SCMN 2150 SUPPLY CHAIN ANALYTICS ASSESSMENT EXAM PRACTICE
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALE .
Section A: Foundations of Supply Chain Analytics (Q1–Q12)
1. Which of the following best defines supply chain analytics?
A) Collecting raw data from suppliers only
B) Using statistical and computational methods to optimize supply
chain decisions
C) Replacing all human decision-making with automation
D) Tracking inventory levels manually
Correct Answer: B
Rationale: Supply chain analytics applies data-driven methods
(descriptive, diagnostic, predictive, prescriptive) to improve efficiency,
reduce costs, and manage risks. It supports managerial judgment rather
than eliminating it .
2. The four primary types of analytics in supply chain management are:
A) Operational, tactical, strategic, financial
B) Descriptive, diagnostic, predictive, prescriptive
,C) Qualitative, quantitative, mixed, causal
D) Internal, external, structured, unstructured
Correct Answer: B
Rationale: These four types form the analytics maturity model: what
happened (descriptive), why it happened (diagnostic), what will happen
(predictive), and what to do about it (prescriptive) .
3. A company analyzes past sales data to identify seasonal demand
patterns. This is an example of:
A) Prescriptive analytics
B) Predictive analytics
C) Descriptive analytics
D) Cognitive analytics
Correct Answer: C
Rationale: Descriptive analytics summarizes historical data to identify
trends and patterns. It answers the question "What happened?" .
,4. Which analytics type uses optimization and simulation to
recommend actions?
A) Prescriptive
B) Descriptive
C) Diagnostic
D) Predictive
Correct Answer: A
Rationale: Prescriptive analytics suggests optimal decisions using
techniques like linear programming and machine learning. It answers
"What should we do?" .
5. A supply chain analyst examines why transportation costs increased
sharply during a particular month. Which type of analytics is being
applied?
A) Descriptive
B) Predictive
C) Diagnostic
D) Prescriptive
, Correct Answer: C
Rationale: Diagnostic analytics investigates the causes or drivers behind
an observed result. Here, the analyst is seeking to explain why
transportation costs increased .
6. Which characteristic is most important when evaluating historical
demand data for forecasting?
A) Whether the data contain relevant and reliable observations
B) Whether every observation has the same value
C) Whether the data contain only recent transactions
D) Whether the data have no seasonal patterns
Correct Answer: A
Rationale: Forecast quality depends heavily on the quality and
relevance of historical data. Missing values, errors, unusual events, and
inappropriate data definitions can distort the forecasting process .
7. What is the primary purpose of supply chain analytics?
A) Replace all managerial judgment
B) Eliminate the need for supply chain processes
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALE .
Section A: Foundations of Supply Chain Analytics (Q1–Q12)
1. Which of the following best defines supply chain analytics?
A) Collecting raw data from suppliers only
B) Using statistical and computational methods to optimize supply
chain decisions
C) Replacing all human decision-making with automation
D) Tracking inventory levels manually
Correct Answer: B
Rationale: Supply chain analytics applies data-driven methods
(descriptive, diagnostic, predictive, prescriptive) to improve efficiency,
reduce costs, and manage risks. It supports managerial judgment rather
than eliminating it .
2. The four primary types of analytics in supply chain management are:
A) Operational, tactical, strategic, financial
B) Descriptive, diagnostic, predictive, prescriptive
,C) Qualitative, quantitative, mixed, causal
D) Internal, external, structured, unstructured
Correct Answer: B
Rationale: These four types form the analytics maturity model: what
happened (descriptive), why it happened (diagnostic), what will happen
(predictive), and what to do about it (prescriptive) .
3. A company analyzes past sales data to identify seasonal demand
patterns. This is an example of:
A) Prescriptive analytics
B) Predictive analytics
C) Descriptive analytics
D) Cognitive analytics
Correct Answer: C
Rationale: Descriptive analytics summarizes historical data to identify
trends and patterns. It answers the question "What happened?" .
,4. Which analytics type uses optimization and simulation to
recommend actions?
A) Prescriptive
B) Descriptive
C) Diagnostic
D) Predictive
Correct Answer: A
Rationale: Prescriptive analytics suggests optimal decisions using
techniques like linear programming and machine learning. It answers
"What should we do?" .
5. A supply chain analyst examines why transportation costs increased
sharply during a particular month. Which type of analytics is being
applied?
A) Descriptive
B) Predictive
C) Diagnostic
D) Prescriptive
, Correct Answer: C
Rationale: Diagnostic analytics investigates the causes or drivers behind
an observed result. Here, the analyst is seeking to explain why
transportation costs increased .
6. Which characteristic is most important when evaluating historical
demand data for forecasting?
A) Whether the data contain relevant and reliable observations
B) Whether every observation has the same value
C) Whether the data contain only recent transactions
D) Whether the data have no seasonal patterns
Correct Answer: A
Rationale: Forecast quality depends heavily on the quality and
relevance of historical data. Missing values, errors, unusual events, and
inappropriate data definitions can distort the forecasting process .
7. What is the primary purpose of supply chain analytics?
A) Replace all managerial judgment
B) Eliminate the need for supply chain processes
