MQM 227 Actual Questions and Correct Answers
Q1
The design and management of seamless, value-added processes across organizational
boundaries to meet the real needs of the end customer is called: Demand management
Distribution channel management Supply chain management Logistics management
Answer: C. Supply chain management
Q2
Which of the following statements is NOT true regarding supply chain operations? All elements
of the supply chain are interconnected and dependent on each other. Demand changes by the
end user can create a bullwhip effect in the supply chain. With perfect information at all levels
of the supply chain, there will not be a bullwhip effect. Time lags in the supply chain serve to
create fluctuations in orders and inventories.
Answer: C. With perfect information at all levels of the supply chain, there will not be
a bullwhip effect.
Q3
The five measures of supply chain performance are: Cost, quality, flexibility, delivery, and time
Cost, quality, time, delivery, and reliability Inventory, quality, time, delivery, and flexibility
Inventory, cost, quality, time, and delivery
Answer: A. Cost, quality, flexibility, delivery, and time
Q4
The average cash-to-cash cycle is defined as: Days in inventory + Days in account receivable +
Days in accounts payable Days in inventory - Days in account receivable + Days in accounts
payable Days in inventory + Days in account receivable - Days in accounts payable Days in
inventory - Days in account receivable - Days in accounts payable
Answer: C. Days in inventory + Days in account receivable - Days in accounts payable
Q5
Backward or upstream supply chain flows include: Information Monetary payments Materials All
of the above
Answer: D. All of the above
, Q6
Which of the following is NOT a characteristic of changes in structure? Are long-range in nature
and require considerable capital. Include changes in capacity, facilities, process technology, and
vertical integration. Lead to changes in information systems. Are related to bricks and mortar.
Answer: C. Lead to changes in information systems.
Q7
Which of the following is a form of infrastructure change? Process simplification Product
redesign Changes in information systems Forward integration
Answer: C. Changes in information systems
Q8
Which of the following is NOT true of vertical integration? Leads to greater flexibility to
changing technology. Can result in a loss of economies of scale. Helps achieve control of the
supply chain. Reap the profits of the supplier or distributor when there is an attractive return
from the investment.
Answer: A. Leads to greater flexibility to changing technology.
Q9
Which of the following is NOT true about supply chain dynamics? The supply chain is a highly
interactive system. There is an accelerator effect in the supply chain due to replenishment lead
times. The best way to improve the supply chain is to increase the total replenishment time and
to feed back actual demand information to all levels. All of the above statements are true.
Answer: C. The best way to improve the supply chain is to increase the total
replenishment time and to feed back actual demand information to all levels.
Q10
Which of the following is NOT a specific measure of supply chain performance? Quality Time
Innovation Delivery
Answer: C. Innovation
Q11
Which of the following is NOT a form of structural change of the supply chain? Forward and
backward integration Creating cross-functional teams Major process simplification Outsourcing
logistics to a third party
Answer: B. Creating cross-functional teams
Q1
The design and management of seamless, value-added processes across organizational
boundaries to meet the real needs of the end customer is called: Demand management
Distribution channel management Supply chain management Logistics management
Answer: C. Supply chain management
Q2
Which of the following statements is NOT true regarding supply chain operations? All elements
of the supply chain are interconnected and dependent on each other. Demand changes by the
end user can create a bullwhip effect in the supply chain. With perfect information at all levels
of the supply chain, there will not be a bullwhip effect. Time lags in the supply chain serve to
create fluctuations in orders and inventories.
Answer: C. With perfect information at all levels of the supply chain, there will not be
a bullwhip effect.
Q3
The five measures of supply chain performance are: Cost, quality, flexibility, delivery, and time
Cost, quality, time, delivery, and reliability Inventory, quality, time, delivery, and flexibility
Inventory, cost, quality, time, and delivery
Answer: A. Cost, quality, flexibility, delivery, and time
Q4
The average cash-to-cash cycle is defined as: Days in inventory + Days in account receivable +
Days in accounts payable Days in inventory - Days in account receivable + Days in accounts
payable Days in inventory + Days in account receivable - Days in accounts payable Days in
inventory - Days in account receivable - Days in accounts payable
Answer: C. Days in inventory + Days in account receivable - Days in accounts payable
Q5
Backward or upstream supply chain flows include: Information Monetary payments Materials All
of the above
Answer: D. All of the above
, Q6
Which of the following is NOT a characteristic of changes in structure? Are long-range in nature
and require considerable capital. Include changes in capacity, facilities, process technology, and
vertical integration. Lead to changes in information systems. Are related to bricks and mortar.
Answer: C. Lead to changes in information systems.
Q7
Which of the following is a form of infrastructure change? Process simplification Product
redesign Changes in information systems Forward integration
Answer: C. Changes in information systems
Q8
Which of the following is NOT true of vertical integration? Leads to greater flexibility to
changing technology. Can result in a loss of economies of scale. Helps achieve control of the
supply chain. Reap the profits of the supplier or distributor when there is an attractive return
from the investment.
Answer: A. Leads to greater flexibility to changing technology.
Q9
Which of the following is NOT true about supply chain dynamics? The supply chain is a highly
interactive system. There is an accelerator effect in the supply chain due to replenishment lead
times. The best way to improve the supply chain is to increase the total replenishment time and
to feed back actual demand information to all levels. All of the above statements are true.
Answer: C. The best way to improve the supply chain is to increase the total
replenishment time and to feed back actual demand information to all levels.
Q10
Which of the following is NOT a specific measure of supply chain performance? Quality Time
Innovation Delivery
Answer: C. Innovation
Q11
Which of the following is NOT a form of structural change of the supply chain? Forward and
backward integration Creating cross-functional teams Major process simplification Outsourcing
logistics to a third party
Answer: B. Creating cross-functional teams
