Supply Chain Management Midterm Exam Questions Jun 2026

"You are the supply chain director for a laptop manufacturer. Your in-house production cost is $450 per unit, with a fixed cost of $1M. A contract manufacturer in Vietnam offers $480 per unit with zero fixed cost. At what volume are you indifferent between the two options?"

Ultimately, supply chain management is about designing flows that maximize value to the customer while minimizing waste. The best way to prepare for your midterm is to stop asking "What is the answer to question 4?" and start asking "If lead time doubles, what happens to safety stock?" (Answer: It increases by the square root of 2.)

Answer hints:

Define the Bullwhip Effect. Identify three distinct operational causes and propose one specific mitigation strategy for each.

This section covers the introductory material, focusing on the definition of supply chains and high-level strategic alignment. supply chain management midterm exam questions

These questions test your understanding of how supply chains align with high-level business goals. Professor prompts in this category require you to explain the "why" behind supply chain design.

The Bullwhip Effect is the phenomenon where demand fluctuation amplifies as it moves upstream in the supply chain, from the retailer to the manufacturer. Causes and Mitigations: "You are the supply chain director for a laptop manufacturer

A distributor faces an annual demand of 10,000 units for a product. The cost to place a single order is $50, and the annual holding cost per unit is $2. Calculate the Economic Order Quantity (EOQ) and the total annual inventory cost. Demand Forecasting Techniques

Ready to create a quiz? Use Canvas to test your knowledge with a custom quiz Get started At what volume are you indifferent between the two options