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SCM

A retail chain notices erratic order patterns from its stores. The warehouse is overwhelmed during some weeks and underutilized in others. This is leading to stockouts and overstock simultaneously. This phenomenon best describes which of the following concepts?

  JIT Failure
 Lean Inventory
 Bullwhip Effect
 Supplier Risk Management

A furniture manufacturer sources high-volume, low-cost nails and screws from multiple vendors. Switching suppliers is easy. How should these items be classified in the Kraljic Matrix?

 Leverage
 Strategic
 Non-Critical
 Bottleneck

A consumer electronics brand uses the SCOR model to define their processes. They want to reduce variability in planning. Which process category would this effort fall under?

 Source
 Plan
 Make
 Deliver

A supply chain simulation tool allows a company to test alternate logistics designs under a flood scenario without actually changing operations. What is the key value proposition of simulation in this case?

 Process reengineering
 Risk-free experimentation
 Supplier development
 Cost savings

A fashion company faces issues where suppliers aren`t informed about design changes on time, leading to mismatched production. What supply chain driver must be enhanced to reduce this misalignment?

 Inventory
 Sourcing
 Information
 Facilities

An automaker relies on a chip manufacturer for 70% of its processors. Switching suppliers would take 12 months and regulatory approvals. What sourcing strategy best suits this strategic item?

 Blanket PO
 Dual sourcing
 Spot buying
 Long-term partnership

A sportswear company is evaluating whether to centralize demand forecasting or let each regional hub forecast independently. They want consistency and efficiency. Which function should take ownership of this process to ensure coordination across departments?

 Sales and Operations Planning (S&OP)
 Logistics
 Distribution
 Procurement

A tech hardware firm is exploring pricing levers in its supply chain. It considers dynamic pricing based on stock levels and delivery timelines. Which driver does pricing belong to in the SC performance framework?

 Cross-functional
 Financial
 Operational
 Logistical

A company produces 12,000 units a year. Average inventory over the year is 3,000 units. What is the Inventory Turnover Ratio?

 2
 6
 3
 4

During negotiations, the buyer mentions they have another supplier offering similar specs at a lower price. This strategy reflects use of:

 Anchoring
 ZOPA
 BATNA
  Walkaway Clause

Two firms co-develop a new electric vehicle battery. They negotiate to share IP and investment risks. Which tactic is being used here?

 Value claiming
 Competitive positioning
  Cost plus
 Expanding the pie

A global retailer controls all decisions centrally. During COVID, regional stores couldn’t respond quickly due to delayed HQ approvals. What issue is highlighted here?

 Poor transport design
 Vendor overload
 Overstaffing
 Centralization bottleneck

A supplier offers $1M with 5% price increase/year. Buyer negotiates fixed 3-year price. Inflation = 6%. What’s the 3-year cost difference for buyer?

 Saves $100K
 Pays $50K more
  Saves $90K
 Saves $157,625

A pharmaceutical firm operating in multiple countries is experiencing frequent delays in customer deliveries, even though its inventory seems adequate at warehouses. Upon investigation, it finds that cross-functional communication is weak and there is no real-time visibility of product flows. Which of the following flows, if optimized, would most effectively resolve this problem?

  Human Resource Flow
 Financial Flow
  Information Flow
 Product Flow

Stockout cost = $10/unit, Holding cost = $1/unit Order 500 units → 30% stockout Order 1,000 units → 10% stockout Demand = 1,000 units Choose lower-cost option.

 Insufficient data
 500 units
 Both equal
 1,000 units

An apparel brand sources denim from two suppliers and compares them based on cost, lead time, and flexibility. Which sourcing metric is most relevant here?

  Cost efficiency
 Market share
  Innovation potential
 R&D expenditure

A firm can buy a component for $50 or make it at $45, but internal production ties up 10 hours of bottleneck resource at $1/hour opportunity cost. What is the effective make cost?

 $50
 $55
 $60
 $45

An FMCG company is trying to assess supply chain maturity. They are focused on managing facilities, transportation, and inventory. Which of the following best describes the type of supply chain drivers they are focusing on?

 Logistical
  Cross-Functional
 Value-Oriented
 Strategic

A bakery chain expands to Tier-2 cities and wants to minimize transportation costs while ensuring freshness. Their dilemma: more warehouses or longer lead times? To reduce lead time and improve responsiveness, which strategy should they consider?

 Regional distribution centers
 Demand pooling
 Cross-docking
 Single centralized warehouse

A biotech firm needs a special enzyme produced by only one supplier globally. Any delay affects the entire production line. How should the enzyme be categorized in Kraljic’s Matrix?

 Leverage
 Bottleneck
 Routine
 Strategic

With simulation training, a firm reduced disruption cost from $800K to $300K. Training cost = $50K. What is the ROI of simulation training?

 4x
 10x
 11x
 5x

A $100 product includes a component that costs $20. If the component price increases by 25%, what is the % impact on product cost?

 25%
  3%
 5%
 10%

A supplier and buyer negotiate contract terms for one-time bulk purchase of steel coils. What type of negotiation best fits this situation?

 Integrative
 Escalative
 Collaborative
 Distributive

In a workshop, participants simulate a port strike that disrupts 40% of inbound supply. They test alternate sourcing in sandbox mode. Which learning outcome does this represent?

 Decision-making agility
 Knowledge recall
 Lead time prediction
 Compliance assurance