SCM last
A company produces 300 bicycles every day. Each bicycle is worth $250. The inputs used to make those bicycles are labor, materials, and machine costs. The company pays their employees a total of $10,000 per day, the materials to make each bicycle cost $50, and the cost to operate the machines is $3000 per day. Based only on the data provided, what is this company's total productivity for one day?
2.68
The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration. a. True b. False
b. false
T/F: Global location should optimize SCM performance and be consistent with the firm's strategy
true
Web-based balanced scorecard applications are sometimes referred to as performance dashboards. a. True b. F
true
Milan, Wall Street, and Detroit are examples of ____________.
Business clusters
According to the text, the development of cleaner, more fuel-efficient + affordable energy technologies will:
Decrease the costs in the supply chain
Nowadays, successful supply chains are those that in the face of ever changing customer needs can continue to:
Deliver the right combination of cost, quality, and customer service
Deliver the right combination of cost, quality, and customer service
Help eliminate non-value-creating activities Help identify new customer requirements
The first step in the weighted-factor rating technique is to:
Identify all factors important to the facility location
According to the book, the initial step in creating an effective performance measurement system is to:
Identify the firm's strategic objectives
Which of the following BSC framework perspectives deals with new product development, innovative elements of processes, and time-based measures? a. Reliability b. Financial c. Internal Business Process d. Customer
Internal Business Process
Dominant companies within a supply chain can use their buying power to: a. Eliminate the need for performance metrics b. Motivate customers to change their buying preferences c. Leverage demands for supplier conformance to its supply chain requirements d. Increase organizational productivity
Leverage demands for supplier conformance to its supply chain requirements
Manufacturing in China to sell to China customers would be which location decision type?
Proximity to markets
Which of the following is NOT a problem with using cost, revenues or profits as performance measures?
They are difficult to compare with other firms
World-class performance measures provide measures in which of the following capability area?
Quality Customer Service Cost
A clothing manufacturer presently owns a total of four warehouses in the following cities Las Vegas, Denver, Chicago, and Pittsburgh. The average inventory levels for the four warehouses are 7000 units, 6,000 units, 5,000 units, and 6000 units, respectively. They plan on moving all of their inventory to one warehouse in Las Vegas. Using the square root rule, what will be the required average inventory level at the new Las Vegas warehouse required to maintain the system's present customer service level? (Choose the closest answer.) a. 12,000 b. 9,000 c. 6,000 d. 15,000
a. 12,000
Which of the following is a direct benefit from the adoption of NAFTA? a. An increase in trade between U.S., Canada, and Mexico b. An increase in manufacturing job opportunities in the U.S. c. A reduction in illegal immigrants crossing the border from Mexico d. An increase in trade between U.S. and China
a. An increase in trade between U.S., Canada, and Mexico
Security activities such as; Use of security badges and guards, conducting background check on applicants and using antivirus software and passwords, would be classified as: a. Basic Initiatives b. Proactive Initiatives c. Advanced Initiatives d. Reactive Initiatives
a. Basic Initiatives
When demand exceeds a supplier's finished goods available, a supplier may allocate product in proportion to what buyers ordered. This rationing often results in shortage gaming by the suppliers' customers. a. True b. False
a. True
World-class performance measures can be used in different functional areas of a firm to satisfy objectives, enhance the value of the firm's products and services, and increase customer satisfaction by providing measures in which of the following capability area(s)? a. Cost b. Quality c. Customer Service d. all above
all
Once the supply chain partner requirements are understood, supply chain members can then: a. Develop their organizational skill sets b. Audit their capabilities to see if they are consistent with the needs of the end customers c. Implement a quality development program for the employees d. Develop an appropriate information technology system
b. Audit their capabilities to see if they are consistent with the needs of the end customers
The Balanced Scorecard framework consists of four perspectives: financial perspective, human resources perspective, inventory perspective, and the logistics perspective. a. True b. False
b. False
A current warehouse system has five warehouses with 4,000 units at each warehouse. The company desires to change to three warehouses to become more centralized and keep the same customer service levels. Determine the average warehouse inventory levels, using the square root rule. (Choose the closest answer.) a. 6,667 b. 25,820 c. 15,492 d. 11,619
c. 15,492
Facility location has ____________on the supply chain. a. A short-term impact b. Minimal impact c. A long-term impact d. No impact
c. A long-term impact
Milan, Wall Street, and Detroit are examples of ____________. a. Business conglomerates b. Regional trade agreements c. Business clusters
c. Business clusters
_______________ carry the majority of the world's water-transported manufactured goods. a. Supertankers b. Barges c. Containerships d. None of these choices are correct.
c. Containerships
Which of the following secures the right of employees to decide whether to join or financially support a union? a. Union shop laws b. Ethical union initiatives c. Right-to-work laws d. Union planning forums
c. Right-to-work laws
Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as: a. Shortage gaming b. Cross-selling c. Silo mentality d. Balking
c. Silo mentality
What type of firm would be most interested in using a third-party logistics service? a. Large integrated global manufacturing company b. A freight forwarder c. Small firm with no logistics expertise d. A for-hire transportation company
c. Small firm with no logistics expertise
________________ is important because what we do today will affect future generations. a. Progressive design b. An offshore factory c. Sustainable development d. Customer churn
c. Sustainable development
Which of the following would be considered a Supply Chain Risk Management activity? a. Develop a formal risk management program b. Diversify the supply base c. Increasing safety stock d. All of these choices are correct.
d. All of these choices are correct.
Examples of regional trade agreements include all of the following EXCEPT: a. Southern Common Market (MERCOSUR) b. Association of Southeast Asian Nations (ASEAN) c. European Union (EU) d. Association of Indian Markets (AIM)
d. Association of Indian Markets (AIM)
According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will: a. Increase the cost of production and distribution b. Cause companies to shut down c. Not have an impact on the supply chain d. Decrease the costs in the supply chain
d. Decrease the costs in the supply chain
Lean warehousing may involve all of the following capabilities EXCEPT: a. Greater emphasis on crossdocking b. Reduced lot sizes and shipping quantities c. A tendency to be green d. Decreased automation
d. Decreased automation
T/F: In general, performance measurement systems are mostly identical from company to company.
false
A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n): a. International Cross Docking Zone b. Duty-free Territory c. International Processing Center d. Foreign Trade Zone
d. Foreign Trade Zone
T/F: Performance measurements become smaller + simpler with closer relationships, trust and interactions with suppliers
false
Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n): a. Business cluster b. Regional business center c. Industrial point d. Metroplex
a. Business cluster
Which of the following is a critical issue in sustainable development? a. Climate change b. Countertrade c. Labor and legal problems d. Supply base optimization
a. Climate change
Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of: a. Cloud-based communication systems b. Legacy MRP systems c. Mobile Marketing d. Score-carding systems
a. Cloud-based communication systems
Traditional performance measures include:
a. Cost and Revenue
When warehouses receive, break down, and repackage shipments, and then distribute components to a manufacturing location or finished products to customers by a distribution center this activity is referred to as: a. Crossdocking b. Piggy backing c. Customs Brokering d. Transshipping
a. Crossdocking
A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes: a. Customer service management process b. Supply management process c. Demand management process d. Order fulfillment process
a. Customer service management process
Nowadays, successful supply chains are those that in the face of ever changing customer needs can continue to:
a. Deliver the right combination of cost, quality, and customer service
The global process integration software market is expected to: a. Grow by about $100 billion from 2017 to 2021 b. Double by the end of 2018 c. Remain constant through 2018 d. Decrease slightly by the end of 2017
a. Grow by about $100 billion from 2017 to 2021
In the U.S., which of the five basic modes of transportation is responsible for the largest volume (in tonnage) of domestic freight hauled? a. Motor Carriers b. Air Carriers c. Pipeline Carriers d. Rail Carriers
a. Motor Carriers
Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products? a. Outpost factory b. Source factory c. Server factory d. Offshore factory
a. Outpost factory
Which of the following carriers is most favorable, but inflexible, when shipments are heavy and the distance for delivery is long? a. Rail Carriers b. Pipeline Carriers c. Motor Carriers d. Air Carriers
a. Rail Carriers
According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region? a. Server factory b. Offshore factory c. Outpost factory d. Source factory
a. Server factory
The rule to estimate the effect of risk pooling is referred to as the _______. a. Square root rule b. Linear rule c. FOIL rule d. Exponential rule
a. Square root rule
The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Tariffs b. Innovation c. Relationship marketing d. Southeast Asian Nations
a. Tariffs
Which of the following was enacted to reduce and eliminate transportation regulations? a. Trucking Industry Regulatory Reform Act b. Freight Forwarders Act c. Reed Bullwinkle Act d. Granger Law
a. Trucking Industry Regulatory Reform Act
High tariffs encourage multinational corporations to set up factories to produce locally. a. True b. False
a. True
The European Union (EU) is considered a regional trade agreement. a. True b. False
a. True
Which of the following international intermediaries move global shipments through customs for companies and handle the documentation required to accompany the shipments? a. NVOCC b. Customs broker c. Foreign freight forwarder d. Customs Trade Partnership
b. Customs broker
Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: a. Data warehouses b. External process integration c. Expediting d. All of these choices are correct.
b. External process integration
Which of the following is a contributor to the bullwhip effect? a. Vendor managed inventory b. Forward buying c. Smaller order sizes d. Using actual demand data
b. Forward buying
Which of the following is focused on promoting the sharing of environmental responsibility along the supply chain? a. SCOR b. GSCM c. Single-factor productivity measures d. Balanced Scorecard
b. GSCM
Which of the following was the first major transportation regulation in the U.S.? a. Interstate Initiation Act b. Granger Laws c. Interstate Commerce Act d. Motor Carrier Act
b. Granger Laws
___________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders? a. Forward Integration b. Information visibility c. Internal quality standards d. All of these choices are correct.
b. Information visibility
According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Supplier relationship management process b. Knowledge management process c. Product development and commercialization d. Manufacturing flow management process
b. Knowledge management process
_______________ are the most flexible mode of transportation and account for 70 percent of all the freight tonnage moved in the U.S. a. Air Carriers b. Motor Carriers c. Rail Carriers d. Water Carriers
b. Motor Carriers
When utilizing performance standards, the difference between the standard and the actual performance is called the:
b. Performance Variance
Which of the following is NOT a direct benefit from the adoption of NAFTA? a. Trade between U.S., Canada, and Mexico has increased b. Reduction in illegal immigrants crossing the border from Mexico since NAFTA began c. Foreign direct investment in Mexico are increasing d. Regional trade has increased sharply over NAFTA's first two decades
b. Reduction in illegal immigrants crossing the border from Mexico since NAFTA began
Cost-based performance measures _____ reflect the underlying performance of the productive systems of an organization.
rarely
A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model. WEIGHTSITE ASITE BSITE CLabor Cost0.25 92 82 84Currency Stability0.35 75 85 88Proximity to Market0.30 80 50 60 Taxes0.10 69 88 91
b. Site A
Which of the following is NOT a reason for locating in a business cluster? a. Technology sharing b. Sophisticated retailers c. Supply chain improvements d. Competition
b. Sophisticated retailers
In well-managed supply chains, performance measurement systems become much larger and are complicated by: a. Push supply chains b. Varied relationships, trust and interactions c. Demand-driven supply networks d. SCOR supply chain
b. Varied relationships, trust and interactions
The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as: a. Piggy backing b. Risk pooling c. Crossdocking d. Customs Brokering
c. Crossdocking
A ___________________ consolidates large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates. a. Transportation broker b. Load broker c. Freight forwarder d. Consolidation forwarder
c. Freight forwarder
Mapping the network of primary trading partners is something that should be done to: a. Assess and improve internal integration of key supply chain processes b. Obtain point-of-sale information from customers c. Help the firm decide which businesses to include in its supply chain management efforts d. Review and establish supply chain strategies
c. Help the firm decide which businesses to include in its supply chain management efforts
A company produces 750 bicycles in one week. The labor used to make the bicycles was 400 hours. The next week, output was 710 bicycles using 360 hours. What was the change in labor productivity? a. Increased by 1.9% b. Decreased by 2.4% c. Increased by 5.2% d. Decreased by 3.3%
c. Increased by 5.2%
________________ creates the flow of goods between supply chain partners, such that costs, service requirements, competitive advantage, and profits can be optimized. a. Procurement b. Operations c. Logistics d. Transportation planning
c. Logistics
Which of the following does not play a significant role in the logistics function? a. Customer Service b. Transportation c. Manufacturing Cells d. Warehousing
c. Manufacturing Cells
When salespeople need to fill end-of-quarter or end-of-year sales quotas they might use ___________, which creates greater use of safety stock causing the bullwhip effect. a. Bullwhip ordering b. Stockpiling c. Order batching d. Order fulfillment
c. Order batching
Which of the following would be considered a way to measure Supply Chain Environmental Performance?
c. Percentage of partners that have created a director of environmental sustainability position in their company
Which of the following modes of transportation should be used to haul large quantities of natural gas and oil from desolate areas to existing processing facilities hundreds of miles away? a. Motor Carriers b. Water Carriers c. Pipeline Carriers d. Rail Carriers
c. Pipeline Carriers
A product positioned strategy: a. Places warehouses midway between the sources of supply and the customers b. Places warehouses close to customers c. Places warehouses close to the sources of supply d. None of these choices are correct.
c. Places warehouses close to the sources of supply
The for-hire logistics expenditures in the U.S. has more than ___________ in the last thirty-one years? a. Tripled b. Doubled c. Quadrupled d. None of these choices are correct.
c. Quadrupled
Reverse logistics refers to the movement, storage, and processing of: a. Finished goods b. Electronic equipments c. Returned goods d. Manufacturing supplies
c. Returned goods
Substance disposal and recycling are part of which supply chain business process: a. Customer service management process b. Customer relationship management process c. Returns management d. Product development and commercialization process
c. Returns management
_______________ can have a positive impact on the environment through recycling, reusing materials and products, or refurbishing used products and reducing the environmental impact of certain modes of transportation used for returns. a. Risk pooling b. Private carriers c. Reverse logistics d. Piggyback services
c. Reverse logistics
Which of the following supply chain performance metrics measures the average percentage of orders that are filled on or before the requested delivery date? a. Supply chain perfect order fulfillment performance b. Total supply chain management costs c. Supply chain delivery performance d. Supply chain cash-to-cash cycle time
c. Supply chain delivery performance
Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility.LOCATIONANNUAL FIXED COSTSUNIT VARIABLE COSTSSite A$25,000$11Site B$20,000$19 a. The breakeven point for these two locations is 600 units per year b. Site B is the desired location if the production rate is 800 units per year c. The breakeven point for these two locations is 625 units per year d. Site A is the desired location if the production rate is 500 units per year
c. The breakeven point for these two locations is 625 units per year
Once a decision on locating a facility is made, it is ________ to move or shut down that facility.
costly
Small firms with no internal logistics expertise and large firms with many sizeable and varied logistics needs can benefit greatly by using: a. TSA service b. TOFC service c. LTL service d. 3PL service
d. 3PL service
Logistics affects the supply chain function by: a. Creating the flow of goods between supply chain partners b. Providing time and place utility c. Determining how deliveries can be made in a timely manner d. All of these choices are correct.
d. All of these choices are correct.
Regional trade agreements assist with which of the following? a. Handle trade disputes b. Provide technical assistance for developing countries c. Monitor national trade policies d. All of these choices are correct.
d. All of these choices are correct.
Supply relationship management personnel routinely communicate with: a. Suppliers for new product development and performance feedback b. Production personnel to obtain feedback on supplier and purchased item performance c. Marketing personnel for customer feedback d. All of these choices are correct.
d. All of these choices are correct.
Which of the following is a problem with a company establishing standards for performance? For example: production rates of 10 units per hour. a. Employees and managers may falsify production records b. Employees are driven to work so fast they may make defects c. Once performance goals are reached, incentives to improve may disappear d. All of these choices are correct.
d. All of these choices are correct.
Which of the following is a vital element in developing a strong supply chain through the practice of process integration? a. Partner collaborations on methods to improve processes within the supply chain b. Partnerships, which value information sharing and partner collaborations c. Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners d. All of these choices are correct.
d. All of these choices are correct.
Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? a. The stability in the location considered b. Environmental issues regulated by domestic laws or international trade agreements c. Access to suppliers from the location considered d. All of these choices are correct.
d. All of these choices are correct.
Which of the following are secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes? a. Private warehouses b. Public zones c. Global warehouses d. Foreign-trade zones
d. Foreign-trade zones
The first step in the weighted-factor rating technique is to: a. Assign a performance score to each factor for each location b. Multiply each factor score by its weight and sum the weighted scores for each location c. Assign a weight to each factor d. Identify all factors considered important to the facility location decision
d. Identify all factors considered important to the facility location decision
According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories? a. Plan b. Return c. Source d. Market
d. Market
In the text, Table 9.1 shows that for-hire logistics expenditures in the U.S., have _____________ in the past thirty-one years. a. Slowly declined b. Decreased for the first 10 years, then increased c. Remained the same d. More than quadrupled
d. More than quadrupled
Companies typically like to design scorecards that fit their business and industry. As a result there are now software applications that can help companies design scorecards that fit their individual needs. These web-based balanced scorecard applications are often referred to as: a. Executive Barometers b. E-Cards c. SCOR Boards d. Performance dashboards
d. Performance dashboards
Which of the following has made external integration more difficult to achieve? a. Identifying key trading partners b. Lack of software applications to coordinate the effort c. Increased number of franchise operators d. Problems with internal integration efforts
d. Problems with internal integration efforts
The coordination and sharing of information and resources to jointly manage a process is referred to as: a. Reverse logistics b. Simplification c. Differentiation d. Process integration
d. Process integration
Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration? a. Lack of Knowledge b. Lack of trust c. Risk Pooling d. Shortage Gaming
d. Shortage Gaming