SCM 300 Module 6 Exam questions with
answers
Recap of supply chain basics -Correct Answer-Focus on People, Competitive Priorities, Measuring
Success, Maximizing Value, Productivity
Bullwhip effect -Correct Answer-very high and very low supply levels
4 causes of bullwhip effect -Correct Answer-1. Poor forecasting, Poor analysis, Poor communication
2. Order Batching - Trying to place large orders
3. Price Fluctuations - Promotions, Quantity discounts, Special pricing/payment options...Can cause
batching
4. Rationing - Demand higher than supply. Promotes rationing on part of "distributor". "Retailers" may
get less than ordered.
5. Shortage Gaming - Retailers inflate order sizes to counteract rationing
5 methods for controlling the bullwhip effect -Correct Answer-everyday low pricing, vendor management
inventory systems, information sharing, develop strong buyer-supplier relationships, and practicing lean
manufacturing
Rocks and water analogy -Correct Answer-Rocks are the problem (Capacity levels, inventory)
Water is the service/supplier
Boat is unable to get through if water shrinks, due to rocks
Lean manufacturing -Correct Answer-goals: to minimize inventory (inventory is bad) and to eliminate all
types of waste: quality control
Keys to Lean manufacturing -Correct Answer-High Performance Quality, Consistent Quality, Quality at the
Source, Continuous Improvement, Poka-yoke(mistake proofing), Closer supplier ties, Small Lot Sizes,
Standardized components and work methods, Dedication to the workforce
front-end -Correct Answer-visible to customer
, back-end -Correct Answer-not visible to costumer
upstream -Correct Answer-in the direction towards the supplier
downstream -Correct Answer-in the direction towards the customer
obstacles of integration -Correct Answer-Poor communication, an unwillingness to share, and/or lack of
trust between supply chain partners
importance of supply chain integration -Correct Answer-The only way for supply chain partners to
achieve efffectiveness, efficiency, and adaptability
postponement -Correct Answer-a combination of push and pull system. Delay the final assembly of the
end Item.
Allows some degree of customization and standardization. Speed and Customization
push system -Correct Answer-Inventory is "pushed toward the consumer in anticipation of consumer
demand
pull system -Correct Answer-System that is activated by consumer demand as a result a supply chain will
not make and store finished goods inventory until someone wants something
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