SCMT 2103 KENT UARK EXAM
QUESTIONS AND ANSWERS
The objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
Which of the following is a theme throughout the course? - Correct Answers -How
logistics and supply chain management can be used to create a competitive advantage
Supply chain management is the management of the _______ of business processes
between functions in a firm and with suppliers and customers. - Correct Answers -
Integration
Which of the following is a fundamental concept of logistics management? - Correct
Answers -There are tradeoffs among many of the logistics costs and customer service
targets.
The term ____________________ today refers to a firm that supplies logistics and
possibly other supply chain management services. - Correct Answers -third-party
logistics (3PL) providers
Economies of scale is defined as a reduction in ________ when volumes are increased.
- Correct Answers -average cost per unit
A CPFR program allows a producer to determine replenishment quantities in concert
with a retailer and thereby remove redundant inventory and improve customer service.
This activity likely ______________. - Correct Answers -mitigates the bullwhip effect
A key output of a S&OP process is a ______________ forecast. - Correct Answers -
consensus
The measure of forecast error where the average absolute error of each forecast is
shown as a percentage of actual demand is - Correct Answers -mean absolute percent
error (MAPE).
Some measures of forecast accuracy include the running sum of forecast errors, the
mean absolute percentage error, and mean forecast error. The formula for each is
dependent on the forecast error, which is calculated by using the equation: - Correct
Answers -Actual demand for period t minus the forecasted demand for period t
, Relationship in the 4 R's of supply chain competition is defined as being able to -
Correct Answers -manage the connections, the interactions, and communication, and
maintain trust
Safety stock is _______________. - Correct Answers -the expected number of units on
hand just before a replenishment is received and available for use or sale
Which of the following are measures of reliability of a logistics process? - Correct
Answers -Standard deviation & Coefficient of variation
Which of the following formulae calculate annual inventory turns? - Correct Answers -
Units sold in a year / average number of units in inventory
Process improvement is concerned with increasing the speed of the process, reducing
the cost of the process, or increasing the reliability of the process, without changing
____________. - Correct Answers -the order of the activities
Suppose a company orders 10 pallets of bottled water, 14 oz. per bottle, and $0.05 per
bottle. There are 2,000 bottles per pallet. Suppose they use a truckload carrier and it
costs a flat rate of $1,000 for the transportation. So the purchase cost is $0.05 per bottle
X 2,000 bottles per pallet X 10 pallets = $1,000. So the purchase cost plus the
transportation cost is $2,000, hence, the total cost per bottle is $2,,000 bottles =
$0.10 per bottle. In this example, the company only ordered 10 pallets but a truck load
has a capacity of about 20 pallets of bottled water. Instead, suppose they ordered 20
pallets of bottled water, the transportation cost will be the same but the purchase cost
will now be $0.05 per bottle X 2,000 bottles per pallet X 20 pallets = $2,000. Hence the
purchase cost plus the transportation cost is $3,000, so the total cost per bottle is
$3,,000 bottles $0.08 per bottle (rounded - Correct Answers -Economies of
scale
Reliability in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -consistently execute an activity or process at
a target level of performance
Which of the following are common elements of the total cost of ownership model: -
Correct Answers -All of these are part of the TCO model
The ___________ component of customer service includes such factors as availability
of spare parts, technical support, feedback and complaint processes, et cetera. -
Correct Answers -post-transaction
If store perpetual inventory is greater than zero for 37 of the 100 SKUs in a category,
then - Correct Answers -the calculated percentage of items in stock is 37% (assuming
perpetual inventory is accurate)
QUESTIONS AND ANSWERS
The objective of Walmart's early network design strategy was to: - Correct Answers -
Locate stores close to a Distribution Center
Which of the following is a theme throughout the course? - Correct Answers -How
logistics and supply chain management can be used to create a competitive advantage
Supply chain management is the management of the _______ of business processes
between functions in a firm and with suppliers and customers. - Correct Answers -
Integration
Which of the following is a fundamental concept of logistics management? - Correct
Answers -There are tradeoffs among many of the logistics costs and customer service
targets.
The term ____________________ today refers to a firm that supplies logistics and
possibly other supply chain management services. - Correct Answers -third-party
logistics (3PL) providers
Economies of scale is defined as a reduction in ________ when volumes are increased.
- Correct Answers -average cost per unit
A CPFR program allows a producer to determine replenishment quantities in concert
with a retailer and thereby remove redundant inventory and improve customer service.
This activity likely ______________. - Correct Answers -mitigates the bullwhip effect
A key output of a S&OP process is a ______________ forecast. - Correct Answers -
consensus
The measure of forecast error where the average absolute error of each forecast is
shown as a percentage of actual demand is - Correct Answers -mean absolute percent
error (MAPE).
Some measures of forecast accuracy include the running sum of forecast errors, the
mean absolute percentage error, and mean forecast error. The formula for each is
dependent on the forecast error, which is calculated by using the equation: - Correct
Answers -Actual demand for period t minus the forecasted demand for period t
, Relationship in the 4 R's of supply chain competition is defined as being able to -
Correct Answers -manage the connections, the interactions, and communication, and
maintain trust
Safety stock is _______________. - Correct Answers -the expected number of units on
hand just before a replenishment is received and available for use or sale
Which of the following are measures of reliability of a logistics process? - Correct
Answers -Standard deviation & Coefficient of variation
Which of the following formulae calculate annual inventory turns? - Correct Answers -
Units sold in a year / average number of units in inventory
Process improvement is concerned with increasing the speed of the process, reducing
the cost of the process, or increasing the reliability of the process, without changing
____________. - Correct Answers -the order of the activities
Suppose a company orders 10 pallets of bottled water, 14 oz. per bottle, and $0.05 per
bottle. There are 2,000 bottles per pallet. Suppose they use a truckload carrier and it
costs a flat rate of $1,000 for the transportation. So the purchase cost is $0.05 per bottle
X 2,000 bottles per pallet X 10 pallets = $1,000. So the purchase cost plus the
transportation cost is $2,000, hence, the total cost per bottle is $2,,000 bottles =
$0.10 per bottle. In this example, the company only ordered 10 pallets but a truck load
has a capacity of about 20 pallets of bottled water. Instead, suppose they ordered 20
pallets of bottled water, the transportation cost will be the same but the purchase cost
will now be $0.05 per bottle X 2,000 bottles per pallet X 20 pallets = $2,000. Hence the
purchase cost plus the transportation cost is $3,000, so the total cost per bottle is
$3,,000 bottles $0.08 per bottle (rounded - Correct Answers -Economies of
scale
Reliability in the 4 R's of supply chain competition is defined as being able to
_________________. - Correct Answers -consistently execute an activity or process at
a target level of performance
Which of the following are common elements of the total cost of ownership model: -
Correct Answers -All of these are part of the TCO model
The ___________ component of customer service includes such factors as availability
of spare parts, technical support, feedback and complaint processes, et cetera. -
Correct Answers -post-transaction
If store perpetual inventory is greater than zero for 37 of the 100 SKUs in a category,
then - Correct Answers -the calculated percentage of items in stock is 37% (assuming
perpetual inventory is accurate)
