SCMN 3710 EXAM QUESTIONS WITH
ACCURATE ANSWERS
The primary Key Performance Indicators (KPIs) for supply chain managers are -
ANSWER Total Cost, Customer Service Level, and CSL/TC
The "product mix/assortment" problem refers to rapidly increasing costs as a result of -
ANSWER trying to serve the last 1-3 percent of customer demand with ever increasing
inventory
The three prerequisites that must be satisfied for goods to move "naturally" from areas
of surplus to areas of shortage are that the change in total value is greater than the
change in total cost, ________ , and __________ . - ANSWER market conditions exist,
government does not prohibit
Which of the following is not part of the Supply Chain network? - ANSWER A. Plants
B. Distribution Centers
**C. Stores
D. Terminals
Most retailers are essentially supply chain companies since - ANSWER they buy
products produced by others.
The Supply Chain Concept - ANSWER developed from the previous Physical Distribution
concept.
Which is not an important issue for economic development and vitality of the economy -
ANSWER **A. Entrepreneurship
B. Migration
C. Urbanization
D. None of the above
According to prediction, __________, __________ and __________ will all house so called
Megacities, whereas __________ will not have any cities of this size. - ANSWER Asia,
Latin America and North America; Europe
Where is a megacity most likely to develop? - ANSWER Asia
A(n) _______ relationship exists between the cost of lost sales and inventory cost. -
ANSWER Inverse
, As the dollar value of a product increases, packaging costs will: - ANSWER Increase
A ______ analysis examines a logistics system over a long time period or range of output.
- ANSWER dynamic
In the short run, the firm's network is _________ while in the long run it is ________. -
ANSWER fixed, variable
Heuristic models - ANSWER are able to accommodate broad problem definitions.
As the number of stocking points (DCs) is decreased in a distribution network, fixed
costs will ____ and variable costs will ___. - ANSWER decrease, decrease
The weighted moving average method assigns - ANSWER A weight to each previous
period.
One type of demand fluctuation is caused by random variation. What is random
variation? - ANSWER E development that cannot normally be anticipated
There are four strategies that firms can use to balance supply and demand; price, lead
time, inventory, and ___ - ANSWER Production flexibility
ABC analysis uses a single criterion to classify SKUs from most important to least
important. - ANSWER true
The term replenishment cycle refers to - ANSWER the acquisition of additional
inventory.
Customer service can be defined as - ANSWER Anything that touches the customer.
In the SCOR Model there are five major categories of metrics that need to be used to
measure the performance of Process D1: reliability, ___________, agility, costs, and asset
management. - ANSWER responsiveness
Gross margin equals - ANSWER sales minus COGS
Which of the following is NOT a supply chain decision area regarding ROA
improvement? - ANSWER A. Inventory Management
**B. Information Management
C. Channel Structure Management
D. Order Management
In deploying supply chains across global markets, managers seek to identify
opportunities where - ANSWER differential value is high and total cost is low
The "Infrastructure" zone on the TC/CSL tradeoff curve is characterized by - ANSWER
fixed costs rising more rapidly than output (service)
ACCURATE ANSWERS
The primary Key Performance Indicators (KPIs) for supply chain managers are -
ANSWER Total Cost, Customer Service Level, and CSL/TC
The "product mix/assortment" problem refers to rapidly increasing costs as a result of -
ANSWER trying to serve the last 1-3 percent of customer demand with ever increasing
inventory
The three prerequisites that must be satisfied for goods to move "naturally" from areas
of surplus to areas of shortage are that the change in total value is greater than the
change in total cost, ________ , and __________ . - ANSWER market conditions exist,
government does not prohibit
Which of the following is not part of the Supply Chain network? - ANSWER A. Plants
B. Distribution Centers
**C. Stores
D. Terminals
Most retailers are essentially supply chain companies since - ANSWER they buy
products produced by others.
The Supply Chain Concept - ANSWER developed from the previous Physical Distribution
concept.
Which is not an important issue for economic development and vitality of the economy -
ANSWER **A. Entrepreneurship
B. Migration
C. Urbanization
D. None of the above
According to prediction, __________, __________ and __________ will all house so called
Megacities, whereas __________ will not have any cities of this size. - ANSWER Asia,
Latin America and North America; Europe
Where is a megacity most likely to develop? - ANSWER Asia
A(n) _______ relationship exists between the cost of lost sales and inventory cost. -
ANSWER Inverse
, As the dollar value of a product increases, packaging costs will: - ANSWER Increase
A ______ analysis examines a logistics system over a long time period or range of output.
- ANSWER dynamic
In the short run, the firm's network is _________ while in the long run it is ________. -
ANSWER fixed, variable
Heuristic models - ANSWER are able to accommodate broad problem definitions.
As the number of stocking points (DCs) is decreased in a distribution network, fixed
costs will ____ and variable costs will ___. - ANSWER decrease, decrease
The weighted moving average method assigns - ANSWER A weight to each previous
period.
One type of demand fluctuation is caused by random variation. What is random
variation? - ANSWER E development that cannot normally be anticipated
There are four strategies that firms can use to balance supply and demand; price, lead
time, inventory, and ___ - ANSWER Production flexibility
ABC analysis uses a single criterion to classify SKUs from most important to least
important. - ANSWER true
The term replenishment cycle refers to - ANSWER the acquisition of additional
inventory.
Customer service can be defined as - ANSWER Anything that touches the customer.
In the SCOR Model there are five major categories of metrics that need to be used to
measure the performance of Process D1: reliability, ___________, agility, costs, and asset
management. - ANSWER responsiveness
Gross margin equals - ANSWER sales minus COGS
Which of the following is NOT a supply chain decision area regarding ROA
improvement? - ANSWER A. Inventory Management
**B. Information Management
C. Channel Structure Management
D. Order Management
In deploying supply chains across global markets, managers seek to identify
opportunities where - ANSWER differential value is high and total cost is low
The "Infrastructure" zone on the TC/CSL tradeoff curve is characterized by - ANSWER
fixed costs rising more rapidly than output (service)
