DMD Supply Chain & Logistics in Manufacturing 1 — Questions and Answers
Question 1: What does 'Just-In-Time' (JIT) manufacturing aim to achieve in supply chain management?
- Receiving materials and producing goods only as needed to reduce inventory waste (Correct answer)
- Producing as much as possible in advance
- Delivering finished goods just before a warranty expires
- Scheduling all deliveries at the same time
Correct answer: Receiving materials and producing goods only as needed to reduce inventory waste
JIT minimizes inventory by synchronizing material delivery and production with actual customer demand, reducing waste and carrying costs.
Question 2: Which technology is most commonly used in modern US supply chains to provide real-time tracking of parts and shipments?
- RFID (Radio Frequency Identification) (Correct answer)
- Fax machines
- Barcode scanners only
- Manual ledgers
Correct answer: RFID (Radio Frequency Identification)
RFID uses radio waves to automatically identify and track tagged items throughout the supply chain without line-of-sight scanning.
Question 3: What is 'demand forecasting' in digital supply chain management?
- Using historical data and analytics to predict future customer demand for products (Correct answer)
- Estimating how much raw material is available
- Scheduling machine downtime in advance
- Forecasting supplier price increases
Correct answer: Using historical data and analytics to predict future customer demand for products
Demand forecasting uses statistical models and historical sales data to predict future demand, enabling better production and procurement planning.
Question 4: In supply chain terminology, what is the 'bullwhip effect'?
- The amplification of demand variability as orders move upstream in the supply chain (Correct answer)
- A method for snapping supply chain delays
- A forecasting technique using moving averages
- The effect of price increases on supplier lead times
Correct answer: The amplification of demand variability as orders move upstream in the supply chain
The bullwhip effect occurs when small fluctuations in consumer demand cause increasingly larger swings in orders further up the supply chain.
Question 5: What is the primary function of an ERP (Enterprise Resource Planning) system in digital manufacturing?
- To integrate and manage core business processes including production, inventory, procurement, and finance (Correct answer)
- To design new product prototypes
- To monitor machine vibration and temperature
- To manage employee payroll only
Correct answer: To integrate and manage core business processes including production, inventory, procurement, and finance
ERP systems unify data across all business functions — manufacturing, procurement, inventory, sales, and finance — into a single integrated platform.
Question 6: Which supply chain metric measures the average time between placing an order and receiving the goods?
- Lead time (Correct answer)
- Cycle time
- Takt time
- Throughput time
Correct answer: Lead time
Lead time measures the elapsed time from when an order is placed to when it is delivered, encompassing procurement, production, and shipping.
DMD Supply Chain & Logistics in Manufacturing 1
What does 'Just-In-Time' (JIT) manufacturing aim to achieve in supply chain management?