True or false: The primary aim of supply chain management is to minimize cost at every step, even if doing so harms performance elsewhere in the supply chain.
1 Supply Chain Management Foundations and Strategy Online Quiz Questions
Use this free practice quiz with 20 questions to review 1 Supply Chain Management Foundations and Strategy, test your knowledge, and prepare for your next test or exam.
A company faces predictable demand and promises short customer lead times. It produces finished goods before orders arrive and holds them ready for shipment. Which operating model is it using?
- A
Make-to-order
- B
Make-to-stock
- C
Assemble-to-order
A firm keeps components in stock and completes the product only after receiving a customer order. This is .
What supply chain function focuses on the movement and storage of goods, services, and related information?
A business competes mainly on low prices. Which supply chain design choice best supports that priority?
- A
Place inventory close to every customer and rely on the fastest available transportation.
- B
Emphasize efficient sourcing, high asset utilization, and economical transportation.
- C
Delay all sourcing decisions until customer orders are received.
True or false: One organization may perform several supply chain roles, and different supply chains may share suppliers or service providers.
- A
True
- B
False
A retailer uses point-of-sale data to develop a , which can guide replenishment orders to a supplier.
Payments and credit arrangements move among a customer, a business, and its suppliers. Which supply chain flow do these arrangements represent?
A company wants to offer customized products and reduce finished-goods inventory, while accepting that customers may wait longer. Which operating model and trade-off best fit this goal?
- A
Make-to-order: it can reduce finished-goods inventory and enable customization, but customers may wait longer.
- B
Make-to-stock: it provides rapid delivery by keeping finished goods in stock, but increases the risk of excess or obsolete inventory.
- C
Assemble-to-order: it stocks components or subassemblies and completes the product after an order arrives, balancing variety and speed.
A company is considering assemble-to-order for a product line. Select all statements that accurately describe this model.
- A
It can balance product variety and speed.
- B
It eliminates the need to coordinate assembly.
- C
It depends on having dependable components available.
- D
It requires every finished product to be made before any order arrives.
A manager wants performance measures that reflect both customer service and the resources committed to operations. Which measurement approach is best aligned with that goal?
- A
Track cost alone because customer outcomes follow automatically from lower costs.
- B
Track inventory alone because it captures every service and financial outcome.
- C
Track order fulfillment time alongside cost, inventory, capacity use, and cash tied up in operations.
A company wants to offer several customized product configurations without holding large quantities of every finished version. Recommend a suitable operating approach and explain how it could support customization, what it requires operationally, and at least one trade-off managers should consider.
A product experiences frequent changes in demand, so the company wants its supply chain practices to emphasize responsiveness. Which approach best fits that priority?
- A
Lean
- B
Agile
- C
Make-to-stock
True or false: One organization in a supply chain may perform several roles.
- A
True
- B
False
A retailer uses point-of-sale data to update its demand forecast and guide replenishment orders. Which supply chain flow does this data primarily represent?
- A
Product and service flow
- B
Information flow
- C
Financial flow
- D
Returns flow
What supply chain activity estimates customer demand to help guide decisions such as sourcing and production?
Which statement best distinguishes logistics from supply chain management?
- A
Logistics is broader because it coordinates every internal function and external partner.
- B
Supply chain management is limited to transportation and warehousing.
- C
Logistics focuses on movement and storage, while supply chain management has a broader coordinating role.
- D
Logistics and supply chain management are interchangeable terms for procurement.
A company faces predictable demand and promises short customer lead times. Which operating model directly supports rapid delivery by holding finished goods in advance?
- A
Make-to-stock
- B
Make-to-order
- C
Assemble-to-order
- D
Delayed sourcing
What supply chain capability can be improved by preparing alternative sources, flexible capacity, or buffers for disruptions?
A manufacturer serves two markets: one values predictable availability of standard products, while the other values flexibility as requirements change. Which conclusions about the manufacturer’s operating model are supported? Select all correct answers.
- A
Use different operating approaches for different products or markets when their customer priorities differ.
- B
Clarify each market’s priorities and design processes and resources to support them.
- C
Adopt a competitor’s operating model regardless of whether it supports the business’s own objectives.
- D
Let each department choose its operating approach independently, without coordinating across the organization.