Supply Chain Management Final
Which of the following is an example of a person that would be considered to provide a Pure Service?
all are correct
Which of the following is TRUE?
b. VMI stands for Vendor Managed Inventory
The goal of an efficient queuing system is that customers never have to wait in line.
false
When businesses cluster in a close proximity to each other the eventual result is decreased competition and innovation.
false
Facility location has a ________ impact on the supply chain.
long-term
If at the end of the year, the cost of revenue = $2,500, total revenue = $12,000 and inventory value = $2,000, the inventory turnover ratio would be:
1.250
The customer arrivals at a bank is 3 customers per hour. The mean inter-arrival time is
20 minutes
A warehouse schedules for a typical service capacity of 77%. Orders are filled on a 1-to-1 basis. Average orders served per period is typically 135. During the Christmas shopping season, the company expects to serve an average of 167 orders in a typical period. How many employees should the warehouse schedule during the Christmas season?"
217
Which chapter in the book did I say was 'Near and dear to my heart?'
Chapter 8
Which of the following is a quality of life factor?
Community safety
A company using a weighted-criteria evaluation system has established these 3 categories and the appropriate weight in parentheses: Quality(0.30), Delivery(0.40), Cost(0.30).
Company C: Quality(70), Delivery(95), Cost(60)
Benefits derived from implementing e-procurement systems include all of the following EXCEPT:
Creates numerous additional job opportunities in the purchasing department
ISO 9000 is a family of international standards for environmental management.
False
Since the deregulation of transportation in the U.S., negotiating transportation prices has become less common among business shippers and logistics providers."
False
The creation of the Balanced Scorecard added the perspective of logistics to the previously singular financial perspective.
False
The development of functional silos within an organization is considered a key component in achieving successful supply chain process integration.
False
The optimal capacity utilization for an organization would be 100%.
False
Third party logistics (3PL) services cannot assist with customs clearances due to regulations.
False
A _____ strategy contends that a service can serve a narrow market better than a broad market.
Focus
"According to the textbook, the initial step in creating an effective performance measurement system is to:"
Identify the firm's strategic objectives
Inaccurate forecasts can result in negative outcomes like:
Imbalances in supply and demand
The Five-Ss refer to:
Industrial housekeeping
"____________________ tends to reduce safety stocks among supply chain members, generating even less variability in supply chain orders?"
Information visibility
Which of the following is an obstacle to successful process integration?
Lack of trust
A firm that utilizes a constant amount of capacity regardless of demand variation is using a
Level demand strategy
Information technology advances have made cyber attacks
More common
If an available-to-promise (ATP) for any period is negative, the deficit must be subtracted from the:
Most recent positive ATP
______ are the most flexible mode of transportation and accounts for over half of the freight tonnage in the USA.
Motor Carriers
When utilizing performance standards, the difference between the standard and the actual performance is called the:"
Performance Variance
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:
Performance dashboards
Paulson Company allows customer to opt-out of receiving email advertising. This is referred to as:
Permission marketing
Choosing to manufacture in India for Indian customers would likely involve which location decision?
Proximity to market
Which of the following is NOT one of the perspectives of the Balanced Scorecard?
Reliability
Substance disposal and recycling are part of which supply chain business process:
Returns management
"According to the text, the 'First Rule of Service' is:"
Satisfaction =perception- expectation
Foreign-trade zones are:
Secure sites within the U.S. where goods and materials can be assembled and exported without being levied domestic duties or excise taxes.
As capacity utilization increases
Services become more congested
Which of the following is a difference between goods and services?
Services cannot be inventoried
Failing to see the big picture and acting only in regard to a single department can be called
Silo mentality
What type of firm would be most interested in using a third-party logistics service?
Small firm with no logistics expertise
"While profit, revenue, and cost-related performance metrics are important, they may give little indication of the underlying causes of financial performance."
True
A service facility has calculated that they can handle the demand rate of 10 customers per hour 70% of the time. This means approximately 30 percent of the time demand will be greater than 10 customers per hour and queues will develop.
True
According to the textbook, a supply chain's end customers are the only true source of income for all supply chain organizations.
True
An office setting could be an example of a departmental layout that maximizes closeness desirability.
True
Customer relationship management (CRM) refers to building and maintaining profitable long-term customer relationships.
True
Customer satisfaction with the service depends not only on the ability of the firm to develop what customers want but also the customers perception of the quality of the service received.
True
Departmental layouts that reduce distances traveled are designed to reduce travel times of customers and servers when moving from one area to another.
True
Establishing simple output standards may actually encourage counterproductive employee policies and actions.
True
High tariffs encourage multinational corporations to set up factories to produce locally.
True
Rewarding suppliers for maintaining high levels of performance is an important step used in maintaining a successful strategic alliance program.
True
Safeguarding customer information is a legal responsibility for any company using CRM software.
True
Service firms differ from manufacturing firms in the labor content in the end product.
True
The primary design objective with lean layouts is to reduce wasted movements of workers, customers, and/or work-in-process.
True
The procedures for public procurement differ from the private sector.
True
The purchase order is NOT a legally binding contract until it is accepted by the supplier.
True
There is a trend in the USA to locate manufacturing facilities in the nonunionized south.
True
Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.
True
Without supply chain trading partners collaborating and exchanging information, the supply chain will always be suboptimal and contain excess inventories, resulting in less-than-maximum supply chain profits.
True
"Which of the following modes of transportation can be characterized as being the most inexpensive and slow, yet efficient for heavy goods over a long distance?"
Water Carriers
The formula for the forecast error, is calculated by using the equation:
Actual demand for period t minus the forecasted demand for period t d.
Which of the following is a vital element in developing a strong supply chain through the practice of process integration?
All are correct
Which of the following would be considered a way to measure Supply Chain Environmental Performance?
All are correct
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)?
All are correct
Benchmarking is the practice of watching the mistakes other businesses do and trying to avoid the same mistakes.
False
If lot sizes are reduced by 50 percent, what impact will this have on average inventory levels?
Decrease by 50%
Independent demand is the:
Demand for a firm's end products.
"In general, performance measurement systems are very similar from company to company."
False
"In modern well-managed supply chains, performance measurement systems become less complicated due to the number of relationships and level of trust."
False
A problem with cloud systems is they provide less visibility for global supply chains.
False
"Pure services offer few, if any, tangible products to customers."
True
"Supply chain strategies should consider the trade-offs between cost, quality, sustainability, and service."
True
"The most basic security system should include procedures and policies for securing offices, manufacturing plants, warehouses, and other physical facilities."
True
"When demand exceeds a supplier s finished goods available, a supplier may allocate a portion of what customers ordered. This rationing often results in shortage gaming by the customers."
True
"While a company s internet presence may be desirable, touching products and talking face-to-face with company representatives remains an integral part of the customer-supplier interface."
True
If a company is effectively focusing on its core competencies, its level of outsourcing is likely to decrease.
False
It is not important for firms to addresses the impact of ethical and sustainable sourcing on other facets of the organization and its trading partners.
False
It is possible to expect 100 percent forecast accuracy most of the time.
False
Lean production is an operating philosophy or mindset that essentially attempts to minimize the impact of system variability and flaws in forecasting through the use of high safety stock inventories.
False
Lean production, JIT, and Six Sigma quality mean the same thing.
False
MRP is the production planning system intended to develop long-range plans (more than a year away) concerning product families manufactured by the organization.
False
Many large firms are moving to in-house vertically integrated structures where they have more control over each business unit.
False
"Organizations that compete on speed of delivery, like FedEx and UPS, utilize which location determination approach?"
Hub and spoke
The benefits of implementing an effective supplier certification program include all of the following EXCEPT:
Increasing supplier base
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT:
Individualized objectives
"Sally, your top sales executive, quits for a job with a competitor. Fortunately, all of her customer contact information, customer notes, and customer sales data have been captured in a:"
Knowledge Management system
All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:
Legislation requiring corporate ethical and sustainable sourcing
In a bill of materials, items at which level are independent demand items?
Level 0
"______ creates the efficient flow of goods between supply chain partners, allowing profits and competitive advantage to be maintained."
Logistics
The primary purpose of the basic economic order quantity (EOQ) model is to:
None of the above
Which one of the following is NOT a type of qualitative forecasting?
Simple moving average
Which of the following statements is TRUE?
Strategic partnerships are seen as one of the foundations of supply chain management
The total cost of ownership for Supplier A is $2,670,000. The total cost of ownership for Supplier B is $1,750,000. The total cost of ownership for Supplier C is $2,990,000. Using Total Cost Analysis, it will be more cost-effective to use
Supplier B
Which of the following can be defined as "The ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations".
Sustainability
Convincing your supplier to cut back on packaging, fuel, or electricity is an example of:
Sustainable sourcing
Which of the following acronyms is NOT paired with its correct "translation?
TLS − Third-party Logistics Services
Which of the following is NOT a reason for supplier recognition programs?
To select the best suppliers
"Although low labor costs in underdeveloped countries appear attractive, other factors such as productivity and employee skill may be more important."
True
"In Europe, rail transportation tends to be more prevalent and reliable than it is in the USA due to the fact that European track, facilities, and equipment are newer and better maintained."
True
"Poor logistics management can bring a supply chain to its knees, regardless of the quality of the product."
True
"The development of cleaner, more fuel-efficient and affordable energy technologies will have a direct impact on the cost of production of goods and delivery of services."
True
According to the textbook, supply chains include raw material suppliers, intermediate component manufacturers, end-product manufacturers, wholesale distributors, retailers and end-product consumers.
True
An effective reverse logistics process can create goodwill and enhance the customer s perception of product quality.
True
CRM software can record and analyze the customer s clickstream so website images and ads can be tailored to the needs and desires of that particular customer.
True
Cost savings is an advantage of using an e-procurement system.
True
Customer lifetime value is calculated as the net present value of an annuity.
True
Cycle counting means to physically count inventory on a periodic basis.
True
Decentralized purchasing is the practice where individual, local purchasing departments throughout a single corporation make their own, individual purchasing decisions to fulfill their individual local needs.
True
Demands by customers for companies to become more ethically and environmentally focused have placed added pressures on firms to improve their performance in supply chain management.
True
Deming, Crosby, and Juran are all prominent quality professionals whose ideas were vital to the development of Six Sigma.
True
ERP systems were designed to coordinate the information requirements for purchasing, planning, scheduling and distribution of an organization operating in a complex multi-unit global environment.
True
Facility location has a long-term impact on the firm s supply chain.
True
Smoother processes, faster cycle times, reduced new product development, and improved time-to-market are possible benefits from the increased visibility that is offered by SRM software.
True
The EU (European Union) is considered a regional trade agreement.
True
The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.
True
The development of relationships with suppliers brings about changes that must be managed for a company to stay focused on their core businesses.
True
The goal of a good forecasting technique is to minimize the deviation between actual demand and the forecast.
True
The inventory turnover ratio shows how efficiently a firm is using its inventory to generate revenue.
True
Which of the following are among the MOST important elements of the lean production philosophy?
Waste reduction and continuous improvement
A negotiation where both sides work together to maximize the joint outcome or to create a joint optimal result is referred to as:
Win-win negotiations
You work at a store that sells dresses. The store sells 35 dresses a week at a price of $75 each. The wholesaler sells the store the dresses for $38 each and it takes 3 weeks to receive an order after it is placed. The store manager also does not like inventory to get below 30 dresses. The district manager calculated the cost to create a purchase order to be $225 and inventory carrying costs are 12%. There are 7 days in a week. Calculate the Reorder Point for this example: ROP = (Demand, per day x Lead Time, in days) + Safety Stock
135
The main benefit(s) from benchmarking sourcing practices is/are:
Allows firms to leapfrog the experience-gaining stage by trying things that have worked well for other companies.
SRM software should be capable of:
All of these
Online retailer EAbooks has decided to send customers who previously bought John Grisham books an email with suggestions for books with similar themes at a special discounted rate. This is known as:
Cross-selling
Which of the following is a factor in choosing a location?
Currency stability
Companies work very hard to reduce the number of customers who do not return. This often referred to as:
Customer Churn
Which of the following is a reason that single sourcing is considered risky/bad?
There could be supplier interruptions due to political instability
The acronym ERP is short for:
Enterprise Resource Planning
Which of the following is NOT one of the Seven Wastes?
Environmental waste
"Due to the access to global markets and corporate networks, the role of location is less important as a source of competitive advantage."
False
"Generally speaking, motor carriers are less expensive than rail carriers to haul goods."
False
"With FOB Origin pricing, a supplier is the legal owner of a product until the product reaches its destination."
False
A Master Production Schedule is an engineering document that shows an inclusive listing of all component parts and subassemblies making up the end item.
False
A low ROA suggests that management is capable of generating large profits with relativiely small investments.
False
As described in the text, a "fair trade product" refers to selling and purchasing products without a cash transaction.
False
Quantitative forecasting methods are based on opinions and intuition, whereas qualitative forecasting methods use mathematical models and relevant historical data to generate forecasts.
False
Radio Frequency Identification (RFID) is beginning to replace bar code inventory tracking, however a weakness is that it requires a direct line of sight for RFID tags to be read.
False
The chase production strategy works well when highly skilled workers are needed, especially in a tight labor market.
False
The four categories of inventory are raw materials, intermediate assemblies, work-in-progress and finished goods.
False
A company that wants to import components without any tariffs and then assemble them locally to produce a finished product that will then be exported. The company should consider a location that is a(n)
Foreign trade zone
Petty cash is being phased out in favor of:
P-card
Some businesses refer to sustainability in terms of supporting the three P's. This stands for:
People, planet, profit
Costs associated with investigating alternative suppliers and investigating alternative delivery options can be classified as:
Pre-transaction costs
Recently-hired hourly employees can choose whether or not to join a union in a:
Right-to-work state
Which of the following are intermodal transportation alternatives?
Roll-on-roll-off-transports
What component of a time series has variations in demand which show peaks and valleys that repeat over a consistent interval such as hours, days, weeks, months, or years?
Seasonal Variations
Spirax Corporation segments customers by demographic information and then markets specifically to those customers who are located in the Los Angeles area. This is an example of:
Target marketing
Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand?
The Level Production Strategy
"Once a location is chosen and the facility is occupied, moving to another location is:"
costly
Which of the following is a disadvantage of carrying too much inventory?
it creates an unnecessary waste of scarce resources.
Reverse logistics can have a positive impact on the environment through activities such as:
recycling
