Supply Chain Exam 1 Practice Questions
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1. 30: A company operates 365 days a year. Annual inventory turn is 12. How many days of supply does that represent?
2. $1,120,000: Average inventory last year was $160,000 and turns were 7. What was cost of goods sold last year?
3. 86: A distribution center has $120,000 pounds of rock salt and the forecast is 1,400 pounds of rock salt per day.
What is the estimate of the days of supply
4. $60,000: the inventory holding cost factor is 30% and the average inventory next year is expected to be $200,000.
What is the expected inventory holding cost ?
5. units sold in a year/average number of units in inventory: Which of the following
formulae calculate annual inventory turns?
6. B.Locate stores close to a DC: The objective of Walmart's early network design strategy was to:
A. place stores in "high potential" markets
B. Locate stores close to a Distribution Center
C. Locate stores close to Bentonville
D. Use supply chain savings to drive temporary price reductions
E. All of the above
7. C.How logistics and supply chain management can be used to create a com-
petitive advantage: Which of the following is a theme throughout the course?
A. supply chain management and logistics are not the same and are not even similar.
B. Logistics is just another term for transportation
C.How logistics and supply chain management can be used to create a competitive advantage
D. Supply chain management in the same thing as logistics, but just a new term
8. Integration: Supply chain management is the management of the ___ of business processes between func-
tions a firm and with suppliers and customers
9. All of these and more: Logistics costs include which of the following?
10. All of these and more: Examples of business processes include which of the following?
11. All of these: Companies outsource for many reasons. Which of the following is typically a reason for
outsourcing
12. Economies of scale: Suppose a company orders 10 pallets of bottled water, 14 oz. per bottle and $0.05
per bottle. There are 2,000 bottles per pallet. Suppose they use a truckload carrier and it costs a flat rate of $1,000for
the transportation. So the purchase cost is $0.05 per bottle X 2,000 bottles per pallet X 10 pallets = $1,000. So the
purchase cost plus the transportation cost is $2,000, hence, the total cost per bottle is $2,,000 bottles = $0.10
1/6
, Supply Chain Exam 1 Practice Questions
Study online at https://quizlet.com/_hmtmpt
per bottle. In this example, the company only oppressed 10 pallets but a truck load has a capacity of about 20 pallets
of bottled water. Instead, suppose they ordered 20 pallets of bottled water, the transportation cost will be the same but
the purchase cost will now be $0.05 per bottle X 2,000 bottles per pallet X 20 pallets = $2,000. Hence, the purchase
cost plus the transportation cost is $3,000, so the total cost per bottle is $3,,000 bottled = $0.08 per bottle
(rounded up from $0.075 per bottle) This demonstrates which of the following concepts?
13. All of these will benefits: Which of the following benefits did Walmart achieve from their early network
design strategy
14. change logistics and supply chain management activities quickly: Responsiveness
in the 4 R's of supply chain competition is defined as being able to ...
15. The expected number of units on hand just before a replenishment is re-
ceived and available for use or sale: Safety stock is ____
16. Product C: Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of sales = 18 Standard deviation of lead time = 23
Product B: Standard Deviation of sales = 20 Standard deviation of lead time = 20
Product C: Standard Deviation of sales = 30 Standard deviation of lead time = 31
Product D: Standard Deviation of sales = 29 Standard deviation of lead time = 15
17. Standard deviation & coefficient of variation: Which of the following are measures of
reliability of a logistics process?
18. The cost of ownership: Is the idea that there are many other costs than just the acquisition cost that
should be accounted for in a purchase.
19. Transaction: The ____ component of customer service includes common metrics of consumer service such
as percentage of items in stock, percentage of time an item is in stock, fill rate, lead time, et cetera
20. All of these: A leveling of production costs between China, Mexico, and the United States means that U.S. firms
will increasingly focus on ____ to be competitive
21. The calculated percentage of items in stock is 70% (assuming perpetual
inventory is accurate): If store perpetual inventory is greater than zero for 70 of the 100 SKUs in a category,
then
22. The calculated percentage of time in stock is 45% (assuming perpetual
inventory is accurate): If store perpetual inventory is greater than zero for 45 days of the 100 days checked
for a particular item in a category then,
2/6
Study online at https://quizlet.com/_hmtmpt
1. 30: A company operates 365 days a year. Annual inventory turn is 12. How many days of supply does that represent?
2. $1,120,000: Average inventory last year was $160,000 and turns were 7. What was cost of goods sold last year?
3. 86: A distribution center has $120,000 pounds of rock salt and the forecast is 1,400 pounds of rock salt per day.
What is the estimate of the days of supply
4. $60,000: the inventory holding cost factor is 30% and the average inventory next year is expected to be $200,000.
What is the expected inventory holding cost ?
5. units sold in a year/average number of units in inventory: Which of the following
formulae calculate annual inventory turns?
6. B.Locate stores close to a DC: The objective of Walmart's early network design strategy was to:
A. place stores in "high potential" markets
B. Locate stores close to a Distribution Center
C. Locate stores close to Bentonville
D. Use supply chain savings to drive temporary price reductions
E. All of the above
7. C.How logistics and supply chain management can be used to create a com-
petitive advantage: Which of the following is a theme throughout the course?
A. supply chain management and logistics are not the same and are not even similar.
B. Logistics is just another term for transportation
C.How logistics and supply chain management can be used to create a competitive advantage
D. Supply chain management in the same thing as logistics, but just a new term
8. Integration: Supply chain management is the management of the ___ of business processes between func-
tions a firm and with suppliers and customers
9. All of these and more: Logistics costs include which of the following?
10. All of these and more: Examples of business processes include which of the following?
11. All of these: Companies outsource for many reasons. Which of the following is typically a reason for
outsourcing
12. Economies of scale: Suppose a company orders 10 pallets of bottled water, 14 oz. per bottle and $0.05
per bottle. There are 2,000 bottles per pallet. Suppose they use a truckload carrier and it costs a flat rate of $1,000for
the transportation. So the purchase cost is $0.05 per bottle X 2,000 bottles per pallet X 10 pallets = $1,000. So the
purchase cost plus the transportation cost is $2,000, hence, the total cost per bottle is $2,,000 bottles = $0.10
1/6
, Supply Chain Exam 1 Practice Questions
Study online at https://quizlet.com/_hmtmpt
per bottle. In this example, the company only oppressed 10 pallets but a truck load has a capacity of about 20 pallets
of bottled water. Instead, suppose they ordered 20 pallets of bottled water, the transportation cost will be the same but
the purchase cost will now be $0.05 per bottle X 2,000 bottles per pallet X 20 pallets = $2,000. Hence, the purchase
cost plus the transportation cost is $3,000, so the total cost per bottle is $3,,000 bottled = $0.08 per bottle
(rounded up from $0.075 per bottle) This demonstrates which of the following concepts?
13. All of these will benefits: Which of the following benefits did Walmart achieve from their early network
design strategy
14. change logistics and supply chain management activities quickly: Responsiveness
in the 4 R's of supply chain competition is defined as being able to ...
15. The expected number of units on hand just before a replenishment is re-
ceived and available for use or sale: Safety stock is ____
16. Product C: Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of sales = 18 Standard deviation of lead time = 23
Product B: Standard Deviation of sales = 20 Standard deviation of lead time = 20
Product C: Standard Deviation of sales = 30 Standard deviation of lead time = 31
Product D: Standard Deviation of sales = 29 Standard deviation of lead time = 15
17. Standard deviation & coefficient of variation: Which of the following are measures of
reliability of a logistics process?
18. The cost of ownership: Is the idea that there are many other costs than just the acquisition cost that
should be accounted for in a purchase.
19. Transaction: The ____ component of customer service includes common metrics of consumer service such
as percentage of items in stock, percentage of time an item is in stock, fill rate, lead time, et cetera
20. All of these: A leveling of production costs between China, Mexico, and the United States means that U.S. firms
will increasingly focus on ____ to be competitive
21. The calculated percentage of items in stock is 70% (assuming perpetual
inventory is accurate): If store perpetual inventory is greater than zero for 70 of the 100 SKUs in a category,
then
22. The calculated percentage of time in stock is 45% (assuming perpetual
inventory is accurate): If store perpetual inventory is greater than zero for 45 days of the 100 days checked
for a particular item in a category then,
2/6
