Understanding Supply Chain Operations

What is the primary goal of supply chain management?

• To increase the cost of goods sold.

• To optimize the flow of goods, information, and finances in the supply chain.

• To limit the flow of information in the supply chain.

• To focus solely on production efficiency.

Define the term 'logistics' in the context of supply chains.

• Logistics refers to the marketing strategies used in supply chains.

• Logistics involves the design of supply chain facilities and infrastructure.

• Logistics is the management of the flow of goods and services in supply chains.

• Logistics is the financial management of supply chain operations.

What are the key components of a supply chain?

• Suppliers, manufacturers, warehouses, distribution centers, retailers, and customers.

• Manufacturers and distribution centers only

• Retailers and customers only

• Suppliers and manufacturers only

Explain the concept of 'just-in-time' inventory.

• Just-in-time inventory requires purchasing all materials at the beginning of the production cycle.

• Just-in-time inventory is a strategy that reduces inventory costs by receiving goods only as needed for production.

• Just-in-time inventory is a method of overstocking to prevent shortages.

• Just-in-time inventory involves storing large quantities of goods to ensure availability.

What role does technology play in supply chain operations?

• Technology complicates supply chain operations by increasing costs.

• Technology plays a crucial role in enhancing efficiency, visibility, and communication in supply chain operations.

• Technology is only useful for marketing purposes in supply chains.

• Technology has no impact on supply chain efficiency.

Describe the importance of supplier relationships in supply chains.

• Supplier relationships are only important for large companies.

• Supplier relationships are vital for ensuring material flow, collaboration, quality, and efficiency in supply chains.

• Supplier relationships have no impact on product quality.

• Supplier relationships are irrelevant in a digital supply chain.

What is demand forecasting and why is it important?

• Demand forecasting is the process of predicting future sales prices.

• Demand forecasting is only relevant for large corporations.

• Demand forecasting is the analysis of past sales data without future predictions.

• Demand forecasting is the estimation of future customer demand, and it is important for effective inventory management, production planning, and resource allocation.

How do global supply chains differ from local supply chains?

• Global supply chains only involve digital transactions without physical goods.

• Global supply chains operate internationally with complex logistics, while local supply chains function within a specific region with simpler logistics.

• Global supply chains are simpler and more efficient than local supply chains.

• Local supply chains require international regulations and tariffs.

What are the challenges faced in supply chain sustainability?

• Increased demand for products

• Resource scarcity, regulatory compliance, lack of transparency, high costs, and resistance to change.

• Simplified logistics processes

• Enhanced customer satisfaction

Explain the impact of disruptions on supply chain efficiency.

• Disruptions only affect the quality of products, not efficiency.

• Disruptions have no effect on supply chain efficiency.

• Disruptions improve supply chain efficiency by speeding up processes.

• Disruptions negatively impact supply chain efficiency by causing delays, increasing costs, and reducing inventory levels.