SCM 545 Final Exam | Questions with Verified Answers Updated 2025/2026

SCM 545 Final Exam | Questions with Verified Answers Updated 2025/2026 Which of the following technologies are seen as potentially revolutionary for manufacturing operations? (Select all that apply.) additive manufacturing advanced automation including co-bots (humans working alongside robots) advanced material technologies Supply chain management can best be described by the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. Which of the following companies refers to itself as a "technology company merged with a supply chain"? Amazon How does supply chain management create value? form, time, place, exchange The "Great Divide" in supply chain management occurs between _______ demand-generating activities and demand-fulfilling activities. What megatrend will greatly challenge supply chain managers? (Select all that apply.) Disruptive technology Increasing gaps in talents and skills Geopolitical and social changes What is the ideal situation for companies as they seek to create a competitive advantage through SCM? productivity and value leader Why has supply chain management recently received more recognition? Better recognition of how supply chain creates value for a company Evolution of the concept of integrated supply chain management Increasing name recognition by the media and the general public Supply chains are primarily about cost reduction activities. False It is natural within organizations for functions to cooperate for the good of the overall organization. False What part of the Supply Chain Operations Reference (SCOR) model involves purchasing materials or services? Source What can arise from supply chains that produce large batch sizes with weeks or months before the customer wants the products? Customers don't want the items. The items are in places and at times customers don't want them. Unsold products are sold at reduced prices or scrapped altogether. The concept of bending the chain refers to _____ collaborating across sourcing, manufacturing, and delivery to achieve overall goals. Which of the following would be an appropriate metric for a senior-level supply chain executive who is managing an integrated supply chain? cash-to-cash cycle Which functional organization would typically adopt the key metric of the lowest unit cost of production? Manufacturing Should all customers receive the same level of customer service? No Which of the choices below is not one of the three broad types of customer classifications that can be used to help a company properly segment its supply chain? Value Which of the choices below is not one of the ways that companies can use to foster an integrated approach to supply chain management? finance-driven organization Issues of dis-integration happen both within the supply chain and in its relationship with other business functions. True The supply chain value proposition framework represents the interactions among which of the following? revenues, costs, and assets What has been the traditional top priority of supply chain organizations in most companies? cutting costs Which of these is an example of a "tax haven"? a country or jurisdiction with very low corporate taxes Which of these actions will most directly lead to more cash on hand for an organization? Reduce time for collection of accounts receivable How can a supply chain positively affect the finances of a business? Increase revenue by providing better service Redesign the network to better utilize company assets Lower operational costs Which measurement would likely rise if the supply chain team secured a supplier that provided a new, popular technology to include in the company's product? Revenue Which measurement would likely rise if the supply chain team was able to partner with a logistics provider to use the company-owned trucks and distribution center for more hours per week? asset utilization Which measurement would likely lower if the supply chain team used less raw material through an enhanced manufacturing process? Costs Which of the choices would be the preferred cash conversion cycle? -2 days Which of the choices is not a useful measure for assessing profitability? ROA An ideal Integrated Business Planning process requires participation from all of the following functions except which one? information technology In most cases, demand for a product and the company's ability to produce are not_____ in balance. During the DSI process, if a business concludes that there is more demand in the marketplace than there is capacity in the supply chain for a particular product, the business's reasonable action(s) would be to_____ raise the product's price/decrease the amount of planned promotional effort toward that product. In a business-to-business environment, a customer's demand plan should serve as input to the supplier's_____ demand forecast. Plan-driven forecasting occurs when the firm's financial goals have an inordinate influence on the firm's_____ demand forecast. Which executive should lead the reconciliation review step in DSI? Chief Financial Officer Select the information that is needed to determine the capacity forecast, which is a part of the supply review. (Select all that apply.) anticipated labor constraints scheduled machine downtime for maintenance key suppliers' operational plans Which type of inventory is represented by the example of the Airbus A350 in which the subcomponents such as the fuselage, wings, and landing gear all come together for final assembly? work in process Which type of inventory do firms use to hedge against variation in downstream customer demand and variation in delivery lead time from suppliers? safety stock Which type of product profile would typically require a company to hold less inventory on hand? A basic, stable product with consistent, predictable demand Which one of the types of planning was not introduced in this module? deadline planning What are supply chain measurements often called? (Select all that apply.) key performance indicators performance measures metrics Supply chain measurement is important for which reasons? (Select all that apply.) To provide important information to others in the supply chain To drive employee incentives and alignment To identify where improvement is needed A scorecard that is balanced typically includes which of the following? financial measures quality measures learning and development measures cycle time measures _____ measures are the most important type of supply chain metric. End-to-end What are the three types of benchmarking that were discussed? competitive, process, internal _____involves using software packages to better see trends and patterns in data. Data visualization If a technology company wanted to become world renowned for its customer service, which type of benchmarking might it use to gather data? Process Planners who work at a strategic level with suppliers are called _____ category planners. Planners spend most of their time focusing on exceptions. True Which of the following is the most important "right" of purchasing? the right supplier Which of the following is an area in which successful supply managers need expertise? (Select all that apply.) technological advancements suppliers processes One of the most challenging aspects of purchasing is to ensure an uninterrupted flow of supply. Which of the following might interrupt that flow? (Select all that apply.) natural disasters supplier quality issues logistics interruptions A dollar saved in material costs goes directly to an increase in revenue for the organization. False Purchasing and supply management primarily affects which of the following at the organizational level? revenue and margin Which area of purchasing and supply management would purchase travel services and office supplies? Indirect _____are low in value but often have complex specifications or custom design and, therefore, they require a unique buying process that can be costly or difficult to manage. Bottleneck commodities ___________ are goods that are of high value to internal and external customers but are not in a complex purchasing environment. Leverage commodities ____________ products are of high value to the internal buyer and to the end customer, and dealing with the supply market for those products is highly complex. Strategic commodities Put the four basic steps in the supplier selection process in the correct order. Step 1 identification Step 2 evaluation Step 3 approval Step 4 monitoring Why is manufacturing referred to as the "center" of the supply chain? (Select all that apply.) involves the most people requires the most equipment uses the most resources often is the supply chain constraint Theoretical capacity includes which of the following items? equipment design rate multiplied by 24 hours/day times 365 days/year The following are true about a value. (Select all that apply.) Values reflect what the organization believes. Values include safety, quality, and customer service. Values require ongoing leadership work to support them. Why is safety a value? Safety's importance does not vary with time or situation. What is the advantage of proprietary equipment? provides competitive advantage A current best practice strategy that focuses on equipment maintenance is _____. TPM