1. QUESTION BANK
SUPPLY CHAIN MANAGEMENT
UNIT 1
Q.1 Explain the impact of supply chain decisions on the success of a firm.
Q.2 Identify the three key supply chain decision phases and significance of each stage.
Q.3 what is the ultimate goal of every supply chain.
Q.4 Supply Chain begins at ------------.
Q.5 The value a supply chain generates is the difference between what the final product is
worth to the customer and the costs the supply chain incurs in filling the customer’s
request. Explain.
Q.6 Supply chain success is measured in terms of supply chain profitability. Elaborate.
Q.7 Describe the various Supply Chain Stages involved in purchasing of a soda can from
a store.
Q.8 Draw Supply Chain stages of a milk manufacturing and distribution firm , Example-
Sanchi.
Q.9 Why should a firm like Dell should take into account Supply chain profitability when
making decisions.
Q.10 Consider the supply chain involved when a customer purchase a book at a book
store.
Q.11 Consider the supply chain involved when a customer orders a book from
Amazon.com.
Q.12 Identify the major drivers of supply chain performance.
Q.13 Discuss the role each driver plays in creating strategic fit between the supply chain
strategy and the competitive strategy.
Q.14 How could a grocery retailer use inventory to increase the responsiveness of the
company’s supply chain.
Q.15 How could an Auto manufacturer use transportation to increase the efficiency of its
supply chain.
Q.16 How could a bicycle manufacturer increases responsiveness through its facilities.
Q.17 Why is supply chain of a news paper company important. Explain.
Q.18 Explain why achieving strategic fit is critical to a company’s overall success.
Q.19 Describe how a company achieves strategic fit between its supply chain strategy
and its competitive strategy.
Q.20 What are the major obstacles that must be overcome to manage a supply chain
successfully.
UNIT 2
Q.1 In general purchasing is the process of buying, explain.
Q.2 Explain purchasing as a supply chain function.
Q.3 Purchasing can be defined as the function of procurement with a view of reducing the
investments in materials. Explain.
Q.4 Explain the main objectives of purchasing.

2. Q.5 What are the results observed in supply chain due to effective purchasing.
Q.6 The purchasing department is the major expender of the firm’s finance, explain.
Q.7 Why purchase department need to coordinate its efforts with that of material and
finance department.
Q8. Purchase department is judged by the time and money which it has been able to save
through its operations, comment.
Q.9 Explain the 6 R’s of purchasing.
Q.10 For effective purchasing it is necessary that the purchasing department should
follow certain essential principles of purchasing, what are these principles of purchasing.
Q.11 What are the procedures adopted in making a purchase for an organization.
Q.12 Buyers and sellers runs the entire supply chain, expain.
Q.13 It is the mutual understanding and relation between buyers and sellers, that keeps
the cycle of trade moving, explain.
Q.14 What are guidelines for buyers and sellers in a supply chain to maintain good
relation.
Q.15 “Purchasing is not profit making; instead, it is profit taking since it spends
organizational resources.” Do you agree?
Q.16 Differentiate between purchasing and procurement.
Q.17 In the petroleum and coal product industry, the total purchase/ sales ratio is 80
percent, while in the food industry it is about 60 percent. Explain what these numbers
mean.
Q.18 “In the long term, the success of any organization depends on its ability to create
and maintain a customer.” Do you agree? What does this have to do with purchasing and
supply management?
Q.19 Is purchasing a profession, justify your answer.
Q.20 What is negotiation, price is one of the basis of negotiation, list down the other
basis of negotiation.
UNIT 3
Q.1 “Logistics is a key to success of the supply chain of a business firm.” Explain.
Q.2 Discuss the role of logistics in a customer value delivery chain.
Q.3 How is logistics used for gaining a competitive advantage to deliver a superior
customer service?
Q.4 Discuss the relevance of various components of logistics in a supply chain
Q.5 Discuss the various customer service attributes of the logistical system.
Q.6 “value added service is an innovative approach adopted for gaining a competitive
edge.” Cite a few examples to support this statement.
Q.7 “Logistics outsourcing will considerably enhancethe competitiveness of the
organization.” Discuss.
Q.8 What is third party logistics? Explain its role in today’s context.
Q.9 “fourth- party logistics is an extension of third-party logistics with value addition.”
Comment.
Q.10 Why do corporations outsource the logistics function and what benefits do they get.
Q.11 Discuss the critical issues which are to be addressed before business process is
outsourced.

3. Q.12 “Building value in logistics outsourcing is the future of the logistics service
provider industry.” Comment
Q.13 what are the criteria for the selection of a logistic service provider.
Q.14 Explain the role the product package plays in the design of a supply chain or
distribution strategy.
Q.15 How do logistics operations differ for material movement within and between the
countries.
Q.16 What are the barriers you foresee in the cross-border logistics.
Q.17 “Information is the major factor in logistics competitiveness.” Explain.
Q.18 Discuss the difference between the consumer and logistical packaging. Support
your answer with illustration.
Q.19 What are the various materials in logistical packaging? Discuss their relative
advantages and disadvantages.
Q.20 What are the probable bottlenecks in returnable packaging system.
UNIT 4
Q.1 Identify the key factors to be considered when designing a distribution network.
Q.2 List down the factors influencing distribution network design.
Q.3 List down the six design options for a distribution network.
Q.4 Discuss the strengths and weaknesses of the various distribution network designs.
Q.5 A specialty chemical company is considering expanding its operations into Brazil,
where five companies dominate the consumption of specialty chemicals. What sort of
distribution network should this company utilize?
Q.6 A distributor has heard that one of the major manufacturers from which it buys is
considering going direct to the customer. What can the distributor do about this?
Q.7 What type of distribution networks are typically best suited for commodity items.
Q.8 What type of networks are best suited to highly differentiated products.
Q.9 Consider the sale of home improvement products at Home Depot or a chainof
hardware stores. Who can extract the greatest benefits from going online? Why?
Q.10 Why has e-business been more successful in the PC industry compared to the
grocery industry? In the future, how valuable is e-business likely to be in the PC industry.
Q.11 Amazon.com sells books, music, electronics, software, toys and home improvement
products online. In which product category does e-business offer the greatest advantage
compared to a retail store chain.
Q.12 In which product category does e-business offer the smallest advantage compared to
a retail store chain. Why?
Q.13 Why should an e-business such as Amazon.com build more warehouses as its sales
volume grows?
Q.14 Identify factors influencing supply chain network design decisions.
Q.15 Develop a framework for making network design decisions.
Q.16 How do import duties and exchange rates affect the location decision in a supply
chain?

4. Q.17 Consider a firm such as Dell, with very few production facilities worldwide. List
the pros and cons of this approach and why it may or may not be suitable for the
computer industry.
Q.18 How do the location and size of warehouses affect the performance of a firm such
as Amazon.com? What factors should Amazon.com take into account when making the
decision?
Q.19 What are the different roles played by the production facilities within a global
network?
Q.20 Consider a firm such as Ford, with more than 150 facilities worldwide. List the pros
and cons of having many facilities and why it may or may not be suitable for the
automobile industry.
UNIT 5
Q.1 How companies use aggregate planning to plan supply to maximize profits.
Q.2 Predictable variability is change in demand that can be forecasted. Comment.
Q.3 A firm can vary supply of product by controlling a combination of the 2 factors. List
them down.
Q.4 What are some obstacles to creating a flexible workforce? What are the benfits.
Q.5 Why would a firm want to offer pricing promotions in its peak-demand periods.
Q.6 Why would a firm want to offer pricing promotions during its low demand periods.
Q.7 How can a firm use pricing to change demand?
Q.8 Discuss why subcontractors can often affer products and services to a company more
cheaply then if the company produced them themselves.
Q.9 Discuss how you would set up a collaboration mechanism for the enterprises in a
supply chain.
Q.10 What are some lines that use common parts across many products? What are the
advantages of doing this?
Q.11 Discuss how a company can get marketing and operations to work together with the
common goal of coordinating supply and demand to maximize profitability.
Q.12 Manage supply to improve synchronization in a supply chain in the face of
predictable variability, Explain.
Q.13 Manage demand to improve synchronization in a supply chain in the face of
predictable variability, Explain.
UNIT 6
Q.1 Describe supply chain coordination.
Q.2 What is bullwhip effect and how does it relates to lack of coordination in a supply
chain.
Q.3 What is the impact of lack of coordination on the performance of a supply chain.
Q.4 Identify the causes of the bullwhip effect.
Q.5 What are the obstacles to achieving coordination in supply chain.
Q.6 Discuss managerial levers that help achieve coordination in supply chain.
Q.7 Describe actions that facilitates the building of strategic partnerships and trust within
a supply chain.

5. Q.8 In what way can improper incentives lead to a lack of coordination in a supply chain.
What countermeasures can be used to offset this effect?
Q.9 What factors lead to a batching of orders within a supply chain? How does this affect
coordination? What actions can minimize large batches and improve coordination?
Q.10 How do trade promotions and price fluctuations affect coordination in a supply
chain? What pricing and promotion policies can facilitate coordination?
Q.11 How is the building of strategic partnerships and trust valuable within a supply
chain.
Q.12 What issues must be considered when designing a supply chain relationship to
improve the chances of developing cooperation and trust?
Q.13 What issues must be considered when managing a supply chain relationship to
improve the chances of developing cooperation and trust?
Q.14 What are the different forms of CPFR possible in a supply chain.
Q.15 What are the different CPFR scenarios and how do they benefit supply chain
partners?