MODULE 1 - SCMT 2103 EXAM
QUESTIONS AND ANSWERS
The objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
Which of the following is a theme throughout the course? - Correct Answers -How
logistics and supply chain management can be used to create a competitive advantage
The management of the flow and storage of inventory, such that total costs are
minimized and customer service targets are achieved is referred to as: - Correct
Answers -Logistics
Logistics is the management of the flow and storage of inventory such that total cost is
minimized and ____________ are achieved. - Correct Answers -customer service
targets
A process is an ordered set of _____. - Correct Answers -activities
Companies outsource for many reasons. Which of the following is typically a reason for
outsourcing? - Correct Answers -All of these
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 $1,000 for 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 per bottle. In this example, the company only ordered 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 bottles ≈ $0.08 per bottle (rounded - Correct Answers -Economies of
scale
Which of the following benefits did Walmart achieve from their early network design
strategy? - Correct Answers -All of these were benefits
Responsiveness in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -change logistics and supply chain
management activities quickly
QUESTIONS AND ANSWERS
The objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
Which of the following is a theme throughout the course? - Correct Answers -How
logistics and supply chain management can be used to create a competitive advantage
The management of the flow and storage of inventory, such that total costs are
minimized and customer service targets are achieved is referred to as: - Correct
Answers -Logistics
Logistics is the management of the flow and storage of inventory such that total cost is
minimized and ____________ are achieved. - Correct Answers -customer service
targets
A process is an ordered set of _____. - Correct Answers -activities
Companies outsource for many reasons. Which of the following is typically a reason for
outsourcing? - Correct Answers -All of these
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 $1,000 for 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 per bottle. In this example, the company only ordered 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 bottles ≈ $0.08 per bottle (rounded - Correct Answers -Economies of
scale
Which of the following benefits did Walmart achieve from their early network design
strategy? - Correct Answers -All of these were benefits
Responsiveness in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -change logistics and supply chain
management activities quickly
