Supply Chain Management Midterm Exam Questions Better Jun 2026

Inventory acts as a buffer against uncertainty. Midterm exams heavily test your ability to balance the costs of holding inventory against the risks of running out of stock. Key concepts include demand forecasting models, safety stock calculations, and ordering cycles. 3. Sourcing and Logistics Network Design

"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?"

: Identify and explain the three main flows in a supply chain: Information Financials/Cash [4, 9, 10]. Bullwhip Effect

Moving Averages, Exponential Smoothing, and Linear Regression. You must understand how to calculate and interpret forecast error using Mean Absolute Deviation (MAD) or Mean Squared Error (MSE). 4. Inventory Management (Foundational) supply chain management midterm exam questions

Understanding how information distortion amplifies variance upstream in the supply chain.

Pull systems (e.g., make-to-order) are demand-driven. Push systems (e.g., make-to-stock) are forecast-driven.

EOQ=2DSHEOQ equals the square root of the fraction with numerator 2 cap D cap S and denominator cap H end-fraction end-root Inventory acts as a buffer against uncertainty

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

Forward-buying behaviors triggered by temporary discounts, promotions, or trade deals.

Calculate the total annual holding and ordering costs at this volume. Calculate the number of orders placed per year. 1. Calculate EOQ: The EOQ formula is: A contract manufacturer in Vietnam offers $480 per

Levi Strauss has developed a global sourcing policy addressing social and environmental standards for its suppliers.

Many midterm exams feature a single comprehensive problem that requires you to calculate forecasting data, feed that data into an EOQ formula, and then determine safety stock values. Practice connecting these formulas together.