SCM 301 Iowa State University Exam 1
Test Questions with Solved Solutions
2026-2027 Updated.
Supply Chain - Answer consists of the flow of products and services from:
- Raw materials manufacturers
- Component and intermediate manufacturers - Final product manufacturers
- Wholesalers and distributors and
- Retailers
Connected by transportation and storage activities, and integrated through information,
planning, and integration activities
Upstream Supply Chain beginning at the Focal firm - Answer - Set of firms that supply the raw
materials (2nd tier), intermediate components manufacturers (1st tier).
Downstream Supply Chain beginning at the Focal firm - Answer - The portion of the supply
chain from the production facility to the end-customer. Wholesalers (1st tier), Retailers (2nd
tier), and the final customers.
Old Supply Chains - Answer - wanted to own all components of their Supply Chain
New Supply Chains - Answer - diversify owners throughout the supply chain
In order for Supply Chains to be successful they must share information like: - Answer -
Product specifications
- Production plans
- Production changes
- New marketing strategies
- New technologies employed
- Purchasing plans
- Delivery dates
Firms using Supply Chain Management
(integration) - Answer 1) Start with key suppliers
2) Move on to other suppliers, customers, and shippers
,3) Integrate second tier suppliers and customers
Second tier Suppliers - Answer Supplier of the Supplier
Reducing the Bullwhip Effect will help ___ - Answer - help improve cost savings and better
coordination of resources
Bullwhip Effect is reduced by - Answer - Collaborative planning, forecasting, and
replenishment activities.
- Which lead to better customer service, lower inventory costs, improved quality, reduced cycle
time, better production methods, and more
Bullwhip Effect - Answer - Small changes in customer demand ripple through to create larger
and larger changes as orders move through the supply chain
Bullwhip Effect
Cause: Production schedules based on forecasts of wholesaler demand versus what consumer
demand is - Answer Solution:
- Make actual demand data available to suppliers
- Vendor-managed inventory (P&G does for Walmart)
- Reduce the length of the Supply chain
- Reduce the lead times from order to delivery
Bullwhip Effect
Cause: Price Fluctuations - Answer Solution:
- Eliminate price discounting, adopt Everyday low pricing (EDLP)
Bullwhip Effect
Cause: Periodic order policies at the wholesaler and manufacture levels - Answer Solution:
- use frequent and smaller order sizes
Bullwhip Effect
Cause: Rationing/ Shortage gaming... trade deals offered by manufacturers to wholesalers -
Answer Solution:
- allocate short supplies based on the demand histories of their customers
1950s-1960s - Answer Mass Production to reduce prices
, 1960s-1970s - Answer Introduction of new computer technologies lead to development of
Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to
coordinate inventory management and improve internal communication
1980s & 1990s - Answer Intense global competition led U.S. manufacturers to adopt:
- Supply Chain Management
- Just-In-Time Inventory (JIT)
- Total Quality Management (TQM)
- Business Process Reengineering (BPR) practices
Business Process Reengineering (BPR) - Answer A radical redesign of a business process that
improves its efficiency and effectiveness, often by beginning with a "clean sheet" (from scratch).
Customer Relationship Management (CRM) - Answer Delivering superior customer value and
satisfaction to build and maintain profitable customer relationships
Third-party logistics (3PL) provider - Answer independent logistics provider that performs any
or all of the functions required to get a client's product to market
Enterprise Resource Planning (ERP) - Answer A newer version of Materials Requirement
Planning (MRP), that combines the computerized functions of all the divisions and subsidiaries
of the firm--such as finance, human resources, and order fulfillment--into a single integrated
software program that uses a single database.
Companies will focus on improving supply chain capabilities with initiatives such as - Answer -
Third-party service providers (3PLs)
- Integrating logistics
- Client/server supply chain management software
Supplier Relationship Management (SRM) - Answer resulting in smaller supply bases, and
development of more long term relationships
Operations - Answer Demand management, CPFR, MRP, ERP, inventory management,
JIT/Lean production, quick response, TQM, Six Sigma
Distribution - Answer Transportation management, customer relationship management
(CRM), distribution networks, perfect order fulfillment, global supply chains, logistics
management, service response logistics, green logistics
Test Questions with Solved Solutions
2026-2027 Updated.
Supply Chain - Answer consists of the flow of products and services from:
- Raw materials manufacturers
- Component and intermediate manufacturers - Final product manufacturers
- Wholesalers and distributors and
- Retailers
Connected by transportation and storage activities, and integrated through information,
planning, and integration activities
Upstream Supply Chain beginning at the Focal firm - Answer - Set of firms that supply the raw
materials (2nd tier), intermediate components manufacturers (1st tier).
Downstream Supply Chain beginning at the Focal firm - Answer - The portion of the supply
chain from the production facility to the end-customer. Wholesalers (1st tier), Retailers (2nd
tier), and the final customers.
Old Supply Chains - Answer - wanted to own all components of their Supply Chain
New Supply Chains - Answer - diversify owners throughout the supply chain
In order for Supply Chains to be successful they must share information like: - Answer -
Product specifications
- Production plans
- Production changes
- New marketing strategies
- New technologies employed
- Purchasing plans
- Delivery dates
Firms using Supply Chain Management
(integration) - Answer 1) Start with key suppliers
2) Move on to other suppliers, customers, and shippers
,3) Integrate second tier suppliers and customers
Second tier Suppliers - Answer Supplier of the Supplier
Reducing the Bullwhip Effect will help ___ - Answer - help improve cost savings and better
coordination of resources
Bullwhip Effect is reduced by - Answer - Collaborative planning, forecasting, and
replenishment activities.
- Which lead to better customer service, lower inventory costs, improved quality, reduced cycle
time, better production methods, and more
Bullwhip Effect - Answer - Small changes in customer demand ripple through to create larger
and larger changes as orders move through the supply chain
Bullwhip Effect
Cause: Production schedules based on forecasts of wholesaler demand versus what consumer
demand is - Answer Solution:
- Make actual demand data available to suppliers
- Vendor-managed inventory (P&G does for Walmart)
- Reduce the length of the Supply chain
- Reduce the lead times from order to delivery
Bullwhip Effect
Cause: Price Fluctuations - Answer Solution:
- Eliminate price discounting, adopt Everyday low pricing (EDLP)
Bullwhip Effect
Cause: Periodic order policies at the wholesaler and manufacture levels - Answer Solution:
- use frequent and smaller order sizes
Bullwhip Effect
Cause: Rationing/ Shortage gaming... trade deals offered by manufacturers to wholesalers -
Answer Solution:
- allocate short supplies based on the demand histories of their customers
1950s-1960s - Answer Mass Production to reduce prices
, 1960s-1970s - Answer Introduction of new computer technologies lead to development of
Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRPII) to
coordinate inventory management and improve internal communication
1980s & 1990s - Answer Intense global competition led U.S. manufacturers to adopt:
- Supply Chain Management
- Just-In-Time Inventory (JIT)
- Total Quality Management (TQM)
- Business Process Reengineering (BPR) practices
Business Process Reengineering (BPR) - Answer A radical redesign of a business process that
improves its efficiency and effectiveness, often by beginning with a "clean sheet" (from scratch).
Customer Relationship Management (CRM) - Answer Delivering superior customer value and
satisfaction to build and maintain profitable customer relationships
Third-party logistics (3PL) provider - Answer independent logistics provider that performs any
or all of the functions required to get a client's product to market
Enterprise Resource Planning (ERP) - Answer A newer version of Materials Requirement
Planning (MRP), that combines the computerized functions of all the divisions and subsidiaries
of the firm--such as finance, human resources, and order fulfillment--into a single integrated
software program that uses a single database.
Companies will focus on improving supply chain capabilities with initiatives such as - Answer -
Third-party service providers (3PLs)
- Integrating logistics
- Client/server supply chain management software
Supplier Relationship Management (SRM) - Answer resulting in smaller supply bases, and
development of more long term relationships
Operations - Answer Demand management, CPFR, MRP, ERP, inventory management,
JIT/Lean production, quick response, TQM, Six Sigma
Distribution - Answer Transportation management, customer relationship management
(CRM), distribution networks, perfect order fulfillment, global supply chains, logistics
management, service response logistics, green logistics
