CLT CLT Supply Chain Management 1 — Questions and Answers
Question 1: What is the primary goal of supply chain management?
- To maximize warehouse space
- To deliver the right product to the right place at the right time at the right cost (Correct answer)
- To minimize the number of suppliers
- To eliminate all transportation costs
Correct answer: To deliver the right product to the right place at the right time at the right cost
Supply chain management coordinates the flow of goods, services, and information to deliver value to the end customer efficiently.
Question 2: Which term describes the practice of receiving goods only as they are needed to minimize inventory?
- Safety stock
- Just-in-Time (JIT) (Correct answer)
- Economic Order Quantity (EOQ)
- Batch processing
Correct answer: Just-in-Time (JIT)
Just-in-Time (JIT) inventory management minimizes inventory by receiving goods only as they are needed in the production process, reducing carrying costs.
Question 3: What is the 'bullwhip effect' in supply chain management?
- A technique for accelerating deliveries
- Amplification of demand fluctuations as they move upstream in the supply chain (Correct answer)
- A type of material handling equipment
- A shipping route optimization method
Correct answer: Amplification of demand fluctuations as they move upstream in the supply chain
The bullwhip effect occurs when small changes in consumer demand cause increasingly larger demand swings upstream in the supply chain.
Question 4: Which metric measures the percentage of customer orders fulfilled completely and correctly on the first shipment?
- Inventory turnover rate
- Order cycle time
- Perfect order rate (Correct answer)
- Fill rate
Correct answer: Perfect order rate
The perfect order rate measures the percentage of orders delivered on time, in full, without damage, and with accurate documentation.
Question 5: What does the acronym 'SKU' stand for in logistics?
- Stock Keeping Unit (Correct answer)
- Storage Key Utility
- Standard Keeping Utility
- System Key Unit
Correct answer: Stock Keeping Unit
A Stock Keeping Unit (SKU) is a unique identifier assigned to each distinct product to enable tracking and management in inventory systems.
Question 6: Which supply chain strategy involves producing goods only after receiving a confirmed customer order?
- Make-to-stock (MTS)
- Assemble-to-order (ATO)
- Make-to-order (MTO) (Correct answer)
- Engineer-to-order (ETO)
Correct answer: Make-to-order (MTO)
Make-to-order (MTO) is a manufacturing strategy where production begins only after a confirmed customer order is received, reducing finished goods inventory.
CLT CLT Supply Chain Management 1
What is the primary goal of supply chain management?