Supply Chain Management Operations & Supply Chain Management 4

Question 1

Which forecasting approach uses a weighted average of past demand observations where more recent data receives higher weights?

Accepted Answer

Exponential smoothing

Answer

Exponential smoothing applies geometrically declining weights to past observations, giving the most recent data the greatest influence on the forecast.

Question 2

In lean manufacturing, 'muda' refers to:

Accepted Answer

Waste — any activity that consumes resources without adding customer value

Answer

Muda is the Japanese term for waste, encompassing the seven classic lean waste types (overproduction, waiting, transport, over-processing, inventory, motion, defects).

Question 3

A company ships products using a 3PL provider that also manages its warehouse and customs clearance. This bundling of services best describes:

Accepted Answer

Outsourced logistics (3PL)

Answer

A third-party logistics (3PL) provider handles outsourced logistics services — transportation, warehousing, and value-added services — on behalf of a shipper.

Question 4

Which demand pattern is characterized by a consistent upward or downward movement in sales over time?

Accepted Answer

Trend

Answer

A trend is a long-term, systematic upward or downward direction in demand data, distinct from seasonal or random fluctuations.

Question 5

Safety stock is primarily held to protect against:

Accepted Answer

Variability in demand and/or lead time

Answer

Safety stock buffers against uncertainty caused by unpredictable fluctuations in customer demand or supplier lead times to prevent stockouts.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Operations & Supply Chain Management 4