Taitt Supply Chain Management (SCM) Exam 1 Practice

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• Push or Make-to-stock is producing stock on the basis of anticipated demand.
• Why is data accuracy important in SCM analytics?
• What is the purpose of a Bill of Materials (BOM)?
• Which inventory category includes items that are being transformed into finished products but are not yet complete?
• What is the primary purpose of time fencing in master production scheduling?
• In the absence of any other information or visibility, individual supply chain participants can begin second-guessing what is happening with ordering patterns, and potentially start over-reacting. This is known as?
• Which qualitative forecasting model relies on the judgments of the most experienced individuals?
• Forecasting and Demand Planning is a subfunction of which foundation?
• What best defines capacity cushion?
• Which planning module is used to validate the master production schedule at a medium-range horizon before detailed MRP runs?
• Which planning level involves executive level actions such as facility construction and major equipment purchases?
• Which of the following lists the five models of Time Series?
• Which option represents a classic lean waste?
• Which statement correctly lists the three levels of internal inventory?
• Which of the following is NOT an EOQ assumption?
• Which element shows the quantity and timing of end items (the master production schedule)?
• Discrete available-to-promise is best described as which of the following?
• In the EOQ formula Q* = sqrt((2DS)/H), what does D stand for?
• Which set of factors is most commonly considered when selecting a transport mode?
• What are the main components of a transport cost model?
• Which of the following describes two common approaches to implementing ERP systems?
• Which statement is a function of inventory?
• Qualitative forecasting is based on
• The primary function of Distribution Requirements Planning is to determine the need to replenish finished goods inventory at branch warehouses. True or False?
• What is the role of forecasting in inventory control?
• Which of the following is a qualitative forecasting method?
• Which statement best describes a primary objective of dual sourcing?
• Which statement describes cycle counting?
• In the Plan-Source-Make-Deliver framework, which function handles order fulfilment and logistics?
• Which process brings all the demand and supply plans for the business together to provide management with strategic direction?
• How does lead time variability affect inventory planning?
• Which inventory category represents items that are partially completed and in production?
• Which of the following is a subfunction of Operations Management?
• What does MAPE measure?
• What are the two basic forecasting techniques?
• Which planning level is described as the mid level in the source material?
• Cycle time is defined as?
• What does ABC analysis classification typically categorize inventory by?
• Which term describes buffer stock used to cushion against demand fluctuations?
• Which of the following is considered a foundational element of SCM?
• Which statement best describes service level and fill rate?
• What best distinguishes periodic-review from continuous-review systems?
• Which module checks the feasibility of the master production schedule at a medium-range horizon?
• A type of inventory system that issues an order whenever a withdrawal is made from inventory is known as?
• Dependent Demand is defined as
• Which one of the following is NOT a type of qualitative forecasting?
• Which statement best describes safety stock?
• Which of the following is not typically considered a primary area within Logistics Management?
• Which system synchronizes the purchasing or materials procurement plans with the master production schedule?
• Which of the following is a type of inventory system used to categorize items by importance?
• Which statement describes the two models of Cause and Effect?
• Which statement correctly describes MAPE and RMSE and their interpretation?
• What does the acronym CPFR represent?
• Which of the following is NOT one of the five qualitative forecasting models?
• Which OTIF target is used as an example in practice?
• Which statement best describes Time Series models?
• Sales force estimation is which type of forecasting model?
• Supply Chain Planning is the element of supply chain management responsible for determining how best to satisfy the requirements created by the demand plan.
• Which Time Series component handles a trend?
• Service firms offer intangible products; they do not have a supply chain.
• Which MRP term represents a committed order awaiting delivery for a specific period?
• What is the purpose of vendor-managed inventory (VMI)?
• Which statement about push and pull replenishment is true?
• What is pipeline inventory?
• Which term is the extension of MRP II and includes DRP that determines replenishment needs for finished product inventory?
• What is the primary purpose of safety stock?
• When creating a quantitative forecast, data should be evaluated to detect for a repeating pattern of demand from year to year, or over some other time interval, with some periods of considerably higher demand than others. This is known as a?
• What best describes demand planning?
• In the EOQ model, the total cost to minimize consists of which two components?
• External inventory types include which of the following?
• What is the relationship between logistics management and supply chain management?
• The Bullwhip Effect describes amplification of order variability upstream in a supply chain.
• What is a capacity cushion?
• The Economic Order Quantity (EOQ) model is described as which of the following?
• Which of the following is NOT an EOQ assumption?
• Which description best matches Resource Requirement Planning (RRP)?
• What are the two main categories of quantitative forecasting?
• In Theory of Constraints, what best defines the bottleneck?
• Which metric measures the proportion of customer demand fulfilled from on-hand inventory?
• Which statement about RCCP is accurate?
• Which planning level is associated with the detailed planning process for components and parts to support the master production schedule?
• What is the primary function of inventory management?
• Pull or Make-to-order describes producing stock in response to actual demand.
• What is a common safety stock calculation approach?
• Which statement best describes the relation between Strategic Sourcing and Supply Management?
• Which term translates annual business, marketing plans, and demand forecasts into a production plan for a product family in a plant?
• What is the difference between agility and resilience in supply chains?
• Cause-and-Effect Models can have multiple independent variables.
• Which of the following is a common mitigation tactic for the bullwhip effect?
• Service Inventory refers to:
• Which statement describes Time Series forecasting methods within quantitative forecasting?
• What is Six Sigma's role in SCM?
• What do incoterms like EXW and DDP primarily define in cross-border shipments?
• In the Plan-Source-Make-Deliver framework, which function is responsible for acquiring materials?
• Which of the following is NOT one of the four Foundations of Supply Chain Management?
• What is demand shaping in SCM?
• In EOQ discussions, which term is used interchangeably with 'holding costs'?
• Which of the following is a primary area within Integration?
• Which system is an extension of MRP II and includes DRP, determining the need to replenish finished product inventory?
• What is the primary objective of supply chain management?
• Describe a basic risk management process in SCM.
• Just-in-Time (JIT) is primarily associated with which objective in SCM?
• Service Response Logistics is listed as a component within which SCM area?
• Why is cycle counting often preferred over annual stock takes?
• Delphi Method is characterized by
• Which term is the detailed disaggregation of the APP, listing the exact end items to be produced by a specific period?
• Which set lists the four main categories of inventory?
• Finished Goods are:
• SCM starts with understanding how the flow of goods and information occurs through the supply chain.
• Under what condition is MAPE undefined?
• The initial steps in SCM focus on understanding the flow of materials and information through the network.
• Which factor led manufacturers to adopt Supply Chain Management (SCM) and Just-in-Time (JIT) practices?
• In the Delphi Method, inputs are collected separately for what purpose?
• Personal Insight forecasting is based on the inside knowledge of
• Which description best matches the chase production strategy?
• Forecasts are more accurate the farther out into the future that you forecast.
• Which statement correctly compares cycle counting and annual inventory?
• Demand_____
• Capacity Planning is best described as?
• Organizations that choose to implement one single system with all desired applications from a single vendor is said to have chosen a:
• Distribution Requirements Planning (DRP) is a time-phased finished goods inventory replenishment plan in a distribution network, and it determines the need to replenish inventory at branch warehouses. True or False?
• The goal of supply chain planning is to balance supply and demand in a way that realizes the financial and service objectives of the company. True or False?
• Which term best describes inventory intended for a future event or defined period?
• The Chase Production Strategy relies on a constant output rate and capacity while varying inventory and backlog levels to handle the fluctuating demand pattern. True or False?
• Which metrics are used to measure forecast accuracy?
• What is dual sourcing and why use it?
• What is cycle time in operations management?
• Lead time consists of which components?
• Jury of Executive Opinion forecast is produced by
• How is MAPE calculated?
• Which description best defines perpetual inventory versus periodic inventory?
• Which demand type is directly related to the demand for other items or finished products?
• The Qualitative forecasting method is based on opinion and intuition.
• Which term refers to quantities of goods and materials that are held in stock, including raw materials, work-in-process, finished goods, and other supplies?
• What is a key activity to maintain data accuracy in SCM analytics?
• Seasonal Variation refers to patterns that repeat within a year with higher demand in some periods.
• Inventory costs which are independent of the output quantity are called?
• Which method calculates available-to-promise using the most immediate uncommitted quantities?
• How is MAD calculated?
• Which statement best describes cycle counting as a practice?
• The three basic production strategies for addressing the aggregate planning problem are the chase production strategy, the level production strategy, and the mixed production strategy. True or False?
• Which statement correctly contrasts Kanban and MRP?
• Which statement about Level production strategy is accurate?
• Which statement best describes make-to-stock production?
• Which engineering document shows an inclusive listing of all the component parts and assemblies making up the final product?
• The Economic Order Quantity (EOQ) is the optimal order size because it minimizes the annual total inventory cost.
• Which of the following is typically included in ordering costs?
• Which of the following is a foundation of supply chain management?
• The four broad categories of inventory are raw materials, work-in-process, MRO, and finished goods.
• What describes strategic stock?
• In a vendor-managed inventory arrangement, which statement is true?
• Which process brings together demand and supply plans across the business to enable strategic direction?
• Which of the following are types of external inventory?
• Successful modern SCM typically includes the practice of ?
• What is the primary goal of Sales and Operations Planning (S&OP)?
• Rough Cut Capacity Planning (RCCP) is described as?
• Forecasting
• Independent Demand is demand for an item that is directly related to other items or finished products, such as a component or material used in making a finished product.
• In MRP, which term refers to the discrete planning time horizon divided into equal intervals?
• Which forecasting approach uses mathematical models and historical data to make forecasts?
• Customer Survey is which forecasting model?
• Work-in-Process (WIP) is:
• What are the goals of Supply Chain Management?
• Which of the following correctly lists the four core functions of the Plan-Source-Make-Deliver framework?
• Which scenario best fits a make-to-stock strategy?
• What are the two common aggregate production planning strategies?
• Which statement best describes a time-series based forecasting method?
• Incoterms are used to clarify which party bears costs and risks in international shipments.
• Material Requirements Planning (MRP) is the system intended to develop long-range plans (>1 year) concerning product families. True or False?
• What is the purpose of Incoterms in international shipments?
• Raw materials are:
• The primary purpose of the basic economic order quantity model is
• Which system is a computer-based system that can create detailed production schedules using real-time data?
• What does MAD measure?
• Which of the following is a primary area within Logistics Management?
• Qualitative forecasting relies on which of the following?
• Which of the following is a qualitative forecasting method?
• Which capability does IoT enable in SCM?
• Which statement defines cycle stock?
• Which of the following is NOT a mode of transportation used in supply chain management?
• Define the total cost of ownership (TCO) in procurement.
• The top 2 primary functions of inventory are (1) To meet customer demand, and (2) To buffer against uncertainty in demand and/or supply.
• In a continuous-review inventory system, the reorder point (ROP) is equal to which of the following?
• An Enterprise Resource Planning (ERP) system is an information system that connects all functional areas and operations of an organization via a common software infrastructure and database, and in some cases suppliers and customers. True or False?
• Reverse logistics deals with?
• What role does IoT play in modern SCM?
• Time Series forecasting is based on which assumption?
• Which statement describes the mixed production strategy?
• Which business function provides a response to customer order inquiries based on resource availability, generating available quantities and delivery due dates?
• Which inventory category includes items used to support production but not part of finished goods?
• Which statement about the EOQ model is true?
• Which planning process translates annual business, marketing plans, and demand forecasts into a production plan for a product family in a plant?
• In capacity planning, CRP stands for Capacity Requirement Planning.
• Which of the following is a type of inventory system?
• What is a supplier scorecard and what metrics are common?
• Tracking signals are used to detect forecast bias.
• The goal of SCM is to increase customer service by increasing inventory and reducing costs.
• What is safety stock and why is it used?
• The Master Production Schedule specifies what is produced and when, and is typically derived from the aggregate plan. True or False?
• Which statement about inbound logistics is true?
• Which statement best describes Simple Regression within Cause and Effect models?
• Which function provides available quantities of the requested product and delivery due dates in response to customer inquiries?
• Under EXW terms, who bears export clearance and transportation from the seller's location?
• In a distribution network, which planning document is used to manage finished goods inventory at branch warehouses?
• Forecast
• Which of the following is a quantitative forecasting method?
• What are the three basic production strategies?
• Which statement is TRUE?
• Capacity Requirement Planning (CRP) is a short-range capacity planning module used to check the feasibility of the material requirements plan. True or False?
• The medium-range capacity planning technique used to check the feasibility of the Master Production Schedule (MPS) is called Rough-cut Capacity Planning (RCCP).
• ERP systems typically connect all functional areas and often suppliers and customers via common software and databases. True or False?
• Which statement best differentiates inbound logistics from outbound logistics?
• Which option is considered a foundational element of supply chain management?
• Which of the following is true about forecasting error metrics?
• Which of the following is a function describing the role of Supply Management?
• Which statement describes the level production strategy?
• Three broad categories of supply chain planning are:
• In a periodic-review inventory system, the order-up-to level S is used to cover demand during which period?
• Finished goods are inventory that is ready for sale. Which statement about finished goods is correct?
• Identify a lean waste.
• Maintenance, Repair, and Operating (MRO) items are:
• What framework should be used for make-or-buy decisions?
• Which description best fits Exponential Smoothing among Time Series models?
• Global sourcing vs nearshoring: what is a key difference?
• In MRP, which term represents the quantity that must be produced or procured to meet demand after subtracting on-hand inventory and scheduled receipts from gross requirements?
• Which of the following is NOT a common mode of transportation in the supply chain?
• Which practice was mentioned as being adopted alongside SCM in response to intense global competition?
• In the Plan-Source-Make-Deliver framework, what does the Plan function encompass?
• What does MSE represent?
• Which option represents a quantitative forecasting method?
• Independent Demand refers to demand for an item that is unrelated to the demand for other items.
• Which term represents the expected level of inventory after considering both on-hand inventory and planned receipts and demands?
• Which statement is NOT a function of inventory?
• Which category includes spare parts and consumables used in maintenance and operations?
• A reorder point is the inventory level that triggers a new order.
• What is obsolete inventory?
• What is a service level agreement (SLA) in supplier relationships?
• Which of the following is NOT an example of an ordering cost for products purchased from a supplier?