Supply Chain Management Supply Chain Management MCQ 2

Question 1

Which inventory management approach uses real-time demand signals from downstream partners to reduce the bullwhip effect?

Accepted Answer

Vendor-Managed Inventory

Answer

Vendor-Managed Inventory (VMI) gives suppliers access to real-time downstream demand data, allowing them to replenish stock proactively and reduce demand signal distortion.

Question 2

A company sources 80% of its revenue-critical components from a single overseas supplier. Which supply chain risk category does this primarily represent?

Accepted Answer

Supply risk

Answer

Heavy reliance on a single supplier for critical components is a supply risk, making the company vulnerable to disruptions at that one source.

Question 3

What does the term 'postponement' mean in supply chain strategy?

Accepted Answer

Deferring product differentiation until closer to the point of demand

Answer

Postponement delays final product configuration or customization until actual demand is known, reducing forecast error and excess inventory.

Question 4

In the SCOR (Supply Chain Operations Reference) model, which process element focuses on returning defective or excess products?

Accepted Answer

Return

Answer

The SCOR 'Return' process covers the reverse logistics activities of sending back defective, excess, or maintenance-required products.

Question 5

Which metric measures the percentage of customer orders delivered in full, on time, and without damage or invoice errors?

Accepted Answer

Perfect Order Rate

Answer

Perfect Order Rate captures all dimensions of order quality—completeness, timeliness, condition, and documentation accuracy—in a single KPI.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Supply Chain Management MCQ 2