Quiz 1 SCM

In a supply chain network, which of the following would best optimize the trade-off between inventory holding costs and transportation costs?

• Increasing order frequency while reducing order size

• Implementing a centralized distribution system

• Reducing lead time variability through supplier collaboration

• Expanding the number of warehouse locations

Which procurement strategy is most effective for mitigating supply chain disruptions caused by geopolitical instability?

• Single sourcing from a low-cost country

• Just-in-time (JIT) procurement without buffer stock

• Dual or multi-sourcing from geographically diverse suppliers

• Exclusive long-term contracts with a single supplier

When evaluating the Total Cost of Ownership (TCO) in procurement, which of the following cost components is often overlooked but significantly impacts long-term profitability?

• Direct material costs

• Supplier switching costs

• Invoice processing fees

• Warehouse rental fees

A manufacturing company wants to reduce transportation costs while maintaining service levels. Which of the following strategies would be the most effective?

• Using only premium express shipping services

• Consolidating shipments and optimizing load planning

• Outsourcing logistics to multiple 3PL providers simultaneously

• Implementing a decentralized inventory system with excessive stock

Which factor is most critical when selecting a transportation mode for high-value, time-sensitive goods?

• Cost per ton-mile

• Transit time and reliability

• Availability of warehouse space

• Packaging material requirements

A warehouse experiences frequent stockouts despite maintaining high inventory levels. What is the most probable cause of this issue?

• Excessive demand variability with poor forecasting

• Redundant safety stock policies

• Underutilization of just-in-time (JIT) systems

• High warehouse labor efficiency

A manufacturer wants to implement an advanced warehouse management system (WMS) to improve order fulfillment rates. Which key feature should be prioritized to enhance warehouse accuracy?

• Real-time inventory tracking with RFID technology

• Manual cycle counting every quarter

• Outsourcing order processing to third-party providers

• Reducing safety stock levels to improve turnover

Which key metric best evaluates the efficiency of a transportation system in a supply chain?

• Inventory turnover ratio

• Freight cost per unit shipped

• Supplier lead time variability

• Order-to-cash cycle time

A company using a cross-docking warehouse strategy should primarily focus on which operational objective?

• Minimizing warehouse storage duration and accelerating distribution

• Increasing supplier lead times to accommodate demand fluctuations

• Maximizing inventory carrying costs for better stock availability

• Reducing outbound transportation frequency to lower costs

A supply chain manager is evaluating whether to switch from a push-based to a pull-based inventory system. What is the primary advantage of a pull-based system?

• Higher economies of scale in production

• Lower overall working capital requirements

• Increased demand forecasting accuracy

• Greater flexibility in supplier contract negotiations