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SCM

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
 Pays $50K more
  Saves $90K
 Saves $100K

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
 Cost savings
 Supplier development
 Risk-free experimentation

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?

 Make
 Source
 Plan
 Deliver

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
 Overstaffing
 Centralization bottleneck
 Vendor overload

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

  Walkaway Clause
 ZOPA
 Anchoring
 BATNA

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?

 Supplier Risk Management
 Lean Inventory
 Bullwhip Effect
  JIT Failure

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

 10x
 11x
 5x
 4x

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)
 Procurement
 Logistics
 Distribution

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?

 Market share
  Cost efficiency
 R&D expenditure
  Innovation potential

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
 Strategic
 Value-Oriented
  Cross-Functional

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

  Cost plus
 Expanding the pie
 Competitive positioning
 Value claiming

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
 Leverage
 Strategic
 Bottleneck

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?

 Information
 Inventory
 Sourcing
 Facilities

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?

 Financial
 Logistical
 Cross-functional
 Operational

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
 Routine
 Bottleneck
 Strategic

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

 Distributive
 Collaborative
 Integrative
 Escalative

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
 Blanket PO
 Dual sourcing
 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?

 6
 2
 4
 3

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
 Single centralized warehouse
 Regional distribution centers
 Demand pooling

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?

  Information Flow
 Financial Flow
 Product Flow
  Human Resource 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
 1,000 units
 500 units
 Both equal

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

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

  3%
 25%
 10%
 5%

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?

 Knowledge recall
 Compliance assurance
 Lead time prediction
 Decision-making agility