ETI3647 Supply Chain Management Questions (55) – Network Design, Bullwhip Effect, Capacity Planning & Outsourcing Strategy

This document contains 55 exam questions with verified answers for the course ETI3647 Supply Chain Management (Section 2.1). The material focuses on core supply chain network design concepts, operational decision-making, and strategic planning methods commonly assessed in university logistics and supply chain management courses. The questions are structured to help students review essential theoretical frameworks and practical applications used in supply chain optimization and network management. A major portion of the document examines supply chain network design and optimization, including how organizations analyze supply chain structures to improve efficiency and customer satisfaction. Topics include supply chain architecture, network optimization strategies, and methods used by organizations to determine the scope of supply chain capabilities and performance metrics. The document also introduces tools such as baseline modeling, scenario analysis, and current “as-is” assessments used to evaluate existing supply chain networks and identify opportunities for improvement. The document also covers key operational concepts in supply chain architecture, including the bullwhip effect, capacity planning, vertical integration, and strategic outsourcing. The bullwhip effect describes how small fluctuations in customer demand can become amplified upstream in the supply chain, leading to inventory imbalances and operational inefficiencies. Questions also explore how companies manage capacity constraints and bottlenecks, emphasizing the importance of identifying and addressing critical capacity limitations within supply networks. Another major section focuses on strategic supply chain decisions, such as production footprint planning, inventory placement, sourcing strategies, and service level agreements. These decisions affect the long-term structure of supply chains and determine how organizations balance cost, responsiveness, and service levels. The material highlights how poor strategic decisions—such as allocating production solely based on available capacity—can lead to suboptimal supply chain performance. The document further examines location planning and network configuration, including the factor rating or weighted scoring method used to evaluate potential facility locations. It also discusses dynamic network management, which enables companies to continuously monitor supply chain performance and adjust network configurations as market conditions, demand patterns, and operational constraints change. Additionally, the material explores supply chain risk and volatility, including disruptions caused by geopolitical changes, natural disasters, fluctuations in commodity prices, and demand variability. These topics emphasize the importance of contingency planning and scenario modeling to ensure that supply chains remain resilient and adaptable in uncertain environments. Many of the concepts in this document align with widely used academic textbooks such as “Supply Chain Management: Strategy, Planning, and Operation” by Sunil Chopra and Peter Meindl, which is commonly adopted in undergraduate business, logistics, and operations management programs. The questions reflect the type of conceptual understanding and analytical reasoning typically tested in university-level supply chain management assessments. This document may be relevant for students enrolled in courses such as: Supply Chain Management Logistics and Distribution Management Operations Management Supply Chain Network Design Global Supply Chain Strategy Procurement and Supply Management It is particularly useful for students studying in programs including: Business Administration Supply Chain Management Logistics Management Operations Management Industrial Engineering Business Analytics Keywords: supply chain management, supply chain network design, bullwhip effect, supply chain optimization, capacity planning supply chain, strategic outsourcing, supply chain architecture, production footprint strategy, inventory placement strategy, service level agreements logistics, location decision analysis, factor rating method, supply chain risk management, contingency planning logistics, dynamic network management, supply chain scenario modeling