4. Operations Management
Supply Chain Management — Quiz
Test your understanding of supply chain management with 5 practice questions.
Practice Questions
Question 1
Which of the following best describes the concept of capacity buffer in supply chain management?
Question 2
A company uses a continuous review inventory system with an order quantity of 500 units and a reorder point of 300 units. The lead time demand is normally distributed with a mean of 250 units and a standard deviation of 50 units. If the company wants to ensure a 95% service level, what is the safety stock required?
Question 3
Which of the following best describes the purpose of a supply chain control tower in advanced supply chain management systems?
Question 4
A manufacturer is evaluating two suppliers for a key component. Supplier A has a lower price per unit but higher lead time variability. Supplier B has a higher price per unit but more consistent lead times. If the manufacturer prioritizes reducing stockouts and maintaining a high service level, which supplier should they choose based on total cost considerations?
Question 5
In a supply chain network, a certain product has a demand of 10,000 units per year. The cost per order is $200, and the holding cost per unit per year is $5. Using the Economic Order Quantity (EOQ) formula, what is the optimal order quantity for this product?