Supply Chain Management Midterm Exam Questions — Full & Full
Identify two specific failures in FreshFruit’s demand forecasting process. Propose one quantitative forecasting method (e.g., moving average, exponential smoothing, causal model) that could have captured the viral trend, and explain why that method would have worked better. Part 2: The Warehouse of Regret (Inventory Management) The Story: To recover, the CEO ordered a "mega-purchase" of dragon fruit directly from a new farm in Vietnam. They bought 3 months’ supply at once to get a 40% discount. The fruit arrived just as a new CDC report warned of a minor pesticide residue issue (not harmful, but scary for consumers). Demand crashed by 70%. The fruit had a shelf life of 10 days.
Draw (or describe in words) a causal loop diagram showing how one failure triggered the next. Identify the single root cause that, if fixed first, would have prevented the most damage. Justify your choice in two sentences. End of Exam. supply chain management midterm exam questions
Instructions: Read the story below. Then answer the questions that follow. Each question tests a specific SCM principle illustrated in the narrative. Assume you are the new Supply Chain Director. Part 1: The Glory Days (Forecasting & Demand Planning) The Story: FreshFruit Co. was a mid-sized distributor of organic tropical fruit in the Midwest. For a decade, they used a simple rule: "Order 20% more than last year’s same month." It worked well until a viral TikTok video featured their "Dragon Fruit & Lychee Smoothie Bowl." Overnight, demand for dragon fruit exploded by 600%. They bought 3 months’ supply at once to get a 40% discount
The CEO panicked. The forecasting team had not adjusted their models. They kept ordering based on last year’s data. By week three, shelves were empty. By week five, angry retailers switched to a competitor, JungleFruit Inc. The fruit had a shelf life of 10 days
Explain the trade-off between environmental sustainability goals and operational performance (cost, quality, speed) in this case. Describe one real, verifiable method (e.g., life cycle assessment, circular supply chain, or third-party certification like B Corp) that FreshFruit should have used before launching Project GreenLeaf to avoid the greenwashing accusation. Part 6: The Digital Pivot (Technology & Integration) The Story: A new interim CEO was hired—you. You implement a cloud-based SCM platform that connects suppliers, warehouses, and retailers in real time. Within 3 months, you reduce spoilage to 8%, cut freight costs by 22%, and forecast accuracy improves to 89%. But the old warehouse manager quits, complaining, "You’re replacing human intuition with robots."