Supply Chain Management – Mock Exam

Welcome to your Supply Chain Management - Mock Exam

Which of the following statements is WRONG regarding ‘force majeure’?

Force majeure is a legal concept.

Force majeure is widely used in war or battlefield.

Force majeure is used in contracts to justify why someone is unable to meet their obligations.

Force majeure means there was a problem that parties to the contract could not have predicted, prepared for, or prevented.

Which of the following is NOT a principle of Supply Chain Management?

Customer focus

Systems thinking

Invisibility

Risk management

Which of the following statements is INCORRECT?

Supply chain management depends on technology.

The technology used in supply chain management is always complicated which can be updated daily.

Each business, and each function within each business has different technology needs.

Implementing the right technology at the right time is an important step in the New Supply Chain Agenda.

Which of the following is NOT a proper way that a logistics department might try to achieve its goals?

Consolidating many small shipments into one large shipment to increase velocity

Switching from one mode of transportation to another, either to lower costs or increase velocity

Increasing or decreasing the number of distribution centres to increase velocity or lower costs

Outsourcing logistics services to a third-party logistics (3PL) company

What can an organisation do if it has to manage urgent orders and production?

Create a small team of expeditors with members from the operations department

Create a small team of expeditors with members from the production department.

Create a small team of expeditors with members from both the operations and purchasing department.

Create a small team of expeditors with members from the administration department.

Which of the following is NOT an effective way that can reduce and even eliminate the ‘bullwhip effect’?

Make batches smaller

Improve forecasting

Take initiatives to change customer behavior

Improve communications

What is a ‘reinforcing loop’ in a supply chain systems model?

A series of events repeating over and over and getting stronger each time.

A single event getting stronger over time.

A single event getting weaker over time.

A series of events repeating over and over and getting weaker each time.

Which of the following statements is INCORRECT?

Collecting measurements costs money and takes time, so it is important to decide which metrics an organization really needs.

The KPIs in one business or facility are not very different from the KPIs in another business or facility.

Companies can benchmark their supply chain KPIs by using the SCOR Model.

System dynamics includes a set of tools for predicting how supply chains behave over time.

Setting production schedule and managing supplier contracts are two important tasks of supply chain management. Which of the following department(s) is/are responsible for these tasks?

Logistics and operations respectively

Only operations

Operations and purchasing respectively

Purchasing and logistics respectively

Which of the following is an example of quantitative metric?

Degree of satisfaction

Frequency

Likelihood of doing something

Level of agreement

Some great techniques are available to help with identifying what customers value the most when purchasing a product. Which of the following is NOT one of them?

Pick and drop testing (PDT)

Quality Function Design (QFD)

House of Quality (HOQ)

A-B test

Which of the following is the appropriate solution for conflicts and trade-offs between customer and supplier?

Sales and operations planning (S&OP)

Collaborative planning, forecasting and replenishment (CPFR)

Cross-functional teams

Forecasting

Which of the following is the appropriate solution for conflicts and trade-offs between Inventory and Customer service?

Sales and operations planning (S&OP)

Collaborative planning, forecasting and replenishment (CPFR)

Cross-functional teams

Forecasting

Which of the following transportation methods is the least expensive?

Sea container

Pipeline

Full truckload

Less than truckload

Which of the following is the appropriate solution for the trade-off between engineering department and purchasing department?

Total cost analysis

Collaborative planning, forecasting and replenishment (CPFR)

Design-build strategy

Lean manufacturing

Inventory that protects the organisation from a stock-out is called _______________________.

safety stock

extra stock

elastic stock

solid stock

Quality Function Design (QFD) is a technique which can identify what customers value the most when purchasing a product. What is another name of QFD?

Pick and drop testing (PDT)

Face to face test

House of Quality (HOQ)

A-B test

Which of the following supply chain priorities are appropriate for the product type ‘technology’?

High quality, uniqueness

Fast throughput, low inventory, wide variety

The balance between transportation/inventory cost and customer needs

Speed, flexibility, security

The goal for any supply chain is to deliver maximum value at the lowest cost. One way to achieve this goal is to change the nodes and links. Making changes in the nodes and links is called ______________.

process optimization

network optimization

transport optimization

connectivity optimization

Supply chains are made up of people, processes, and technologies. All three components need to improve over time for a supply chain to remain competitive. What is the focus of ‘Six Sigma’-an approach to process improvement?

Reduce waste

Reduce variability

Relieve bottlenecks

Reduce steps in the production process

Supply chains are made up of people, processes, and technologies. All three components need to improve over time for a supply chain to remain competitive. What is the focus of ‘Theory of Constraints’-an approach to process improvement?

Reduce waste

Reduce variability

Relieve bottlenecks

Reduce steps in the production process

In the Lean approach, there are eight kinds of waste, which companies should be constantly driving out of their processes and their supply chains. Which of the following is NOT one of them?

Space

Transportation

Inventory

Motion

Six Sigma is a process improvement methodology which has five steps. Which of the following steps of Six Sigma has an element called ‘Voice of Customer’ (VOC)?

Improve

Define

Analyse

Control

What is another name of the ‘Toyota Production System (TPS)’?

Lean Manufacturing System

Six Sigma

Theory of Constraints

Kaizen

In a supply chain network diagram, relationships among tasks are called______________________.

hook

dependencies

predecessor

Successor

Which of the following statements is INCORRECT?

It is usually best to use qualitative metrics to understand how the supply chain is performing and where there are opportunities for improvement.

There's no such thing as a ‘perfect supply chain’ because supply chain performance depends on so many factors.

A good supply chain will always give customers what they want for a price that they're willing to pay while leaving a sufficient profit margin for the company.

In a fast-food restaurant, order-to-delivery-cycle and perfect order proficiency are quantitative metrics; they are based on objective data.

Which of the following statements is INCORRECT?

If a company has too much capacity, it is tying up capital without generating a return.

Capacity is the measure of how quickly a supply chain can provide a product or service to a customer.

Flexibility is the measurement of how well a supply chain scales up or ramps down in response to change.

Supply chain management needs to provide the capacity, responsiveness, and flexibility that customers need at the lowest possible cost.

Which of the following is NOT a process under the SCOR model?

Plan

Source

Accept

Make

If an owner needs to decide wherefrom he will buy ingredients and supplies. He needs to negotiate with the suppliers in order to get the best prices, along with the best quality and service. Under the SCOR model this process is called ‘_________________’.

Plan

Source

Accept

Make

When the supply chain plan is based on a/an approach, initial forecasting guides how much customers are going to buy. This forecast drives all the manufacturing and distribution planning. The work is done and the products are ready to go before receiving an order from a customer.

stock-to-supply

engineer-to-order

make-to-order

make-to-stock

When the supply chain plan uses_____________________________approach, a customised product is made for each order. The product design is not finished until customer gives the specifications.

stock-to-supply

engineer-to-order

make-to-order

make-to-stock

Understanding customers' needs help make better decisions about the supply chain. There are three common ways to analyse customers and their needs. Which of the following is NOT one of them?

Market segmentation

Persona development

Key customer analysis

Key Performance Indicator

A CRM system can provide useful data for studying customers by tracking purchases and other interactions with customers. What does CRM stand for?

Customer Relationship Management

Credit Risk Management

Core Risk Management

Customer Risk Management

“Bob is a single man who works 60 hours a week and has an active social life outside work. For him, washing clothes is a chore but a necessary one. He buys his laundry soap in a drugstore near his urban apartment”. This situation is an example of________________________________

market segmentation

persona development

key customer analysis

key performance indicator

A/An______________is often used for repairs. The buyer agrees to pay the supplier set rates for the parts and labour that they use on a project.

time and materials contract

firm-fixed-priced contract

cost-plus contract

indefinite delivery contract

A/An______________sets out the amount of products or services that will be purchased and how much they will cost.

time and materials contract

firm-fixed-priced contract

cost-plus contract

indefinite delivery contract

Which of the following cash conversion cycles is common in all kinds of businesses, but expensive?

Zero cash conversion cycle

Positive cash conversion cycle

Negative cash conversion cycle

Repetitive cash conversion cycle

____________________________was one of the secrets to success in the early days of Dell Computer.

Zero cash conversion cycle

Positive cash conversion cycle

Negative cash conversion cycle

Repetitive cash conversion cycle

Making insurance for a product or service is an example of __________________________

accepting the risk

avoiding the risk

transferring the risk

mitigating the risk

Companies compile their purchasing data to evaluate what they buy, who they buy it from, and what they could change to drive additional value to their supply chain. This process is called __________________.

strategic sourcing

direct sourcing

relationship sourcing

circular sourcing

Which of the following is NOT a reason to end the relationship with the supplier?

The supplier turned out to be a bad partner

The changing markets and technologies

Thinking that supplier may dominate the business relationship in future

Unavoidable circumstances

Some suppliers sell products and services and then wait to get paid later. This is called ________________________________

net payment terms

payment in advance

payment on delivery

payment at sight

In which of the following cases a bank loan may be required to run the business?

Repetitive cash conversion cycles

Zero cash conversion cycles

Negative cash conversion cycles

Positive cash conversion cycles

What does ‘Master Demand Schedule (MDS)’ represent while planning for a production schedule?

High-level demand goal

Low-level demand goal

Average-level demand goal

Order based demand goal

What is ‘design capacity’?

The capacity to produce output in a Lean manufacturing system.

The actual output of a manufacturing process taking all the production constraints into account.

The maximum theoretical limit that a machine (or person) can produce.

The production limit considering all the production constraints into account which is lower than the theoretical limit.

What is ‘operating capacity’?

The capacity to produce output in a Lean manufacturing system.

The actual output of a manufacturing process taking all the production constraints into account.

The maximum theoretical limit that a machine (or person) can possibly produce.

The production limit considering all the production constraints into account which is lower than the theoretical limit.

Which of the following statements is INCORRECT regarding ‘discrete manufacturing process’?

Usually, the soft ice cream is made with a discrete manufacturing process.

Some products are manufactured as separate items or in batches which is called a discrete manufacturing process.

Many principles of discrete manufacturing also apply to the supply chains of service companies.

Discrete manufacturing usually is broken into steps that are repeated for each product.

Which of the following statements is FALSE regarding ‘Discrete manufacturing process’?

There are two different ways to execute the discrete manufacturing process: by assembly line or by cellular manufacturing.

With an assembly line, the same production steps are repeated at each station while the products keep moving down the line from one station to the next.

The time required for each step in an assembly line process is called ‘takt time’.

The cellular manufacturing process is used for manufacturing a mass production product like a cellular phone.

A ‘make-to-stock’ strategy has some shortcomings. Which of the following is NOT one of them?

If products are not available for the customers to buy, then customers may buy those products from a competitor supplier.

When a product is made before receiving an order, customers need to take the product the way it is; customisation is not possible for them.

Suppliers/manufacturers need to forecast how much the customers will buy and when they'll buy it.

There are chances that inventory can be stolen or damaged, or it can become obsolete and unusable.

Which of the following products is manufactured in a make-to-stock environment?

Gasoline

Asphalt

Hamburger

Specialty paints

Which of the following statements is INCORRECT regarding the transportation of goods?

Each combination of an origin (O) and a destination (D) is a called an O-D pair.

In generally LCL (Less than container load) tends to be less expensive than FCL (Full container load).

Moving a shipment from one mode to another is called transloading.

The time that it takes cargo to get from its origin to its destination is the transit time.

Which of the following statements is INCORRECT?

For liquids and gases, pipelines are often the cheapest, safest, and most reliable form of transportation.

Roll-on, roll-off vessels, called ROROs, are used to transport cars and other large items that need to be driven or dragged on and off the ship.

Many factories and distribution centers that ships a lot of cargo on trains have their own set of tracks installed, called ‘rail spurs’.

The unit of measure for container ships is 40-foot equivalent units (FEUs).

Which of the following statements is INCORRECT regarding transportation by a truck?

Two trucking modes are common in the United States: full truckload (FTL) and less than truckload (LTL).

With LTL the cargo is combined with other shippers' cargo in the same trailer.

Even though the trucks and trailers look virtually identical, the process and the pricing for FTL and LTL are different.

LTL shipments travel directly from the origin to the destination, without stopping in between; they generally are the fastest and most reliable way to ship a load.

The types of trailers that are most common in the United States are dry vans, flatbeds, and refrigerated trailers. Which of the following trailers is suitable for carrying long pipes?

Dry Vans

Flatbeds

Refrigerated trailers

Six-wheelers truck

Air cargo is often loaded into special containers called ‘__________________’ that are designed to protect both the cargo and the airplane.

igloos

cube

air-box

tail

Which of the following statements is INCORRECT regarding Incoterms?

Each Incoterm is a three-letter code that represents a particular shipping arrangement

Incoterms are used around the world and are periodically updated by the International Freight Forwarding Association.

The DDP (Delivered Duty Paid) Incoterm means that everything - including shipping costs and all duties - will be paid by the shipper.

The DAP (Delivered at Place) Incoterm means that shipping will be paid by the seller, but duties will be paid by the recipient.

Which of the following is NOT a likely reason for the return of a product?

Change of mind after seeing/purchasing product

Return of Gift item

Return of excess items

Lack of uniqueness in the product

Which of the following statements is INCORRECT?

Many businesses insist on giving their customers permission to return a product by issuing a return material authorisation (RMA).

A store that has a liberal refund policy makes customers doubtful about the product quality and disloyal to a brand.

Retail returns may come from a customer who received an unwanted gift; perhaps they didn't like the colour or it was the wrong size.

Product returns increase dramatically around holiday shopping periods.

Which of the following statements is INCORRECT?

In a closed-loop supply chain, all the components are recycled when the product reaches the end of its usable life.

A great example of a closed-loop supply chain involves batteries for electric cars.

Fraudulent returns or returns of fake products always come from criminals in a preplanned way.

Counterfeit products have a social cost as well because the profits often go to support organized crime.

Which of the following statements is INCORRECT?

In remanufacturing, a part is designed in such a way that it can be rebuilt and reused over and over.

In managing a closed-loop supply chain, inspection and sorting of incoming components are much easier.

A used part that's being returned for remanufacturing is called a core.

Remanufacturing is a common strategy for the parts used in cars, aeroplanes, and heavy equipment.

Which of the following statements is INCORRECT regarding remanufacturing?

In remanufacturing, a part is designed in such a way that it can be rebuilt and reused over and over.

A used part that's being returned for remanufacturing is called a core.

Remanufacturing is a common strategy for the parts used in cars, aeroplanes, and heavy equipment.

Only the owner of the organisation benefits from remanufacturing as it reduces production cost.

Which of the following statements is INCORRECT regarding supply chain direction?

Supply chains don't always flow in one direction, i.e. from the supplier to the customer.

There are many supply chains that operate from the supplier to the customer and vice versa.

Supply chains don't always flow in one direction, i.e. from the customer to the supplier.

Reverse supply chains always get as much attention as manufacturing and retail supply chains.

A great example of a closed-loop supply chain involves ___________________ .

petroleum oil used in vehicles

batteries for electric cars

plastic bags used for shopping

Computers used for record-keeping

Which of the following is NOT a proper area where remanufacturing is followed?

Very small products

Cars

Aero planes

Heavy equipment

Which of the following statements is INCORRECT?

Cars and cell phones are two common examples of Trade-ins.

Trade-in credits reduce the purchase price of the product, so they can increase sales of the organisation.

Trade-in programme is suitable for products that have shorter lives.

In a trade-in programme, a customer gets a shiny new product and doesn't have to worry about disposing of the old one.

Which of the following statements is INCORRECT regarding assets?

Supply chains tend to be asset-intensive, meaning there is a lot of money tied up in tools and equipment.

The efficiency of supply chain assets is measured by capacity utilisation.

Movable assets tend to get less attention than fixed assets because they are usually less expensive.

One common goal of supply chain managers is to increase asset efficiency, which can be achieved by increasing the number of assets and by using those assets less.

Which of the following statements is INCORRECT?

In order to manage the efficiency of fixed assets in supply chains, radio- frequency identification (RFID) tags and global positioning system (GPS) are used worldwide.

Assets fall into two main categories that are based on whether they can be easily moved.

Permanent assets are also called fixtures because they are attached to a building and difficult to move.

Most manufacturing machinery, as well as material handling equipment such as racks and conveyors, are permanent assets.

Most of the human resources problems that supply chain managers need to think about can be broken down into three processes. Which of the following is NOT one of them?

Recruit

Develop

Conflict Management

Retain

Which of the following statements is INCORRECT?

Counterfeit product is a recent phenomenon in supply chains.

Counterfeit products deprive legitimate companies of revenue

Counterfeit products cheat governments out of taxes.

Counterfeit products endanger consumers in some cases.

The United States and the European Union have laws regulating which suppliers can sell tungsten, tantalum, tin, or gold. These are often called_________________in the context of supply chain.

conflict minerals

necessary minerals

solid minerals

revenue minerals

The DIRECT project leadership model is a useful way to remember the six things that leaders need to help cross-functional teams focus on. Which of the following is NOT one of them?

Investigate the options

Change the systems and processes

Transition the people

Repeat the course of action

Which of the following is NOT a step of ‘CMM-the capability maturity model’?

Immature (ad-hoc processes, informal spreadsheets)

Developing (some formal processes, structured spreadsheets)

Standardized (documented processes, best-in-class software)

Mature (no further improvement is required, multiple software)

In which of the following cases installation of a supply chain software is generally NOT required?

When the software is purchased from a vendor.

When the software is made and customised by a programmer

When the user is subscribed to a cloud-based solution (rent).

When the software is downloaded without any cost.

Business Intelligence (BI) software needs to do three things very well. Which of the following is NOT one of them?

generate new data

connect with data

combine and analyze data

provide insights

Supply chain modelling can be based on some mathematical approaches. One of the approaches is ‘___________________’ in which we model probabilities. This model might estimate demand within a range. For example, between 400 and 600 units.

stochastic

deterministic

linear

zigzag

An approach that tracks the evolution of a process or the software that supports the process is the capability maturity model (CMM). Which of the following is the ‘Level 2’ of CMM?

Mature

Standardised

Developing

Immature

An approach that tracks the evolution of a process or the software that supports the process is the capability maturity model (CMM). Which of the following is the ‘Level 3’ of CMM?

Mature

Standardised

Developing

Immature

Which of the following is NOT a type of vendor in Gartner’s Magic Quadrant?

Suppliers

Challengers

Niche Players

Leaders

Which of the following statements is INCORRECT regarding ‘computer-aided design(CAD)’?

At present computers have become essential to the process of designing products.

A designer sends a CAD file directly to a computer-aided manufacturing (CAM) system, which decides how to manufacture or assemble the product from the CAD file.

When CAD/CAM processes are automated and integrated with one another, they are called virtual design.

Printouts and prototypes are still necessary before implementing the computer- aided design(CAD).

Which of the following is an example of ‘additive manufacturing’?

Cellular manufacturing

Automated manufacturing

Computer-aided design

3D printing

Which of the following statements is INCORRECT regarding ‘3D printing’?

3D printing is a broad term that covers many techniques, most of which use one of three types of material (feedstock) to make products: solid materials (usually in spools), powders, and liquids.

By far the most common 3D-printing technology uses spools of plastic as feedstock.

Waste and energy consumption is higher in 3D printing.

3D printers deposit small amounts of molten material in layers, gradually building a finished part through a process called fused deposition modelling (FDM).

___________is a type of computer programme that uses feedback loops to recognise patterns and learn from its own experience.

Artificial neural network (ANN)

Human-machine interface

Interlock

Programmable logic controller

All of the following are valid reasons for a supply chain manager to be aware of emerging technologies EXCEPT:

New technologies being developed could disrupt a product.

New technologies being developed could disrupt a business process.

Having knowledge on the latest technologies is a recent trend or fashion.

New technologies being developed could be a competitive advantage for the business.

___________________software could show which replenishments have been placed, which customer orders are being processed, and whether there is a risk of a stock-out.

Planning

Execution

Surveillance

Visibility

Which of the following statements is INCORRECT regarding blockchains?

A blockchain is a ledger that is distributed to many computers, called nodes.

The blockchain is a database made up of blocks of data that are connected in a chain.

To make a change in the database of the blockchain, such as adding information, one needs to add a new block of data to the chain.

After a block is added to the chain, it can be changed and modified later if required.

Dell Computer used________________to gain a competitive advantage in the early days of the PC industry.

retailing service

one-size-fits-all

mass customization

one stop solution

Which of the following is a disadvantage of cloud-based solutions?

Instant access to software upgrades

All users must have access to the Internet

Reductions in infrastructure and staff

Access to applications on any kind of device anywhere in the world

A computer program that is designed with Artificial Intelligence to perform a certain task is called_____________________. For example: Apple's Siri voice recognition system.

a console

an interlock

a code

an intelligent agent

Which of the following is NOT possible to achieve through implementing ‘postponement or delayed differentiation’?

Delayed customisation

Flexibility to change the product

Demand shaping

Sell the product to a different customer

How is the cash-to-cash cycle time calculated?

payable days-inventory days + receivable days

receivable days + inventory days + payable days

receivable days + inventory days - payable days

receivable days - inventory days + payable days

Sometimes, the best way to manage the inventory is to allow vendors to check the inventory levels, place replenishment orders, and keep the organisation from running out of the products. This way vendors can save time and money to the organisation. This is called ______________________.

third party managed inventory

self managed inventory

vendor-managed inventory

consignment inventory

Two dates are important. The 1st one is when an organisation spends money to buy components. The 2nd one is when the organisation collects payment from a customer for the sale of products. The time between these two dates is called________________________.

the date to date cycle

the cash-to-cash cycle

the credit to credit cycle

the supplier to customer cycle

You require customers to pay you when you take their orders, but your suppliers give you 15 days to pay them for the products that you buy. You don't maintain any inventory at all, because you wait to buy materials until you receive an order from your customer. So, your cash-to-cash cycle time is______________day(s)

zero

+7.5

-15

+15

Which of the following statements is INCORRECT regarding ‘bullwhip effect’?

The bullwhip effect is a recent phenomenon and it has been discovered just 2-3 years ago

The business roller coaster known as the bullwhip effect is one of the most common problems for supply chains.

The bullwhip effect occurs in all kinds of supply chains and can have devastating effects

Differences in the amount of product that gets ordered at each step of a supply chain can contribute to the bullwhip effect.

Which of the following statements is INCORRECT regarding ‘Metrics in Supply Chain’?

Most of the things in the supply chain cannot be measured, whether directly or indirectly.

Metrics give us data and allow us to make decisions based on facts rather than on hunches.

Measurement costs money because we need to invest in ways to capture, store and retrieve the data when we need it.

Supply chain measurements are usually called metrics.

If an order fill rate is 94 percent and an on-time delivery rate is 96 percent then perfect- order fulfillment (POF) would be ______________________.

95 percent

94 percent

96 percent

90 percent

One common customer metric is ____________________, which is the percentage of customer orders that supplier is able to ship within his/her desired response window.

on-time delivery

perfect delivery

order fill rate

comfort delivery

One of the most popular survey approaches is ‘Net Promoter Score (NPS)’ used for measuring customer satisfaction. What is the CORRECT formula for calculating NPS?

(Number of 7 to 10) / (Total Number of Responses) - (Number of 6s or less) / (Total Number of Responses) = NPS

(Number of 8 to 10) / (Total Number of Responses) - (Number of 7s or less) / (Total Number of Responses) = NPS

(Number of 9s and 10s) / (Total Number of Responses) - (Number of 6s or less) / (Total Number of Responses) = NPS

(Number of 1 to 10) / (Total Number of Responses) = NPS

Which of the following is based on someone's judgement or perception and is therefore subjective?

Volume of material

Size of shipment

Customer satisfaction

Staff’s attendance time

__________________________________Measure things that are important to the company. For example, inventory turns and employee satisfaction.

Quantitative metrics

Qualitative metrics

Internal metrics

External metrics

Which of the following tools is used to know why a customer has returned a product?

Barcodes

Reason codes

Chart of accounts

Original invoice of the product

One of the most popular customer survey approaches is to use a Net Promoter Score (NPS). If a customer chooses either 7 or 8 on a scale of 1 to 10, then s/he is considered __________________

a competitor

a neutral

a detractor

a promoter

Which of the following is an example of renewable energy source?

Natural gas

Wind

Coal

Petroleum

Which of the following is an example of ‘threat’ in supply chain management?

There is a possibility of a hurricane attack.

In the case of a hurricane attack, the factory would be flooded.

If the factory is flooded due to the hurricane attack no production would be possible.

Even after the factory is flooded due to the hurricane attack, production would be still possible because of the presence of an extra supporting factory.

Which of the following is an example of ‘disruption’ in supply chain management?

There is a possibility of hurricane attack.

In the case of a hurricane attack, the factory would be flooded.

If the factory is flooded due to the hurricane attack no production would be possible.

Even after the factory is flooded due to the hurricane attack, production would be still possible because of the presence of an extra supporting factory.

Risks can be either good or bad in supply chain management. There is a risk that an organisation might receive a big order. This is an example of ____________________.

upside adaptability

upside risks

downside adaptability

downside risks

Which of the following is an example that the supply chain is resilient?

There is a possibility of a hurricane attack.

In the case of a hurricane attack, the factory would be flooded.

If the factory is flooded due to the hurricane attack no production would be possible.

Even after the factory is flooded due to the hurricane attack, production would be still possible because of the presence of an extra supporting factory.

Risks that affect more than one facility or company could disrupt the entire supply chain, not just its parts. This risk is called ‘_________________’.

global risk

country risk

systemic risk

local risk

Which of the following statements is INCORRECT regarding scoring risks in the supply chain?

Risk can never have a zero score for either probability or impact.

The document that is used to track and score risks is called a risk register

A common way to visualize risks is to use a risk plot or a heat map.

If a risk gets a low score it means that we should ignore the risk as this is insignificant.

An agreement has been completed that the overseas supplier will deliver the products to the depot of the organisation. What kind of risk management is done here?

Accept the risk

Transfer the risk

Avoid the risk

Mitigate the risk

When one thing goes up while another thing also goes up perfectly every time- their correlation coefficient is__________________________.

0

+1.0

+0.1

-1.0

A supply chain manager wants to know where to locate a distribution centre to minimise shipping times. Which of the following methods is appropriate for him/her to use?

Modelling

Simulation

Optimisation

Linear interpolation

When making a scenario planning the decisions we need to make and things we could do fall into four categories. Which of the following is NOT one of them?

No-negligence

No-brainers

No-gainers

Contingent

Supply chain dashboard shows______________________which is the current status of key performance indicators.

data

number

information

report

One of the factors that is feeding the growth of Big Data is the explosion of ______________________.

smartphones

communication devices

sensors

internet

The rapid rate at which new data is being created has led to a trend called ‘ ______________________________ ’.

Data Storage

Big Data

Database

Data Sufficiency

_____________________means that two variables are connected in some way.

Causation

Correlation

Interpolation

Extrapolation

What is the correlation coefficient of the graph?

0

+1

-1

0.45

Supply Chain Management – Mock Exam

Supply Chain Management – Mock Exam

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