Harvard GSCM — Practice Quiz

Room 1 — Design Room

Rule: Pick the option with the highest profit per unit.
Profit = Price − Total Cost

ID	Option	+Cost	Total Cost	Profit/Unit	Margin%

Question

Room 2 — Forecasting Room

Rule: Average the 6 forecasters. Multiply by 8 (8-month sales window May–Dec).

Forecaster	Estimate (units)

Question 1

What is the consensus forecast? (average of all 6)

Question 2

Sales window is 8 months. What is total demand?

Room 3 — Production Room

Model A: cheapest supplier. Model B: fastest supplier.

Supplier	Cost/Unit	Lead Time

Question 1

Model A is cost-sensitive. Which supplier?

Question 2

Model B needs speed for demand spikes. Which supplier?

Room 4 — Boardroom

Match each board member to their priority. Click to reveal.

Bonus — Newsvendor (Model B)

Model B | Price: $285 | Cost: $195

Underage cost (Cu) = Price − Cost = $285 − $195 = $90
Overage cost (Co) = Cost = $195

If Co > Cu → UNDERPRODUCE
If Cu > Co → OVERPRODUCE

Question

Model B: demand is volatile and unpredictable.
Overproduce or underproduce?

Math Cheat Sheet — Memorize these 3

Profit = Price − Total Cost
Total Cost = Base Cost + Design Add-on

Margin% = (Profit / Price) × 100

Total Demand = Consensus × 8
8-month window: May–December