A supply chain ends with: A) Distributors |
D) A satisfied customer |
Which of the following statements is NOT true? A) An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting. |
A) 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? A) Restaurants |
B) Petroleum |
A <b>response strategy</b> requires suppliers be selected based primarily on: A) capacity, speed, and flexibility |
A) capacity, speed, and flexibility |
Which of the following statements is NOT one of the <b>differentiation strategy</b> decisions? A) Use buffer stocks to ensure speedy supply |
A) Use buffer stocks to ensure speedy supply |
Prior to embarking on supply chain design, operations managers must first consider: A) what kind of distribution to have |
B) "make-or-buy" and outsourcing designs |
What is transferring a firm’s activities that have traditionally been internal to external suppliers? A) vertical integration |
D) outsourcing |
Which of the following statements is NOT one of the <b>response strategy</b> decisions? A) gather and communicate market research data |
A) gather and communicate market research data |
The advantage of having a few suppliers is to: A) form a long-term relationship |
A) form a long-term relationship |
The advantage of having many suppliers is their willingness to: A) offer lower prices in the short-term |
A) offer lower prices in the short-term |
What is developing the ability to produce goods or services previously purchased or actually buying a supplier/distributor? A) outsourcing |
C) vertical integration |
Which of the following strategies is part collaboration, part purchasing from few suppliers, and part vertical integration? A) joint ventures |
B) keiretsu networks |
Which of the following could reduce distribution risk? A) careful selection, monitoring and effective contracts with penalties |
A) careful selection, monitoring and effective contracts with penalties |
Which of the following mitigation tactics could reduce economic risk? A) subcontractors on retainer |
C) purchasing contracts that address price fluctuations |
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion? A) redundant databases |
D) alternate sourcing |
Which of the following statements is true regarding cross-sourcing? A) cross-sourcing develops the ability to produce goods or services previously purchased or actually buying a supplier or distributor |
B) 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? A) Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation, shipping and receiving. |
C) The bullwhip effect occurs as orders 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? A) advanced shipping notice |
C) 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: A) e-procurement |
B) 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: A) postponement |
A) postponement |
Which of the following is the first stage of supplier selection? A) negotiations |
B) supplier evaluation |
Which negotiation strategy bases price on a published, auction, or index price? A) cost-based price model |
D) market-based price model |
With regard to the cost-based price model negotiation strategy, which of the following is true? A) potential suppliers each submit quotes as to price, delivery, etc. |
C) prices are based upon supplier costs |
Which of the following is NOT one of the benefits accrued from a centralized purchasing function? A) increase the duplication of tasks |
A) increase the duplication of tasks |
Trucking: A) is increasingly using computers to manage its operations |
A) is increasingly using computers to manage its operations |
Airfreight A) is the best way to transport natural gas |
B) is a fast-growing mode of shipping |
Supply chain managers outsource logistics to meet three goals: A) drive down inventory investment, improve delivery reliability and speed, and provide better market response. |
C) drive down inventory investment, lower delivery costs, and improve delivery reliability and speed |
Which of the following statements is NOT true regarding channel assembly? A) channel assembly treats distributors more as manufacturing partners than as distributors |
D) channel assembly sends individual components, modules, and finished products, to the distributor |
Three criteria for designing distribution networks to meet customer expectations are: A) low cost, rapid response and product choice |
D) rapid response, product choice, and service |
Which of the following statements is NOT generally an implication stemming from an increase in the number of facilities? A) quicker response |
C) decreased total logistics cost |
When determining the optimal number of facilities, logistic-related costs do NOT usually include which of the following costs? A) inventory |
C) purchasing |
Which of the following statements is NOT true? A) an effective supplier management program and an effective distribution management program may make a difference between supply chain success and failure |
D) finding the optimal number of facilities represents a critical and static decision |
Which of the following statements is NOT true? A) a closed-loop supply chain prepares for returns prior to product introduction |
D) a closed-loop supply chain is designed to optimize only reverse flows |
Which of the following is NOT true about reverse logistics as compared to forward logistics? A) pricing is dependent on many factors |
C) speed is often very important |
What is a supply chain designed to optimize both forward and reverse flows? A) open-loop supply chain |
D) closed-loop supply chain |
Which organization has developed principle and standards to be used as guidelines for ethical behavior? A) Institute for Vendor Management |
D) Institute for Supply Management |
Three common measures of supply chain performance are: A) percentage invested in inventory, debt/equity ratio, and weeks of supply |
B) percentage invested in inventory, inventory turnover, and weeks of supply |
The cost to produce the goods or services sold for a given period is referred to as: A) inventory investment |
B) cost of goods sold |
ISDS 3115 Chapter 11 Concept Questions
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