(WGU D472) BUS 4900 21st Century Operations & Supply Chain Objective Assessment Guide Q & A

D472 BUS 4900 21st Century Operations & Supply Chain Objective Assessment Guid e Q & A 2024 1. Multiple Choice: What is the primary goal of Supply Chain Management (SCM)? a) Reducing operational costs b) Maximizing customer value c) Increasing revenue d) Minimizing investment risk Answer : b) Maximizing customer value Rationale: The primary goal of SCM is to fulfill customer demands through the most efficie nt use of resources, including distribution capacity, inventory, and labor. 2. True/False: The bullwhip effect refers to the fluctuation in orders within a supply chain. Answer : True Rationale: The bullwhip effect is a phenomenon in supply chain man agement where small fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, manufacturer, and raw material supplier levels. 3. Fill -in-the-Blank: The ________ is a network of facilities th at procures raw materials, transforms them into intermediate goods and then final products, and delivers the products to customers through a distribution system. Answer : Supply Chain Rationale: This definition encapsulates the entire process of suppl y chain management, from procurement to distribution. 4. Multiple Choice: Which of the following is not a key component of Demand Forecasting? a) Historical sales data b) Economic indicators c) Weather forecasts d) Color preferences of the CEO Answer : d) Color preferences of the CEO Rationale: Demand forecasting relies on objective data that can predict future sales; the CEO's color preferences are subjective and irrelevant. 5. True/False: Outsourcing production to third -party firms is a lways the most cost -effective solution for supply chain management. Answer : False Rationale: While outsourcing can reduce costs, it is not always the most cost-effective solution due to factors such as quality control, intellectual property concerns, and long -term strategic alignment. 6. Fill -in-the-Blank: Just -In-Time (JIT) invento ry systems require accurate ________ to function effectively. Answer : Demand forecasting