MGMT4801

THE COUNCIL OF COMMUNITY COLLEGES OF JAMAICA

BACHELOR OF SCIENCE EXAMINATION

SEMESTER I – 2022 SEPTEMBER

PROGRAMMES: BUSINESS STUDIES

COURSE NAME: SUPPLY CHAIN MANAGEMENT

CODE: (MGMT4801)

YEAR GROUP:

DATE: THURSDAY, DECEMBER 15, 2022

TIME:

DURATION:

DUE DATE: FRIDAY, DECEMBER 16, 2022

EXAMINATION TYPE: COURSE WORK

INSTRUCTIONS:

ANSWER ALL QUESTIONS ON THE SUPPLIED SPREADSHEET.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.

Affix your signature below and return Section A to the invigilator before leaving the examination room. Failure
to do so may result in disqualification. _________________________________ Signature
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Instructions: On the computerized answer sheet provided, shade the letter that corresponds
with the most appropriate response for each of the following.

1. All of the following are part of the supply chain EXCEPT:

A. Customers
B. Stakeholders
C. wholesale/distributors
D. manufacturer

2. An important feature of supply chain management is its application of electronic commerce

technology that allows companies to share and operate systems for:

A. order processing, transportation scheduling, and inventory management

B. cost-effective flowing of raw materials
C. future purchasing of computer systems
D. future merger opportunities

3. The supply chain consists of all of the following EXCEPT:

A. Customers
B. Retailers
C. wholesalers/distributors
D. merchandisers

4. A supply chain is a sequence of firms that perform activities required to:

A. find products that are similar to facilitate

B. facilitate wholesalers’ inventory selections
C. create synergy in their training programs
D. create and deliver goods to consumers

5. To ensure that the supply chain is efficiently and effectively managed requires which of the
following decision phases?

i. Supply chain strategy/design

ii. Supply chain planning
iii. Supply chain operation

A. i only
B. i and ii only
C. ii and iii only
D. i, ii and iii

6. In the automotive industry, the supply chain manager:

i. translates customer requirements into actual orders

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ii. organizes storage and distribution

iii. arranges delivery dates

A. ii and iii only

B. i and ii only
C. i and iii only
D. i, ii and iii

7. The cycle view of a supply chain holds that:

A. the processes in a supply chain are divided into different 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 customer order
D. all processes in a supply chain are performed in anticipation of customer orders

8. It is estimated that the logistics costs of a new car are about:

A. 10-20%
B. 20-25%
C. 25-30%
D. 30-35%

9. Strategic fit is BEST defined as:

A. both the competitive and supply chain strategies have aligned goals
B. specifies the portfolio of a new product the company will try to develop
C. how the market will be segmented and how the product will be positioned
D. the nature of procurement of raw material

10. Which of the following is a CORRECT statement according to an effective supply chain
management?

i. Supply has to be matched with demand for effective management

ii. Large stock-outs can result in inventory waste
iii. Demand of customised products is unrelated to delivery status

A. ii and iii only

B. i and ii only
C. i and iii only
D. i, ii and iii

11. To achieve strategic fit involves which of the following steps?

i. Understanding the customer and supply chain uncertainty

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ii. Understanding the supply chain capabilities

iii. Achieving strategic fit

A. i only
B. i and ii only
C. ii and iii only
D. i, ii and iii

12. The physical characteristics of a product will often dictate what:

A. types of sales can be made

B. geographic regions will be included
C. forms of sales promotion to be used
D. kinds of transportation can be used

13. Implied demand uncertainty is often correlated with other characteristics of demand such as:

i. products with uncertain demand are often less mature and have less direct competition
ii. forecasting is more accurate when demand has less uncertainty
iii. increased implied demand uncertainty leads to increased difficulty in matching supply
with demand

A. i only
B. i and ii only
C. ii and iii only
D. i, ii and iii

14. Pricing interacts with a supply chain in many ways. For instance, transportation rate structures
are adjusted by the carrier based on:

A. cost to unload
B. the size of the shipment
C. local currency rates
D. the logistics cost concepts

15. Customers demand for different segments vary along all of the following attributes EXCEPT:

A. the quantity of product needed in each lot

B. the response time those customers are willing to tolerate
C. responding to a wide range quantities demand
D. the service level provided

16. The total logistics cost includes expenses associated with transportation, materials handling
and:

A. customer complaints, cost of food and highway usage taxes

B. warehousing, inventory, stock outs and order processing
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C. inventory control with sales forecasting

D. stock outage control with sales forecasting

17. Supply chain responsiveness includes a supply chain’s ability to do which of the following?

A. Meet shorter lead times

B. Meet a high service level
C. Handle a wide variety of products
D. Handle supply uncertainty

18. The total logistics cost factors need to be balanced against the:

A. supply chain manager’s total experience

B. total expected transportation needs
C. customer service factors
D. lead time expectations

19. The places in the supply chain network where product is stored, assembled, or fabricated are
known as:

A. Facilities
B. Inventory
C. Transportation
D. Information

20. Lead time and order cycle time are the same as:

A. customer service time

B. supply chain flow
C. logistical clockage
D. replenishment time

21. All of the following are distinct distribution network designs EXCEPT:

A. manufacturer storage with direct shipping

B. manufacturer storage with indirect shipping
C. distributor storage with package delivery
D. retail storage with customer pick up

22. The inventory management systems designed to reduce the retailer's lead time for receiving
merchandise is called:

A. manufacturer storage with direct shipping

B. manufacturer storage with indirect shipping
C. distributor storage with package delivery
D. retail storage with customer pick up
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23. The role that distributors play in the supply chain takes into consideration all of the following
EXCEPT:

A. consider whether an exclusive distribution strategy is advantageous

B. product price, commoditization can critically affect the type of distribution system
preferred by customers
C. ensuring that customer has the option of returnability
D. making sure that ownership structure of the distribution has a big impact on the type
network used

24. Examples of third-party logistics providers are:

A. FedEx and Rosenau Transport

B. Sentinel Self-Storage and UPS
C. FedEx and UPS
D. UPS and Metro Van Lines

25. Which component of the supply chain decision-making framework would be established
second?

A. Customer strategy
B. Supply chain strategy
C. Competitive strategy
D. Replenishment strategy

26. The seller MUST concentrate on removing unnecessary barriers for:

A. a quick response
B. customer convenience
C. transportation mode
D. a piggyback operation

27. It is imperative that managers consider All the following ideas to make better network
decisions EXCEPT:

A. combine strategic planning and financial planning during network design

B. use multiple metrics to evaluate supply chain network
C. evaluating spot market options
D. use estimates along with sensitivity analysis

28. There are five basic transportation modes. They are air carrier, motor carrier, and:

A. pipelines, railways and water carriers

B. railways, ocean vessels and dirigibles
C. trucks, canals and robotics
D. pipeline, water routes and ocean vessels
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29. All of the following are true representation of forecasting EXCEPT:

A. forecast are always inaccurate

B. forecast are almost always accurate
C. long term forecast are usually less accurate than short term
D. aggregate forecast are usually more accurate than disaggregate forecast

30. All of the following are true representation of forecasting EXCEPT:

A. pipeline
B. air carrier
C. water carrier
D. motor carrier

31. Forecasting must take several factors into account all of the following statements are true
EXCEPT:

A. past demand
B. planned advertising or marketing strategies
C. estimating level and trends
D. actions competitors take

32. Air freight is costly, but its speed may create savings because of:

A. the extensive availability of airports

B. lower inventory
C. getting to store shelves before water carriers
D. lower costs created by FIFO

33. Aggregate forecasts are usually more accurate than disaggregate forecasts because
_____________ standard deviation of error relative to the mean.

A. aggregate forecast tend to have a larger

B. aggregate forecast tend to have a smaller
C. disaggregate forecast tend to have a smaller
D. disaggregate forecast tend to have a larger

34. The total amount paid to various carriers for transporting products to customers is:

A. transportation cost
B. inventory cost
C. facility cost
D. processing cost

35. Statistical forecasting provides the best solution in which of the following situations in a push
view forecasting environment?
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A. Sales volume is high and forecast variance is high

B. Sales volume is low and forecast variance is high
C. Sales volume is low and forecast variance is low
D. Sales volume is high and forecast variance is low

36. The forecasting method where historical dates are used to predict the future is called:

A. time series
B. qualitative
C. casual
D. simulation

37. Information is crucial to the performance of a supply flow because:

i. it is cheap and easily obtained

ii. it provides the basis on which supply chain management make decisions
iii. it is the most important tool used by distributors

A. i only
B. ii only
C. iii only
D. i, ii and iii

38. The change in demand that can be predicted is called:

A. forecasting
B. predictable variability
C. demand error
D. random error demand

39. To use revenue management successfully when serving multiple customer segment, a firm
must use which of the following tactic effectively?

i. Different prices for each segment

ii. Forecast at the segment level
iii. Price based on the value assigned by each segment

A. i only
B. ii only
C. iii only
D. i, ii and iii

40. Which of the following is NOT a component of facilities decisions?

A. Warehousing methodologies
B. Forecasting methodologies
C. Operating methodologies
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D. Capacity

41. What is revenue management?

A. The use of pricing to increase profits generated from a limited supply of supply chain
assets
B. Reinvesting earned profits in the supply chain
C. Aggregate planning
D. Effective management of a supply chain resources

42. Which of the following options is considered to be the MAIN driver for the supply chain?

A. Information
B. Facility
C. Technology
D. Cost

43. An advantage of the “Push View” in supply chain management is:

A. No need to perform complex forecasting

B. A single channel inventory plan is created to remove the inaccuracies arising in the local
replenishment decision making
C. Local control removes excess pools of inventory in the channel
D. Local control enables ordering exactly the stock that is needed

44. The frame work for network design decisions include all of the following EXCEPT:

A. tariffs and tax incentives

B. exchange rate and demand risk
C. global trade
D. political

45. Information in the supply chain must have the following characteristics EXCEPT:

A. Cheap
B. accessible in a timely manner
C. be of the right kind
D. accurate

46. Information is crucial to making good supply chain decisions at all levels of decision. making.
Which option is NOT a level of decision making?

A. Strategy
B. Planning
C. Sourcing
D. Operations
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47. Sales and operations planning is an aggregate planning tool. Its primary focus is on:

A. Stockkeeping Units
B. Customer orders
C. Product Mixes
D. Product volumes

48. As the response time desired by the customer decreases, the required number of facilities in
the distribution channel:

A. Increases then decreases

B. Remains the same
C. Increases
D. Decreases

49. The advantage of an assembly-line process is:

A. The per unit cost of an item produced on the line.

B. The range of output typically produced in such a process
C. The degree of flexibility of the process
D. The volume of output needed to justify the investment

50. A _______________ provides a low-cost service for export production:

A. Source facility.
B. Offshore facility
C. Contribution facility
D. Outpost facility