SCMT 2103 (INTRODUCTION TO
SUPPLY CHAIN MANAGEMENT)
QUIZ QUESTIONS AND ANSWERS
100% CORRECT
Relationship in the 4 R's of supply chain competition is defined as being able to -
ANSWER-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
- ANSWER-Product C
Reliability in the 4 R's of supply chain competition is defined as being able to
_________________. - ANSWER-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
- ANSWER-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? - ANSWER-50
Which of the following benefits did Walmart achieve from their early network design
strategy? - ANSWER-All of these were benefits
Which of the following is a theme throughout the course? - ANSWER-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: - ANSWER-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? - ANSWER-
$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 ____________. - ANSWER-the order of the activities
Which of the following is a fundamental concept of logistics management? -
ANSWER-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: - ANSWER-
Logistics
A process is an ordered set of _____. - ANSWER-activities
The term ____________________ today refers to a firm that supplies logistics and
possibly other supply chain management services. - ANSWER-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? - ANSWER-30
Average inventory last year was $160,000 and turns were 7. What was cost of goods
sold last year? - ANSWER-$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). - ANSWER-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? - ANSWER-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). - ANSWER-33%
A store perpetual inventory is greater than zero for 37 of the 100 SKUs in a category.
- ANSWER-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). - ANSWER-40%
A store perpetual inventory is greater than zero for 65 days of the 100 days checked
for a particular item in a category. - ANSWER-The percentage of time in stock is
65%
, ______________ is when a retailer thinks there is more inventory than there actually
is. - ANSWER-Phantom inventory
One approach to estimating the cost of a stockout per unit of lost sale is to calculate
an estimate of the ____________. - ANSWER-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. - ANSWER-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. - ANSWER-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? -
ANSWER-0.50
The _____________ component of customer service concerns how the policies,
organizational structure, and culture of a company affect customer service. -
ANSWER-pre-transaction
The ___________ component of customer service includes common metrics of
customer service such as percentage of items in stock, percentage of time an item is
in stock, fill rate, lead time, et cetera. - ANSWER-transaction
Which of the following are common elements of the total cost of ownership model: -
ANSWER-All of the above are part of the TCO model
SUPPLY CHAIN MANAGEMENT)
QUIZ QUESTIONS AND ANSWERS
100% CORRECT
Relationship in the 4 R's of supply chain competition is defined as being able to -
ANSWER-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
- ANSWER-Product C
Reliability in the 4 R's of supply chain competition is defined as being able to
_________________. - ANSWER-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
- ANSWER-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? - ANSWER-50
Which of the following benefits did Walmart achieve from their early network design
strategy? - ANSWER-All of these were benefits
Which of the following is a theme throughout the course? - ANSWER-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: - ANSWER-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? - ANSWER-
$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 ____________. - ANSWER-the order of the activities
Which of the following is a fundamental concept of logistics management? -
ANSWER-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: - ANSWER-
Logistics
A process is an ordered set of _____. - ANSWER-activities
The term ____________________ today refers to a firm that supplies logistics and
possibly other supply chain management services. - ANSWER-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? - ANSWER-30
Average inventory last year was $160,000 and turns were 7. What was cost of goods
sold last year? - ANSWER-$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). - ANSWER-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? - ANSWER-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). - ANSWER-33%
A store perpetual inventory is greater than zero for 37 of the 100 SKUs in a category.
- ANSWER-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). - ANSWER-40%
A store perpetual inventory is greater than zero for 65 days of the 100 days checked
for a particular item in a category. - ANSWER-The percentage of time in stock is
65%
, ______________ is when a retailer thinks there is more inventory than there actually
is. - ANSWER-Phantom inventory
One approach to estimating the cost of a stockout per unit of lost sale is to calculate
an estimate of the ____________. - ANSWER-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. - ANSWER-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. - ANSWER-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? -
ANSWER-0.50
The _____________ component of customer service concerns how the policies,
organizational structure, and culture of a company affect customer service. -
ANSWER-pre-transaction
The ___________ component of customer service includes common metrics of
customer service such as percentage of items in stock, percentage of time an item is
in stock, fill rate, lead time, et cetera. - ANSWER-transaction
Which of the following are common elements of the total cost of ownership model: -
ANSWER-All of the above are part of the TCO model
