Supply Chain Management Operations & Supply Chain Management 2

Question 1

Which inventory replenishment strategy triggers an order only when stock falls to a predetermined reorder point?

Accepted Answer

Continuous review system

Answer

A continuous review system monitors inventory levels constantly and places an order whenever stock drops to the reorder point.

Question 2

In supply chain risk management, 'supply disruption risk' most directly refers to:

Accepted Answer

A supplier's inability to deliver materials on time or at all

Answer

Supply disruption risk arises when a supplier fails to provide required inputs due to events like natural disasters, strikes, or financial failure.

Question 3

A company reduces its supplier base from 50 vendors to 10 strategic partners. This is an example of:

Accepted Answer

Supplier rationalization

Answer

Supplier rationalization is the deliberate reduction of the supplier base to foster deeper relationships and reduce management complexity.

Question 4

Which performance metric measures the percentage of customer orders fulfilled completely from available stock without backorders?

Accepted Answer

Fill rate

Answer

Fill rate measures the proportion of customer demand satisfied immediately from on-hand inventory, indicating service level effectiveness.

Question 5

The concept of 'postponement' in supply chain management involves:

Accepted Answer

Deferring product customization until closer to the point of sale

Answer

Postponement delays differentiation activities to the latest possible point, reducing finished goods inventory and improving responsiveness to actual demand.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Operations & Supply Chain Management 2