A supply chain ends with |
a satisfied customer. |
Which of the following statements is NOT true? |
An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. |
Which of the following industries has the highest supply chain cost as a percentage of sales? |
petroleum |
A response strategy requires suppliers be selected based primarily on |
capacity, speed, and flexibility. |
Which of the following statements is NOT one of the differentiation strategy decisions? |
Use buffer stocks to ensure speedy supply. |
Prior to embarking on supply chain design, operations managers must first consider |
"make-or-buy" and outsourcing decisions. |
What is transferring a firm’s activities that have traditionally been internal to external suppliers? |
outsourcing |
Which of the following statements is NOT one of the response strategy decisions? |
gather and communicate market research data |
The advantage of having few suppliers is to |
form a long-term relationship |
The advantage of having many potential suppliers is their willingness to |
offer lower prices in the short term. |
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor? |
vertical integration |
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? |
keiretsu networks |
Which of the following could reduce distribution risk? |
careful selection, monitoring and effective contracts with penalties |
Which of the following mitigation tactics could reduce economic risk? |
purchasing contracts that address price fluctuations |
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? |
alternate sourcing |
Which of the following statements is true regarding cross-sourcing? |
Cross-sourcing uses one supplier for a component and a second supplier for another component, where each supplier acts as a backup for the other. |
Which of the following statements is NOT true regarding the bullwhip effect? |
The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations decreasing at each step in the sequence. |
What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship? |
blanket order |
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of |
vendor-managed inventory. |
The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware store, so the paint manufacturer had created clever workaround. The workaround was a computer-based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired shade, in this case, Musical Mist. The hardware store now needed to stock only the base paint, this machine, and a small supply of paint pigments in order to create the thousands of colors in its catalog. This scenario is a prime example of |
postponement. |
Which of the following is the first stage of supplier selection? |
supplier evaluation |
Which negotiation strategy bases price on a published, auction, or index price? |
market-based price model |
With regard to the cost-based price model negotiation strategy, which of the following is true? |
Prices are based upon supplier costs. |
Which of the following is NOT one of the benefits accrued from a centralized purchasing function? |
Increase the duplication of tasks. |
Trucking |
is increasingly using computers to manage its operations |
Airfreight |
is a fast-growing mode of shipping |
Supply chain managers outsource logistics to meet three goals: |
drive down inventory investment, lower delivery costs, and improve delivery reliability and speed. |
Which of the following statements is NOT true regarding channel assembly? |
Channel assembly sends individual components, modules, and finished products, to the distributor. |
Which of the following statements is NOT true? |
A closed-loop supply chain is a designed to optimize only reverse flows. |
Which of the following is NOT true about reverse logistics as compared to foward logistics? |
Speed is often very important. |
What is a supply chain designed to optimize both forward and reverse flows? |
closed-loop supply chain |
Which organization has developed principles and standards to be used as guidelines for ethical behavior? |
Institute for Supply Management |
Chapter 11
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