economies of scale refers to an increase in average unit cost as volume increases. Answer: False. It refers to a reduction in average cost.

If you are currently preparing for your test, let me know which specific areas you want to focus on. I can generate a , break down complex mathematical formulas , or provide a step-by-step review of a specific supply chain case study . Share public link

Supply Chain Management (SCM) is the backbone of modern business, encompassing the planning, execution, and control of all activities involved in sourcing, procurement, conversion, and logistics. For students, mastering this subject requires more than rote memorization; it requires understanding the strategic, tactical, and operational interconnectedness of companies.

The forecast for June was 500 units. Actual demand in June was 550 units. Use a smoothing constant ($\alpha$) of 0.2 to calculate the forecast for July. supply chain management midterm exam questions

A) Outsource non-core logistics activities and reduce capital investment. B) Take over the corporate strategic planning division. C) Artificially inflate the price of products. D) Eliminate the need for customer service departments. Answer: A.

A company must choose between a cheap, long-lead-time supplier in Asia versus an expensive, fast-response supplier in Mexico. (Tests your understanding of Total Cost of Ownership).

A) 80% of the total inventory items but only 10% of the total dollar value. Economies of scale refers to an increase in

Memorize EOQ, safety stock, and reorder point calculations.

Capital tied up in transit for weeks while goods cross oceans.

(10 marks) Reorder point with variable lead time Daily demand is 80 units (constant). Lead time is random: with probability 0.6 lead time = 4 days; with probability 0.3 lead time = 6 days; with probability 0.1 lead time = 10 days. Target cycle service level = 95%. Demand during lead time variability only arises from lead time (demand per day constant). Compute the reorder point including safety stock. (Show calculations and any assumptions.) If you are currently preparing for your test,

Define both terms using market predictability.

As he left the hall, Leo realized the true genius of the exam: the questions didn’t have right answers. They had responsibilities . And that was the whole point of supply chain management. Not to move boxes. To move choices—each one a tiny ship deviating south, a lemonade stand amplifying chaos, a surgeon’s hand waiting for a kit that might not come.