SCMN 2150 Auburn Test 1 Questions with
Correct Answers
25% reduction in excess and obsolete inventory Correct Answer What benefit can be
gained by adopting best practices in supply chain planning?
Step 4 Invest in performance management Correct Answer Which demand planning
step does the organization evaluate the accuracy of the forecast and assess the
forecast error level?
Inventory buffer locations Correct Answer Planning for holiday demand is difficult for
each of the following reasons EXCEPT for
Reduced variable costs Correct Answer What benefit will be created if a supply chain
reduces its inventory carrying costs?
Unilever Correct Answer Which company holds the top spot in the 2017 Gartner Top 25
Supply Chains list?
Avoid the need to charge sales tax to customers Correct Answer According to this
week's reading about Amazon, why did the company originally limit its facilities to states
like Arizona, Tennessee, Pennsylvania, Kentucky, and a few others
Severe traffic congestion Correct Answer What factors tend to pull facilities away from
its main markets?
Materials requirement planning Correct Answer _____ converts the master schedule of
production into a detailed schedule, so that you can purchase raw materials and
components.
Master production plan Correct Answer The _____ is the plan that a company develops
for production, staffing, or inventory.
Creating independent forecasts and action plans. Correct Answer Is not one of the key
priorities of Sales and Operation Planning
False Correct Answer T/F... All supply chains are constructed in a similar fashion with
the same number and types of participants.
True Correct Answer T/F... Auburn has an RFID lab that work on Supply chain solutions
like product tracking and visibility
Capacity Correct Answer *The rate at which output can be produced by an operating
unit
, *Ex: Machine, process, facility, company, restaurant, movie theater, airplane, etc.
Capacity cushion Correct Answer *An additional amount of capacity added onto the
expected demand to allow for greater than expected demand and demand during peak
demand seasons.
*Creates flexibility.
capacity planning Correct Answer The process of establishing the output rate that can
be achieved (throughput)
Capacity Planning and Management Correct Answer Goal is to match capacity and
demand
False Correct Answer T/F... Capacity planning provides the ability to be proactive rather
than reactive in the management of inventory levels, material flow, and production
scheduling
Capacity Utilization Correct Answer Measures how much of the available capacity is
actually being used
Centralized Correct Answer *National
*Lower investment
*Lower level Lower cost
*Higher cost Effective
Centralized Distribution advantage Correct Answer Lower overall inventory
Centralized Network Correct Answer the single node controls customer interaction, the
flow of goods, and other key activities on a national basis
• Benefits
• Lower safety stock levels
• Lower overhead costs
• Economies of scale
• Challenges
• Longer lead times
• Higher delivery costs
• Potential inefficiencies
Chicken Correct Answer Cross Dock
True Correct Answer T/F... Companies that have an effective sales and operations
planning process increase their visibility across their enterprise, improve product
management, and minimize unnecessary buildups of inventory.
Cross Docks Correct Answer Suppliers to dock, dock to truck. preorganized
* moderate inventory held at store
Correct Answers
25% reduction in excess and obsolete inventory Correct Answer What benefit can be
gained by adopting best practices in supply chain planning?
Step 4 Invest in performance management Correct Answer Which demand planning
step does the organization evaluate the accuracy of the forecast and assess the
forecast error level?
Inventory buffer locations Correct Answer Planning for holiday demand is difficult for
each of the following reasons EXCEPT for
Reduced variable costs Correct Answer What benefit will be created if a supply chain
reduces its inventory carrying costs?
Unilever Correct Answer Which company holds the top spot in the 2017 Gartner Top 25
Supply Chains list?
Avoid the need to charge sales tax to customers Correct Answer According to this
week's reading about Amazon, why did the company originally limit its facilities to states
like Arizona, Tennessee, Pennsylvania, Kentucky, and a few others
Severe traffic congestion Correct Answer What factors tend to pull facilities away from
its main markets?
Materials requirement planning Correct Answer _____ converts the master schedule of
production into a detailed schedule, so that you can purchase raw materials and
components.
Master production plan Correct Answer The _____ is the plan that a company develops
for production, staffing, or inventory.
Creating independent forecasts and action plans. Correct Answer Is not one of the key
priorities of Sales and Operation Planning
False Correct Answer T/F... All supply chains are constructed in a similar fashion with
the same number and types of participants.
True Correct Answer T/F... Auburn has an RFID lab that work on Supply chain solutions
like product tracking and visibility
Capacity Correct Answer *The rate at which output can be produced by an operating
unit
, *Ex: Machine, process, facility, company, restaurant, movie theater, airplane, etc.
Capacity cushion Correct Answer *An additional amount of capacity added onto the
expected demand to allow for greater than expected demand and demand during peak
demand seasons.
*Creates flexibility.
capacity planning Correct Answer The process of establishing the output rate that can
be achieved (throughput)
Capacity Planning and Management Correct Answer Goal is to match capacity and
demand
False Correct Answer T/F... Capacity planning provides the ability to be proactive rather
than reactive in the management of inventory levels, material flow, and production
scheduling
Capacity Utilization Correct Answer Measures how much of the available capacity is
actually being used
Centralized Correct Answer *National
*Lower investment
*Lower level Lower cost
*Higher cost Effective
Centralized Distribution advantage Correct Answer Lower overall inventory
Centralized Network Correct Answer the single node controls customer interaction, the
flow of goods, and other key activities on a national basis
• Benefits
• Lower safety stock levels
• Lower overhead costs
• Economies of scale
• Challenges
• Longer lead times
• Higher delivery costs
• Potential inefficiencies
Chicken Correct Answer Cross Dock
True Correct Answer T/F... Companies that have an effective sales and operations
planning process increase their visibility across their enterprise, improve product
management, and minimize unnecessary buildups of inventory.
Cross Docks Correct Answer Suppliers to dock, dock to truck. preorganized
* moderate inventory held at store
