,1. Multiple Choice: Which of the following is a key feature of Just-
In-Time (JIT) inventory management?
a) High inventory levels to meet unexpected demand
b) Strong supplier relationships to ensure rapid delivery
c) Use of forecasting techniques to predict customer demand
d) Centralized decision-making for inventory control
Answer: b) Strong supplier relationships to ensure rapid
delivery
Rationale: JIT inventory management relies on strong supplier
relationships to receive goods as they are needed, reducing
inventory costs and waste.
2. Fill-in-the-Blank: The ________ effect is a phenomenon where
variability in demand increases as one moves up the supply chain
from the consumer to the producer.
Answer: Bullwhip
Rationale: The Bullwhip effect refers to the increasing fluctuation
in orders that often occurs as one moves up the supply chain.
3. True/False: Outsourcing production to third-party vendors
always reduces the total cost of ownership.
, Answer: False
Rationale: While outsourcing can reduce direct costs, it may
increase other expenses such as shipping, handling, and the risk of
supply chain disruptions.
4. Multiple Response: Select all that apply. Which of the following
are common objectives of supply chain management?
a) Cost reduction
b) Quality improvement
c) Flexibility enhancement
d) Revenue maximization
e) Inventory accumulation
Answers: a) Cost reduction, b) Quality improvement, c)
Flexibility enhancement, d) Revenue maximization
Rationale: The main objectives of supply chain management
include cost reduction, quality improvement, flexibility
enhancement, and revenue maximization. Inventory accumulation
is not typically an objective.
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