Supply Chain Leadership Final Exam – Agile
1
Strategy, Data-Driven Planning, Smart
Operations, and High-Impact Decision-
Making Evaluation for Future-Ready
Professionals 2025/2026
The following warehousing methodology is one in
which goods are not actually warehoused in a facility.
Instead, trucks from suppliers, each carrying a
different type of product, deliver goods to a facility.
There the inventory is broken into smaller lots and
quickly loaded onto storebound trucks that carry a
variety of products, some from each of the supplier
trucks.
A) Warehouse unit storage
B) Stock keeping unit (SKU) storage
C) Job lot storage
D) Cross-docking
D) Cross-docking
The average amount of inventory used to satisfy
demand between receipt of supplier shipments is
referred to as
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
, A) cycle inventory.
2
The inventory that is built up to counter predictable
variability in demand is called
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
B) seasonal inventory.
The inventory held in case demand exceeds
expectation in order to counter uncertainty is called
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
C) safety inventory.
The set of business processes required to purchase
goods and services is known as
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
D) sourcing.
Safety inventory is held because
A) the world is perfectly predictable.
B) demand is uncertain and may exceed expectations.
C) it involves making a trade-off between the costs of
having too much inventory and the costs of losing
, sales due to not having enough inventory.
3
D) it focuses on processes that are external to the
firm.
B) demand is uncertain and may exceed expectations.
Seasonal inventory should be used when
A) a company can rapidly change the rate of its
production system at a very low cost.
B) changing the rate of production is expensive (e.g.,
when workers must be hired or fired).
C) adjusting to a period of low demand without
incurring large costs.
the world is perfectly predictable
B) changing the rate of production is expensive (e.g.,
when workers must be hired or fired).
Which of the following are key components of
transportation decisions when designing and
operating a supply chain?
A) Software selection
B) Mode of transportation
C) Source selection
D) Warehouse selection
B) Mode of transportation
Although faster transportation is more expensive, a
firm receives which benefit as a result of the faster
transportation?
A) Fewer rejects
B) Higher profit
1
Strategy, Data-Driven Planning, Smart
Operations, and High-Impact Decision-
Making Evaluation for Future-Ready
Professionals 2025/2026
The following warehousing methodology is one in
which goods are not actually warehoused in a facility.
Instead, trucks from suppliers, each carrying a
different type of product, deliver goods to a facility.
There the inventory is broken into smaller lots and
quickly loaded onto storebound trucks that carry a
variety of products, some from each of the supplier
trucks.
A) Warehouse unit storage
B) Stock keeping unit (SKU) storage
C) Job lot storage
D) Cross-docking
D) Cross-docking
The average amount of inventory used to satisfy
demand between receipt of supplier shipments is
referred to as
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
, A) cycle inventory.
2
The inventory that is built up to counter predictable
variability in demand is called
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
B) seasonal inventory.
The inventory held in case demand exceeds
expectation in order to counter uncertainty is called
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
C) safety inventory.
The set of business processes required to purchase
goods and services is known as
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
D) sourcing.
Safety inventory is held because
A) the world is perfectly predictable.
B) demand is uncertain and may exceed expectations.
C) it involves making a trade-off between the costs of
having too much inventory and the costs of losing
, sales due to not having enough inventory.
3
D) it focuses on processes that are external to the
firm.
B) demand is uncertain and may exceed expectations.
Seasonal inventory should be used when
A) a company can rapidly change the rate of its
production system at a very low cost.
B) changing the rate of production is expensive (e.g.,
when workers must be hired or fired).
C) adjusting to a period of low demand without
incurring large costs.
the world is perfectly predictable
B) changing the rate of production is expensive (e.g.,
when workers must be hired or fired).
Which of the following are key components of
transportation decisions when designing and
operating a supply chain?
A) Software selection
B) Mode of transportation
C) Source selection
D) Warehouse selection
B) Mode of transportation
Although faster transportation is more expensive, a
firm receives which benefit as a result of the faster
transportation?
A) Fewer rejects
B) Higher profit
