MIB Global Supply Chain Management 1

Question 1

What is 'nearshoring' in global supply chain management?

Accepted Answer

Relocating operations to a nearby country

Answer

Nearshoring involves relocating business processes or manufacturing to a geographically close country, balancing cost savings with reduced logistics complexity.

Question 2

The 'bullwhip effect' in supply chains refers to:

Accepted Answer

Increasing demand variability as orders move upstream

Answer

The bullwhip effect describes how small demand fluctuations at the retail level get amplified into large swings in inventory and orders further up the supply chain.

Question 3

Which inventory management philosophy aims to receive goods only as they are needed in the production process?

Accepted Answer

Just-In-Time (JIT)

Answer

Just-In-Time (JIT) inventory management minimizes holding costs by synchronizing material deliveries with production schedules, requiring reliable supplier relationships.

Question 4

A 'free trade zone' (FTZ) benefits international supply chains primarily because:

Accepted Answer

Goods can be stored and processed without paying import duties

Answer

Free trade zones allow goods to be imported, stored, processed, and re-exported without incurring standard customs duties, reducing costs for international supply chains.

Question 5

Which risk management strategy involves sourcing the same component from multiple suppliers in different countries?

Accepted Answer

Multi-sourcing

Answer

Multi-sourcing distributes procurement across several suppliers in different geographic locations to reduce dependency risk from disruptions affecting any single source.

MIB - Master of International Business Practice Test

MIB - Master of International Business Practice Test

MIB Global Supply Chain Management 1