SIMULATIONSX

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SCM

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.

 500 units
 Both equal
 1,000 units
 Insufficient data

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?

 Centralization bottleneck
 Poor transport design
 Overstaffing
 Vendor overload

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?

 Supplier development
 Cost savings
 Risk-free experimentation
 Process reengineering

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

 Integrative
 Distributive
 Collaborative
 Escalative

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?

 Non-Critical
 Strategic
 Bottleneck
 Leverage

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?

 Compliance assurance
 Decision-making agility
 Lead time prediction
 Knowledge recall

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?

 Routine
 Bottleneck
 Leverage
 Strategic

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?

 $60
 $50
 $55
 $45

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?

 Cross-docking
 Regional distribution centers
 Demand pooling
 Single centralized warehouse

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?

 Plan
 Source
 Make
 Deliver

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?

 Operational
 Logistical
 Cross-functional
 Financial

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?

 Bullwhip Effect
  JIT Failure
 Supplier Risk Management
 Lean Inventory

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
  Cost plus
 Expanding the pie
 Competitive positioning

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
 Value-Oriented
  Cross-Functional
 Strategic

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

 11x
 10x
 4x
 5x

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?

 R&D expenditure
  Innovation potential
  Cost efficiency
 Market share

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?

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

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

  3%
 5%
 25%
 10%

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

  Walkaway Clause
 ZOPA
 BATNA
 Anchoring

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?

 Spot buying
 Dual sourcing
 Blanket PO
 Long-term partnership

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

 2
 4
 3
 6

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?

 Financial Flow
 Product Flow
  Information Flow
  Human Resource Flow

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

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?

 Sourcing
 Facilities
 Information
 Inventory