Hypothesis 3: Insurance fraud. The deviation is a false flag to trigger a “constructive total loss” claim. The cargo is over-insured, and the ship’s owner is financially distressed. Impact: The automotive factory discovers its tier-3 supplier for microchips was on that vessel. With no chips, production halts for 11 days, triggering a $9.2 million loss and a force majeure declaration.
Most professors use a mix of multiple-choice, short answer, and quantitative problems. Here is what you will likely see.
Good luck. May your demand forecasts be accurate and your safety stocks sufficient.
If you are currently preparing for your test, let me know which specific areas you want to focus on. I can generate a , break down complex mathematical formulas , or provide a step-by-step review of a specific supply chain case study . Share public link
Be aware of these traps:
"Describe the role of facilities, inventory, transportation, information, and sourcing as drivers of supply chain performance."
Midterm questions often assess your understanding of how companies structure their supply chains:
"What factors should a company consider when deciding between a decentralized (many local warehouses) or centralized (few regional hubs) distribution network?"
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Economic Order Quantity (EOQ) model assumes: A) Variable demand rate B) No ordering cost C) Constant demand rate and instantaneous replenishment D) Stochastic lead times
Levi Strauss has developed a global sourcing policy addressing social and environmental standards for its suppliers.
Midterm exams heavily feature quantitative problems. You must know when to apply specific formulas and how to interpret the results. Question: Inventory Management (Economic Order Quantity)
Inventory concepts are tested with both conceptual questions and quantitative problems: Hypothesis 3: Insurance fraud
"The supply chain should maximize..." (Answer: Manage materials, info, and financials) [1].
Which or framework your class follows (e.g., Chopra, Krajewski).
You are ordering holiday sweaters. Cost = $15, Price = $40, Salvage value = $5. Demand is normally distributed with a mean of 1,000 and a standard deviation of 200. Calculate the optimal service level (Critical Ratio) and the optimal order quantity.