SUPPLY CHAIN MANAGEMENT EXAM 1 - TCU – LAYTON EXAM 2025 QUESTIONS AND
ANSWERS|A+ MATERIAL
Trends in supple chain management include expansion of the supply chain and decreasing
supply chain visibility. -CORRECT ANSWER-False
The bullwhip effect causes an amplification of the variation in the demand pattern along the
supply chain. -CORRECT ANSWER-True
When a particular item is in short supply accompanied by rising prices, a firm might find it
beneficial to: -CORRECT ANSWER-Align itself with one of the suppliers to ensure a continued
supply of the scarce item.
Supply chain management includes the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management activities. It also
includes: -CORRECT ANSWER-Coordination and collaboration with channel partners
What company is experimenting with the management of the final mile of delivery in some
markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers?
-CORRECT ANSWER-Amazon
According to the textbook, conditions which must be present for successful supply chain
management include: -CORRECT ANSWER-Cooperation among firms
According to the text, the FOUR important elements of the supply chain are: -CORRECT
ANSWER-Supply, operations, logistics, integration
Which of the following activities would fall under the foundational element of operation? -
CORRECT ANSWER-Demand management
,Which of the following activities allows buyers to assume the supplier will meet certain
product quality and service requirements? -CORRECT ANSWER-Supplier certification
Which of the following is a reverse logistics activity: -CORRECT ANSWER-Recycling products
and components
Which of the following would be considered a third party provider? -CORRECT ANSWER-A
firm that leases storage warehousing
Which of the following acronyms is NOT paired with its correct "translation"? -CORRECT
ANSWER-TLS- Third-Party Logistics Services
Lean production is typically associated with which of the following company's production
systems? -CORRECT ANSWER-Toyota
The following strategy is usually employed by lean organizations is an effort to ensure
continued quality compliance among suppliers and with internal production facilities: -
CORRECT ANSWER-Six Sigma
According to the text, which of the following is considered a current trend in supply chain
management? -CORRECT ANSWER-Using supply chain analytics and increasing supply chain
visibility
Developed in the 1990's as a popular way of developing radically new business processes in
an effort to reduce waste and increase performance is referred to as: -CORRECT ANSWER-
Business process reengineering
An internal or external event that causes a disruption or failure of supply chain operations is
an example of: -CORRECT ANSWER-Supply chain risk
, Which of the following can happen as a result of the bullwhip effect? -CORRECT ANSWER-
Excess costs for each firm in a supply chain
The continuing cycle of erratic demand causing forecasts to include safety stock which in
turn magnify supplier forecasts and cause production planning problems is known as: -
CORRECT ANSWER-Bullwhip effect
The following is an example of the bullwhip effect: -CORRECT ANSWER-Barkely's incorrectly
anticipated consumer demand resulting in stockouts at several popular retailers
A reason for making items instead of buying them would include better quality control. -
CORRECT ANSWER-True
Decentralized purchasing is the practice throughout a single corporation make their own,
individual purchasing decisions to fulfill their individual local needs. -CORRECT ANSWER-True
The primary goals of purchasing include all EXCEPT: -CORRECT ANSWER-Ensure the highest
quality raw materials are purchased
Which of the following refers to the measurement of the impact of change in purchase
spend on a firm's profit before taxes, assuming gross sales and other expenses remain
unchanged? -CORRECT ANSWER-Profit-Leverage Effect
Inventory Turnover can be calculated by: -CORRECT ANSWER-Ratio of cost of goods sold over
average inventory cost
Which type of requisition is used for materials and standard parts that are requested on a
recurring basis? -CORRECT ANSWER-Traveling requisition
When a product is purchased which is complicated or highly technical a ___________ may
be issued instead of a request for quotation. -CORRECT ANSWER-Request for proposal
ANSWERS|A+ MATERIAL
Trends in supple chain management include expansion of the supply chain and decreasing
supply chain visibility. -CORRECT ANSWER-False
The bullwhip effect causes an amplification of the variation in the demand pattern along the
supply chain. -CORRECT ANSWER-True
When a particular item is in short supply accompanied by rising prices, a firm might find it
beneficial to: -CORRECT ANSWER-Align itself with one of the suppliers to ensure a continued
supply of the scarce item.
Supply chain management includes the planning and management of all activities involved
in sourcing and procurement, conversion, and all logistics management activities. It also
includes: -CORRECT ANSWER-Coordination and collaboration with channel partners
What company is experimenting with the management of the final mile of delivery in some
markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers?
-CORRECT ANSWER-Amazon
According to the textbook, conditions which must be present for successful supply chain
management include: -CORRECT ANSWER-Cooperation among firms
According to the text, the FOUR important elements of the supply chain are: -CORRECT
ANSWER-Supply, operations, logistics, integration
Which of the following activities would fall under the foundational element of operation? -
CORRECT ANSWER-Demand management
,Which of the following activities allows buyers to assume the supplier will meet certain
product quality and service requirements? -CORRECT ANSWER-Supplier certification
Which of the following is a reverse logistics activity: -CORRECT ANSWER-Recycling products
and components
Which of the following would be considered a third party provider? -CORRECT ANSWER-A
firm that leases storage warehousing
Which of the following acronyms is NOT paired with its correct "translation"? -CORRECT
ANSWER-TLS- Third-Party Logistics Services
Lean production is typically associated with which of the following company's production
systems? -CORRECT ANSWER-Toyota
The following strategy is usually employed by lean organizations is an effort to ensure
continued quality compliance among suppliers and with internal production facilities: -
CORRECT ANSWER-Six Sigma
According to the text, which of the following is considered a current trend in supply chain
management? -CORRECT ANSWER-Using supply chain analytics and increasing supply chain
visibility
Developed in the 1990's as a popular way of developing radically new business processes in
an effort to reduce waste and increase performance is referred to as: -CORRECT ANSWER-
Business process reengineering
An internal or external event that causes a disruption or failure of supply chain operations is
an example of: -CORRECT ANSWER-Supply chain risk
, Which of the following can happen as a result of the bullwhip effect? -CORRECT ANSWER-
Excess costs for each firm in a supply chain
The continuing cycle of erratic demand causing forecasts to include safety stock which in
turn magnify supplier forecasts and cause production planning problems is known as: -
CORRECT ANSWER-Bullwhip effect
The following is an example of the bullwhip effect: -CORRECT ANSWER-Barkely's incorrectly
anticipated consumer demand resulting in stockouts at several popular retailers
A reason for making items instead of buying them would include better quality control. -
CORRECT ANSWER-True
Decentralized purchasing is the practice throughout a single corporation make their own,
individual purchasing decisions to fulfill their individual local needs. -CORRECT ANSWER-True
The primary goals of purchasing include all EXCEPT: -CORRECT ANSWER-Ensure the highest
quality raw materials are purchased
Which of the following refers to the measurement of the impact of change in purchase
spend on a firm's profit before taxes, assuming gross sales and other expenses remain
unchanged? -CORRECT ANSWER-Profit-Leverage Effect
Inventory Turnover can be calculated by: -CORRECT ANSWER-Ratio of cost of goods sold over
average inventory cost
Which type of requisition is used for materials and standard parts that are requested on a
recurring basis? -CORRECT ANSWER-Traveling requisition
When a product is purchased which is complicated or highly technical a ___________ may
be issued instead of a request for quotation. -CORRECT ANSWER-Request for proposal
