Supply Chain Management Midterm Exam Questions ^hot^

Explain the difference between cycle stock and safety stock .

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A) Delay the final customization of a product until closer to the point of sale. B) Delay paying suppliers to improve cash flow. C) Postpone shipping until a container is 100% full. D) Shift manufacturing to low-cost offshore regions. Explain the difference between cycle stock and safety stock

Define the bullwhip effect. Explain two distinct operational causes of this phenomenon and propose one modern supply chain technology or practice that mitigates it. Model Answer: C) Postpone shipping until a container is 100% full

The cash-to-cash cycle = Inventory Days + Receivables Days – Payables Days. It measures the time between paying suppliers for raw materials and receiving cash from customers. A shorter cycle is better.

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