Supply Chain Management Technology 5 — Questions and Answers
Question 1: A manufacturer integrates its ERP with suppliers' systems so purchase orders are triggered automatically when inventory falls below reorder points. This describes which concept?
- Vendor-managed inventory (VMI)
- Kanban pull system
- Automated replenishment via ERP integration (Correct answer)
- Safety stock drawdown policy
Correct answer: Automated replenishment via ERP integration
Automated replenishment ties real-time inventory levels in the ERP to order triggers, removing manual intervention from routine restocking.
Question 2: Which metric measures how accurately a forecasting or AI system predicted actual demand, expressed as a percentage of error relative to actual sales?
- Fill rate
- Mean Absolute Percentage Error (MAPE) (Correct answer)
- On-time delivery rate
- Inventory turnover ratio
Correct answer: Mean Absolute Percentage Error (MAPE)
MAPE calculates the average absolute percentage difference between forecasted and actual demand, making it a standard forecast accuracy KPI.
Question 3: What is the role of a 'smart contract' in a blockchain-based supply chain payment system?
- A legally binding paper document stored on a server
- Self-executing code that automatically releases payment when predefined delivery conditions are met (Correct answer)
- An AI chatbot that negotiates contract terms
- A digital signature applied to purchase orders
Correct answer: Self-executing code that automatically releases payment when predefined delivery conditions are met
Smart contracts execute automatically when trigger conditions — like confirmed delivery — are satisfied, eliminating manual payment approval steps.
Question 4: What supply chain risk does geofencing technology help manage in fleet operations?
- Demand variability at retail stores
- Unauthorized route deviations or cargo diversions by drivers (Correct answer)
- Supplier quality defects
- Inventory shrinkage in the warehouse
Correct answer: Unauthorized route deviations or cargo diversions by drivers
Geofencing triggers alerts when a vehicle leaves a predefined geographic boundary, enabling rapid response to unauthorized route changes or theft.
Question 5: Which approach allows a company to rapidly scale its supply chain technology infrastructure up or down based on seasonal demand without large capital expenditure?
- On-premises data centers with reserved capacity
- Cloud-based SaaS supply chain platforms with elastic scaling (Correct answer)
- Purchasing dedicated servers per business unit
- Outsourcing IT to a single fixed-cost contract
Correct answer: Cloud-based SaaS supply chain platforms with elastic scaling
Cloud SaaS platforms scale compute resources elastically, so companies pay only for what they use and avoid over-provisioning for peak seasons.
Question 6: In warehouse automation, what is the difference between a conveyor sorter using 'put-to-light' versus 'pick-to-light' systems?
- Pick-to-light guides workers to retrieve items; put-to-light guides workers where to place items during sorting or packing (Correct answer)
- Put-to-light is used only in freezer warehouses; pick-to-light is for ambient temperature
- They are identical technologies with different brand names
- Pick-to-light uses lasers; put-to-light uses LED strips only
Correct answer: Pick-to-light guides workers to retrieve items; put-to-light guides workers where to place items during sorting or packing
Pick-to-light uses illuminated indicators to direct workers to the correct pick location, while put-to-light indicates where to deposit items during order consolidation.
Question 7: What is the primary security concern when supply chain companies adopt IoT sensors connected to the internet across multiple facilities?
- Sensors consume too much bandwidth for normal operations
- Each connected device is a potential entry point for cyberattacks if not properly secured (Correct answer)
- IoT sensors are incompatible with legacy ERP systems
- Wireless signals interfere with barcode scanners
Correct answer: Each connected device is a potential entry point for cyberattacks if not properly secured
Every unsecured IoT device expands the attack surface, and compromised sensors can be used to infiltrate corporate networks or tamper with operational data.
Supply Chain Management Technology 5
A manufacturer integrates its ERP with suppliers' systems so purchase orders are triggered automatically when inventory falls below reorder points.
This describes which concept?