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Supply Chain Management explores the end-to-end processes involved in producing and delivering goods and services, from raw materials procurement to final customer delivery. This course covers key concepts such as sourcing strategies, inventory management, logistics, demand forecasting, procurement, and supplier relationship management. Students will learn how to optimize supply chains for efficiency, cost-effectiveness, and responsiveness while managing risks and ensuring sustainability. The course also examines the impact of globalization, technology, and data analytics on modern supply chain operations, equipping learners with practical tools and critical thinking skills to address real-world supply chain challenges.
Recommended Textbook
Supply Chain Management A Logistics Perspective 10th Edition by John J. Coyle
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15 Chapters
547 Verified Questions
547 Flashcards
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34 Verified Questions
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Sample Questions
Q1) Supply and demand has become less volatile as managers have become more adept at controlling the elements.
A)True
B)False
Answer: False
Q2) Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a less competitive environment.
A)True
B)False
Answer: False
Q3) A critical outcome of the supply chain is to deliver:
A) profits.
B) the right product to the right place.
C) cost/value.
D) on management's expectations.
Answer: B
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Q1) Which one of the countries below is not part of NAFTA?
A) United States
B) Canada
C) Argentina
D) Mexico
Answer: C
Q2) From a customer service perspective, one of the four important characteristics for global market and strategy is technology companies counteract short product lifecycle with continual upgrades and new products.
A)True
B)False
Answer: True
Q3) The Customs Trade Partnership Against Terrorism (C-TPAT) was put in place to assess the vulnerability of U.S. ports and to deny entry to ships from countries that do not meet U.S. security standards.
A)True
B)False
Answer: False
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36 Verified Questions
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Sample Questions
Q1) What is often the largest component of logistics costs?
A) Inventory costs
B) Transportation costs
C) Shipper-related costs
D) Administrative costs
Answer: B
Q2) As the dollar value of a product increases, packaging costs: A) increase.
B) decrease.
C) stay the same.
D) can't be determined.
Answer: A
Q3) As a firm spends more on transportation service, cost of lost sales increases.
A)True
B)False
Answer: False
Q4) As the dollar value of a product decreases, its inventory value decreases.
A)True
B)False
Answer: True
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Sample Questions
Q1) Which is an advantage of the grid technique for facility location?
A) It establishes the final determination of the best site.
B) Computationally, it is relatively easy to use.
C) It is a dynamic approach with solutions remaining optimum over many time periods.
D) It considers topographic conditions in choosing the optimum location.
Q2) The grid technique will evaluate all transportation rates equally.
A)True
B)False
Q3) When a blanket rate structure is used, which factor is eliminated as a locational determinant?
A) Labor rate
B) Transportation rate
C) Raw material sources
D) Market sources
Q4) In a commercial zone, the same transportation rate is applied from an origin to any point in the zone.
A)True
B)False
Q5) What are the current trends governing site selection?
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Sample Questions
Q1) Commodities are items or services that are low in risk but high in value.
A)True
B)False
Q2) What vendor selection criteria are described by price and financial stability?
A) Capability
B) Financial
C) Quality
D) Reliability
Q3) In the Assess Supply Market step, the firm:
A) determines which are the least cost vendors.
B) decides which vendors are located closest to the firm's plant to insure timely delivery.
C) identifies all possible suppliers that might be able to satisfy the user's needs.
D) defines the parameters of the sourcing strategy process.
Q4) Procurement serves as a critical link between members of the supply chain.
A)True
B)False
Q5) There are seven steps in the Strategic Sourcing Methodology. Name at least five, and choose two to discuss in more detail.
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Q1) Which of these is not a production method?
A) Make-to-stock
B) Create-to-order
C) Build-to-order
D) Assemble-to-order
Q2) A push-based strategy works well for supply chains that focus on:
A) lean production.
B) the anticipation of demand or without knowledge of customer orders.
C) work centers and offshore sourcing.
D) the immediate delivery of off-the-shelf, low-cost, standardized goods.
Q3) Discuss the three planning timeframes, how they relate to capacity planning and materials planning, and the various tools associated with them.
Q4) Which of the following is not a reactive capability strategy?
A) Machine flexibility
B) Routing flexibility
C) Resource requirements planning
D) Offshoring
Q5) There are four assembly processes. Name all four, and pick two to discuss in detail.
Q6) Discuss the challenges facing production managers.
Page 8
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Q1) One type of demand fluctuation is caused by random variation. What is random variation?
A) Errors in inventory management
B) Errors not caught by using exponential smoothing
C) A development that cannot normally be anticipated
D) Failure to properly execute the SO&P process plan
Q2) The essence of demand management is to estimate and manage _____ and use this information to make operating decisions.
A) channel orders
B) vendors and suppliers
C) customer demand
D) SO&P processes
Q3) Phantom demand is created by over-ordering during peak demand.
A)True
B)False
Q4) While there are four types of forecast error measures that can be used, none are foolproof.
A)True
B)False
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Sample Questions
Q1) There are two parts to the order management process. The first is _____ and the second is _____.
A) managing the order after it is received; influencing how the customer orders
B) shipping the order; taking the order
C) influencing how the customer orders; managing the order after it is received
D) the Internet model; the traditional model
Q2) Activity Based Costing (ABC) allocates costs to activities based on a fixed predetermined measure (e.g., cases).
A)True
B)False
Q3) Customer service is anything that touches the customer.
A)True
B)False
Q4) Define and discuss Activity Based Costing, including its impact on profitability.
Q5) Compare and contrast the concepts of order-to-cash cycle time and order cycle time.
Q6) Customer service is of equal importance to both logistics and marketing.
A)True
B)False
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Q1) Capital cost is also called interest or opportunity cost.
A)True
B)False
Q2) As Q decreases for EOQ, the cost per order:
A) increases.
B) decreases.
C) stays the same.
D) can't be determined.
Q3) JIT, MRP, and MRP II all incorporate some version of the basic EOQ model into their philosophies.
A)True
B)False
Q4) In the event of a "stockout" one of the things that could happen is:
A) the vendor's plant shuts down.
B) the cost of capital is increased.
C) the SCOR process would come into play.
D) extra shipping cost may be incurred.
Q5) EOQ can only be used for "push" inventory.
A)True
B)False

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Q1) The primary facility operations focus is:
A) on the movement and storage of product.
B) on inventory control and personnel issues.
C) in making sure KPIs are fulfilled.
D) the WMS system.
Q2) Asset utilization is very important in a 3PL warehouse.
A)True
B)False
Q3) The roles of the distribution center include _____.
A) balancing supply and demand
B) protecting against uncertainty and promoting transportation economies
C) promoting transportation economies
D) balancing supply and demand, protecting against uncertainty, and promoting transportation economies
Q4) As the number of picks per order picker decreases on a given tour, his/her total time out _____ and the time per pick _____.
A) decreases; decreases
B) increases; increases
C) decreases; increases
D) increases; decreases

Page 12
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Sample Questions
Q1) The main strategy behind routing guides is to:
A) maintain exact control.
B) comply with or enforce FOB terms.
C) promote supply chain excellence.
D) select between modes.
Q2) Software tools related to the movement of goods across the supply chain are lumped together in a general category called transportation management systems (TMS).
A)True
B)False
Q3) All modes of transportation provide the same basic service.
A)True
B)False
Q4) The railroads have not shared in the growth in transportation and so do not have any capacity issues.
A)True
B)False
Q5) Railroad's length of haul is longer than that of motor carriers.
A)True
B)False

Page 13
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Sample Questions
Q1) Generally, there are two types of logistics relationships. Name both, and pick one to discuss in more detail.
Q2) A horizontal relationship refers to firms on the same level in the supply chain.
A)True
B)False
Q3) Horizontal collaboration refers to a relationship that is _____ and/or _____.
A) 3PLs to 3PLs; service provider to service provider
B) buyer to buyer; seller to seller
C) flat across the chain; involving partners equal in size
D) collaboration with horizontal; vertical competitors
Q4) How would you distinguish between a vendor, a partner, and a strategic alliance? What conditions would favor the use of each?
Q5) What does it take to have an area of "core competency"? Provide an example.
Q6) What are some of the more common "drivers" and "facilitators" of successful supply chain relationships?
Q7) What are the basic types of 3PL firms, and which are in most prevalent use?
Q8) Define what a "transactional" relationship is, and discuss how this occurs in logistics.
Q9) Define and discuss the term "4PL."
Page 14
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Q1) Four major categories that provide a useful way to examine logistics and supply chain performance are time, quality, cost, and inventory.
A)True
B)False
Q2) Scorecards and key performance indicators (KPIs) are the same thing.
A)True
B)False
Q3) Discuss the differences between the terms metric, measure, and index.
Q4) Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole.
A)True
B)False
Q5) An index:
A) combines two or more metrics into a single indicator.
B) is complex to define, usually involves a calculation, and is often in the form of a ratio. C) is easily defined with no calculations and with simple dimensions.
D) is any quantitative output of an activity or process.
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Q6) Discuss the revenue-cost savings connection and include the formula.
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Q1) Which of the below is not part of the seven Rs of logistics?
A) Information
B) Cost
C) Quality
D) Place
Q2) The promise of driverless vehicles is a long-range prospect as much more testing and proof of concept will be needed to gain regulatory and public acceptance of truly driverless vehicles.
A)True
B)False
Q3) Why would companies choose to use on-demand software versus licensed software?
Q4) Managers have several options for software development and implementation. They include:
A) internal development.
B) third party logistics firms.
C) external software vendors.
D) all of these answers.
Q5) Describe how a supply chain information system enables process excellence and links the essential elements.
Q6) What is the role of enterprise resource planning systems in SCM?
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Q1) Which one of the various stages of sophistication and robustness associated with supply chain analytics focuses on questions such as what is likely to happen, what are the likely trends, and what are the results if certain events occur?
A) Descriptive
B) Predictive
C) Prescriptive
D) Cognitive
Q2) Name any five of the seven principles of supply chain management, and choose two to discuss in more detail.
Q3) IBM Watson is a prescriptive analytics system that can help to understand data, learn from it, and reason through it.
A)True
B)False
Q4) There is a strong feeling among some supply chain experts that the mitigation of risk is the best driver of sustainability initiatives.
A)True
B)False
Q5) Distinguish between a value stream and a waste stream for reverse flows.
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