Supply Chain Management Midterm Exam Questions ((full))

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Supply Chain Management Midterm Exam: Comprehensive Study Guide and Practice Questions

Mastering a Supply Chain Management (SCM) midterm requires a deep understanding of how goods, information, and finances flow from raw material suppliers to the end consumer. Whether you are preparing for a business school exam or a professional certification, focusing on core pillars like procurement, logistics, and inventory management is essential.

This guide breaks down the most frequent exam topics and provides practice questions to help you prepare effectively. Core Concepts and Pillars

Expect midterm questions to test your foundational knowledge of SCM's structure.

The Five Pillars: Most curricula focus on Planning, Sourcing, Manufacturing, Logistics, and Returns. supply chain management midterm exam questions

Primary Objectives: The ultimate goal of SCM is to improve customer satisfaction while reducing operational costs.

The Three Flows: A common multiple-choice question asks to identify the three primary flows: Material/Goods, Information, and Financial.

The Bullwhip Effect: You must be able to define this as the amplification of demand fluctuations as one moves upstream in the supply chain. Inventory Management and Metrics

Calculations and metrics are staples of SCM midterms. Be prepared to discuss: What Is Supply Chain Management? - IBM

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Part A: Quantitative Problems

Q5: EOQ Calculation A local electronics store sells 10,000 units of a specific printer cartridge annually. The fixed cost to place an order is $50. The holding cost per unit per year is $2. Assume 365 days a year. Ready to create a quiz

• a) Calculate the Economic Order Quantity (EOQ).
  • Formula: $EOQ = \sqrt\frac2 \times D \times SH$
  • Solution:
    • $D = 10,000$
    • $S = 50$
    • $H = 2$
    • $EOQ = \sqrt\frac2 \times 10,000 \times 502 = \sqrt500,000 \approx 707$ units.
• b) What is the Total Annual Cost (excluding product cost)?
  • Formula: $TC = (D/Q \times S) + (Q/2 \times H)$
  • Solution:
    • Ordering Cost: $(10,000 / 707) \times 50 \approx 707.21$
    • Holding Cost: $(707 / 2) \times 2 \approx 707$
    • Total Cost $\approx $1,414.21$

Q6: Reorder Point (ROP) Daily demand is 20 units. The lead time (time between placing order and receiving it) is 5 days. What is the Reorder Point?

• Formula: $ROP = \textDaily Demand \times \textLead Time$
• Solution: $20 \times 5 = 100$ units. (When inventory hits 100, place a new order).

Part 2: Common Question Formats & Archetypes

Most professors use a mix of multiple-choice, short answer, and quantitative problems. Here is what you will likely see.

Grading Criteria

• Accuracy of quantitative answers (formulas and units matter)
• Clarity and logic in written explanations
• Application of concepts to scenarios, not just memorization
• Justification for trade-off decisions (e.g., why choose faster transport despite higher cost)

Topics Covered

The following major areas will be tested:

1. Introduction to Supply Chain Management

   • Definition, key objectives, and value proposition
   • The three flows (product, information, financial)
   • Bullwhip effect – causes and mitigation

2. Supply Chain Strategy & Drivers

   • Competitive and supply chain strategy alignment
   • Efficiency vs. responsiveness
   • Key drivers: facilities, inventory, transportation, information, sourcing, pricing

3. Demand Forecasting

   • Qualitative vs. quantitative methods
   • Time series forecasting (moving average, exponential smoothing)
   • Forecast error measures (MAD, MSE, MAPE)

4. Inventory Management

   • Cycle stock, safety stock, pipeline inventory
   • EOQ model and reorder points
   • ABC analysis
   • Newsvendor model basics (for perishable/seasonal goods)

5. Supply Chain Network Design

   • Factors affecting facility location decisions
   • Trade-offs: centralization vs. decentralization
   • Basic total logistics cost analysis

6. Sourcing & Procurement

   • Make-or-buy decisions
   • Supplier selection criteria
   • Single vs. multiple sourcing