Supply Chain & Costing interview questions

1. A.purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price
2. B.bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price
3. C.identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level
4. D.comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property

Answer + AI explanation with Pro

1. A.Should-cost
2. B.Vendor development
3. C.Make-or-buy decision
4. D.Total cost of ownership

Answer + AI explanation with Pro

1. A.Should-cost — comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
2. B.Should-cost — inventory level, equal to demand during lead time plus safety stock, at which a replenishment order is released
3. C.Should-cost — classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely
4. D.Should-cost — bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price

Answer + AI explanation with Pro

1. A.classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely
2. B.bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price
3. C.identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level
4. D.purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price

Answer + AI explanation with Pro

1. A.ABC analysis
2. B.Bullwhip effect
3. C.Incoterms 2020
4. D.Vendor development

Answer + AI explanation with Pro

1. A.ABC analysis — bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price
2. B.ABC analysis — classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely
3. C.ABC analysis — comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
4. D.ABC analysis — ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer

Answer + AI explanation with Pro

1. A.comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
2. B.classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely
3. C.identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level
4. D.ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer

Answer + AI explanation with Pro

1. A.Make-or-buy decision
2. B.Incoterms 2020
3. C.Vendor development
4. D.Reorder point

Answer + AI explanation with Pro

1. A.Make-or-buy decision — comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
2. B.Make-or-buy decision — classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely
3. C.Make-or-buy decision — purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price
4. D.Make-or-buy decision — amplification of small demand changes into large order swings upstream in a supply chain, driven by batching, forecasting and lead times

Answer + AI explanation with Pro

1. A.identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level
2. B.buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level
3. C.bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price
4. D.inventory level, equal to demand during lead time plus safety stock, at which a replenishment order is released

Answer + AI explanation with Pro

1. A.Vendor development
2. B.Reorder point
3. C.Incoterms 2020
4. D.Safety stock

Answer + AI explanation with Pro

1. A.Safety stock — classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely
2. B.Safety stock — buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level
3. C.Safety stock — purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price
4. D.Safety stock — identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level

Answer + AI explanation with Pro

1. A.buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level
2. B.inventory level, equal to demand during lead time plus safety stock, at which a replenishment order is released
3. C.amplification of small demand changes into large order swings upstream in a supply chain, driven by batching, forecasting and lead times
4. D.ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer

Answer + AI explanation with Pro

1. A.Vendor development
2. B.ABC analysis
3. C.Should-cost
4. D.Reorder point

Answer + AI explanation with Pro

1. A.Reorder point — comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
2. B.Reorder point — bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price
3. C.Reorder point — inventory level, equal to demand during lead time plus safety stock, at which a replenishment order is released
4. D.Reorder point — amplification of small demand changes into large order swings upstream in a supply chain, driven by batching, forecasting and lead times

Answer + AI explanation with Pro

1. A.identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level
2. B.buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level
3. C.ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer
4. D.purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price

Answer + AI explanation with Pro

1. A.Vendor development
2. B.Reorder point
3. C.ABC analysis
4. D.Total cost of ownership

Answer + AI explanation with Pro

1. A.Vendor development — classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely
2. B.Vendor development — inventory level, equal to demand during lead time plus safety stock, at which a replenishment order is released
3. C.Vendor development — purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price
4. D.Vendor development — identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level

Answer + AI explanation with Pro

1. A.comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
2. B.ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer
3. C.identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level
4. D.buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level

Answer + AI explanation with Pro

1. A.Vendor development
2. B.Bullwhip effect
3. C.Should-cost
4. D.Incoterms 2020

Answer + AI explanation with Pro

1. A.Incoterms 2020 — buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level
2. B.Incoterms 2020 — bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price
3. C.Incoterms 2020 — comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
4. D.Incoterms 2020 — ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer

Answer + AI explanation with Pro

1. A.purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price
2. B.buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level
3. C.ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer
4. D.comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property

Answer + AI explanation with Pro

1. A.Safety stock
2. B.Total cost of ownership
3. C.Incoterms 2020
4. D.Should-cost

Answer + AI explanation with Pro

1. A.Total cost of ownership — purchase price plus logistics, inventory, quality failures, tooling and obsolescence over the life of the part, not just unit price
2. B.Total cost of ownership — ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer
3. C.Total cost of ownership — buffer of Z × σ × √lead time held against demand and supply variability to hit a target service level
4. D.Total cost of ownership — identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level

Answer + AI explanation with Pro

1. A.amplification of small demand changes into large order swings upstream in a supply chain, driven by batching, forecasting and lead times
2. B.comparing full in-house cost with purchase price while weighing core competency, capacity, quality risk and intellectual property
3. C.identifying, auditing, sampling and PPAP-approving a new supplier, then coaching it to the required quality, cost and delivery level
4. D.bottom-up estimate of material, conversion, tooling, overhead and margin built independently of the quote and used to negotiate price

Answer + AI explanation with Pro

1. A.Safety stock
2. B.Reorder point
3. C.Incoterms 2020
4. D.Bullwhip effect

Answer + AI explanation with Pro

1. A.Bullwhip effect — inventory level, equal to demand during lead time plus safety stock, at which a replenishment order is released
2. B.Bullwhip effect — amplification of small demand changes into large order swings upstream in a supply chain, driven by batching, forecasting and lead times
3. C.Bullwhip effect — ICC trade terms such as EXW, FOB, CIF and DDP that fix where risk, cost and customs duty pass from seller to buyer
4. D.Bullwhip effect — classifying inventory so A items (10–20% of items) hold 70–80% of value and get tight control while C items are managed loosely

Answer + AI explanation with Pro