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Quiz 16 Supply Chain Management Questions and Answers

Question No 1

1. Digital supply chains enable more than ____ higher operating margins.

  • 40%
  • 50%
  • 60%
  • 70%

Answer: 40%

Leaders in digital supply chain has seen more than 40% increased operating margins by understanding and predicting customer needs and accurately matching supply and inventories.

Question No 2

2. Supply Chain 4.0 includes _____________- for better customer satisfaction and higher performance.

  • Industry 4.0 innovations
  • Big Data
  • Blockchain
  • None of the above

Answer: Industry 4.0 innovations

Supply Chain 4.0, supply-chain management applies Industry 4.0 innovations—the Internet of Things, advanced robotics, analytics, and big data—to jump-start performance, and customer satisfaction.

Question No 3

3. How would organizations reset supply chains post COVID?

  • Rethink on distribution model
  • Accelerate mechanization
  • Prioritize risk mitigation over cost optimization
  • All of the above

Answer: All of the above

Organizations will have to rethink their supply chains post COVID with all of the above including adopting scenario planning and redesigning the organization itself

Question No 4

4. Which of the following is a third party logistics provider?

  • Amazon
  • Delivery
  • Uber
  • None of the above

Answer: Delivery

Delhivery is a third party logistics provider. 3PL (Third party logistics) forms a major backbone of supply chain.

Question No 5

5. Which of these are Inventory Management Techniques ?

  • Economic Order Quantity
  • Newsvendor Model
  • Wagner-Whitin
  • All of the above

Answer: All of the above

Kanban is a visual system. Economic Order Quantity is the simplest inventory model and assumes that demand, holding and order costs are deterministic and non-variable. The other two (Newsvendor Model and Wagner-Whitin) are variations on assumptions of the Economic Order Quantity Model

Question No 6

6. The phenomenon where small fluctuations in downstream processes adds up to cause large fluctuations in the upstream ones is called

  • Waterfall Effect
  • Whiplash Effect
  • BullWhip Effect
  • Cascade Effect

Answer: BullWhip Effect

This phenomenon is called Bullwhip Effect. It occurs when companies significantly cut or add inventories. Economists call it a bullwhip because even small increases in demand can cause a big snap in the need for parts and materials further down the supply chain.

Question No 7

7. Who introduced the Theory of Constraints?

  • Edward Deming
  • Jeff Liker
  • Eli Goldratt
  • Taichi Ohno

Answer: Eli Goldratt

The theory of constraints (TOC) is an overall management philosophy introduced by Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve their goals

Question No 8

8. In which system, a supplier/manufacturer/ distributor assumes the role of inventory planning for the customers?

  • Variable Material Inventory
  • Vendor Material Inventory
  • Vendor Managed Inventory
  • Valuable Material Inventory

Answer: Vendor Managed Inventory

Inventory which is planned, ordered, paid for and stored by the vendor is called Vendor Managed inventory. In VMI a manufacturer or distributor assumes the role of inventory planning for the customer

Question No 9

9. Flipkart is evaluating setting up large hubs across country to reduce its logistics costs. What are the favourable factors to support this decision?

  • Larger hubs at select regions can give logistics cost saving upto 20%
  • Since the inception of GST, there is no additional tax liability with this design
  • Both of Above
  • None of Above

Answer: Both of Above

Larger hubs at select regions can give logistics cost saving upto 20% and Since the inception of GST, there is no additional tax liability with this design both are the favourable factors to support this decision

Question No 10

10. India has around ______ million MT of agri-warehouse capacity (including cold storage)

  • 91
  • 160
  • 10
  • None of the above

Answer: 160

India har around 160 million MT of agri-warehousing capacity as announced by the Finance Minister in the Budget 2020