SCM 300 Exam 3: Global Supply Operations Questions & Answers |
Grade A | 100% Correct
1. Which of the following is considered one of the three pillars of the Triple
Bottom Line?
A. Production
B. Planet
C. Promotion
D. Price
Answer: B
Explanation: The Triple Bottom Line consists of People (Social), Planet (Environmental),
and Profit (Economic).
2. What is the term for the Japanese philosophy of continuous improvement?
A. Kanban
B. Kaizen
C. Poka-yoke
D. Muda
Answer: B
Explanation: Kaizen means ‘change for better’ and refers to activities that continuously
improve all functions and involve all employees.
3. In Lean systems, ‘Muda’ refers to which of the following?
A. Standardization
B. Overburden
C. Unevenness
D. Waste
Answer: D
,Explanation: Muda is the Japanese word for waste, which Lean aims to eliminate.
4. Moving a business process to a foreign country is known as:
A. Offshoring
B. Insourcing
C. Nearshoring
D. Outsourcing
Answer: A
Explanation: Offshoring is the relocation of a business process from one country to
another, typically an operational process.
5. Which concept describes the phenomenon where small fluctuations in
demand at the retail level cause larger fluctuations at the wholesale and
manufacturing levels?
A. Bullwhip Effect
B. Safety Stock Effect
C. Lag Time Effect
D. Lead Time Effect
Answer: A
Explanation: The bullwhip effect is a distribution channel phenomenon in which forecasts
yield supply chain inefficiencies.
6. Which ‘S’ in the 5S methodology focuses on keeping everything in its place?
A. Sort
B. Straighten
C. Shine
D. Sustain
Answer: B
, Explanation: Straighten (Seiton) involves organizing the necessary items so that they are
easy to use and find.
7. What is the primary goal of JIT (Just-In-Time) production?
A. Maximize inventory levels
B. Reduce waste by producing only what is needed
C. Increase lead times
D. Focus solely on worker safety
Answer: B
Explanation: JIT is an inventory strategy to improve ROI by reducing in-process inventory
and associated carrying costs.
8. A system where a supplier manages the inventory levels for the buyer is
called:
A. VMI (Vendor Managed Inventory)
B. JIT
C. ERP
D. 3PL
Answer: A
Explanation: In VMI, the supplier is responsible for maintaining the buyer’s inventory
levels based on shared data.
9. Which logistics strategy involves unloading materials from an incoming semi-
trailer and loading them directly into outbound trucks with little to no storage in
between?
A. Warehousing
B. Consolidation
C. De-consolidation
D. Cross-docking
Answer: D
Grade A | 100% Correct
1. Which of the following is considered one of the three pillars of the Triple
Bottom Line?
A. Production
B. Planet
C. Promotion
D. Price
Answer: B
Explanation: The Triple Bottom Line consists of People (Social), Planet (Environmental),
and Profit (Economic).
2. What is the term for the Japanese philosophy of continuous improvement?
A. Kanban
B. Kaizen
C. Poka-yoke
D. Muda
Answer: B
Explanation: Kaizen means ‘change for better’ and refers to activities that continuously
improve all functions and involve all employees.
3. In Lean systems, ‘Muda’ refers to which of the following?
A. Standardization
B. Overburden
C. Unevenness
D. Waste
Answer: D
,Explanation: Muda is the Japanese word for waste, which Lean aims to eliminate.
4. Moving a business process to a foreign country is known as:
A. Offshoring
B. Insourcing
C. Nearshoring
D. Outsourcing
Answer: A
Explanation: Offshoring is the relocation of a business process from one country to
another, typically an operational process.
5. Which concept describes the phenomenon where small fluctuations in
demand at the retail level cause larger fluctuations at the wholesale and
manufacturing levels?
A. Bullwhip Effect
B. Safety Stock Effect
C. Lag Time Effect
D. Lead Time Effect
Answer: A
Explanation: The bullwhip effect is a distribution channel phenomenon in which forecasts
yield supply chain inefficiencies.
6. Which ‘S’ in the 5S methodology focuses on keeping everything in its place?
A. Sort
B. Straighten
C. Shine
D. Sustain
Answer: B
, Explanation: Straighten (Seiton) involves organizing the necessary items so that they are
easy to use and find.
7. What is the primary goal of JIT (Just-In-Time) production?
A. Maximize inventory levels
B. Reduce waste by producing only what is needed
C. Increase lead times
D. Focus solely on worker safety
Answer: B
Explanation: JIT is an inventory strategy to improve ROI by reducing in-process inventory
and associated carrying costs.
8. A system where a supplier manages the inventory levels for the buyer is
called:
A. VMI (Vendor Managed Inventory)
B. JIT
C. ERP
D. 3PL
Answer: A
Explanation: In VMI, the supplier is responsible for maintaining the buyer’s inventory
levels based on shared data.
9. Which logistics strategy involves unloading materials from an incoming semi-
trailer and loading them directly into outbound trucks with little to no storage in
between?
A. Warehousing
B. Consolidation
C. De-consolidation
D. Cross-docking
Answer: D
