BSIE Supply Chain Management & Logistics

Question 1

What is the 'bullwhip effect' in supply chain management?

Accepted Answer

Demand amplification as orders move upstream from retailer to manufacturer

Answer

Delays caused by long transportation routes

Answer

Overproduction due to excess machine capacity

Answer

Price fluctuations caused by currency exchange rates

Question 2

What does 'vendor-managed inventory' (VMI) mean?

Accepted Answer

The supplier monitors and replenishes the buyer's inventory based on agreed levels

Answer

The customer manages the supplier's warehouse

Answer

A shared warehouse operated by a third-party logistics provider

Answer

An automated system that orders parts without human approval

Question 3

Which inventory classification method categorizes items into A, B, and C groups based on annual dollar usage?

Accepted Answer

ABC analysis

Answer

XYZ analysis

Answer

JIT classification

Answer

SKU segmentation

Question 4

What is the primary purpose of a distribution requirements planning (DRP) system?

Accepted Answer

To coordinate replenishment of inventory across distribution network locations

Answer

To manage supplier payments

Answer

To optimize production scheduling on the shop floor

Answer

To calculate customer creditworthiness

Question 5

In supply chain terms, what is 'lead time'?

Accepted Answer

The total elapsed time from order placement to receipt of goods

Answer

Time for a customer to pay an invoice

Answer

The time required to manufacture one unit

Answer

The duration of a supplier contract

Question 6

Which logistics strategy positions inventory closer to customers to reduce delivery time?

Accepted Answer

Forward deployment (forward stocking locations)

Answer

Centralized warehousing

Answer

Cross-docking

Answer

Drop shipping