SCM 300 Exam 2: Global Supply Operations
Questions & Answers | Grade A | 100% Correct
1. Which of the following describes the ‘Bullwhip Effect’?
A. The reduction of inventory as it moves down the supply chain.
B. The physical movement of goods from a warehouse to a store.
C. The increase in manufacturing speed due to automation.
D. The distortion of demand signals as they move up the supply chain.
Answer: D
Explanation: The Bullwhip Effect refers to the phenomenon where small fluctuations in
demand at the retail level cause progressively larger fluctuations at the wholesale,
distributor, and manufacturer levels.
2. In process management, what is a ‘bottleneck’?
A. The stage with the highest capacity.
B. The final stage of a production line.
C. The stage that requires the most expensive labor.
D. The stage with the lowest capacity that limits total output.
Answer: D
Explanation: A bottleneck is the resource or stage in a process that has the lowest
capacity, thereby determining the maximum output of the entire system.
,3. Which quality tool is used to identify the ‘vital few’ problems versus the
‘trivial many’?
A. Fishbone Diagram
B. Control Chart
C. Pareto Analysis
D. Scatter Diagram
Answer: C
Explanation: Pareto Analysis follows the 80/20 rule, suggesting that 80% of problems are
often caused by 20% of the causes, helping managers prioritize efforts.
4. What does ‘Cycle Time’ represent in a business process?
A. The time between the completion of successive units.
B. The total time a worker spends on a shift.
C. The time it takes to transport goods to a customer.
D. The amount of time a machine is broken down.
Answer: A
Explanation: Cycle time is the pace at which a process completes a unit of work. It is the
reciprocal of the output rate.
5. Which Six Sigma phase focuses on identifying the root causes of defects?
A. Define
B. Analyze
C. Measure
D. Improve
Answer: B
Explanation: In the DMAIC (Define, Measure, Analyze, Improve, Control) framework, the
Analyze phase is where data is studied to find the underlying causes of variation.
, 6. In project management, what is ‘Slack’?
A. The time an activity can be delayed without delaying the project.
B. The total duration of the critical path.
C. The cost overrun of a specific task.
D. The number of resources assigned to a non-critical task.
Answer: A
Explanation: Slack (or float) is the amount of time that a task in a project network can be
delayed without causing a delay to subsequent tasks or the project completion date.
7. What is the primary goal of Lean Manufacturing?
A. To maximize the amount of inventory held.
B. To eliminate waste and non-value-added activities.
C. To increase the number of suppliers.
D. To reduce the complexity of machinery.
Answer: B
Explanation: Lean focuses on creating value for the customer by identifying and
eliminating anything that does not add value to the product or service.
8. Which Incoterm implies the seller has the maximum responsibility for
delivery?
A. EXW (Ex Works)
B. FOB (Free on Board)
C. DDP (Delivered Duty Paid)
D. CIF (Cost, Insurance, and Freight)
Answer: C
Explanation: DDP requires the seller to handle all transportation costs, risks, and customs
duties until the goods are delivered to the buyer’s location.
Questions & Answers | Grade A | 100% Correct
1. Which of the following describes the ‘Bullwhip Effect’?
A. The reduction of inventory as it moves down the supply chain.
B. The physical movement of goods from a warehouse to a store.
C. The increase in manufacturing speed due to automation.
D. The distortion of demand signals as they move up the supply chain.
Answer: D
Explanation: The Bullwhip Effect refers to the phenomenon where small fluctuations in
demand at the retail level cause progressively larger fluctuations at the wholesale,
distributor, and manufacturer levels.
2. In process management, what is a ‘bottleneck’?
A. The stage with the highest capacity.
B. The final stage of a production line.
C. The stage that requires the most expensive labor.
D. The stage with the lowest capacity that limits total output.
Answer: D
Explanation: A bottleneck is the resource or stage in a process that has the lowest
capacity, thereby determining the maximum output of the entire system.
,3. Which quality tool is used to identify the ‘vital few’ problems versus the
‘trivial many’?
A. Fishbone Diagram
B. Control Chart
C. Pareto Analysis
D. Scatter Diagram
Answer: C
Explanation: Pareto Analysis follows the 80/20 rule, suggesting that 80% of problems are
often caused by 20% of the causes, helping managers prioritize efforts.
4. What does ‘Cycle Time’ represent in a business process?
A. The time between the completion of successive units.
B. The total time a worker spends on a shift.
C. The time it takes to transport goods to a customer.
D. The amount of time a machine is broken down.
Answer: A
Explanation: Cycle time is the pace at which a process completes a unit of work. It is the
reciprocal of the output rate.
5. Which Six Sigma phase focuses on identifying the root causes of defects?
A. Define
B. Analyze
C. Measure
D. Improve
Answer: B
Explanation: In the DMAIC (Define, Measure, Analyze, Improve, Control) framework, the
Analyze phase is where data is studied to find the underlying causes of variation.
, 6. In project management, what is ‘Slack’?
A. The time an activity can be delayed without delaying the project.
B. The total duration of the critical path.
C. The cost overrun of a specific task.
D. The number of resources assigned to a non-critical task.
Answer: A
Explanation: Slack (or float) is the amount of time that a task in a project network can be
delayed without causing a delay to subsequent tasks or the project completion date.
7. What is the primary goal of Lean Manufacturing?
A. To maximize the amount of inventory held.
B. To eliminate waste and non-value-added activities.
C. To increase the number of suppliers.
D. To reduce the complexity of machinery.
Answer: B
Explanation: Lean focuses on creating value for the customer by identifying and
eliminating anything that does not add value to the product or service.
8. Which Incoterm implies the seller has the maximum responsibility for
delivery?
A. EXW (Ex Works)
B. FOB (Free on Board)
C. DDP (Delivered Duty Paid)
D. CIF (Cost, Insurance, and Freight)
Answer: C
Explanation: DDP requires the seller to handle all transportation costs, risks, and customs
duties until the goods are delivered to the buyer’s location.
