Manufacturing and Production Supply Chain Management

Question 1

What does EOQ stand for in inventory management?

Accepted Answer

Economic Order Quantity

Answer

End-of-Quarter order

Answer

Estimated Output Quality

Answer

Emergency Order Queue

Question 2

Safety stock in supply chain management is maintained to:

Accepted Answer

Buffer against demand variability and supply uncertainty

Answer

Reduce warehouse space

Answer

Increase supplier leverage

Answer

Lower unit purchase price

Question 3

The 'bullwhip effect' in supply chains refers to:

Accepted Answer

Amplification of demand variability as orders move upstream through the supply chain

Answer

A safety hazard from overhead cranes

Answer

A method for fast supplier delivery

Answer

A technique for forecasting seasonal demand

Question 4

Just-in-Time (JIT) inventory management aims to:

Accepted Answer

Receive materials only as they are needed in the production process

Answer

Stock large quantities to prevent any shortage

Answer

Automate purchasing decisions

Answer

Maintain a 90-day safety stock

Question 5

What is a vendor-managed inventory (VMI) arrangement?

Accepted Answer

The supplier monitors and replenishes the customer's inventory automatically

Answer

The customer manages their own inventory levels

Answer

A third-party logistics firm manages all inventory

Answer

An ERP system that automates purchase orders

Question 6

ABC inventory classification categorizes items based on:

Accepted Answer

Annual consumption value to prioritize control efforts

Answer

Alphabetical order of SKU names

Answer

Size and weight of items

Answer

Supplier location and lead time