Supply Chain Management Qualification related questions

What is the primary goal of supply chain management (SCM)?
A) Reduce costs
B) Increase profits
C) Optimize the flow of products, information, and finances
D) Enhance customer service
Answer: C) Optimize the flow of products, information, and finances
2. Which of the following best defines a supply chain?
A) A network of suppliers
B) The process of producing goods
C) The flow of materials, information, and finances from supplier to customer
D) Inventory management
Answer: C) The flow of materials, information, and finances from supplier to customer
3. What does the acronym SCM stand for?
A) Supplier Chain Management
B) Supply Chain Management
C) Supply Communication Management
D) Supply Control Management
Answer: B) Supply Chain Management
4. Which component is not typically part of a supply chain?
A) Suppliers
B) Manufacturers
C) Customers
D) Competitors
Answer: D) Competitors
5. What is the primary function of logistics within supply chain management?
A) Marketing products
B) Managing the flow of goods and services
C) Hiring employees
D) Financial accounting
Answer: B) Managing the flow of goods and services
6. What is meant by “inventory turnover”?
A) The rate at which inventory is used and replaced
B) The total value of inventory
C) The number of suppliers
D) The sales revenue of a company
Answer: A) The rate at which inventory is used and replaced
7. Which of the following is an example of a third-party logistics provider (3PL)?
A) A company that manufactures products
B) A company that provides transportation and warehousing services
C) A company that sells products directly to customers
D) A company that designs product packaging
Answer: B) A company that provides transportation and warehousing services
8. What does the term “bullwhip effect” refer to in SCM?
A) Increased efficiency in the supply chain
B) Fluctuations in orders that amplify as they move up the supply chain
C) Reduction in inventory levels
D) Consistent supply chain performance
Answer: B) Fluctuations in orders that amplify as they move up the supply chain
9. What is the role of an “enterprise resource planning” (ERP) system in SCM?
A) Managing customer relationships
B) Integrating and automating various business processes
C) Developing new products
D) Conducting market research
Answer: B) Integrating and automating various business processes
10. Which of the following is a key performance indicator (KPI) in supply chain management?
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– A) Customer satisfaction score
– B) Employee turnover rate
– C) Inventory turnover ratio
– D) Profit margin
– **Answer: C) Inventory turnover ratio**
11. What is the primary purpose of “demand forecasting” in SCM?
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– A) Predict future customer demand
– B) Increase production speed
– C) Reduce supplier costs
– D) Enhance product quality
– **Answer: A) Predict future customer demand**
12. What does the term “lead time” refer to in supply chain management?
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– A) The time it takes to deliver a product to a customer
– B) The time it takes to manufacture a product
– C) The time between the initiation and completion of a production process
– D) The time taken to receive payment from customers
– **Answer: C) The time between the initiation and completion of a production process**
13. Which strategy focuses on producing goods only when they are needed?
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– A) Just-in-case (JIC)
– B) Just-in-time (JIT)
– C) Make-to-stock (MTS)
– D) Assemble-to-order (ATO)
– **Answer: B) Just-in-time (JIT)**
14. What is the purpose of “supplier relationship management” (SRM)?
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– A) Improve relationships and interactions with suppliers
– B) Manage customer complaints
– C) Forecast customer demand
– D) Reduce inventory levels
– **Answer: A) Improve relationships and interactions with suppliers**
15. Which of the following is a benefit of effective supply chain management?
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– A) Increased inventory levels
– B) Reduced operational costs
– C) Decreased customer satisfaction
– D) Increased lead times
– **Answer: B) Reduced operational costs**
16. What is “reverse logistics” in SCM?
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– A) The process of moving products from suppliers to manufacturers
– B) The process of moving products from customers back to manufacturers or suppliers
– C) The management of logistics in reverse order
– D) The flow of information in the supply chain
– **Answer: B) The process of moving products from customers back to manufacturers or suppliers**
17. What is a “supply chain network”?
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– A) A group of competitors in the same industry
– B) A system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer
– C) A series of marketing strategies
– D) A method for financial accounting
– **Answer: B) A system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer**
18. What is the primary objective of “capacity planning” in SCM?
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– A) Determine the production capacity needed to meet changing demands
– B) Reduce inventory levels
– C) Increase marketing efforts
– D) Improve employee skills
– **Answer: A) Determine the production capacity needed to meet changing demands**
19. What is the role of “transportation management” in SCM?
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– A) Oversee the movement of goods from one location to another
– B) Manage financial resources
– C) Develop new products
– D) Forecast customer demand
– **Answer: A) Oversee the movement of goods from one location to another**
20. What is meant by “total cost of ownership” (TCO) in SCM?
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– A) The purchase price of an asset
– B) The total cost of acquiring and operating a product over its entire lifecycle
– C) The cost of goods sold
– D) The cost of manufacturing a product
– **Answer: B) The total cost of acquiring and operating a product over its entire lifecycle**
21. Which of the following is a common challenge in supply chain management?
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– A) Excess inventory
– B) Lack of customer demand
– C) Supplier reliability
– D) High profit margins
– **Answer: C) Supplier reliability**
22. What is “e-procurement” in SCM?
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– A) Electronic purchasing of goods and services
– B) Electronic selling of goods and services
– C) Electronic marketing of products
– D) Electronic production planning
– **Answer: A) Electronic purchasing of goods and services**
23. Which of the following is an advantage of using RFID technology in SCM?
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– A) Increased manual labor
– B) Enhanced real-time tracking of goods
– C) Higher inventory levels
– D) Increased paperwork
– **Answer: B) Enhanced real-time tracking of goods**
24. What is the purpose of a “warehouse management system” (WMS)?
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– A) Manage inventory and storage operations within a warehouse
– B) Develop marketing strategies
– C) Forecast customer demand
– D) Analyze financial performance
– **Answer: A) Manage inventory and storage operations within a warehouse**
25. What does “SCOR” stand for in SCM?
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– A) Supply Chain Operations Reference
– B) Supply Chain Optimization Resource
– C) Supply Chain Organizational Review
– D) Supply Chain Order Response
– **Answer: A) Supply Chain Operations Reference**
26. What is a “value chain”?
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– A) A series of activities that add value to a product or service from its inception to delivery
– B) A network of suppliers and manufacturers
– C) A financial management tool
– D) A marketing strategy
– **Answer: A) A series of activities that add value to a product or service from its inception to delivery**
27. What is the role of “inventory management” in SCM?
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– A) Forecasting customer demand
– B) Managing the stock of goods to meet customer demand while minimizing costs
– C) Developing new products
– D) Conducting market research
– **Answer: B) Managing the stock of goods to meet customer demand while minimizing costs**
28. What is “supply chain visibility”?
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– A) The ability to track and monitor all activities and data throughout the supply chain
– B) The visibility of products on retail shelves
– C) The marketing exposure of a brand
– D) The financial transparency of a company
– **Answer: A) The ability to track and monitor all activities and data throughout the supply chain**
29. What does “S&OP” stand for in SCM?
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– A) Sales and Operations Planning
– B) Supply and Optimization Planning
– C) Sales and Order Processing
– D) Supplier and Operations Partnership
– **Answer: A) Sales and Operations Planning**
30. What is the main benefit of using a “global supply chain”?
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– A) Reduced transportation costs
– B) Access to a broader market and diverse resources
– C) Increased inventory levels
– D) Simplified logistics
– **Answer: B) Access to a broader market and diverse resources**
31. Which of the following is an essential component of supply chain risk management?
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– A) Identifying potential risks
– B) Increasing inventory levels
– C) Reducing production speed
– D) Enhancing product features
– **Answer: A) Identifying potential risks**
32. What is the purpose of “demand planning” in SCM?
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– A) Anticipate future customer demand to optimize supply chain activities
– B) Increase production capacity
– C) Reduce supplier costs
– D) Enhance marketing efforts
– **Answer: A) Anticipate future customer demand to optimize supply chain activities**
33. What does the term “order fulfillment” refer to in SCM?
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– A) The process of receiving, processing, and delivering orders to customers
– B) The manufacturing of products
– C) The development of marketing strategies
– D) The management of supplier relationships
– **Answer: A) The process of receiving, processing, and delivering orders to customers**
34. Which of the following is a benefit of using an “automated warehouse”?
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– A) Increased labor costs
– B) Reduced accuracy in order picking
– C) Improved efficiency and reduced errors
– D) Higher inventory levels
– **Answer: C) Improved efficiency and reduced errors**
35. What does “cross-docking” involve in SCM?
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– A) Receiving products and immediately shipping them out without long-term storage
– B) Storing products in a central warehouse
– C) Manufacturing products on demand
– D) Transporting goods using multiple carriers
– **Answer: A) Receiving products and immediately shipping them out without long-term storage**
36. What is “collaborative planning, forecasting, and replenishment” (CPFR)?
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– A) A business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand
– B) A method for financial planning
– C) A marketing strategy
– D) A production planning technique
– **Answer: A) A business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand**
37. What does “outsourcing” refer to in SCM?
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– A) Delegating a business function to an external supplier
– B) Hiring new employees
– C) Reducing production costs
– D) Developing new products
– **Answer: A) Delegating a business function to an external supplier**
38. What is the primary goal of “lean supply chain management”?
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– A) Maximize product variety
– B) Reduce waste and improve efficiency
– C) Increase inventory levels
– D) Enhance marketing efforts
– **Answer: B) Reduce waste and improve efficiency**
39. What does “ABC analysis” involve in inventory management?
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– A) Categorizing inventory into three classes based on importance and value
– B) Analyzing financial performance
– C) Conducting market research
– D) Managing supplier relationships
– **Answer: A) Categorizing inventory into three classes based on importance and value**
40. Which of the following is a benefit of “supply chain integration”?
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– A) Improved coordination and collaboration across the supply chain
– B) Increased production costs
– C) Reduced product quality
– D) Higher inventory levels
– **Answer: A) Improved coordination and collaboration across the supply chain**
41. What is the purpose of “route optimization” in transportation management?
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– A) Determine the most efficient routes for delivering goods
– B) Increase the number of deliveries
– C) Reduce transportation costs
– D) Enhance product quality
– **Answer: A) Determine the most efficient routes for delivering goods**
42. What does “vendor-managed inventory” (VMI) mean in SCM?
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– A) The supplier is responsible for managing and replenishing inventory at the customer’s location
– B) The customer manages the supplier’s inventory
– C) The inventory is managed by a third-party logistics provider
– D) The inventory is stored at the supplier’s warehouse
– **Answer: A) The supplier is responsible for managing and replenishing inventory at the customer’s location**
43. What is the purpose of “supply chain mapping”?
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– A) Visualize and
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51. What is “supplier evaluation” in SCM?
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– A) The process of assessing and approving potential suppliers based on various criteria
– B) The act of purchasing goods from suppliers
– C) The development of new suppliers
– D) The process of forecasting customer demand
– **Answer: A) The process of assessing and approving potential suppliers based on various criteria**
52. What does the term “order cycle time” refer to in SCM?
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– A) The time taken from order placement to order delivery
– B) The duration of the manufacturing process
– C) The time taken to process an invoice
– D) The time taken to replenish inventory
– **Answer: A) The time taken from order placement to order delivery**
53. What is the main purpose of a “distribution center”?
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– A) Store products until they are needed for production
– B) Distribute products to retailers or customers
– C) Manufacture products
– D) Design new products
– **Answer: B) Distribute products to retailers or customers**
54. What does the term “freight consolidation” mean in SCM?
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– A) Combining multiple shipments to optimize transportation efficiency and reduce costs
– B) Separating shipments based on destination
– C) Increasing the speed of delivery
– D) Decreasing the size of shipments
– **Answer: A) Combining multiple shipments to optimize transportation efficiency and reduce costs**
55. What is a “supply chain disruption”?
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– A) An unexpected event that interrupts the normal flow of goods and materials in a supply chain
– B) A planned halt in production
– C) A marketing campaign
– D) A financial review
– **Answer: A) An unexpected event that interrupts the normal flow of goods and materials in a supply chain**
56. What is “supply chain sustainability”?
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– A) Ensuring long-term viability of supply chain processes with minimal environmental impact
– B) Increasing production speeds
– C) Reducing supplier costs
– D) Enhancing marketing strategies
– **Answer: A) Ensuring long-term viability of supply chain processes with minimal environmental impact**
57. Which of the following is a characteristic of “agile supply chains”?
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– A) High levels of inventory
– B) Flexibility and responsiveness to market changes
– C) Long lead times
– D) Inflexibility to demand changes
– **Answer: B) Flexibility and responsiveness to market changes**
58. What is the purpose of “demand signal repository” in SCM?
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– A) Collect and store demand data for analysis and forecasting
– B) Manage supplier relationships
– C) Reduce transportation costs
– D) Increase inventory levels
– **Answer: A) Collect and store demand data for analysis and forecasting**
59. What does “last-mile delivery” refer to in SCM?
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– A) The final step in the delivery process where the product reaches the customer
– B) The initial step of shipping products from the manufacturer
– C) The transportation of raw materials
– D) The consolidation of freight
– **Answer: A) The final step in the delivery process where the product reaches the customer**
60. What is “supply chain collaboration”?
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– A) Working together with supply chain partners to achieve common goals
– B) Competing with other supply chains
– C) Outsourcing supply chain activities
– D) Reducing supply chain activities
– **Answer: A) Working together with supply chain partners to achieve common goals**
61. What is the main goal of “procurement” in SCM?
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– A) Acquiring goods and services from external sources
– B) Marketing products
– C) Increasing production speed
– D) Enhancing employee training
– **Answer: A) Acquiring goods and services from external sources**
62. Which of the following describes a “pull strategy” in SCM?
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– A) Production and distribution are demand-driven
– B) Production is based on forecasted demand
– C) Inventory levels are kept high to meet unexpected demand
– D) Products are pushed to market without specific demand
– **Answer: A) Production and distribution are demand-driven**
63. What is “supplier diversification”?
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– A) Using multiple suppliers to reduce risk
– B) Consolidating suppliers to reduce costs
– C) Developing new products
– D) Increasing production speeds
– **Answer: A) Using multiple suppliers to reduce risk**
64. What is the purpose of a “logistics service provider” (LSP)?
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– A) Manage transportation and distribution of goods
– B) Manufacture products
– C) Develop marketing strategies
– D) Conduct financial audits
– **Answer: A) Manage transportation and distribution of goods**
65. What is “order batching” in SCM?
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– A) Accumulating orders before processing them to reduce costs
– B) Distributing orders immediately upon receipt
– C) Separating orders based on destination
– D) Increasing the number of orders placed
– **Answer: A) Accumulating orders before processing them to reduce costs**
66. What is “demand variability” in SCM?
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– A) Fluctuations in customer demand over time
– B) Consistent demand levels
– C) Predictable demand patterns
– D) Stable inventory levels
– **Answer: A) Fluctuations in customer demand over time**
67. What is the primary focus of “customer relationship management” (CRM) in SCM?
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– A) Managing interactions with current and potential customers
– B) Developing new suppliers
– C) Reducing production costs
– D) Enhancing employee training
– **Answer: A) Managing interactions with current and potential customers**
68. What does “lean manufacturing” aim to achieve in SCM?
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– A) Reduce waste and improve efficiency in production processes
– B) Increase product variety
– C) Increase inventory levels
– D) Enhance marketing efforts
– **Answer: A) Reduce waste and improve efficiency in production processes**
69. What is the role of “customs brokerage” in international SCM?
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– A) Facilitate the import and export of goods through customs
– B) Manufacture products
– C) Market products internationally
– D) Develop new suppliers
– **Answer: A) Facilitate the import and export of goods through customs**
70. What is the main benefit of “supplier consolidation”?
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– A) Reduce the number of suppliers to streamline procurement and reduce costs
– B) Increase supplier diversity
– C) Enhance product quality
– D) Increase production speed
– **Answer: A) Reduce the number of suppliers to streamline procurement and reduce costs**
71. What does “supplier capacity” refer to in SCM?
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– A) The maximum amount of goods a supplier can produce or deliver
– B) The financial strength of a supplier
– C) The quality of goods a supplier produces
– D) The location of the supplier
– **Answer: A) The maximum amount of goods a supplier can produce or deliver**
72. What is “demand shaping” in SCM?
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– A) Influencing customer demand through marketing and promotional activities
– B) Predicting customer demand
– C) Managing supplier relationships
– D) Reducing inventory levels
– **Answer: A) Influencing customer demand through marketing and promotional activities**
73. What is the purpose of “transportation scheduling”?
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– A) Plan and optimize the timing of transportation activities to meet delivery requirements
– B) Increase transportation costs
– C) Enhance marketing strategies
– D) Reduce production speeds
– **Answer: A) Plan and optimize the timing of transportation activities to meet delivery requirements**
74. What does the term “on-time delivery” refer to in SCM?
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– A) Delivering products to customers by the promised date
– B) Delivering products ahead of schedule
– C) Delaying delivery to meet demand
– D) Reducing lead times
– **Answer: A) Delivering products to customers by the promised date**
75. What is “dual sourcing” in SCM?
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– A) Using two suppliers for the same product to mitigate risk
– B) Using a single supplier for all products
– C) Developing new products
– D) Increasing production speeds
– **Answer: A) Using two suppliers for the same product to mitigate risk**
76. What is the main goal of “inventory optimization” in SCM?
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– A) Minimize costs while meeting customer demand
– B) Increase inventory levels
– C) Enhance marketing efforts
– D) Reduce production speeds
– **Answer: A) Minimize costs while meeting customer demand**
77. What does “4PL” stand for in SCM?
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– A) Fourth-Party Logistics
– B) Four-Phase Logistics
– C) For-Profit Logistics
– D) Forecasting Planning Logistics
– **Answer: A) Fourth-Party Logistics**