FINAL EXAM (Supply Chain Management)

F

(T/F) Cycle inventory is inventory that is built up to counter predictable variability in demand.

F

(T/F) The major drivers of supply chain performance are customers, facilities, inventory, transportation, and information.

D. is kept fixed between replenishment cycles.

Typically, in continuous review policies, the lot size to order A. is not known until after the order is placed. B. is the same as in a periodic review policy. C. varies with the square root of demand. D. is kept fixed between replenishment cycles.

B. determined indirectly and can change.

Under a cap and trade system, the price of emissions is A. determined directly as a function of the output. B. determined indirectly and can change. C. determined indirectly and is invariant. D. determined directly and is invariant.

F

(T/F) The Internal Supply Chain Management (ISCM) macro process consists of all processes at the interface between the firm and the customer that work to generate, receive, and track customer orders.

D. Minimum order quantity

A global supply chain with offshoring would tend to see which of these performance dimensions increase? A. Labor costs B. On time delivery C. Supply chain visibility D. Minimum order quantity

B. the fixed ordering cost and is denoted by S.

All costs that do not vary with the size of the order but are incurred each time an order is placed are referred to as A. the material cost and is denoted by C. B. the fixed ordering cost and is denoted by S. C. the holding cost and is denoted by H. D. the purchase price and is denoted by P.

D. echelon inventory.

All inventory between a given stage in the supply chain and the final customer is called the A. cycle inventory. B. safety inventory. C. demand inventory. D. echelon inventory.

D. maximize performance at a minimum cost.

Efficient supply chains A. respond quickly to demand. B. have higher margins because price is not a prime customer driver. C. maintain buffer inventory to deal with demand/supply uncertainty. D. maximize performance at a minimum cost.

T

(T/F) A company's ability to find a balance between responsiveness and efficiency that best matches the needs of the customer it is targeting is the key to achieving strategic fit.

F

(T/F) A distributor makes investment decisions regarding the transportation infrastructure and then makes operating decisions to try to maximize the return from these assets.

F

(T/F) A firm can meet customer needs by using tailored transportation to provide the appropriate transportation choice based on customer and product characteristics, but at a higher cost.

T

(T/F) A milk run is a route in which a truck either delivers product from a single supplier to multiple retailers or goes from multiple suppliers to a single retailer.

T

(T/F) Reactive processes operate in a predictable environment where customer demand is known.

F

(T/F) A push/pull view of the supply chain is very useful when considering operational decisions relation to supply chain design.

T

(T/F) A supply chain is dynamic and involves the constant flow of information, product and funds among different stages.

B) inventory.

(T/F) All raw materials, work in process, and finished goods within a supply chain are known as A) facilities. B) inventory. C) transportation. D) information. E) customers.

T

(T/F) Ignoring inventory costs when making transportation decisions can result in choices that worsen the performance of a supply chain.

T

(T/F) Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the other drivers.

T

(T/F) Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain's efficiency and responsiveness.

T

(T/F) Quasi-market prices for transportation infrastructure result in higher prices at peak locations and times and lower prices otherwise.

F

(T/F) Reactive processes operate in an uncertain environment because customer demand is unknown.

T

(T/F) Seasonal inventory is inventory that is built up to counter predictable variability in demand.

F

(T/F) Supply chain success should be measured in terms of individual firm profit and not in terms of profits for the whole supply chain.

T

(T/F) The Internal Supply Chain Management (ISCM) macro process consists of all supply chain processes that are internal to the firm and work to plan for and fulfill customer orders.

T

(T/F) The combination of a high density of customers and short logistical distance is best served by a private fleet making milk runs.

F

(T/F) The components of inventory decisions include capacity, cycle inventory, safety inventory, seasonal inventory, and sourcing.

T

(T/F) The two major types of facilities are production sites and storage sites.

supply chain coordination.

30. When all the different stages of a supply chain work toward the objective of maximizing total supply chain profitability, rather than each stage devoting itself to its own profitability without considering total supply chain profit, it is known as

D. command and control

A ________ approach requires a government or regulatory agency to establish and enforce standards. A. laissez faire B. superior-inferior C. slap and tickle D. command and control

B. Marketing and Sales

A ___________ strategy specifies how the market will segmented and how the product will be positioned, priced, and promoted. A. Product Development B. Marketing and Sales C. Supply Chain D. Finance

C. each plant in the network is capable of producing at least two products.

A chained network configuration means that A. all plants in the network are capable of producing one product. B. all plants in the network are capable of producing all products. C. each plant in the network is capable of producing at least two products. D. each plant in the network is capable of producing one product.

A. periodic review.

A company that checks inventory status at regular periodic intervals and places an order to raise the inventory level to a specified threshold is using A. periodic review. B. continuous review. C. daily review. D. occasional review.

B. continuous review.

A company that tracks inventory and places an order for a lot size Q when the inventory declines to the reorder point (ROP) is using A. periodic review. B. continuous review. C. occasional review. D. daily review.

A. defines the set of customer needs that it seeks to satisfy through its products and services.

A company's competitive strategy A. defines the set of customer needs that it seeks to satisfy through its products and services. B. specifies the portfolio of new products that it will try to develop. C. specifies how the market will segmented and how the product will be positioned, priced, and promoted. D. determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.

B. specifies the portfolio of new products that it will try to develop.

A company's product develop strategy A. defines the set of customer needs that it seeks to satisfy through it products and services. B. specifies the portfolio of new products that it will try to develop. C. specifies how the market will be segmented and how the product will be positioned, priced, and promoted. D. determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.

D. determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.

A company's supply chain strategy A. defines the set of customer needs that it seeks to satisfy through it products and services. B. specifies the portfolio of new products that it will try to develop. C. specifies how the market will be segmented and how the product will be positioned, priced, and promoted. D. determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.

A) buyback or returns contract.

A contract that allows a retailer to return unsold inventory up to a specified amount, at an agreed upon price is a A) buyback or returns contract. B) revenue-sharing contract. C) quantity flexibility contract. D) quantity discount contract

C) quantity flexibility contract.

A contract that allows the buyer to modify the order (within limits agreed to by the supplier) as demand visibility increases closer to the point of sale is a A) buyback or returns contract. B) revenue-sharing contract. C) quantity flexibility contract. D) quantity discount contract

D) shared savings contract

A contract that is used to induce performance improvement from a supplier along dimensions, such as lead time, where the benefit of improvement accrues primarily to the buyer, whereas the effort for improvement comes primarily from the supplier is a A) buyback or returns contract. B) revenue-sharing contract. C) quantity flexibility contract. D) shared savings contract

B) revenue-sharing contract.

A contract where the buyer pays a minimal amount for each unit purchased from the supplier but shares a fraction of the revenue for each unit sold is a A) buyback or returns contract. B) revenue-sharing contract. C) quantity flexibility contract. D) quantity discount contract

B. a graphic device used to evaluate decisions under uncertainty.

A decision tree is A. a graphic device used to evaluate decision under certainty. B. a graphic device used to evaluate decisions under uncertainty. C. a tabular device used to evaluate decisions under certainty. D. a tabular device used to evaluate decisions under uncertainty.

C. new product development

A supply chain strategy involves decisions regarding all of the following except A. inventory B. transportation C. new product development D. operating facilities

A) Buyback or returns contract

A downside to which contract is that it leads to surplus inventory that must be salvaged or disposed? A) Buyback or returns contract B) Revenue-sharing contract C) Quantity flexibility contract D) Hybrid contract

D. B and C only.

A firm can handle predictable variability by managing A. supply using capacity, inventory, trade promotions, and backlogs. B. supply using capacity, inventory, subcontracting, and backlogs. C. demand using short-term price discounts and trade promotions. D. B and C only.

A. production capacity and inventory.

A firm can vary supply of a product by controlling A. production capacity and inventory. B. production capacity and price promotions. C. price promotions and inventory. D. production capacity and inventory promotions.

A. both responsiveness and cost performance

A firm that is not on the cost-responsiveness efficient frontier can improve A. both responsiveness and cost performance B. only responsiveness C. only cost performance D. responsiveness, but not cost performance.

B. identification and resolution of exceptions.

A fundamental aspect of successful collaboration is A. sharing product designs. B. identification and resolution of exceptions. C. no stock outs. D. a duplication of effort.

B. Increases the length of the product flow and increase the duration of the information flow.

A global supply chain with offshoring A. Reduces the duration of the cash flow and reduces the length of the product flow. B. Increases the length of the product flow and increase the duration of the information flow. C. Increases the duration of the cash flow but reduces the duration of the information flow. D. Reduces the length of the product flow and reduces the length of the information flow.

C. Supply chain visibility

A global supply chain with offshoring would tend to see which of these performance dimensions decrease? A. Working capital B. Hidden costs C. Supply chain visibility D. Product returns

B. reduce the level of safety inventory required in a way that does not adversely affect product availability.

A goal of any supply chain manager is to A. reduce the level of safety inventory required regardless of the effect on product availability. B. reduce the level of safety inventory required in a way that does not adversely affect product availability. C. increase the level of safety inventory required regardless of the effect on product availability. D. increase the level of safety inventory required in a way that does not adversely affect product availability.

B. reduce the fixed cost associated with each lot.

A key to reducing lot size without increasing costs is to A. reduce the holding cost associated with each lot. B. reduce the fixed cost associated with each lot. C. reduce the material cost associated with each lot. D. reduce the manufacturing cost associated with each lot.

D. volume based.

A price discount when the discount is based on the total quantity purchased over a given period, regardless of the number of lots purchased over that period, is A. customer based. B. lot size based. C. supplier based. D. volume based.

B. lot size based.

A price discount where the pricing schedule offers discounts based on the quantity ordered in a single lot is A. customer based. B. lot size based. C. supplier based. D. volume based.

D. only if the demand during the lead time exceeds the ROP.

A shortage occurs in a replenishment cycle A. only if the demand during the lead time is less than the ROP. B. only if the demand during the lead time is less than the average demand. C. only if the demand during the lead time exceeds the average demand. D. only if the demand during the lead time exceeds the ROP.

B. there are few cancellations.

A shortage of capacity (or inventory) occurs when A. there are excessive cancellations. B. there are few cancellations. C. an expensive backup needs to be arranged. D. there are few cancellations and an expensive backup needs to be arranged only

B) procurement aggregation.

A third party increases the supply chain surplus if it aggregates the sourcing for many small players and facilitates economies of scale in ordering, inbound transportation and production. This is called A) capacity aggregation. B) procurement aggregation. C) information aggregation. D) relationship aggregation

B. reduction; reduce

A(n) ________ in supply uncertainty can help ________ safety inventory required without hurting product availability. A. reduction; cancel B. reduction; reduce C. reduction; increase D. increase; reduce

C. operational obstacles.

Actions taken in the course of placing and filling orders that lead to an increase in variability are referred to as A. incentive obstacles. B. information processing obstacles. C. operational obstacles. D. pricing obstacles.

A. Information

An aggressive investment in customer analytics represents the use of which lever to reduce supply chain uncertainty? A. Information B. Flexible capacity. C. Time. D. Inventory.

A. market growth.

An increase in consumption of the product either from new or existing customer is A. market growth. B. stealing share. C. forward selling. D. forward buying.

C. should be accepted if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer.

An order from a lower price buyer A. should always be accepted rather than waiting for potential revenue from a higher price buyer. B. should only be accepted if the expected revenue from a higher price buyer is higher than the current revenue from the lower price buyer. C. should be accepted if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer. D. should not be accepted if the expected revenue from a higher price buyer is lower than the current revenue from the lower price buyer.

A. emissions.

Any supply chain design innovation that lowers transportation costs also tends to reduce A. emissions. B. market share. C. delivery time. D. consumer cost.

A. The inventory and resulting inventory costs also increase

As the number of facilities in a supply chain increases A. The inventory and resulting inventory costs also increase B. The inventory and resulting inventory costs decrease C. The inventory increase and resulting inventory costs decrease D. The inventory decreases and resulting inventory costs increase

D. fill rate; cycle service level

Both ________ and ________ increase as the safety inventory is increased. A. lead time; cycle service level B. reorder point; lead time C. fill rate; lead time D. fill rate; cycle service level

D. Capacity decisions tend to stay in place for several years.

Capacity allocation decision have a significant impact on supply chain performance because A. Capacity decisions tend to be permanent. B. Capacity decisions tend to be changed frequently. C. Capacity decisions do not tend to stay in place for several years D. Capacity decisions tend to stay in place for several years.

D. reduces the amount of inventory required.

Carrying more inventory upstream in a multiechelon supply chain A. increases the amount of inventory required. B. decreases the extent of aggregation. C. decreases the lead time. D. reduces the amount of inventory required.

A. Marketing manages demand and Operations manages supply.

Companies typically divide the task of supply and demand so that A. Marketing manages demand and Operations manages supply. B. Marketing manages supply and Operations manages demand. C. Marketing manages demand and supply. D. Operations manages demand and supply

D. supply chain surplus.

Coordination requires every stage of the supply chain to focus on A. the functional revenues for each supply chain member. B. the functional profits for each supply chain member. C. the functional costs for each supply chain member. D. supply chain surplus.

D. forward buying.

Customers moving up future purchases to the present is A. market growth. B. stealing share. C. forward selling. D. forward buying.

B. stealing share.

Customers substituting the firm's product for a competitor's product is A. market growth. B. stealing share. C. forward selling. D. forward buying.

D. take advantage of economies of scale and reduce cost within the supply chain.

Cycle inventory is primarily held to A. take advantage of diseconomies of scale and increase cost within the supply chain. B. take advantage of diseconomies of scale and reduce cost within the supply chain. C. take advantage of economies of scale and increase cost within the supply chain. D. take advantage of economies of scale and reduce cost within the supply chain.

D. the optimal strategy is the next period is the one that is selected if the entire analysis is assumed to begin in the next period.

Decision tree analysis is based on Bellman's principle, which states for any choice of strategy in a given state, A. the optimal strategy is one that is selected if the entire analysis is assumed to begin in the first period. B. the optimal strategy is one that is selected if the entire analysis is assumed to begin in the last period. C. the optimal strategy is the next period is the one that is selected if the entire analysis is assumed to begin in the last period. D. the optimal strategy is the next period is the one that is selected if the entire analysis is assumed to begin in the next period.

B. It directly impacts both the supply chain cost and the customer experience.

Distribution is a key driver of the overall profitability of a firm because A. The addition of distributors only adds cost to the supply chain. B. It directly impacts both the supply chain cost and the customer experience. C. It slows down the responsiveness of the supply chain. D. It cannot be developed as part of supply chain strategy.

C. Supply Chain Strategy (Design)

During this decision phase, a company will decide on the supply chain's configuration, resource allocation, and the processes of each stage. A. Supply Chain Execution B. Supply Chain Planning C. Supply Chain Strategy (Design) D. Supply Chain Operation

A. It is very expensive to shut down a facility or move it to a different location.

Facility location decision have a long-term impact on a supply chain's performance because A. It is very expensive to shut down a facility or move it to a different location. B. It is not expensive to shut down a facility or move it to a different location C. It is advisable to shut down a facility or move it to a different location. D. It is cost effective to shut down a facility or move it to a different lcoation.

B. underlying decision trees are very complext and explicit solutions for the underlying decision tree are difficult to obtain.

Firms should use simulation for evaluating decisions when A. underlying decision trees are simple and explicit solutions for the underlying decision tree are difficult to obtain. B. underlying decision trees are very complext and explicit solutions for the underlying decision tree are difficult to obtain. C. underlying decision trees are simple and explicit solutions for the underlying decision tree are easy to obtain. D. underlying decision trees are very complex and explicit solutions for the underlying decision tree are easy to obtain.

C. "the entire chain" and "maximizing profitability"

For a supply chain to manage predictable variability successfully, _________________ must work toward the one goal of ________________. A. "each company" and "maximizing their own profit" B. "each company" and "minimizing other's profits" C. "the entire chain" and "maximizing profitability" D. "the entire chain" and "maximizing individual profitability"

A. increases the fill rate but not the cycle service level.

For the same safety inventory, an increase in lot size A. increases the fill rate but not the cycle service level. B. decreases both the fill rate and the cycle service level. C. decreases the fill rate but not the cycle service level. D. increases both the fill rate and the cycle service level.

A) reduce product cost.

Good design collaboration for manufacturability and supply chain can A) reduce product cost. B) increase required inventories. C) increase transportation cost. D) decrease manufacturability

D. the carrier.

Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes, etc.) are the primary concern of A. the shipper. B. the supplier. C. the manufacturer. D. the carrier.

B. in order to increase demand during off-peak periods.

Hotels use differential pricing by day of week and time of year. A. in order to shift profit from peak periods to off-peak periods. B. in order to increase demand during off-peak periods. C. in order to shift revenue from peak periods to off-peak periods. D. in order to shift demand from peak periods to off-peak periods.

A. coordinated.

If decisions made at the retailer and supplier stage served to maximize total supply chain profits, the supply chain is A. coordinated. B. discriminatory. C. level. D. best in practice.

C. thousand of possible paths that may result form the first period to the last.

In a complex decision tree there are A. only a few possible paths that may result from the first period to the last. B. less than thirty possible paths that may result from the first period to the last. C. thousand of possible paths that may result form the first period to the last. D. an infinite number of possible paths that may result form the first period to the last.

B. They were built and/or managed by the government.

In almost all countries, roads, seaports, airports, rail and canals have this in common. A. They are staffed by foreign nationals. B. They were built and/or managed by the government. C. They are located near the water. D. They are the source of most of the tax revenue for municipalities.

A. both absolute and relative measurements.

In general, it is better for firms to measure and report their performance using A. both absolute and relative measurements. B. descriptive prose rather than numbers. C. absolute measurements. D. relative measurements.

D. order status tracking.

In general, online sales outperform traditional brick and mortar retail sales along the dimension of A. order fulfillment. B. trying before you buy. C. product returns. D. order status tracking.

C. product returns.

In general, traditional brick and mortar retails sales outperform online sales along the dimension of A. product variety. B. efficient funds transfer. C. product returns. D. order status tracking.

B. arises earlier in time than demand from the segment paying the higher price.

In most instances of differential pricing, demand from the segment paying the lower price A. arises about the same time as demand from the segment paying the higher price. B. arises earlier in time than demand from the segment paying the higher price. C. arises later in time than demand from the segment paying the higher price. D. arises both earlier and later in time than demand from the segment paying the higher price.

D. they should establish regularly scheduled trains.

In order for a freight railroad to take advantage of revenue management opportunities, A. there must be no air freight or truck transportation. B. there must be no air freight. C. they must reserve one box car on each train for luxury items. D. they should establish regularly scheduled trains.

C. integrate it with their existing supply chain networks.

In order to reap the greatest return form the online channel for physical goods firms should A. maximize the return for each distinct supply chain member. B. minimize interactions between the buyer and the other supply chain members. C. integrate it with their existing supply chain networks. D. ensure that they have total ownership of the supply chain.

A. Supply Chain Operation

In this decision phase, the goal is to exploit the reduction of uncertainty and optimize performance when handling incoming customer orders in the best possible manner. A. Supply Chain Operation B. Supply Chain Execution C. Supply Chain Strategy (Design) D. Supply Chain Planning

A. Manufacturer storage with direct shipping

In which distribution network design is product shipped directly from the manufacturer to the end customer, bypassing the retailer (who takes the order and initiates the delivery request)? A. Manufacturer storage with direct shipping B. Manufacturer storage with direct shipping and in-transit merge C. Distributor storage with package carrier delivery D. Distributor storage with last mile delivery

A. supply chains today produce a large amount of product variety

Information distortion is exaggerated by the fact that A. supply chains today produce a large amount of product variety B. supply chains today produce a small amount of product variety. C. the telephone effect is extreme in situations where technology is in use. D. different stages of supply chains send excessive data.

C. Obsolescence cost

Inventory holding costs would include which of the following? A. Transportation cost B. Buyer time C. Obsolescence cost D. Receiving cost

D. forecasts, pricing, and aggregate planning

It is crucial that __________, ___________, and ______________ be coordinated in a supply chain. A. forecasts, capacity, and aggregate planning B. forecasts, pricing, and capacity C. capacity, pricing, and aggregate planning D. forecasts, pricing, and aggregate planning

B. revenue increases while improving service along some dimension that is important to customers that pay the highest price.

It is important for the firm to structure its revenue management program in a way that A. it is presented simply as a mechanism for extracting maximum revenue. B. revenue increases while improving service along some dimension that is important to customers that pay the highest price. C. profit is maximized. D. All of these

C. aligning goals and incentives.

Managers can improve coordination within the supply chain by A. holding product in inventory but off official inventory records. B. listing product in inventory without actually holding the physical goods. C. aligning goals and incentives. D. decreasing product visibility.

D. both social and environmental.

Metrics that would typically be in corporate social responsibility (CSR) reports would contain A. revenue. B. social. C. environmental. D. both social and environmental.

C. reduces risk and improving the financial performance of the supply chain.

Most concrete action has been observed primarily when a focus on sustainability A. makes the world more sustainable. B. attracts customers who value sustainability. C. reduces risk and improving the financial performance of the supply chain. D. increases revenue for sustainability initiatives.

D. the logistics.

Much of the actual cost of recycling or remanufacturing is directly linked to A. the repair. B. the production. C. the design. D. the logistics.

B. determining how profits will be allocated to different members of the supply chain.

One key to successful collaboration when the supply chain is performing aggregate planning is A. determining how losses will be allocated to different members of the supply chain. B. determining how profits will be allocated to different members of the supply chain. C. determining how labor will be allocated to different members of the supply chain. D. determining how customers will allocated to different members of the supply chain.

A. through teams comprised of different members of the supply chain.

One of the best ways to solve coordination problems is A. through teams comprised of different members of the supply chain. B. through investments in cutting edge information technology. C. by institution penalties for supply chain members that don't cooperate. D. by implementing a supply chain resource planning module.

B. Transportation cost

Ordering costs would include which of the following? A. Costs from theft B. Transportation cost C. Security cost D. Damage cost

A. change in demand that can be forecasted.

Predictive variability is A. change in demand that can be forecasted. B. change in demand that cannot be forecasted. C. change in demand that has been planned. D. change in demand that has been scheduled.

C) supplier scoring and assessment.

Price has traditionally been the only dimension that suppliers have been compared on during the process of A) procurement. B) sourcing. C) supplier scoring and assessment. D) supplier selection

C. influence demand if customers are price sensitive.

Pricing can be used to A. change available supply. B. reduce supply chain costs. C. influence demand if customers are price sensitive. D. All of these

D. behavioral obstacles.

Problems in learning with organizations that contributed to the bullwhip effect are referred to as A. incentive obstacles. B. information processing obstacles. C. pricing obstacles. D. behavioral obstacles.

B) but tend to increase the required batch size and as a result the cycle inventory.

Quantity discounts lower the unit cost A) but tend to increase the required batch size and as a result, reduce the cycle inventory. B) but tend to increase the required batch size and as a result the cycle inventory. C) and tend to reduce the required batch size and as a result the cycle inventory. D) and tend to reduce the required batch size and as a result, increase the cycle inventory

B. two distinct segments of demand exist for the product - one for new and one for old products.

Remanufacturing helps improve profits as long as A. the comparatively low margin of remanufactured to newly-produced products exists. B. two distinct segments of demand exist for the product - one for new and one for old products. C. the comparatively high cost of remanufacturing to newly-produced products exists. D. the fear exists that remanufactured products will be purchased instead of newly-produced products.

C. synchronized to keep cycle inventory and order costs low.

Replenishment orders in multi-echelon supply chains should be A. synchronized to increase cycle inventory and order costs. B. synchronized to facilitate supplier evaluation and selection. C. synchronized to keep cycle inventory and order costs low. D. separated to increase cycle inventory and order costs.

D. technology

Retailers of all sizes can explore CPFR as a strategic option, but in order to be scalable, ________________ is needed. A. a process B. labor C. money D. technology

B. the product is sold both in bulk and on the spot market.

Revenue management has a significant impact on supply chain profitability if A. demand is stable and predictable. B. the product is sold both in bulk and on the spot market. C. the value of the product does not change regardless of market. D. the product has a long shelf life.

B. the use of pricing to increase the profit generated from a limited supply of supply chain assets.

Revenue management is A. the use of marketing tools to increase revenue. B. the use of pricing to increase the profit generated from a limited supply of supply chain assets. C. the use of accounting tools to monitor cash flow. D. a process designed to determine the best use of funds generated through sales.

A) the hockey stick phenomenon.

Sales efforts and orders peak near the end of any month, quarter, or other evaluation period. This is commonly referred to as A) the hockey stick phenomenon. B) the student syndrome. C) Murphy's Law. D) the Central Limit Theorem

D. all of the above.

Seasonal demand can be met by A. maintaining enough manufacturing capacity to meet demand in any period. B. building up inventory during the off season to meet demand during the peak seasons. C. offering a price promotion during periods of low demand to shift some of the demand into a slow period. D. all of the above.

C. during the off-peak period is more than offset by the decrease in cost because of a smaller peak.

Shifting demand from peak to off-peak periods is beneficial if the discount given A. during the off-peak period is more than offset by the decrease in cost because of a larger peak. B. during the peak period is more than offset by the decrease in cost because of a smaller peak. C. during the off-peak period is more than offset by the decrease in cost because of a smaller peak. D. during the peak period is more than offset by the decrease in cost because of a larger peak.

D. pricing obstacles.

Situations in which the pricing policies for a product lead to an increase in variability of orders placed are referred to as A. incentive obstacles. B. information processing obstacles. C. operational obstacles. D. pricing obstacles.

B. information processing obstacles.

Situations where demand information is distorted as it moves between different stages of the supply chain, leading to increased variability in orders within the supply chain are referred to as A. incentive obstacles. B. information processing obstacles. C. operational obstacles. D. behavioral obstacles.

A. incentive obstacles.

Situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits are referred to as A. incentive obstacles. B. information processing obstacles. C. operational obstacles. D. behavioral obstacles.

C. incentives of the member of the supply chain

Successful collaboration within a supply chain requires that ______________ must be aligned. A. costs of the members of supply chain. B. information technology capabilities of the supply chain. C. incentives of the member of the supply chain D. production capacities of the members of the supply chain.

C. data synchronization and established standard for exchanging information.

Successful collaborative planning, forecast and replenishment must be built on a foundation of A. a common logistics carrier and data synchronization. B. a single forecasting approach and a common logistics carrier. C. data synchronization and established standard for exchanging information. D. established standards for exchanging information and a single forecasting approach.

B) its impact on total cost.

Supplier performance should be compared based on A) purchase price alone. B) its impact on total cost. C) the supplier's quality of material. D) the ability of the supplier to coordinate forecasting and planning

B. pricing and other promotions.

Supply chain can influence demand by using A. production capacity and inventory. B. pricing and other promotions. C. price promotions and inventory. D. production capacity and inventory promotions.

C. Both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.

Supply chain network design decisions include A. Only the location of manufacturing, storage, or transportation-related facilities. B. Only the allocation of capacity and roles to each facility. C. Both the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility. D. Neither the location of manufacturing, storage, or transportation-related facilities nor the allocation of capacity and roles to each facility.

A. Handle supply uncertainty

Supply chain responsiveness includes the ability to do which of the following? A. Handle supply uncertainty B. Ship product in larger quantities than your competitors C. Substitute similar products to fill orders when the desired products are unavailable D. Ensure that all functional strategies within the supply chain are reviewed annually.

D. decreases transportation costs because of economies of scale.

Temporal aggregation A. is purely a theoretical concept; no practical business examples of this exist. B. is the process of combining orders across multiple locations. C. increases a firm's responsiveness. D. decreases transportation costs because of economies of scale.

A. increase recycling.

The Pay as You Throw (PAYT) model is designed to A. increase recycling. B. decrease consumption. C. decrease throwing. D. increase consumption.

B. Order Visibility

The ability of a customer to track their order form placement to delivery is A. Customer Experience B. Order Visibility C. Product Availability D. Response Time

D. mix flexibility.

The ability to produce a variety of products within a short period of time is called A. modular flexibility. B. chained flexibility. C. volume flexibility. D. mix flexibility.

D. Response Time

The amount of time it takes for a customer to receive their order is A. Order visibility B. Time to market C. Product Returnability D. Response Time

A. such that the expected marginal revenue from the spot market equals the current revenue from a bulk sale.

The amount reserved for the spot market should be A. such that the expected marginal revenue from the spot market equals the current revenue from a bulk sale. B. such that the expected marginal revenue from the spot market exceeds the current revenue from a bulk sale. C. such that the expected marginal revenue from the spot market is less than the current revenue from a bulk sale. D. equal to the maximum revenue available from the spot.

C. cycle inventory.

The average inventory in the supply chain due to either production or purchases in lot sizes that are larger than those demanded by the customer is A. annual inventory. B. distribution inventory. C. cycle inventory. D. physical inventory.

B. having wasted capacity (or inventory) or a shortage of capacity (or inventory).

The basic trade-off to consider during overbooking is between A. having high sales or a shortage of capacity (or inventory). B. having wasted capacity (or inventory) or a shortage of capacity (or inventory). C. having wasted capacity (or inventory) or excess capacity (or inventory). D. having lost sales or a shortage of capacity (or inventory).

B. hurts the relationships between different stages of the supply chain.

The bullwhip effect A. positively impacts performance at every stage. B. hurts the relationships between different stages of the supply chain. C. enhances the relationships between different stages of the supply chain. D. results in improved on-time order delivery.

C. different stages of the supply chain to have a very different estimated of what demand looks like.

The bullwhip effect causes A. maximization of supply chain surplus. B. improved accuracy of demand information within the supply chain. C. different stages of the supply chain to have a very different estimated of what demand looks like. D. less need for aggregate planning.

A. away from the efficient frontier by increasing cost and decreasing responsiveness.

The bullwhip effect moves a supply chain A. away from the efficient frontier by increasing cost and decreasing responsiveness. B. away from the efficient frontier by decreasing cost and increasing responsiveness. C. toward the efficient frontier by increasing cost and decreasing responsiveness. D. toward the efficient frontier by increasing cost and increasing responsiveness.

D. designing product flexibility into the production processes.

The capacity management approach where a firm has production lines whose production rate can easily be varied to match demand is A. time flexibility from workforce. B. the use of seasonal workforce. C. the use of subcontracting. D. designing product flexibility into the production processes.

C. the use of subcontracting.

The capacity management approach where a firm purchases peak production from another firm so that internal production remains level and can be done cheaply is A. time flexibility from workforce B. the use of seasonal workforce. C. the use of subcontracting. D. the use of dual facilities - dedicated and flexible.

D. the size of the uncertainty relative to demand.

The coefficient of variation measures A. the relevance of cycle inventory to demand. B. the accuracy of the demand forecast. C. the relative certainty of the forecast. D. the size of the uncertainty relative to demand.

C. the holding cost and is denoted by H.

The cost of carrying one unit in inventory for a specified period of time, usually one year, is referred to as A. the material cost and is denoted by C. B. the fixed ordering cost and is denoted by S. C. the holding cost and is denoted by H. D. the purchase price and is denoted by P.

B. supply chain efficiency.

The cost of making and delivering a product to the customer is referred to as A. supply chain responsivness. B. supply chain efficiency. C. cost-responsiveness efficient frontier. D. implied uncertainty.

C. the margin that would have been generated if the capacity had been used for production.

The cost of wasted capacity is A. the productivity increase generated when the capacity is used for production. B. the sales potential of excess capacity kept in reserve for emergency production. C. the margin that would have been generated if the capacity had been used for production. D. the reduction in margin that results from having to go to a backup source.

C. cost-responsiveness efficient frontier.

The curve that shows the lowest possible cost for a given level of responsiveness is referred to as the A. supply chain responsiveness curve. B. supply chain efficiency curve. C. cost-responsiveness efficient frontier. D. responsiveness spectrum.

D) information.

The data and analysis concerning facilities, inventory, transportation, and customers throughout the supply chain is known as A) facilities. B) inventory. C) transportation. D) information. E) customers.

B) outsourcing.

The decision to have a third party perform a supply chain function is called A) insourcing. B) outsourcing. C) offshoring. D) onshoring

A. Customer Experience

The ease with which the customer can place and receive their order as well as other aspects of value that the sales staff provides is A. Customer Experience B. Order Visibility C. Product Availability D. Response Time

B) sourcing.

The entire set of business processes required to purchase goods and services is A) procurement. B) sourcing. C) supplier scoring and assessment. D) supplier selection

A. the average units of demand that are not satisfied from inventory in stock per replenishment cycle.

The expected shortage per replenishment cycle (ESC) is A. the average units of demand that are not satisfied from inventory in stock per replenishment cycle. B. the units of demand that are satisfied from inventory in stock in a given replenishment cycle. C. the units of demand that are satisfied from inventory out of stock in a given replenishment cycle. D. the average units of demand that are satisfied from inventory in stock per replenishment cycle.

B. match supply chain responsiveness with the implied uncertainty of demand.

The final step in achieving strategic fit between competitive and supply chain strategies is to A. understand the supply chain and map it on the responsiveness spectrum. B. match supply chain responsiveness with the implied uncertainty of demand. C. understand customers and supply chain uncertainty. D. ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness.

D. understand customers and supply chain uncertainty.

The first step in achieving strategic fit between competitive and supply chain strategies is to A. ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness. B. match supply chain responsiveness with the implied uncertainty of demand. C. understand the supply chain and map it on the responsiveness spectrum. D. understand customers and supply chain uncertainty.

D. the foundation of any revenue management system.

The forecasting function is A. unnecessary for a revenue management system. B. an added plus for any revenue management system. C. likely to create problems for any revenue management system. D. the foundation of any revenue management system.

A. product fill rate.

The fraction of product demand that is satisfied from product in inventory is the A. product fill rate. B. cycle service level (CSL). C. order fill rate. D. customer fill rate.

A. cycle service level (CSL).

The fraction of replenishment cycles that end with all the customer demand being met is the A. cycle service level (CSL). B. customer fill rate. C. product fill rate. D. order fill rate.

B. the entire supply chain network is coordinated.

The full benefit of coordination is achieved when A. all adjacent pairs of supply chain partners are coordinated. B. the entire supply chain network is coordinated. C. the POS data is shared with the manufacturer. D. the POS data is shared with the retailer.

C. scope of strategic fit.

The functions and stages that devise an integrated strategy with an aligned objective are referred to as A. competitive strategy. B. supply chain strategy. C. scope of strategic fit. D. scope of marketing strategy.

C. using forecasts of customer behavior that will be most effective.

The goal of optimization in revenue management is to identify a tactic A. using linear regression that will minimize cost. B. that will not have to be altered. C. using forecasts of customer behavior that will be most effective. D. using linear regression that will maximize revenue.

B. influence retailers to act in a way that helps the manufacturer achieve its objectives.

The goal of trade promotions is to A. influence retailers to act in a way that helps the retailer achieve its objectives. B. influence retailers to act in a way that helps the manufacturer achieve its objectives. C. influence retailers to act in a way that will maximize supply chain profit. D. influence retailers to act in a way that minimizes supply chain cost.

D. Contracts

The interaction between a customer and a retailer is primarily in terms of three flows. Which of these items is NOT one of the flows? A. Information B. Product C. Funds D. Contracts

B) safety inventory.

The inventory held in case demand exceeds expectation in order to counter uncertainty is called A) cycle inventory. B) safety inventory. C) seasonal inventory. D) sourcing. E) none of the above

C. product life cycles are short and demand is very volatile.

The issue of product availability and the level of safety inventory is particularly significant in industries where A. product life cycles are long and demand is stable. B. product life cycles are short and demand is stable. C. product life cycles are short and demand is very volatile. D. product life cycles are long and demand is very volatile.

B. the shipper and the carrier.

The key players in any transportation that takes place within a supply chain are A. the shipper and the supplier. B. the shipper and the carrier. C. the shipper and the receiver. D. the shipper and the manufacturer.

D. level of product availability.

The lack of coordination within a supply chain will result in a decrease in A. manufacturing cost. B. inventory cost. C. replenishment lead time. D. level of product availability.

C. replenishment lead time.

The lack of coordination within a supply chain will result in an increase in A. profitability B. inventory accuracy. C. replenishment lead time. D. level of product availability.

B. the fear that remanufactured products will be purchased instead of newly-produced products.

The major deterrent to remanufacturing is A. the comparatively high cost of remanufacturing to newly-produced products. B. the fear that remanufactured products will be purchased instead of newly-produced products. C. the comparatively low margin of remanufactured to newly-produced products. D. the loss of recycling volume from remanufactured products that do not enter the recycling stream.

D. distribution center replenishment.

The most common form of collaboration observed in practice is A. store replenishment B. retail event. C. collaborative assortment. D. distribution center replenishment.

C. transportation.

The movement of product from one location to another as it makes its way from the beginning of a supply chain to the customer's hands is referred to as A. distribution. B. retailing. C. transportation. D. manufacturing.

D. Specify what capabilities the supply chain network must have to support a firm's competitive strategy.

The objective of the first phase of network design is to A. Maximize total profits, taking into account the expected margin and demand in each market. B. Select a set of desirable sites within each region where facilities are to be located. C. Identify regions where facilities will be located, their potential roles, and their approximate capacity. D. Specify what capabilities the supply chain network must have to support a firm's competitive strategy.

C. Identify regions where facilities will be located, their potential roles, and their approximate capacity.

The objective of the second phase of network design is to A. Select a precise location and capacity allocation for each facility. B. Select a set of desirable sites within each region where facilities are to be located. C. Identify regions where facilities will be located, their potential roles, and their approximate capacity. D. Specify what capabilities the supply chain network must have to support a firm's competitive strategy. Question 8

C. Select a set of desirable sites within each region where facilities are to be located.

The objective of the third phase of network design is to A. Maximize total profits, taking into account the expected margin and demand in each market. B. Select a precise location and capacity allocation for each facility. C. Select a set of desirable sites within each region where facilities are to be located. D. Identify regions where facilities will be located, their potential roles, and their approximate capacity.

C. Significant additional risk

The opportunities from globalization are often accompanied by A. A lack of domestic opportunities B. The need to eliminate the accounting function. C. Significant additional risk D. The need to eliminate the logistics function.

C. the tragedy of the commons.

The phenomenon where each actor is incentivized to maximize his gain from a public asset at the expense of all others is A. the social pillar. B. the closed loop. C. the tragedy of the commons. D. cap-and-trade.

A) facilities.

The places in the supply chain network where product is stored, assembled, or fabricated are known as A) facilities. B) inventory. C) transportation. D) information. E) customers.

C. the entity causing the pollution must bear the cost to society.

The polluter pays principle dictates that A. recycling efforts are best aimed at the designer of the product. B. the recycler should receive compensation from the designer of the product. C. the entity causing the pollution must bear the cost to society. D. the recycler should receive compensation from the end user of the product.

A. the material cost and is denoted by C.

The price paid per unit is referred to as A. the material cost and is denoted by C. B. the fixed ordering cost and is denoted by S. C. the holding cost and is denoted by H. D. the purchase price and is denoted by P.

B. purchase product in lot sizes that maximize the sum of material, ordering, and holding cost.

The primary role of cycle inventory is to allow different stages in the supply chain to A. purchase produce in lot sizes that maximize the sum of the material, ordering, and holding cost. B. purchase product in lot sizes that maximize the sum of material, ordering, and holding cost. C. sell product in lot sizes that maximizes the sum of material, order, and holding cost. D. sell product in lot sizes that minimize the sum of material, ordering, and holding cost.

C) consolidation of orders to take advantage of economies of scale and quantity discounts.

The procurement process for both direct and indirect materials should work on A) improving coordination and visibility with the supplier. B) decreasing the transaction cost for each order. C) consolidation of orders to take advantage of economies of scale and quantity discounts. D) minimizing communication with the supplier

D. a lot or batch.

The quantity of inventory that a stage of the supply chain either produces or purchases at a given time is A. an order. B. a job. C. a shipment. D. a lot or batch.

A. grows rapidly with an increase in the desired product availability.

The required safety inventory A. grows rapidly with an increase in the desired product availability. B. grows rapidly with a decrease in the desired product availability. C. remains stable with an increase in the desired product availability. D. decreases with an increase in the desired product availability.

C. it decreases his total cost.

The retailer can just the forward buying during a trade promotion when A. they have inadvertently built up a lot of excess inventory. B. the forward buy allows the manufacturer to smooth demand by shifting it form peak to low-demand periods. C. it decreases his total cost. D. A and C

A. understand the supply chain and map it on the responsiveness spectrum.

The second step in achieving strategic fit between competitive and supply chain strategies is to A. understand the supply chain and map it on the responsiveness spectrum. B. match supply chain responsiveness with the implied uncertainty of demand. C. understand customers and supply chain uncertainty. D. ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness.

C. the bullwhip effect.

The situation in which fluctuations in orders increase as they move the supply chain from retailers to wholesalers to manufacturers to suppliers is known as A. market fluctuations. B. the whiplash effect C. the bullwhip effect. D. the butterfly effect.

D. Distribution

The steps taken to move and store a prodcut form the supplier stage to a customer stage in the supply chain are referred to as A. Transportation B. Retailing C. Wholesaling D. Distribution

D. Both potential energy and materials lost

The sustainability damage from landfill additives comes in which form? A. Potential energy lost B. Materials lost C. Terrible smell D. Both potential energy and materials lost

C. customers are able to cancel orders and the value of the asset drops significantly after a deadline.

The tactic of overbooking or overselling the available asset is suitable where A. customers are unable to cancel orders and the value of the asset drops significantly after a deadline. B. there is a clear date beyond which the asset loses a lot of its value. C. customers are able to cancel orders and the value of the asset drops significantly after a deadline. D. there is no clear date beyond which the asset loses a lot of its value.

D. Increase inventory.

The tailored strategy "Focus on low-cost, decentralized capacity for predictable demand" follows which risk mitigation strategy? A. Get redundant suppliers. B. Increased capacity. C. Increase responsiveness. D. Increase inventory.

B. increasing product availability versus increasing inventory holding costs.

The trade-off that a supply chain manager must consider when planning safety inventory is A. decreasing product availability versus decreasing the level of safety inventory. B. increasing product availability versus increasing inventory holding costs. C. increasing product availability versus raising the level of safety inventory. D. decreasing product availability versus decreasing inventory holding costs.

B. capacity and inventory.

The two forms of supply chain assets are A. capacity and revenue. B. capacity and inventory. C. inventory and warehouse space. D. inventory and revenue.

B. demand uncertainty.

The uncertainty of customer demand for a product is the A. rate of strategic uncertainty. B. demand uncertainty. C. implied demand uncertainty. D. average forecast error.

D. implied demand uncertainty.

The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the A. rate of strategic uncertainty. B. average forecast error. C. demand uncertainty. D. implied demand uncertainty.

C. new product development.

The value chain in a company begins with A. the customer. B. marketing and sales. C. new product development. D. operations.

C. Speculative

These type of processes are initiated and performed in anticipation of customer orders. A. Pull B. Reactive C. Speculative D. Forward

Push B.

These type of processes are initiated by a customer order. A. Push B. Pull C. Speculative D. Reverse

C. Cycle View

This view divides the processes of a supply chain into a series of cycles, each performed at the interface between two successive stages of the supply chain. A. Push View B. Pull View C. Cycle View D. Push/Pull View

A. create barriers by identifying product or service attributes that the segments value differently.

To differentiate between the various market segments, the firm must A. create barriers by identifying product or service attributes that the segments value differently. B. negotiate separately with different market segments that value product or service attributes differently. C. eliminate barriers that identify product or service attributes that the segments value differently. D. develop pricing structures based on the volume of various product or service attributes.

D. supply and demand

To handle predictable variability in a profit-maximizing manner, suppl chains must coordinate the management of both ___________ and _____________. A. pricing and inventory B. forecasts and capacity C. planning and pricing D. supply and demand

D. Inventory, transportation, and facility costs.

Total logistics cost are a sum of the A. Inventory and facility costs. B. Transportation and facility costs. C. Inventory and transportation costs. D. Inventory, transportation, and facility costs.

B. the tax rate set directly by the regulatory authority.

Under a carbon tax system, the price of emissions is A. decided by the emitters. B. the tax rate set directly by the regulatory authority. C. agreed upon by all firms competing for the same pool of customers. D. determined by the fraction of total carbon assignable to the company.

B) the third party's actions are not fully observable.

Understanding the impact of incentives on the actions of a supply chain partner is especially important when A) there are two or more members in the supply chain. B) the third party's actions are not fully observable. C) more than two firms competing for the same pool of customers. D) the supply chain uses outsourcing

A) leakage of sensitive data and information.

Using a third party requires a firm to share demand information and in some cases intellectual property. This risk would be described as A) leakage of sensitive data and information. B) underestimation of the cost of coordination. C) reduced customer/supplier contact. D) loss of internal capability

A. there are excessive cancellations.

Wasted capacity (or inventory) occurs when A. there are excessive cancellations. B. there are few cancellations. C. an expensive backup needs to be arranged. D. all of these

D. Supply Chain Surplus

What is known as the difference between the value of the final product to the customer and the costs the entire supply chain incurs in filling the customer's request. A. Supply Chain Cost B. Customer Value C. Supply Chain Profitability D. Supply Chain Surplus

A. Lumpy

What is the descriptive term for demand that occurs not in a steady stream of single units but in periodic large lots? A. Lumpy B. Batch C. Bulky D. Polled

B. Double Marginalization.

What phenomenon leads to a loss in profit because the supply chain margin is divided between two stages, but each stage makes its pricing decisions considering only its own profits? A. Bullwhip effect. B. Double Marginalization. C. Price discrimination. D. Hockey stick phenomenon

D. Landfill

What type of inventory is one of the most damaging from a sustainability perspective? A. Work in process B. Raw materials C. Finished goods D. Landfill

D. pricing and production and inventory.

When a firm is faced with seasonal demand, it should use a combination of _______________ to improve profitability. A. pricing and production B. pricing and inventory C. production and inventory D. pricing and production and inventory.

C. Cycle Inventory = (Lot Size)/2

When demand is steady, cycle inventory and lot size are related as A. Cycle inventory = (Lot Size) X 2. B. Cycle Inventory = (Lot Size)^2 C. Cycle Inventory = (Lot Size)/2 D. Cycle Inventory = (Lot Size) = Q.

D. Maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness.

When faced with a network design decision, the goal of a manager is to design a network that A. Maximizes the firm's profits. B. Minimizes the firm's costs. C. Satisfies customer needs in terms of demand and responsiveness. D. Maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness.

B. this leaves them more profit to divide among themselves.

When planning, the goal of all firms in the supply chain should be to maximize supply chain profits because A. the leaves them less profit to divide among themselves. B. this leaves them more profit to divide among themselves. C. this outcome leaves them more profit to pay tax on. D. this outcome will increase their charitable giving.

A. Between every pair of stages

Where does distribution occur in the supply chain? A. Between every pair of stages B. Everywhere downstream from production C. Between production and the retailer D. Between suppliers and retailers

A. Information centralization

Which approach to aggregation requires an information system that allows access to current inventory records from each location? A. Information centralization B. Specialization C. Product substitution D. Component commonality

D. Maximize the net value generated

Which best describes the objective of every supply chain? A. Create goodwill B. Maximize response time C. Create adequate inventories D. Maximize the net value generated

C. Supply Chain Operation

Which decision phase experiences the least amount of uncertainty due to a time horizon that is usually weekly or daily? A. Supply Chain Strategy (Design) B. Supply Chain Planning C. Supply Chain Operation D. Supply Chain Execution

B. Supply Chain Planning

Which decision phase has a time frame of a quarter to a year and seeks to maximize supply chain surplus through performance optimization achieved by exploiting the flexibility of a supply chain's design? A. Supply Chain Execution B. Supply Chain Planning C. Supply Chain Operation D. Supply Chain Strategy (Design)

C. Distributor storage with package carrier delivery

Which distribution network design is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer? A. Manufacturer storage with direct shipping B. Manufacturer storage with direct shipping and in-transit merge C. Distributor storage with package carrier delivery D. Distributor storage with manufacturer pickup

B. Manufacturer/distributor storage with customer pickup

Which distribution network design is being used when inventory is stored at the manufacturer or distributor warehouse but customers place their orders online or on the phone and then come to designated pickup points to collect their orders? A. Manufacturer storage with direct shipping B. Manufacturer/distributor storage with customer pickup C. Distributor storage with package carrier delivery D. Distributor storage with last mile delivery.

B. Manufacturer storage with direct shipping and in-transit merge.

Which distribution network design is similar to pure drop-shipping, except that pieces of the order coming from different locations are combined so that the customer gets a single delivery? A. Manufacturer with direct shipping B. Manufacturer storage with direct shipping and in-transit merge. C. Distributor storage with package carrier delivery D. Distributor storage with manufacturer pickup

D. Distributor storage with last mile delivery.

Which distribution network is being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier? A. Manufacturer storage with direct shipping B. Manufacturer/distributor storage with customer pickup C. Distributor storage with package carrier delivery D. Distributor storage with last mile delivery.

D. Water

Which mode of transportation is the least expensive? A. Air B. Truck C. Rail D. Water

D. Pipeline

Which mode of transportation is used primarily for petroleum and natural gas? A. Air B. Water C. Truck D. Pipeline

A. Transportation cost is higher than any other distribution option

Which of the following is a disadvantage of distributor storage with last mile delivery? A. Transportation cost is higher than any other distribution option B. Information cost is similar to distributor storage with package carrier delivery C. Customer experience is very good, particularly for bulky items D. Returnability is easier to implement than other options.

B. Supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated.

Which of the following is an advantage of manufacturer storage with direct shipping? A. Transportation costs are low because the average outbound distance to the end consumer is small and package carriers are used to shipping the product. B. Supply chains save on the fixed cost of facilities, because the need for other warehousing space in the supply chain has been eliminated. C. Response times tend to be small because the order has to be transmitted from the retailer to the manufacturer. D. Order tracking is easy to implement because of the complete integration of information systems at both the retailer and the manufacturer.

B. Transportation cost is lower than the use of package carriers, especially if using an existing delivery network.

Which of the following is an advantage of manufacturer/distributor storage with customer pickup? A. Facility costs can be very high if new facilities have to be built. B. Transportation cost is lower than the use of package carriers, especially if using an existing delivery network. C. Order visibility is difficult but essential D. Product variety is similar to other manufacturer or distributor storage options.

D. Supply chain execution

Which of the following is not a decision phase of supply chain management? A. Supply chain design (strategy) B. Supply chain planning C. Supply chain operation D. Supply chain execution

A. Transportation Choices

Which of the following is not a phase within the framework for network design decisions? A. Transportation Choices B. Desirable Sites C. Regional Facility Configuration D. Supply Chain Strategy

B. Time

Which of the following is not considered a "flow" within a supply chain? A. Information B. Time C. Product D. Funds

A. Air

Which of the following is the fastest delivery method of transportation? A. Air B. Truck C. Intermodal D. Rail

D. Supplier Relationship Management

Which of the following macro processes defines the processes that occur at the interface between the firm and its suppliers? A. Customer Relationship Management B. Internal Supply Chain Management C. Replenishment Order Cycle D. Supplier Relationship Management

C. Satisfy customer needs and, in the process, generate profit for itself.

Which of the following statements best describes the primary purpose of any supply chain? A. Create customer goodwill. B. Generate profits at the individual stages of the supply chain. C. Satisfy customer needs and, in the process, generate profit for itself. D. Meet customer demand no matter the cost.

D. The shipper

Which of the following uses transportation to minimize the total cost (transportation, inventory, information, and facility) while providing an appropriate level of responsiveness to the customer? A. The manufacturer B. The supplier C. The carrier D. The shipper

B. Paperback and hard cover books

Which of these combinations of goods is currently offered as a means of revenue management? A. DVDs and streaming services B. Paperback and hard cover books C. Extra crispy and original recipe fried chicken D. Rolls Royce vehicles and General Motors vehicles

B. Facilitating the aggregation of shipments.

Which of these managerial levers should be used to reduce large lots associated with the fixed cost of transportation? A. Reducing changeover times. B. Facilitating the aggregation of shipments. C. Deployment of suitable technology. D. Reducing supplier fixed costs.

A. It is more difficult to maintain a focus on sustainability for a supply chain than for an individual firm.

Which of these statements is best? A. It is more difficult to maintain a focus on sustainability for a supply chain than for an individual firm. B. Customers tend to be vocal about sustainability and back up those words with their purchase decisions. C. Sustainability programs typically offer a clear and substantive ROI figure throughout their development and deployment. D. Benefits and costs of sustainability programs fall equally across all supply chain members throughout most initiatives.

C. Insufficient return on investment

Which of these tends to hinder a firm's implementation of sustainability measures? A. Willingness of customers to pay more for sustainable goods B. Ease of evaluating sustainability across a product life cycle C. Insufficient return on investment D. Creation of trade barriers

B. Milk runs from a central DC

Which transportation network design is pictured? A. All shipments via intermediate transit point. B. Milk runs from a central DC C. Direct shipping network D. Distributed milk runs by multiple suppliers

A. Direct shipping network

Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation and coordination as its major advantage? A. Direct shipping network B. All shipments via central DC C. Shipping via DC using milk runs D. Direct shipping with milk runs

A. Tailored network

Which transportation network design option uses a combination of milk runs, shipping via DC, shipping via intermediate DC with storage, and direct shipping with milk runs to reduce the cost and improve responsiveness of the supply chain? A. Tailored network B. Shipping via DC using milk runs C. Direct shipping network D. Direct shipping with milk runs

B. it is increasing difficult to coordinate the supply chain, thereby decreasing profit.

With supply and demand management decisions being made independently, A. it is increasing difficult to coordinate the supply chain, thereby increasing profit. B. it is increasing difficult to coordinate the supply chain, thereby decreasing profit. C. it is easier to coordinate the supply chain, thereby decreasing profit. D. it is easier to coordinate the supply chain, thereby increasing profit.

B. intraoperation scope

With the ______________ view, each stage of the supply chain is devising its strategy independently and, therefore, typically results in a collection of strategies that do not align and conflict. A. intrafunctional scope B. intraoperation scope C. interfunctional scope D. intercompany scope

A. intrafunctional scope

With the ______________ view, firms attempt to align all operations within a function. In this view, all supply chain functions including sourcing, manufacturing, warehousing, and transportation must align their strategy to minimize total functional cost. A. intrafunctional scope B. intraoperation scope C. interfunctional scope D. intercompany scope

A. Package

________ carriers are the preferred mode of transport for online businesses such as Amazon.com and Dell, as well as for companies such as W.W. Grainger and McMaster-Carr that send small packages to customers. A. Package B. Air C. Rail D. Water

B. Rail

________ carriers typically move commodities over large distances at lower costs per unit shipped. A. Package B. Rail C. Air D. Truck

D. Good information

________ continues to be one of the biggest challenges to improved supply chain sustainability. A. Waste generation B. Water consumption C. Reducing packaging D. Good information

B. Cap-and-trade

________ is a mechanism that constrains the aggregate emissions by creating a limited number of tradeable emission allowances, which emission sources must secure and surrender in proportion to their emissions. A. Cap-and-control B. Cap-and-trade C. Emissions tax D. Command-and-control

B. Mutual coercion

________ is a social arrangement that encourages all participants to behave such that they do not contribute to the tragedy of the commons. A. A zero sum game B. Mutual coercion C. Escalation of commitment D. Barzini Red

D. Postponement

________ is the ability of a supply chain to delay product differentiation or customization until closer to the time the product is sold. A. Aggregation B. Specialization C. Centralization D. Postponement

C. Omni-channel Retailing.

_________ refers to the use of multiple channels to interact with customers and fulfill their orders. A. Online Retailing B. Brick and Mortar Retailing. C. Omni-channel Retailing. D. Traditional Retailing.

C. High-level support

_____________ within an organization is needed because coordination often requires groups to act against their traditional operating procedures." A. Workforce support B. Low-level support C. High-level support D. Labor support

D. Price discrimination

________________ is the practice whereby a firm charges differential prices to maximize profits. A. Optimal lot sizing B. Fixed pricing C. Nonperishable pricing D. Price discrimination