COP Supply Chain Fundamentals

Question 1

What is a supply chain?

Accepted Answer

The network of suppliers, manufacturers, distributors, and retailers involved in producing and delivering a product

Answer

The internal workflow of a single warehouse

Answer

The list of vendors approved by the purchasing department

Answer

The software system used to track inventory levels

Question 2

What is a purchase order (PO)?

Accepted Answer

A formal document issued by a buyer to a seller specifying items, quantities, and agreed prices

Answer

A receipt issued after payment is received

Answer

An internal request to move inventory within a warehouse

Answer

A customs document for imported goods

Question 3

What does 'lead time' mean in supply chain management?

Accepted Answer

The total time from placing an order to receiving the goods

Answer

The time a sales lead stays in the CRM before conversion

Answer

The time it takes to generate a purchase order

Answer

The number of days before a price quote expires

Question 4

What is a vendor scorecard?

Accepted Answer

A performance evaluation tool that measures a supplier on metrics like on-time delivery, quality, and fill rate

Answer

A document listing all approved vendors by category

Answer

A price comparison sheet used during procurement negotiations

Answer

A credit rating report from the supplier's bank

Question 5

What is the 'bullwhip effect' in supply chains?

Accepted Answer

The amplification of demand fluctuations as orders move upstream from retailer to manufacturer

Answer

A rapid price increase caused by raw material shortages

Answer

Excessive overtime caused by peak-season demand

Answer

A problem with ERP systems generating duplicate purchase orders

Question 6

Which term describes a supplier who provides a product directly without going through a wholesaler or distributor?

Accepted Answer

Direct or first-tier supplier

Answer

Tier-2 supplier

Answer

Value-added reseller

Answer

Contract manufacturer