SCM Final Exam study notes verified to
pass 2026/2027
Evidence of the growth and influence of supply management in an organization includes: - correct
answer involvement in strategic planning and executive status of the chief supply officer.
Total Quality Management: (Choose all that apply)
Is managed proactively
Involves only production processes
Focuses on the customer
Ensures on-time delivery - correct answer Managed Proactively
Focuses on the customer
The document that lists and details the contents and conditions of a shipment is called ______. - correct
answer the bill of lading
Company image may be directly influenced by: - correct answer treating suppliers in a fair and equitable
manner, complying with regulatory requirements and sustainability practices of suppliers.
The consignee is ______. - correct answer the customer receiving the product
,Which of these is not a cost of quality?
External failure cost
Prevention cost
Design cost
Inspection cost - correct answer design cost
The use of the concepts of purchasing, procurement, supply, and supply chain management will vary
from organization to organization depending on: - correct answer the organization's stage of
development and/or sophistication, the industry in which they operate and the organization's
competitive position.
If you want the consignee to be responsible for goods while they are in-transit you should ship products
______. - correct answer to FOB origin
Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.
True or False - correct answer False
All of the following represent external failure cost EXCEPT the cost of:
Scrapping defective raw material.
Repairing items covered by warranty.
,Replacing defective items found by customers.
Loss of goodwill and reputation. - correct answer Scrapping Defective Raw Material
The design and management of seamless, value-added processes across organizational boundaries to
meet the needs of the end customer is called: - correct answer Supply chain management
Generally the least costly method of moving product that is not gaseous, liquid, or slurry is: - correct
answer Water
Supply has the potential to contribute to: - correct answer profitability, competitive position and
sustainability performance.
If a transportation vehicle has completed a delivery and is returned empty, the situation is called a: -
correct answer deadhead
Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a constant
temperature. If the acceptable temperature range for making the cookies is 350 plus or minus 5
degrees, what is the allowable standard deviation in the temperature of her oven in order to achieve a
Six Sigma level of quality?
Standard Dev = ??? - correct answer Standard Dev = .833 degrees
= 10 degree range / (6*2)
, For an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million
before tax, a 10 percent reduction in purchase spend would result in an increase in profit of: - correct
answer 75%
Among the following choices which is typically the most expensive transportation mode:
Air
Water
Truck
Rail - correct answer air
Persons with responsibilities in which business function will make decisions regarding new product
testing programs? - correct answer Marketing
Why is product quality sometimes poorly defined in a firm? - correct answer Managers are not clear on
what characteristics customers care most about.
Holistic measures of quality are difficult to develop.
Managers in different functional areas tend to emphasize different dimensions of quality.
All these answers are correct.
Since 1995 the use of intermodal transportation has: - correct answer increased significantly
Interest in the supply function as a managerial activity began: - correct answer during World Wars I and
II because of global materials shortages.
pass 2026/2027
Evidence of the growth and influence of supply management in an organization includes: - correct
answer involvement in strategic planning and executive status of the chief supply officer.
Total Quality Management: (Choose all that apply)
Is managed proactively
Involves only production processes
Focuses on the customer
Ensures on-time delivery - correct answer Managed Proactively
Focuses on the customer
The document that lists and details the contents and conditions of a shipment is called ______. - correct
answer the bill of lading
Company image may be directly influenced by: - correct answer treating suppliers in a fair and equitable
manner, complying with regulatory requirements and sustainability practices of suppliers.
The consignee is ______. - correct answer the customer receiving the product
,Which of these is not a cost of quality?
External failure cost
Prevention cost
Design cost
Inspection cost - correct answer design cost
The use of the concepts of purchasing, procurement, supply, and supply chain management will vary
from organization to organization depending on: - correct answer the organization's stage of
development and/or sophistication, the industry in which they operate and the organization's
competitive position.
If you want the consignee to be responsible for goods while they are in-transit you should ship products
______. - correct answer to FOB origin
Design-for-Six-Sigma programs offer a set of quality standards accepted by all industries.
True or False - correct answer False
All of the following represent external failure cost EXCEPT the cost of:
Scrapping defective raw material.
Repairing items covered by warranty.
,Replacing defective items found by customers.
Loss of goodwill and reputation. - correct answer Scrapping Defective Raw Material
The design and management of seamless, value-added processes across organizational boundaries to
meet the needs of the end customer is called: - correct answer Supply chain management
Generally the least costly method of moving product that is not gaseous, liquid, or slurry is: - correct
answer Water
Supply has the potential to contribute to: - correct answer profitability, competitive position and
sustainability performance.
If a transportation vehicle has completed a delivery and is returned empty, the situation is called a: -
correct answer deadhead
Rachel loves to bake cookies, but she has an old oven that has trouble maintaining a constant
temperature. If the acceptable temperature range for making the cookies is 350 plus or minus 5
degrees, what is the allowable standard deviation in the temperature of her oven in order to achieve a
Six Sigma level of quality?
Standard Dev = ??? - correct answer Standard Dev = .833 degrees
= 10 degree range / (6*2)
, For an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million
before tax, a 10 percent reduction in purchase spend would result in an increase in profit of: - correct
answer 75%
Among the following choices which is typically the most expensive transportation mode:
Air
Water
Truck
Rail - correct answer air
Persons with responsibilities in which business function will make decisions regarding new product
testing programs? - correct answer Marketing
Why is product quality sometimes poorly defined in a firm? - correct answer Managers are not clear on
what characteristics customers care most about.
Holistic measures of quality are difficult to develop.
Managers in different functional areas tend to emphasize different dimensions of quality.
All these answers are correct.
Since 1995 the use of intermodal transportation has: - correct answer increased significantly
Interest in the supply function as a managerial activity began: - correct answer during World Wars I and
II because of global materials shortages.
