Supply Chain Management Midterm Exam Questions Jun 2026

A company struggles with high inventory costs for colored t-shirts. The solution is manufacturing white t-shirts and dyeing them after demand is known. (Tests your knowledge of risk pooling and postponement). 5. Proven Study and Exam Strategies

Answer: C (Order processing fees are part of ordering/setup costs).

Explain the differences between single, dual, and multiple sourcing. Under what conditions is "sole sourcing" necessary? [20].

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

Calculate the required safety stock and determine the Reorder Point (ROP). Step-by-Step Solution Identify variables: Average daily demand ( ) = 50 units Standard deviation of daily demand ( σdsigma sub d ) = 8 units Lead time ( ) = 9 days Calculate standard deviation of demand during lead time ( σLsigma sub cap L ): supply chain management midterm exam questions

Using a 3-period Moving Average, forecast demand for Month 6 based on the following data: Month 3 (200), Month 4 (220), Month 5 (210). Calculate the Mean Absolute Deviation (MAD) for the forecast to determine its accuracy.

Station B (6 min/unit) is the bottleneck because it has the longest processing time. Answer B: Throughput = 60 minutes / 6 minutes per unit = 10 units per hour. Answer C: Adding a second worker at Station B cuts its effective processing time to 3 min/unit (assuming perfect split). Now, Station C (5 min/unit) becomes the new bottleneck. Throughput rises to 12 units per hour (60/5).

"Compare moving average, exponential smoothing, and trend projection methods. When is each appropriate?"

Allocating market demand to specific facilities while minimizing fixed and variable costs. A company struggles with high inventory costs for

"Calculate the Cash-to-Cash Cycle Time given the following data: Days Inventory Outstanding (DIO), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO). Interpret the result." Formula: Cash-to-Cash Cycle = DIO + DSO - DPO

Unpredictable demand, short product life cycles, high profit margins, and high customization or variety.

Know that procurement is the process of getting the goods, while sourcing is the strategic choice of who to get them from. 4. Midterm Study Tips

: Explain SCM in your own words and identify its primary goal, which is typically to improve customer satisfaction while reducing overall costs [5, 7, 30]. The "Three Flows" Under what conditions is "sole sourcing" necessary

Zara (Inditex). They design, produce, and ship new fashion trends to global stores within weeks, prioritizing speed over low manufacturing costs. Question 2: The Bullwhip Effect

: Define this phenomenon where demand variations are amplified as they move upstream (away from the customer) and discuss how collaborative planning can reduce its impact [19, 20]. Cycle View vs. Push/Pull : Explain the differences between a Push system (built on demand forecasts) and a Pull system (initiated by actual customer orders) [1, 10, 17]. Operational & Strategic Strategies

Moving Averages, Exponential Smoothing, and Trend-Corrected Exponential Smoothing (Holt’s Model).

Expected Demand During Lead Time=Daily Demand×LeadTime=50×9=450 unitsExpected Demand During Lead Time equals Daily Demand cross cap L e a d cap T i m e equals 50 cross 9 equals 450 units