QDM Final Exam Questions And Answers 2024
Solutions
What raw material do you think the camera lens in your mobile phone is made from? ANS Potassium and
lead silicates
What is it called when uncertainty and miscommunication among the players in a supply chain cause over-
reactions resulting in sub-optimal results. ANS The Bullwhip Effect
When is the many supplier strategy more appropriate? ANS When purchasing a less critical product or
service from a market that has a number of qualified providers.
What does RFP stand for? ANS Request For Proposal
TRUE or FALSE: Vertical Integration can mean either internally developing a capability that your company
needs or purchasing a supplier that already has that capability. ANS TRUE
Is a Joint Venture a legal partnership? ANS Yes - the parties agree to work together, and their
responsibilities and performance requirements are governed by a contract.
Which of the following best describes a Japanese Keiretsu Network? ANS A business alliance formed by
several companies in a supply chain
Consider the OFFICE LAPTOP PURCHASE example.
Assume that on average each offices orders fifty laptops annually. Assuming our laptop supplier will honor the
lowest price of $299 at all seven of our offices, what is the potential savings from a best price evaluation
initiative? ANS $6,000 annually
The Make vs Buy (MvB) formula should look familiar to you. What is another term we could use for the
Indifference Quantity? ANS Crossover Point
Consider the BAGEL SHOP example.
What is the Indifference Quantity? ANS 56,000 bagels
, Consider the BAGEL SHOP example.
What is the annual cost to MAKE 60,000 bagels. ANS $24,000
Consider the BAGEL SHOP example.
What is the annual cost to BUY 60,000 bagels. ANS $25,000
Consider the OFFICE SUPPLIES example.
Where would your place the category of OFFIC SUPPLIES on Kruhlich's sourcing matrix? ANS Low
Impact Low Risk Non-Critical Items
Which trend direction is preferable for percentage of assets invested in inventory? ANS Downward
Which trend direction is preferable for inventory turnover? ANS Upward
Which trend direction is preferable for weeks of supply? ANS Downward
Consider the BIG BOX RETAILER example.
What is the percentage of Investment in Inventory in year five? ANS 28.6%
Consider the BIG BOX RETAILER example.
What is Inventory Turnover in year five? ANS 5.2
Consider the BIG BOX RETAILER example.
What are the Weeks of Supply in year five? ANS 10.0
Which function encompasses the management of transportation, vehicles, warehouses, and inventory? ANS
Logistics Management
Which mode of transportation is the most cost-effective way to move products over land? ANS Rail
Solutions
What raw material do you think the camera lens in your mobile phone is made from? ANS Potassium and
lead silicates
What is it called when uncertainty and miscommunication among the players in a supply chain cause over-
reactions resulting in sub-optimal results. ANS The Bullwhip Effect
When is the many supplier strategy more appropriate? ANS When purchasing a less critical product or
service from a market that has a number of qualified providers.
What does RFP stand for? ANS Request For Proposal
TRUE or FALSE: Vertical Integration can mean either internally developing a capability that your company
needs or purchasing a supplier that already has that capability. ANS TRUE
Is a Joint Venture a legal partnership? ANS Yes - the parties agree to work together, and their
responsibilities and performance requirements are governed by a contract.
Which of the following best describes a Japanese Keiretsu Network? ANS A business alliance formed by
several companies in a supply chain
Consider the OFFICE LAPTOP PURCHASE example.
Assume that on average each offices orders fifty laptops annually. Assuming our laptop supplier will honor the
lowest price of $299 at all seven of our offices, what is the potential savings from a best price evaluation
initiative? ANS $6,000 annually
The Make vs Buy (MvB) formula should look familiar to you. What is another term we could use for the
Indifference Quantity? ANS Crossover Point
Consider the BAGEL SHOP example.
What is the Indifference Quantity? ANS 56,000 bagels
, Consider the BAGEL SHOP example.
What is the annual cost to MAKE 60,000 bagels. ANS $24,000
Consider the BAGEL SHOP example.
What is the annual cost to BUY 60,000 bagels. ANS $25,000
Consider the OFFICE SUPPLIES example.
Where would your place the category of OFFIC SUPPLIES on Kruhlich's sourcing matrix? ANS Low
Impact Low Risk Non-Critical Items
Which trend direction is preferable for percentage of assets invested in inventory? ANS Downward
Which trend direction is preferable for inventory turnover? ANS Upward
Which trend direction is preferable for weeks of supply? ANS Downward
Consider the BIG BOX RETAILER example.
What is the percentage of Investment in Inventory in year five? ANS 28.6%
Consider the BIG BOX RETAILER example.
What is Inventory Turnover in year five? ANS 5.2
Consider the BIG BOX RETAILER example.
What are the Weeks of Supply in year five? ANS 10.0
Which function encompasses the management of transportation, vehicles, warehouses, and inventory? ANS
Logistics Management
Which mode of transportation is the most cost-effective way to move products over land? ANS Rail
