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LGM 2213 - Chp 1

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Supply chain management (SCM) focuses only on manufacturing processes

a)

True

b)

False

2.

One of the key principles of SCM is to customize logistics networks based on customer needs

a)

True

b)

False

3.

Purchasing in supply chain management involves ensuring the company has materials and supplies before they are needed.

a)

True

b)

False

4.

Standardization in SCM always increases costs due to lack of customization.

a)

True

b)

False

5.

What is the primary goal of Supply Chain Management (SCM)?

a)

a) Reducing costs only

b)

b) Integrating business processes to add value for customers

c)

c) Increasing warehouse storage capacity

d)

d) Eliminating logistics and distribution

6.

Which of the following is NOT a key element of SCM?

a)

a) Integration

b)

b) Operations

c)

c) Product packaging

d)

d) Distribution

7.

What is the main purpose of demand management in SCM?

a)

a) Ensuring all suppliers get equal orders

b)

b) Managing customer complaints

c)

c) Balancing supply and demand to avoid excess or shortage

d)

d) Increasing supplier costs

8.

Which principle of SCM suggests that companies should segment their supply chain based on customer needs?

a)

a) Differentiate Products Close to Customer

b)

b) Align Demand Planning Across Supply Chain

c)

c) Adapt Supply Chain to Customer’s Needs

d)

d) Outsource Strategically

9.

5. What is the role of logistics software in SCM?

a)

a) Reducing product quality checks

b)

b) Managing shipments efficiently

c)

c) Increasing paperwork in warehouses

d)

d) Limiting supplier communication

10.

6. The bullwhip effect in SCM refers to:

a)

a) A stable supply chain with minimal risks

b)

b) Increasing fluctuations in inventory levels due to inaccurate demand forecasting

c)

c) A method for reducing product costs

d)

d) To increase manual data entry tasks

11.

What is one disadvantage of poor information flow in SCM?

a)

a) Reduced supplier and customer relationships

b)

b) Faster order fulfillment

c)

c) Increased accuracy in demand forecasting

d)

d) Improved supply chain efficiency

12.

Which of the following is a benefit of effective SCM?

a)

a) Higher storage costs

b)

b) Increased product delays

c)

c) Faster time-to-market

d)

d) More manual order processing

13.

Which of the following statements about outsourcing in SCM is true?

a)

a) Companies should always outsource all activities

b)

b) Core competencies should not be outsourced

c)

c) Outsourcing always leads to higher costs

d)

d) Outsourcing eliminates the need for supplier relationships

14.

Effective SCM improves product flow by minimizing delays and optimizing demand forecasting

a)

True

b)

False

15.

Forecasting in SCM should be done independently by each department to maintain accuracy.

a)

True

b)

False

16.

The bullwhip effect in SCM refers to the smooth flow of goods without any supply chain disruptions.

a)

True

b)

False

17.

Logistics software plays a crucial role in optimizing product distribution in SCM.

a)

True

b)

False

18.

Outsourcing should be done strategically to reduce overall costs without affecting core competencies.

a)

True

b)

False

19.

Developing IT systems that support multi-level decision-making enhances supply chain efficiency.

a)

True

b)

False

20.

Why is IT important in modern SCM?

a)

a) To make decision-making slower

b)

b) To enhance visibility and integration across the supply chain

c)

c) To reduce employee roles in logistics

d)

d) To increase manual data entry tasks