MGT 8803 - Supply Chain ACTUAL Exam
Questions and CORRECT Answers
Responsive Supply Chain - CORRECT ANSWER - focus on flexibility and responsive
service and are able to react quickly to changing market demand and requirements; focus on
flexible production
and meeting changing needs of customers
Efficient Supply chain - CORRECT ANSWER - utilize strategies aimed at creating the
highest cost efficiency; all about keeping costs as low as possible through high utilization, high
repetition, and a high level of standardization.
Efficient vs. Responsive Supply Chains - CORRECT ANSWER - Responsive supply chain is
defined by its reaction speed to react, start new routes, scale up and down quickly. Used for
innovative products and getting new product to new market quickly. High cost and not
"efficient".
ex: train is efficient (time table, runs on time, goes from pt A to pt B), car is responsive (fast,
more expensive, available to use when needed)
What are product characteristics that are more conducive to a Responsive Supply chain? -
CORRECT ANSWER - - high demand uncertainty
- high profit margins
What are product characteristics that are more conducive to an Efficient Supply chain? -
CORRECT ANSWER - - predictable/stable demand
- low demand uncertainty
- low profit margins
How do Efficient and Responsive supply chains relate to Centralized vs Decentralized strategies?
(2) - CORRECT ANSWER - - A centralized strategy needs an efficient supply chain
- A decentralized strategy needs a responsive supply chain
, A centralized network configuration lends itself to which type of supply chain model? -
CORRECT ANSWER - Efficient
Functional Products vs Innovative Products - CORRECT ANSWER - - Functional are more
stable environment
- Innovative is more unpredicable environment
Innovative Products - CORRECT ANSWER - Products such as fashionable clothes and high-
end personal computers that typically have a life cycle of just a few months; characterized by
short product life cycles, volatile demand, high profit margins, and relatively less competition
Characteristics:
- high demand uncertainty
- less predictable demand
- short product life
- high inventory cost
- high profit margins
- high product variety and higher volume
- high stockout and obsolencence cost
Functional Products - CORRECT ANSWER - staples that people buy in a wide range of retail
outlets, such as grocery stores and gas stations
Characteristics:
- low demand uncertainty
- more predictable demand
- long product life
- low inventory cost
- low profit margins
Questions and CORRECT Answers
Responsive Supply Chain - CORRECT ANSWER - focus on flexibility and responsive
service and are able to react quickly to changing market demand and requirements; focus on
flexible production
and meeting changing needs of customers
Efficient Supply chain - CORRECT ANSWER - utilize strategies aimed at creating the
highest cost efficiency; all about keeping costs as low as possible through high utilization, high
repetition, and a high level of standardization.
Efficient vs. Responsive Supply Chains - CORRECT ANSWER - Responsive supply chain is
defined by its reaction speed to react, start new routes, scale up and down quickly. Used for
innovative products and getting new product to new market quickly. High cost and not
"efficient".
ex: train is efficient (time table, runs on time, goes from pt A to pt B), car is responsive (fast,
more expensive, available to use when needed)
What are product characteristics that are more conducive to a Responsive Supply chain? -
CORRECT ANSWER - - high demand uncertainty
- high profit margins
What are product characteristics that are more conducive to an Efficient Supply chain? -
CORRECT ANSWER - - predictable/stable demand
- low demand uncertainty
- low profit margins
How do Efficient and Responsive supply chains relate to Centralized vs Decentralized strategies?
(2) - CORRECT ANSWER - - A centralized strategy needs an efficient supply chain
- A decentralized strategy needs a responsive supply chain
, A centralized network configuration lends itself to which type of supply chain model? -
CORRECT ANSWER - Efficient
Functional Products vs Innovative Products - CORRECT ANSWER - - Functional are more
stable environment
- Innovative is more unpredicable environment
Innovative Products - CORRECT ANSWER - Products such as fashionable clothes and high-
end personal computers that typically have a life cycle of just a few months; characterized by
short product life cycles, volatile demand, high profit margins, and relatively less competition
Characteristics:
- high demand uncertainty
- less predictable demand
- short product life
- high inventory cost
- high profit margins
- high product variety and higher volume
- high stockout and obsolencence cost
Functional Products - CORRECT ANSWER - staples that people buy in a wide range of retail
outlets, such as grocery stores and gas stations
Characteristics:
- low demand uncertainty
- more predictable demand
- long product life
- low inventory cost
- low profit margins
