Supply Chain Management Midterm Exam Questions

The bullwhip effect occurs when small fluctuations in demand at the retail level cause progressively larger fluctuations upstream (wholesaler, distributor, manufacturer). Order batching, price fluctuations, and lack of information sharing are the main drivers.

In 2021–2022, global supply chains faced severe disruptions (e.g., container shortages, port closures, semiconductor crisis). Explain two root causes from a supply chain design perspective and recommend two strategies companies can adopt to build more resilient supply chains.

To succeed on your SCM midterm, memorization alone will not suffice. Use these steps to guide your study routine:

| Concept | Formula | When to use | | :--- | :--- | :--- | | | ( \sqrt(2DS)/H ) | Balancing order cost vs. holding cost | | ROP (Variable demand) | ( d \times L + (Z \times \sigma_LTD) ) | When to reorder | | Critical Ratio | ( Cu / (Cu + Co) ) | Perishable goods / One-time buys | | Utilization | Flow rate / Capacity | Finding bottlenecks | | Little’s Law | Inventory = Throughput x Flow time | Linking time and quantity | supply chain management midterm exam questions

Applying the Newsvendor Model to optimize single-period inventory under seasonal demand. 4. Network Design and Logistics

[ 1. Strategic Frameworks ] │ ┌───────────────────────┴───────────────────────┐ ▼ ▼ [ 2. Demand & Inventory ] [ 3. Sourcing & Logistics ] │ │ └───────────────────────┬───────────────────────┘ ▼ [ 4. Integration & Metrics ] 1. Strategic Frameworks

Define the Bullwhip Effect. Identify three distinct operational causes and propose one specific mitigation strategy for each. The bullwhip effect occurs when small fluctuations in

Total landed cost typically includes: A) Manufacturing cost only B) Transportation, tariffs, and inventory carrying costs C) Marketing and sales commissions D) Overhead but not duties

The Triple Bottom Line evaluates supply chain performance across three dimensions: Profit (economic viability – e.g., cost reduction), People (social responsibility – e.g., fair labor practices), and Planet (environmental impact – e.g., carbon footprint). A sustainable SCM strategy optimizes all three, not just profit.

Identify two primary causes of the Bullwhip Effect and provide a specific mitigation strategy for each. Explain two root causes from a supply chain

Sourcing decisions dictate who manufactures components, while sales and operations planning ensures the company has the capacity to fulfill incoming orders. Core Concepts to Review

: Discuss Michael Porter's concept of the value chain and how internal business functions create value.

Compare Responsive vs. Efficient Supply Chains: When would you use a responsive chain (e.g., high-fashion) versus an efficient one (e.g., functional commodities like salt)?