professional) EXAM ACTUAL QUESTIONS
AND CORRECT ANSWERS
Supply Chain Design - Correct answers✔✔The determination of how to structure a supply chain.
Design decisions include the selection of partners, the location of capacity of warehouse and
production facilities, the products, the modes of transportation, and supporting information, and
supporting information systems.
Supply chains should be configured to: (C&C) - Correct answers✔✔Reflect customers' needs as
well as trading partners' capabilities
The four basic flows in supply chain: - Correct answers✔✔Flow of information, the primary
product flow, the primary flow of cash, and the reverse flow of products.
Sourcing - Correct answers✔✔"The process of identifying a company that provides a needed
good or service."
Supply chain network configuration concerns: - Correct answers✔✔Suppliers, production
factories, distribution centers, customers' needs and trading partners' capacities
The optimal network configuration needs to consider the following variables: - Correct
answers✔✔Location of plants and production capacities for each product
Number, location, capacity, and capabilities of warehouses
Transportation between all facilities
,Transportation costs are a function of several variables, including: - Correct answers✔✔Total
distance between production facilities, warehouses, retail outlets, or customers; bulk discounts
for transport; and types of transportation required.
Infrastructure considerations for transportation - Correct answers✔✔Condition and capacity of
port facilities, airports, and roads, and rail
Responsiveness - Correct answers✔✔Being responsive to changing customer requirements.
Supply chain agility is measured in SCOR using metrics for: - Correct answers✔✔Flexibility
and adaptability, measure an organizations ability to ramp up or down in production volume
without a major impact on cost or organizational disruption.
The variables that differentiate efficient and responsive supply chains are: - Correct
answers✔✔Inventory volume and demand uncertainty
Efficiency-focused supply chain attributes - Correct answers✔✔Customer demand is stable
Forecasting error levels are manageable
Long product life cycle
Infrequent product introductions
Limited product variety
Responsive supply chain attributes - Correct answers✔✔Customer demand is not stable
Forecasting error levels can be significant
Real-time systems
short product lifecycles
, Multiple warehouses
Maintain extra or redundant capacity
Third party transportation
Suppliers have a high degree of Agility
Response-focused supply chain: capacity cushion - Correct answers✔✔Extra capacity that is
added to a system after capacity for expected demand is calculated (Safety capacity/ Protective
capacity)
Responsive production system (Push or Pull) - Correct answers✔✔Pull (when a customer order
pulls production of the final product
Level of service - Correct answers✔✔a measure (usually expressed as a percentage) of satisfying
demand through inventory or by the current production schedule in time to satisfy the customers'
requested delivery dates and quantities
Make-to-stock manufacturing strategy - Correct answers✔✔Goods are produced and held in
warehouse/retail locations before customer orders are placed
Efficiency supply chain (High or Low volume/ low demand uncertainty)
Make-to-order manufacturing strategy - Correct answers✔✔Goods are manufactured only after
customer orders are placed
Responsive supply chain (Low Volume/ High demand uncertainty)
Assemble-to-order manufacturing strategy - Correct answers✔✔Product components or modules
are produced based on forecasts and are assembled when customer orders are placed