UNIVERSITY OF TECHNOLOGY, JAMAICA

COLLEGE: BUSINESS AND MANAGEMENT

SCHOOL: BUSINESS ADMINISTRATION

Mid Module Examination: Semester 1 AY 2022/23

Module Name: Supply Chain Management

Module Code: POM 4010

Date: October 2022

Theory/ Practical: Theory

Groups: BBA4

Duration: 1hours 10 mins.

Instructions:

Answer all questions.

All answers/responses should be written/shown in the answer sheet at the end of the exam

Answers should be uploaded to the relevant platform on completion.

The maximum amount of marks for this paper is 42.

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Multiple Choice

1. Which of the following is not a stage within a typical supply chain?

a. Customers
b. Retailers
c. Wholesalers/Distributors
d. Manufacturers
e. All of the above are stages within a typical supply chain.

2. Which of the following is not a stage within a typical supply chain?

a. Customers
b. Retailers
c. Wholesalers/Distributors
d. Merchandisers
e. Component/Raw material suppliers

3. The decision phases in a supply chain include

a. production scheduling.
b. customer relationship management.
c. supply chain operation.
d. supply chain orientation.
e. all of the above

4. The cycle view of a supply chain holds that

a. the processes in a supply chain are divided into 2 categories.
b. the processes in a supply chain are divided into a series of activities performed at the
interface between successive stages.
c. all processes in a supply chain are initiated in response to a customer order.
d. all processes in a supply chain are performed in anticipation of customer orders.
e. None of the above are true.

5. The push/pull view of a supply chain holds that

a. the processes in a supply chain are divided into a series of activities performed at the
interface between successive stages.
b. all processes in a supply chain are initiated in response to a customer order.
c. all response in a supply chain are performed in anticipation of customer orders.
d. the processes in a supply chain are divided into 2 categories depending on whether they
are initiated in response to or in anticipation of customer orders.
e. None of the above are true.

6. Which of the following is not a cycle in the supply chain cycle view?
a. Analysis cycle
b. Customer order cycle
c. Replenishment cycle

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 d. Manufacturing cycle
e. Procurement cycle

7. Which of the following is not a cycle in the supply chain cycle view?
a. Customer order cycle
b. Replenishment cycle
c. Manufacturing cycle
d. Procurement cycle
e. All of the above are part of the supply chain cycle view.

8. Customer order entry is

a. the point in time when the customer has access to choices and makes a decision regarding
a purchase.
b. the customer informing the retailer of what they want to purchase and the retailer
allocating product to the customer.
c. the process where product is prepared and sent to the customer.
d. the process where the customer receives the product and takes ownership.
e. none of the above

9. The objective of customer order entry is to

a. get the correct orders to customers by the promised due date at the lowest possible cost.
b. maintain a record of product receipt and complete payment.
c. maximize the conversion of customer arrivals to customer orders.
d. ensure that orders are quickly and accurately entered and communicated to other affected
supply chain processes.
e. none of the above

10. Customer order fulfillment refers to

a. the point in time when the customer has access to choices and makes a decision regarding
a purchase.
b. the customer informing the retailer of what they want to purchase and the retailer
allocating product to the customer.
c. the process where product is prepared and sent to the customer.
d. the process where the customer receives the product and takes ownership.
e. none of the above

11. Which of the following are key components of information that must be analyzed to increase
efficiency and improve effectiveness in a supply chain?

a. Software selection
b. Source selection
c. Warehouse selection
d. Forecasting and aggregate planning
e. none of the above

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 12. When all the different stages of a supply chain work toward the objective of maximizing total
supply chain profitability, rather than each stage devoting itself to its own profitability without
considering total supply chain profit, it is known as
a. supply chain coordination.
b. forecasting.
c. aggregate planning.
d. revenue management.
e. pricing.

13. The art and science of making projections about what future demand and conditions will be is
a. supply chain coordination.
b. forecasting.
c. aggregate planning.
d. revenue management.
e. pricing.

14. Transforming forecasts into plans of activity to satisfy the projected demand is known as
a. supply chain coordination.
b. forecasting.
c. aggregate planning.
d. revenue management.
e. pricing.

15. The process by which a firm decides how much to charge customers for its goods and services
is
a. supply chain coordination.
b. forecasting.
c. aggregate planning.
d. revenue management.
e. pricing.

16. One use of short-range forecasts is to determine

A) planning for new products
B) capital expenditures
C) research and development plans
D) facility location
E) job assignments

17) Forecasts are usually classified by time horizon into three categories
A) short-range, medium-range, and long-range
B) finance/accounting, marketing, and operations
C) strategic, tactical, and operational
D) exponential smoothing, regression, and time series

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E) departmental, organizational, and industria

18. The two general approaches to forecasting are

A) qualitative and quantitative
B) mathematical and statistical
C) judgmental and qualitative
D) historical and associative
E) judgmental and associative

19. Which of the following uses three types of participants: decision makers, staff personnel, and
respondents?
A) executive opinions
B) sales force composites
C) the Delphi method
D) associative models
E) time series analysis

20. The forecasting model that pools the opinions of a group of experts or managers is known as
the
A) expert judgment model
B) multiple regression model
C) jury of executive opinion model
D) consumer market survey model
E) management coefficients model

21. Which of the following is not a type of qualitative forecasting?

A) executive opinions
B) sales force composites
C) consumer surveys
D) the Delphi method
E) moving average

22) What is the approximate forecast for May using a four-month moving average?

Nov. Dec. Jan. Feb. Mar. April

39 36 40 42 48 46

A) 38
B) 42
C) 43
D) 44
E) 47

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23.Which time-series model below assumes that demand in the next period will be equal to the
most recent period's demand?
A) naive approach
B) moving average approach
C) weighted moving average approach
D) exponential smoothing approach
E) none of the above

24) Given an actual demand of 103, a previous forecast value of 99, and an alpha of .4, the
exponential smoothing forecast for the next period would be
A) 94.6
B) 97.4
C) 100.6
D) 101.6
E) 103.0

25) A forecast based on the previous forecast plus a percentage of the forecast error is a(n)
A) qualitative forecast
B) naive forecast
C) moving average forecast
D) weighted moving average forecast
E) exponentially smoothed forecast

26. Given an actual demand of 61, a previous forecast of 58, and an alpha of .3, what would the
forecast for the next period be using simple exponential smoothing?
A) 45.5
B) 57.1
C) 58.9
D) 61.0
E) 65.5

27. Which of the following values of alpha would cause exponential smoothing to respond the
most slowly to forecast errors?
A) 0.10
B) 0.20
C) 0.40
D) 0.80
E) cannot be determined

28. A forecasting method has produced the following over the past five months. What is the
mean absolute deviation?

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 Actual Forecast Error |Error|
10 11 -1 1
8 10 -2 2
10 8 2 2
6 6 0 0
9 8 1 1

A) -0.2
B) -1.0
C) 0.0
D) 1.2
E) 8.6

29. Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?
A) 2
B) 3
C) 4
D) 8
E) 16

30) The last four months of sales were 8, 10, 15, and 9 units. The last four forecasts were 5, 6,
11, and 12 units. The Mean Absolute Deviation (MAD) is
A) 2
B) -10
C) 3.5
D) 9
E) 10.5

31. Suppose that demand in period 1 was 7 units and the demand in period 2 was 9 units.
Assume that the forecast for period 1 was for 5 units. If the firm uses exponential smoothing with
an alpha value of .20, what should be the forecast for period 3? (Round answers to two decimal
places.)
A) 9.00
B) 3.72
C) 9.48
D) 5.00
E) 6.12

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32. __________ expresses the error as a percent of the actual values, undistorted by a single
large value.
A) MAD
B) MSE
C) MAPE
D) FIT
E) The smoothing constant

33. Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply
chain to
a exploit economies of scale and raise cost.
b. exploit economies of scale and lower cost.
c. exploit customers and lower cost.
d. exploit customers and raise cost.

e. none of the above

34 The quantity of inventory that a stage of the supply chain either produces or purchases at a
given time is

a an order.
b. a job.
c. a shipment.
d.a lot or batch.
e. none of the above

35. The average inventory in the supply chain due to either production or purchases in lot sizes that
are larger than those demanded by the customer is

a. annual inventory.
b. distribution inventory.
c. cycle inventory.
d. physical inventory.
e. b and c only

36. A graphical plot depicting the level of inventory over time is

a. an inventory graph.
b. a distribution inventory.
c. an inventory drawing.
d. an inventory profile.
e. an inventory picture.

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 37. When demand is steady, cycle inventory and lot size are related as
a. Cycle Inventory = Lot Size x 2.
b. Cycle Inventory = Q*2.
c. Cycle Inventory = Q/2.

d. Cycle Inventory = Lot Size = Q.

e. none of the above

SECTION B

Monthly demand Data and constraints obtained from a production facility which produces pairs of widgets are as
shown in the tables and list below.
a) Develop and complete level production plan table. (5 marks)

Note the plan should be developed and shown in the designated table1 below
List 1
Constraints
1 no overtime
2 no subcontracting
3 regular cost of production = $90/pair
4 backorder cost of production =$14/pair
5 hiring cost= $130/pair
6 production per employee =500pairs/month
7 firing cost = $500/pair
8 workforce= 32 workers prior to the start of the production cycle
9 overtime cost of production $80/pair
10 inventory carrying and holding cost $3/pair
11 hiring and firing is allowed
level production method
month demand Reg prdn inventory Back order # of Hired fired
workers
January 15000 16200 1200 - 32
February 14000 16200 3400 - 33
March 23000 16200 - 3400 33
April 13000 16200 200 33
May 16000 16200 - 33
totals 81000 81000 4800 3400 1
Cost/pair $90 $14 $130
7290000 47600 130
Grand 7337730
total

Table 1

END OF EXAMINATION
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ANSWER SHEET

MID MODULE EXAMINATION SEMESTER 1 AY 2223

NAME :

IDENTIFICATION NUMBER:

QUESTION NUMBER ANSWER

1 e
2 d
3 e
4 b
5 a
6 a
7 e
8 b
9 d
10 c
11 d
12 a
13 b
14 c
15 e
16 a
17 a
18 a
19 c
20 c
21 e
22 d
23 a
24 c
25 e
26 c

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27 a
28 d
29 c
30 c
31 e
32 b
33 a
34 d
35 c
36 d
37 b
SECTION B 7337730

TOTAL

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