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SCMN 3710 Questions with Detailed
Verified Answers
Question: The primary Key Performance Indicators (KPIs) for supply chain
managers are
Answer: Total Cost, Customer Service Level, and CSL/TC
Question: The "product mix/assortment" problem refers to rapidly increasing
costs as a result of
Answer: trying to serve the last 1-3 percent of customer demand with ever
increasing inventory
Question: The three prerequisites that must be satisfied for goods to move
"naturally" from areas of surplus to areas of shortage are that the change in
total value is greater than the change in total cost, ________ , and __________
.
Answer: market conditions exist, government does not prohibit
Question: Which of the following is not part of the Supply Chain network?
Answer: A. Plants
B. Distribution Centers
**C. Stores
D. Terminals
Question: Most retailers are essentially supply chain companies since
Answer: they buy products produced by others.
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Question: The Supply Chain Concept
Answer: developed from the previous Physical Distribution concept.
Question: Which is not an important issue for economic development and
vitality of the economy
Answer: **A. Entrepreneurship
B. Migration
C. Urbanization
D. None of the above
Question: According to prediction, __________, __________ and __________
will all house so called Megacities, whereas __________ will not have any cities
of this size.
Answer: Asia, Latin America and North America; Europe
Question: Where is a megacity most likely to develop?
Answer: Asia
Question: A(n) _______ relationship exists between the cost of lost sales and
inventory cost.
Answer: Inverse
Question: As the dollar value of a product increases, packaging costs will:
Answer: Increase
Question: A ______ analysis examines a logistics system over a long time
period or range of output.
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Answer: dynamic
Question: In the short run, the firm's network is _________ while in the long
run it is ________.
Answer: fixed, variable
Question: Heuristic models
Answer: are able to accommodate broad problem definitions.
Question: As the number of stocking points (DCs) is decreased in a
distribution network, fixed costs will ____ and variable costs will ___.
Answer: decrease, decrease
Question: The weighted moving average method assigns
Answer: A weight to each previous period.
Question: One type of demand fluctuation is caused by random variation.
What is random variation?
Answer: E development that cannot normally be anticipated
Question: There are four strategies that firms can use to balance supply and
demand; price, lead time, inventory, and ___
Answer: Production flexibility
Question: ABC analysis uses a single criterion to classify SKUs from most
important to least important.
SCMN 3710 Questions with Detailed
Verified Answers
Question: The primary Key Performance Indicators (KPIs) for supply chain
managers are
Answer: Total Cost, Customer Service Level, and CSL/TC
Question: The "product mix/assortment" problem refers to rapidly increasing
costs as a result of
Answer: trying to serve the last 1-3 percent of customer demand with ever
increasing inventory
Question: The three prerequisites that must be satisfied for goods to move
"naturally" from areas of surplus to areas of shortage are that the change in
total value is greater than the change in total cost, ________ , and __________
.
Answer: market conditions exist, government does not prohibit
Question: Which of the following is not part of the Supply Chain network?
Answer: A. Plants
B. Distribution Centers
**C. Stores
D. Terminals
Question: Most retailers are essentially supply chain companies since
Answer: they buy products produced by others.
, Page | 2
Question: The Supply Chain Concept
Answer: developed from the previous Physical Distribution concept.
Question: Which is not an important issue for economic development and
vitality of the economy
Answer: **A. Entrepreneurship
B. Migration
C. Urbanization
D. None of the above
Question: According to prediction, __________, __________ and __________
will all house so called Megacities, whereas __________ will not have any cities
of this size.
Answer: Asia, Latin America and North America; Europe
Question: Where is a megacity most likely to develop?
Answer: Asia
Question: A(n) _______ relationship exists between the cost of lost sales and
inventory cost.
Answer: Inverse
Question: As the dollar value of a product increases, packaging costs will:
Answer: Increase
Question: A ______ analysis examines a logistics system over a long time
period or range of output.
, Page | 3
Answer: dynamic
Question: In the short run, the firm's network is _________ while in the long
run it is ________.
Answer: fixed, variable
Question: Heuristic models
Answer: are able to accommodate broad problem definitions.
Question: As the number of stocking points (DCs) is decreased in a
distribution network, fixed costs will ____ and variable costs will ___.
Answer: decrease, decrease
Question: The weighted moving average method assigns
Answer: A weight to each previous period.
Question: One type of demand fluctuation is caused by random variation.
What is random variation?
Answer: E development that cannot normally be anticipated
Question: There are four strategies that firms can use to balance supply and
demand; price, lead time, inventory, and ___
Answer: Production flexibility
Question: ABC analysis uses a single criterion to classify SKUs from most
important to least important.
