Top 5 SCM Q&A Everyone should know!
1. What is the primary goal of supply chain management?
A) Increasing production speed
B) Reducing transportation costs
C) Maximizing customer value and achieving a sustainable competitive advantage
D) Minimizing the number of suppliers
Correct: C - The goal is to create a value chain that is both efficient and effective.
2. The "bullwhip effect" is characterized by:
A) Sudden increase in product demand
B) Small fluctuations in consumer demand leading to larger inventory fluctuations upstream
C) A breakdown in communication between logistics teams
Correct: B - Slight demand shifts cause amplified volatility further up the supply chain.
3. In a 'pull' system, production is based on:
A) Forecasted demand
B) Past sales data
C) Actual customer orders
Correct: C - A 'pull' system, like JIT, produces goods only when ordered by the customer.
4. A key performance indicator (KPI) for supply chain efficiency might be:
A) Employee satisfaction
B) Order fulfillment cycle time
C) The number of company meetings held per month
D) The size of the company's headquarters
Correct Answer: B
Order fulfillment cycle time is a direct measure of how efficiently a supply chain moves a product from order to delivery.
Order fulfillment cycle time is a direct measure of how efficiently a supply chain moves a product from order to delivery.
5. What is the main role of a distribution center (DC)?
A) To produce raw materials
B) To act as a central location for storing and distributing goods to retailers or customers
C) To conduct market research
D) To manage employee payroll
Correct Answer: B
DCs are strategic hubs that ensure products are sorted and shipped to the right locations efficiently.
DCs are strategic hubs that ensure products are sorted and shipped to the right locations efficiently.
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