Logistics and Supply Chain Management Exam 1 Practice

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• Which forecasting method is Naive?
• An electronic marketplace is best described as:
• Which item is not included in landed costs?
• What is demand planning accuracy and how can it be improved?
• Which of the following is a major characteristic of strategic sourcing?
• Purpose of safety stock.
• What is globalization in SCM and its challenges?
• Which forecasting method weights recent data more heavily?
• What is omnichannel fulfillment?
• What is demand shaping?
• Which practice is a recommended mitigation for the bullwhip effect?
• Which criterion most directly impacts supplier selection?
• What is the primary purpose of Material Requirements Planning (MRP)?
• In Lean, which tool is commonly used to signal replenishment?
• Not an EOQ assumption?
• Which agency regulates foreign freight forwarders?
• Which service represents a fleet owned by a firm's own supply chain?
• Which is an advantage of e-sourcing and e-procurement?
• Which statement about 3PL and 4PL is correct?
• What best describes the role of a distribution network in meeting service levels?
• OTIF stands for On-Time In-Full; which two dimensions are evaluated by OTIF?
• Identify two drivers of the bullwhip effect and a mitigation.
• What are the five enabling functions of the supply chain?
• What does NAFTA stand for?
• Which service level metrics are commonly used?
• Which of the following is a Desirable Capability in supplier selection?
• Lead time comprises which components?
• What is the primary objective of supply chain management?
• Which statement best describes the difference between push and pull systems in supply chain management?
• Strategic sourcing defines the procurement process as focusing on what?
• Which flow typically involves moving products from a supplier to a customer and may include returns or service needs?
• Vendor-managed inventory (VMI) involves which arrangement?
• In a vendor-managed inventory program, who initiates replenishment?
• What is a major disadvantage of air freight?
• Which ocean service is for hire with no set routes?
• Which item procurement matrix component corresponds to low risk and high value?
• Which statement about the critical path is NOT true?
• What is sustainability in SCM?
• Air freight typically provides what service profile?
• Explain EOQ and identify the assumptions behind the model.
• Which metrics are commonly used to assess forecast accuracy?
• Which item procurement matrix component corresponds to high risk and low value?
• What is cycle counting?
• Green logistics vs sustainable logistics differ in which way?
• The SCOR model describes the business activities associated with satisfying a customer's demand, which include plan, source, make, deliver, and return. These are what?
• Which of the following is NOT a feature of MRP?
• What is the difference between incremental and radical innovation in supply chain design?
• Electronic marketplace example
• Increasing cycle service level typically leads to what in inventory terms?
• What does S&OP primarily align?
• Sell-side system example
• How does batch production differ from continuous production?
• Which formula correctly defines the inventory turnover ratio?
• Which is an example of independent demand?
• Which country is NOT listed among the top five US trading partners?
• What is inventory turnover and how is it calculated?
• Which description best defines service level in logistics?
• What does cross-functional alignment in S&OP involve?
• Which item is included in landing costs?
• Which model is described as a buyer-controlled e-procurement or e-commerce service?
• Factors influence transportation mode choice?
• What is a Transportation Management System (TMS) and its role?
• What are the main responsibilities of a procurement function in SCM?
• Which factor commonly contributes to longer lead times in global supply chains?
• What is the difference between consolidation and deconsolidation in transportation?
• Which country is listed as one of the top five U.S. trading partners?
• An online trading community is best described as:
• Which factor is a disadvantage of ocean shipping?
• In the 1960s, which concept focused on the outbound side of a firm's logistics system?
• What is the effect of sharing demand data on the bullwhip effect?
• Which describes independent demand?
• What is ERP's role in SCM?
• Which option is NOT one of the SCOR process categories?
• Which of the following is NOT a typical lead time component?
• Which statement best defines a supply chain?
• What is RFID and its role in SCM?
• A model where a seller operates a system selling to multiple buyers is known as:
• Distinguish between service level and fill rate.
• Push vs Pull inventory systems.
• Lead time is defined as the time between placing an order and receiving it.
• Which statement describes safety stock?
• What is the main objective of capacity planning?
• What is capacity cushion?
• What is a primary function of freight forwarders in terms of shipment size?
• Which statement about Vendor Managed Inventory (VMI) is true?
• Which of the following is a typical sustainability metric in SCM?
• Incoterms define responsibilities, costs, and risks during cross-border shipping; why are they important?
• What is an advantage of rail transport over long distances?
• Which of the following best defines a perfect order?
• What is inventory pooling and its benefits?
• What are major advantages of motor transport?
• Define resilience in the supply chain context.
• Motor transport is commonly used for shipments to adjacent countries and in intermodal operations.
• Direct transaction costs are defined as which of the following?
• What is a distribution network design?
• What is risk management in SCM?
• Explain the difference between cross-functional teams and silos in SCM.
• Which flow concerns the movement of information on orders and the status of delivery?
• Why can packaging be an issue in global business?
• What is S&OP?
• Is the S&OP process designed to align demand and supply across multiple functional areas with cross-functional collaboration?
• Days of Inventory on Hand (DIOH) is calculated as 365 divided by inventory turnover. If inventory turnover increases, what happens to DIOH?
• Which item is NOT one of the six steps to find the total procurement price?
• What is fill rate in inventory management?
• What did the year 2000 bring to supply chain management?
• What is the difference between supplier development and supplier relationship management?
• Which statement best defines demand shaping?
• Which formula gives safety stock as SS = Z * σ_DLT, where Z is the service factor and σ_DLT is the standard deviation of demand during lead time?
• Which of the following is an advantage of ocean shipping?
• Explain the difference between FOB origin and FOB destination.
• What development in the 1980s allowed better coordination of inbound and outbound transportation movements?
• Explain the difference between outsourcing and offshoring.
• What is warehouse slotting?
• Which forecasting approach uses projected demand to drive planning?
• Which statement about modal split is accurate?
• What is cycle stock?
• RFID and how it helps logistics?
• What does capacity planning primarily ensure?
• Which of the following is identified as a major supply chain issue?
• Which storage facility is supervised by customs authorities and stores dutiable landed imports pending re-export or payment?
• What is risk management in the supply chain and its common strategies?
• What is the distinction between a supplier scorecard and its metrics?
• Operations logistics costs encompass which elements?
• Which capability is typically supported by a Transportation Management System (TMS)?
• Explain cross-docking.
• What happened in the 1990s to today regarding supply chain management?
• Outbound logistics focuses on which activity?
• In the total landed cost, what is the tangible, visible cost?
• What is lead time demand?
• Which flow provides organizations the ability to better synchronize supply and demand by detecting demand signals?
• What defines Traditional Basic Input Costs?
• Inbound logistics is best described as which activity?
• What is the role of capacity in a supply chain network design?
• Air Freight Forwarders: Which statement is true?
• What proportion of global movement is handled by ocean freight?
• Which supply chain function is described as delivering the right product, at the right time, in the right quantity, at the right cost, to the right destination?
• Which elements are included in Total Cost of Ownership (TCO)?
• Which item is NOT listed as a key component of total landed costs?
• The bullwhip effect describes the amplification of order variability up the supply chain due to forecasting.
• Which item procurement matrix component corresponds to high risk and high value?
• EOQ and its primary assumptions.
• Which of the following is a KPI in SCM?
• Explain the bullwhip effect and one mitigation tactic.
• Service level and how is it measured?
• What is the role of information technology in supply chain management?
• Buy-side system example
• What term describes the risk of optimizing a single component of the supply chain at the expense of overall system performance?
• What is sustainability in SCM and typical metrics?
• Lean thinking in supply chain management emphasizes eliminating waste. Which of the following lists are typical Lean tools?
• Which statement best defines a Warehouse Management System (WMS) and its key functions?
• If DIOH is approximately 61 days, what is the approximate inventory turnover?
• What is the S&OP process and what are its main steps?
• What is VMI and its risk/benefits?
• Which statement best describes the core idea of inventory pooling?
• In forecasting, MAE and MAPE stand for what?
• What is a SKU and why is it important?
• Which statement best describes omnichannel fulfillment?
• A high service level in logistics primarily indicates which of the following?
• Under FOB origin, when does the title transfer?
• Which of the following is NOT a typical Warehouse Management System (WMS) function?
• What is the difference between capacity planning and demand planning?
• What is a service level agreement (SLA) in logistics?
• Which statement correctly describes FOB (Free On Board) Incoterm?
• Which of the following is a disadvantage of e-sourcing and e-procurement?
• Which statement best describes the role of foreign freight forwarders?
• Which statement best describes what higher inventory turnover indicates?
• Safety stock is primarily used to mitigate which risks?
• Which statement describes capacity planning?
• NAFTA affects supply chain management by requiring redesign of which elements to operate borderless logistics?
• In the price measurement hierarchy, which level emphasizes the lowest total cost to the firm?
• What is a critical path in project management?
• Supplier relation costs refer to which of the following?
• Which statement differentiates safety stock from cycle stock?
• Which metric expresses forecast error as a percentage of actual demand?
• Which describes Make-to-Stock production?
• Which purchasing activity corresponds to a long-term investment such as an airplane?
• What causes inventory duplication in the supply chain?
• In the price measurement hierarchy, which level is described as delivering the highest total value to the ultimate customer?
• During the 1800-2000 era of globalization, globalization was driven primarily by which actors?
• Online trading community example
• Lead time variability refers to what, and what are its consequences?
• Which statement defines cycle stock in inventory management?
• Define total cost of ownership in procurement.
• What is the purpose of a bill of lading?
• What is the primary purpose of an MRP system?
• Fill rate refers to what metric?
• What is safety stock and why is it needed?
• What is the difference between a stockout and a backorder?
• Which statement best describes the difference between capacity planning and material requirements planning (MRP)?
• Which statement best describes Total Cost of Ownership (TCO) in supplier selection?
• What is a major advantage of air freight?
• Which is NOT listed as a source of price in procurement decisions?
• What is the difference between service level and fill rate?
• Define e-sourcing and e-procurement.
• Quality costs include which of the following?
• Which of the following is the first step in the supplier screening process?
• What are the objectives of supply chain management?
• What is the item procurement matrix?
• In the 1400-1800 era of globalization, what was the primary driving force?
• Which is a major ocean service characterized by scheduled services on regular routes?
• What does OTIF stand for, and what two performance components does it combine?
• A shipment can be bonded to minimize delay and paperwork, meaning you seal the trailer until it reaches its destination. This describes what practice?
• Which elements are part of a supply chain network design and what are typical trade-offs?
• What is capacity planning?
• Which storage facility is for temporary storage while goods await the next portion of the journey?
• What is the land bridge in global logistics?
• In ABC analysis, which category has high annual consumption value?
• Which is NOT a component of lead time?
• What does inventory positioning refer to in supply chain design?
• Explain the concept of total landed cost.
• Which forecasting method is typically used for complex patterns with seasonality and trends?
• How are scorecards used in performance management compared to individual metrics?
• What is the primary role of analytics in supply chain management?
• What is the primary role of a demand planner?
• What is SCOR?
• Landed costs are best described as:
• Which components constitute a perfect order?
• What is the purpose of reverse logistics?
• Which flow consists of credit terms, payment schedules, and consignment and title ownership arrangements?
• In the price measurement hierarchy, which level is associated with the lowest base or unit cost?
• Cross-docking is most appropriate when which condition exists?
• Define reorder point and provide the formula under constant demand and lead time.
• Which statement about CIF Incoterm is true?
• What are MRO items?
• Which global transportation option is described as the most pervasive?
• What is the primary objective of supply chain management (SCM), and how does it differ from logistics?
• What does channel coordination refer to in supply chain management?
• What is a Bill of Materials (BOM) and how does it relate to Material Requirements Planning (MRP)?
• What is the world's busiest container trade lane?
• Which of the following is NOT one of the three e-commerce models?
• Which of the following is named as a major port in the world?
• Six Sigma is a data-driven methodology used to reduce defects and process variation. Which framework does it employ?
• What does DMAIC stand for in Six Sigma?
• What is vendor-managed inventory (VMI)?
• Which statement best describes cycle stock?
• Lean thinking in logistics aims to:
• Which statement best describes the objective of Supply Chain Management?
• Explain modal split in transportation.
• What can serve as a substitute for inventory by reducing uncertainty if shared properly?
• Which statements describe the importance of ports?