Arizona State University (ASU) SCM 300 Global Supply Operations Exam 2 Practice

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• Square Root Rule: Inventory future = Inventory present × (√Warehouse future / √Warehouse present). If Present Inventory = 50, Warehouse Future = 64, Warehouse Present = 16, what is Inventory Future?
• Which technology approach could address the challenges identified in C.A.F.E. Practices?
• Which statement about Zara's asset strategy is true?
• CPFR stands for Collaborative Planning, Forecasting, and Replenishment.
• Why is data quality critical in SCM systems and what are common data quality issues?
• What is the primary objective of C.A.F.E. Practices?
• Which action is a hallmark of a resilient supply chain?
• What is reverse logistics and what challenges does it pose in a global supply chain?
• Which statement accurately differentiates Delivered At Place (DAP) from Delivered Duty Paid (DDP)?
• Which organization issues the ISO 14000 series?
• How is safety stock calculated under demand uncertainty and lead time variability using a simple service factor approach?
• In queuing terms, which concept represents the population of people who might enter the system?
• Which term describes retailers fully committed to engaging customers via catalogs, phone, websites, email, social media, and in-store?
• What outcome did the agronomy center aim to achieve with farmers and suppliers in the region?
• Which statement about import duties and preferential trade agreements is correct?
• Which term refers to an intermediary that connects manufacturers or wholesalers directly to consumers but does not possess the product?
• ρ meaning: Which best describes rho?
• Waiting Line Service Facility is defined as which of the following?
• Incoterms are:
• What was the second challenge in implementing C.A.F.E. Practices?
• Which statement lists the components of inventory carrying cost?
• Which statement correctly contrasts WMS and ERP in SCM?
• Waiting line Input Source is defined as which of the following?
• Finite population concept: In a system with finite population, what parameter reflects the limiting number of potential customers?
• Which concept involves rigid control structures to ensure all outlets operate in the same way?
• What is the primary purpose of the Harmonized System (HS) code in international trade?
• Which statement describes how Starbucks verifies suppliers?
• In queueing theory, what does ρ represent in an M/M/1 system?
• Why is On-Time In-Full (OTIF) used as a supplier performance KPI, and what is a potential drawback?
• ISO 14000 series are certifications offered by which organization?
• In lean manufacturing, poka-yoke refers to which concept?
• Which term describes an organization that ties manufacturers and/or wholesalers directly to consumers, never possessing the product?
• What is a practical supply chain risk mitigation plan for a supplier bankruptcy scenario?
• Which formula represents Economic Order Quantity (EOQ)?
• What does OTIF stand for and why is it a critical performance metric in SCM?
• Finite Population of Customers: Which statement describes a finite population?
• What is the difference between a Warehouse Management System (WMS) and an Enterprise Resource Planning (ERP) system in SCM?
• What are common drivers behind reshoring manufacturing activities back to the home country?
• Describe a hub-and-spoke logistics network and its benefits.
• In which country did Starbucks open the farmer support center in January 2004?
• What term describes companies that take orders via the company website and also offer sales via the phone?
• What is the name of the premium awarded for a 10-point increase above 80 percent over a year?
• Mu: Mu represents the number of customers served per unit of time; e.g., 24 per hour.
• Which statement best describes obsolescence risk mitigation in inventory policy?
• Which term best describes using a contractor in another country to perform services and/or operations?
• What are key elements of contract management in sourcing?
• Shrinkage adjustment is performed by dividing the demand by which factor?
• What is the typical cycle in supplier relationship management (SRM) and its focus areas?
• Which statement about barcode scanning is true?
• Under VMI, which statement best describes the relationship?
• ρ equation: Which equation defines ρ in terms of λ and μ?
• Which of the following is a SA8000 focus area?
• Reduce, Reuse, Recycle emphasizes which of the following?
• In an M/M/1 queue, the probability of having exactly n customers in the system is P_n = ?
• SA8000 certification focuses on what area?
• Given D=10,000 units/year, S=$50 per order, H=$2 per unit per year, what is the EOQ?
• Order size required is computed as Actual Demand divided by Proportion of Acceptable Product per Order. If Actual Demand = 500 and Proportion = 0.95, what is the order size (rounded up)?
• Which of the following is a key to lean manufacturing in terms of supplier relationships?
• Why would poor information systems among some supply chain members hinder C.A.F.E. Practices goals?
• Lambda units: Which statement about lambda is true?
• Which of the following is NOT one of the three values in Social Responsibility?
• Which statement best describes the comparative capabilities of RFID and barcodes in inventory accuracy and data capture?
• Which document is used to verify the origin of goods in a shipment?
• What was the percentage of adults in the U.S. who consumed specialty coffee daily in 2004?
• Which document serves as a contract between the shipper and the carrier?
• Waiting Line is defined as which of the following?
• Contract Manufacturing is defined as.
• Customs-Trade Partnership Against Terrorism (C-TPAT) stands for?
• Resilience in supply chain refers to the ability to absorb disruptions and recover quickly. Which mitigation strategy is an example?
• Which statement best describes the relation-building outcome of the agronomy center with supply chain members?
• How many days does Zara claim to need to design, produce, and display a new garment?
• Which design approach is contrasted with cradle to grave design in the sustainability discussion?
• Shrinkage calculation: With consumer demand 300 units and shrinkage allowed 2%, what order quantity should cover demand?
• Which statement best captures the Sustainability Framework's components?
• Which items typically require a validated export license?
• Outline the key steps in customs clearance for an import shipment.
• Which is a feature of Zara's 'close the loop' approach to product display?
• Manufacturing Audits refer to:
• What describes the role of a 4PL provider?
• Starbucks CAFÉ Practices are built around how many core components?
• What happens to suppliers scoring above 60%?
• What was identified as the first major challenge in implementing C.A.F.E. Practices?
• Which term describes a retailer that sells exclusively via an online website?
• Bias measures which aspect of forecasting?
• What does OTIF stand for?
• How quickly do shipments typically reach European stores?
• What is the name of the farmer support center opened by Starbucks in Costa Rica?
• How does demand sensing improve forecasting?
• What term refers to penalties charged by retailers to suppliers for supply chain offenses?
• n1 numeric calculation: Using λ = 15 and μ = 24, compute n1.
• What rule do Zara's senior managers follow regarding waiting time in capacity-constrained environments?
• What is the benefit of keeping short set-up/change-over times in a lean system?
• Outline the core steps in the S&OP process.
• In supplier relationship management, what is the purpose of segmentation?
• Which triple of factors is commonly cited as causes of supply chain risk in global operations?
• Which strategy involves moving manufacturing from the home country to another country?
• Which document tracks exports and provides export license information for shipments from the United States?
• In the safety stock formula safety stock = z * σ_DL, identify the definitions of D, σ_LT, LT, and σ_D used in calculating σ_DL.
• In ABC analysis, which statement best describes C-class items?
• Infrastructure refers to:
• Which retail strategy enforces rigid control structures to develop and manage processes so that all retail outlets are managed in the same way?
• Causes of bullwhip effect include which of the following?
• Offshoring and Outsourcing describes a strategy where a company utilizes a contractor in another country to perform services and/or operations.
• In FOB and CIF, when does risk transfer and what is the main cost difference?
• Which statement accurately differentiates service level and fill rate?
• Push inventory strategy is characterized by which description?
• Which of the following best defines a Free Trade Zone (FTZ)?
• Who can quickly and informally check initial sketches at Zara?
• Which term defines the portion of the supply chain between the final inventory holding facility and the end consumer?
• Which of the following is a retail source of supply?
• Which of the following is a direct component of inventory carrying cost?
• Which organization licenses the independent verifier used to audit Starbucks' suppliers?
• Which statement about the Bill of Lading is NOT a main purpose?
• What advantage does the C.A.F.E. supply base program provide Starbucks?
• What is the primary objective of total landed cost analysis in global sourcing?
• Which practice improves supplier relationships and minimizes risk in sourcing?
• What are the qualitative and quantitative benefits of nearshoring for a U.S. company sourcing from Mexico or Central America?
• Reneging: Which scenario defines reneging?
• How does lead time impact safety stock requirements and service levels?
• Which statement about 3PL is NOT true?
• Which item is typically not part of shipping documentation?
• Which departments are dedicated to each clothing line in Inditex?
• Lambda: Lambda represents the number of customers arriving per unit of time; e.g., 15 per hour.
• Provide the EOQ formula and what each variable represents.
• Define and contrast routing optimization and network optimization in logistics.
• Which describes an arrangement where retailers allow vendors to monitor in-store inventories and automatically restock when stock is low?
• What premium do Strategic suppliers earn under CAFÉ?
• Which metric represents the company cost for waiting lines (such as payroll)?
• How are import duties computed and what factors influence the duty amount?
• Which strategy helps reduce the bullwhip effect?
• Which initiative aims to reduce supply chain costs by sharing data and jointly developing forecasts?
• How do obsolescence and end-of-life management affect inventory policy?
• Which design approach describes items designed with little thought to end-of-life and often destined for landfills?
• Which option is NOT a typical benefit of a Transportation Management System (TMS)?
• Inventory turnover is calculated as which ratio?
• What percent of Zara's fabric is sourced from Comditel?
• Rho: Rho is the utilization, ρ = λ/μ.
• Which term describes a retailer using both physical store and web channels to sell products?
• Which formula represents the average time a customer waits in line (W_q) in an M/M/1 queue?
• According to Zara's strategy, being out of stock in one item has what effect?
• Which statement best describes the complete SRM cycle?
• Everyday Low Pricing (EDLP) is defined as which?
• Which factor is included when assessing the global landscape for supply operations?
• In a drop shipping model, who holds the inventory?
• Which concept refers to a series of stores that have common design, construction and layout and standardized plans across many stores?
• MAD stands for what in forecast accuracy metrics?
• Which is a benefit of utilizing external partners?
• Which factor primarily drives safety stock targets?
• Approximately what share of coffee beans came from Latin America?
• Which action is specifically aimed at driving continuous improvement in sustainability within global sourcing?
• Which term is used to describe a plan that places products on shelves across all stores to guide placement?
• What is the meaning of Ortega's maxim 'you need to have five fingers touching the factory and five touching the customer'?
• What share of production does Zara handle in its own factories?
• Which statement best describes Everyday Low Pricing (EDLP)?
• What is the Shipper's Export Declaration used for?
• In a push system, production is triggered by forecasts rather than actual demand. Which statement describes this timing?
• What are the typical steps in a common risk assessment framework used in SCM?
• In a push system, inventory is moved toward the consumer based on known demand. Which is a key risk associated with push systems?
• What do the CAFÉ prerequisites require in terms of transparency?
• Which activity is essential to recover materials at end of life in a closed-loop approach?
• From 1991 to 2003, Inditex's sales grew from €367 million to €4.6 billion, with profits rising from €31 million to €447 million. What portion of sales came from Zara?
• List three key supplier performance metrics used in supplier scorecards.
• What is MEIO and why is it used in global networks?
• Which design philosophy expands designers' thinking to repurpose parts after use?
• Infinite population of customers implies which about arrivals?
• Which of the following is NOT listed as a key factor when assessing the global landscape?
• What professionals were part of the agronomy company team?
• In the Triple Bottom Line, which sequence represents the three dimensions in the material's description?
• What is Zara's practice that helps avoid overproduction?
• Which term describes an arrangement where retailers rely on vendors to monitor stock and automatically replenish?
• n1 formula: Which expression gives the average number of customers in the line?
• Third Party Logistics Company (3PL) is defined as:
• In a typical supplier development process, which step focuses on tracking the effects of improvements on performance?
• What is cross-docking and when is it advantageous?
• Which metric represents the cost to customers for waiting lines?
• Mu units: Which statement about mu is true?
• Compare the cost/service trade-offs of air, ocean, and trucking modes for global shipments.
• Which is a risk of utilizing external partners?
• What are the main benefits of a Transportation Management System (TMS)?
• Who provides quick feedback about the look of new designs and possible market price points?
• Bullwhip effect: Which statement best describes it?
• Which item is NOT listed as a cause of the bullwhip effect?
• Which statement reflects Brundtland's definition of sustainable development?
• Balking: What describes balking?
• What is the purpose of Starbucks' C.A.F.E. supply base program?
• Which term describes a map that specifies where every product goes on a retail store shelf?
• What is a map of where every product goes on a retail store shelf?
• What is a supplier code of conduct and why is it important?
• What percent of full ticket price does Zara collect on its retail clothing, giving Zara a higher net margin than the industry average?
• Which regions did the agronomy team collaborate with?
• Which component is NOT typically included in total landed cost analysis?
• Which term describes a business that operates in a physical store without an internet presence?
• How many CAFÉ practices are included?
• Why would suppliers have an incentive to remain with Starbucks under C.A.F.E. Practices?
• Incoterms were established by which organization?
• What role do 3PL and 4PL providers play in global supply chains?
• Which design philosophy expands designers' thinking to repurpose a product after it is no longer useful?
• Which of the following is NOT infrastructure in the context of moving goods?
• What are Free Trade Agreements (FTAs) and how do they affect global sourcing decisions?
• MAPE measures which of the following?
• Lean manufacturing is defined as a production philosophy with minimal inventory and minimal waste. Which option correctly defines lean manufacturing?
• Which concept seeks to create a loop of materials through sustainable procurement, manufacturing, logistics, and reverse logistics?
• In demand management, how do demand shaping and demand sensing differ?
• Denominator interpretation: In the expression n1 = ρ [λ /(μ-λ)], what does (μ-λ) in the denominator represent?
• Which term refers to retailers fully engaging customers across catalogs, phone, websites, email, social media, and in-store?
• A key benefit of participating in C-TPAT is:
• The cash-to-cash cycle length is driven by which components?
• What is the long-term effect of the agronomy support on the supply chain?
• Which concept describes a series of stores that have common design, construction and layout and standardized plans that work across many stores for chain retailers?
• Inditex headquarters in La Coruña organizes around how many product families?
• List three approaches to reducing lead time variability in a global supply chain.
• What percentage of U.S. adults claimed to be occasional consumers of Starbucks specialty coffee?
• Which approach does Zara use to gain speed and flexibility by delaying customization until later in the process?
• Postponement is a system that combines push and pull. Which statement best describes postponement?
• Which of the following is a typical first step in a supplier development process?
• Which characteristic best describes a pull system?
• What was the estimated total specialty coffee market in 2004?
• What is the maximum score possible under CAFÉ Practices?
• In the M/M/1 queue, the average number of customers in the system equals which expression?
• During 1991-2003, Inditex's growth data indicates that Zara accounted for what share of sales?
• What does a higher inventory turnover generally indicate?
• Manufacturing Compliance refers to:
• A customs house broker is best described as what?
• ρ numeric calculation: If λ = 15 per hour and μ = 24 per hour, what is ρ?
• What is outsourcing?
• Which step is not typically part of the S&OP process?
• Which statement describes a typical characteristic of a push system?
• Where is Zara's central warehouse located?
• Which statement best describes the role of a freight forwarder?
• Which is a core element of Zara's supply chain strategy?
• Which statement best distinguishes outsourcing from offshoring?
• Near-sourcing is defined as:
• Explain the impact of MOQ (minimum order quantity) on cost, inventory, and supplier relationships.
• Lean manufacturing is also known as which combination?
• In CIF shipments, who pays for insurance up to the destination port?
• Compare nearshoring and offshoring as global sourcing strategies.
• Explain the bullwhip effect and one way to mitigate it.
• Which statement is accurate about CIF and FOB terms regarding costs and risk?
• Which is a common data quality issue in SCM systems?