SCM Chapter 1 Assessment

1.    Based on the order data provided, what is the item fill rate?

Categories                  Unit

Orders received           5,000

Units ordered              40,000

Lines ordered              12,000

Units delivered            37,800

Lines delivered complete 11,200

Orders delivered complete 4,600

a.    92.0% 

b.    93.3% 

c.     94.5% 

d.    97.5%

2.    What term best describes a costing methodology that is frequently used to develop estimates of customer profitability?

a.   Absorption-based costing 

b.  Activity-based costing 

c.  Allocation-based costing 

d.  Area-based costing

3.    Why do we use systems thinking in supply chain management (SCM)?

a.    An SCM’s performance depends on the performance and interrelationship of its parts

b.    Human bodies are complex biological systems

c.     It has been used since World War I

d.    Engineers find it useful

                                   

4.    What is a primary challenge that frequently occurs when adopting a centralization strategy for a global supply chain.

a.  Economies of scale can be difficult to achieve across the supply chain  

b.  Misalignment of information technology is likely to occur 

c.  Monitoring of partner performance can be difficult to coordinate 

d.  Standardized practices may not fit particular markets or regions

5.    Which of the following is not a way to reduce inventory levels?

a.    Supply-push replenishment

b.    Smaller, more frequent orders

c.     Use of premium transportation

d.    Elimination of slower moving products