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| Section | Objectives |
|---|---|
| Distribution and Operations Management | - Stock Management - Transport Management - Order Management - Warehouse Management - Introduction to Distribution Network |
| Principles of Supply Chain Management & Logistics | - Supply Chain Processes - Management Components of Supply Chain Management - Introduction to Supply Chain Management - Factors Affecting Supply Chain Management |
| Major Supply Chain Issues: Sourcing Materials and Services | - Developing Productive Supplier Relationships in a Competitive Market - Introduction to Global Supply Chain Management - Major Challenges in Supply Chain Management Today - Role of Logistics in Supply Chains - Inventory Management |
| Demand Planning and Forecasting | - Supply Chain Issues for Short Life Cycle Products - Demand Forecasting and Purchase Price Variance (PPV) Savings - Revenue Management - Issues and Trade-offs in Global Supply Chain Management - Spreadsheet Newsvendor Models - Integrated View of Procurement, Manufacturing and Operations Management |
| E-Supply Chain Management | - Warehouse Management System (WMS) - Differences Between Logistics and Supply Chain Management - Big Data and IoT in Supply Chain - Modern Fulfilment Tools and Applications in Supply Chain - Information Flows and Information Systems Integration |
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NEW QUESTION # 74
When supplies and goods are offered in a favorable way without waste is what type of supply chain?
Answer: C
Explanation:
A supply chain designed to provide goods efficiently while minimizing waste is a Lean Supply Chain . Lean thinking seeks to align supply closely with genuine customer requirements while removing unnecessary activities, inventory, delays, defects, excess movement, and inefficient processing.
The phrase "without waste" is the decisive element. Lean supply-chain design attempts to provide the required product, quantity, quality, place, and timing while consuming the minimum resources necessary to deliver the required value. This philosophy is closely associated with Just-in-Time practices, continuous improvement, process standardization, quality at the source, inventory reduction, and smoother material flow.
An agile supply chain differs because its primary emphasis is the ability to respond rapidly to uncertainty and changing customer requirements. E-Supply Chain refers to digitally enabled supply-chain coordination.
Procurement is a business process for acquiring goods and services, not a supply-chain strategy equivalent to lean.
Supply-chain research describes lean explicitly as an approach centered on customer value, waste reduction, and delivering required goods and services without unnecessary activity.
Therefore, option A accurately matches the description.
Reference Topic: Production and Operations Alignment - Lean Operations, Waste Elimination, and Just-in- Time Flow.
NEW QUESTION # 75
Total ordering and holding costs
Answer: D
Explanation:
The economic order quantity represents the lot size that balances two opposing inventory-cost components:
ordering cost and holding cost. Ordering larger quantities reduces the number of replenishment orders placed during a period, thereby lowering annual ordering cost. However, larger quantities increase average cycle inventory and therefore increase annual holding cost. Ordering smaller quantities produces the reverse effect.
At the EOQ, the combined annual ordering and holding cost reaches its minimum. A significant managerial characteristic of the EOQ cost curve is that it is comparatively flat near this minimum. Consequently, modest deviations above or below the mathematically optimal order quantity generally produce only a small increase in total relevant cost. This is why total ordering and holding costs are described as relatively stable around the economic order quantity .
This property is operationally useful because managers do not normally need to implement the calculated EOQ with absolute numerical precision. Practical constraints such as case-pack quantities, pallet sizes, supplier minimums, transportation capacity, and scheduling considerations can justify a nearby quantity without materially damaging cost performance.
Therefore, option B accurately describes the behavior of total ordering and holding cost near EOQ.
Reference Topic: Inventory and Warehousing - EOQ, Ordering Cost, Holding Cost, and Lot-Sizing Trade- offs.
NEW QUESTION # 76
Farming is a good example that includes activities such as production, warehousing and transportation. This is an example of what part of SCM?
Answer: D
Explanation:
The activities described- production, warehousing, and transportation -are operational activities and therefore belong to the Supply Chain Execution (SCE) Subsystem . Supply-chain execution concerns carrying out the physical and transactional processes required to move materials and products from procurement through production and ultimately to delivery.
The distinction from supply-chain planning is important. Planning systems determine what should happen:
anticipated demand, procurement requirements, production quantities, inventory targets, and distribution plans. Execution systems manage what is actually happening operationally, including manufacturing, warehouse activities, order fulfillment, and transportation.
This classification is well established in supply-chain systems architecture. SAP's supply-chain execution framework connects procurement, production, warehousing, fulfillment, and transportation processes, while other SCE definitions similarly identify production, warehousing, and transport as execution functions.
A knowledge base stores and organizes relevant information, while assessment mechanisms evaluate supply- chain participants or performance. Neither directly performs the physical activities specified in the question.
Accordingly, farming operations involving production, storage, and transportation illustrate the Supply Chain Execution Subsystem .
Reference Topic: Production and Operations Alignment - Supply Chain Execution, Warehousing, Production, and Transportation.
NEW QUESTION # 77
Situations in which the pricing policies for a product lead to an increase in variability of orders placed are referred to as
Answer: A
Explanation:
Pricing obstacles occur when pricing mechanisms cause customers or downstream supply-chain stages to place orders that are substantially more variable than actual consumer demand. The distortion typically arises from quantity discounts, trade promotions, temporary price reductions, and other pricing arrangements that encourage buyers to change the timing or size of purchases.
For example, a temporary supplier discount can encourage a retailer to engage in forward buying-purchasing several periods of anticipated requirements while the price is temporarily low. Orders become exceptionally large during the promotional period and very small afterward. Consumer demand may remain comparatively stable, yet the manufacturer's observed order stream becomes highly volatile.
Lot-size-based quantity discounts can produce a similar effect by encouraging buyers to place fewer but much larger orders. The resulting batching amplifies order variability upstream and increases the bullwhip effect.
This definition distinguishes pricing obstacles from operational obstacles involving lot sizing, lead times, or rationing; information-processing obstacles involving distorted demand signals; and incentive obstacles involving conflicting performance objectives.
Supply-chain coordination literature explicitly defines pricing obstacles as pricing policies that increase variability in orders placed.
Reference Topic: Inventory, Forecasting and Demand Planning - Pricing Obstacles, Forward Buying, and Bullwhip Effect.
NEW QUESTION # 78
When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as:
Answer: D
Explanation:
Event-based marketing uses identifiable events in a customer's life, relationship, or purchasing history to trigger timely and individualized marketing communications. Birthdays and anniversaries are classic examples because the event determines when the promotional offer is delivered.
CRM platforms make this approach scalable by maintaining customer profiles and automatically recognizing relevant dates or behavioral triggers. Event-based programs can also respond to events such as contract renewals, purchase anniversaries, service milestones, product replacement cycles, changes in buying behavior, or other predefined conditions.
The critical concept is not simply customer segmentation. Segmentation divides customers into groups based on common attributes, whereas event-based marketing determines the timing of communication using a specific event associated with an individual customer. "Personal holiday marketing" and "extreme segmentation marketing" are distractors rather than the formal CRM terminology used for this practice.
From a supply-chain perspective, more precise customer engagement also provides useful demand signals and can help organizations coordinate inventory and promotional planning around anticipated responses.
The underlying CRM study material explicitly defines individual promotions linked to birthdays and anniversaries as event-based marketing .
Reference Topic: Business Value and ROI of Supply Chain Excellence - CRM Personalization and Event- Based Marketing.
NEW QUESTION # 79
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