SCMN 2150 UNIT 3 QUIZ EXAM PRACTICE QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE ..
Section A: Supply Chain Planning Fundamentals
1. What is supply chain planning?
A. A process of accounting for orders that have already been completed
B. A forward-looking process of coordinating assets to optimize the
delivery of goods, services, and information from supplier to customer,
balancing supply and demand
C. A process of scheduling only the transportation segment
D. A process of conducting annual supplier audits
Answer: B
Rationale: Supply chain planning is defined as the forward-looking
process of coordinating assets to optimize the delivery of goods,
services, and information from supplier to customer, balancing supply
and demand.
2. Which of the following is NOT a core function needed to balance
supply and demand?
A. Logistics
,B. Procurement
C. Manufacturing
D. Human Resources
Answer: D
Rationale: To balance supply and demand, the functions needed are
logistics, procurement, manufacturing, and customer service. Human
Resources is not directly involved in the core supply-and-demand
balancing decisions of S&OP.
3. Why should companies focus on being proactive rather than reactive
in supply chain planning?
A. Proactive planning is less expensive and requires no data
B. Being proactive builds capabilities, capacity, and control in advance
of needs; being reactive creates a lack of resources needed to operate
efficiently and effectively
C. Reactive planning is more accurate than proactive planning
D. Proactive planning only applies to long-term decisions
Answer: B
,Rationale: The focus on supply chain planning exists because being
proactive builds capabilities, capacity, and control in advance of needs,
whereas being reactive creates a lack of resources needed to operate
efficiently and effectively.
4. What is the typical time horizon for short-range supply chain
planning?
A. 2+ years
B. 3–18 months
C. Hourly, daily, weekly
D. Quarterly only
Answer: C
Rationale: Short-range supply chain planning involves immediate needs
and spans hourly, daily, and weekly time frames, handled by operation
supervisors and managers. Tasks include scheduling, ordering,
sequencing, developing, and dispatching.
5. Which of the following tasks belongs to intermediate/mid-range
planning?
A. Daily dispatching
B. Demand forecasting and sales and operations planning
, C. Long-term new product plans
D. Hourly employee shift scheduling
Answer: B
Rationale: Mid-range planning spans 3–18 months, and its main tasks
include demand forecasting, sales and operations planning, production
planning and budgeting, setting employment/inventory/subcontracting
levels, and analyzing operating plans.
6. Who is typically responsible for long-range supply chain planning?
A. Front-line operation supervisors
B. Supply chain planners
C. Supply chain executives and company executives
D. External auditors
Answer: C
Rationale: Long-range planning involves strategic needs and is handled
by supply chain executives and company executives.
7. Which of the following is a typical task of long-range planning?
ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE ..
Section A: Supply Chain Planning Fundamentals
1. What is supply chain planning?
A. A process of accounting for orders that have already been completed
B. A forward-looking process of coordinating assets to optimize the
delivery of goods, services, and information from supplier to customer,
balancing supply and demand
C. A process of scheduling only the transportation segment
D. A process of conducting annual supplier audits
Answer: B
Rationale: Supply chain planning is defined as the forward-looking
process of coordinating assets to optimize the delivery of goods,
services, and information from supplier to customer, balancing supply
and demand.
2. Which of the following is NOT a core function needed to balance
supply and demand?
A. Logistics
,B. Procurement
C. Manufacturing
D. Human Resources
Answer: D
Rationale: To balance supply and demand, the functions needed are
logistics, procurement, manufacturing, and customer service. Human
Resources is not directly involved in the core supply-and-demand
balancing decisions of S&OP.
3. Why should companies focus on being proactive rather than reactive
in supply chain planning?
A. Proactive planning is less expensive and requires no data
B. Being proactive builds capabilities, capacity, and control in advance
of needs; being reactive creates a lack of resources needed to operate
efficiently and effectively
C. Reactive planning is more accurate than proactive planning
D. Proactive planning only applies to long-term decisions
Answer: B
,Rationale: The focus on supply chain planning exists because being
proactive builds capabilities, capacity, and control in advance of needs,
whereas being reactive creates a lack of resources needed to operate
efficiently and effectively.
4. What is the typical time horizon for short-range supply chain
planning?
A. 2+ years
B. 3–18 months
C. Hourly, daily, weekly
D. Quarterly only
Answer: C
Rationale: Short-range supply chain planning involves immediate needs
and spans hourly, daily, and weekly time frames, handled by operation
supervisors and managers. Tasks include scheduling, ordering,
sequencing, developing, and dispatching.
5. Which of the following tasks belongs to intermediate/mid-range
planning?
A. Daily dispatching
B. Demand forecasting and sales and operations planning
, C. Long-term new product plans
D. Hourly employee shift scheduling
Answer: B
Rationale: Mid-range planning spans 3–18 months, and its main tasks
include demand forecasting, sales and operations planning, production
planning and budgeting, setting employment/inventory/subcontracting
levels, and analyzing operating plans.
6. Who is typically responsible for long-range supply chain planning?
A. Front-line operation supervisors
B. Supply chain planners
C. Supply chain executives and company executives
D. External auditors
Answer: C
Rationale: Long-range planning involves strategic needs and is handled
by supply chain executives and company executives.
7. Which of the following is a typical task of long-range planning?
