SCMT 2103 (INTRODUCTION TO
SUPPLY CHAIN MANAGEMENT) QUIZ
QUESTIONS AND ANSWERS
Relationship in the 4 R's of supply chain competition is defined as being able to -
Correct Answers -manage the connections, the interactions, and communication, and
maintain trust
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 -
Correct Answers -Product C
Reliability in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -consistently execute an activity or process at
a target level of performance
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 30, Standard Deviation of Lead Time = 30
Product B: Standard Deviation of Sales = 25, Standard Deviation of Lead Time = 15
Product C: Standard Deviation of Sales = 20, Standard Deviation of Lead Time = 20
Product D: Standard Deviation of Sales = 20, Standard Deviation of Lead Time = 25 -
Correct Answers -Product A
A distribution center has 50,000 cases of ketchup and the forecast is 1,000 cases per
day. What is the estimate of the days of supply? - Correct Answers -50
Which of the following benefits did Walmart achieve from their early network design
strategy? - Correct Answers -All of these were benefits
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 objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
,The inventory holding cost factor is 20% and the average inventory next year is
expected to be $130,000. What is the expected inventory holding cost? - Correct
Answers -$26,000
Process improvement is concerned with increasing the speed of the process, reducing
the cost of the process, or increasing the reliability of the process, without changing
____________. - Correct Answers -the order of the activities
Which of the following is a fundamental concept of logistics management? - Correct
Answers -There are tradeoffs among many of the logistics costs and customer service
targets.
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
A process is an ordered set of _____. - Correct Answers -activities
The term ____________________ today refers to a firm that supplies logistics and
possibly other supply chain management services. - Correct Answers -third-party
logistics (3PL) provider
A company operates 365 days a year. Annual inventory turns is 12. How many days of
supply does that represent? - Correct Answers -30
Average inventory last year was $160,000 and turns were 7. What was cost of goods
sold last year? - Correct Answers -$1,120,000
Linda's Bakery bakes cookies for 150 local supermarkets and sells them through the
supermarkets on a consignment basis, which means she only gets paid for the cookies
that sell. She destroys cookies that don't sell. People in this city love her cookies. She
estimates a daily demand of 14,000 cookies with a standard deviation of 1,400 cookies.
Suppose she wants to achieve a service level of 82%. How many cookies should she
produce? Hint: Use the Excel function NORMINV(service level, mean, standard
deviation). - Correct Answers -15,282
The amount received by a firm is 100 units and it sold 25 units. Assuming initial
inventory is zero, what is the perpetual inventory? - Correct Answers -75 units
Assume an item has a demand of 1 per day and a demand of 6 every 4th day.
However, the item is out of stock every 4th day. What would be the item fill rate (IFR). -
Correct Answers -33%
A store perpetual inventory is greater than zero for 37 of the 100 SKUs in a category. -
Correct Answers -The percentage of items in stock is 37%
, Assume an item has a demand of 1 per day and a demand of 6 every 5th day.
However, the item is out of stock every 5th day. What would be the item fill rate (IFR). -
Correct Answers -40%
A store perpetual inventory is greater than zero for 65 days of the 100 days checked for
a particular item in a category. - Correct Answers -The percentage of time in stock is
65%
______________ is when a retailer thinks there is more inventory than there actually is.
- Correct Answers -Phantom inventory
One approach to estimating the cost of a stockout per unit of lost sale is to calculate an
estimate of the ____________. - Correct Answers -expected value
David's Bakery bakes cinnamon rolls for 90 local supermarkets and sells them through
the supermarkets on a consignment basis, which means he only gets paid for the
cinnamon rolls that sell. He destroys cinnamon rolls that don't sell. People in this city
love his cinnamon rolls He estimates a daily demand of 8,000 cinnamon rolls with a
standard deviation of 800 cinnamon rolls. Suppose he produces 8,702 cinnamon rolls.
Using the Excel formula NORMDIST (level of production, mean, standard deviation, 1),
calculate the expected service level or percentage time in stock. - Correct Answers -
81%
Carol's Bakery bakes sweet rolls for 210 local supermarkets and sells them through the
supermarkets on a consignment basis, which means she only gets paid for the sweet
rolls that sell. She destroys sweet rolls that don't sell. People in this city love her sweet
rolls She estimates a daily demand of 20,000 sweet rolls with a standard deviation of
1,300 sweet rolls. Suppose she produces 22,138 sweet rolls. Using the Excel formula
NORMDIST (level of production, mean, standard deviation, 1), calculate the expected
service level or percentage time in stock. - Correct Answers -95%
Imagine you are a small format grocer and that on average you sell 30 squash per day.
Some days you sell more and some days you sell less, but on average you sell 30. In
fact, you have been doing this for a while and have calculated the probability of selling
different quantities of squash, reproduced in the table of discrete probabilities below.
Quantity Sold Probability 20 0.10
25 0.20
30 0.40
35 0.20
40 0.10
You have decided to stock fewer squash and instead stock more tomatoes. You
decided to stock 35 squash each day. About how many sales of squash do you expect
to lose each day as a result of this decision to stock more tomatoes? - Correct Answers
-0.50
SUPPLY CHAIN MANAGEMENT) QUIZ
QUESTIONS AND ANSWERS
Relationship in the 4 R's of supply chain competition is defined as being able to -
Correct Answers -manage the connections, the interactions, and communication, and
maintain trust
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 -
Correct Answers -Product C
Reliability in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -consistently execute an activity or process at
a target level of performance
Which of the following products would you expect to require the most safety stock?
Product A: Standard Deviation of Sales = 30, Standard Deviation of Lead Time = 30
Product B: Standard Deviation of Sales = 25, Standard Deviation of Lead Time = 15
Product C: Standard Deviation of Sales = 20, Standard Deviation of Lead Time = 20
Product D: Standard Deviation of Sales = 20, Standard Deviation of Lead Time = 25 -
Correct Answers -Product A
A distribution center has 50,000 cases of ketchup and the forecast is 1,000 cases per
day. What is the estimate of the days of supply? - Correct Answers -50
Which of the following benefits did Walmart achieve from their early network design
strategy? - Correct Answers -All of these were benefits
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 objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
,The inventory holding cost factor is 20% and the average inventory next year is
expected to be $130,000. What is the expected inventory holding cost? - Correct
Answers -$26,000
Process improvement is concerned with increasing the speed of the process, reducing
the cost of the process, or increasing the reliability of the process, without changing
____________. - Correct Answers -the order of the activities
Which of the following is a fundamental concept of logistics management? - Correct
Answers -There are tradeoffs among many of the logistics costs and customer service
targets.
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
A process is an ordered set of _____. - Correct Answers -activities
The term ____________________ today refers to a firm that supplies logistics and
possibly other supply chain management services. - Correct Answers -third-party
logistics (3PL) provider
A company operates 365 days a year. Annual inventory turns is 12. How many days of
supply does that represent? - Correct Answers -30
Average inventory last year was $160,000 and turns were 7. What was cost of goods
sold last year? - Correct Answers -$1,120,000
Linda's Bakery bakes cookies for 150 local supermarkets and sells them through the
supermarkets on a consignment basis, which means she only gets paid for the cookies
that sell. She destroys cookies that don't sell. People in this city love her cookies. She
estimates a daily demand of 14,000 cookies with a standard deviation of 1,400 cookies.
Suppose she wants to achieve a service level of 82%. How many cookies should she
produce? Hint: Use the Excel function NORMINV(service level, mean, standard
deviation). - Correct Answers -15,282
The amount received by a firm is 100 units and it sold 25 units. Assuming initial
inventory is zero, what is the perpetual inventory? - Correct Answers -75 units
Assume an item has a demand of 1 per day and a demand of 6 every 4th day.
However, the item is out of stock every 4th day. What would be the item fill rate (IFR). -
Correct Answers -33%
A store perpetual inventory is greater than zero for 37 of the 100 SKUs in a category. -
Correct Answers -The percentage of items in stock is 37%
, Assume an item has a demand of 1 per day and a demand of 6 every 5th day.
However, the item is out of stock every 5th day. What would be the item fill rate (IFR). -
Correct Answers -40%
A store perpetual inventory is greater than zero for 65 days of the 100 days checked for
a particular item in a category. - Correct Answers -The percentage of time in stock is
65%
______________ is when a retailer thinks there is more inventory than there actually is.
- Correct Answers -Phantom inventory
One approach to estimating the cost of a stockout per unit of lost sale is to calculate an
estimate of the ____________. - Correct Answers -expected value
David's Bakery bakes cinnamon rolls for 90 local supermarkets and sells them through
the supermarkets on a consignment basis, which means he only gets paid for the
cinnamon rolls that sell. He destroys cinnamon rolls that don't sell. People in this city
love his cinnamon rolls He estimates a daily demand of 8,000 cinnamon rolls with a
standard deviation of 800 cinnamon rolls. Suppose he produces 8,702 cinnamon rolls.
Using the Excel formula NORMDIST (level of production, mean, standard deviation, 1),
calculate the expected service level or percentage time in stock. - Correct Answers -
81%
Carol's Bakery bakes sweet rolls for 210 local supermarkets and sells them through the
supermarkets on a consignment basis, which means she only gets paid for the sweet
rolls that sell. She destroys sweet rolls that don't sell. People in this city love her sweet
rolls She estimates a daily demand of 20,000 sweet rolls with a standard deviation of
1,300 sweet rolls. Suppose she produces 22,138 sweet rolls. Using the Excel formula
NORMDIST (level of production, mean, standard deviation, 1), calculate the expected
service level or percentage time in stock. - Correct Answers -95%
Imagine you are a small format grocer and that on average you sell 30 squash per day.
Some days you sell more and some days you sell less, but on average you sell 30. In
fact, you have been doing this for a while and have calculated the probability of selling
different quantities of squash, reproduced in the table of discrete probabilities below.
Quantity Sold Probability 20 0.10
25 0.20
30 0.40
35 0.20
40 0.10
You have decided to stock fewer squash and instead stock more tomatoes. You
decided to stock 35 squash each day. About how many sales of squash do you expect
to lose each day as a result of this decision to stock more tomatoes? - Correct Answers
-0.50
