3. Supply Chain Management

Supply Chain Basics — Quiz

Test your understanding of supply chain basics with 5 practice questions.

Practice Questions

Question 1

Which production strategy is most appropriate for products with highly stable demand, low customization, and high volume?

Question 2

In which production strategy does manufacturing begin only after a customer's order is received, minimizing finished goods inventory but potentially increasing lead time?

Question 3

Which supply chain driver refers to decisions about the number, location, and capacity of plants and warehouses, influencing cost and responsiveness?

Question 4

Which performance metric is defined as days of sales outstanding (DSO) plus days inventory outstanding (DIO) minus days payable outstanding (DPO)?

Question 5

If $DIO=60$ days, $DSO=45$ days, and $DPO=30$ days, what is the cash conversion cycle?