Supply Chain Operations & Logistics Management Flashcards

Which supply chain collaboration model involves a retailer and supplier jointly planning forecasts and replenishment orders to reduce inventory and improve service levels?

Answer: Collaborative Planning, Forecasting, and Replenishment (CPFR)

CPFR is a formalized process where trading partners share data and jointly create a single demand forecast and replenishment plan.

A logistics network design project seeks to minimize total system cost. Which pair of costs typically moves in opposite directions as the number of distribution centers increases?

Answer: Outbound transportation cost and facility/inventory cost

Adding DCs reduces outbound transportation distances and costs but increases fixed facility costs and total safety stock requirements.

Which regulatory body governs hazardous materials transportation by road in the United States?

Answer: Pipeline and Hazardous Materials Safety Administration (PHMSA)

PHMSA sets the Hazardous Materials Regulations (HMR) that govern packaging, labeling, and transport of dangerous goods on US roads.

In demand planning, 'forecast bias' indicates that a forecasting model is systematically:

Answer: Consistently over- or under-predicting actual demand

Forecast bias is a directional error — the model continuously forecasts too high (optimistic bias) or too low (pessimistic bias) rather than randomly around the true value.

A supply chain manager wants to apply Total Cost of Ownership (TCO) analysis when selecting a supplier. Which cost would be LEAST relevant to include?

Answer: Supplier's internal marketing budget

TCO captures all costs the buyer incurs related to acquiring and using the product; a supplier's own marketing spend does not affect the buyer's total cost.

Which technology uses radio waves to automatically identify and track tagged items throughout the supply chain without requiring line-of-sight scanning?

Answer: RFID (Radio Frequency Identification)

RFID tags can be read through packaging and at distance, enabling automated, high-speed tracking without manual line-of-sight scanning.

The concept of 'supply chain visibility' primarily enables organizations to:

Answer: Monitor inventory and shipment status in real time across the supply chain

Real-time visibility into inventory levels, shipment locations, and order status allows faster, more informed decisions and proactive disruption response.