D471 Global Supply Chain Management - Set 4 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: What does 'outsource' mean in the context of supply chain management?

To bring business functions in-house

To contract work to external companies

To sell products directly to consumers

To hire more employees internally

Question 2: Which inventory type is kept to prevent stockouts and absorb variability in demand?

Cycle stock

Safety stock

Finished goods

Work-in-progress (WIP)

Question 3: What does the term 'push strategy' imply in supply chain management?

Producing goods based on actual demand

Manufacturing based on forecasted demand

Reducing inventory levels to a minimum

Using real-time data to manage inventory

Question 4: In supply chain logistics, what is the significance of 'lead time'?

It determines the quality of the products.

It measures the total time taken from order placement to delivery.

It refers to the time for employee training.

It indicates the speed of production.

Question 5: What is the focus of 'supply chain integration'?

Isolating departments to enhance productivity

Coordinating activities among supply chain partners for seamless operations

Reducing costs by outsourcing

Increasing inventory levels to meet demand

Question 6: Which of the following best describes 'demand forecasting'?

The process of estimating future customer demand for a product

The strategy for managing supply chain relationships

A method for setting production schedules

The analysis of historical sales data

Question 7: In the context of supply chains, what does 'cycle time' refer to?

The time taken for an entire production run

The total time from order placement to product delivery

The time each workstation has to complete its tasks

The average time for inventory turnover

Question 8: What is the purpose of using 'ABC analysis' in inventory management?

To track the overall financial performance of the supply chain

To classify inventory items based on their importance

To determine the best suppliers for raw materials

To optimize production scheduling

Question 9: In supply chain management, what does the term 'vendor managed inventory' (VMI) entail?

The retailer manages its own inventory levels

The vendor monitors and replenishes inventory at the retailer’s site

Suppliers control the entire production process

Customers manage their own inventory needs

Question 10: What is a primary characteristic of a 'continuous flow' process?

High variation in product types

Low volume of standardized products

An automated process with no variation

Flexible production for customized orders

Question 11: Which of the following is an example of a qualitative forecasting method?

Time series analysis

Moving averages

Market surveys

Regression analysis

Question 12: What does 'cross-docking' aim to reduce in a supply chain?

Inventory carrying costs

The time products spend in storage

Transportation costs

Production lead times

Question 13: What is the primary purpose of a Master Production Schedule (MPS)?

To determine long-term strategic goals

To outline specific production quantities and timing

To manage supplier relationships

To forecast future market trends

Question 14: In supply chain terminology, what does 'inventory turnover' measure?

The speed at which products are produced

The rate at which inventory is sold and replaced

The efficiency of supply chain operations

The time products spend in storage

Question 15: What does 'supply chain sustainability' focus on?

Reducing production costs only

Balancing financial performance with social and environmental responsibilities

Enhancing customer satisfaction

Increasing the speed of production processes

Question 16: In supply chain management, what does the term 'tariffs' refer to?

Discounts offered to bulk buyers

Fees imposed on imported goods

Costs associated with transportation

Regulations affecting product quality

Question 17: Which of the following is a potential disadvantage of maintaining high levels of inventory?

Increased stockout risks

Reduced cash flow due to capital tied up in inventory

Improved customer satisfaction

Lower carrying costs

Question 18: What is the primary characteristic of a job shop production environment?

High volume, standardized production

Low volume, customized production

Continuous flow of materials

No variability in product types

Question 19: Which strategy is characterized by producing goods only when there is actual demand?

Make-to-stock

Assemble-to-order

Make-to-order

Engineer-to-order

Question 20: In supply chain management, what does 'capacity utilization' measure?

The efficiency of supply chain operations

The percentage of production capacity being used

The amount of inventory in stock

The speed of product delivery

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