Whether you are a student looking to predict the exam questions or a professor seeking inspiration, this article breaks down the most common question archetypes, the underlying concepts they test, and how to answer them effectively.
A distributor sells 10,000 units of a product per year. The setup/ordering cost is $50 per order, and the annual holding cost per unit is $2. Calculate the Economic Order Quantity (EOQ) and the total annual inventory cost. Formula:
To get the phones to customers faster, Leo considers Cross-Docking , where goods are moved directly from incoming trucks to outgoing ones without ever sitting in a warehouse. He must choose between Centralized or Decentralized warehousing to balance cost and speed.
In the fast-paced world of , a fictional global tech giant, your midterm exam unfolds through the eyes of Leo, the Senior Operations Manager
A) Materials flow directly from receiving to shipping with little to no storage time.
Looking for more resources? Check your textbook’s chapter on Logistics, the SCOR model, or case studies on Zara and Amazon Prime for real-world applications of these principles.
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.
Most university-level supply chain midterms cover the foundational pillars of logistics, operations, and strategic sourcing. Expect questions to span the following areas:
C) Products are returned by consumers directly to the manufacturer.
In a two-echelon supply chain with centralized forecasting, which benefit is expected? A) Increased bullwhip effect B) Reduced forecasting error due to aggregation C) Higher total safety stock vs decentralized D) Longer lead times