Management OBJECTIVE ASSESSMENT
ACTUAL EXAM 2025/2026 COMPLETE
QUESTIONS WITH VERIFIED CORRECT
ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
1. A successful global presence is dependent on having a physical supply
network capable of - ANSWER ✓ responding to customer demands
2. One of the biggest challenges for companies setting up global supply chains
are the - ANSWER ✓ significant differences in infrastructure in developing
countries
3. Companies often overlook the ______________ ____________ in
infrastructural resources when they begin doing business in developing
countries and often encounter significant challenges - ANSWER ✓
substantial deficiencies
4. What is a traditional definition of supply chain? - ANSWER ✓ A network of
connected and interdependent organisations mutually and co-operatively
working together to control, manage and improve the flow of materials and
information from suppliers to end users
5. What are the six foundational premises of a supply chain conceptualization?
- ANSWER ✓ 1. The supply chain is a network, consisting of nodes and
links.
2. The supply chain as a network operates as a complex adaptive system,
where every agent grapples with the tension between control and emergence.
3. The supply chain is relative to a particular product and agent.
, 4. The supply chain consists of both a physical supply chain and a support
supply chain
5. The supply chain is bounded by the visible horizon of the focal agent.
6. The visible horizon of the focal agent is subject to attenuation, where
distance is based on factors including physical distance, cultural distance,
and closeness centrality
6. What is a node? - ANSWER ✓ An establishment which is an agent that has
the ability to make decisions and maximize its own gain within the
parameters in which it operates
7. What is a link? - ANSWER ✓ The connection between two nodes. Links
represent transactions consisting of the flow of materials, information,
and/or finance between nodes.
8. What is a more recent definition of Supply Chain Management? - ANSWER
✓ The management of upstream and downstream relationships with
suppliers and customers in order to deliver superior customer value at less
cost to the supply chain as a whole
9. What is the bullwhip effect? - ANSWER ✓ Definition: Phenomenon where
orders to the supplier tend to have larger variance than sales to the buyer
(i.e., demand distortion), and the distortion propagates upstream in an
amplified form (i.e., variance amplification)
10.What is a Customer Order Decoupling Point? (Order Penetration Point) -
ANSWER ✓ The decoupling point separates the part of the supply chain
geared towards directly satisfying customer orders [= pull processes] from
the part of the supply chain based on planning [= push processes]
11.What is the definition of distribution? - ANSWER ✓ Distribution refers to
the steps taken to move and store a product from the supplier stage to a
customer stage in the supply chain. Distribution occurs between every pair
of stages in the supply chain.
12.What is the definition of Logistics Management? - ANSWER ✓ That part of
supply chain management that plans, implements, and controls the efficient,
effective forward and reverses flow and storage
, of goods, services and related information between the point of origin and
the point of consumption in order to meet customers'
requirements
13.Define and Compare two Risk Metrics - ANSWER ✓ TTR - Time to
Recovery
(Time to fuly restore after disruption)
TTS - Time to Survive
(Maximum duration that a SC can match supply with demand after a
disruption)
TTS < TTR: Disruption will expose firm to financial and operational
problems.
14.Define 4 different Strategies to Control RIsks - ANSWER ✓ Risk
Reduction: Reduce the probability/consequence
Risk Avoidance: eliminates types of events that could trigger risk
Risk Taking: Take potential risk impact (no strategy)
Risk Sharing: implement contractual mechanisms and purse collaboration
15.Define Robustness - ANSWER ✓ Ability of SC to resist change without
adapting its initial stable configuration
- Multiple sources of supply
- Inventory buffers
- Flexible transportation
16.Define Agility - ANSWER ✓ Ability of SC to rapidly respond to change by
adapting its initial stable configuration
- Contingency Plan
- Lead-time Reduction
- Trained Personnel
17.BCP - ANSWER ✓ Business Continuity Plan
(Documented collection of procedures and info incase of incident that allows
and enables the organisation to continue to deliver its critical products and
services)
, 18.Creeping Crises - ANSWER ✓ Systematic SC disruptions that arise from
unexpected sources and with widespread consequences.
(Knowable Unknowns)
19.Resilience - ANSWER ✓ The ability of a system to return to its original (or
desired) state after being disturbed
20.Service Science - ANSWER ✓ Application of the resources of one or more
systems for the benefit of another system in economic exchange
21.What is Value Stream Mapping (VSM)? - ANSWER ✓ Value stream
mapping is a lean tool that employs a flow diagram documenting in high
detail every step of a process. Many lean practitioners see value stream
mapping as the fundamental tool to identify waste, reduce process cycle
times, and implement process improvement.
22.What is the Square root law and what is the formula? - ANSWER ✓ The
square root law is a simple rule of thumb, stating that safety stocks can be
reduced by the square root of the number of distribution centers.
Sc = Sd x √(nc / nd)
23.What are the assumptions behind the Square Root Law? - ANSWER ✓ - It is
assumed that each individual distribution center serves an exclusive market
area, demand varies randomly and safety stock levels are statistically
determined.
- All distribution centers maintain the same level of safety (buffer)
stock protection. This assumption is consistent with the practice of
many companies that seek to standardize product availability across
the market.
- Demands at each distribution center in the decentralized system are
not correlated. This assumption is questionable when customers do
not accept supplier-defined market territories, i.e., when they can get
products more easily and cheaply from other distribution centers.
24.What is the definition of order picking? - ANSWER ✓ Order picking can be
defined as the process in which goods are taken from the warehouse or
buffer in response to customer orders.