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Supply Chain Management & Planning Flashcards

7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Supply Chain Management & Planning flashcards as text

  1. Which supply chain model is characterized by products being made to customer specifications only after an order is received?

    Answer: Make-to-Order (MTO)

    Make-to-Order production begins only after a customer order is received, eliminating finished goods inventory risk.

  2. What is the primary purpose of a 'Bill of Materials' (BOM) in supply chain planning?

    Answer: Define the components and quantities needed to manufacture a product

    A Bill of Materials lists all components, sub-assemblies, and quantities required to produce a finished product.

  3. In supply chain finance, 'supply chain financing' (reverse factoring) primarily benefits which party?

    Answer: Both buyer and supplier by optimizing working capital for both

    Reverse factoring benefits both parties — buyers extend payment terms while suppliers receive early payment at lower rates due to the buyer's credit rating.

  4. Which approach involves sharing real-time point-of-sale data with upstream suppliers to reduce the bullwhip effect?

    Answer: Vendor Managed Inventory (VMI)

    Vendor Managed Inventory uses shared POS data to allow suppliers to manage replenishment directly, reducing demand signal distortion.

  5. A company wants to reduce its supply chain's carbon footprint. Which strategy directly addresses scope 3 emissions in the supply chain?

    Answer: Engaging suppliers to measure and reduce their own emissions

    Scope 3 emissions include upstream and downstream supply chain emissions; engaging suppliers to reduce their emissions directly addresses this category.

  6. What does 'OTIF' stand for, and why is it important in supply chain performance management?

    Answer: On-Time In-Full; it measures whether deliveries meet both timing and quantity commitments

    OTIF (On-Time In-Full) measures the percentage of deliveries that arrive both on schedule and with the complete ordered quantity.

  7. Which supply chain planning concept involves creating multiple scenarios (optimistic, pessimistic, most likely) to prepare for demand uncertainty?

    Answer: Scenario planning

    Scenario planning develops multiple plausible future states to help supply chain teams prepare contingency responses for demand uncertainty.