How Well Do You Understand Pharmaceutical Supply Chain Management?

1.

What does the term "sales and operations planning" (S&OP) represent?
- A.
  
  A computer model to determine available supply-chain capacity.
- B.
  
  A system for long-range planning of revenues and costs
- C.
  
  A structured senior management process to optimize customer service and capacity
- D.
  
  A technique devised by Toyota to optimize operations
- E.
  
  None of the above
Correct Answer
C. A structured senior management process to optimize customer service and capacity

Explanation
The term "sales and operations planning" (S&OP) represents a structured senior management process to optimize customer service and capacity. This process involves aligning sales and operations functions within an organization to ensure that customer demand is met efficiently while maximizing the utilization of available resources. It includes activities such as demand forecasting, inventory management, production planning, and capacity optimization. By implementing S&OP, organizations can improve customer satisfaction, reduce costs, and enhance overall operational performance.

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2.

What is meant by the term "category management?"
- A.
  
  Planning similar items onto the same production line
- B.
  
  Management of procurement for a defined category of products or materials
- C.
  
  Grouping shipments together to minimize transport costs and delays
- D.
  
  A process to allocate customer orders to products
- E.
  
  None of the above
Correct Answer
B. Management of procurement for a defined category of products or materials

Explanation
Category management refers to the practice of managing the procurement process for a specific category of products or materials. This involves strategically organizing and overseeing the sourcing, purchasing, and inventory management of items within a particular category. By focusing on a defined category, businesses can optimize their procurement activities, negotiate better deals with suppliers, and ensure the availability of the right products at the right time. This approach helps streamline operations, improve cost-efficiency, and enhance overall supply chain performance.

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3.

Which of the following should be managed when using a make-to-order planning policy?
- A.
  
  Production schedule adherence
- B.
  
  Capacity
- C.
  
  Customer service levels
- D.
  
  Lead time
- E.
  
  Stock turns
- F.
  
  A, c, and e
- G.
  
  B and d
Correct Answer
G. B and d

Explanation
When using a make-to-order planning policy, the aspects that should be managed are lead time and capacity. Lead time refers to the time it takes to fulfill a customer's order, which is crucial in a make-to-order system where products are not pre-made. Capacity management is important to ensure that the production process can meet the demand and deliver the orders on time. Therefore, option b and d (lead time and capacity) are the correct choices for managing when using a make-to-order planning policy.

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4.

Who devised the theory of constraints?
- A.
  
  W. Edwards Deming
- B.
  
  J.M. Juran
- C.
  
  Eli Goldratt
- D.
  
  Oliver Wight
- E.
  
  F.W. Taylor
Correct Answer
C. Eli Goldratt

Explanation
Eli Goldratt devised the theory of constraints. He was an Israeli physicist, philosopher, and management consultant. Goldratt developed the theory of constraints as a methodology to improve organizations' performance by identifying and managing the constraints that limit their productivity. His book "The Goal" introduced the theory of constraints to a wider audience and became a seminal work in the field of operations management. Goldratt's theory emphasizes the importance of identifying and addressing bottlenecks in the production process to optimize overall performance.

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5.

What are integrators?
- A.
  
  Third-party logistics providers owning the assets involved in transportation (e.g. aircraft) and storage
- B.
  
  Companies that consolidate shipments into manageable loads
- C.
  
  Contract manufacturers offering a one-stop shop
- D.
  
  Consultants specializing in systems integration
- E.
  
  Brokers of transport services
Correct Answer
A. Third-party logistics providers owning the assets involved in transportation (e.g. aircraft) and storage

Explanation
Integrators are third-party logistics providers who own the assets involved in transportation and storage. This means that they have their own fleet of vehicles, including aircraft, and warehouses for storing goods. They offer comprehensive logistics services to their clients, handling the entire supply chain process from transportation to warehousing. By owning their own assets, integrators have more control over the logistics process and can provide efficient and reliable services to their customers.

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6.

You discover a sudden shortage of a key material. What should you do first?
- A.
  
  Report to regulators
- B.
  
  Re-evaluate sourcing strategy and inventory policy
- C.
  
  Tell senior management
- D.
  
  Phone a friend
- E.
  
  All of the above
Correct Answer
B. Re-evaluate sourcing strategy and inventory policy

Explanation
When faced with a sudden shortage of a key material, the first step should be to re-evaluate the sourcing strategy and inventory policy. This is important because it allows for a thorough examination of the current processes and procedures in place for acquiring and managing inventory. By doing so, it becomes possible to identify any potential weaknesses or inefficiencies that may have contributed to the shortage. Once this evaluation is complete, appropriate adjustments and improvements can be made to ensure a more reliable and efficient supply chain. Reporting to regulators and informing senior management may be necessary steps to take, but they should come after re-evaluating the sourcing strategy and inventory policy.

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7.

Incoterms 2010 are used in trading agreements to
- A.
  
  Allocate responsibility for cost, risk and ownership between buyer and seller
- B.
  
  Specify delivery terms and conditions
- C.
  
  Fix the price and delivery of a shipment at an agreement date
- D.
  
  Determine allocation of risk and cost between buyer and seller
- E.
  
  None of the above
Correct Answer
D. Determine allocation of risk and cost between buyer and seller

Explanation
Incoterms 2010 are a set of internationally recognized rules that define the responsibilities of buyers and sellers in international trade. They determine the allocation of risk and cost between the buyer and seller by specifying who is responsible for various aspects of the shipment, such as transportation, insurance, and customs clearance. By using Incoterms 2010, both parties can have a clear understanding of their obligations and avoid any misunderstandings or disputes.

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8.

The EU Falsified Medicines Directive dictates which of the following:
- A.
  
  Extending regulation to brokers of medicines
- B.
  
  Strengthened obligations on wholesale dealers
- C.
  
  Requiring safety features for medicines at risk of being counterfeited
- D.
  
  Improving controls on quality of active ingredients and certain excipients
- E.
  
  That manufacturers determine the origin and integrity of the upstream supply chain
- F.
  
  All of the above
Correct Answer
F. All of the above

Explanation
The EU Falsified Medicines Directive encompasses all of the mentioned regulations and requirements. It extends regulation to brokers of medicines, strengthens obligations on wholesale dealers, requires safety features for medicines at risk of being counterfeited, improves controls on the quality of active ingredients and certain excipients, and mandates that manufacturers determine the origin and integrity of the upstream supply chain.

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How Well Do You Understand Pharmaceutical Supply Chain Management?

What does the term "sales and operations planning" (S&OP) represent?

What is meant by the term "category management?"

Which of the following should be managed when using a make-to-order planning policy?

Who devised the theory of constraints?

What are integrators?

You discover a sudden shortage of a key material. What should you do first?

Incoterms 2010 are used in trading agreements to

The EU Falsified Medicines Directive dictates which of the following: