Answer hints:
Sample Question: "A small change in customer demand at the retail level causes increasingly larger fluctuations in orders as you move up the supply chain to the manufacturer and raw material supplier. Name this phenomenon and list three operational causes."
What the professor is testing: Your ability to link systems thinking with human behavior.
Pro Tip: Do not just name the causes. Explain why a grocery store ordering every 10 days hurts the distributor.
Answer hints:
The Supply Chain Management midterm typically assesses students on three core pillars: Conceptual Understanding (definitions, theories), Strategic Application (decision-making frameworks), and Quantitative Analysis (inventory models and forecasting).
This report outlines high-probability exam questions derived from standard SCM curriculum (often based on texts like Chopra & Meindl or Simchi-Levi). The questions are categorized by module to facilitate targeted studying.
These questions are typical for the first 30 minutes of a midterm. They test definitions, basic math, and quick decision-making.
Question 1 (Conceptual – Bullwhip Effect) Which of the following is the primary cause of the bullwhip effect in a supply chain? A) Increased customer demand for a product B) Lack of communication and order batching between supply chain tiers C) High transportation costs D) Over-reliance on just-in-time (JIT) inventory supply chain management midterm exam questions
Answer: B. The bullwhip effect occurs when small fluctuations in demand at the retail level cause progressively larger fluctuations upstream (wholesaler, distributor, manufacturer). Order batching, price fluctuations, and lack of information sharing are the main drivers.
Question 2 (Calculation – Economic Order Quantity - EOQ) A company uses 10,000 units of a component annually. The ordering cost is $50 per order, and the holding cost is $4 per unit per year. What is the EOQ? A) 250 units B) 500 units C) 1,000 units D) 2,500 units
Answer: B. EOQ = √(2DS/H) = √(2 * 10,000 * $50 / $4) = √(1,000,000 / 4) = √250,000 = 500 units.
Question 3 (Conceptual – Push vs. Pull) In a pure "pull" supply chain model, production is initiated by: A) A sales forecast for the next quarter B) A warehouse reaching its minimum stock level C) An actual customer order D) A seasonal promotion plan Answer hints: Sample Question: "A small change in
Answer: C. Pull systems (e.g., make-to-order) are demand-driven. Push systems (e.g., make-to-stock) are forecast-driven.
Question 4 (Calculation – Little’s Law) A call center for a logistics company averages 60 active customer inquiries per hour. The average time to resolve an inquiry is 5 minutes (0.0833 hours). What is the average throughput rate (arrivals per hour)? Using Little’s Law: Inventory = Throughput Rate × Flow Time A) 12 per hour B) 300 per hour C) 720 per hour D) 5 per hour
Answer: C. Rearranging: Throughput Rate = Inventory / Flow Time = 60 inquiries / 0.0833 hours = 720 inquiries per hour.
Question 5 (SCOR Model) In the SCOR model (Supply Chain Operations Reference), the process of managing supplier relationships, sourcing goods, and issuing purchase orders falls under which category? A) Plan B) Source C) Make D) Deliver Pro Tip: Do not just name the causes
Answer: B. "Source" covers procurement activities. "Plan" covers demand/ supply balancing. "Make" covers production. "Deliver" covers order management and transportation.