Global Supply Chains Quiz

Question 1A factory receives components but cannot start assembly because one required input is missing. What does this show?

Assembly is interrupted by a missing input from an earlier stageDelivered parts can compensate for a missing input through higher throughputThe interruption chiefly concerns the supplier’s own output scheduleAssembly capacity determines output independently of input availability

Question 2Why might processing and final assembly occur in different places?

A common product gives its stages similar location requirementsShorter distance is a sufficient basis for choosing the cheapest siteCross-border specialization reduces the importance of coordinating handoffsThe tasks require different combinations of resources and production skills

Question 3What does logistics add beyond physically moving cargo?

Driving a loaded truck along the road to its destinationPromoting the finished product to create demand at its destinationCoordinating the handoffs and storage needed for timely deliveryLocating mineral deposits close to the planned assembly site

Question 4A retailer keeps extra stock of an essential part. What trade-off follows?

A larger stock reduces uncertainty without affecting the funds neededProtection against stockouts comes with storage and financing costsInventory costs begin when customers purchase the goodsHolding extra stock lowers the capital tied up in inventory

Question 5For a new order, a buyer chooses a supplier with a lower unit price but longer, unreliable deliveries. What should be compared?

The total cost of obtaining usable inputs rather than the purchase priceThe unit price, leaving post-purchase costs to the logistics budgetTransport distance as a proxy for the supplier’s quality and reliabilityThe delivery date guaranteed by the supplier’s production capacity

Question 6How does a value-chain analysis differ from a supply-chain map?

It traces transport routes rather than production tasksIt traces value added and the distribution of returns across stagesIt measures each stage’s profit through the distance the product travelsIt replaces supplier records with the product’s final selling price

Question 7Two suppliers depend on the same port. What risk can a simple supplier count miss?

Separate contracts indicate independent routes and disruption risksPort dependence chiefly affects the buyer’s outbound deliveriesThe shared facility provides a backup route if one supplier is delayedA disruption at the shared port interrupts both supply routes

Question 8A shop has empty shelves while scheduled trucks arrive on time. Which explanation remains possible?

The schedule shows that upstream production matched planned quantitiesA route-planning delay kept the scheduled trucks from reaching the shopUpstream production fell despite the timely arrival of the trucksThe recorded arrivals show the goods were available to put on the shelves

Question 9What makes a product batch traceable through several processing sites?

Reliable records link a batch’s materials and successive handoffsA country-of-origin label identifies the route through the earlier stagesA supplier list establishes which batch each listed firm handledThe current delivery estimate establishes the product’s processing history

Question 10A firm moves all production to one domestic site. Why might disruption risk remain?

The new site’s national location establishes its independence from foreign inputsA domestic location does not remove shared hazards or foreign dependenciesShorter routes provide spare capacity when the production site is disruptedRemoving border crossings addresses the main source of uncertainty in the chain

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Global Supply Chains Quiz

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