CBM CBM Supply Chain & Operations Management

Question 1

Which inventory management method assumes the most recently purchased items are sold first?

Accepted Answer

Last In, First Out (LIFO)

Answer

First In, First Out (FIFO)

Answer

Weighted Average Cost

Answer

Specific Identification

Question 2

What is the primary goal of Just-In-Time (JIT) inventory management?

Accepted Answer

To minimize inventory holding costs by receiving goods only as they are needed in production

Answer

To maintain large safety stock to prevent stockouts

Answer

To negotiate the longest possible payment terms with suppliers

Answer

To consolidate all suppliers into a single vendor

Question 3

Which supply chain risk is directly caused by small fluctuations in consumer demand being amplified into large swings in upstream orders?

Accepted Answer

Bullwhip Effect

Answer

Supply Chain Disruption

Answer

Demand Cannibalization

Answer

Inventory Shrinkage

Question 4

A company wants to reduce the time between receiving a customer order and delivering the product. Which metric directly measures this?

Accepted Answer

Order-to-Delivery Cycle Time

Answer

Inventory Turnover Ratio

Answer

Fill Rate

Answer

Days Sales Outstanding

Question 5

What does 'vertical integration' mean in the context of supply chain strategy?

Accepted Answer

A company controls multiple stages of its supply chain, from raw materials to distribution

Answer

A company outsources all non-core supply chain functions

Answer

A company forms alliances with competitors to share logistics costs

Answer

A company uses technology to automate warehouse operations

Question 6

Which forecasting method calculates demand forecasts by weighting recent data more heavily than older data?

Accepted Answer

Exponential Smoothing

Answer

Simple Moving Average

Answer

Regression Analysis

Answer

Delphi Method