Supply Chain Management Midterm Exam Questions _top_ 【2027】

If a company's average inventory was $160,000 and their inventory turnover was 7, what was their Cost of Goods Sold (COGS)? Calculation: Short Answer & Discussion Questions

What is the bottleneck? B) What is the system’s maximum throughput per hour? C) If you add a second parallel worker at Station B, what happens to the bottleneck?

Questions in this section focus on how a firm manages its network and relationships. Network Design

: How do fluctuating prices impact long-term planning and inventory management? [10]. Sample Practice Questions Question Type Focus Area Multiple Choice supply chain management midterm exam questions

Calculate the Economic Order Quantity (EOQ). What is the total annual holding and ordering cost at this order size? Step-by-Step Solution Identify variables: units/year per unit/year Apply the EOQ Formula:

Companies accumulate demand before placing large orders to achieve economies of scale in transportation or purchasing.

Midterms often test your ability to balance Location , Production , Inventory , and Transportation . If a company's average inventory was $160,000 and

Sits on the responsive end of the spectrum. Customer demand changes rapidly. Zara uses short production lead times, local European manufacturing, and frequent, small shipments to restock stores with trending items. They accept higher production and transport costs to avoid markdown losses.

Station B (6 min/unit) is the bottleneck because it has the longest processing time. Answer B: Throughput = 60 minutes / 6 minutes per unit = 10 units per hour. Answer C: Adding a second worker at Station B cuts its effective processing time to 3 min/unit (assuming perfect split). Now, Station C (5 min/unit) becomes the new bottleneck. Throughput rises to 12 units per hour (60/5).

The old model is more resilient to a port closure because it holds months of inventory in warehouses. The new model’s low inventory and reliance on just-in-time air freight would fail immediately if air capacity is constrained. C) If you add a second parallel worker

Key Issues : Material scarcity, unforeseen delays, port congestion, and rising fulfillment costs [10, 14].

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