Supply Chain Management & Planning Flashcards

Which technology enables real-time tracking of shipments, assets, and inventory using radio frequency signals without requiring line-of-sight scanning?

Answer: RFID (Radio Frequency Identification)

RFID uses radio frequency signals to identify and track tagged items without requiring line-of-sight, enabling bulk scanning and real-time inventory visibility.

In lean supply chain management, 'muda' refers to:

Answer: Any activity that consumes resources without adding customer value (waste)

Muda is the Japanese term for waste — any activity, process, or resource consumption that does not add value from the customer's perspective.

A company's Days Sales of Inventory (DSI) increased from 30 to 45 days over one year. What does this indicate?

Answer: Inventory is building up relative to sales, indicating potential overstocking or slowing demand

An increasing DSI means inventory is being held longer before being sold, which may signal excess stock, weakening demand, or poor inventory management.

Which supply chain strategy is most appropriate for products with short lifecycles, unpredictable demand, and high contribution margins?

Answer: Agile (responsive) supply chain focused on speed and flexibility

Agile supply chains prioritize responsiveness and flexibility, which is critical for short-lifecycle, unpredictable demand products where speed-to-market outweighs cost efficiency.

What does 'Total Cost of Ownership' (TCO) analysis reveal when evaluating suppliers that a simple unit price comparison does not?

Answer: All costs associated with acquiring, using, and disposing of a product including quality, lead time, and risk

TCO captures all costs beyond unit price including transportation, quality failures, inventory carrying costs, risk, and administrative costs to provide a true cost comparison.

In supply chain management, 'nearshoring' refers to:

Answer: Relocating manufacturing or sourcing to geographically closer countries to reduce lead times and risk

Nearshoring relocates production or sourcing to nearby countries (e.g., Mexico for US companies) to balance cost savings with shorter lead times and reduced supply chain risk.

Which supply chain planning process reconciles long-term demand plans with financial budgets and production capacity at an aggregate level across a 12-18 month horizon?

Answer: Sales and Operations Planning (S&OP)

S&OP aligns demand, supply, and financial plans at an aggregate level over a medium-term horizon to support strategic and operational decision-making.