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SCMT 2103 EVALUATION ANSWERS AND
QUESTIONS SET A+
✔✔In terms of logistics and operations, packaging is important because - ✔✔it protects
the goods produced and make it easier to handle and transport

✔✔Using a continuous review model, a shorter lead time will cause which of the
following? - ✔✔Decrease in Safety stock costs and increase in Cycle stock (carrying)
costs

✔✔Which has the correct order of lead time processes? - ✔✔order creation, picking,
staging, transit

✔✔which of the following is not one of the roles of distribution in supply chain
management? - ✔✔Balancing supply and demand, allowing quantity purchase
discounts, and promoting transportation economies

✔✔the object of Walmart's early network design strategy was to: - ✔✔Locate stores
close to a distribution center

✔✔As the degree of globalization increases, what generally happens to production and
materials costs? - ✔✔Both decrease

✔✔If General Mills is forced to increase their order cycle from 7 days to 14 days, what
should be the impact on overall inventory levels? - ✔✔inventory levels will increase

✔✔the transportation mode with the highest level of accessibility is? - ✔✔Truck

✔✔Walmart uses a "door per store" philosophy in some of their facilities. What does
that mean? - ✔✔each outbound shipping dock is assigned to a specific store

, ✔✔If a fulfillment center has no on-hand inventory but receives an order that cannot be
immediately filled, this order represents ______________ if the customer will wait. -
✔✔a backorder

✔✔Causal models might best be used for ______ forecasting while time series model
are mostly used for ________ forecasting. - ✔✔long term; short term

✔✔at the carrier level, the price of transportation is - ✔✔Elastic

✔✔what does TEU stand for? - ✔✔Twenty foot equivalent unit

✔✔evaluate how the economic order quantity is affected if the cost of holding inventory
increases holding all other components the same - ✔✔it decreases

✔✔which is not a reason why doing business in china may be more challenging than in
the US - ✔✔products may be exactly the same

✔✔Which type of flexibility refers to the ability to scale output up and down without
significant penalty? - ✔✔volume flexibility

✔✔which of the following is an example of a fast supply chain model? - ✔✔fashion
apparel

✔✔the fundamental assumption underlying the use of time series forecasting methods
is that _______ - ✔✔if it works well on the past data, the future is an extension of the
past

✔✔According to the ATA, what would be the potential impact of a truck stoppage on the
healthcare industry? - ✔✔patient care will be immediately jeopardized in the truck
stoppage zone. prescription drug inventories will be depleted more quickly

✔✔A _____ is a set of 3 or more organizations - ✔✔supply chain

✔✔In the future, how is the heterogeneity of products on a given truckload expected to
change? - ✔✔it is expected to increase

✔✔at the macroeconomic level, the price of transportation is ______ - ✔✔Inelastic

✔✔Which is a key reason why an apparel product might be partially produced in several
different countries? - ✔✔trade agreements between countries

✔✔In the Kraljic Matrix Model, why type of purchase is characterized by few suppliers,
low value added, and product availability? - ✔✔Bottleneck

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