Practice Test Geeks(COM) Certified Operations Manager Practice Test
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Supply Chain & Logistics Management Flashcards

7 cards from real COM 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 & Logistics Management flashcards as text

  1. A company experiences a sudden supplier bankruptcy. Which risk mitigation strategy would BEST address single-source dependency?

    Answer: Dual-source or multi-source critical components

    Dual- or multi-sourcing critical components eliminates single-supplier dependency and ensures supply continuity if one source fails.

  2. Which metric measures the percentage of customer orders fulfilled completely from available stock without backorders?

    Answer: Fill rate

    Fill rate measures the proportion of customer demand satisfied immediately from on-hand inventory without stockouts or backorders.

  3. In a cross-docking operation, inbound shipments are:

    Answer: Transferred directly to outbound vehicles with minimal storage

    Cross-docking transfers goods from inbound to outbound docks with little or no warehousing, reducing handling time and storage costs.

  4. The Bullwhip Effect in supply chains refers to:

    Answer: Demand variability amplification as orders move upstream

    The Bullwhip Effect describes how small fluctuations in end-consumer demand get amplified into larger order swings as they travel upstream through the supply chain.

  5. A 3PL provider differs from a 4PL provider primarily because a 4PL:

    Answer: Manages the entire supply chain including multiple 3PLs

    A 4PL (fourth-party logistics) provider acts as a supply chain integrator, managing a company's entire logistics network including oversight of multiple 3PLs.

  6. Which inventory valuation method assumes the most recently purchased goods are sold first, resulting in higher COGS during inflation?

    Answer: LIFO

    LIFO (Last-In, First-Out) assumes the newest inventory is sold first, which increases cost of goods sold and reduces taxable income during inflationary periods.

  7. A company's Days Inventory Outstanding (DIO) decreased from 45 to 30 days. This change indicates:

    Answer: Inventory is being converted to sales more quickly

    A lower DIO means inventory is turning over faster, indicating the company is converting stock into sales more efficiently.