Frequently Repeated Questions [CSCA]

1) Sales order fulfillment allow customer to –

A. assign inventory based on priority level
B. attach and review service level during order entry
C. assign partial order quantitates based on customer service level agreements
D. All of above
2) Regarding purchased goods, goods used to support operation of a firm are referred to as
A. Dispersed goods

B. Divergent goods
C. Indirect goods
D. Randomized
3) Replenishment lead time, on-time performance, supply flexibility, supply quality, inbound transportation cost,
pricing terms, design collaboration capability and supplier viability are examples of
A. Potential supplier assessment factors
B. Mandatory supplier assessment factors

C. Exclusions from supplier assessment factors

D. None of above
4) When the disbursement of materials ,parts or finished goods exceeds the receipt
A. Then inventory equal to economic ordering quantity is created
B. Then inventory id depleted
C. Then inventory equal to master production schedule (MPS) is created
D. Then inventory is created.

5) Regarding purchased goods, the focus for components used to make finished goods should
A. Be on improving coordination and visibility with supplier
B. Be on decreasing the transaction for each other
C. A and B above
D. None of above
6) Which of the following describes the time required to purchase an item ?

A. The time between the recognition of a need and the availability of the item for production
B. Standard hours
C. The sum of order, wait, move, store and run times

D. None of above

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17. The bullwhip effect:

A. is an ineffective way to motivate warehouse employees

B. applies to rodeos and has nothing to do with supply chain management
C. refers to the “swaying” motion associated with triple trailers

D. refers to variability in demand orders among supply chain participants

7) Buyback contracts, revenue sharing contacts and quantity flexibility contracts are all examples of which type of
contract ? Product availability & supply chain profit
8) The time required to purchase ,produce or assemble an item is known as lead time

9) The wholesaler or manufacturer replenishes a retailer ,based on POS data at the retailer, or warehouse
withdrawals is known as CRP
10) The places in the supply chain network where product is stored, assembled or fabricates are known as Facility
11) All raw materials, WIP and finished good within a supply chain are known as Inventory

12) The manufacturing strategy referred to “Make to Stock” would be described as Push Process/Holding items in
stock for immediate delivery by minimizing delivery time

13) The advantage of a company has in attracting new customers and defending against the loss of current
customers to competitors is known as…… ? Competitive advantage
14) The supplier being responsible for all decisions regarding inventories of supplier product supplier products at
their customer’s location is known as….. Vendor Management Inventory
15) Regarding warehouses, the methodology utilized such that materials are moved directly from receiving to
shipping and not placed in storage in the warehouse is known as….. Distribution

16) The inventory held in case demand exceeds expectations in order to counter uncertainty is called…Safety
Inventory
17) Inventory ,over production, waiting time, movement ,poor processing, insufficient work methods and defects
are classified as waste under Lean
18) The desired probability of not running out of stock in any one ordering cycle is …Cycle Service Level

19) The lot size that minimizes total annual inventory holding and ordering set up costs is…..EOQ
20) A list of components, ingredients and materials needed to make a product is the……
21) Typical supply chain stages are…….. SMDRC
22) Forecasting is……art and science/less accurate/always wrong
23) This forecasting technique is used when no tend is involved and it is a series of means Moving Average
24) Supplier selection has become a much more important decision because …a company’s success demand on
supply chain partners
25) It was developed by Motorola and popularized by GE, term originally comes from statistics and if attained
result is 3.4 dpmo is a description of…. Six Sigma

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26) Pull production, efficient layout, standardized work, cross trained workforce, close supplier relationships and
continuous improvements are characteristics of ……. ? Lean Characteristics
27) Items such as “Disaggregation breaks the plan down into the greater detail” and “Disaggregation result is a
master production schedule” or “Decisions are made at a product family (ok SKU) level” are characteristics
of…….? Aggregation Planning
28) Which aggregate planning strategy maintains stable machine capability and workforce with a constant output
rate ? Level Strategy
29) General purpose equipment and skilled personnel ,high degree of product flexibility, typical high costs and low
equipment utilization and product flow may vary considerably making planning and scheduling a challenge are
characteristics of which type of manufacturing layout ? Product Layout
30) Which of the following are inventory holding costs ? Sum of cost of capital and variable cost ,Tax, insurance,
shrinkage

31) MRP is a computerized information system developed specifically to help manufactures manage dependent
inventory and schedule replenishment orders. Which of the following are inputs to it ? BOM, Inventory Data,
Lead time, Purchase Data
32) End items for a consumer are an example of what type of demands ? Independent Demand
33) Which of the forecasting techniques is thought to be somewhat cost effective and efficient and is thought of as a
good starting point ?Naive Approach
34) Regarding inventory amount and location if the cost is a strategic competitive priority in which manner it
should the firm act ? reduce inventory to make firm efficient

35) Regarding inventory amount and location if responsiveness is a strategic competitive priority in which manner
it should the firm act ? large inventory closer to customer
36) A structured improvement process which focuses teams to use data to confirm the nature and extent of the
problem, identify true causes of problems, find solutions that evidence shows are linked to the causes and
established procedures for maintaining the solution even after the project us done is the description of…DMAIC
37) Project approval by top management is needed, payback threshold is established, project approach is used and
a structured improvement process is followed is an overview description of which improvement program ? Six
Sigma

38) The use of computer systems to assist the creation, modification ,analysis, or optimizations of a design along
with the use of computer software to control machine tools and related machinery in the manufacturing of
work pieces describes…… ?CAD/CAM
39) The transportation participants that require the movement of the product between two points in the supply
chain are the…… ? Shipper
40) Those characteristics that persuade customers to choose your products and service over your competitors
….Order Winners
41) Those characteristics that get potential customers to consider buying your products and services.. Order
Qualifier
42) The spend more, are willing to pay higher prices ,refer new clients, are less costly to business with and it costs
five times more to find a new one than to keep an existing one happy describes…….. ? “Satisfaction is attitude,
loyality is behaviour “

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43) ABC analysis ….. ? inventory management policies focus on few critical parts not the many trivial ones
44) All customer orders that have not shipped, includes past due, current due and future order ……Backlog

45) A statistical Process Control Chart is/describes …….. ?quality and productivity indicator over time /displays
process performance and variation of process
46) Regarding MRP when determining the gross requirements the process continues through the entire BOM one
level at a time -often called the…….. ? Explosion
47) Tired used in the assembly of a car would be an example of what type of demand ?Dependent Demand

48) MATH : Number of tires needed to be used as replacement items for next year …..
49) MATH : Number of tires needed for the assembly of the next month’s quota of cars ……..
50) MATH : Forecasting Error Math
51) Definition/MCQ : Cross Docking, Carrier, Cycle inventory, Safety inventory, Seasonal Inventory, Cash to Cash
Cycle, MRP, EDI, Direct materials, Indirect Materials ,VMI, VSM, Lean, Stakeholders, TL, LTL ,Fishbone,
Sustainability, Pull, Push, Make to order, Make to Stock, Negative Capital, Working Capital, SKU, Backlog,
Backorder, Total Cost Ownership, Utilization, Order Owners, Freight Forwarder, Milk Run, Bullwhip Effect,
Dedicated Storage Approach ,Continuous Replenishment Policy, Inventory Turnover,

52) Level or Chase Strategy ? [P 34 workshop]

53) Manufacturing Strategies types…..? Make to stock, Make to order, Assemble to order, Mass production
54) Assumptions when EOQ is applicable…. ? [p-34 workshop]
55) Formula : Total Inventory Cost, [p-148 workshop]
56) Long term forecast are less accurate than short time forecast why ?
57) Which are the methods of forecasting ? [Qualitative ,Quantitative]

58) What are the things sales fulfilment process does allow ? [p-102 workshop]
59) For new Products and Current Technology we do Qualitative Analysis.
60) Sourcing Steps includes which of blows ? supplier scoring & assignment, Supplier selection and
negotiation(best value criterion), Design Collaboration(50-70& cost includes, result low overall cost,improved
quality, decrease time to market ) Sourcing Planning and analysis

61) What are the factors for supplier selection? [p-64]

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