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

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?

 Single centralized warehouse
 Cross-docking
 Demand pooling
 Regional distribution centers

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?

 Strategic
 Leverage
 Bottleneck
 Non-Critical

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
 Distribution
 Sales and Operations Planning (S&OP)
 Procurement

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.

 1,000 units
 500 units
 Both equal
 Insufficient data

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

 3
 2
 4
 6

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?

 Lead time prediction
 Compliance assurance
 Decision-making agility
 Knowledge recall

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?

 Facilities
 Information
 Sourcing
 Inventory

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?

  Cross-Functional
 Strategic
 Logistical
 Value-Oriented

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

 5%
 10%
 25%
  3%

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
 Distributive
 Collaborative

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?

 Deliver
 Plan
 Make
 Source

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?

 Product Flow
  Human Resource Flow
 Financial Flow
  Information Flow

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
 Market share
  Cost efficiency
  Innovation potential

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

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
 $45
 $55
 $60

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?

 Dual sourcing
 Long-term partnership
 Blanket PO
 Spot buying

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
 Financial
 Cross-functional

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

 11x
 5x
 10x
 4x

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

 BATNA
 Anchoring
 ZOPA
  Walkaway Clause

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
 Vendor overload
 Overstaffing

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 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?

 Strategic
 Bottleneck
 Leverage
 Routine

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