©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
SCMA 3301 Exam 1 Questions With Correct
Answers
Supply Chain Management - answer✔Involves integrating and managing the flow of supplies
throughout the inputs, transformation processes and outputs in order to best meet the needs
of customers.
Sourcing - answer✔Refers to the purchasing of inputs for the transformation processes.
Global Sourcing - answer✔Broad term that refers to businesses purchasing supplies or services
without being constrained by location.
E-Commerce - answer✔Involves the buying and selling of goods and services via the internet.
E-procurement - answer✔Use of online systems to manage supply, allows suppliers direct
access to the business's level of supplies.
Logistics - answer✔A term broadly referring to distribution but includes transportation, the use
of storage, warehousing and distribution centres, material handling and packaging.
Distribution - answer✔Refers to the ways of getting the goods or services to the customer.
Storage - answer✔Involves finding a secure place to hold stock until it is required
Warehousing - answer✔The use of warehouses for the storage, protection and, later,
distribution of stock.
Domestic Sourcing - answer✔Broad term referring to the business sourcing supplies within the
country or state.
Supply Chain Management starts with understanding the flow. T/F - answer✔true
The bullwhip effect can occur when the demand for a product is based on a forecast, rather
than on actual consumer requirements/consumption. T/F - answer✔true
In the Make-to-Order or Pull Model, stock is produced on the basis of anticipated (i.e.,
forecasted) demand. T/F - answer✔false
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, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
The goal of Supply Chain Management is to increase customer service by increasing inventory
and reducing costs. T/F - answer✔false
Successful modern supply chain management typically includes the practice of ?
A. Keeping high inventories throughout the supply chain
B. Always purchasing materials with the lowest per unit cost
C. Sharing information between supply chain partners
D. Issuing ultimatums to your supply chain partners - answer✔C. Sharing information between
supply chain partners
In the future companies will focus on?
A. Relationships
B. Sustainability
C. Social Responsibility
D. All of the above
E. B & C only - answer✔D. All of the above
The Qualitative forecasting method is based on opinion & intuition. T/F - answer✔true
Forecasts are most accurate for long time periods. T/F - answer✔false
Cause-and-Effect Models can have multiple independent variables. T/F - answer✔true
Which one of the following is not a type of qualitative forecasting?
A. Sales force composite
B. Consumer survey
C. Jury of executive opinion
D. Naïve method - answer✔D. Naïve method
What does the acronym CPFR represent?
A. Coordinated Planning & Forecasting Relationships
B. Collaborative Planning, Forecasting, & Replenishment
C. Centralized Purchasing & Forecasting Relationships
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11/16/2024 10:16 AM
D. Collaborative Purchasing, Forecasting, & Receivables - answer✔B. Collaborative Planning,
Forecasting, & Replenishment
The goal of resource planning is to minimize the discrepancy between an organization's
capacity and demand results. T/F - answer✔true
Material Requirement Planning is the system intended to develop long-range plans (more than
a year away) concerning product families manufactured by the organization. T/F - answer✔false
The three basic production strategies for addressing the aggregate planning problem are the
chase production strategy, the level production strategy, and the mixed production strategy.
T/F - answer✔true
The Chase Production Strategy relies on a constant output rate and capacity while varying
inventory and backlog levels to handle the fluctuating demand pattern. T/F - answer✔false
Which of the following is an engineering document that shows an inclusive listing of all the
component parts and assemblies making up the final product?
A. Master Production Schedule
B. Bill of Materials
C. Distribution Requirement Plan
D. Resource Requirement Plan - answer✔B. Bill of Materials
The medium-range capacity planning technique used to check the feasibility of the Master
Production Schedule (MPS) is called:
A. Resource Requirement Planning (RRP)
B. Rough-cut Capacity Planning (RCCP)
C. Capacity Requirement Planning (CRP)
D. None of the above - answer✔B. Rough-cut Capacity Planning (RCCP)
Which of the following MRP terms represents a committed order awaiting delivery for a specific
period?
A. Projected on-hand inventory
B. Time bucket
C. Net requirement
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11/16/2024 10:16 AM
D. Scheduled receipt - answer✔D. Scheduled receipt
Organizations that choose to implement one single system with all of the desired applications
from a single vendor is said to have chosen a:
A. Best-of-breed solution
B. Elite integrator solution
C. Single integrator solution
D. Premier application solution - answer✔C. Single integrator solution
The four broad categories of inventory are raw materials, work-in-process, MRO, and finished
goods. T/F - answer✔true
The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual
total inventory cost. T/F - answer✔true
The top 2 primary functions of inventory are
(1) Buffer against uncertainty in the marketplace
(2) Decouple dependencies in the supply chain. T/F - answer✔true
Inventory costs which are independent of the output quantity are called?
A. Indirect Costs
B. Variable Costs
C. Fixed Costs
D. Carrying Costs - answer✔C. Fixed Costs
Which of the following is NOT an example of an ordering cost for products purchased from a
supplier?
A. The cost of transmitting the order
B. The cost of receiving the product
C. The cost associated with processing the invoice
D. The opportunity cost of not ordering from a least cost supplier
E. The cost of handling the product - answer✔D. The opportunity cost of not ordering from a
least cost supplier
4|Page
11/16/2024 10:16 AM
SCMA 3301 Exam 1 Questions With Correct
Answers
Supply Chain Management - answer✔Involves integrating and managing the flow of supplies
throughout the inputs, transformation processes and outputs in order to best meet the needs
of customers.
Sourcing - answer✔Refers to the purchasing of inputs for the transformation processes.
Global Sourcing - answer✔Broad term that refers to businesses purchasing supplies or services
without being constrained by location.
E-Commerce - answer✔Involves the buying and selling of goods and services via the internet.
E-procurement - answer✔Use of online systems to manage supply, allows suppliers direct
access to the business's level of supplies.
Logistics - answer✔A term broadly referring to distribution but includes transportation, the use
of storage, warehousing and distribution centres, material handling and packaging.
Distribution - answer✔Refers to the ways of getting the goods or services to the customer.
Storage - answer✔Involves finding a secure place to hold stock until it is required
Warehousing - answer✔The use of warehouses for the storage, protection and, later,
distribution of stock.
Domestic Sourcing - answer✔Broad term referring to the business sourcing supplies within the
country or state.
Supply Chain Management starts with understanding the flow. T/F - answer✔true
The bullwhip effect can occur when the demand for a product is based on a forecast, rather
than on actual consumer requirements/consumption. T/F - answer✔true
In the Make-to-Order or Pull Model, stock is produced on the basis of anticipated (i.e.,
forecasted) demand. T/F - answer✔false
1|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
The goal of Supply Chain Management is to increase customer service by increasing inventory
and reducing costs. T/F - answer✔false
Successful modern supply chain management typically includes the practice of ?
A. Keeping high inventories throughout the supply chain
B. Always purchasing materials with the lowest per unit cost
C. Sharing information between supply chain partners
D. Issuing ultimatums to your supply chain partners - answer✔C. Sharing information between
supply chain partners
In the future companies will focus on?
A. Relationships
B. Sustainability
C. Social Responsibility
D. All of the above
E. B & C only - answer✔D. All of the above
The Qualitative forecasting method is based on opinion & intuition. T/F - answer✔true
Forecasts are most accurate for long time periods. T/F - answer✔false
Cause-and-Effect Models can have multiple independent variables. T/F - answer✔true
Which one of the following is not a type of qualitative forecasting?
A. Sales force composite
B. Consumer survey
C. Jury of executive opinion
D. Naïve method - answer✔D. Naïve method
What does the acronym CPFR represent?
A. Coordinated Planning & Forecasting Relationships
B. Collaborative Planning, Forecasting, & Replenishment
C. Centralized Purchasing & Forecasting Relationships
2|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
D. Collaborative Purchasing, Forecasting, & Receivables - answer✔B. Collaborative Planning,
Forecasting, & Replenishment
The goal of resource planning is to minimize the discrepancy between an organization's
capacity and demand results. T/F - answer✔true
Material Requirement Planning is the system intended to develop long-range plans (more than
a year away) concerning product families manufactured by the organization. T/F - answer✔false
The three basic production strategies for addressing the aggregate planning problem are the
chase production strategy, the level production strategy, and the mixed production strategy.
T/F - answer✔true
The Chase Production Strategy relies on a constant output rate and capacity while varying
inventory and backlog levels to handle the fluctuating demand pattern. T/F - answer✔false
Which of the following is an engineering document that shows an inclusive listing of all the
component parts and assemblies making up the final product?
A. Master Production Schedule
B. Bill of Materials
C. Distribution Requirement Plan
D. Resource Requirement Plan - answer✔B. Bill of Materials
The medium-range capacity planning technique used to check the feasibility of the Master
Production Schedule (MPS) is called:
A. Resource Requirement Planning (RRP)
B. Rough-cut Capacity Planning (RCCP)
C. Capacity Requirement Planning (CRP)
D. None of the above - answer✔B. Rough-cut Capacity Planning (RCCP)
Which of the following MRP terms represents a committed order awaiting delivery for a specific
period?
A. Projected on-hand inventory
B. Time bucket
C. Net requirement
3|Page
, ©BRIGHTSTARS EXAM SOLUTIONS
11/16/2024 10:16 AM
D. Scheduled receipt - answer✔D. Scheduled receipt
Organizations that choose to implement one single system with all of the desired applications
from a single vendor is said to have chosen a:
A. Best-of-breed solution
B. Elite integrator solution
C. Single integrator solution
D. Premier application solution - answer✔C. Single integrator solution
The four broad categories of inventory are raw materials, work-in-process, MRO, and finished
goods. T/F - answer✔true
The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual
total inventory cost. T/F - answer✔true
The top 2 primary functions of inventory are
(1) Buffer against uncertainty in the marketplace
(2) Decouple dependencies in the supply chain. T/F - answer✔true
Inventory costs which are independent of the output quantity are called?
A. Indirect Costs
B. Variable Costs
C. Fixed Costs
D. Carrying Costs - answer✔C. Fixed Costs
Which of the following is NOT an example of an ordering cost for products purchased from a
supplier?
A. The cost of transmitting the order
B. The cost of receiving the product
C. The cost associated with processing the invoice
D. The opportunity cost of not ordering from a least cost supplier
E. The cost of handling the product - answer✔D. The opportunity cost of not ordering from a
least cost supplier
4|Page
