MGT 6201 Supply Chain Exam 2026/2027 – Questions,
Answers & Detailed Rationales
Table of Contents
1. Supply Chain Management Fundamentals
2. Supply Chain Strategy & Design
3. Procurement & Supplier Management
4. Inventory Management
5. Logistics, Transportation & Distribution
6. Warehousing & Material Handling
7. Demand Forecasting & Planning
8. Information Technology & Supply Chain Analytics
9. Risk, Resilience, Sustainability & Global Supply Chains
10. Supply Chain Performance, Integration & Comprehensive Cases
SECTION 1: SUPPLY CHAIN MANAGEMENT FUNDAMENTALS
Question 1
What best describes supply chain management?
A. Management of a company's production department only
B. Coordination of activities involved in sourcing, production, distribution, and
customer fulfillment
C. Management of employee payroll
D. Management of financial investments
Answer: B
Rationale: Supply chain management coordinates the flow of materials,
information, services, and finances from suppliers through the organization to
customers. It extends beyond production to include procurement, logistics,
inventory, distribution, and customer fulfillment.
,Question 2
Which flow moves primarily from suppliers toward customers?
A. Product and material flow
B. Customer complaints only
C. Demand forecasts only
D. Shareholder information
Answer: A
Rationale: Physical products and materials generally move downstream from
suppliers toward manufacturers, distributors, retailers, and customers.
Information and financial flows can move in both directions.
Question 3
A supply chain typically includes:
A. Only manufacturers
B. Suppliers, organizations, logistics providers, distributors, retailers, and
customers
C. Only customers and retailers
D. Only transportation companies
Answer: B
Rationale: A supply chain is a network rather than a single organization. It may
include raw-material suppliers, manufacturers, warehouses, transportation
providers, distributors, retailers, service providers, and end customers.
Question 4
What is a major objective of supply chain management?
A. Maximize inventory regardless of cost
B. Eliminate all suppliers
,C. Deliver customer value while coordinating costs and resources across the chain
D. Eliminate transportation activities
Answer: C
Rationale: Effective supply chain management seeks to create customer value
while balancing cost, service, quality, speed, flexibility, and risk. Optimizing one
activity in isolation can harm total supply chain performance.
Question 5
The term upstream generally refers to:
A. Activities closer to the final customer
B. Activities closer to suppliers and sources of inputs
C. Retail activities only
D. Reverse logistics only
Answer: B
Rationale: Upstream activities are closer to suppliers and raw-material sources.
Downstream activities are closer to distribution channels and final customers.
Question 6
What does downstream mean in supply chain terminology?
A. Activities closer to suppliers
B. Activities closer to raw materials
C. Activities closer to customers and markets
D. Activities unrelated to logistics
Answer: C
Rationale: Downstream processes move toward the customer. Distribution,
retailing, and customer fulfillment are common downstream activities.
Question 7
, Supply chain integration primarily involves:
A. Isolating departments
B. Coordinating activities and information across supply chain partners
C. Increasing inventory in every location
D. Reducing communication
Answer: B
Rationale: Integration improves coordination among procurement, production,
logistics, suppliers, distributors, and customers. Better coordination can reduce
duplication, delays, uncertainty, and unnecessary inventory.
Question 8
Which of the following is an example of a supply chain trade-off?
A. Increasing transportation speed while accepting higher transportation costs
B. Eliminating all transportation costs
C. Increasing service and reducing every possible cost simultaneously
D. Removing all inventory
Answer: A
Rationale: Supply chains frequently involve trade-offs. Faster transportation may
improve service but cost more, while slower transportation may reduce cost but
increase lead time.
Question 9
The bullwhip effect refers to:
A. A reduction in demand variability upstream
B. Increasing fluctuations in orders and inventory as one moves upstream in a
supply chain
C. A transportation safety procedure
D. A warehouse layout method
Answer: B
Answers & Detailed Rationales
Table of Contents
1. Supply Chain Management Fundamentals
2. Supply Chain Strategy & Design
3. Procurement & Supplier Management
4. Inventory Management
5. Logistics, Transportation & Distribution
6. Warehousing & Material Handling
7. Demand Forecasting & Planning
8. Information Technology & Supply Chain Analytics
9. Risk, Resilience, Sustainability & Global Supply Chains
10. Supply Chain Performance, Integration & Comprehensive Cases
SECTION 1: SUPPLY CHAIN MANAGEMENT FUNDAMENTALS
Question 1
What best describes supply chain management?
A. Management of a company's production department only
B. Coordination of activities involved in sourcing, production, distribution, and
customer fulfillment
C. Management of employee payroll
D. Management of financial investments
Answer: B
Rationale: Supply chain management coordinates the flow of materials,
information, services, and finances from suppliers through the organization to
customers. It extends beyond production to include procurement, logistics,
inventory, distribution, and customer fulfillment.
,Question 2
Which flow moves primarily from suppliers toward customers?
A. Product and material flow
B. Customer complaints only
C. Demand forecasts only
D. Shareholder information
Answer: A
Rationale: Physical products and materials generally move downstream from
suppliers toward manufacturers, distributors, retailers, and customers.
Information and financial flows can move in both directions.
Question 3
A supply chain typically includes:
A. Only manufacturers
B. Suppliers, organizations, logistics providers, distributors, retailers, and
customers
C. Only customers and retailers
D. Only transportation companies
Answer: B
Rationale: A supply chain is a network rather than a single organization. It may
include raw-material suppliers, manufacturers, warehouses, transportation
providers, distributors, retailers, service providers, and end customers.
Question 4
What is a major objective of supply chain management?
A. Maximize inventory regardless of cost
B. Eliminate all suppliers
,C. Deliver customer value while coordinating costs and resources across the chain
D. Eliminate transportation activities
Answer: C
Rationale: Effective supply chain management seeks to create customer value
while balancing cost, service, quality, speed, flexibility, and risk. Optimizing one
activity in isolation can harm total supply chain performance.
Question 5
The term upstream generally refers to:
A. Activities closer to the final customer
B. Activities closer to suppliers and sources of inputs
C. Retail activities only
D. Reverse logistics only
Answer: B
Rationale: Upstream activities are closer to suppliers and raw-material sources.
Downstream activities are closer to distribution channels and final customers.
Question 6
What does downstream mean in supply chain terminology?
A. Activities closer to suppliers
B. Activities closer to raw materials
C. Activities closer to customers and markets
D. Activities unrelated to logistics
Answer: C
Rationale: Downstream processes move toward the customer. Distribution,
retailing, and customer fulfillment are common downstream activities.
Question 7
, Supply chain integration primarily involves:
A. Isolating departments
B. Coordinating activities and information across supply chain partners
C. Increasing inventory in every location
D. Reducing communication
Answer: B
Rationale: Integration improves coordination among procurement, production,
logistics, suppliers, distributors, and customers. Better coordination can reduce
duplication, delays, uncertainty, and unnecessary inventory.
Question 8
Which of the following is an example of a supply chain trade-off?
A. Increasing transportation speed while accepting higher transportation costs
B. Eliminating all transportation costs
C. Increasing service and reducing every possible cost simultaneously
D. Removing all inventory
Answer: A
Rationale: Supply chains frequently involve trade-offs. Faster transportation may
improve service but cost more, while slower transportation may reduce cost but
increase lead time.
Question 9
The bullwhip effect refers to:
A. A reduction in demand variability upstream
B. Increasing fluctuations in orders and inventory as one moves upstream in a
supply chain
C. A transportation safety procedure
D. A warehouse layout method
Answer: B
