Supply Chain Management Midterm Exam Questions

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5. Moving Globally (The "Offshoring" Gamble)Leo decides to move some production to a foreign country. He knows Offshoring will lower labor costs but increase the risk of delays and higher freight costs. He uses Discounted Cash Flow (DCF) to see if the move makes financial sense over time. supply chain management midterm exam questions

What is the term for the integration of multiple supply chain functions, such as procurement, production, and logistics? a) Supply chain integration b) Supply chain optimization c) Supply chain visibility d) Supply chain agility Ready to create a quiz

Supply Chain Strategy & Drivers

Archetype 2: Inventory Math (EOQ & Safety Stock)

Sample Question: "A retailer sells 10,000 units of SKU #405 annually. The fixed cost per order is $50, and the annual holding cost per unit is $2. Calculate the Economic Order Quantity (EOQ). Furthermore, if the lead time is 2 weeks (assume 50 working weeks/year) and demand is constant, what is the Reorder Point (ROP)?" Answer: While small quantities reduce holding costs (less

• Answer: While small quantities reduce holding costs (less stock sitting on shelves), they drastically increase ordering costs (administrative work, shipping fees, receiving costs). The EOQ model finds the balance where the sum of these two costs is minimized.