Supply Chain and Logistics Supply Chain Planning and Strategy 1

Question 1

What is Sales and Operations Planning (S&OP)?

Accepted Answer

A cross-functional process that aligns demand, supply, and financial plans

Answer

S&OP integrates demand forecasting, supply planning, and financial planning to align the whole organization on one operating plan.

Question 2

What is the bullwhip effect in supply chains?

Accepted Answer

Increasing demand variability amplification moving upstream through a supply chain

Answer

The bullwhip effect describes how small fluctuations in consumer demand escalate into large swings in orders placed with upstream suppliers.

Question 3

What does demand forecasting involve in supply chain planning?

Accepted Answer

Predicting future customer demand to guide production, procurement, and inventory decisions

Answer

Demand forecasting uses historical data, market trends, and statistical models to predict future sales and guide supply chain planning.

Question 4

What is supply chain visibility?

Accepted Answer

The ability to track products, inventory, and orders in real time across the supply chain

Answer

Supply chain visibility provides real-time data on inventory locations, order statuses, and supplier activities to enable proactive decision-making.

Question 5

What is a supply chain disruption?

Accepted Answer

An unexpected event that interrupts the normal flow of goods, information, or finances in a supply chain

Answer

Supply chain disruptions—caused by natural disasters, geopolitical events, supplier failures, or pandemics—interrupt product flow and require contingency responses.

Supply Chain and Logistics Practice Test

Supply Chain and Logistics Practice Test

Supply Chain and Logistics Supply Chain Planning and Strategy 1