Michigan Supply Chain Operations Exam
question with correct answers
(100% verified answers) plus rationales Q &A
2026 INSTANT DOWNLOAD PDF
1. What is the primary goal of supply chain management?
A. Maximize inventory levels
B. Minimize customer satisfaction
C. Optimize flow of goods and information
D. Increase transportation costs
Correct: C
Supply chain management focuses on efficiently coordinating goods, services, and
information from suppliers to customers.
2. Which of the following is NOT a core supply chain function?
A. Procurement
B. Production
C. Marketing advertising
D. Distribution
Correct: C
Marketing advertising is not a core operational supply chain function.
3. What does “Just-in-Time (JIT)” inventory aim to achieve?
A. Overstock inventory
B. Reduce holding costs
,C. Increase warehouse size
D. Delay production
Correct: B
JIT minimizes inventory levels by receiving goods only when needed.
4. Which system integrates all supply chain activities digitally?
A. ERP
B. CRM
C. POS
D. LMS
Correct: A
ERP (Enterprise Resource Planning) integrates all business processes.
5. What is a key benefit of supply chain visibility?
A. Higher uncertainty
B. Better decision-making
C. Increased delays
D. Reduced communication
Correct: B
Visibility improves tracking and enables faster, informed decisions.
6. Which inventory method follows FIFO principle?
A. Last expired, first out
B. First in, first out
C. Random selection
D. Bulk ordering
Correct: B
FIFO ensures oldest inventory is used first.
, 7. What is procurement?
A. Selling products
B. Purchasing goods/services
C. Advertising products
D. Designing warehouses
Correct: B
Procurement involves acquiring goods and services from suppliers.
8. Which transportation mode is most cost-effective for bulk goods over long
distances?
A. Air
B. Road
C. Rail
D. Courier
Correct: C
Rail is economical for large-volume long-distance shipments.
9. What is lead time?
A. Time to sell a product
B. Time between order and delivery
C. Time to manufacture only
D. Time for marketing
Correct: B
Lead time is the total time from order placement to delivery.
10. What does SCM stand for?
question with correct answers
(100% verified answers) plus rationales Q &A
2026 INSTANT DOWNLOAD PDF
1. What is the primary goal of supply chain management?
A. Maximize inventory levels
B. Minimize customer satisfaction
C. Optimize flow of goods and information
D. Increase transportation costs
Correct: C
Supply chain management focuses on efficiently coordinating goods, services, and
information from suppliers to customers.
2. Which of the following is NOT a core supply chain function?
A. Procurement
B. Production
C. Marketing advertising
D. Distribution
Correct: C
Marketing advertising is not a core operational supply chain function.
3. What does “Just-in-Time (JIT)” inventory aim to achieve?
A. Overstock inventory
B. Reduce holding costs
,C. Increase warehouse size
D. Delay production
Correct: B
JIT minimizes inventory levels by receiving goods only when needed.
4. Which system integrates all supply chain activities digitally?
A. ERP
B. CRM
C. POS
D. LMS
Correct: A
ERP (Enterprise Resource Planning) integrates all business processes.
5. What is a key benefit of supply chain visibility?
A. Higher uncertainty
B. Better decision-making
C. Increased delays
D. Reduced communication
Correct: B
Visibility improves tracking and enables faster, informed decisions.
6. Which inventory method follows FIFO principle?
A. Last expired, first out
B. First in, first out
C. Random selection
D. Bulk ordering
Correct: B
FIFO ensures oldest inventory is used first.
, 7. What is procurement?
A. Selling products
B. Purchasing goods/services
C. Advertising products
D. Designing warehouses
Correct: B
Procurement involves acquiring goods and services from suppliers.
8. Which transportation mode is most cost-effective for bulk goods over long
distances?
A. Air
B. Road
C. Rail
D. Courier
Correct: C
Rail is economical for large-volume long-distance shipments.
9. What is lead time?
A. Time to sell a product
B. Time between order and delivery
C. Time to manufacture only
D. Time for marketing
Correct: B
Lead time is the total time from order placement to delivery.
10. What does SCM stand for?
