D471 Global Supply Chain Management - Set 2 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: In supply chain management, what does the term "capacity utilization" refer to?

The ratio of actual output to design capacity

The total production capability of a facility

The maximum number of facilities in a network

The ability to produce goods quickly

Question 2: A firm adopting a lag capacity strategy typically does so:

Before demand has increased

After demand has increased and is running at full capacity

Without considering market conditions

To maximize production efficiency

Question 3: What is a primary goal of the theory of constraints (TOC)?

To minimize costs across all operations

To identify and manage bottlenecks in a production process

To increase production volume without limits

To focus solely on supplier relationships

Question 4: In the context of supply chain management, which of the following best describes 'process selection'?

Choosing the type of suppliers for raw materials

Determining the most suitable method for producing a product

Identifying market demand for products

Setting the price points for goods

Question 5: What is a characteristic of a continuous flow process?

Produces a wide variety of products in low volume

High volume, no variation in product

Utilizes specialized machinery for customized products

Allows frequent changeovers between products

Question 6: Which inventory type is often described as 'work in process' (WIP)?

Finished goods ready for sale

Raw materials obtained for production

Partially finished products undergoing manufacturing

Goods that are stored for future use

Question 7: In supply chain terms, 'lead time' refers to:

The total time taken to produce goods

The time from order placement to order fulfillment

The time taken to receive raw materials

The duration of production runs

Question 8: What is 'aggregate planning' in the context of supply chain management?

A method for detailed production scheduling

A strategy for managing long-term supply chain decisions

An input to the Master Production Schedule (MPS)

A technique for analyzing customer demand patterns

Question 9: The term 'just-in-time' (JIT) in supply chain management signifies:

Keeping high inventory levels to meet demand

Producing items only as they are needed in the production process

Purchasing materials in bulk for discounts

Focusing on long-term production schedules

Question 10: Which of the following forecasting methods is based on past numerical data?

Qualitative methods

Time series analysis

Delphi technique

Test markets

Question 11: Which of the following is a major advantage of using a dual card kanban system over a single card system?

It simplifies the production process.

It reduces overall production costs.

It provides greater control over inventory and production processes.

It requires less documentation and planning.

Question 12: A significant characteristic of 'lean' strategies is:

Minimizing waste while maximizing productivity

Increasing production capacity at all costs

Expanding the number of facilities

Prioritizing customer service over cost efficiency

Question 13: Which method is utilized to gather information from various experts to develop a forecast?

Time series analysis

Survey method

Build-up method

Panel of experts (Delphi technique)

Question 14: What is the primary goal of a vendor-managed inventory (VMI) system?

To increase inventory holding costs

To allow the supplier to manage inventory levels at the customer's site

To reduce the need for suppliers

To enhance transportation efficiency

Question 15: What is the objective of the 'break-even analysis'?

To determine the production capacity required to meet demand

To calculate the point at which total revenue equals total costs

To analyze inventory turnover rates

To establish pricing strategies

Question 16: The 'ABC analysis' in inventory management is used to:

Classify inventory based on cost and usage

Track raw materials only

Measure supplier performance

Analyze customer satisfaction

Question 17: Which of the following describes a 'push strategy' in supply chain management?

Production is based on actual customer demand.

Products are produced based on forecasted demand.

Inventory levels are kept low.

Orders are fulfilled as they are received.

Question 18: A process characterized by the production of a variety of standardized products at relatively low volumes is known as:

Continuous flow

Job shop

Batch flow

Assembly line

Question 19: What is the function of 'cross-docking' in a supply chain?

To store products for extended periods

To combine shipments from different suppliers

To reconfigure shipments without long-term storage

To increase inventory holding

Question 20: What does 'variable costs' in a business context refer to?

Costs that remain constant regardless of production volume

Costs that change with the level of production or sales

Fixed costs associated with production facilities

Costs that can only be calculated annually

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