SUPPLY CHAIN MANAGEMENT STRATEGY
PLANNING AND OPERATION 7TH EDITION
COMPREHENSIVE EXAM SCRIPT SOLVED
QUESTIONS GRADED A+
◉ Transportation (Trade-off)
Answer: Faster modes increase transport cost but can lower
inventory and lead times.
◉ Information
Answer: Data/analytics (ERP, WMS, TMS, CPFR) to coordinate flows
and assets.
◉ Sourcing
Answer: Make-or-buy, supplier selection, procurement processes to
grow total surplus.
◉ Pricing
Answer: How the firm charges; shapes demand pattern and needed
responsiveness (EDLP vs promotions).
◉ Cross-docking
, Answer: Flow-through warehousing method.
◉ Break-bulk
Answer: Warehousing method for dividing large shipments into
smaller ones.
◉ Consolidation
Answer: Combining multiple shipments into one.
◉ Milk-runs
Answer: Transportation method that picks up and delivers goods on
a set route.
◉ Transshipment
Answer: Transfer of goods between facilities.
◉ S&OP
Answer: Monthly cross-functional process aligning demand, supply,
and finance into one feasible plan.
◉ EDI
Answer: Standard machine-to-machine exchange of business
documents (POs, ASNs, invoices) to cut delays/errors.
PLANNING AND OPERATION 7TH EDITION
COMPREHENSIVE EXAM SCRIPT SOLVED
QUESTIONS GRADED A+
◉ Transportation (Trade-off)
Answer: Faster modes increase transport cost but can lower
inventory and lead times.
◉ Information
Answer: Data/analytics (ERP, WMS, TMS, CPFR) to coordinate flows
and assets.
◉ Sourcing
Answer: Make-or-buy, supplier selection, procurement processes to
grow total surplus.
◉ Pricing
Answer: How the firm charges; shapes demand pattern and needed
responsiveness (EDLP vs promotions).
◉ Cross-docking
, Answer: Flow-through warehousing method.
◉ Break-bulk
Answer: Warehousing method for dividing large shipments into
smaller ones.
◉ Consolidation
Answer: Combining multiple shipments into one.
◉ Milk-runs
Answer: Transportation method that picks up and delivers goods on
a set route.
◉ Transshipment
Answer: Transfer of goods between facilities.
◉ S&OP
Answer: Monthly cross-functional process aligning demand, supply,
and finance into one feasible plan.
◉ EDI
Answer: Standard machine-to-machine exchange of business
documents (POs, ASNs, invoices) to cut delays/errors.