OSC Practice Test 3 Exam Questions
With Complete Solutions
/.The multiplicative form of the systematic component of demand is shown as - Answer-
✅level × trend × seasonal factor.
/.Based on the Accenture survey on sources of risk that affect global supply chain
performance, which of the following was found to have affected the highest percentage
of supply chains? - Answer-✅volatility of fuel prices
/.What rate of return results in a present value of $432 for $250 received one year from
now and another $250 received two years from now? - Answer-✅10.32%
/.A negative NPV (net present value) for an option indicates that the option will -
Answer-✅lose money for the supply chain.
/.If price and demand do vary over time in a global network, - Answer-✅flexible
production capacity can be reconfigured to maximize profits in the new environment.
/.Which of the following uses transportation to minimize the total cost (transportation,
inventory, information, and facility) while providing an appropriate level of
responsiveness to the customer? - Answer-✅The shipper
/.When infrastructure is publicly owned, it is important to price usage to reflect - Answer-
✅the marginal impact on the cost to society.
/.Serving a medium density of customers at a short distance is best done using -
Answer-✅third party milk runs.
/.The competent supply chain manager decided to aggregate all inventories and as
required, use fast mode of transportation for filling customer orders of his - Answer-
✅high-value and low-demand product.
/.Inexpensive and inflexible transportation modes tend to - Answer-✅perform well when
everything goes as planned.
/.One of the characteristics of forecasts is - Answer-✅aggregate forecasts are usually
more accurate than disaggregate forecasts.
/.Which forecasting methods are the simplest to implement and can serve as a good
starting point for a demand forecast? - Answer-✅Time series forecasting methods
, /.Forecasting methods that use historical demand to make a forecast are known as -
Answer-✅time series forecasting methods
/.Scenario 7.2 — Gulab GreatnessHistorical demand for gulab jamun from a sweet stall
on Commercial Road is as displayed in the table. Use a simple moving average of three
periods to forecast the demand for October. What is the forecast? - Answer-✅70,252
/.Scenario 7.3 The Entrepreneurship professor had a habit of oversupplying extra credit
opportunities for his class each semester and his colleagues delighted in trying to
forecast his class enrollment from one semester to the next. The forecasts for one
colleague, along with the actual class enrollment, appear in the table. What is the
largest value for the tracking signal (either under or overforecasting)? - Answer-✅2.623
/.Which technique can be used to lower shipping costs if several components are being
sourced globally from different locations? - Answer-✅Use of supplier hubs
/.The tailored strategy "Focus on low-cost, decentralized capacity for predictable
demand" follows which risk mitigation strategy? - Answer-✅Increase capacity.
/.Uncertainty of demand and price - Answer-✅drives the value of building flexible
production capacity at a plant.
/.The ________ is the party that requires the movement of the product between two
points in the supply chain. - Answer-✅shipper
/.Temporal aggregation - Answer-✅decreases transportation costs because of
economies of scale.
/.It is best to disaggregate all inventories and use an inexpensive mode of transportation
for replenishment when you have a - Answer-✅low-value product and high demand.
/.The competent supply chain manager decided to aggregate all inventories and as
required, use fast mode of transportation for filling customer orders of his - Answer-
✅high-value and low-demand product.
/.Ignoring uncertainty in demand encourages a greater use of - Answer-✅inexpensive
and inflexible transportation modes.
/.Mature products with stable demand - Answer-✅are usually easiest to forecast.
/.________ forecasting methods assume that the demand forecast is highly correlated
with certain factors in the environment (the state of the economy, interest rates, etc.). -
Answer-✅Causal
With Complete Solutions
/.The multiplicative form of the systematic component of demand is shown as - Answer-
✅level × trend × seasonal factor.
/.Based on the Accenture survey on sources of risk that affect global supply chain
performance, which of the following was found to have affected the highest percentage
of supply chains? - Answer-✅volatility of fuel prices
/.What rate of return results in a present value of $432 for $250 received one year from
now and another $250 received two years from now? - Answer-✅10.32%
/.A negative NPV (net present value) for an option indicates that the option will -
Answer-✅lose money for the supply chain.
/.If price and demand do vary over time in a global network, - Answer-✅flexible
production capacity can be reconfigured to maximize profits in the new environment.
/.Which of the following uses transportation to minimize the total cost (transportation,
inventory, information, and facility) while providing an appropriate level of
responsiveness to the customer? - Answer-✅The shipper
/.When infrastructure is publicly owned, it is important to price usage to reflect - Answer-
✅the marginal impact on the cost to society.
/.Serving a medium density of customers at a short distance is best done using -
Answer-✅third party milk runs.
/.The competent supply chain manager decided to aggregate all inventories and as
required, use fast mode of transportation for filling customer orders of his - Answer-
✅high-value and low-demand product.
/.Inexpensive and inflexible transportation modes tend to - Answer-✅perform well when
everything goes as planned.
/.One of the characteristics of forecasts is - Answer-✅aggregate forecasts are usually
more accurate than disaggregate forecasts.
/.Which forecasting methods are the simplest to implement and can serve as a good
starting point for a demand forecast? - Answer-✅Time series forecasting methods
, /.Forecasting methods that use historical demand to make a forecast are known as -
Answer-✅time series forecasting methods
/.Scenario 7.2 — Gulab GreatnessHistorical demand for gulab jamun from a sweet stall
on Commercial Road is as displayed in the table. Use a simple moving average of three
periods to forecast the demand for October. What is the forecast? - Answer-✅70,252
/.Scenario 7.3 The Entrepreneurship professor had a habit of oversupplying extra credit
opportunities for his class each semester and his colleagues delighted in trying to
forecast his class enrollment from one semester to the next. The forecasts for one
colleague, along with the actual class enrollment, appear in the table. What is the
largest value for the tracking signal (either under or overforecasting)? - Answer-✅2.623
/.Which technique can be used to lower shipping costs if several components are being
sourced globally from different locations? - Answer-✅Use of supplier hubs
/.The tailored strategy "Focus on low-cost, decentralized capacity for predictable
demand" follows which risk mitigation strategy? - Answer-✅Increase capacity.
/.Uncertainty of demand and price - Answer-✅drives the value of building flexible
production capacity at a plant.
/.The ________ is the party that requires the movement of the product between two
points in the supply chain. - Answer-✅shipper
/.Temporal aggregation - Answer-✅decreases transportation costs because of
economies of scale.
/.It is best to disaggregate all inventories and use an inexpensive mode of transportation
for replenishment when you have a - Answer-✅low-value product and high demand.
/.The competent supply chain manager decided to aggregate all inventories and as
required, use fast mode of transportation for filling customer orders of his - Answer-
✅high-value and low-demand product.
/.Ignoring uncertainty in demand encourages a greater use of - Answer-✅inexpensive
and inflexible transportation modes.
/.Mature products with stable demand - Answer-✅are usually easiest to forecast.
/.________ forecasting methods assume that the demand forecast is highly correlated
with certain factors in the environment (the state of the economy, interest rates, etc.). -
Answer-✅Causal
