Identify the "second-tier supplier" for an end-item manufacturer in a standard chain [19]. 2. Sourcing and Procurement
Placing multiple warehouses close to markets improves response times and lowers customer delivery costs, but exponentially increases safety stock requirements and overhead costs. Analytical and Quantitative Exam Questions
Calculations and metrics are staples of SCM midterms. Be prepared to discuss: What Is Supply Chain Management? - IBM
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"A fashion retailer buys winter coats for $80 each and sells them for $150. After January, leftover coats are sold to a discounter for $40 each. Demand is normally distributed with a mean of 1,000 and standard deviation of 200. What is the Critical Ratio (Cu/(Co+Cu)) and the optimal order quantity?"
Cost of Poor Quality: Rework, returns, and inspection costs amplified by long feedback loops with distant factories.
Strategic sourcing, vendor-managed inventory (VMI), and the total landed cost of products. Use Canvas to test your knowledge with a
Calculate the total annual holding and ordering costs at this volume. Calculate the number of orders placed per year. 1. Calculate EOQ: The EOQ formula is:
Supply Chain Management (SCM) is the circulatory system of the global economy. It is a multidisciplinary field that blends logistics, operations, procurement, and data analytics. The SCM midterm exam is a critical checkpoint; it separates students who can recite definitions from those who can actually optimize a flow of goods.
The role of demand uncertainty and various forecasting methods (qualitative vs. quantitative). vendor-managed inventory (VMI)
Expected Answer Structure:
Be ready to graph the relationship between inventory costs and transport costs, or the relationship between responsiveness and efficiency. Professors love grading visual understanding.
SS=1.645×5×2=16.45 unitscap S cap S equals 1.645 cross 5 cross 2 equals 16.45 units The required safety stock is (rounded up). 2. Calculate Reorder Point (ROP):