Which of the following best defines a supply chain?

• A group of retail stores

• A company’s internal management

• A system of organizations involved in moving a product from supplier to customer 

• A warehouse connected to a factory

Which function manages the relationship between supply and demand in the supply chain?

• Procurement

• Finance

• Demand planning 

• Invoicing

What does the ‘bullwhip effect’ refer to in a supply chain?

• Stable product demand

• Centralized warehousing

• Increasing order variability up the supply chain 

• Faster product delivery

How can good supply chain management contribute to a company's competitiveness?

• By reducing product innovation

• By lowering delivery speed

• By improving cost efficiency and customer satisfaction 

• By outsourcing marketing functions

Which of the following strategies can help reduce the bullwhip effect?

• Increasing order quantities

• Reducing visibility between supply chain partners

• Sharing real-time demand data 

• Using only one supplier

"Making it right the first time" is:

• 1. A user-based definition of quality.

• 1. A manufacturing-based definition of quality.

• 1. A product-based definition of quality.

• 1. The definition of quality proposed by the American Society for Quality

All of the following costs are likely to decrease as a result of better quality EXCEPT:

• 1. customer dissatisfaction costs.

• 1. inspection costs.

• 2. scrap costs.

• 2. warranty and service costs.

A Three Sigma program has how many defects per million?

• 1. 34

• 2. 3 - 4

• 1. 3 times the standard deviation

• 2700

The process improvement technique that sorts the vital few from the trivial many is:

• 1. Taguchi analysis.

• 2. Pareto analysis.

• 2. benchmarking.

• 2. Deming analysis.

Consider the Pareto chart in the next picture. The vertical axis is the percentage of components incorrectly located, and the horizontal axis is the component number, a code that locates the device on the printed circuit board. Locations number 27 and 39 account for how many percent of errors?

• 70%

• 80%

• 66%

• 89%